Annual Report 2002–03Volume I

Commonwealth of Australia 2003

ISSN: 1442-5238

ISBN: (Volume one) 0642770980

ISBN: (Volume two) 0642770999

ISBN: (set) 0642770972

ISBN: CD-ROM: 1920851003

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may bereproduced by any process without prior written permission from the Commonwealth available fromthe Department of Communications, Information Technology and the Arts. Requests and inquiriesconcerning reproduction and rights should be addressed to the Commonwealth CopyrightAdministration, Intellectual Property Branch, Department of Communications, Information Technologyand the Arts, GPO Box 2154, Canberra ACT 2601 or posted at

Department of Family and Community Services

Box 7788

Canberra Mail Centre ACT 2610

Telephone 1300 653 227 (for the cost of a local call, mobile phones at mobile rates)

Internet:

ABN: 36 342 015 855 FaCS, Social Security Appeals Tribunal and Australian Institute of Family Studies

ABN: 36 342 015 855 004 Child Support Agency

Acknowledgments

Annual Report Team: Liz Clarke, Sophia Collison, Carmel Curran, Greg Moores and Wendy Tierney

Editor:Jeff Fitzgibbon

Proof reading: Janet Willis

A user’s guide

This year’s annual report of the Department of Family and Community Services (FaCS)-the fifth—hasbeen divided into two volumes for ease of access and readability.

It is a continuing challenge for the department to maintain a manageable publication size whileensuring mandatory requirements are met. This is a difficult task for a department that hasappropriations of more than $60 billion to report.

Volume oneprovides an overarching view of the department’s functions and summary ofits achievements.

Volume twoprovides more detail, covering performance reporting, management and accountability,appendixes and financial statements.

Each volume has its own contents page, glossary and index. A CD-ROM of the full report is enclosed inVolume one.

This report is available online on the FaCS web site at

Our essential aim is for the report to meet the needs of our readers—Senators, Members andthe public

Preface

The Department of Family and Community Services (FaCS) is responsible for shaping social policiesand ensuring they are delivered efficiently through partnerships with other government andnon-government organisations.

As well as families, FaCS focuses on groups with differing needs such as young people and students,people living in rural and remote areas, Aboriginal and Torres Strait Islander peoples and people fromdiverse cultural and linguistic backgrounds.

FaCS is responsible for about one-third of total government outlays as is detailed in the remainder ofthis report. FaCS’ national office is in Canberra. FaCS also has locations in each state and territorythroughout Australia, and rural and regional areas.

FaCS is part of the Australian Government’s Family and Community Services portfolio. The portfolio isresponsible for a broad range of social policy issues affecting Australian society and the living standardsof Australian families, communities and individuals.

The portfolio consists of:

  • FaCS*, which incorporates the Child Support Agency
  • Centrelink, which delivers income support payments and services on behalf of FaCS
  • The Australian Institute of Family Studies.

*The resources needed to support the operations of the Social Security Appeals Tribunal (SSAT) are also providedthrough FaCS.

Secretary's introduction

As Secretary of the Department of Family and Community Services (FaCS), I ampleased once again to introduce our annual report and the departmental overview.

This year’s two-volume report for 2002–03 covers FaCS’ performance against ourthree outcomes.

Volume one gives a broad picture of the achievements, challenges and highlightsof our policy and program implementation. Volume two includes performance,management and accountability details.

The Child Support Agency (CSA) features prominently throughout this report,including a review by the General Manager, Catherine Argall.

As a first for FaCS—indeed, as a first for a federal government agency—thedepartment, including the CSA, is also reporting separately on its internaloperations against the Triple Bottom Line (TBL). Reporting on the TBLacknowledges that successful organisations are not just concerned with financialissues and shareholder profits—their operations have broader impacts as well.Our TBL report covers performance against social, environmental and economicindicators for 2002–03. The report also makes a number of commitments andestablishes benchmarks for performance in future years.

Focusing on participation

The year saw participation firmly on the political, legislative and departmentalmap. As part of the Australians Working Together (AWT) implementation, thePersonal Support Programme was bedded down and more than 450 PersonalAdvisers started work in Centrelink.

The passage of AWT legislation paves the way for introducing other importantmeasures in the coming year, including the second wave of Personal Adviserappointments, the Working Credit initiative, and new participation obligations forpeople on Parenting Payment and mature-age workers.

The department also looked at Newstart Allowance requirements and somechanges to breaching policies were agreed. The challenge was to find a balancebetween ensuring thatjob seekers make every effort to improve theiremployment prospects while protecting those whose personal circumstancesmake it difficult for them to comply.

In planning for and implementing AWT measures, FaCS worked in close and collaborative partnershipswith several departments, especially the Department of Employment and Workplace Relations.

The progress we made on AWT was a great example of what can be achieved by working alongsideother Australian Government agencies. I believe cooperation like this with other departments willcontinue to grow from strength-to-strength in the coming year.

Taking a whole-of-government approach

During the year, other cooperative partnerships across departments and with state and territorygovernments contributed to the success of several other FaCS activities.

