Centrelink Annual Report 1998-99Introducing CentrelinkOur Strategic FrameworkAs a developing organisation, a key priority for Centrelink has been to drive change by implementing a Strategic Framework that encompasses a vision for the future, sets goals, promotes shared behaviours and enables 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 operations and future development. In 1998–99, Centrelink’s Strategic Framework 1997–2002 was updated and released as Our Business, Our Future—Centrelink Strategic Framework 1998–2003. This document was developed after consultation with client departments and agencies, some stakeholders from the community sector and Centrelink staff, thereby enabling us to build on the achievements of Centrelink’s first year of operation.

The first part of the Framework, Our Business reinforces and develops the framework and concepts on which Centrelink was founded to be first choice of Government; the premier broker and service provider for our customers. It defines our vision, mission and goals, and the underlying philosophies and activities necessary to achieve them.

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 five years in order to achieve the Government’s aims when it established Centrelink as the ‘one stop shops’ 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 maintained 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 realising our vision.

Our VisionMaking a difference to the Australian community through responsive, high quality government services and opportunities, and giving value for money.

Our MissionBuilding a stronger community through:

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

community groups; being an organisation committed to quality; making the best use of available dollars; listening to the community’s ideas for giving better service; and building a quality relationship between customers and Centrelink.

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

Client PartnershipsTo build partnerships with client departments that delivers the required results and provides value for money.

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

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

Cost ReductionTo return an efficiency dividend to Government.

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

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

Our Quality First PolicyLinking the strategic with the operational is Centrelink’s Quality First Policy. The Quality First Policy is simply a structured way of thinking about providing quality customer service.

Key elements include:

ensuring that all our operations are customer driven; strong leadership throughout the organisation; team based working arrangements to optimise the involvement of our people; an integrated customer service improvement planning and review cycle operating at all levels of

Centrelink and linked back to the Strategic Framework; measuring performance using a strategic Balanced Scorecard approach; and focusing on performance improvement and developing a culture that supports and fosters constant

learning and innovation within the organisation at all levels.

Our Shared BehavioursThey are:

listening to customers and the community; solving problems and developing opportunities;

mutual respect for customers and for each other; exploring and putting in place innovative and cost effective ways to provide the right outcome; and behaving with integrity and in an ethical manner.

Our Business OutcomesThe Strategic Framework leads to a series of business outcomes for Centrelink, which are to:

be first choice of Government for the provision of government services; meet Government expectations of performance; achieve outstanding customer service across all service centres; achieve commitment to, and active promotion of, Centrelink and its services by its people; achieve pre-eminent technologies which enable customer access and support decision making and

knowledge management; establish Centrelink as the model for service delivery excellence in Australia; and achieve recognition within Australia by strengthening local communities.

Our Client Business PartnershipsAs of 30 June 1999 Centrelink had business partnership agreements with:

Department of Family and Community Services; Department of Employment, Workplace Relations and Small Business; Department of Education, Training and Youth Affairs; Department of Transport and Regional Services; Department of Health and Aged Care; Department of Agriculture, Fisheries and Forestry; Department of Communications, Information Technology and the Arts; Department of Veterans’ Affairs; Tasmanian State Government; and all State and Territory Housing Authorities.

Note: Following the October 1998 Federal Election, Administrative Arrangements Orders were changed with a number of department names changing and various transfers of functions.

Our BusinessTable 1: Our Business

OUR BASE

Functions Income support, other payments and referral services

OUR DIMENSIONS

Number of sites

421 sites Australia wide*

Number of staff 22 641†

Number of client agencies 9 key agencies

Payments on behalf of client agencies more than $45 billion per annum

Online transactions more than 2.5 billion per annum

OUR CUSTOMERS

Number of customers 6.1 million

Number of individual entitlements 9.2 million

Letters to customers more than 84 million per annum

Home visit reviews 116 000 per annum

Booked office appointments more than 6.5 million per annum

New claims lodged 3.6 million per annum

Newstart and Youth Allowance continuations 19.2 million lodged personally

3 million lodged by mail per annum

Telephone calls answered more than 19.9 million per annum

Internet web site hits 28.9 million per annum

Notes:

*Includes non-customer service delivery sites.

*Includes paid and unpaid permanent and temporary staff.

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

in person (visiting a Customer Service Centre, Specialist Service Centre, or a Centrelink agent); over the phone (including Telstra multi-media pay phones); electronically (on the Internet and using one of Telstra’s multi-media pay phones); and

by mail.

THE YEAR IN REVIEWReport of the Chairman and the Chief Executive OfficerCentrelink's first Annual Report in 1998 recorded the story of the creation of Centrelink which was formed by the Government to provide exceptional service to the community by linking Australian government services and to achieve best practice in service delivery. In that report we told of the initiatives taken to launch and develop the organisation towards those lofty objectives.

The past year has seen the consolidation of those founding initiatives as well as the development of better and more cost effective ways to deliver government services. Centrelink is rapidly transforming into a customer focused, outcome oriented and cost conscious organisation.

To achieve our commitments to Government, client departments, customers, our staff and the community, Centrelink has set itself five goals in the areas of client relationships, customer and community satisfaction, Centrelink people management, cost reduction and innovation. We have also developed and implemented key performance indicators which measure our performance against targets in each of these areas’ our Balanced Scorecard. This year's Annual Report gives an account of our achievements against those five goals.

In summary, the organisation has, on average, achieved results consistently above target with one important exception, Centrelink people management. Our goal to create an environment where people in Centrelink are highly committed to its aspirations and objectives is an area where we have fallen short of our target. This is not unexpected in a new organisation undergoing significant transformational change. However, it is not an acceptable outcome and the Board and Management have put in place a number of initiatives during the past twelve months to address this area of underperformance. These are described in the body of this report.

Performance targets set in Business Partnership Agreements with client agencies were, for the most part exceeded.

An efficiency dividend of $96.1 million has been returned to Government. The $96.1 million incorporates a four per cent reduction in fees paid by client agencies, a standard efficiency dividend of one per cent of total net operating costs and an Information Technology special dividend of $5.9 million.

Our operating result is a significant improvement over our first year of operation with a surplus before extraordinary and abnormal items of $20.4 million.

Financial stewardship is sound and again this year Centrelink's Annual Financial Statements have been signed without qualification by the Auditor-General.

In October 1998 Centrelink announced a major restructuring of its operations with consequent staffing reductions. While most of the restructuring was funded internally, it was necessary to borrow $31 million for this purpose. It is intended that this loan will be repaid over the next two years.

Overall service standards have been improved and the staffing reduction targets have been met against a background of industrial harmony ‘a harmony that was fostered through the successful signing of the second Centrelink staff development agreement.

However, the year has not been without its difficulties. For a period at the beginning of the year our service levels dipped below where we had targeted them to be.

The introduction of the Youth Allowance on 1 July 1998 and the implementation of the Job Network in the latter part of 1997–98, together with the bedding-down of the Newstart Common Platform, a major change to computing operations, put considerable pressures on Centrelink particularly its Call Centre

and Customer Service Centre networks. This was a difficult time for customers and staff alike and from it, Centrelink learned some valuable lessons.

We recognised quickly that we needed to put in place strategies to improve the range and quality of services we provide to customers and client agencies through the Call Centre network as well as in the Customer Service Centres.

The changes made to Call Centre operations are now producing real gains. The number of busy signals callers would receive before they were connected to an operator has dropped markedly. Waiting times and speed of answer have also improved significantly and we are now operating consistently better than target.

With the strong support and active participation of our people we embarked on a new approach to customer service providing customers wherever possible with access to a single point of contact each time they do business with a Centrelink office. As well as the obvious efficiencies that this can produce, customers do not have to repeat their stories to several people and this style of service builds a more personalised relationship between our people and their customers.

We know our customers do not like queues and we have become more competent at managing queues with an emphasis on service by appointment and a focus on personalised ‘one to one’ contact for customer service.

The productivity gains we made in the Call Centres over the past year and the improvements we achieved in service to customers would not have been possible without a concerted effort to reduce backlogs in our Customer Service Centres. We want to acknowledge the work of Centrelink managers throughout the network in making certain their staff pared back outstanding work so that we were able to approach our planned improvements with a clean slate.

The foregoing efficiencies have had a direct impact on the cost of delivering services. In addition, not only do they demonstrate Centrelink’s flexibility and innovation, they also show we are well placed to deliver a complex range of services that will change frequently in accordance with Government policy initiatives.

The Next 12 Months and BeyondWhen Centrelink was established we built in the philosophy of transition, that is, our responsibility was to help people move through difficult times and, where possible, to reduce their dependency on government based programs. This has been particularly important in our approach to jobseekers as we began a proactive approach towards encouraging people to seek work rather than just to get a payment.

It has also been important outside the urban areas. In rural and regional Australia, where we have already been able to increase our presence with the addition of extra agents and new offices, we will be extending our operations to bring a wider coverage and innovation in our services to people living in these areas. The Internet will play a key part in this.

In this year of consolidation we have also focused on planning for the next phase of Centrelink's development the new service delivery model and its â life events' approach to customer needs.

One of the major benefits the Government saw in its creation of Centrelink was the development of a ‘one stop shop' so that the people of Australia could access a large range of services from one location. Through the ‘life events' approach, Centrelink will be able to tailor a range of government services to meet the particular needs of customers at a point of transition in their lives for example, leaving school, having a child, becoming unemployed or retiring. This approach contrasts with the traditional model that expects customers themselves to know about and apply for a range of assistance measures. It means that Centrelink, rather than the customer, will sort out the complexities of government assistance programs.

To introduce this new model successfully, we are making major advances in information technology aspects of service delivery and this will require new and special skills to be developed by Centrelink's network of Customer Service Officers, particularly their ability to use the technology.

Improving Centrelink's people management, last year our least satisfying Balanced Scorecard performance indicator, 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 1999–2000.

ConclusionWe want to thank members of the Board and our people for their contributions to Centrelink during 1998–99. In particular, we want to acknowledge the contribution of Mr Steve Sedgwick, Secretary, Department of Education, Training and Youth Affairs, to the organisation from its very beginning until he retired from the Board in March 1999.

Most of all, we want to particularly acknowledge the hard work of our people as they have coped with a rapidly changing organisation and an array of new Government policy initiatives over the past twelve 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 effectiveness, which will more than meet the Government’s original expectations of the organisation.

Robin Marrett

Chairman

Sue Vardon

Chief Executive Officer

Table 2: Centrelink’s Performance at a Glance

OUR CLIENT PARTNERSHIPS

OUR CUSTOMERS AND COMMUNITY

OUR PEOPLE OUR COST EFFECTIVE ORGANISATION

OUR INNOVATIVE ORGANISATION

Our Key Result Areas and Goals

To build partnerships with client To increase customer and departments that deliver the community involvement and required results and provide value for money.

To increase customer and community involvement and satisfaction with services.

To create an environment where

our people will give value to

customers, client departments and

the community through their skills

and commitment to service.

To return an efficiency dividend

to Government.

To provide innovative and

personalised solutions consistent

with Government policy.

Our Results*

Note: *Our People results are based on a survey of 5000 staff undertaken in August 1998. All other results are a combination of performance measurements taken throughout the year.

Figure -2 Figure-3 Figure-4 Figure-5 Figure-6

Our Achievements

Retained 100% of existing business

Exceeded targets in timeliness

Introduced a new service delivery model embodying ‘life events’ and ‘one to

• Instituted a National

Awards Program as well as

a new classificatio

• Returned the prescribed efficiency

dividends of $96.1m

• Achieved

• Ranked fourth out of Australia’s

100 leading information

technology users

Performance ReportThe Balanced ScorecardAs foreshadowed in the 1997–98 Annual Report, the key instrument for measuring and reporting Centrelink performance from 1998–99 is the Balanced Scorecard. Consequently, this report is primarily presented in terms of performance against the Balanced Scorecard.

What is the Balanced Scorecard?The Balanced Scorecard is an approach to performance management which was introduced in Centrelink from the end of1997. The Balanced Scorecard:

focuses performance on our strategic goals by linking these goals to explicit measures;

provides a performance improvement mechanism by highlighting areas of strengths and weaknesses; and

communicates our performance across the whole organisation to support future planning.

The 1998–99 Centrelink Balanced ScorecardThe 1998–99 Balanced Scorecard measures performance against five Key Result Areas that reflect our first five strategic goals. The 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.

The Key Result Areas are:

Client Partnerships; Customer and Community; Centrelink People; Cost Reduction; and Innovation.

Performance measures underlie each Key Result Area, with each measure having a performance target that reflects service expectations of our client departments or an internally determined performance benchmark. Actual performance for each measure is expressed in percentage terms as follows:

a result of 100 per cent reflects performance equalling our target;

a result above 100 per cent reflects performance exceeding target; and

a result less than 100 per cent reflects lower than expected performance.

The averages of the results for the individual performance measures determine the overall result for each Key Result Area.

1998–99 Balanced Scorecard ResultsThe Scorecard was reviewed monthly during 1998–99 by the Board of Management, allowing performance against the selected measures to be monitored as the year progressed. The following graph shows the monthly performance against targets for each Key Result Area.

On average Centrelink has equalled or exceeded targets for the year in three of the five Key Result Areas. Customer and Community, Cost Reduction and Innovation exceeded targets; Client Partnerships showed steady improvement towards achieving targets and Centrelink People remained static and is an area targeted for improvement.

The measures included in the 1998–99 Scorecard will be reviewed in 1990–2000 and it is expected that a greater range of performance indicators will be included.

The following chapters discuss our achievements during 1998–99 for each Key Result Area of the Balanced Scorecard at the national level. For details on how the national level Balanced Scorecard results are measured see Appendix xiv.

Our Client PartnershipsWorking with client departments, our goal is to build partnerships that deliver the required results and provide value for money for our clients. The Balanced Scorecard measures our performance towards this goal through the Client Partnerships Key Result Area.

In 1998–99 Centrelink’s business priorities were to:

consolidate its business relationships with existing clients; and to selectively pursue new business to strengthen the Centrelink service offer, brand and image in the

community.

OverviewCentrelink is committed to building and maintaining strong and effective partnerships with its clients to ensure delivery of client and government outcomes through linking Australian Government services and providing best practice service delivery.

Centrelink’s business relationships aim to:

recognise and respond to client departments’ needs for outcome accountability without compromising Centrelink’s need for flexibility in delivering effective and efficient services;

ensure business processes, agreed with clients, meet separate and joint needs; and establish collaborative processes to develop partnership arrangements that deliver agreed outcomes

to the Australian community.

Centrelink’s Business Development Unit and Customer Segment Teams have worked together to develop service level agreements, monitor service delivery and maintain effective working relationships with client departments. Customer Segment Teams are responsible for, amongst other things, ensuring that client departments’ policies are properly implemented and that Centrelink’s performance is regularly reviewed with clients to ensure strategic outcomes and operational delivery requirements are being met. The Customer Segment Teams also bring together all issues relevant to the segment of customers, to seek efficiencies and to deliver integrated services and outcomes.

Key StrategiesCentrelink business strategies and activities are designed to:

build client department loyalty by delivering the results we have contracted to deliver; improve information flow to client departments to assist their policy development and management; increase competitiveness by delivering high quality services at reduced cost per customer per

service; increase and diversify business consistent with the mission; identify and protect Centrelink’s intellectual property; increase client department confidence in the integrity of Centrelink service delivery; and develop products and services that deliver increased value for money for clients.

Balanced ScorecardOverall we have achieved the Client Partnerships’ targets outlined in the Balanced Scorecard.

The Scorecard reports a range of activities including:

Repeat Business and Long Term Agreements (discussed in the Consolidating Relationships section); Meeting client expectations (discussed in the Overall Performance and Compliance sections); New Business (discussed in the New Business section).

Balanced Scorecard service delivery targets reflect Centrelink business and Client Business Partnership Agreement targets. These targets and priorities are reflected in activity plans developed and implemented at all operational levels in Centrelink.

Consolidating RelationshipsRe-signing of Business AgreementsCentrelink retained 100 per cent of its existing business in 1998–99. The following contracts were renewed:

the Department of Family and Community Services (formerly the Department of Social Security); the Department of Education, Training and Youth Affairs (formerly part of the Department of

Employment, Education, Training and Youth Affairs); the Department of Employment, Workplace Relations and Small Business (formerly part of the

Department of Employment, Education, Training and Youth Affairs); and the Department of Agriculture, Fisheries and Forestry (formerly the Department of Primary Industries

and Energy).

The following Agreements were formalised:

the Department of Health and Aged Care (formerly the Department of Health and Family Services); and

the Department of Family and Community Services (formerly with the Child Support Agency).

The Service Level Arrangement between Centrelink and the Department of Health and Aged Care provides for a joint mid-term review to be completed by mid-1999–2000.

The Department of Employment, Workplace Relations and Small Business (formerly part of the Department of Employment, Education, Training and Youth Affairs) continues to operate under the previous department’s Service Level Arrangement Number Three, although it is close to signing a new agreement with Centrelink.

The Agreement with the Department of Family and Community Services was for three years (1998–2001).

Overall PerformanceOverall Centrelink met its client performance targets in 1998–99.

Centrelink’s clients use a number of different measures to assess Centrelink’s performance. Timeliness and accuracy of service delivery are two key performance measures for Centrelink and its clients.

TimelinessCentrelink has delivered most payments at better than the timeliness standards agreed in its Business Partnership Agreements.

The processing of new claims against timeliness standards improved during the year. Overall, the target for 1998–99 was for 85 per cent of all claims to be finalised within the respective timeliness standard for each payment. Actual standards delivered vary depending on the nature and complexity of the payment type. More detailed performance information is provided in individual team reports from page 26.

Accuracy of Service DeliveryCentrelink has exceeded the 95 per cent accuracy target agreed with clients for 1998–99. More detailed performance information is also provided in individual team reports from page 26.

The following graph illustrates timeliness and accuracy performance against the Balanced Scorecard for the year.

Performance MeasuresSome long established performance measures agreed with clients have become less relevant as client business arrangements have developed. The Procedure and Accuracy Checking measure, for example, used to assess accuracy in delivery of payments for the Department of Family and Community Services provides a partial measure of process performance and accuracy but not a complete picture of Centrelink’s activities. In addition, changes to client departments’ priorities can result in agreed measures becoming less relevant as performance indicators.

A review of performance indicators will be undertaken in 1999–2000 to ensure agreed measures are appropriate to on-going business management and reporting requirements.

Strategic ReviewsEach quarter the Chief Executive Officer and other senior Centrelink Executives meet with Client Departments’ Secretaries and Senior Executives to discuss broad business and relationship issues. The discussions review critical business issues, evaluate progress in achieving broader program objectives and examine future options and issues.

Performance ReviewsCentrelink’s performance is formally reported to its clients and is reviewed at joint meetings between Senior Executives. These meetings are held monthly or bi-monthly and in addition to reviewing performance, examine critical and emerging issues.

Centrelink teams also formally report and discuss more detailed program and delivery performance information and analysis with their client counterparts, usually each month.

Improved Information FlowMajor efforts have been made in 1998–99 to increase the range and analysis of customer and performance information provided to Centrelink clients to assist their policy development and management, and purchaser roles and responsibilities. Information sought by clients has increased significantly in amount, range and details client policy and procurement roles have been defined. Information priority management arrangements have been implemented with clients to meet these increased requirements.

Increasingly data is being provided to clients in electronic formats such as Power Play cubes and Super cross datasets to enable more detailed and flexible review and analysis.

Provision of improved information will again be a priority in 1999–2000.

Improving PerformanceA key Government objective in establishing Centrelink was to deliver services more efficiently and effectively to the Australian community. In 1998–99 Centrelink and the Department of Employment, Workplace Relations and Small Business worked together to sharpen program definition and delivery. Detailed reviews of existing processes were undertaken to confirm the service policy and delivery

requirements. Where appropriate policies and delivery structures were restructured to ensure they delivered required outcomes.

The joint review process proved very valuable in confirming policy requirements and in enabling best practice service delivery design to be agreed and implemented.

Centrelink will conduct joint process reviews of services with the Department of Family and Community Services and the Department of Employment, Training and Youth Affairs in 1999–2000.

Improved Processing AccuracyInformation Documents

Centrelink has expanded the online reference suite by adding retirement documentation. The documentation targeted at Customer Service Officers, provides cross-referenced legislative and reference materials.

In addition, the Retirement Customer Segment has produced a comprehensive suite of quality training material on the technical issues associated with retirement.

These two measures will assist staff in increasing the accuracy of decision-making and the quality of information provided to customers.

Segment Team Performance

A summary of major initiatives and delivery performance is provided on a team by team basis below.

Disability and CarersMajor initiatives:

Implemented the Child Disability Assessment Tool and extended the Carer Payment entitlements to parents of children who have a profound disability.

We have implemented a number of initiatives to improve delivery of Disability Support Pension. These include re-negotiation of supplier agreements, procedural reviews and improved monitoring arrangements. These strategies have resulted in the achievement of the Disability Support Pension timeliness target during the last part of the financial year.

Table 3: Disability and Carers Performance Summary

Payment Type TIMELINESS ACCURACY

Target

%

Performance

%

Target

%

Performance

%

Disability Support Pension 70* 68 95 98

Sickness Allowance 85† 80 95 98

Child Disability Allowance 80# 88 95 97

Child Disability Allowance 70* 91 95 97

Notes:*Target—payment within 49 days of claim lodgement.†Target—payment within 21 days of claim lodgement.#Target—payment within 56 days of claim lodgement.

Table 4: Youth and Students Performance Summary

Payment Type TIMELINESS ACCURACY

Target

%

Performance

%

Target

%

Performance

%

Youth Allowance

– New Claims

– Continuations

70*

95†

79

100

95

95

97

99

Austudy Payment 70# 68 95 98

ABSTUDY 70 66 95 99

Assistance for Isolated Children 70 81 95 98

Notes:

*Target—payment within 21 days of claim lodgement.†Target—payment within 2 days of claim lodgement.#Target—payment within 14 days of claim lodgement.

Table 5: Families and Children Performance Summary

Payment Type TIMELINESS ACCURACY

Target

%

Performance

%

Target

%

Performance

%

Family Allowance 85* 92 95 96

Family Tax Payment 85* 92 95 99

Parenting Payment (Single) 90† 94 95 98

Parenting Payment (Partnered) 80* 87 95 97

Notes:

*Target—payment within 28 days of claim lodgement.†Target—payment within 21 days of claim lodgement.

Table 6: Retirement Performance Summary

Payment Type TIMELINESS ACCURACY

Target

%

Performance

%

Target

%

Performance

%

Age Pension 80* 84 95 97

Note: *Target—payment within 28 days of claim lodgement.

We have initiated an examination of Sickness Allowance timeliness performance that will include reviews of procedures, identification of reasons for delay and enhanced monitoring. This process is expected to improve performance. For performance summary see Table 3.

Youth and StudentsMajor Initiatives:

Implemented Youth Allowance and Austudy Payment in July 1998.

We have met our overall performance targets. We have put in place more flexible resource allocation arrangements to manage the highly cyclical processing workload. For performance summary see Table 4.

Families and ChildrenMajor Initiatives:

Implemented Childcare Assistance payments on 1 July 1998.

For performance summary see Table 5.

RetirementMajor Initiatives:

Implemented Pension Bonus Scheme and changes to the means test treatment of income streams.

For performance summary see Table 6.

Employment ServicesMajor Initiatives:

implemented and consolidated Centrelink’s role in the Job Network; tightened the Activity Test administration; and implemented the Enhanced Mutual Obligation.

The number of Work for the Dole referrals significantly exceeded actual placements. This is because many projects were approved and subsequently had contract variations to reduce the target for placements where:

there was an insufficient customer base; transport was not provided for participants; and/or customers lived more than 90 minutes from the project locations with no access to public transport.

Placement numbers were also affected by the policy which prohibited Centrelink from referring customers where there was less than 13 weeks until a project’s completion.

Table 7: Employment Services Performance Summary

Payment Type TIMELINESS ACCURACY

Target

%

Performance

%

Target

%

Performance

%

Newstart Allowance

– New Claims

– Continuations

80*

95†

84

100

95

Na

97

Na

Mature Age Allowance 80* 95 95 98

Widow Allowance

– New Claims

– Continuations

75*

95†

87

100

95

95

95

98

Payment Type TIMELINESS ACCURACY

Target

%

Performance

%

Target

%

Performance

%

Partner Allowance

– New Claims

– Continuations

80#

95†

94

100

95

95

96

98

Notes:

*Target—payment within 16 days of claim lodgement.†Target—payment within 2 days of claim lodgement.#Target—payment within 49 days of claim lodgement.

Table 8: Employment Services Referrals and Placements Performance Summary

SERVICE TARGET PERFORMANCE

% %

Intensive Assistance—Point in

Time Capacity

85–100 94.8 (June 1999)

No. of Jobseekers No. of Jobseekers

Work for the Dole—placements 25 000 21 967

Literacy and Numeracy—referrals

8 000 8 400

Table 9: Multicultural Services Performance Summary

SERVICE TARGET PERFORMANCE]

% %

Provision of interpreters

and translators

85* 99

A problem was encountered with the printing of the Application for Continuation Payment forms immediately after the systems release on 21 December 1998. Identification and rectification of the problem took longer than it should have, which delayed printing and despatch of over 80 000 forms nationally. With reduced postal services over the Christmas/New Year period, many forms did not reach jobseekers in time for return to Centrelink by the due date. This resulted in a large increase in customer contact at Customer Service Centres and through Centrelink Call in the week commencing3 January 1999.

After a thorough investigation of this problem, quality assurance processes have been put in place to avoid this type of problem in the future.

For performance summary see Tables 7 and 8.

Multicultural ServicesMajor Initiatives:

implemented new contracts for on call and sessional interpreters; and launched Centrelink’s vision for Delivering Multicultural Services 1999–2003.

For more details on these initiatives refer to Chapter 5, Our Customers and Community.

For performance summary see Table 9.

Rural and HousingMajor Initiatives:

developed the National Rural and Regional Servicing Strategy; established the Segment Team; and introduced Centrepay.

For more details on these initiatives refer to Chapter 5, Our Customers and Community.

New Business Performance ActivityCentrelink selectively pursued new business opportunities in 1998–99. A priority was to seek to increase the community’s access to Commonwealth services available through Centrelink.

Veterans’ Information ServiceCentrelink increased the range of services it delivers on behalf of the Department of Veterans’ Affairs in New South Wales, Queensland and South Australia.

Centrelink successfully tendered to deliver the Veterans’ Information Service initially on a trial basis at three sites in New South Wales, one in South Australia and one in Queensland. This has since resulted in three additional sites being added to Centrelink’s New South Wales delivery and the addition of community support activities.

A separate agreement has been reached with the Department of Veterans’ Affairs for the out posting of a Department of Veterans ‘Affairs Officer in the Cairns Customer Service Centre.

Government Information CentreUnder the Government’s Investing in Growth strategy, Centrelink is working with the Office for Government Online to pilot a Government Information Centre initiative. The pilot facility was opened in October1998 in Centrelink’s Launceston Call Centre to assist Tasmanian residents with information about Commonwealth and Tasmanian State Government activities. The facility uses a database of information supplied by government agencies to refer phone, facsimile and email enquiries to relevant authorities for further assistance.

Income Assessments for Aged Care ResidentsImplementation of this complex initiative has enabled Centrelink to strengthen its relationship with the Department of Health and Aged Care and broaden the range of services and support it provides the aged care community.

Financial Information ServiceCentrelink has strengthened its Financial Information Service to assist early planning for retirement. We have increased the focus to provide information to assist earlier planning by younger people.

An increased proportion of information seminar participants are changing their investment or financial plans (an increase from 18 per cent in 1997–98 to 31 per cent in 1998–99). Seminars continue to satisfy customers’ needs (a satisfaction rating of92 per cent in 1998–99).

To further improve community access to the Financial Information Service seminars, the National Seminar Booking Service was setup in January 1999. Using a national phone number, it it has made over 11 000 bookings for interested people around Australia.

Commonwealth Seniors Health CardCentrelink has simplified and extended the income test for the Commonwealth Seniors Health Card to encourage self-funded retirees to take up the card. It was estimated that an additional 220 000 older Australians would take advantage of the simpler and more generous income test and apply for the Commonwealth Seniors Health Card. Between 1 January 1999 and 30 June1999 Centrelink issued around 153 000cards to self-funded retirees who took advantage of this new income test. Since the announcement of the initiative in the1998–1999 Federal Budget promotional activities have been ongoing. Centrelink will continue to promote the Commonwealth Seniors Health Card during 1999–2000.

We issued a more durable slim plastic card to eligible Commonwealth Seniors Health Card holders in May 1999. The new style card has overcome the previous time consuming production process and enables applicants to receive their card within 14 days of providing all required information to Centrelink.

Childcare AssistanceFrom July 1998, Centrelink took over responsibility for payment of Childcare Assistance to child care service providers, and reconcile these payments against actual attendance by the children.

Child Support AgencyFollowing a successful pilot in Gosford collocation of Child Support Agency services with Centrelink offices will occur in other selected sites to increase community access to services.

Compliance BenchmarkClient PartnershipsThe Compliance Benchmark is a key performance indicator in the Key Result Area of Client Partnerships, under the 1998–99 Balanced Scorecard. It is composed of four sub-elements weighted to achieve an overall result.

The four components are:

savings and debts raised from compliance review activity; monies recovered by withholdings and cash recoveries; prosecution referrals to the Director of Public Prosecutions; and child care service reviews.

Compliance Review Activity Compliance review activity focuses on cases considered at high risk of incorrect payments 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, public information and risk-based algorithm reviews. The benchmark for social security compliance review activity totalled $635.9 million in savings and debts raised. Against this, compliance reviews achieved $725.2 million in combined savings and debts raised, 14 per cent above the benchmark.

Debt RecoveryThe 1998–99 debt recovery benchmarks required $545 million to be recovered in debts for both social security and student assistance payments. For the1998–99 financial year, recoveries totalled $555.6 million for social security and student assistance debts, 1.9 per cent above the benchmark.

Prosecution ReferralsThe benchmark for prosecutions was set at 4000 referrals to the Director of Public Prosecutions of fraudulent misrepresentation of either social security or student assistance payments. This is comprised of 3950 cases for social security payments and a further 50 student assistance payment cases. Against this, a total of 3828 cases were referred to the Director of Public Prosecutions for consideration of prosecution action during1998–99, 95.7 per cent of the target. Of these, 3779 were social security cases, with an additional 49 student assistance cases referred. The target was not quite achieved, in part, due to an increase in evidentiary requirements for court proceedings.

Child Care Service ReviewsCentrelink agreed to conduct 800 reviews nationally. This benchmark was included in the 1998–99 Business Partnership Agreement with the former department of Health and Family Services. In total, 886 reviews were conducted, 10.8 per cent above the benchmark.

Overall Compliance AchievementOverall achievement against the Compliance Benchmark, as shown in Figure 10, is calculated using the following weighted scale as shown in Table 10.

Appendix ix contains further information on compliance activity.

Table 10: Compliance Summary

ACTIVITY WEIGHTING ACHIVEMENT

% %

Compliance review 85 92.2

4000 Prosecution referrals 10 10.6

800 Child Care Service reviews 5 5.5

TOTAL 100 107.3

Assurance of Support SectionSome migrants to Australia are required to have an Assurance of Support as a condition of being granted permanent residence in Australia. Centrelink’s Assurance of Support Section was relocated to Sydney in January 1999. This section has since identified and raised $1.5 million in debts owing to the Commonwealth, with 70 per cent of these debts already having some form of recovery arrangement in place.

Other AchievementsTax ReformThe Tax Reform Implementation Team was established in November 1998 to manage a number of initiatives that Centrelink has responsibility for delivering as part of the Government’s overall Tax Reform Package.

These are:

family Tax Benefit, Parts A and Band Child Care Benefit; compensation measures; Aged Persons Savings Bonus and Self-Funded Retirees Supplementary Bonus; and establishment of the Family Assistance office.

The Team’s role is to work closely with the Retirement Customer Segment Team(regarding compensation and bonus measures), with the Families and Children Customer Segment Team (regarding family entitlements and the Family Assistance office) and with other teams building information and decision support systems. It is also responsible for forging strong working relationships with the Department of Family and Community Services, the Australian Taxation Office and the Health Insurance Commission to ensure there is a mutual understanding of policy initiatives and commitment to service delivery.

More detail involving community and business partners in Value Creation Workshops is provided in Chapter 5, Our Customer and Community, Families and Children, page 53.

Our Customer and CommunityCentrelink’s business is service delivery, with over 300 million opportunities annually for our customers to form perceptions about our service. Given the extensive interaction with people, a strong customer and community focus is essential for success as Centrelink positions itself for operating in a competitive environment. Centrelink is embedding and integrating this focus into its culture—the way things are done in Centrelink.

Key StrategiesOur key strategies are to:

measure customer and community satisfaction; ask customers and the community to identify their needs and expectations; design products and services to meet customer, community and client department needs and

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

rollout; and create a customer driven culture.

Major areas of focus within these strategies in 1998–99 were:

delivering a more personalised service; improving access to services and information; and playing an active role in the community.

Measuring Customer and Community SatisfactionCustomer SatisfactionCentrelink regularly monitors customer satisfaction with its service. Customer satisfaction remained relatively stable during 1998–99. This is considered to be a very good result given the enormous changes that occurred in 1998–99 both to policy and computer systems, for example, the introduction of Youth Allowance on 1 July 1998.

Centrelink’s Customer Charter acts as an important benchmark against which Centrelink measures how it is performing. Customer satisfaction with Centrelink’s performance against the Customer Charter remains stable.

A summary of Centrelink’s performance against the Charter commitments can be found in Appendix xiii and the status of Centrelink’s Charter can be found in Appendix xi. The results highlight the opportunity that exists to make further improvements in the areas of understanding customers’ individual needs, speed and efficiency, accuracy and consistency of information and fixing mistakes. A major initiative which began early in1999, involving the delivery of a more personalised service to customers, is expected to address the shortfalls in customer satisfaction.

Customer satisfaction with the overall quality of Centrelink’s services (including the quality of its people, services and information) remains stable over the year at 65 per cent. Customers’ ratings of Centrelink’s staff remained high at76 per cent. Overall customer satisfaction with the level of service provided by Customer Service Centres, Call Centres and International Services also remained stable throughout the year with Call Centres providing the greatest opportunity for improvement. Centrelink telephone service improved during the latter part of 1998–99 as a number of demand and expectation management strategies began to take effect.

FavourabilityCentrelink experienced a marked turnaround in its favourability (overall impression of organisation) rating among its customers and the broader community. The favourability rating increased by nine per cent and eight per cent, respectively from November/December 1998 to May/June 1999. Centrelink experienced the largest increase of all the organisations benchmarked for favourability purposes.

Centrelink’s Value to the CommunityIn May 1999, Centrelink’s customers sent a strong signal that Centrelink’s role in their community is valued. A significant proportion of customers, 82 per cent, believe that ‘Centrelink helps customers during times of change in their lives’ and nearly three quarters (71 per cent) believe that ‘Centrelink helps find solutions for its customers’. The majority of customers, again 82 per cent, also recognise Centrelink’s role as a ‘one stop shop’, acknowledging that ‘Centrelink offers a wide range of government services in the one place’.

Customers stressed the value of being able to access Centreline in-person with96 per cent agreeing that ‘It is important to have a Centrelink office physically in the local community’.

While almost 60 per cent of customers felt that ‘Centrelink listens to the community’s ideas for giving better service’ there is scope for Centrelink to improve ‘being responsive to events in the local community’, with just over half of the customers surveyed believing that this is happening.

Customer FeedbackCentrelink’s Customer Charter encourages customers to provide feedback if they are happy or unhappy with our service. Feedback is used not only to recover from problems as they occur but to develop local and national strategies aimed at improving services. A detailed report on customer feedback within Centrelink and the status of Centrelink’s Customer Charter is in Appendix xi.

AppealsCentrelink continues to complete customer appeals against decisions within accepted time frames. However, Centrelink is still intent upon improving the quality of decision making and thereby reducing the need for customer appeals.

In 1998–99 Centrelink received 47 375 requests for internal review and a combined total of 11 043 appeals to the Social Security Appeals Tribunal and the Administrative Appeals Tribunal were made in relation to Centrelink decisions. Seventy-three per cent of internal review decisions made during this period were affirmed.

In the context of making 36 million customers service decisions annually, our level of reviews requested is small. However, as these decisions can have a profound effect on the lives of our customers, Centrelink is committed to exploring ways to reduce the level of appeals even further. One way this is being achieved is by feeding back the outcomes of each review to the person who made the original decision to investigate whether or not the review resulted from how the service was delivered as distinct from the actual decision.

Call Wait TimeWhile Centrelink Call generally achieved its contracted performance standard of an average speed of answer of 210 seconds, consistently high demand presented a very real challenge to maintaining quality customer service.

The situation was particularly acute on specific occasions during 1998–99, such as the introduction of new Youth Allowance arrangements in July 1998, the Christmas/New Year period, and major review periods. However, there was a substantial improvement in performance in May and June 1999 as key demand and expectation management strategies began to take effect.

Delivering a More Personalised ServiceAn example of Centrelink listening to its customers is happening in Area North Australia where the disability teams have established partnerships with remote community doctors to increase the timeliness in processing claims made by our customers with disabilities. This initiative is saving time, effort and the cost of referral and assessment.

‘One to One’A key initiative in response to what our customers have been telling us, and the first key step towards implementing Centrelink’s ‘life events’ service delivery model, is Centrelink’s ‘one to one’ service. The initiative involves every customer having one main Customer Service Officer who manages all the business that a customer cannot do over the phone. Centrelink began implementing the new style of service in1999 following a successful trial in 1998 and further trials in early 1999. ‘One to one’ service builds on initiatives introduced in 1997–98 to provide a more personalised service by:

ensuring that the customer knew who their appointment would be with at the time the appointment was made; and

ensuring staff phoned the customer before the appointment to build rapport with the customer and ensure that the customer knew what to bring along to their appointment.

Under the ‘one to one’ approach:

Customer Service Officers are each allocated a pool of existing customers; new customers are progressively added to each Customer Service Officer’s pool; Customer Service Officers accept all on-going business relating to their pool of customers; and Call Centre staff continue to handle day-to-day customer service enquiries.

For our customers the ‘one to one’ service means:

receiving personalised, professional help; obtaining an assessment of their situation that results in their needs being met in a holistic way; only having to tell their story once; and obtaining consistent advice and having greater confidence in the decisions made about their

situation.

The shift in focus away from being purely on the ‘process’ to the ‘solution’ being developed with the customer is having a dramatic effect on the workplace culture within Centrelink. Our Customer Service Officers are quickly embracing ‘one to one’ service. For them it means:

increased personal control, responsibility and accountability over every day work; a more professional relationship with customers; greater work satisfaction; learning and development needs being more easily identified; and better opportunities to recognise and reward individual effort.

‘One to one’ service is placing both ownership and accountability for each customer’s business with their Customer Service Officer. A previous tendency for some Customer Service Officers to rely on checks and balances elsewhere for completeness and accuracy has been removed. The direct accountability to the customers for the ‘one to one’ service officer provides a strong incentive for staff to be thorough, accurate and to give attention to explaining their decision. This is having a positive effect on the overall quality of decisions and the resolution of problems.

Decision making is also being strengthened through structured feedback of the findings of both internal and external reviews of decisions initiated by customers. This feedback not only assists the development of staff in their role as main contact officers but also helps identify some of the impediments to high quality customer service.

Centrelink’s more personalised service is expected to be fully implemented by the end of December 1999.

Appointment SystemCentrelink’s use of appointments to complement its ‘one to one’ service continues to operate well and receive high approval ratings from customers. From February until the end of June 1999, appointments continued to be consistently available within 10 working days of the customer’s request. During our most recent survey, 83 per cent of customers rated Centrelink’s appointment system as either good or very good. This is seven per cent higher than for the same period in 1998.

Improved Access to Services and InformationIn 1998–99, Centrelink set about improving customer access to services by:

expanding the range of services available; opening more Customer Service Centres, progressing Centrelink’s open plan office layout program

and improving queue management; implementing a Rural and Remote Servicing Strategy including an expansion of the number of

Centrelink agents based in rural parts of Australia; improving the performance of Centrelink’s telephone service and upgrading a number of specialised

services for customer groups with particular needs; and improving letters, forms and information products.

Expanding the Range of Services AvailableThe range of services available to Centrelink customers was significantly expanded in 1998–99 through a range of initiatives including:

greater access for jobseekers to self help facilities; the delivery of Department of Veterans ‘Affairs service from Centrelink Customer Service Centres in

New South Wales and South Australia; and the development and implementation of Centre pay, a facility that enables Centrelink customers to

have voluntary deductions taken from their social security payments.

Greater Access to Self Help Facilities for JobseekersBy the end of July 1998, jobseekers had access to ‘Job Network Access’ workstations in most Customer Service Centres. The ergonomically designed workstations are coupled with computer touch screens to provide ready access to online information on job vacancies anywhere in Australia. Customers are free to use the private workstations which are equipped with daily newspapers, telephones for contacting employers and Job Network organisations, personal computers with standard resume preparation software, printers, photocopiers and facsimile machines.

Delivery of Veterans’ Affairs ServiceIn 1998–99 Centrelink trialled and evaluated the delivery of the Department of Veterans’ Affairs service from Customer Service Centres in two states. The evaluations have been particularly positive. The New South Wales evaluation stated in part ‘the trial has exceeded expectations in terms of the number of veterans using the service, acceptance by the ex-Service organisation sand the satisfaction levels reported by veterans in the evaluation survey’. Similarly in South Australia, 100 per cent satisfaction was reported for attitude and professionalism, timeliness, convenience and access and a 97 per cent satisfaction level for helpfulness and the quality of service.

CentrepayCentrelink has developed Centre pay, a facility that enables Centrelink customers to have voluntary deductions taken from their social security payments for direct remittance to a third party organisation as full or part payment for ongoing expenses, such as rent. By introducing this initiative, Centrelink not only assists its customers to meet priority commitments, but also provides organisations with a further deduction facility option. Centre pay was initially developed to assist the Indigenous housing sector; however, it has since been extended to include the non-Indigenous community housing organisations, the private rental sector and utilities. Since Centrepay’s introduction, 3878 customers and 608 organisations have registered to use the facility as at 30 June 1999.

In 1999 Centrelink introduced a new service, Centrepay, which allows customers to choose to have regular bills deducted automatically from their Centrelink payments. This service helps customers budget and provides security of payment for landlords and other organisations

who have signed up for the facility. The service has been well received by customers, particularly Indigenous customers in remote communities who have little or no access to standard banking facilities.

More Service CentresCentrelink opened a total of eight new Customer Service Centres and two Call Centres in 1998–99. Of these five Customer Service Centres and one Call Centre are located in rural Australia. All of the new Customer Service Centres were fitted out with Centrelink’s customer-friendly open plan office layout. In addition, 13 Customer Service Centres and one Call Centre were relocated to provide improved facilities for customers and staff. A further 19 existing Customer Service Centres were fitted out with Centrelink’s open plan layout bringing the overall percentage of open plan layout Customer Service Centres to 63 per cent, up by eight per cent from 55 per cent in1997–98.

Retirement Service Centre Pilot ProgramAlthough the pilot program officially ended in June 1998, the six Retirement Service Centres continued to operate throughout 1998–99. The evaluation conducted by Centrelink during and after the pilot phase showed continuing strong support from customers. In conjunction with the Department of Veterans’ Affairs, the Australian Taxation Office and the Department of Family and Community Services, Centrelink is now considering the implications of the Retirement Service Centre pilot for its future service strategies for retirees. The best aspects of the Retirement Service Centres were:

• expert service from staff who are aware of the needs of older people;• a sense of ‘space’ in terms of a relationship with Centrelink which retired customers feel they have

some ownership over, and in which they can transact their business in a way that is particularly suited to their needs and preferences;

• availability of specialist staff to assist with more complex transactions; and• access to other aged services available from the Department of Veterans ‘Affairs and the Australian

Taxation Office. These agencies have continued to provide support to the sites as they considered them to be most successful in terms of their respective program objectives.

Queue ManagementQueue management in Customer Service Centres remains an issue for our customers with only 61 per cent of customers rating our queue handling as good or very good. In response to low customer satisfaction with this aspect of Customer Service Centre service, Centrelink initiated a national learning campaign in June 1999for reception staff. The national campaign focussed on improving staff queue management and work scheduling skills. The national campaign was developed following positive results from a pilot run in Western Australia in early 1999.

Centrelink’s Rural Outreach program is part of the broader National, Rural and Regional Servicing Strategy developed to improve delivery of Centrelink services to country Australia. This occasion was the official launch of Centrelink’s partnership with the South Australian Government and Ruralink as part of Centrelink’s Rural Outreach program.

Rural and Regional ServicingCentrelink has been active in seeking the views of customers, community representatives, and other private and government organisations in order to identify issues relating to service delivery in rural communities. As a result, Centrelink developed a National Rural and Regional Servicing Strategy.

The Strategy, which commenced in July1998, improves access to Centrelink services for many rural and regional customers and allows Centrelink to work collaboratively with local communities and other agencies, including strategic partnerships with state and local Governments.

New Servicing ArrangementsMore than 100 new servicing arrangements were established in 1998–99, including agents, visiting services, self-help facilities and other information technology solutions. One example of these new servicing arrangements is the joint project at Moira Shire, Victoria, where Centrelink in conjunction with Cutting Edge Youth Services, provides a bus as a mobile resource and access facility. The bus will be the regional focus for young people to access information as well as providing counselling and health related support services. These new initiatives were officially launched in January 1999 by the then Minister for Community Services, the Hon. Warren Truss MP, jointly with state and local members as part of the Centrelink Rural Outreach program.

Remote Access ServicesCentrelink’s Remote Access Services system introduced in 1998 is recognised by the Commonwealth Government ‘Technology in Government’ committee as being of international standard, and was awarded a Government Technology Productivity award this year. The system laptop solution closely mimics normal office workstations. Remote Access Services system provides mainframe connectivity, Lotus Notes mail, intranet services and file server connectivity. The laptops allow staff to deliver services to remote locations anywhere in Australia and they also facilitate home-based work. Remote network connection occurs via modem, mobile phone or satellite phone with an extremely high level of security through hardware authentication, 128 BIT encryption services and user login security.

To date, 550 laptops have the capacity for Remote Access Services connectivity. This number is expected to rise markedly over the next financial year.

During the recent disruptions in Kosovo an 85 year old Serbian customer arrived unexpectedly on an International Services doorstep in Hobart with all his worldly possessions packed in two overnight bags. He had once lived in Australia, though the only people he now knew in Australia were the ‘Centrelink people in Hobart’ whom he had got to know ‘through the newsletter’. International Services staff comforted the customer until they found him refuge.

Rural and Housing Customer Segment TeamAs a further sign of Centrelink’s commitment to improve its services to rural and regional Australia, a Rural and Housing Customer Segment Team was established in January 1999. The Customer Segment Team’s primary objectives are to focus on service delivery strategies that will further improve access to Centrelink’s services to customers who are located in rural and remote locations.

Rural Call CentresThis initiative arose out of community consultation in rural and regional Australia, which identified a strong need for service delivery strategies more responsive to community needs. Rural Call Centres will be established at Mary borough in January 2000 and Port Augusta at a later date. These Rural Call Centres will service a defined rural catchment area and provide a service that understands local issues and recruits local staff with empathy for the difficulties experienced by rural and regional customers.

Improved Telephone AccessCustomers are increasingly signalling their desire to do business over the phone. In order to improve access to Centrelink’s telephone service a Call Centre Service Delivery Strategy commenced in late 1998and early 1999. The strategy has the following five major elements:

demand management—reduce the volume of calls by scheduling the timing of events so as to reduce peak demand periods;

call handling productivity improvement—increase the number of calls handled through changed work practices, change management practices, new technology and benchmarking;

contingency plans—develop contingency plans for periods of peak demand; resourcing—increase resourcing in Call Centres either through transfer of existing resources or

increased fees for higher standards of service; and expectation management—manage the expectations of customers and the community through

improved information.

In addition Centrelink Call has introduced or upgraded a number of specialised services to enhance service delivery to customer groups with particular needs. These include:

Customers from Diverse Cultural and Linguistic BackgroundsRationalisation of the Centrelink Multilingual Service at the Liverpool Call Centre, providing access to Centrelink services in over 20 languages to customers from diverse cultural and linguistic backgrounds.

Remote Indigenous Customers Establishment of the Palmerton Indigenous Call Centre (Area North Australia) in December 1998. Established specifically to service remote Indigenous customers the Call Centre’s ‘footprint’ extends from Cairns to the Northern Kimberley.

Given the customer base and the vast distances included in the catchment’ footprint’ the Call Centre team knew that it was important that their customers felt as if they knew each of the team members. Accordingly, the team developed poster with each of the team member’s photograph and full name. The poster has been promoted throughout the ‘footprint’s remote communities.

Access to Telephone-based Social WorkersImplementation of a national social work queue as part of Centrelink’s Call Centre operations. Calls are transferred to a social worker in the queue when a customer is distressed, experiencing a crisis or in need of counselling and support regarding complex personal issue. This service is proving to be particularly effective in providing an early intervention service to those Centrelink customers most in need of assistance. The Social Workers also provide support to our Call Centre staff particularly in relation to how to deal with customers in crisis.

Carers and Customers with a Disability or SicknessImplementation of a new telephone number to handle enquiries from customers relating to disability, sickness and carer issues on 12 April 1999. The then Minister for Community Services, the Hon. Warren Truss MP, launched the new service on 18 June1999. This initiative resulted from feedback received from representatives from disability and carer organisations as well as the general community.

The new number is 13 2717 and a feature of the new service is its ease of access. There is minimal messaging at the beginning of the call and no action is required by the caller in order to be connected to a Centrelink staff member. Telephone calls from customers are handled by staff who have been trained specifically in the area of disability awareness and with a detailed knowledge of entitlements and services.

In its first few months of operation the new service has been very well received, with customers and peak disability organisations reporting an enhanced level of service to people with disabilities and carers.

Call Centre AutomationThe identification of business requirements for initial Call Centre automation facilities was finalised during the year. Telephone-based customer self services will include information about recent and next payments, balance of an advance and provision of statements of current payments to be used for claiming concessions. Contracts have been arranged with a systems integrator and information

technology developers to build these facilities with the first of these to become available by the end of 1999.

An interim customer self service telephone facility to provide payment details to customers was implemented in Western Australia in May 1999 for subsequent national rollout in late 1999.This will result in some improved customer service but will also provide important information about usage patterns, privacy and security issues, as a precursor to the full program of automation features to commence in 2000.

Improving Letters, Forms and Information ProductsThe major areas of focus for improved access through improvements to letters, forms and information products were:

the introduction of a customised claim form; the continued overhaul of Centrelink letters including developing and market testing Centrelink’s new

statement style letter format and other forms; and increased circulation of the Age Pension News and improvements to it and a range of Families and

Multicultural Services Information products.

Customised Claim Form for Customers Looking for WorkFrom May 1999, Centrelink began to implement a system eliminating the need for customers wishing to apply for Newstartor Youth Allowance to fill in forms up to 30 pages long. The system allows customers to give their details verbally to Centrelink staff for input directly into the system. A customised completed claim form is printed for the customer to sign and the customer is provided with a copy. Feedback from both Centrelink staff and customers has been extremely positive—as one staff member said: ‘It’s good for staff, because they are happy to offer an enhanced service. Customers do not have to fill in the same long forms, telling their story over and over whenever they go off and on payments, because their details are recorded on their online claim form’. The intention is to expand the online claim form system to include a plan for returning to work which will be individualised to the customer’s needs and agreed with the customer at their first interview. The plan will set the scene for customers to be actively managed during the period of income support. The online system will also be expanded to cover other products and services delivered by Centrelink.

Improved LettersThe major overhaul of letters which began soon after Centrelink was established continued throughout 1998–99. Centrelink undertook extensive customer research with carers and representative groups in developing claim forms and processes for carers payments. As a consequence, new review procedures were implemented in response to customer feedback.

General improvements that have been made to letters include customer friendly language and ensuring customers have the necessary information without jargon. As part of Centrelink’s broader work to significantly improve its letters, Centrelink developed and tested a statement style letter with customers. The statement style letter is similar in format to a telephone account. The letter, which was released in late June 1999, sets out the information the customer needs to know about his/her payment and features any information confirming recent changes or action that the customer needs to take.

Web Post OfficeThe Web Post Office trialled the delivery of letters to Centrelink customers via the Internet. Customers in eight regions in South Australia were invited by a direct mail out and at interview to participate in the trial. The invitation by mail was poorly received but customers with some familiarity with the Internet almost always took the option up. Using an identifier and a PIN, registered customers were able to log onto the Centre link Web Post Office Internet site and read their letters. Letters not read in three working days were resent by post; unfortunately 50 per cent of letters were not read in this time even though an email was sent advising the customer a letter was waiting to be read. The trial ran from 11 January 1999 to 30 April 1999but continues to operate for Youth Allowance customers in South Australia. Centrelink is

currently researching the likely take up of other customer segments with a view to rolling the Web Post Office out in 2000.

Age Pension NewsThis is one of Australia’s most widely circulated publications, going to over two million readers. It is produced in15 community languages, and an audio edition is provided for the sight-impaired. As part of Centrelink’s contribution to the International Year of Older Persons, and in line with customers’ references expressed through market research, Age Pension News was substantially upgraded in 1998–99.It is now produced in a 16 page, colour magazine format, and includes a wider range of material of interest to retirees.

Market research on the upgraded publication showed overwhelming support for the changes. It suggested that, while age and service pensioners have retained strong sense of ownership over the publication, and continue to regard it as authoritative and independent, the smaller size, full colour pictures and new contents are all greatly appreciated by the readership.

In 1999–2000 the circulation of Age Pension News will be increased to include over 200 000 self-funded retirees who hold a Commonwealth Seniors Health Card.

Age Pension News, the flagship publication for age pensioners, has turned 10 years of age. The magazine is delivered to over two million customers and has become a publication that the older community has come to rely on and even file away as reference material. It has also become the Commonwealth Government’s major avenue for communication with pensioners. The magazine reflects the Government’s vision for a more corporate, innovative, customerfocused delivery of services.

Publications for FamiliesA suite of information products to publicise the benefits and services available to families was published during the year and distributed widely to customers and community groups. The products are:

• You and Your Family—a 12 page colour magazine issued in December 1998 to 1.8 million Family Allowance customers and distributed to Members of Parliament and about 14 000 community organisations;

• Help for You and Your Family—a 16 page colour brochure issued in December 1998 and June 1999 throughout the Centrelink network as well as being distributed to more than 200 000 new mothers. The brochure provides an overview of Commonwealth assistance for families; and

• Helping Families—a 96 page comprehensive guide to family services, issued in January 1999 to community organisations and others whose work brings them into contact with families in need of Centrelink’s services.

The response to these publications has been very positive as evidenced by the high demand for them from our customers and community groups.

In October 1998 the Minister for Family and Community Services, Senator the Hon. Jocelyn Newman, officially launched the Centrelink booklet Working to Assist People Experiencing Violence. The booklet promotes Centrelink’s position in relation to domestic and family violence and the services we provide to affected customers. Minister Newman also launched Centrelink’s Customer Service Improvement Plan which includes longer term solutions for such customers.

The Parents, Babies and Children Expo held in Adelaide provided a great opportunity for Centrelink to promote itself to families customers. Centrelink staff were kept busy answering over 1100 enquiries. Queries from women expecting their first child were many and diverse. A wide range of payments and services for families were promoted at the Centrelink display and many customers expressed appreciation for the effort made to provide the information.

Customers Who Are Unable to Read or Comprehend Printed MaterialCentrelink has a popular radio program called Centrelink Today that is broadcast nationally for the Print Handicapped Australia. The show is hosted by Melbourne ABC radio personality, Terry Laidler. Aired

fortnightly, Centrelink Today brings listeners a wide variety of information about Centrelink payments, programs and services with a particular focus on issues for people who are unable to physically handle books or newspapers or to read or comprehend printed material.

Multilingual Information for CustomersCentrelink has taken considerable care to provide information through a range of media to cater for the diverse cultural and linguistic needs of its customers. The Centrelink web site has five pamphlets,12 fact sheets and nine publications available online in up to 28 different languages which can be printed as required. Fortnightly radio programs are broadcast in up to 24 languages across Australia on SBS and community radio stations. Editorial articles regularly appear in the national ethnic press in eight languages. Through its Customer Service Centres and other agencies, Centrelink provides a wide range of printed pamphlets and brochures in up to 18 languages. These brochures are specially designed to provide clear and simple information for easy translation. Centrelink’s multilingual telephone service answers 20 000 phone calls per month in over 20 languages, providing the full range of Call Centre services to customers in their own languages.

Playing an Active Role in the CommunityCentrelink views itself as an important part of the local community and an important partner working together with community groups and other tiers of Government to offer seamless services to customers. Centrelink played an active role in the community in 1998–99 in a variety of ways including:

• being involved in community groups and committees and celebrating key national events;• involving community groups and other business partners in the process of listening to customers;

and• responding to and helping the community to recover from disasters.

Involvement in Community Groups and CommitteesCentrelink participates in community consultation and involvement through invitations from organisations and established community groups. Centrelink uses such forums as a means to consult, share information about Centrelink services, develop appropriate service delivery strategies and launch major initiatives aimed at improving the delivery of services to the various communities.

The efforts of the Kalgoorlie Customer Service Centre are an example of how Centrelink is forging strong links with local communities. Staffs are personally involved in a Work for the Dole project that is revegetating and redeveloping a local nature park, Karlkurrla. The project is one of the most successful in Australia for placing young unemployed people. In April the Prime Minister, the Hon. John Howard, praised both Centrelink and the Kalgoorlie-Boulder Urban Land Group for their efforts.

State/Territory-based Migrant Advisory CommitteesCentrelink continues to run six State/Territory-based Migrant Advisory Committees. The purpose of these committees is to facilitate communication between Centrelink and state based organisations that deal with migrants and refugees. Representatives from these organisations provide feedback to Centrelink about service delivery and policy impact and Centrelink in turn provides information on policy, technological and structural changes that will affect these organisations or their clients.

Millions of people around the world celebrated International Day of People with a Disability. Centrelink joined in the celebrations by sponsoring an event at the Australian Institute of Sport in Canberra and also by participating in numerous state based events. Centrelink was also one of the major sponsors of National Information Communication Awareness Network Inc. who coordinated the celebrations across Australia. The Network is a non-profit organisation which Centrelink plans to sponsor again this year.

Contributing to a Stronger Philanthropic Culture in AustraliaStaff of the Townsville Call Centre has introduced an initiative called ‘Helping a Local Organisation (HALO) Day’. Under this initiative staff voluntarily work extra hours and donate their overtime to local organisations that help Centrelink customers.

Centrelink Disability and Carers Customer Service Reference GroupThis Reference Group provides feedback about quality of services and advice on the impact of new initiatives. The membership of the Reference Group has been expanded and has representation from peak disability, industry and community organisations.

The access issues which face customers with a hearing impairment were examined by members of the Reference Group. The outcomes from this work include the establishment of a TTY line to enable people with hearing impairments to provide feedback to Centrelink.

A working party has also been formed to examine how Centrelink can identify and improve communications with customers with intellectual disabilities and recommendations will be made by this working party in the coming year.

Centrelink Conference with Peak Ethnic AgenciesIn June 1999, Centrelink held its first national conference with representatives from 13 peak ethnic agencies intent on establishing an on-going national reference group. Community agency representatives showed strong interest and support for the work Centrelink has undertaken to improve access to its services by people from diverse cultural and linguistic backgrounds. This national reference group will consist of high level representation from Centre link and the major ethnic agencies, and will principally focus on issues relating to delivering service to Australia’s multicultural population with the aim of increasing customer satisfaction.

At the 4 June 1999 Conference, the then Minister for Community Services, the Hon. Warren Truss MP, launched Centrelink’s vision for Delivering Multicultural Services 1999–2003. Minister Truss announced that Centrelink will be providing multicultural Australia with comprehensive access and participation in government programs and services. The statement provides clear direction for meeting Centrelink’s vision, mission and goals for customers from diverse cultural and linguistic backgrounds.

Multicultural Service OfficersCentrelink operates a national network of over 80 Multicultural Service Officers. These officers are based in Customer Service Centres and take an active role in assisting Centrelink to develop effective relationships with community agencies and customers from diverse cultural and linguistic backgrounds. This year, there has been a specific focus on the development of language services and the delivery of information to communities about the range of services and payments Centrelink offers. Multicultural Service Officers have also had a particular focus on the needs of refugees with several successful projects aimed at tailoring service delivery to that group.

Involving Community and Business PartnersCentrelink takes every opportunity to involve community and business partners in the process of listening to customers to understand their needs. One way it does this is by inviting them to participate in Value Creation Workshops.

During 1998–99 a total of 269 workshops were held around the country involving about 4000 customers and a similar number of staff. This brings the total number of customers and staff who have participated together in this innovative cultural change intervention to about 10 000 since Centrelink was formally launched. The workshops involve 15–20 customers participating in a structured feedback session in which a similar number of staff participate by trying to anticipate what the customers value about Centrelink’s service and how they will rate the service.

The process of inviting community and business partners to participate in the workshops has proved extremely useful in creating a shared understanding of the issues affecting particular customer groups. It also serves to inform the processes of policy and service delivery strategy development. Some examples of how Value Creation Workshops have been used in this way include:

• workshops involving families required to accurately estimate their income;• customers with disabilities and carers;

• customers from diverse cultural and linguistic backgrounds; and• Indigenous customers.

Families with ChildrenA series of six workshops, focusing on families receiving financial assistance assessed on the basis of estimated income, was held in early 1999. The workshops were a collaborative effort involving the Department of Family and Community Services, the Australian Taxation Office and Centrelink’s Customer Service Centres, Area Support Offices and National Support Office. The outcomes from the workshops were used to inform the policy for families assistance under the tax reform package and develop strategies for helping customers improve their ability to accurately estimate their income or provide timely advice of any changes to estimated income.

Customers with Physical DisabilitiesBetween November 1998 and March 1999a series of workshops was conducted with customers with physical disabilities, those with hearing and vision impairment, and carers. The workshops were a collaborative effort involving the Department of Family and Community Services and Centrelink’s Customer Service Centres, Area Support Offices and National Support Office. Representatives from the Department of Family and Community Services attended to learn more about the difficulties faced by customers in this segment in their dealings with Centrelink.

Peak agencies including the Royal Blind Society, the Victorian Physical Disabilities Association and the New South Wales Deaf Education Council attended these workshops. Positive feedback was received from participants about current levels of satisfaction with Centrelink services, and service improvement strategies are being developed where appropriate.

Through a network service delivery partnership between Area Pacific Central and Disability and Carers Customer Segment Team a Work and Disability manual has been developed. The manual will assist staff in both government and community organisations to provide needs based assessments and employment related services to people with disabilities. Centrelink contracted a number of external health professionals to assist in developing the manual. External organisations such as the Queensland Aids Council, the Cerebral Palsy Association and the Muscular Dystrophy Association contributed to the manual.

Customers from Diverse Cultural and Linguistic BackgroundsCentrelink has continued to seek feedback from customers of diverse cultural and linguistic backgrounds. Value Creation Workshops were conducted in five languages in 1998–99—Vietnamese, Arabic, Greek, Italian and Spanish with staff listening in on headsets to a simultaneous translation of the discussion. Customers indicated the need for staff to understand their cultural differences but overall had similar expectations of service to those expressed at English speaking workshops. The workshops, which are usually attended by one or two representatives from the relevant local ethnic community group, have been successful in strengthening the partnership between Centrelink and the various ethnic community groups through a shared understanding of the needs and expectations of customers from diverse cultural and linguistic backgrounds.

Indigenous CustomersTwelve workshops for Indigenous customers were conducted throughout Australia’s urban, rural and remote areas in 1998–99.In some cases the Value Creation Team have travelled up to eight hours by bus to reach the more remote communities. The customers, including community elders, who often have to travel long distances themselves to attend a workshop, spend up to a full day relating their experiences of dealing with Centrelink and the local Customer Service Centre staff.

The future of the Centrelink’s Value Creation Team has been strengthened with the training of nine new Indigenous Facilitators and 28 Indigenous Customer Service Champions to facilitate change focusing on services to Indigenous customers and their communities.

International Year of the Older PersonThe Fraser Coast Customer Service Centre in Area Brisbane introduced an awareness raising program about elderly abuse in the local Hervey Bay community. An International Year of the Older Person project, the program was developed in consultation with local government and the Hervey Bay Community Strategies Group.

Disaster Response and RecoveryCentrelink 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 is able to continue to provide its normal services to the community as well as to provide additional assistance to those people who have been most affected by the disaster. This additional assistance can be financial(through payments such as Special Benefit or Disaster Relief Payment), or counselling(such as advising people on the types of social security available to them and providing Social Worker assistance to local community recovery agencies).

During 1998–99 Centrelink provided financial and counselling assistance to a number of communities that had been affected by several natural disasters.

Examples were:

• northern New South Wales and Queensland coastal communities which were affected by heavy rain and flooding from July to October 1998and again during February 1999; and

• Western Australian Exmouth and Moora communities which were devastated by cyclones and flooding during March 1999.

Centrelink sent a Disaster Recovery Team to Exmouth after Cyclone Vance virtually destroyed the town. The team’s help was gratefully received.

Centrelink was also called upon by Client Departments to deliver ex-gratia payments to people affected by various disasters. These occasions included:

• the Victorian gas plant explosion in September 1998. As a result of that crisis, the Prime Minister announced the establishment of an Emergency Relief Fund for those people affected by the loss of gas supplies. This involved an ex-gratia payment to people who were stood down from employment and who could not immediately receive other income support. Centrelink administered the ex-gratia payment and also provided a general information service regarding industry and community group assistance on behalf of both Commonwealth and Victorian Governments;

• the Crookwell New South Wales Southern Tablelands bushfires in February 1999. On this occasion Centrelink administered a Commonwealth Government ex-gratia payment to 37 farmers in the Crook well, Oberon and Evans Shires who had been affected by the fire; and

• an outbreak of Newcastle Disease in chickens in the New South Wales Central Coast, north west of Gosford, in April 1999. Centrelink administered a Commonwealth Government ex-gratia payment to farmers whose livestock was destroyed and whose farms were quarantined in an effort to eradicate the disease. In addition, Centrelink representatives attended regular meetings between State Government officials and local farmers, and Centrelink provided a dedicated hotline telephone number for people seeking information on Centrelink’s services.

While disaster management is a State government responsibility, Centrelink plays a key role in recovery operations, providing income support and other services to customers whose lives have been disrupted by extreme events. The Victorian Gas Crisis saw Centrelink swing into action. As soon as paralysed industries started standing down workers in large numbers, Centrelink conducted interviews and processed claims at their workplaces for five days from the time the gas supply went down.

Multicultural Service Officer Gilda Campbell was quick to respond when a severe hailstorm ruined the market gardens in Virginia, north of Adelaide. Over 110 market gardens were affected. ‘I thought it was best for us to go to them,’ Gilda explained ‘to make sure we gave personalised attention and service’.

Vietnamese interpreters and Centrelink staff from three offices visited the area over three days to respond to enquiries and assist the customers to fill out forms.

Centrelink also helped out in other less widespread but nevertheless as devastating occurrences such as severe hailstorms that hit north of Adelaide in September 1998.

Centrelink sent a Disaster Recovery Team to Exmouth after Cyclone Vance virtually destroyed the town. The team’s help was gratefully received.

While disaster management is a State government responsibility, Centrelink plays a key role in recovery operations, providing income support and other services to customers whose lives have been disrupted by extreme events. The Victorian Gas Crisis saw Centrelink swing into action. As soon as paralysed industries started standing down workers in large numbers, Centrelink conducted interviews and processed claims at their workplaces for five days from the time the gas supply went down.

Multicultural Service Officer Gilda Campbell was quick to respond when a severe hailstorm ruined the market gardens in Virginia, north of Adelaide. Over 110 market gardens were affected. ‘I thought it was best for us to go to them,’ Gilda explained ‘to make sure we gave personalised attention and service’. Vietnamese interpreters and Centrelink staff from three offices visited the area over three days to respond to enquiries and assist the customers to fill out forms.

Other AchievementsThe Payment Cycles ProjectThe Payment Cycles Project was the major focus of Centrelink’s technical development over 1998–99. The project was announced by the Government in the1997–98 Commonwealth Budget and provided for the following arrangements for social security payments:

• make all payments ‘period-based’;• make payments ‘fortnightly in arrears’;• make payments on any week day;• pay all of a customer’s entitlements on the same day (although there is provision for Family Payment

to be paid in the alternate week to other payments);• align entitlement periods for members of a couple; and• introduce a standard ‘14 day notification period’ for all customers (with some exceptions such as

Bereavement payments).

These new arrangements replace a complex array whereby the period of payment and day of payment have varied over time and between payment types. Each of these separate arrangements was built into Centrelink’s processing systems. The Payment Cycles initiative has involved changes to virtually every record in every payment type with the new arrangements to all take effect from 1 July 1999. Close to 1.3 million customers were set to receive a ‘transition’ payment (payment for part fortnight) in the first weeks of July 1999.

As part of the implementation of this initiative, Centrelink wrote to pensioner customers who maintain bank accounts with the Commonwealth Bank and St George Bank. That letter explained to those customers that from 1 July 1999their bank would no longer be able to continue a long standing practice of crediting payments to their accounts on the day prior to their payday. Centrelink also supported both banks in their information campaigns on this issue.

Centrelink also wrote to 1.2 million customers in May 1999 advising them of a change in their payday. The letter set out details of the ‘transition’ payments that would be made in early July as part of the arrangements for the new payment cycle.

Extensive systems testing and other assurance mechanisms were used to provide a high confidence level for implementation of this major Government initiative. This work was substantially facilitated by the passage of legislation in December 1998and early settling of policy issues. A joint Centrelink and Department of Family and Community Services Steering Committee sponsored a highly cooperative approach between the two organisations for each phase of this project.

The following new systems facilities were provided in support of this initiative:

• automated decisions on ‘dates of effect’ of verifications to customer payments as customers notify Centrelink of changes in circumstances. This will reduce future training requirements and improve accuracy in payments;

• components of the Family Payment system were moved into Centrelink’s ‘Common Platform’. As a result screen and screen flows for this payment group will be in line with those of the other major payments streams (pensions and benefits) again reducing future training requirements and allowing staff to move more easily across payment groups;

• the systems which take customer payments data and group this data in categories for dispatch to the Reserve Bank have been restructured in a streamlined and simplified form. These key systems should be more robust in the future with simpler forms reducing the risk of human error; and

• a new format for letters—a ‘statement’ style—was introduced in late June 1999 to present key information on payments to Centrelink’s customers.

Our PeopleOur goal is to create an environment where people in Centrelink are proud of their contribution and are making a difference. The Balanced Scorecard measures our performance towards this goal through the Centrelink People Key Result Area.

Key Strategies• develop and implement a Performance Management Framework that ensures all Centrelink people

are aware of the outcomes expected of them;• develop and implement a Centrelink Leadership Framework that creates a shared vision and culture

based on strategic directions;• develop and implement a Learning Framework;• develop and implement an Organisational Wellbeing Framework;• refine people management policies, systems and practices to support a culture of customer service;

and• redesign the structure and delivery of people management support services to improve efficiency and

support staff.

OverviewThe Centrelink People Plan 1999–2000sets out a framework for action so that Centrelink people will have:

• an understanding of the big picture—Centrelink’s goals and strategies that will achieve those goals;• an understanding of how their job fits into the big picture;• the skills and knowledge they need to meet their responsibilities and to continue to develop; and• better work tools and work policies that apply to their jobs.

Our people, through their knowledge and commitment to service, are one of Centrelink’s main competitive advantages. To give value, our people need to feel valued. Throughout 1998–99 we have

worked with our people to identify a range of strategic people management initiatives that will help us create a best practice organisation that attracts, satisfies and retains high performing people committed to Centrelink’s goals.

We have selected outcome measures for the Centrelink People perspective of the Balanced Scorecard that relate to our people’s perceptions of the key components of a best practice organisation. These key drivers have been picked up in the People Plan and the latest Centrelink Development Agreement.

The measures and targets are based on the first Centrelink Staff Opinion Survey undertaken in December 1997. As the survey indicated that our people viewed leadership, performance management and learning as key performance drivers, arrange of measures were selected for each of these. A follow-up survey was conducted in August 1998 using a sample of staff by area, with approximately 5000 staff being surveyed. The results demonstrated significant underperformance in this area. This is not unexpected in a new organisation undergoing major transformational change. However, it is not an acceptable outcome and a number of initiatives have been put in place to address this area of under-performance. These are discussed in the following sections.

Performance DetailBuilding Staff Commitment with an Organisational Wellbeing FrameworkThe organisational wellbeing framework operates within the People Plan. It is linked closely with Centrelink’s ongoing commitment to team based work and the leadership, learning and performance management frameworks.

The framework sets out the organisational wellbeing principles championed by Centrelink together with the strategies that will ensure these principles are a feature of our workplace. The principles are:

• a work culture that shares knowledge;• a work culture that values and respects the diversity of individuals;• good health in the workplace; and• a safe work environment.

Workplace DiversityThere has been considerable progress against the objectives of the Centrelink Workplace Diversity Program. Customer Service Centres are using Australian Bureau of Statistics statistical data on community profiles and are endeavouring to develop Customer Service Centre staffing profiles that reflect the community they serve. Detailed Equal Employment Opportunity recruitment and staffing data is located at Appendix iv.

Centrelink has developed an award winning video and training package for its staff to guide them in using professional interpreters correctly. The ‘Working with Interpreters’ video was the winner in the open category of the1998 Australian Public Service Workplace Diversity Awards. The video training package is available for sale through AUSINFO bookshops.

Over 17 per cent of Centrelink staff comes from a multicultural background. New arrangements with the Institute of Languages, University of New South Wales, for language testing means an increased number of staff will be able to help customers in the language most relevant to their needs. Testing will be on demand and over the phone.

A review of the Employment and Career Development Plan for Indigenous People commenced. To assist in this process, a survey to identify the needs and concerns of Indigenous staff working in Centrelink was developed. An Indigenous Reference Group has been established to ensure that the needs of Indigenous staff are met. This, in turn, enables them to provide personalised and culturally

appropriate solutions, which improve the social and economic participation and wellbeing of our Indigenous customers.

An Eldercare Kit has been released to assist staffs who have care responsibilities for older persons. This kit also celebrates the ‘Year of Older Persons’ and demonstrates Centrelink’s commitment to a healthy work/life balance.

A project team has been set up to work with Centrelink staff who require adaptive technologies to allow them to perform their duties. The aim of the project is to provide better user service by researching and supporting the development of adaptive technology solutions for staff. Work has been undertaken on the development of screen reader software for users with severely limited to no sight; screen magnification software for users with limited sight; and speech recognition software for users who have a physical impairment that prevents them from ‘normal’ manual keystroke or mouse functionality.

Health and SafetyCentrelink has an Occupational Health and Safety program which was developed as part of Centrelink’s Occupational Health and Safety Agreement 1997–99.The program is the basis for the achievement and maintenance of a strong, well developed safe and healthy workplace culture. The most important aspects of the program are:

• the recognition of the value of early intervention and prevention activities;• the identification and elimination of hazards; and• the development of team leaders and managers who are committed to the integration of health and

safety principles into everyday business.

The number of incidents reported to Comcare Australia, and investigations conducted, and directions and notices given to Centrelink during the 1998–99 period are shown in Table 11 on the next page.

Table 11: Occupational Health and Safety Details 1998–99

TYPE OF INCIDENT NUMBER REPORTED TO COMCARE

Death 0

Serious personal injury 19

Incapacity for five or more continuous working days or shifts 59

Dangerous occurrence 19

Total 97

DETAILS OF INVESTIGATIONS ETC. CONDUCTED NUMBER

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

3

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

3

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

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

A Better Health Practices conference was conducted in December 1998 to share information on strategies for early intervention and case management. It also provided the opportunity to gain a greater understanding of the issues relating to compensation claims determinations and requirements for compensation self-insurance. The main action arising from the conference was a research project on the feasibility of adopting a self-insurance approach to workers’ compensation in Centrelink. The major benefit of their search at this point will be a consistent ‘best practice’ approach to case management and early intervention strategies.

Developing Recognition ProgramsIn order to increase the use of recognition programs in Centrelink, a National Awards program has been introduced. The awards will recognise achievements related to corporate goals and objectives. There will be a three-tiered approach: local workplace; Area Support Office/National Support Office Team; and Corporate awards. New approaches to recognising performance through the remuneration system have been achieved through the new classification structure (discussed on page 66 as part of the new Centrelink Development Agreement). The new structure recognises staff performance through feedback and pay advancement, including accelerated advancement for performance exceeding expectations, and annual advancement.

Building Individual Learning and LeadershipIndividual Learning Team and Individual Learning Plans were introduced into Centrelink in 1997–98 as part of Centrelink’s National Learning Strategy. Since then growth in their usage across the agency has been steady. At 30 June 1999, 48 per cent of staff had Team and Individual Learning Plans. Team and Individual Learning Plans will be important foundation documents for the proper functioning of Centrelink’s new performance assessment process. Recent team self assessment workshops indicate a strengthening of linkages between business purpose and learning needs and that both team and individual learning should be aligned and focused on business outcomes.

Learning FrameworkIn June 1998, Centrelink’s Board endorsed the National Learning Strategy that with the People Plan sets the scene for learning and development. The Strategy is based on a logical progression of learning by individuals in the agency, through introduction to the organisation and its culture, systems and values, to job readiness for current and future jobs, specialist skills, management skills and knowledge and the acquisition of leadership skills. A competency-based approach underpins the strategy with national programs developed and accredited against competency standards. With this in mind, Centrelink became a Registered Training Organisation on 24 June 1999.

Centrelink has developed, piloted and delivered a range of accredited programs for its staff, including a Certificate in Business (Office Administration) and Certificate in Business (Administration)for frontline Customer Service Officers; a Diploma in Business (Administration) for Team Leaders; a Certificate in Community Services (Youth) for Youth and Students staff; a Diploma in Community Services(Disability Work) for Disability staff; and a Certificate in Fraud Control (Investigation) for Compliance staff.

During 1998–99 Centrelink strengthened its network of agents for customer driven change by training 28 Indigenous customer service champions bringing the total number of customer service champions, key change agents, to around 600. The role of these staff is to act as a focal point for staff to pursue their ideas on how customer service could be improved. The staffs assume responsibility for championing the

cause of improved customer service, facilitating customer driven change and monitoring customer satisfaction.

The next stage in learning in Centrelink will be the presentation of the bulk of the ‘technical training’ through the new medium of interactive television. The development in 1999–2000 of a Centrelink Education Network with the capacity for staff to interact with a central presenter and other participants around the country will enable Centrelink to reach more of its staff quickly and cheaply with uniform, high quality and timely training. The accredited programs will form the nucleus of Network presentations over the next two to three years.

Improving LeadershipLeadership has been a prime focus over the period. Centrelink developed an agency specific leadership model in 1997 that has since been distilled into a set of Leadership Capabilities to be used for selection and recruitment and for development purposes. Against this background a comprehensive 360 degree feedback program has been undertaken by the Guiding Coalition, followed by a series of Coaching Workshops to build skills and foster networks and peer support. A panel of providers under the generic theme of ‘Leading Change ‘worked with Area Managers and National Support Teams to develop the leadership skills of mainly management-level staff.

To better equip leaders in Centrelink, Leadership Capabilities have been identified and 360 degree feedback systems and training programs are being used to support leaders’ development. Work has also been undertaken to improve leadership through greater self awareness and coaching. Forty seven members of Centrelink’s Guiding Coalition and 236 senior officers undertook a comprehensive 360 degree feedback process (for example feedback from supervisors, peers, subordinates and customers) in the period, while 53 undertook coaching workshops to 30 June 1999.

Team Leaders’ TrainingThroughout the year leadership development programs were offered to staff at all levels in the Areas and National Support Office using local initiatives and the opportunities created by Centrelink’s Leading Change Panel. Consistent with the move towards accreditation, 20 of Centrelink’s frontline leaders participated in the pilot of a Diploma of Business (Administration) aimed specifically at the development of operational management and leadership skills.

Using Customer Service Improvement Plans The results from recent team self assessment workshops indicate a strong commitment to and involvement in planning activities which were agreed in the Centrelink Development Agreement 1997–1998. The team assessment workshops are proving a valuable tool in strengthening this area. The move from centralised planning is a slow process and part of the cultural change Centrelink is undergoing.

Becoming a Best Practice Employer through Workplace AgreementsNew Centrelink Development Agreement 1999–2002The new Centrelink Development Agreement 1999–2002 is an agreement between Centrelink, the Community and Public Sector Union and the Media, Entertainment and Arts Alliance under Section 170 LJ of the Workplace Relations Act 1996. The Agreement was certified by the Australian Industrial Relations Commission on the 11 May 1999. It is a three year; comprehensive agreement that provides a framework to support Centrelink’s strategic direction. The most important elements are a classification structure which encourages skills development for all staff and recognises performance through accelerated pay and advancement, on going structured feedback and early intervention to resolve performance problems. Quality customer service, better jobs and increased job security will result from this new agreement.

Centrelink is committed to consulting with staff and their representatives. Industrial Democracy principles were incorporated into the Centrelink Development Agreement 1997–98 and have been continued in the new Centrelink Development Agreement. In addition to the negotiations accompanying development of the new Centrelink Development Agreement, consultation with our staff continued throughout the year. The highlight was a highly successful National Strategic Development Conference held from 7–9 September1998 and involving over 60 staff, union and management representatives. The conference outcomes included significant contributions to our short, medium and long term strategies for achievement of Centrelink’s strategic goals.

Other formal consultative mechanisms include, at the national level, the National Strategic Consultative Committee that meets twice yearly as well as consultative committees at the local level. Centrelink provides appropriate facilities for those employees and union delegates with roles representing the interests of other staff. The Centrelink Development Agreement includes further provision for consultative processes and representation of staff.

Classification StructureOn 25 June 1999, Centrelink moved to a classification structure based on broad banding of the new Australian Public Service structure as part of the new Centrelink Development Agreement. The broad band’s flatten the former structure from a maximum of nine levels down to a maximum of four levels. The broadband maintain recognition of the broad differences in types of work in Centrelink, with streams for administration and management, information technology, professional work and public affairs. The potential for unwarranted increases in Centrelink’s salary profile is reduced through the use of work availability barriers in the higher bands.

Not only does the new structure reduce organisational hierarchy, but it also focuses on performance management through the use of a comprehensive performance management system linked to advancement within the structure. Under the new arrangements, performance management is based on a combination of agreed work objectives, together with behavioural standards linked to Centrelink’s Shared Behaviours. The arrangements require regular feedback and review, and promote early intervention to solve performance problems. Good performance is recognised through salary advancement. Performance exceeding expectations is recognised through accelerated advancement and access to higher pay levels.

Assessment against the agreed work objectives and the behavioural standards(known as ‘Performance Descriptors’) is conducted by the manager or team leader, with self assessment playing an important role, and peer and team feedback assisting in assessment against behaviours.

Centrelink Development Agreement 1997–1998Throughout the reporting period, work continued on the implementation of initiatives contained in the Centrelink Development Agreement 1997–1998.

Salary packaging was introduced on 28 January 1999 as part of the first Centrelink Development Agreement and has been continued in the new Agreement. In accordance with policy parameters for agreement making in the Australian Public Service, salary packaging does not involve any extra total cost to Centrelink.

In addition, a review of remote locality and general allowances was conducted. There view groups consisted of representatives from the Community and Public Sector Union, employees and management. The aim of the reviews was to streamline and simplify arrangements in place at that time. As a result of the reviews, more streamlined allowances arrangements have been included in the new Centrelink Development Agreement.

Other AchievementsRe-engineering Service Delivery within CentrelinkThe Infolink HR ProjectThe Infolink HR project has been a key tool in the re-engineering of people management service delivery in Centrelink. Infolink HR is more than a replacement Human Resource Management System for the more efficient and effective administration of pay and conditions. It has been aligned with the new Infolink Financial Management System to ensure both internal and external integration of systems and business. For example, we have been able to reduce costs by taking full responsibility for the management of our payroll. The better integration of the management of establishments, personnel delegations and system security has streamlined staff’s access to information technology products and resources.

In addition, Info link HR will support a stronger internal customer focus for people management advisers and team leaders/managers. A wider range of people-related activities can be serviced by the system. The inclusion of recruitment, career and succession planning, performance management, learning and development, and Occupational Health and Safety modules will provide for better workflows and support for activities such as human resource budgeting and workforce planning.

Pay Centre Processing ConsolidationAs an initial step in progressing the streamlining of delivery of people management services in Centrelink, the existing nine pay processing centres were restructured into a single national structure. The permanent structure consists of the National Pay Centre located in Burnie,Tasmania, delivering payroll as well as pay processing services to all staff, and three out posted Service Centres. The three Service Centres are responsible for the delivery of specific functions which require specialised skills and are located in Adelaide, Melbourne and Townsville.

The national pay centre structure is the first trial of a ‘shared services’ approach to providing internal support services through Service Centres located out in the field, and has also resulted in significant cost reductions. This restructure was a major change which involved extensive consultation. Staffs affected by the change were supported through this by a network of Career Transition Officers.

People Management Benchmarking ProjectIn addition, in order to gain a better insight into the efficiency and effectiveness of our people management practices, Centrelink participated in the Australian Public Service People Management Benchmarking Project coordinated by the Public Service and Merit Protection Commission. The results have provided us with qualitative and quantitative data that we are using to refine our people management practices and services.

Our Cost Effective OrganisationOur goal is to return an efficiency dividend to Government. The Balanced Scorecard measures our performance towards this goal through the Centrelink Cost Reduction key Result Area.

Key Strategies refine cost structures and set competitive prices; establish a resource management framework and processes to enable best practice utilisation of

skills across Centrelink; build capacity for managing outsourcing and contestability; upgrade financial management infrastructure; and

strengthen preventive compliance measures.

Overview of Centrelink Financial PerformanceA summary of 1998–99 expenditure and staff years is shown in the following table.

Centrelink’s net operating result for 1998–99 improved by $14.6 million compared to the corresponding period last year. This was after taking into account an efficiency dividend of $96.1 million returned to Government via a reduced revenue base.

The impact of the efficiency dividend is notionally illustrated in the following table.

Table 12: Financial and Staffing Resources Summary

ACTUAL

1997-98*

BUDGET &

ADDITIONAL

ESTIMATES

1998-99*

ACTUAL

1998-99*

Budgetary (Cash) Basis $(‘000) $(‘000) $(‘000)

Components of Appropriations

Running Costs (RC) 1 621 772 1 825 710 1 713 875

Other Program Costs

(excluding RC)

47 000 58 949 31 078

Total Expenditure 1 668 772 1 884 659 1 744 953

Accrual Basis

Cost of Service Delivery

1 687 365 na 1 676 517

Other Program Costs (excl. Service Delivery)

26 975 na 51 305

Total Expenses 1 714 340 na 1 727 822

Staffing: Staff Years (Actual)

25 336 na 22 641

Table 13: Centrelink’s Net Operating Result 1998–99 and 1997–98

1998-99 1997-98

$m $m

Revenue (net of dividend) 1697 1700

Revenue (before dividend) 1793 1754

Expenses -1677 -1687

Operating Result 166 67

Abnormal Item* -81 -27

Abnormal Item* 30 0

Extraordinary Item 0 -31

Operating Result before div 65 9

Efficiency Dividend -96 -54

Net Operating Result -31 -45

RevenueThe Department of Family and Community Services was the primary source of revenue, generating 88.9 per cent of Centrelink’s overall revenue. Centrelink’s operating funds are primarily derived from those client agencies with whom it negotiates Business Partnership Agreements. Those agreements provide for funds to be transferred to Centrelink in accordance with arrangements specified in the Business Partnership Agreements. Table 14 and Figure 12 sets out the available funds in 1998–99.

Table 14: Revenue 1998–99

SOURCE $M

Department of Family and Community Services (FaCS)

1 508.4*

Department of Employment, Workplace Relations and Small Business (DEWRSB)

100.9

Department of Education, Training and Youth Affairs (DETYA)

48.7

Department of Health and Aged Care (HAC) 12.0

Department of Agriculture, Forestry and Fisheries Australia (AFF)

4.8

Other Revenue 22.1†

Total 1 696.9

Notes:

*Revenue from Department of Family and Community Services includes $28.906m for Computing Equipment. †Other Revenue includes $0.209m from Direct Appropriations from Government.

Abnormal ItemsAbnormal items included voluntary redundancies totalling payments of $81 million. The full financial benefits of staff reductions and infrastructure improvements will become apparent in 1999–2000 and beyond in terms of lower net operating costs.

A further abnormal item of $29.7 million appeared in the 1998–99 Accounts; refer to Financial Statement Note 16. In the 1997–98 Centrelink’s Statement of Assets and Liabilities, $29.7 million was reported as a running cost payable. This amount was correctly classified as a payable to the Department of Finance and Administration in 1997–98. However, it was also incorrectly included in the net 1997–98 Receivables result of $36 million. A prior period adjustment has been recognised in Centrelink’s 1998–99.

Statement of Revenues and Expenses which rectifies the 1997–98 treatment of this item and correctly accounts for Centrelink equity as at 30 June 1999.

Balance Sheet and Cash FlowCentrelink required a loan from the Department of Finance and Administration during 1998–99 to assist in the financing of restructuring operations. An original requirement of $143 million for 1998–99 was progressively reduced to $31 million due to improved financial performance by Centrelink compared to the original plan.

Performance DetailPrescribed Efficiency DividendA significant milestone during 1998–99 was the achievement, for the second year in a row, of the 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 one per cent of total net running costs, was applicable to Centrelink. In 1998–99 the level of the additional efficiency dividend was 4 per cent. The special efficiency dividend resulted in the return to Government of $59.2 million in 1998–99.

The Financial Statements section of the Annual Report (page 103) shows revenue net of the dividend. The effects of the dividends are illustrated in Table 13 Centrelink’s Net Operating Result. Table 15 provides a breakdown of the individual components of the dividend.

Table 15: Government Dividend Requirements (Cumulative)

1998–99 1997–98

$m $m

Normal 31.0 16.0

Special 59.2 38.1

IT infrastructure 5.9 0.0

Total 96.1 54.1

Cost ReductionAdditional Dividend and the Debt Reduction are key performance indicators in the Key Result Area of Cost Reduction, under the 1998–99 Balanced Scorecard.

Additional DividendThe Additional Dividend is the dollar achievement in excess of both the compliance savings component of the compliance review activity benchmark ($399.6 million) and the debt recovery benchmark ($545

million). As savings and recoveries totalled $1 009.6 million, this benchmark was exceeded by $65 million.

Debt ReductionThis measure relates specifically to the Debt Prevention Initiative which is aimed at reducing the incidence of customer debt. The measure for 1998–99 was a reduction in the average value of preventable debt raised in the year. Preventable debt excludes debt over which Centrelink has no control—for example other government debt, Assurance of Support, Newstart Advance (loans) and compensation recoveries. In the 1998–99 financial year a seven per cent reduction was achieved against the baseline, exceeding the target by three percentage points.

Debt Prevention ActivitiesCentrelink places a strong emphasis on a wide range of preventative measures for all dealings with its customers. The aim of Centrelink’s preventative action is to ensure that all customers are paid correctly from the start and throughout their relationship with Centrelink, rather than detecting incorrect payments at a later date. These goals are achieved through a framework of procedures, controls and systems and by focusing specialist debt preventionresources, known as Debt Preventionand Monitoring Officers, on addressing the major causes of preventable debt. In this regard the major cause of preventable debt for Centrelink remains the failure of customers to advice of a change in their income or other relevant circumstance.

Debt Prevention and Monitoring Officer positions have been established across the Customer Service Centre network to identify and implement debt prevention strategies. The best of these local initiatives are further developed and implemented on a national basis in the interest of improved customer service and reduced outlays. In addition to this, other strategies such as new or revised work practices, information products to help customers be more aware of their responsibilities and outreach activities to employers and community groups are being undertaken.

Childcare AssistanceFrom 1 July 1998, Centrelink assumed responsibility (from the former Department of Health and Family Services) for the payment and administration of Childcare Assistance. As part of the administration of Childcare Assistance, Centrelink has been conducting reviews on operators of government funded child care services to ensure they are meeting the conditions of funding agreed to with the Commonwealth. During the 1998–99 financial year, 886 child care service reviews were conducted.

In line with Centrelink’s debt prevention strategy, Review Officers and Childcare Assistance Payments Teams have been conducting educational visits/seminars for child care service operators. This outreach has been focused on operators new to the child care industry.

Other AchievementsContracts ManagementDuring the year, Centrelink has achieved savings of over $14 million as a result of management of national contracts. Contract savings include: travel services; managed voice services; motor vehicle leases; photocopier services; and mail services. The savings accrued as a result of new contracts or contract management activities include: nominal or actual calculated cost reductions from better practices; reduction in or waiver of supplier invoices; liquidated damages and rebates; and reimbursement of some on costs for inter-agency jointly sponsored action.

Staff NumbersCentrelink is transforming its culture from one typically associated with the public sector to one that is more business like in its approach. This is reflected in the expense performance for the year. At the end of June 1999, the number of staff at Centrelink was 22 641*, a reduction of 2695 compared to 1997–98. It was achieved without a reduction in service standards and was made possible mainly through reductions in Customer Service Centre work backlogs, an associated reduction in Call Centre demand, stabilisation of systems, and more recently the establishment of a ‘one to one’ service. During the year $81 million in restructuring costs was paid in voluntary redundancies and the full financial benefits of staff reductions and infrastructure improvements will become apparent in 1999–2000 and beyond in terms of lower net operating costs.

Note: *Includes paid and unpaid permanent and temporary staff.

Reduced Comcare PremiumComcare Australia has advised that Centrelink’s 1999–2000 Workers ‘Compensation Premium rate will be $1.22 per wage and salary dollar. This is a $0.05reduction on the 1998–99 premium rate of $1.27 and reflects an improvement in our overall compensation claims management performance. This is a very positive outcome considering that the overall Commonwealth premium rate for 1999–2000 has increased.

In addition to obtaining a reduced premium rate, Comcare has also awarded Centrelink a bonus of $1 150 800 based on our handling of our 1997–98 claims relative to other Comcare customers. To a large extent, this excellent outcome can be attributed to a joint Centrelink/Comcare project that focused on the management of Centrelink’s ‘long tail’ workers’ compensation claims. This project along with other early intervention strategies has resulted in a saving of $7 million in liabilities.

In addition, the early intervention and prevention initiatives commenced as part of our organisational wellbeing framework outlined in Chapter 6, Our People, pages 61–63 have also assisted in reducing our premium rate.

Details of outcomes of the Occupational Health and Safety program are in Table 11, Chapter 6, Our People, page 63.

AbsenteeismAbsenteeism has increased 3.6 per cent during the reporting period. This result was not unexpected given the pressures on our people to adapt to a range of new customer service delivery initiatives. In line with the new Centrelink Development Agreement 1999–2002, team leaders and managers continue to promote a positive attendance culture which creates within our people a commitment to customer service while maintaining a flexible working environment that is sensitive to their family responsibilities. A renewed emphasis on options such as part time and home based work will be supported with better tools for workforce planning and monitoring through Infolink HR, our new human resources management system.

Centrelink CollocationIn order to reduce costs and increase efficiency, Centrelink has entered into a unique arrangement with our mail house, to share resources at the supplier’s premises. This arrangement offers reduced property and operating costs for Centrelink, elimination of the need for couriers for document transport, and reduced risk of delays in sending client letters.

Consolidation of Mainframe Operating and Production Processing StaffThe mainframe operations staffs from Canberra and Sydney were collocated in Canberra allowing the operation of both mainframes from a single site. Production processing staffs from Canberra and Sydney were collocated in Sydney where all the production processing is now managed. These initiatives resulted in a more efficient and cost effective operation of the two sites.

Information TechnologyThe Online Learning Centre pilot in Adelaide trialled the use of training packages delivered electronically via the Intranet to staff via their computers. The feasibility of using the concept across Centrelink will be explored further next financial year.

Previous annual costs of providing information technology support to Centrelink were estimated at $6.7 million and were delivered from seven state based support centres. The consolidated Information Support Centre in Canberra is now successfully running at an annual cost of $4 million. Regular internal staff surveys show a high acceptance of the new help desk at more than 85 per cent.

The Business Improvement CommitteeCentrelink has a continuing program of business improvement. The Business Improvement Committee was established in May 1998 to manage this change program.

The role of the Committee is to ensure that projects:

are consistent with Centrelink strategic objectives; result in measurable and harvestable productivity benefits; result in benefits to customers; and enable Centrelink to maintain and increase competitiveness.

The Committee assesses the value of potential projects through a rigorous business case process. The Committee assigns priority to those projects with expected high returns on investment and identifiable gains for customer service.

The three members of the Committee are:

Ross Divett, Deputy Chief Executive Officer; Graham Bashford, General Manager Business Development; and Jane Treadwell, Chief Information Officer.

All approved projects are managed through a project management framework which ensures a consistency of approach and establishes clear lines of accountability for pre-scheduled deliverables.

OUR INNOVATIVE ORGANISATIONOur goal is to provide innovative and personalised solutions consistent with Government policy. The Balanced Scorecard measures our performance towards this goal through the Innovation Key Result Area.

Key StrategiesThe key strategies are designed to:

develop Information Technology strategies that enable and align with the Centrelink Strategic Framework;

use new and emerging technologies to personalise service, expand choice, increase convenience and support decision making;

encourage innovation and creativity in Centrelink people; support the ‘one to one’ model of customer service; and build business partnerships and strategic alliances for a ‘single window’ to government services.