As an active member of the interdepartmental Taskforce on Work and Family, we worked with otherdepartments and agencies to review options that promote choices for parents in balancing their workand family lives.

Following the Government’s announcement on developing a National Agenda for Early Childhood, weconvened a Taskforce on Child Development, Health and Wellbeing. This includes high-levelrepresentation from other federal departments with responsibilities for children’s issues.

The taskforce prepared a consultation paper, designed to promote stakeholder and public discussion onthe agenda’s content. Along with a number of Australian Government ministers, Professor FionaStanley—an early childhood expert and Australian of the Year-supported the initiative. We aim tocontinue widespread community consultations throughout 2003.

Integrating responses

A whole-of-government approach is also reflected in the Indigenous Community Coordination Pilots.Supported by the Prime Minister and state and territory leaders through the Council of AustralianGovernments, the pilots are testing integrated responses to the needs of Indigenous communities.

FaCS is the ‘sponsoring’ agency for the Wadeye community pilot in remote Northern Territory. I amtaking a hands-on interest in progress and making sure the Australian Government delivers on its shareof responsibilities.

It is still early days at Wadeye and I believe we cannot claim success until we satisfy the community’sown vision for success. However, initial results are showing that things can work a lot better when youhave a tri-partite relationship between the Australian Government, the Northern Territory Governmentand the community itself.

Consulting with others

In the past year, the department placed more emphasis on seeking input from key stakeholders,including experts, peak bodies, non-government organisations, service providers, communities andfamilies themselves. This recognises that the department alone does not have all the answers and thatinput from others really can add value to the advice we give to government.

In FaCS, this focus on consultation applies from the top down. Our senior policy makers understand thatconsulting widely on policies and programs is part of the department’s culture.

Using local networks and community-based contacts, our state and territory office network is at thefrontline of this activity. This approach represents a move towards what I call public-private policypartnerships, which have worked well, for instance in managing the welfare reform process andredeveloping the Child Care Support Broadband.

Consultation was also a key element in resolving the business relationship management problems withtendering for the Jobs Placement Employment and Training program (JPET). In reviewing what wentwrong, we talked with the players, sought external assistance and acted on their recommendations.While the situation was unfortunate and FaCS regrets our failure, the consultations with service providersand peak bodies have, ironically, improved our engagement with and gained the trust of this group ofstakeholders.

Forming Alliance 2004

With responsibility for one-third of the Australian Government budget, the health and integrity of theFaCS—Centrelink purchaser-provider relationship remains pivotal to the interests of both organisations.

The hard work and application that went into the review of Centrelink’s prices, the agreed outcomes andoutputs framework for that relationship, and the pilot business assurance framework will help us reportmore accurately to government and give them greater confidence that their outlays are well protected.Our joint commitment to the new Alliance 2004 indicates a shared willingness to work together evenmore effectively.

Negotiating agreements

During the year, complex and difficult negotiations continued on two important agreements betweenthe Australian Government and state and territory governments.

All the states and territories agreed to sign the new Commonwealth-State Housing Agreement,which includes major improvements. For the first time, Australian Government funding for housing isindexed. As well, enhanced performance and reporting arrangements require the states, for example,to deliver on private sector investment in public housing and remove workforce disincentives forpublic housing tenants.

While it took almost a year, by 30 June 2003 six of the states and territories had signed theCommonwealth State Territory Disability Agreement. Negotiations saw all jurisdictions working togetherto deal with some of the barriers, including access issues and the links and transitions betweenAustralian Government and state services. The new agreement means greater transparency in disabilityspending across Australia and commitments by the states to match Australian Government fundingincreases each year.

Gaining resources and striving for best practice

Despite the tight budgetary environment, FaCS was able to secure funding for a number of disability,Indigenous and other initiatives in the 2003-04 Budget round. Importantly too, Centrelink will have theresources needed to upgrade its IT capacity to dramatically improve the delivery of services to theirsix million customers.

In 2003-04, we will seek to become a best practice agency by meeting the challenges of our newbudget estimates framework and complying 100 per cent with the Chief Financial Officer guidelines. Inline with the Government’s clear directions, effective program implementation-supported by thedepartment’s new project management framework-also remains a number one priority.

Wide-ranging services

The services that FaCS manages or provides are as wide-ranging and diverse as Australian families andcommunities are themselves.

The diversity of our work is reflected in initiatives such as supporting accreditation and improving thequality of child care; working with Centrelink to reach out to communities deeply affected by drought;and the introduction of More Choice for Families from November 2002, as part of ongoing efforts tomake it easier for families to access their correct Family Tax Benefit. None of this work would bepossible, of course, without the efforts of the people of FaCS.

The introduction to this year’s annual report covers only some of the department’s work for the year.However, the rest of this report outlines the highlights, challenges and performance of all ofFaCS’ business.

Bringing out the best in our people

Two disasters in the past year brought out the very best in FaCS’ people.

The Bali tragedy called for a coordinated domestic response. Deputy Secretary at the time, Lisa Paul,met the challenge magnificently as leader of the Bali Inter-Agency Taskforce. FaCS staff worked tirelesslyon delivering assistance to victims, their families and friends.