Performance DetailFreedom to InnovateNurturing IdeasThe Centrelink Intranet continues to be a popular method for staff to stay informed and to participate in organisation initiatives. In particular the ‘Centre Think’ site, with sections including an Ideas Bank and Let’s Talk forum, has proved to be a valuable incubator of new ideas and thoughts.

The monthly Business TV program ‘IT Works’ is in its second season and includes broadcasting of innovative local information technology initiatives to the rest of Centrelink.

Percentage of Business Undertaken ElectronicallyFamily SupportA new electronic registration process for Child Support Assessment applications was implemented in December 1998 to improve Centrelink’s effectiveness to electronically transfer customer data to the Child Support Agency. This resulted in an increase in the number of child care services lodging claims on disk, rather than completing paper forms.

Call Centre AutomationThe identification of business requirements for initial Call Centre automation facilities was finalised during the year. Phone based customer self-service will include:

information about recent and next payments; balance of an advance; and provision of statements of current payments to be used for claiming concessions.

Contracts have been arranged with a systems integrator and information technology developers to build these facilities with the first to become available by the end of 1999.

An interim customer self-service phone facility to provide payment details to customers was implemented in Western Australia in May 1999 for subsequent national rollout in late 1999. This will result not only in improved customer service butal so provide important information about usage patterns, privacy and security as a precursor to the full program of automation features to commence in 2000.

Employment Services Online Claim ProcessDuring 1998–99 an employment services online claim process was implemented replacing the collection of information via paper based forms. This is particularly attractive for jobseekers as more than half have an existing record and conventional processes require them to restate their circumstances. The collection of new claim information orally, has been overwhelmingly preferred by customers (97.4 per cent) to the traditional process of relying on a number of paper forms.

‘One to One’The Information Technology systems have been modified to support Centrelink’s ‘one to one’ service. Changes have included automating the process for allocating existing customers to a main contact

officer, making it easy for staff to identify a customer’s main contact and automating the allocation of the work associated with each customer to the appropriate Centrelink person.

Expert SystemsCentrelink is investigating the use of an expert (intelligent) system with the support of the Department of Family and Community Services. The expert system would guide staff through the necessary policy rules and legislation to help them determine a customer’s likely entitlements as they enter customer information. Such a system would provide a record of the decision path and generate up front a customer letter of likely entitlement at interview. The system would include a’ what if’ capability to enable customers to test a number of scenarios in assessing the impact of possible changes in their circumstances.

Use of an expert system has the advantages of:

assisting staff in their day-to-day processing and service functions; and addressing customer concerns about accuracy, consistency, clarity and completeness of information

provided.

The longer term possibility of extending the expert systems rule base to cover all the business of client departments/agencies and allowing customers access to their own records for restricted access/update is being examined. In order to test this technology, a small expert system ‘Planning Your Retirement’ is being built for release in 1999–2000.

Centrelink, in partnership with the Department of Family and Community Services, has gone to tender in order to form an alliance with an industry leader in expert systems technologies. Subject to a successful tender, it is planned that the first large expert system deployed would focus on supporting the Family Assistance Office and be built in line with the ‘life events’ and ‘one to one’ service.

Future InitiativesCentrelink has a variety of pilots and trials underway to enable it to fully understand how best to provide services to customers through a variety of electronic channels.

Projects include:

• a web post office;• the Telstra Multimedia Payphone; • secure Internet Messaging System to enable customers to send private and confidential information;• authentication and use of Public Key Infrastructure to ensure only authorised access to personal

information; and• development of an Electronic Service Delivery Business Plan.

Other AchievementsServices for AllCentrelink is one of Australia’s 100 leading information technology users, ranked number four across the country*. Information technology is a key enabler for Centrelink, allowing it to deliver services and payments to over six million Australians. In crisis situations, such as the Victorian gas crisis and the Exmouth floods, information technology has permitted payments to be quickly made at the doorsteps of the victims of these disasters.

*Source: Managing Information Strategies magazine, issue winter 1999, page 21.

Year 2000 InnovationsFor Year 2000 innovations see Chapter 9, Corporate Overview of Our Organisation, Year 2000 Compliance Report, pages 89–90.

Recognition of ExcellenceIn April 1999, as part of the 12th Annual Government Technology Awards for Advances in Technology, Centrelink won a combined silver prize in the Commonwealth Government category for the development of its Intranet and Remote Access Services system. For more detail see Chapter 5, Our Customer and Community, pages 43–44.

CORPORATE OVERVIEW OF OUR ORGANISATIONLegislationThe Commonwealth Services Delivery Agency Act 1997 (the 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.

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 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. (See Appendix x.)

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.

Role of the Chief Executive OfficerThe Chief Executive Officer is responsible for the day to day management of Centrelink and its operations.

Organisational ArrangementsThe 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 organisational levels and functions. It also provides the flexibility to build organisational capabilities which will be required for Centrelink to function in an increasingly contestable environment.

The organisational framework for Centrelink is summarised in Figure 14 on page 86.

Guiding CoalitionCentrelink has a flat management structure, the traditional divisions and branches have been replaced with teams. A Senior Executive Service Officer leads each team.

Every Senior Executive Service Officer is a member of the Guiding Coalition. The Guiding Coalition is our internal Management Committee. Each member represents his or her people. The Guiding Coalition meets 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 Network Figure 15 on page 87 highlights the presence of Centrelink across the nation. 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. 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 16 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.

National Support OfficeThe National Support Office is Centrelink’s headquarters, and as its name suggests, supports the Government, client departments and the Centrelink network which interacts directly with customers.

There are three main types of teams in the National Support Office, Theme Teams, Customer Segment Teams and Information and Technology Teams.

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

Customer 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 departments.

Information and Technology Teams are responsible for the development, release and maintenance of information technology products and services for Centrelink.

Centrelink’s Business OperationsThe scope of Centrelink’s business activities is largely determined by its contractual arrangements with a range of client departments and agencies.

Payments made on behalf of these clients in 1998–99 represented just over a third of Commonwealth budget outlays.

Business Partnership ArrangementsCentrelink’s business arrangements are outlined in either Business Partnership Agreements or other business arrangements with client departments or agencies.

The Agreements/Arrangements outline:

• products and services to be provided;• performance outcomes and reporting arrangements;• funding arrangements;• arrangements agreed upon, to manage particular issues; and• new and priority activities.

The Agreements/Arrangements 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.

For details of Partnership Arrangements as of 30 June 1999, see Chapter 1, Introducing Centrelink, page 6.

Other Corporate MattersDiscretionary GrantsCentrelink does not administer any discretionary grant programs.

Legislation/Regulations Impacting on BusinessThe Government requires all Statutory Authorities and Agencies to report on any legislation and/or regulations that impact on business. Centrelink does not have any actions to report.

Year 2000 Compliance The Year 2000 Compliance Project was initiated in March 1996 to address the Year 2000 issue in the former Social Security Portfolio. The key objective is to ensure that risks associated with the Year 2000 problem are effectively managed so that minimal impact is experienced.

Centrelink has a strong governance and reporting framework for Year 2000 compliance. A Year 2000 Steering Committee and Project Office were appointed in 1997 and have been responsible for the overall operation of the project. During the 1998–99 financial year management and reporting mechanisms on the status of Year 2000 compliance has been as follows:

• steering Committee of senior officers meeting bi-monthly;• quarterly reporting to the Information Technology Committee of the Centrelink Board;• Centrelink Project Office providing a reporting and coordination role;• quarterly reporting to the Government through the Office for Government Online;• monthly status of certification process reported to Centrelink Senior Executive Service;• six monthly Senior Executive Service sign-off, certifying Year 2000 issues have been addressed in

teams;• Year 2000 issues remaining as a standing agenda item at the weekly National Support Office

executive meeting;• monthly meeting of Year 2000 Branch Coordinators; and• six monthly meeting of Year 2000 Area Coordinators.

The Year 2000 Compliance Project targets all information technology and infrastructure items, including:

• hardware;• firmware (software instructions embedded in hardware);• internally developed and vendor supplied software and data;• external interfaces;• telecommunications; and• embedded technology.

Centrelink is considered a lead agency in Year 2000 work in Australia by the Office for Government Online. The status of compliance of critical items within Centrelink met the Office for Government On line’s best practice guidelines throughout 1998–99. At December 1998 Centrelink had assessed all systems for business criticality and all critical systems were perceived to be compliant. Since December Centrelink has been proving compliance of these systems and conducting formal certification. As at 30 June 1999 and in the months leading up to 2000, Centrelink will be continuing to test changes in the time controlled environment, to ensure a smooth transition into the new millennium.

Major activities for 1998–99 were:

• assessment of risk to the organisation through embedded technology;• expanding the role of the Project Office to provide reporting and coordination for all agencies under

the Family and Community Services Portfolio;• significant review of business continuity plans;• conducting end-to-end testing to ensure customer payments into financial institutions continue

without disruption;• conducting a series of thorough tests of business critical applications through its time controlled

environment; and• development of a communications strategy.

The current estimate of the Year 2000project cost for Centrelink over three years is $21 million. This is small for an organisation of Centrelink’s size. This is because the former Department of Social Security recognised the Year 2000issue early and implemented an eight digit date standard in 1982. The Commonwealth Bank and Woolworths have estimated they will spend $115 million and $30 million, respectively.

The budget for 1998–99 was $6.7 million in cash costs which was reviewed down to $5.9 million in May 1999 due to under expenditure.

A total of $11.34 million has been approved from the Year 2000 seed fund managed by the Office for Government Online to assist Centrelink, as a lead agency, to meet its Year 2000 objectives.

Information Technology InfrastructureThe Network 2000 project has been a major undertaking and underpins future demands on Centrelink’s information technology infrastructure. The project provides a Year 2000 compliant platform as well as improvements to Local Area Network stability. It also provides electronic mail services with the roll out of Windows NT and Lotus Notes. The project includes the upgrading of both hardware and software at every Centrelink location and has proceeded throughout the year.

Information TechnologyOur people have been asked to cope with many changes to existing systems as well as the introduction of new systems and technology. An information technology consolidation strategy has been developed to plan for improving the quality of the releases, formulation and implementation of standards for data recording and processing, and development of a new testing strategy. In addition, a Senior Executive Service Officer has been assigned to oversee the quality of releases. Results from the March and June releases show an overall improvement in the quality and cleanliness of the releases. Further

improvements in information technology operations are anticipated once the new structure for our Information and Technology Team is in place.

Business Continuity Planning UnitCentrelink has revised and extended its Business Continuity Planning Unit. This area coordinates organisation-wide risk management and business continuity strategies to ensure that Centrelink could recover from an emergency situation or disaster, including Year 2000 continuity issues, with minimal interruption to customer services.

SecurityThe principal achievements of the Security Business Team during 1998–99 were the development and implementation of Access link, the development and implementation of the Security Access Management System (SAMS mainframe —390) and the administration of the separation of Family and Community Services from Centrelink Security.

AccesslinkAccesslink, as a complete package, provides staff identification, computer access and building access. It provides an additional level of protection on individual user system privileges and customer data.

In October 1998, staffs in National Support Office were issued with Accesslink ID Cards to gain access to buildings at Tuggeranong Office Park. When the rollout of new software is completed for the whole of Centrelink, staff will be able to use their access card to generate a one-time password, making the logon procedure to our systems a secure process.

Accesslink implementation was completed in the Network in March 1999 and there are currently 16 500 Accesslink users nationally.

Security Access Management System 390A new system for administration of mainframe access has been developed and implemented throughout Centre link. The system receives and processes positional and organisational information which allows controlled access to, and management of, Centrelink’s computer resources.

Department of Family and Community Services SeparationThe Security Business Team administered the separation of the Department of Family and Community Services from Centrelink Security. The Department of Family and Community Services are now separated from use of Centrelink facilities, although access may be requested via Security Access Management System if required and approved by the Centrelink product owner.

Chief Executive Officer Major SpeechesAddress on Public Service ReformInternational Summit Winnipeg Manitoba

Canada

10 June 1999

Electronic Delivery of Government Services—the Centrelink Experience

Internet Insight Conference

8 March 1999

Three Stages of an Evolving Model to a ‘one stop shop’—Challenges at Each Stage Service Delivery to the Community: A Time for Critical ReflectionInstitute of Public Administration Australia

National Conference 1998

26 November 1998

Protective Security for Staff and CustomersSecurity in Government Conference—Senior Executive Service Seminar

5 November 1998

Leadership and the Executive TeamAustralian Capital Territory Public Sector

Quality Network

21 October 1998

Commitment from the Top: Using agreements and strategic people management to achieve business goalsThis speech was given to officers involved in the designing of workplace agreements in the Department of Workplace Relations and Small Business.

September and October 1998

The Spring Policy Workshop— Retirement ProgramsThe Department of Social Security (Retirement Branch) arranged a joint Centrelink/Department of Social Security workshop to discuss a number of micro policy issues.

24 September 1998

Panel on the Future of Paid and Unpaid WorkThe Future of Choice: 8th National

Conference on Volunteering

23 September 1998

CORPORATE GOVERNANCECentrelink and the Board of ManagementCentrelink’s Objectives The Agency, operating as Centrelink, was created to provide an administrative framework for integrating access to Commonwealth services in one place thereby providing a better standard of service delivery to the community and to individuals.

The scope of the Agency’s activities cover the full range of social security services previously provided by the former Department of Social Security; student assistance services and some employment services previously provided by the former Department of Employment, Education, Training and Youth Affairs; and child care payments to families previously provided by the former Department of Health and Family Services.

The Agency is a Commonwealth Government Agency but is not a separate entity from the Commonwealth. All legislation for the operation of Commonwealth departments and agencies apply to the Agency. The Agency is subject to the Financial Management and Accountability Act 1997. The Agency’s assets and liabilities are assets and liabilities of the Commonwealth.

Membership of the Board of ManagementThe Act specifies that the Board should consist of:

• the Chairman;• the Chief Executive Officer of Centrelink; and• at least four other members including at least two who are not principal officers of Commonwealth

authorities.

Except for the Chief Executive Officer, who is appointed by the Board, members of the Centrelink Board of Management are appointed on a part-time basis by the Minister. Appointed members, those members who are not principal officers of Commonwealth authorities, are appointed for no longer than three years but are eligible for re-appointment.

The Secretaries of the Department of Family and Community Services and the Department of Employment, Workplace Relations and Small Business are members of the Board. Both are non-voting members and are included in the ‘at least four other members’ category of Board members.

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.

CHIEF EXECUTIVE OFFICER

Ms Sue Vardon

Current Positions:

• Director, Australian Government Employees Superannuation Trust; and• Member, Council of Flinders University.

Previous Positions:

• Chief Executive, Department of Correctional Services, South Australia;• Commissioner for Public Employment, Office of the Commissioner for Public Employment, South

Australia;• Chief Executive Officer, Office of Public Sector Reform, South Australia; and• Chief Executive Officer, Department of Family and Community Services, South Australia.

Ms Vardon was named the inaugural Telstra Businesswoman of the Year in June 1995.

NON-EXECUTIVE MEMBERS

Ms Christine Gillies

Current Position:

• General Manager, Integration, St George Bank, Sydney.

Previous Positions:

• Head of Information Technology, Bank of Melbourne;• General Manager, Information Technology, Coles Myer Limited; and• General Manager, MITS Proprietary Limited, Sydney.

Mr Philip Pearce

Current Positions:

• Chairman, James Boag & Son Limited; and• Director, NM Rothschild & Son Australia Proprietary Limited.

Previous Positions:

• Chief Financial Executive, Woolworths Limited; and• Director, Accounting and Audit, Arthur Anderson & Company.

Mr John Thame

Current Positions:

• Chairman, Permanent Trustee Company Limited;• Acting Chairman, 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.

NON-VOTING MEMBERS

Dr David Rosalky

Current Position:

• Secretary, Department of Family and Community Services (formerly the Department of Social Security).

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 Position:

• Secretary, Department of Employment, Workplace Relations and Small Business.

Previous Positions:

• Secretary, Department of Workplace Relations and Small Business;• Commissioner, Public Service and Merit Protection Commission; and• Chief Executive Officer, Comcare Australia.

The Chairman and non-executive members of the Board were appointed by Senator the Hon. Jocelyn Newman, then Minister for Social Security, on 1 September 1997 for three years.

Board AppointmentsThe Board members who are principal officers of Commonwealth authorities hold office at ‘the Minister’s pleasure’. Dr Rosalky, Secretary of the then Department of Social Security was appointed in February 1998. Dr Shergold, Secretary of the Department of Employment, Workplace Relations and Small Business, replaced Mr Steve Sedgwick, Secretary of the Department of Education, Training and Youth Affairs, as a member of the Board in March 1999.

Disclosure of InterestsBoard members provide an annual statement to the Chairman advising of their directorships of other companies and organisations. Any Director who may have a direct or indirect pecuniary interest in a matter being considered is required to disclose 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 Chief Executive Officer who reports to the Board on the financial and operational performance of the Agency. The Chairman provides a report of each meeting to the Minister for Family and Community Services and 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 the Agency’s work. They are:

• An Audit Committee to support the Board in ensuring Centrelink operates with proper financial management and internal controls. Mr Robin Marrett is the Chair of the Audit Committee;

• An Information Technology Committee to provide advice and direction to the Board on strategic Information Technology issues, particularly those likely to impact on Centrelink’s ability to deliver government services. Ms Christine Gillies is the Chair of the Information Technology Committee; and

• a Quality Committee to assure the Board that Centrelink is delivering services that will see it remain as the ‘first choice’ for Government and customers and results in Centrelink being benchmarked as best practice in service delivery. Mr Philip Pearce is the Chair of the Quality Committee.

Table 16: Members’ Attendance at Board and Committee Meetings

BOARD MEMBER CENTRELINK BOARD

AUDIT COMMITTEE

QUALITY COMMITTEE

INFORMATION TECHNOLOGY COMMITTEE

(11 meetings) (3 meetings) (5 meetings) (10 meetings)

R. Marrett 11/11 3/3 4/5

C. Gillies 9/11 10/10

P. Pearce 6/11 4/5

J. Thame 11/11 3/3 8/10

S. Vardon* 10/11 2/3 4/5 7/10

S. Sedgwick 6/7 2/2

D. Rosalky** 10/11 1/1 7/10

P. Shergold*** 3/4

*Although Ms Vardon is not a member of the Audit Committee, she attends meetings as Chief Executive Officer of Centrelink.

**In March 1999 Dr Rosalky was appointed to the Audit Committee.

***In March 1999 Dr Shergold was appointed by the Minister for Family and Community Services to replace Mr Sedgwick as a member of the Board.

Each Committee meets on a four to six weekly cycle. The Chairman and all non-Executive Directors participate in at least one Committee of the Board. The Chief Executive Officer attends meetings of all Committees. The Charter of each of these Committees is at Appendix ii

Financial StatementsAppendicesAppendix i - Commonwealth Legislation Relevant to CentrelinkEnabling LegislationCommonwealth Services Delivery Agency Act 1997

Legislation Conferring Functions on CentrelinkCommonwealth Services Delivery Agency (Consequential Amendments) Act 1997

Social Security Act 1991

Student Assistance Act 1973

Employment Services Act 1994

Aged Care Act 1997

Disability Discrimination Act 1992

Child Care Act 1972

Veterans’ Entitlements Act 1986

Farm Household Support Act 1992

Child Support (Assessment) Act 1989

Child Support (Registration and Collection) Act 1988

Re-establishment and Employment Act 1945

Defence (Re-establishment) Act 1965

Disability Services Act 1986

Gift Duty Assessment Act 1941

Health Insurance Act 1973

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

National Health Act 1953

ComplianceData Matching Program

(Assistance and Tax) Act 1990

Crimes Act 1914

Financial AccountabilityFinancial Management and Accountability Act 1997

Land Acquisition Act 1989

People ManagementPublic Service Act 1922

Public Service Regulations and Determinations

Occupational Health and Safety (Commonwealth Employment) Act 1991

Safety, Rehabilitation and Compensation Act 1988

Workplace Relations Act 1996

Centrelink Development Agreement 1997–1998

Centrelink Development Agreement 1999–2002

Public Service Commissioner Guidelines: Managing Workplace Diversity

Racial Discrimination Act 1975

Sex Discrimination Act 1984

Disability Discrimination Act 1992

Commonwealth Disability Strategy (Office of Disability)

Human Rights and Equal Opportunity

Commission Act 1986

Superannuation Act 1922

Superannuation Act 1976

Superannuation Act 1990

Long Service Leave (Commonwealth Employees) Act 1976

Maternity Leave (Commonwealth Employees) Act 1973

Administrative LawOmbudsman Act 1976

Privacy Act 1988

Freedom of Information Act 1982

Acts Interpretation Act 1901

Administrative Decisions

(Judicial Review) Act 1977

Administrative Appeals Tribunal Act 1975

GeneralCommonwealth Electoral Act 1918

Appendix ii-Committees of the BoardCharter 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.

MembershipThe members of the Audit Committee are:

• Mr Robin Marrett (Chairman);• Mr John Thame (Director); and• Dr David Rosalky (Secretary, Department of Family and Community Services).

(Ms Sue Vardon attends meetings as Chief Executive Officer of Centrelink.)

MeetingsMeetings shall be held at least quarterly or more frequently if required.

The Chairman will report to the Board on meetings of the Audit Committee.

ResponsibilitiesThe 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 Technology CommitteeBackgroundBecause of the criticality of Information Technology to the success of Centrelink, the Board has agreed to the establishment of an Information Technology Committee under the following Terms of Reference and noting that the words ‘Information Technology’ for this Committee means: ‘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 Information Technology including:

• the scope, composition and costs of the current Information Technology environment;• the capability of the current Information Technology environment to support the current business of

the agency and issues surrounding this support;• the Information Technology 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.

MembershipThe members of the Information Technology Committee are:

• Ms Christine Gillies (Director and Chair of the Committee);• Mr John Thame (Director);• Dr David Rosalky (Secretary, Department of Family and Community Services); and• Ms Sue Vardon (Chief Executive Officer).

MeetingsThe Committee meets each month.

ResponsibilitiesThe Information Technology Committee’s specific responsibilities are to provide timely advice and direction to the Board in the following areas:

• current and strategic Information Technology issues and their potential impact on the future success of Centrelink;

• the future direction and leadership of Information Technology specifically, the why, what, when and how of outsourcing;

• the capability of the current Information Technology organisation to deal with the rate of change required to achieve Centrelink’s vision and objectives;

• as a reference point for Centrelink’s Information Technology processes; and• as the ‘conscience’ for Information Technology in Centrelink.

Terms of Reference for the Quality Committee of the Board of ManagementBackgroundTo assist in fulfilling its responsibilities to ensure that Centrelink’s functions are properly, efficiently and effectively performed, the Board has recognised the need to broaden its focus on the delivery of quality outcomes. Accordingly, it has decided that the work of the Quality Committee should include people development, customer service and overall organisational performance.

CharterThe Quality Committee has three main objectives. These are:

• establish a framework which 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.

MembershipThe members of the Quality Committee are:

From the Board:

• Mr Philip Pearce (Director and Chair of the Committee);• Mr Robin Marrett (Chairman); and• Ms Sue Vardon (Chief Executive Officer).

Advisers from Centrelink:

• Mr Ross Divett, Deputy Chief Executive Officer;• Ms Carolyn Hogg, General Manager, Gateway;• Mr John Browne, National Manager, Customer Service Improvement (Quality First);• Ms JenniColwill, National Manager, People Management;• Mr Paul Conn, National Manager, Electronic Access Integration; and• Mr Norman Walker, National Manager Service Delivery Project.

In addition, an Area Manager is invited to attend meetings of the Committee when appropriate.

Area of ExpertiseWhere the Committee considers it of benefit, it will seek input and participation from external practitioners and organisations where relevant programs have been successfully established. There are currently two external consultants to the Committee. They are Mr Shane Garland from QANTAS and Mr John Stevens from Dench McClean Associates.

MeetingsMeetings of the Committee are held every six weeks. Reports on the Committee’s work are provided to each meeting of the Board of Management.

ResponsibilitiesThe Quality Committee is responsible for developing a work plan that focuses on the following four key aspects of Centrelink:

• people development;• quality;• customer service; and• performance.

Appendix iii-Internal and External ScrutinyThe Audit Process in 1998–99During 1998–99 Audit and Evaluation 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 of the Board of Management and two non-Executive Board members and met quarterly during the year. A risk assessment-based annual work program was approved by the Audit Committee and it monitored closely the progress of audit work, responses to all internal and external audit findings, the financial statements process, and the control environment.

Audits covered all aspects of operations, including information systems, financial operations and systems and performance within Customer Service Centres, Call Centres, Area Support Offices, Computer Centres and National Support Office. Ad hoc and special investigations as well as upfront assessment of and advice to re-engineering projects were added to the program as required and regular reports were provided to the Committee on progress of Centrelink in addressing Year 2000 issues.

Internal AuditForty four internal audit reports were issued during 1998–99. A number of other reports were issued by the external auditor,(see Australian National Audit Office Activity below).

There were 132 unresolved findings and recommendations at the end of 1997–98 and 147 at the end of 1998–99, and 169were resolved during the year. These numbers reflect both a greatly increased level of audit activity over the equivalent pre-Centrelink level and a very successful model for focusing management attention on resolution of issues identified.

Centrelink management is surveyed about its 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. In the case of reports of the Australian National Audit Office, Australian National Audit Office officers provided the final assessment. The Committee invites relevant managers to present where warranted. The Australian National Audit Office commented positively on this innovative model and its potential use elsewhere.

Australian National Audit Office ActivitySignificant external audits conducted by the Australian National Audit Office that impacted on Centrelink were as follows.

Report No 20, 1998–99, Audits of the Financial Statements of Commonwealth Entities for the Period ended 30 June 1998The Financial Statements for Centrelink for the period ended 30 June 1998 were unqualified.

However, the Australian National Audit Office noted a significant internal control matter concerning asset recording Examination of the asset records revealed that the asset register could not support all asset related figures included in the financial statements. A number of actions have been completed to address these issues.

Report No 30, 1998–99, the Use and Operation of Performance Information in the Service Level AgreementsThe objective of the audit was to establish whether the performance assessment framework specified in the agreements enabled the adequate assessment of achievements under purchaser/provider arrangements entered into by the former Department of Employment, Education, Training and Youth Affairs, the former Department of Social Security and Centrelink.

The audit concluded that, in developing the 1998–99 agreements, all parties had taken account of the lessons learned from the operation of the agreements in the first year. It found that the performance assessment framework in both agreements contained overall program objectives which were linked to agreement objectives. These in turn were linked to services to be delivered and performance indicators and would assist to ensure that both the purchaser and provider can measure the provider’s achievements.

Report No 32, 1998–99, Agency Management of Parliamentary WorkflowThis audit was an across portfolio audit. Its objectives were to ascertain whether agency management of parliamentary workflow was efficient and effective, and whether optimum service was providedto clients. The audit aimed to identify and make recommendations for achieving better practice.

The audit’s overall conclusion was that the agencies reviewed achieved a generally high degree of effectiveness in their coordination and management of parliamentary workflow. Centrelink was identified as ‘better practice’ in its innovative handling of ministerial correspondence.

OmbudsmanIn addition to the FREECALLTM 1800 Customer Feedback line, a valuable strategy for improving customer service is maintaining a constructive relationship with the Ombudsman’s office. Customers who contact the Ombudsman are usually referred to the Customer Service Managers in the local Centrelink offices so that a speedy solution of the problem can be achieved.

A much smaller number of complaints are referred to National Support Office. These cases usually involve issues of general significance in the delivery of a particular benefit. The resolution of matters raised in this way involves close consultation between officers of the Ombudsman’s office and Centrelink staff in the particular customer segment responsible for customer service. Centrelink welcomes the Ombudsman’s monitoring of the development of procedures and systems designed to overcome acknowledged problems.

Centrelink has been pleased to cooperate with the Ombudsman in his preparation of reports relevant to its customers. The Ombudsman is preparing for public release a report on the quality of information provided by Commonwealth agencies about available benefits. This has afforded Centrelink with an opportunity to explain important aspects of its new customer service delivery model including the letter project, the ‘one to one’ service for customers, the ‘life events’ approach, and the electronic service delivery initiatives. The Ombudsman has already agreed that these initiatives should contribute greatly to ensuring that customers access the full range of benefits appropriate to their situation.

Appendix iv-Staffing Overview Summary statements:

Performance Based Pay• In 1998–99, Centrelink paid $160 783 in performance based pay to Senior Executive Service Officers

for 1998–99 performance.• Of the 62 Senior Executive Officers, 47 received performance based pay.

Staff TrainingIn 1998–99 we saw a continuation of the emphasis on service delivery reported last year. Accredited programs for Centrelink’s Customer Service Officers integrating foundation skills and knowledge across Centrelink’s various lines of business were piloted and will be implemented across the service delivery network in 1999. Other accredited programs which provide in-depth skills and knowledge within payments steams were also developed and implemented.

There was a focus on the development of leadership skills with leadership activities undertaken by senior staff nationally and at various levels under local initiative.

In all, a total of $6 134 156 was spent on external training and related activities for the year. This figure does not provide the full picture with the vast bulk of training devoted to ‘technical’ or service delivery issues being undertaken on the job, through in-office trainers using centrally-produced training materials or by self-directed learning using instructional packages, Business Television or computer-based learning.

Centrelink is actively encouraging the use of Team and Individual Learning Plans to focus development on the strategic needs of the organisation. At 30 June 1999 some 48 percent of Centrelink staff had plans in place.

Centrelink has also made a commitment to the use of innovative technology to deliver training to its extended office network. A key strategy is the enhancement of Centrelink’s existing Business Television network through the addition of an interactive capability.

Table 17: Centrelink Staffing

Staff numbers by various employment categories, as at 30 June 1999.

Key to Centrelink Staffing Table: FT Full-time, PT Part-time, PERM Permanent, TEMP Temporary.

ALL CENTRELINK

Classification TOTAL Male Female FT PT PERM TEMP

CEO 1 0 1 1 0 1 0

Centrelink SES 62 34 28 62 0 62 0

Centrelink 4 931 545 386 915 16 924 7

Centrelink 3 4 550 2 065 2 485 4 292 258 4 512 38

Centrelink 2 15 231 4 787 10 444 12 861 2 370 14 073 1 158

Centrelink 1 647 212 435 528 119 293 354

Professional 1 426 77 349 321 105 306 120

Professional 2 298 78 220 251 47 291 7

Information Technology

235 180 55 229 6 235 0

Information Technology Manager

224 171 53 216 8 224 0

Information Technology Technical

7 5 2 7 0 7 0

Public Affairs 1 9 6 3 9 0 9 0

Public Affairs 2 6 3 3 5 1 6 0

Public Affairs 3 2 2 0 2 0 2 0

Trainees/Cadets 12 3 9 12 0 6 6

Total 22 641* 8 168 14 473 19 711 2 930 20 951 1 690

Note: *22 641 includes paid and unpaid permanent and temporary staff.

NATIONAL SUPPORT OFFICE

Classification TOTAL Male Female FT PT PERM TEMP

CEO 1 0 1 1 0 1 0

Centrelink SES 46 24 22 46 0 46 0

Centrelink 4 502 275 227 490 12 498 4

Centrelink 3 865 422 432 832 33 839 26

Centrelink 2 315 130 185 294 21 217 98

Centrelink 1 29 15 14 27 2 16 13

Professional 1 2 0 2 2 0 2 0

Professional 2 4 1 3 4 0 4 0

Information Technology

230 175 55 224 6 230 0

Information Technology Manager

224 171 53 216 8 224 0

Information Technology Technical

7 5 2 7 0 7 0

Public Affairs 1 8 5 3 8 0 8 0

Public Affairs 2 6 3 3 5 1 6 0

Public Affairs 3 2 2 0 2 0 2 0

Trainees/Cadets 3 0 3 3 0 3 0

Total 22 44 1 239 1 005 2 161 83 2 103 141

CALL CENTRE NETWORK

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 0 1 1 0 1 0

Centrelink 4 51 36 15 51 0 51 0

Centrelink 3 354 135 219 339 15 354 0

Centrelink 2 3150 820 2 330 2 478 672 2 768 382

Centrelink 1 39 13 26 24 15 4 35

Professional 1 1 1 0 0 1 0 1

Professional 2 14 2 12 12 3 13 1

Total 3 610 1 007 2 603 2 905 705 3 191 419

AREA EAST COAST NEW SOUTH WALES

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 0 1 1 0 1 0

Centrelink 4 29 20 9 28 1 29 0

Centrelink 3 240 116 124 225 15 240 0

Centrelink 2 865 329 536 737 128 845 20

Centrelink 1 48 23 25 40 8 44 4

Professional 1 23 4 19 21 2 23 0

Professional 2 16 7 9 14 2 16 0

Information Technology

1 1 0 1 0 1 0

Public Affairs 1 1 1 0 1 0 1 0

Total 1 224 501 723 1 068 156 1 200 24

AREA HUNTER NEW SOUTH WALES

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 28 18 10 28 0 28 0

Centrelink 3 217 92 125 195 22 217 0

Centrelink 2 755 230 525 625 130 733 22

Centrelink 1 21 2 19 16 5 10 11

Professional 1 18 4 14 10 8 12 6

Professional 2 17 6 11 15 2 17 0

Total 1 057 353 704 890 167 1 018 39

AREA SOUTH METROPOLITAN NEW SOUTH WALES

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 14 8 6 14 0 14 0

Centrelink 3 145 68 77 141 4 145 0

Centrelink 2 605 193 412 534 71 573 32

Centrelink 1 29 8 21 28 1 12 17

Professional 1 22 3 19 18 4 15 7

Professional 2 15 0 15 12 3 15 0

Total 831 281 550 784 83 775 56

AREA SOUTH WEST NEW SOUTH WALES

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 17 12 5 17 0 17 0

Centrelink 3 153 63 90 142 11 152 1

Centrelink 2 606 150 456 527 79 582 24

Centrelink 1 25 3 22 20 5 9 16

Professional 1 18 4 14 12 6 15 3

Professional 2 17 7 10 12 5 16 1

Total 837 240 597 731 106 792 45

AREA WEST NEW SOUTH WALES

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 24 15 9 24 0 24 0

Centrelink 3 153 75 78 145 8 153 0

Centrelink 2 581 166 415 502 79 566 15

Centrelink 1 21 5 16 17 4 13 8

Professional 1 30 5 25 22 8 17 13

Professional 2 14 2 12 12 2 14 0

Total 824 269 555 723 101 788 36

AREA NORTH AUSTRALIA

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 11 6 5 11 0 10 1

Centrelink 3 83 28 55 82 1 80 3

Centrelink 2 239 54 185 219 20 218 21

Centrelink 1 32 9 23 29 3 6 26

Professional 1 4 0 4 4 0 2 2

Professional 2 9 3 6 9 0 9 0

Total 379 101 278 355 24 326 53

AREA PACIFIC CENTRAL

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 29 16 13 28 1 28 1

Centrelink 3 311 133 178 292 19 310 1

Centrelink 2 1 059 342 717 898 161 1 004 55

Centrelink 1 72 26 46 69 3 29 43

Professional 1 42 5 37 38 4 31 11

Professional 2 21 1 20 17 4 20 1

Total 1 535 524 1 011 1 343 192 1 423 112

AREA BRISBANE QUEENSLAND

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 39 20 19 39 0 39 0

Centrelink 3 277 121 156 256 21 277 0

Centrelink 2 1 076 378 698 957 119 1 012 64

Centrelink 1 53 21 32 45 8 23 30

Professional 1 45 9 36 29 16 34 11

Professional 2 26 7 19 21 5 26 0

Trainees/Cadets 1 1 0 1 0 1 0

Total 1 518 558 960 1 349 169 1 413 105

AREA NORTH QUEENSLAND

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 0 1 1 0 1 0

Centrelink 4 19 7 12 18 1 18 1

Centrelink 3 180 62 118 174 6 177 3

Centrelink 2 547 136 411 488 59 482 65

Centrelink 1 20 7 13 18 2 8 12

Professional 1 21 4 17 15 6 16 5

Professional 2 14 3 11 14 0 14 0

Information Technology

1 1 0 1 0 1 0

Trainees/Cadets 6 1 5 6 0 2 4

Total 809 221 588 735 74 719 90

AREA SOUTH AUSTRALIA

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 0 1 1 0 1 0

Centrelink 4 42 29 13 42 0 42 0

Centrelink 3 353 167 186 333 20 352 1

Centrelink 2 1 045 354 691 856 189 1 000 45

Centrelink 1 48 18 30 39 9 26 22

Professional 1 44 9 35 34 10 38 6

Professional 2 31 9 22 26 5 30 1

Trainees/Cadets 2 1 1 2 0 0 2

Total 1 566 587 979 1 333 233 1 489 77

AREA TASMANIA

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 15 12 3 14 1 15 0

Centrelink 3 178 87 91 158 20 176 2

Centrelink 2 503 198 305 407 96 454 49

Centrelink 1 19 10 9 14 5 8 11

Professional 1 20 5 15 17 3 10 10

Professional 2 9 3 6 8 1 9 0

Information Technology

1 1 0 1 0 1 0

Total 746 317 429 620 126 674 72

AREA NORTH CENTRAL VICTORIA*

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 0 1 1 0 1 0

Centrelink 4 24 17 7 24 0 24 0

Centrelink 3 258 113 145 238 20 258 0

Centrelink 2 985 358 627 828 157 957 28

Centrelink 1 49 12 37 40 9 36 13

Professional 1 30 6 24 23 7 23 7

Professional 2 26 3 23 21 5 25 1

Total 1 373 509 864 1 175 198 1 324 49

AREA NORTH VICTORIA*

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink 4 3 2 1 3 0 3 0

Centrelink 3 16 9 7 12 4 16 0

Centrelink 2 38 17 21 33 5 33 0

Centrelink 1 5 2 3 5 0 5 0

Information Technology

1 1 0 1 0 1 0

Total 63 31 32 54 9 58 5

AREA SOUTH EAST VICTORIA*

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 0 1 1 0 1 0

Centrelink 4 23 11 12 23 0 23 0

Centrelink 3 207 99 108 200 7 207 0

Centrelink 2 815 288 527 713 102 715 100

Centrelink 1 41 11 30 39 2 18 23

Professional 1 28 3 25 23 5 17 11

Professional 2 20 6 14 16 4 19 1

Information Technology

1 1 0 1 0 1 0

Total 1 136 419 717 1 016 120 1 001 135

AREA WEST VICTORIA*

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 26 19 7 26 0 26 0

Centrelink 3 238 126 112 227 11 238 0

Centrelink 2 847 306 541 735 112 840 7

Centrelink 1 23 8 15 20 3 14 9

Professional 1 30 6 24 23 7 21 9

Professional 2 17 8 9 13 4 17 0

Total 1 182 474 708 1 045 137 1 157 25

AREA WEST AUSTRALIA

Classification TOTAL Male Female FT PT PERM TEMP

Centrelink SES 1 1 0 1 0 1 0

Centrelink 4 35 22 13 35 0 35 0

Centrelink 3 322 138 184 301 21 321 1

Centrelink 2 1 200 338 862 1 030 170 1 074 126

Centrelink 1 73 19 54 38 35 12 61

Professional 1 48 9 39 30 18 30 18

Professional 2 28 10 18 25 3 27 1

Total 1 707 537 1 170 1 460 247 1 500 207

Note: *During June 1999, our Victorian Areas were in transition to a new structure. These staffing figures reflect the state of the organisational structure taken as at 30 June 1999.

Table 18: Senior Executive Service Information

SENIOR EXECUTIVE SERVICE (SES) STAFFING LEVELS AT 30 JUNE 1999

Male Female Inoperative Female

Inoperative Male

SES Band 3 1 - - -

SES Band 2 4 1 - -

SES Band 1 29 25 2 -

All SES Classifications

34 26 2 -

INTER-AGENCY MOBILITY

Transfer from Other Department/Agency

Commenced work in the APS

SES Band 3 - -

SES Band 2 - -

SES Band 1 3 3

All SES Classifications 3 3

INTER-AGENCY MOBILITY

Within National Support Office

National Support Office to Area Management

Area Management to National Support Office

Within Area Management

SES Band 1 x4 SES Band 1 x1 SES Band 1 x1 SES Band 1 x1

SES Band 2 x1

GAINS AND LOSSES BETWEEN 1 JULY 1998 AND 30 JUNE 1999

Appointed to SES SES Band 1 x7

Transfer from other Departments/Agencies SES Band 1 x3

Temporary transfer from other Departments/Agencies

Nil

Transfer to different Departments/Agencies Nil

Retired or resigned SES Band 1 x4

Acting in SES for 3 months or more SES Band 1 x8

Table 19: Equal Employment Opportunity*

Key to Centrelink Equal Employment Opportunity (EEO) Table: 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.

APPOINTMENT TO CENTRELINK BY EEO* CATEGORY 1998–99

Total† Female ATSI PWD NESB1 NESB2

Area Hunter New South Wales

39 28 - 3 - 3

Area East Coast New South Wales

35 16 - 1 7 3

Area West New South Wales

17 11 - - 4 5

Area South West New South Wales

24 17 - 1 3 2

Area South Metro New South Wales

56 39 6 3 - 4

Area Pacific Central

85 53 3 4 2 5

Area Brisbane Queensland

38 21 - 1 1 8

Area North Queensland

46 33 7 2 - 7

Area East Victoria 17 11 - - - -

Area North 2 1 - - - -

Victoria

Area South Victoria

8 4 - - - -

Area West Victoria

13 11 1 1 - -

Area West Western Australia

48 34 3 4 - 4

Area South Australia

29 17 2 1 - 6

Area Tasmania 16 12 6 - - 3

Area North Australia

19 11 1 2 - 2

Call Centres 575 434 8 13 30 36

Total Areas 1 067 753 37 36 47 88

Total National Support Office

156 65 1 5 27 25

Total Appointments

1 223 818 38 41 74 113

EEO groups as % of total appointments

- 66.9 3.1 3.4 6.0 9.2

Total staff as at 30 June 1999

20 951 13 220 806 1 235 1 049 2 566

EEO groups as % of total staff

- 63.3 3.9 5.9 4.9 12.1

Notes:

*Now referred to as Workplace Diversity.†Table contains full-time and part-time permanent staff.

EEO GROUPS AS A PERCENTAGE OF CLASSIFICATION

Classification Group

Salary Range

Female ATSI PWD NESB1 NESB2

Centrelink SES More than $69 251

45.6 - 7.0 3.5 5.3

Centrelink 4 $52 729–$70 914

39.7 0.3 5.5 2.6 9.9

Centrelink 3 $39 713–$50 636

52.1 2.5 7.3 3.5 12.3

Centrelink 2 $31 946–$39 712

67.8 4.2 5.6 5.0 12.1

Centrelink 1 $14 870–$31 103

61.9 6.8 7.0 3.8 11.6

Professional $29 909–$70 914

77.1 0.2 4.2 5.2 16.7

Information Technology

$34 480–$70 914

23.0 - 2.6 23.0 15.0

Public Affairs $36 737–$72 180

35.3 - 11.8 - 11.8

Trainees/Cadets $8 414–$31 303

71.4 85.7 - - 28.6

Appendix v-Consultancy 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.

It is Centrelink 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 time frame 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 the Commonwealth and Centrelink’s procurement policies, guidelines and protocols.

Explanatory Notes for Table 20The following legend serves as an explanatory guide to the data contained in Table 20:

‘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 consultants engaged during the 1998–99 financial year where the amount paid was $2000 or greater was 180. They are summarised against two broad categories being General Consultancies and Human Resource Consultancies. There were 121 General Consultancies with a total committed value of $10 113 174.70 and 59 Human Resource Consultancies with a total committed value of $934 409.59. The total amount paid for consultancies was $7 011 157.28.

Complete details for consultancy services received during the year 1 July 1998 to 30 June 1999 where the total committed value did not exceed $2000 in both General and Human Resources Services Consultancy categories are available from Centrelink, on request.

Table 20: Payments of $2000 or above made to general and Human Resource Consultants 1 July 1998 to 30 June 1999

CONSULTANCY SERVICE

Consultant Consultancy Service Provided

How Engaged

Justification Code

1998-99 Amount Paid to Consultant

$

General Consultancies (Total Value)

$

Human Resources Consultancies (Total Value)

$

Acumen Alliance

System Integration Review

R/T A 21 024.00 21 024.00

Acumen Alliance

Quality Assurance on

R/T C 176 176 000.00

Info link (Financial

Management System)

000.00

Acumen Alliance

System Process Mapping Analysis

of current

business processes

R/T A 22 800.00 22 800.00

Acumen Alliance

Reconciliation of information

required for

Centrelink’s Financial

Statements

R/T A 8 670.00 8 670.00

AMR Quantum Market testing of New Zealand Migrant

Waiting Period

R/T A 50 000.00 50 000.00

Annexus Pty Ltd

Provide professional and high level

strategic guidance

and direction on

use of the Internet

R/T C 40 163.00 48 000.00

Anutech Pty Ltd

Develop statistical model for the

Medical Assessment

Project

R/T B 6 393.75 Standing Offer

AR Liband & Assoc Pty Ltd

To develop and facilitate a creative

R/T D 6 492.00 6 492.00

planning process to

assist the progress of the

creation of independence

in the quality arena

throughout Centrelink

Arplan Pty Ltd Production of a cost model for future

projection of Information

Technology service

cost (Phase 1)

R/T D 24 300.00 24 300.00

Arplan Pty Ltd Production of a cost model for future

projection of Information

Technology service

cost (Phase 2)

R/T D 5 500.00 12 000.00

Assure Pty Ltd Activity Based Costing Development and

Financial Management

R/T C 168 570.00

201 600.00

AT & G J Lee Partnership

Provision of Telephone Professional Training

R/T A 3 100.00 3 100.00

Australian Institute of Advance Leadership

Visionary Leadership Event Program

R/T D 37 500.00 37 500.00

Australian Institute of Advance Leadership

Leadership Development

R/T D 50 450.00 50 450.00

Australian Institute of Advance Learning

Leadership Program

R/T A 17 100.00 17 100.00

Australian Institute of Management

Time Management Training

R/T A 3 295.00 3 295.00

Australian Institute of Advance Learning

Leadership Development

R/T D 3 800.00 3 800.00

Barclay Consulting

Conduct a planning day

R/T C 3 884.00 3 884.00

Barry Leith head & Associates

Assessment of Individual Learning

Plans and propose

strategy for

addressing needs

P/T D Nil 9 600.00

BB Professional Services*

Project to obtain Customer Feedback

on Current and

Proposed Review

Processes for Parenting

Payment (single)

10 000.00 10 000.00

BB Professional Services*

Evaluation of new look, new contents

Age Pension News

Benchmarking Link-up Australia

Prepare a Benchmarking Strategy paper

for presentation to

the Centrelink Board

R/T D 11 000.00 28 000.00

Biztrac, Edith Cowan University

Leading Change Panel – Standing Offer for the provision

of training services

in the field of

Leadership and Change

Management as required

P/T A, D Nil Standing Offer

Brian Sweeney & Associates*

Evaluate the Delivery Mechanism for the Family Assistance Tax Reform Measures

Brian Sweeney & Associates

Evaluation of Call Centre Research

R/T A 50 000.00 50 000.00

Brian Thomas Strategic planning and Leadership Training

R/T D Nil 9 000.00

Bridan Projects Construction Management

Services for

internal fitout

Rockingham

R/T D 150 868.00

150 868.00

Bright Star Information Technology

To devise a service – based costing

R/T D Nil 40 000.00

Group Pty Ltd solution to be implemented within Centrelink’s financial system

Note: *These consultancies were engaged under partnership arrangements between the Department of Family and Community Services and Centrelink using the Centrelink Market Research Panel Contract. Specific details of these consultancies are contained in the Department of Family and Community Services annual report.

Consultant Consultancy Service Provided

How Engaged

Justification Code

1998-99 Amount Paid to Consultant

$

General Consultancies (Total Value)

$

Human Resources Consultancies (Total Value)

$

Carlton Consulting Group

Leading Change Panel – Standing Offer for the provision of training services in the field of Leadership and Change Management as required

P/T A, D Nil Standing Offer

Cibourne Pty Ltd

Project Management Services

R/T D Nil 192 000.00

Colin MacPherson

Strategic financial reporting direction

R/T A 37 022.50 37 022.50

Computer Power Education

Project Management training

R/T A, D 4 510.00 4 510.00

Computer Power Education

Project Management training

R/T A, D 4 510.00 4 510.00

CSC Australia Pty Ltd

Implement Knowledge management process improvement

R/T A 15 000.00 15 000.00

Customer Connection

Training on customer service

P/T A 28 300.00 28 300.00

skills

Dench McClean Associates

To provide consultancy services in relation to conducting an ‘Environmental Scan’ and the facilitation of a workshop

R/T D 2 300.00 2 300.00

Dialogue Consulting Pty Ltd

R/T A Nil 7 800.00

Dunhil Management Services

P/T D 3 000.00 5 000.00

Dunke Pty Ltd

R/T A, C 11 621.00 12 000.00

Dunke Pty Ltd

R/T C 45 900.31 65 000.00

D. Rudd and Partners

Electrical Engineering Services

R/T A 3 600.00 Standing Offer

Ernst and Young Pty Ltd

Development of Activity Based

Costing model

R/T A, D 34 000.00 34 000.00

Eureka Strategic Research

Research and pre test for Employer

Contact Unit

and Employer

Hotline Campaign

R/T A, C 42 690.00 42 690.00

Eureka Strategic Research

To conduct an Evaluation of the

Financial Information

Services Seminar

Stage 2

R/T A, C 68 290.00 68 290.00

Eureka Strategic Research

Evaluation of Financial Information

R/T A, C 72 750.00 72 750.00

Service Communication

Strategy

Fellows, Medlock & Associates

Facilitation of Strategic Development

Conference

R/T D Nil 10 500.00

Figura Consulting Pty Ltd

Consultancy on Contestability issues

R/T D 14 880.00 14 880.00

Gartner Group

Consultancy Service to provide independent

Information Technology

advisory services

R/T A, C 42 000.00 42 000.00

Global Workplace Solutions

Leading Change Panel—Standing Offer

for the provision of

training services in

in the field of

Leadership and Change

Management as required

P/T A, D Nil Standing Offer

Hay Management Group

Development of performance prescriptors to

assist in assessing

performance against

Centrelink’s Shared

Behaviors

R/T D 255 000.00

255 000.00

Health Services Australia

Provision of medical consultation

R/T A, C, D Nil 150 000.00

services

for employees

Horn Information Technologies

Mainframe Software Management

R/T D 7 500.00 7 500.00

Ian Dove Architect

Fitout Design— Nundah

R/T D Nil 4 500.00

Ian Dove Architect

Project Management Chermside

R/T D Nil 7 750.00

Ian Dove Architect

Fit out Design— Stones Corner

R/T D Nil 15 000.00

Ian Dove Architect

Project Management Stones Corner

R/T D Nil 15 000.00

IEDEX Pty Ltd

Develop and distribute 360

Degree Feedback

Questionnaire

R/T A, C, D 11 830.00 11 830.00

IEDEX Pty Ltd

Develop and distribute 360

Degree Feedback

Questionnaire

P/T A, C, D 58 317.20 68 000.00

IEDEX Pty Ltd

Develop and distribute360 Degree Feedback

Questionnaire for

senior officers in

management positions

R/T A, C, D Nil Standing Offer

IEDEX Pty Ltd

Develop and distribute 360

Degree Feedback

Questionnaire

R/T B 5 252.00 5 252.00

Impact Human Performance Technologie

Develop effective communications

R/T D 13 416.00 13 416.00

s

In focus Data Solutions

Customization of Microsoft database

P/T A 3 000.00 11 000.00

Integrated Space Pty Ltd

Architectural Design and Drafting Services

R/T A 3 005.00 Standing Offer

Integrated Space Pty Ltd

Architectural Design and Drafting Services

R/T A 44 089.50 Standing Offer

Interact Technology Group Pty Ltd

Alternative design and production of a prototype HTML

interface design for

revised Balanced

Scorecard application

R/T A 7 000.00 7 000.00

Interactive Multimedia Pty Ltd

Design and production of a prototype HTML interface design for

revised Balanced

Scorecard application

R/T A 6 880.00 7 000.00

John Little & Associates

Leading Change Panel—Standing Offer for the provision

of training services

in the field of Leadership

and Change Management

as required

P/T A, D Nil Standing Offer

Julia Schofield —JSC Australia

Development of multimedia

Presentation

R/T D 95 703.00 95 703.00

Kelstrom Pty Ltd

Assessment of lighting system

R/T D 7 031.00 7 031.00

Knight Frank Price Waterhouse

Year 2000 Compliance of the embedded

technologies of

Centrelink buildings

throughout Australia

R/T D 65 060.00 191 583.00

Le Quesne & Associates

Mechanical Engineering Services

R/T A 11 851.00 Standing Offer

Learning Excellence Training Services

R/T D 3 100.00 3 100.00

Leo Carmody

Managing Underperformance

R/T D 2 000.00 2 000.00

LSA Quality Pty Ltd

To provide consultancy

services in relation

to the facilitation

of the Quality

Adviser Program

R/T D 391.00 11 000.00

LSA Quality Pty Ltd

Development for Teams Trainers

R/T A 4 585.00 4 585.00

Macquarie House Pty Ltd

Leadership Transitions Workshop

R/T D 3 500.00 3 500.00

Macquarie House Pty Ltd

Design and develop workshop Manager

Leadership Transitions

R/T D 6 125.00 6 125.00

Macquarie University’s Research &

Consultancy

Structured Conflict Prediction Workshop

R/T D 16 800.00 16 800.00

Company

Maggie Cox & Associates

Provision of Executive and Senior Management

Development Program

R/T A 5 600.00 25 240.00

Management Technology Education Difficult People

R/T D 3 500.00 3 500.00

Managing Work & Family

Provision of information for

the Eldercare

Information Kit

R/T A 5 500.00 5 500.00

Mark Dignam & Associates

Pre Test of Seasonal Work Preclusion

Period Poster

and Brochure

R/T A 20 000.00 20 000.00

Market Access*

Evaluation of

parent support

groups for customers

on independent

homeless rate

Market Access

Evaluation of the Forms and Information

Gathering Strategy

R/T A 150 000.00

150 000.00

Market Attitude Research Services

Pretest the March 1999 Edition of the Newsletter

Employment Update

R/T A 15 000.00 15 000.00

Note: *These consultancies were engaged under partnership arrangements between the Department of Family and Community Services and Centrelink using the Centrelink Market Research Panel Contract. Specific details of these consultancies are contained in the Department of Family and Community Services annual report.

Market Attitude Research Services

Evaluation of the Combined Claim Form (Purple Pack)

R/T A 36 075.00 36 075.00

Market Attitude Research Services

Evaluation of Commonwealth Seniors Health Card

claim form

R/T A 20 150.00 20 150.00

Market Solutions(Australasia Pty Ltd)

Evaluate impact of Financial Information Services Seminars

A, C 11 242.00 11 242.00

Market Solutions(Australasia Pty Ltd)

Market Testing Employment Update—June 1999 edition

A 15 000.00 15 000.00

Market Solutions(Australasia Pty Ltd)*

Market testing of Home and Residences Choices booklet

Mercadier Development of Evaluation handbook

P/T D Nil 80 000.00

Millar Watson Architects Architectural planning and construction supervision

R/T D 20 000.00 20 000.00

Moreland Group Leading Change Panel—Standing Offer

for the provision of

training services in

the field of Leadership

and Change Management

as required

P/T A, D Nil Standing Offer

New Focus Consultancy on client satisfaction research

R/T D 27 771.00 27 771.00

Newton WaymanResearch Pre Testing of a Press Advertisement

—re changes to

payment cycles

R/T A 9 775.00 9 775.00

Newton WaymanResearch Post Evaluation of Static display

(Disabilities)

R/T A 11 000.00 11 000.00

Note: *These consultancies were engaged under partnership arrangements between the Department of Family and Community Services and Centrelink using the Centrelink Market Research Panel Contract. Specific details of these consultancies are contained in the Department of Family and Community Services annual report.

Newton WaymanResearch

Market testing of Statement Style

Letters Flyer

R/T A 17 700.00

17 700.00

Newton WaymanResearch

Market testing of two ABSTUDY

Claim Forms and an

Information Booklet

R/T A 22 680.00

22 680.00

Newton WaymanResearch

Pre Testing Payment Cycles Brochure

R/T A 27 900.00

27 900.00

Niki Ellis& Associates

Research of Customer Aggression

R/T A 37 000.00

41 600.00

NIS Australia Extension of contract for programming

design services

R/T A, D 17 235.00

17 235.00

On Purpose Managerial Coaching R/T D 14 000.00

15 000.00

Origin Consulting Group Pty Ltd

Managing Change workshop

R/T A, D 4 586.59 4 586.59

Origin Consulting Group Pty Ltd

Managing Change workshops

R/T A 6 100.00 6 100.00

Orima Research Pretest Youth and Students Magazine

R/T A 14 900.00

14 900.00

Orima Research Pre testing of ABSTUDY Claim Form

R/T A 18 300.00

18 300.00

Orima Research Pretest of Mutual Obligation Publicity

material—1998

R/T A 19 600.00

19 600.00

Orima Research Pretest of Mutual Obligation Publicity

material—1999

R/T A 19 950.00

19 950.00

Orima Research Market Testing of Carer Allowance and

Payment Claim

Processes and Forms

R/T A 42 080.00

42 080.00

Outcome Management Services

Review of Centrelink’s Balanced Scorecard

R/T C Nil 3 000.00

Parity People Project planning and management

R/T A 51 890.50

140 000.00

Path Consulting Team Building R/T A 6 230.00 9 345.00

Paul Hannah Consulting

Training Information Technology Skills

R/T D 5 084.00 5 084.00

Phillips Fox Consulting Pty Ltd

Advice on duty of care for service delivery model

R/T D 2 500.00 2 500.00

Price Waterhouse Coopers Pty Ltd

Risk Management Plan

P/T A, D 71 642.00

72 000.00

Price Waterhouse Coopers Pty Ltd

Development of Team Leader Training

R/T D 25 200.00

25 200.00

Price Waterhouse Coopers Pty Ltd

Assist on installation of Agency Banking

R/T A 100 829.00

100 829.00

PriceWaterhouse Coopers Pty Ltd

Leading Change Panel—Standing

Offer for the provision

of training services in

the field of Leadership

and Change Management

as required

P/T A, D Nil Standing Offer

Prospect Management Consulting

Facilitate Management workshop/conference

R/T D 10 000.00

10 000.00

PSI Consulting Pty Ltd

Replacement National Contracts

R/T A, D 24 000.00

24 000.00

PSI Consulting Pty Ltd

Infrastructure Baseline Costs

R/T D 120 500.00

175 000.00

PSR Software Pty Ltd

System analysis services to

define reporting

requirements

R/T A Nil 25 000.00

PSR Software Pty System analysis R/T A 36 40 000.00

Ltd services to establish

technical user

requirements for

the Performance

Data Management

Systems project

531.00

Public Service and Merit Protection Commission

Provision of investigative and counseling services of staff grievances

R/T C 32 550.00

32 550.00

Quadrant Research Services

Pre Testing of Disability R/T Connections Magazine

R/T A 6 500.00 6 500.00

Quadrant Research Services

Conduct of an evaluation of a Web Post Office Trial with Youth Allowance

R/T A A 29 950.00

A 29 950.00

Quasar Professionals

Recruitment for Information Technology

Personnel

R/T A, D 75 000.00

150 000.00

RD Rogers Engineers Pty Ltd

Structural Engineering Services

R/T A 480.00 Standing Offer

Reengineering Australia

Planning Facilitation R/T D 4 875.00 4 875.00

Rengain Consulting

Verification of mapping of General Ledger

module to Treasury

module on the

Financial system

R/T A 9 840.00 9 840.00

Research Advantage

Market Research to refine and evaluate

the Social Security

Fraud and Compliance

Communication Strategy

R/T A 98 000.00

98 000.00

RMIT Business Accrual Accounting Training

A 2 550.00 2 550.00

Robyn Taylor Team Training

Training Team skills D 20 660.00

20 660.00

Ross Begbie & Associates Pty Ltd

Leading Change Panel —Standing Offer for the provision of training

services in the field

of Leadership and

Change Management

as required

A, D* 87 129.04

Standing Offer

Note: *$13 017.00 was paid to Management and Technology. Management and Technology is an associated company of Ross Begbie and Associates. This payment was made as an administrative oversight.

Roy Morgan Research Centre Pty Ltd

Customer Research into Social Work Services

R/T A 22 427.00 22 427.00

Roy Morgan Research Centre Pty Ltd

Customer satisfaction research for Customer Service Centre Network,

Call Centre Network and

International Services,

and Community

satisfaction research

P/T A, B, C 1 473 652.59

2 441 879.00

Seven Dimensions Pty Ltd

To provide course development and facilitation for the

leadership team

training program

R/T D 9 986.00 9 986.00

Seven Dimensions Pty Ltd

To provide consultancy services for production,

P/T D 25 000.00 25 000.00

delivery of a series of

training videos on ‘The

Best in Customer Service’

Sicore International

Staff Opinion Survey Analysis

R/T C 5 000.00 45 315.00

SMS Consulting Group Pty Ltd

Project Management and business analysis

services combined with

SAP knowledge—for

the Performance

Data Management

System project

R/T D 86 175.00 100 000.00

Surgam Pty Ltd

Facilitation services for a workshop on

the Strategic Assessment

of Business Risks

R/T D Nil 12 600.00

Sutton Consulting

Review of common use arrangement

for debt collectors

R/T A 5 970.00 48 800.00

Synthesys Strategic Consulting Pty Ltd

Manage scenario planning exercises on specific subject matters

R/T D 6 007.20 40 000.00

(including the transfer

of scenario planning

skills and knowledge of

concepts to participants

and Centrelink staff) and

provide strategic advice

to Centrelink

Tactics Consulting

Information Mapping Training

R/T A, D 2 640.00 2 640.00

Tactics Consulting

Information Mapping Training

R/T A, D 7 410.00 7 410.00

Tactics Consulting

Provide Information Mapping service for

conversion of manuals

to online format

R/T D 70 017.00 84 202.00

TARP Australasia Pty Ltd

Revision of Customer Feedback Categories used by Centrelink to

code Customer Feedback

R/T D 29 358.20 29 358.20

TARP Australasia Pty Ltd

Consultancy services to assist with the benchmarking of

Centrelink Call

R/T D 112 837.45

190,000.00

Centers

Team Based Strategies Pty Ltd

Role clarification workshop for Centrelink Call

Leadership Team

R/T D 4 400.00 4 400.00

Team Systems Pty Ltd

Team Building Training

P/T A 10 000.00 10 000.00

Team Systems Pty Ltd

Leading Change Panel—Workshop in

the effectiveness of

current operations in

an Area Support Office

R/T A, D† 12 208.00 14 375.00

Note: †These payments were made to Team Systems Pty Ltd as a member of the Upton Martin Consortium, under the Leading Change Panel standing offer arrangements for the provision of training services in the field of Leadership and Change Management.

Team Systems Pty Ltd

Leading Change Panel—Training the

Area Executive to

analyses the overall

business strategy

R/T A, D† 23 382.40 33 000.00

Tillinghast-Towers Perrin

Actuarial assessment of compensation

insurance

R/T C 18 500.00 24 000.00

TVS Partnership

Project Management Services—Strathpine

R/T D Nil 11 500.00

TVS Partnership

Fit out Design Services—Strathpine

R/T D Nil 11 500.00

University of South Queensland

Leading Change Panel—Standing

Offer for the provision

of training services in

the field of Leadership

and Change Management

as required

P/T A, D Nil Standing Offer

University of Canberra and Canberra Institute of Technology

Leading Change Panel—Standing Offer for the provision of training services in the field of

Leadership and

Change Management

P/T A, D Nil Standing Offer

Note: †These payments were made to Team Systems Pty Ltd as a member of the Upton Martin Consortium, under the Leading Change Panel standing offer arrangements for the provision of training services in the field of Leadership and Change Management.

University of Western Australia

Provision of Staff Satisfaction Research

R/T C Nil 30 000.00

Upton Martin Consortium

Leading Change Panel—Standing Offer

for the provision of

training services in the

field of Leadership and

Change Management

as required

P/T A, D 5 980.00 Standing Offer

Upton Martin Consortium

Guiding Coalition Coaching Program

R/T A, D Nil 83 200.00

Value Creation Group Pty Ltd

Strategic planning and concepts

R/T A 25 459.29 40 000.00

Value Creation Group Pty Ltd

Implementation of Value Creation process

R/T D 1 080 609.26

2 770 789.00

Vantage Point Consulting Pty Ltd

Leading Change Panel —Standing Offer for the provision of training services in the field

of Leadership and

Change Management

P/T A, D 22 937.00 Standing Offer

as required

Vasiliki Nihas & Associates

Provision of multimedia based training module

on intercultural

communication

R/T D Nil 20 000.00

Wallis Consulting Group

The Pre Test of the Future Directions

Magazine—1999 Edition

R/T A 30 000.00 30 000.00

William M Mercer Pty Ltd

Development of Choice of

Superannuation

Options

R/T A, D 53 150.00 53 150.00

Woods Styles Australia

Employee Assistance Program

P/T A 95 310.00 95 310.00

Worthington Di Marzio

Evaluation of Centrelink ATSI products

R/T A 50 000.00 50 000.00

Worthington Di Marzio

Market testing of Letters Improvement

Project

R/T A 9 000.00 9 000.00

Worthington Di Marzio

Evaluation of Carer Communication Strategy

R/T A 30 000.00 30 000.00

Write People

Professional writing training

P/T A, D 7 700.00 7 700.00

Yann Campbell Hoare Wheeler

Pretest Statement Style Letters Trial

R/T A 33 215.00 33 215.00

Yann Campbell Hoare Wheeler

National customer satisfaction research

R/T D 39 850.00 39 850.00

for November 1998

Yann Campbell Hoare Wheeler

Annual review of Customer Charter

P/T A, C Nil 40 650.00

Yann Campbell Hoare Wheeler

Pretest the Payment Cycles Letters

R/T A 50 000.00 50 000.00

Yann Campbell Hoare Wheeler

National customer satisfaction research

for May 1999

P/T A, B, C 56 620.00 65 350.00

Appendix vi-Advertising and Market ResearchThis appendix lists expenditure to be reported under the Commonwealth Electoral Act 1918.

Table 21: Advertising and Market Research Expenditure

MEDIA ADVERTISING ORGANISATIONS—MASTER ADVERTISING AGENCIES WHICH HAVE HAVE PLACED CENTRELINK ADVERTISING IN THE MEDIA. THIS COVERS BOTH CAMPAIGN AND NON-CAMPAIGN ADVERTISING

Payee Amount Purpose

National Indigenous Radio Service

$50 000 Radio campaign targeting Indigenous people

AIS Media $2 405 263 Advertising for Fraud & Compliance campaign

Radiowise $57 700 Radio campaign for the Retirement Assistance

TMP Worldwide $7 081 Press advertising for the Retirement Assistance

Advertising Investment Services $273 964 Press advertising for the Commonwealth

Seniors Health Card

AIS Media $6 402 Advertising for Youth Allowance

TMP Worldwide $53 663 Advertising for Pension Bonus Scheme

AIS Media $55 000 Advertising for Pension Bonus

Scheme

Harry M Miller $25 000 Advertising for Financial Information Service

Royal Blind Society $21 148 Audio versions of Age Pension News

TMP Worldwide $3 404 Press advertising for What to do When

You Start Work

AIS Media $12 790 Advertising for Seasonal Workers’

Preclusion Period

ADVERTISING AGENCIES AND OTHER AGENCIES WHICH HAVE DEVELOPED ADVERTISING CAMPAIGNS

Payee Amount Purpose

BAM-SSB $125 970 Campaign for Fraud & Compliance

Radio for the Print Handicapped $52 138 General information for the print handicapped

Independent & General $4 080 Radio campaign re Carers Payment, targeting

multicultural audiences

National Information Community Awareness Network

$25 000 Campaign for International Day for people with Disabilities

The Big Issue Australia $1 530 Press advertising for Rent Assistance for Sharers

Independent & General $56 160 Dissemination of Centrelink information to

the ethnic community

Special Broadcasting Service $180 450 Provision of multicultural broadcasting services

Country Wide Publications $5 160 Advertising for Youth Allowance

Vibe Australia $3 000 Advertising for Youth Allowance

DIRECT MAIL ORGANISATIONS

Payee Amount Purpose

Canberra Mailing $35 619 Sorting and mailout of agency material

Salmat Mailing Services $116 743 Sorting and mailout of agency material

Toll Logistics $328 118 Sorting and mailout of agency material

Mail Management $92 885 Sorting and mailout of agency material

Lane Print Group $ 19 698 Sorting and mailout of agency material

Prime Prospects $ 34 305 Sorting and mailout of agency material

Canprint $ 10 845 Sorting and mailout of agency material

National Mail & Marketing $ 35 187 Sorting and mailout of agency material

PMP Communications $1 038 783 Sorting and mailout of agency material

Bounty Services $ 45 520 Sorting and mailout of agency material

Appendix vii-PrivacyLiaison 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 five cases after making preliminary inquiries under section 42 of the Privacy Act 1988 and in other cases being handled more effectively.

Complaints referred by the Privacy CommissionerThe Privacy Commissioner formally referred nine cases to Centrelink during 1998–99 and after receiving reports from Centrelink has finalised nine 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 1998–99, 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 privacy Commissioner 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 1998–99, there were 1076 privacy incidents investigated. These investigations resulted in 28 per cent of incidents being substantiated as a breach of privacy or confidentiality.

Table 22: Investigation Outcomes 1998–99

FINALISED SUBSTANTIATED SUBSTANTIATED - FAULT OF EXTERNAL AGENCY

UNSUBSTANTIATED – INFORMATION WITHDRAWN

1 076 301 3 772

100.0% 28.0% 0.3% 71.7%

Included in the privacy incidents investigated are the serious cases of information fraud. There are criminal sanctions imposed by provisions of the Social Security Act 1991, the Student & Youth 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’. The criteria used require an element of benefit or financial gain, or of evading a liability to, the Commonwealth as an object of the perpetrator. In most cases one of the above elements would be present.

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.

Table 23: Types of Incidents Reported 1998–99

TYPES OF INCIDENTS REPORTED 1998-99 NUMBER

Information Privacy Principles 1–3 Privacy Act 1988

14

Information Privacy Principles 4–8 Privacy Act 1988

43

Information Privacy Principles 9–11 Privacy Act 1988

8

Browsing—Unauthorised Access 398

Browsing—Unauthorised Disclosure 372

Unauthorised Use 131

Mail House Error 31

Misdirected Mail—Officer Error 90

Soliciting Disclosure 20

Offer To Supply 1

Untrue Representations 21

Survey Related Incident 16

Other 49

Of the 1076 investigations finalised during the financial year, criminal charges were laid in 10 cases. Of the criminal cases finalised one officer received a jail sentence, one officer was fined, two officers were placed on Good Behaviour Bonds, one received a warning letter and in one case there was insufficient evidence to proceed. Disciplinary action was undertaken against 140 members of staff, resulting in these officers being either dismissed, fined, counselled or a warning letter being issued.

In 773 of the 1076 cases finalised in the 1998–99 financial year, Automatic Data Processing logging information was used to assist in proving or disproving an allegation. Automatic Data Processing logging involves Centrelink retaining records of accesses by Centrelink officers of 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.

Appendix viii-Freedom of InformationInformation 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 is 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 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 Freedom of Information processes.

Decision making expertise and the necessary delegations to make decisions under the Freedom of Information Act 1982 is usually held in Centrelink Area Offices. This provides an effective and expert service to customers.

Each Customer Service Centre has a Freedom of Information Contact Officer, whose main duties include the release of documents outside the formal Freedom of Information process, providing advice to customers on how to lodge a formal Freedom of Information request, accepting requests, negotiating with customers about requests and providing access to documents. Selected officers in each Area undertake reviews of Freedom of Information decisions.

The Privacy and Freedom of Information Team in National Support Office manages the Freedom of Information 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 1998–99, 6460 requests for access to documents under Freedom of Information were received by Centrelink, with 6322 requests answered. A total of 515 remained outstanding at 30 June 1999. The figure of 6460 represented a six per cent decrease from the previous year.

Of the requests finalised in the period, 63 per cent resulted in full access to the requested records, 23 per cent in part access and 0.15 per cent of applicants were refused access. Seven cases were transferred to other agencies and 196 cases were withdrawn by the customer. Of those customers granted access, 17 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 Freedom of Information which were received during the financial year, 73.6 per cent were finalised within the 30 days permitted under the Act. A further 16.5 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 1998–99 were to protect the confidentiality/privacy of third parties or other customers.

Freedom of Information Reviews and AppealsIn the past year, 121 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 34 matters where access or part access was granted and 87 where the original decision was affirmed.

Of those where the original decision was affirmed, two 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• One case where the decision was dismissed.

Publication of Certain Documents and InformationSection 8 Freedom of Information Act 1982Introduction

Section 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 Statement Information about the structure, functions and organisation of Centrelink is provided in Chapter 9, Corporate Overview of Our Organisation, pages 84–88.

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 Secretary or by being invited to serve on committees, working parties or advisory bodies which are established to provide the Minister or the Secretary 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 Centrelink Centrelink 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 Centre offices 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 Freedom of Information Contact Officer in each Customer Service Centre, the Freedom of Information Action Officer in each Area Office or from the Business Manager, Privacy and Freedom of Information, 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 Freedom of Information 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 Freedom of Information 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 me’ which 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.

The above forms have tear off leaflets that explain the Freedom of Information process and customer rights. These forms can be filled out in the office, where a Freedom of Information 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 agency office.

General enquiries about Freedom of Information may be directed to the Freedom of Information Contact Officer in any Centrelink Customer Service Centre.

Appendix ix-Compliance ActivityOver the 1998–99 financial year, Centrelink completed 2 726 114 reviews of eligibility and entitlement. These included 2 663 918 reviews of social security payments, 61 310 reviews for student assistance payments and 886 child care service reviews.

As a result of this review activity there were 292 993 instances where incorrect payments were identified. Social security payments were either reduced or cancelled on 256 376 occasions and 36 617 student assistance reviews led to savings or identified debts.

Savings to future outlays for social security payments totalled $41.7 million a for tonight, and savings of $8.6 million for the year were identified for student assistance payments.

Over the 1998–99 financial year 1 406 621 debts were raised to the value of $869.2 million. Of these, 1 335 884 were social security debts worth $828.5 million (including compensation recoveries) and 70 737 were student assistance debts worth $40.8 million.

Refunds/repayments to Centrelink for 1998–99 totalled $555.6 million. Of this, $501.7 million was recovered against social security debts, an additional$22.4 million was recovered on behalf of other government agencies and $31.5 million was recovered against student assistance debts. In addition,

Centrelink recovered a further$117.2 million under the compensation recovery provisions of the Social Security Act 1991. Of this amount, $107.2 million was additional to the $555.6 million reported above.

A total of 3828 cases were referred to the Director of Public Prosecutions for consideration of prosecution action during 1998–99 of which 3779 were social security cases with a further 49 student assistance cases referred.

During the 1998–99 financial year, 3147cases were prosecuted through the courts. Of these, 3077 cases were prosecuted for social security fraud with a conviction rate of 97.9 per cent, and a further 70 cases were prosecuted for student assistance fraud resulting in a conviction rate of 97.1 per cent.

Within these overall figures there were the following highlights:

Social security payments:

• The Data-matching Program continued its strong performance with five data matching cycles conducted in 1998–99.This review activity resulted in the cancellation or reduction in the rate of 35 657 payments with 70 141debts being raised. Savings to future outlays from these matches totalled $2 million a fortnight and$81 million in debts were identified for recovery action.

• Employment Declaration Form reviews resulted in the cancellation or rate reduction of 37 222 payments. These reviews achieved fortnightly savings to future outlays of $7 million and identified debts totalling $123.2 million.

• 49 052 reviews were conducted from tip-offs received from the public resulting in 4924 cancellations to payment, with a further 10 428 rate reductions, and debts totalling $29.9 million being identified.

• There were 3011 convictions recorded for welfare fraud involving $30.3 million.

Student assistance payments:

• data matching of enrolment details with educational institutions resulted in 23 121 cases of savings or identified debts, with annual savings to outlays of $6.5 million and identified debts of $16.7 million; and

• there were 68 convictions recorded for fraud involving $595 317.

Report to ParliamentThe Minister regularly tables reports in Parliament on social security review and associated debt activity undertaken by Centrelink. This report and the press coverage it receives increases the profile of the control activities being undertaken by Centrelink which in turn helps ensure that social security 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 InitiativeDuring the 1997–98 financial year Centrelink conducted a successful pilot scheme involving the use of private firms to provide optical surveillance services. The purpose of the pilot was to determine the effectiveness of surveillance in the investigation of cases where traditional methods of investigation had proven unsuccessful. Centrelink has since conducted a public tender process to select private firms to provide surveillance services on its behalf. These firms will assist in the investigation of certain cases of serious social security fraud. Only sufficient information necessary to conduct the surveillance is passed to the firm providing the service and each case is under the control of a specialist Centrelink surveillance project officer. The project officers act as the liaison point between service providers and Centrelink.

Contracts with selected firms contain strong privacy and confidentiality safeguards. The private firms selected through the tender process are required to adhere to the Guidelines for the Conduct of Covert Surveillance in Commonwealth Administration, published by the Privacy Commissioner in 1992, the Information Privacy Principles in the Privacy Act 1988 and stringent Centrelink guidelines. The Privacy

Commissioner’s office was closely involved in the process. Surveillance personnel were also vetted by the Australian Security Vetting Service.

Cash EconomyThe cash economy is recognised as an area of significant risk for Centrelink. In response to this, Centrelink continued to develop its cash economy compliance strategy, establishing a specialist team to address cash economy issues as well as other complex investigation matters. The out posting of specialist Centrelink staff to the Australian Taxation Office was consolidated and in the future will be extended to cover most branches. Joint initiatives with the Australian Taxation Office were undertaken including checks on casual workers in the Hunter Valley of New South Wales where a number of fraudulent cases associated with the cash economy were successfully prosecuted. There was continued liaison with representatives of a number of Commonwealth agencies under the auspices of the Interagency Cash Economy Working Group which met on a regular basis throughout the year.

Appendix x-Notifiable EventsSections 9 and 13 of the Commonwealth Services Delivery Agency Act 1997 (the Act) provide for the Minister to give a direction to the Centrelink Board of Management in writing through the Chairman. Section 10 of the 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 any directions given by the Minister and advice by the Board are required to be reported in Centrelink’s Annual Report.

During the 1998–99 financial year the Centrelink Board of Management received two Ministerial Directions. The first required that the Chief Executive Officer of Centrelink provide briefings on factual and operational aspects of the services provided to the Ministers of any agencies with whom Centrelink has entered into service arrangements. The second direction called upon the Board to implement the Centrelink Privacy Directions.

Chief Executive Officer Briefings to Other MinistersOn 27 August 1998, under Section 10 of the Act, the then Minister for Social Security, Senator the Hon. Jocelyn Newman, forwarded a proposed direction to the Chairman for consideration by the Board. The proposed direction required the Board to direct the Chief Executive Officer to provide factual and operational briefings to any Minister responsible for the functions of any Commonwealth agency with whom Centrelink has entered into service arrangements. The briefings can be instigated either by the Minister or by the Chief Executive Officer.

The Board advised the Minister that the proposed direction would have no adverse affect on the operations of Centrelink. He also noted the need for arrangements that would continue to recognise the role and responsibility of relevant portfolio Secretaries for negotiating and managing arrangements with Centrelink.

On 28 August 1998 Senator Newman issued a formal direction under Section 9 of the Act. Subsequently, on 1 September 1998, the Chairman wrote to the Chief Executive Officer directing her to comply with this direction.

Centrelink’s Privacy GuidelinesIn March 1997, in relation to implementation of the Agency, and during the debate on the Commonwealth Services Delivery Agency (Consequential Amendments) Bill 1997 the then Minister for Social Security, Senator the Hon. Jocelyn Newman stated that the existing strong privacy regime from the former Department of Social Security would apply to Centrelink. She said there would be no diminution in the protections that the Privacy Act and the confidentiality provisions of the various other

acts administered by Centrelink, such as the Social Security Act 1991, afford to the customers of Centrelink. The Minister said Privacy Guidelines would be developed and the Board would be required to implement them.

The Centrelink Privacy Guidelines were presented to the Centrelink Board of Management in April 1999. The Board, noting that the Guidelines had been supported by the Privacy Commission, approved the Guidelines. The Board asked that they be promulgated throughout Centrelink, recognising that the Guidelines formalised a privacy regime that had been in operation since the creation of Centrelink.

Subsequently, to give effect to Minister Newman’s commitment, on 16 June 1999 the Hon. Warren Truss MP, the then Minister for Community Services, issued a formal direction under Section 9 of the Commonwealth Services Delivery Agency Act 1997 directing the Board of Centrelink to implement the Privacy Guidelines. On 21 June 1999, the Chairman of the Centrelink Board of Management wrote to the Chief Executive Officer directing her to comply with the Minister’s direction

Appendix xi-Customer Charter Status and Customer Feedback Handling ReportCentrelink’s Customer CharterCentrelink’s Customer Charter defines the experience its customers can expect and acts as a significant lever for creating a customer driven culture by helping staff to focus on what is important to their customers.

The first revised edition of the Customer Charter was issued in September 1998, along with a new companion document for staff, The Customer Charter in Practice, one year after its launch on 24 September 1997.The first annual review used a similar process to that used for the Charter’s development, involving wide consultation with customers, community groups, customer service staff and client departments. The second annual review of the Charter is underway, with reissue expected in September 1999.

Customer awareness of the Charter continues to be low (eight per cent) and activities to promote the Charter are planned for 1999–2000. Of those customers who knew of the Charter, the numbers who have read it has increased significantly, from 39 per cent to 51 per cent.

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 FreecallTM 1800 050 004;• completing a Customer Comments Card(available at all offices);• 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 the agency’s corporate planning process.

Feedback activityThe instances of feedback requiring issues to be resolved were much higher this year than in the previous year because:

• 1998–99 was the first full year of operation for Centrelink’s 1800 Customer Relations Line;.• the service was advertised in the Telstra white pages in 1998 and 1999; and• An improved (speedier) recording system enabling all feedback to be entered was introduced at the

beginning of 1999.

In 1998–99 there were 90 782 instances of feedback requiring issues to be resolved compared to 34 207 in the first nine months of Centrelink’s operations (October 1997– June 1998). This type of feedback activity represented less than half of one per cent of total decision making activity.

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.

Feedback systemAll customer complaints, compliments, suggestions and general information requests are recorded by staff working on the 1800 Customer Relations Line onto a database.

Centrelink’s Customer Relations Line services are delivered from 14 sites around the country.

Feedback statisticsCentrelink records all feedback received by customers whether they are complaints, compliments, suggestions or requests for general information.

It is possible to record a range of information on the system about each customer contact. The information can include:

• customer details (e.g. name, contact phone number, date of birth, Customer Reference Number);• type of feedback (e.g. compliment, suggestion, complaint, information request);• service provider;• product type (e.g. Age Pension);• category (e.g. procedures, waiting times, appointments, information, customer service);• details of the situation; and• resolution details (e.g. response, resolution date and resolution details).

The type and amount of information recorded is needs based and varies with each individual customer contact. For example, customer details are not recorded if the customer does not need or wish to be called back, if these details are not essential to resolving the problem, or if the customer wishes to remain anonymous.

In some cases only the nature of the call is recorded. For example, no details other than the complaint category ‘Call Centre Busy’ is recorded if a customer rings to complain about not being able to get through when ringing Centrelink as recording further information would not add to the usefulness of the data.

Improvements to Service Delivery made as a result of customer feedbackMany improvements have been made as a result of customer feedback. One example is where a customer complained about a standard letter. The wording was changed, and the customer subsequently received the new style letter and responded positively to the change.

The four most common complaints• Could not get through to a Call Centre, busy signal.• Not satisfied with the decision or assessment Centrelink has made.• Delay in processing customer’s claim for benefit.

• Information inaccurate, incomplete or ambiguous.

The four most common compliments• Helpful service.• Efficient service.• Caring service.• Friendly service.

Percentage of complainants satisfied with complaint resolutionMore than half of customers surveyed recently who had made a complaint were satisfied with how their complaint was handled. Centrelink’s standard is that all feedback, regardless of complexity, be resolved within the timeliness standards.

Appendix xii-Customer Satisfaction Performance TableTable 24: Overall Customer Satisfaction (As measured by various Customer Satisfaction

Surveys) Centrelink undertakes a comprehensive customer satisfaction research program.

Overall, customer satisfaction has remained stable over 1998–99.

AREA OF OVERALL CUSTOMER SATISFACTION

November ’98

%

May ’99

%

Overall Quality of Centrelink (including people, services and information)*

65.0 65.0

Overall Level of Service by Customer Service Centres (including quality of people, services and information)†

72.8 73.3

Overall Level of Service by Call Centres (including quality of people, services and information)#

60.8 60.3

Overall Level of Service by International Services (including quality of people, services and information)**

93.5 92.0

Centrelink Staff Overall* 76.0 76.0

Notes:

*Source: National Customer Satisfaction Survey (Yann Campbell Hoare Wheeler)†Source: Customer Service Centre Customer Satisfaction Survey (Roy Morgan Research)#Source: Call Centre Customer Satisfaction Survey (Roy Morgan Research)

**Source: International Services Customer Satisfaction Survey (Roy Morgan Research)

Appendix xiii-Customer Charter Performance TablesTable 25: (As measured by the Customer Service Centre Satisfaction Survey)

CUSTOMER CHARTER PERFORMANCE FOR THE CUSTOMER SERVICE CENTRE NETWORK

We will help you by:

November ’97

%

May ’98

%

November ’98

%

May ’99

%

1. Being friendly, helpful, respectful and sensitive to your individual needs

– Staff friendliness 78.8 78.9 77.7 78.2 (+0.5)

– Staff helpfulness 78.8 78.4 77.4 77.4 (0.0)

– Way staff treated you

78.8 78.2 78.0 78.3 (+0.3)

– Understand customers’ needs

* 61.3 58.2 58.1 (-0.1)

2. Identifying ourselves when we talk with you

– Did staff identify themselves to your satisfaction?

YES * * 69.5 71.2 (+1.7)

NO* * * 17.2 16.7 (-0.5)

3. Giving prompt and efficient service

– Staff speed and efficiency

64.0 61.5 59.8 60.6 (+0.8)

4. Listening carefully to what you say to us

– Communication skills—listening

74.0 74.3 73.5 74 (+0.5)

5. Providing accurate and consistent

information that is easy to understand

– Accuracy of information

69.3 64.7 65.8 67.8 (+2.0)

– Consistency of information

* * 58.0 59.1 (+1.1)

– Information that is easy to understand†

† † † †

6. Explaining the things you need to know and do

– Communication skills—explaining

72.1 71.6 70.4 71.3 (+0.9)

7. Providing or referring you to other services you may need

– Were you referred to other services? (% Said YES)

* * 7.5 7.9 (+0.4)

– Handling of referral

* * 66.3 66.6 (+0.3)

8. Making it easy to access government services delivered by Centrelink

– Overall, how easy is it to access government

services provided by Centrelink?†

† † † 54.0 (+14)

9. Fixing mistakes

– Purpose of last visit/call to fix a mistake

* * 24.3 23.8 (-0.5)

– Rating of mistake resolution

* * 57.6 55.9 (-1.7)

10. Improving our letters and telephone services

– Letters overall† † † † †

– Telephone service overall#

# # # #

Notes:

*Not measured in this wave of the survey.†See Table 28 for results from the National Customer Satisfaction Survey (Yann Campbell Hoare Wheeler).#See Table 26 for results from the Call Centre Survey (Roy Morgan Research).

Table 26: (As measured by the Call Centre Satisfaction Survey)

CUSTOMER CHARTER PERFORMANCE FOR THE CALL CENTRE NETWORK

We will help you by:

November ’97

%

May ’98

%

November ’98

%

May ’99

%

1. Being friendly, helpful, respectful and sensitive to your individual needs

– Staff friendliness 81.1 82.1 81.6 80.5 (-1.1)

– Staff helpfulness 79.4 79.4 77.8 76.3 (-1.5)

– Way staff treated you

79.4 79.0 79.9 78.1 (-1.8)

– Understand customers’ needs

* 61.3 54.9 55.0 (+0.1)

2. Identifying ourselves when we talk with you

– Did staff identify themselves to your satisfaction?

YES * * 81.8 85.2 (+3.4)

NO* * * 10.1 9.4 (-0.7)

3. Giving prompt and efficient

service

– Staff speed and efficiency

* * 73.2 74.9 (+1.7)

4. Listening carefully to what you say to us

– Communication skills—listening

75.8 76.7 75.8 75.6 (-0.2)

5. Providing accurate and consistent information that is easy to understand

– Accuracy of information

67.3 64.7 64.2 65 (+0.8)

– Consistency of information

* * 56.7 55.3 (-1.4)

– Information that is easy to understand†

† † † †

6. Explaining the things you need to know and do

– Communication skills—explaining

72.0 73.0 71.5 70.9 (-0.6)

7. Providing or referring you to other services you may need

– Were you referred to other services? (% Said YES)

* * 17.2 16.4 (-0.8)

– Handling of referral

* * 59.1 59.5 (+0.4)

8. Making it easy to access government services delivered by Centrelink

– Overall, how easy is it to access government

Services provided by Centrelink?†

† † † 54.0 (+14)

9. Fixing mistakes

– Purpose of last visit/call to fix a mistake

* * 36.4 34.9 (-1.5)

– Rating of mistake resolution

* * 58.7 55.1 (-3.6)

10. Improving our letters and telephone services

– Letters overall† † † † †

– Telephone service overall#

66.5 64.0 60.8 60.3 (-0.5)

Notes:

*Not measured in this wave of the survey.†See Table 28 for results from the National Customer Satisfaction Survey (Yann Campbell Hoare Wheeler).

Table 27: (As measured by the International Services Satisfaction Survey)

CUSTOMER CHARTER PERFORMANCE FOR THE INTERNATIONAL SERVICES CALL CENTRE

We will help you by:

November ’97

%

May ’98

%

November ’98

%

May ’99

%

1. Being friendly, helpful, respectful and sensitive to your individual needs

– Staff friendliness 88.0 92.5 91.0 95.0 (+4.0)

– Staff helpfulness 84.0 89.6 84.5 92.0 (+7.5)

– Way staff treated you

84.0 90.5 88.0 93.0 (+5.0)

– Understand customers’ needs

* * 65.0 74.0 (+9.0)

2. Identifying ourselves when we talk with you

– Did staff identify themselves to your satisfaction?

YES * * 71.0 70.0 (-1.0)

NO* * * 12.0 13.0 (+1.0)

3. Giving prompt and efficient service

– Staff speed and efficiency

* * 85.0 91.0 (+6.0)

4. Listening carefully to what you say to us

– Communication skills—listening

83.5 92.0 90.5 97.0 (+6.5)

5. Providing accurate and consistent information that is easy to understand

– Accuracy of information

75.0 84.6 80.5 84.5 (+4.0)

– Consistency of information

* * 75.5 83.5 (+8.0

– Information that is easy to understand†

† † † †

6. Explaining the things you need to know and do

– Communication skills—explaining

80.0 87.6 88.5 90.0 (+1.5)

7. Providing or referring you to other services you may need

– Were you referred to other services? (% Said YES)

* * * *

– Handling of referral

* * * *

8. Making it easy to access government services delivered by Centrelink

– Overall, how easy is it to access government

Services provided by Centrelink?†

† † † 54.0 (+14)

9. Fixing mistakes

– Purpose of last visit/call to fix a mistake

* * 25.5 37.0 (+11.5)

– Rating of mistake resolution

* * 74.5 85.2 (+10.7

10. Improving our letters and telephone services

– Letters overall† † † † †

– Telephone service overall#

92.0 93.0 93.5 92.0 (-1.5)

Notes:

*Not measured this wave of the survey.†See Table 28 for results from the National Customer Satisfaction Survey (Yann Campbell Hoare Wheeler).

Table 28: (As measured by the National Customer Satisfaction Survey)

CUSTOMER CHARTER PERFORMANCE—NATIONAL RESULTS

We will help you by:

November ’97

%

May ’98

%

November ’98

%

May ’99

%

1. Being friendly, helpful, respectful and sensitive to

your individual needs

– Staff helpfulness and friendliness (CSC/CC)

78/85 * * *

– Staff friendliness (CSC/CC)

* 76/79 * *

– Staff helpfulness (CSC/CC)

* 74/78 * *

– Way staff treated you (CSC/CC)

76/83 75/78 * *

–Understand customers’ needs

63 59 * *

2. Identifying ourselves when we talk with you

Wearing name badges or identified themselves

(% said yes) (CSC)

52 54 * *

Staff identification (% said yes) (CC)

67 67 * *

3. Giving prompt and efficient service

– Staff speed and efficiency

67 67 * *

4. Listening carefully to what you say to us

– Staff listening carefully to what

customers tell them

75/82 71/75 * *

5. Providing accurate and consistent information that is easy to understand

– Accuracy of advice (including up to date)

70/75 68/73 * *

– Consistent 57/64 60/60 * *

– Information that is easy to understand

* * 65 68

6. Explaining the things you need to know and do

– Explaining the things customers need to know and do

70/76 69/73 * *

7. Providing or referring you to other services you may need

– Providing/referring to appropriate services

76 74 * *

8. Making it easy to access government services delivered by Centrelink

– Operating hours 71/75 71/66 * *

– Handling Queues (CSC)

61 58 * *

– Time waiting on hold (CC)

23 19 * *

– Access to the right person

68/61 62/57 * *

– Getting through to (CC)

42 34 * *

– Overall, how easy is it to access

Government services provided

* * 40 54

by Centrelink?

10.Improving our letters and telephone services

– Letters overall 72 68 66 66

– Telephone service overall†

48 43 * *

Notes:

CSC—Customer Service Centre (office).

CC—Call Centre (telephone service).

*Not measured in this wave of the survey.†See Table 26 for results from the Call Centre Survey (Roy Morgan Research).

Appendix xiv-The 1998–99 Centrelink Balanced ScorecardThe strategic goals of an organisation focus on key issues of corporate survival. They set the direction for the organisation, defining how it will navigate through an increasingly competitive environment. The Balanced Scorecard provides a framework that translates Centrelink’s vision and strategy into a comprehensive set of performance measures.

The Balanced Scorecard is a strategically focused performance management system. It measures achievement across the range of a business’s activities, giving a more complete picture of our performance.

For Centrelink, the Balanced Scorecard takes us beyond timeliness and accuracy measures to assessing the satisfaction of our customers, the well-being of our people, and our ability to continue getting business from our client departments.

StructureThe Centrelink Balanced Scorecard for 1998–99 contained a three level hierarchy:

• Key Result Areas, reflecting the first five of Centrelink’s Strategic Goals:1. Client Partnerships;2. Customer and Community;3. Centrelink People;4. Cost Reduction; and5. Innovation.

• Key Performance Indicators within each Key Result Area (representing critical areas of success, including the strategies required to help Centrelink meet its strategic goals); and

• Performance Measures which enabled assessment of the progress of our success against the Key Performance Indicators. Performance Measures are the foundations upon which we can chart our progress towards meeting our strategic goals.

Reporting of ResultsThe Balanced Scorecard enables a clear and concise picture to be drawn as to how Centrelink is actually performing against business expectations. In the Scorecard context, these expectations are represented by targets, set appropriately for each individual Performance Measures. Scorecard results emanate from assessing our actual performance against the performance targets for which we strive to achieve.

Wherever possible, given the availability of the appropriate information, results are gathered in relation to the activities of offices directly serving the public (Customer Service Centres and Call Centres).

Balanced Scorecard results for 1998–99,with the exception of financial components, were displayed relative to the number ‘1’,with ‘1’ representing the exact achievement of the target result.

A result of greater than ‘1’ represented achievement exceeding the target performance; a result less than ‘1’ represented underperformance against target. For example, a Scorecard result of 1.10 (110 per cent) indicated that actual performance against the measure exceeded the target expectation by 10 per cent. Conversely, a result of 0.90 (90 per cent) indicated underperformance of 10 per cent below the target expectation.

How the Key Result Area Result Was ObtainedThe Key Result Area results reported in Chapters four to eight were derived from the average of the results for each individual Performance Measure falling under the respective Key Result Area, (results at Key Performance Indicator level could similarly be derived by averaging the result of the applicable Performance Measures).

As for Performance Measures, results for Key Result Areas are relative to the number ‘1’ (100 per cent), with ‘1’ representing achievement of target.

The Usefulness of the Balanced Scorecard for CentrelinkThe Scorecard provides a consistent measure of our success in meeting the Centrelink Strategic Goals. It is the primary tool used to inform the Centrelink Board on the organisation’s performance and is an important part in enabling Centrelink managers to identify business aspects that may, for example, require particular attention.

The Balanced Scorecard is available to all Centrelink staff through a computerised system. Monthly results are displayed, down to Area or Customer Service Centre level where measures are available at that level. To facilitate the adoption of best practice, staffs are able to track the performance of offices within their geographic Area or against any other Area or office.

To complement the national Balanced Scorecard, Customer Service Centre Offices may also produce local Customer Service Improvement Plan Scorecards. These help individual offices monitor performance issues of particular relevance to them at any time. Like the national Balanced Scorecard, local Scorecards are designed to reflect Centrelink’s strategic goals.