The Canberra bushfires affected us deeply. The homes of many Canberra families and friends were lostor damaged. At one stage, national office at Tuggeranong was under threat.

Our response to the fires was decisive. In their aftermath, a FaCS crisis response team worked aroundthe clock to keep us up to date with the latest developments. As the flames subsided, the team ensuredthe department continued to operate effectively and safely.

Many staff helped the firefighters, or worked officially or as volunteers with the ACT Government. Othersdonated generously to the bushfire appeal. The department and the ACT Government publiclyacknowledged these efforts.

I believe the way FaCS people responded to these disasters reflects the values and behaviours theydemonstrate in their day-to-day work. Articulated in our Strategic Statement, these are integrity,responsibility, wisdom, fairness, and care and respect.

Finally, a big thank you to everyone in the department for all the hard work you put in during 2002–03.

Mark Sullivan

Secretary

Department of Family and Community ServicesAbout Mark Sullivan, Secretary

About Mark Sullivan, Secretary

Mark Sullivan commenced as Secretary of the Department of Family andCommunity Services (FaCS) on 18 January 2002. Mark was well known to manyas the CEO of the Aboriginal and Torres Strait Islander Commission, a position heheld for nearly three years from May 1999. Before heading up the Commission,Mark was a Deputy Secretary at the Department of Immigration and MulticulturalAffairs. He has extensive senior managerial experience in the private and publicsectors, including with WANG Australia, SBS, the Department of Social Securityand the Australian Taxation Office. Mark is a Fellow of the Society of CertifiedPractising Accountants and obtained a Bachelor of Economics at SydneyUniversity in 1971.

"The most enjoyable thing about FaCS is knowing that the work you do impacts on the lives ofreal people. While you are under the pressure of having to do the job well, there is also thepleasure of knowing that is what you have, in fact, done. The past year in particular saw ourstaff respond to two major crises in a very professional and caring way. It made me realise,even more, that I’m privileged to work in a wonderful environment with very talented people.”

About Wayne Jackson, Deputy Secretary

As Deputy Secretary of FaCS since July 1998, Wayne Jackson has represented thedepartment on a number of broadly-based policy review bodies, including theWelfare Reform Reference Group (Deputy Chair), the Youth Pathways Action PlanTaskforce and the Family Law Pathways Advisory Group. He is also a member ofthe Australian Statistics Advisory Council. Before joining FaCS Wayne workedextensively on social policy in both central and line departments. He was DeputySecretary (Social Policy) in the Department of the Prime Minister and Cabinet(PM&C), and held branch head positions in PM&C, the (now) Department ofHealth and Ageing and the Department of Finance and Administration. Waynehas an Economics Honours degree from Monash University.

"You hear about the issues and the complexity of the issues we have to deal with, and then youlook at the good spirit in which everybody contributes to them and the array of skills we have... We are seeking to model how a successful public sector agency of the future should lookand behave. I’m thinking about collegiality, of making us an attractive place to work forpeople, and being responsive, and welcoming of diversity and innovative ways of working.”

About Stephen Hunter, Deputy Secretary*

Stephen Hunter joined FaCS as a Deputy Secretary on 1 July 2003. He has diversepublic sector experience. For the past five years he was a Deputy Secretary of theDepartment of the Environment and Heritage with responsibility for naturalresource management. Prior to this he held senior positions in the Departmentof Transport and Regional Development and in various ACT Governmentdepartments. Stephen joined the Australian Public Service in 1983 followingtentative careers in the mining industry, photo journalism and music. Stephenholds a BA (Hons) from the Australian National University in political scienceand sociology.

"Although I have been with FaCS for just a short time, already I am taken by the way itdoes business. The atmosphere is friendly and cooperative and, at the same time,fiercely professional and dedicated. The issues FaCS has responsibility for are of profoundsignificance to all Australians. And they are not easy issues to address. This creates agreat challenge for everyone who works in the department. But I believe we have theskills and enthusiasm to keep meeting this challenge head on.”

* Lisa Paul was Deputy Secretary from 18 January 2002 to 1 January 2003. Lisa left FaCS to take up the position ofDeputy Secretary in the Department of Education, Science and Training.

Following Lisa’s departure, Glenys Beauchamp, Executive Director, Community Development and Support Clusterwas acting Deputy Secretary from 2 January to 30 June 2003.

Part 1 I Overview—the big picture

Departmental overview

Strategic Statement 2002-05

The FaCS Strategic Statement clearly sets out FaCS’ strategic directions and what the department has todo to achieve its three outcomes.

In essence, the statement is the ‘linchpin’ of all policy and planning approaches, managementprocesses and performance reporting.

Our vision

FaCS is committed to achieving its vision of ‘a fair and cohesive Australian society’.

Our purpose—what we are here to do

FaCS takes the lead and works with others to help families, communities and individuals build theirself reliance and make choices through:

  • economic and social participation
  • prevention and early intervention
  • a responsive and sustainable safety net.
Our three outcomes—the difference we will make

Whatever their role, everyone in FaCS works towards achieving three outcomes, which are: