Portfolio Budget Statements 2012-13 - Federal Magistrates Court

Portfolio Budget Statements 2012-13 - Federal Magistrates Court

Federal Magistrates Court of Australia

Federal Magistrates Court of Australia

Section 1: Agency overview and resources

1.1Strategic direction statement

The Federal Magistrates Court of Australia is a federal court established under the Constitution by the Federal Magistrates Act 1999. It was established to handle less complex matters in family law and general federal law. The Federal Magistrates Court shares jurisdiction with the Family Court of Australia and the Federal Court of Australia.

The Federal Magistrates Court has established itself as the trial court, in significant areas of jurisdiction, of the federal judicial system. Its jurisdiction includes family law and child support, administrative law, bankruptcy, unlawful discrimination, consumer protection law, privacy law, migration law, trade practices law and workplace relations law.

The Federal Magistrates Court will continue to closely monitor the timeliness of the delivery of judgments.

The following strategic initiatives will continue to be evaluated and implemented during 2012–13.

Revised best practice principles for dealing with family violence

The best practice principles for dealing with family violence were originally developed as part of the Family Violence Strategy to provide judicial officers with practical guidance in dealing with matters where family violence is alleged. The principles are now also of assistance to legal practitioners and self-represented litigants. Revised best practice principles were developed by the Family Court and the Federal Magistrates Court in consultation with a stakeholder reference group. The revised principles were launched in July 2011. One of the significant additions in the revised principles is the inclusion of processes used in the Federal Magistrates Court.

The best practice principles recognise:

•the harmful effects of family violence and abuse on victims

•the place accorded to the issue of family violence in the Family Law Act, and

•the principles guiding the Magellan case management system for the disposition of cases involving allegations of sexual abuse or serious physical abuse of children.

International Framework for Court Excellence

The Federal Magistrates Court has continued with its adoption of theInternational Framework for Court Excellence as a way of deliveringimprovements to the operation of the court, and services to those whovisit the court.In particular, over the last year, the Federal Magistrates Court has undertaken a number ofkey initiatives that align to the seven key areas of the framework (court management and leadership; court policies; human, material and financial resources; court proceedings; client needs and satisfaction; affordable and accessible court services; and public trust and confidence).

These initiatives included conducting a major client survey by interviewing (with the assistance ofvolunteers and university students) approximately 1,300 litigants and lawyerson the day they attended court.The results of the survey have not onlybeen encouraging as to the current levels of service (86% of those surveyed said that they were satisfied withtheir visit to court), but have also provided deep insight into some areasof improvement that the court will now take action on, such as form design.This initiative, directly related to client needs and satisfaction, will now become a regularfeature of the court’s assessment and improvement program.

The court’s senior management team also participated by undertaking the survey themselves. The results provide invaluable insight into the court’s performance from an internal management perspective, and thefeedback received identified areas of strength (for example, managing resources) and areas of opportunity.

Finally, the court has developed an innovative approach to reviewing theperformance of the court and the workload of the judiciary. The quarterlysnapshots, locally referred to as the ‘one-pagers’, have now become thecornerstone of quarterly reviews of performance, and assist in ensuring that consistentlevels of performance are delivered across the country.

Commonwealth Courts Portal

The Commonwealth Courts Portal ( launched in July 2007, is a continuing initiative of the Family Court, the Federal Court and the Federal Magistrates Court. The portal provides free web-based access to information about cases that are before these courts.

After registering, lawyers and parties can keep track of their cases, identify documents that have been filed and view outcomes, orders made and future court dates. Users
log on using a single user ID and access multiple jurisdictions from a single central web-based system.

A recent enhancement includes the ability for a user to elect to be alerted to any recent activity on their files. In addition, verified users can now also access a consolidated view of the documents on a file as well as any subpoenaed material held by the courts. The first stage of portal messaging has also been released, enabling users to be notified by email when they have successfully e-filed an application and also when their application for divorce has been granted.

Work has commenced to provide the initiating application and response e-forms to the Family Court of Western Australia.Applications and responses in a case and e-filing of consent applications are also in the development phase. Progress is being made to ensure compliance with the government-mandated version 2.0 of the Web Content Accessibility Guidelines.

The following statistics highlight the significant growth in the number of portal users as to 31 March 2012:

•registrations for firms have now moved past 3,000

•lawyer registrations have also increased to over 6,000

•total registered users exceed 80,000

•more than 1,600 distinct users had in total more than 11,000 logins in the last week of March 2012, demonstrating the high proportion of return visitors.

Heads of Jurisdiction cooperation

Under the umbrella of fostering greater cooperation, the Heads of Jurisdiction (Family Court, Federal Magistrates Court and Federal Court) will develop a memorandum of understanding, which will include the respective jurisdictional and administrative heads of the courts meeting no less than quarterly to discuss, agree on and implement initiatives for joint or shared administration across the courts. Such initiatives would generally be directed to areas of improved efficiency and effectiveness (for example, the use of Commonwealth Law Courts facilities, shared libraries and options for common information technology services).

Any savings generated under the umbrella of greater cooperation between the Heads of Jurisdiction are not anticipated to be material in the short to medium term. The primary aim isto improve the overall effectiveness and efficiency of the scarce resources of the courts. It is likely that other possible initiatives may in fact cost a significant amount of money were they to be implemented (for example, common information technology services).

Managing and funding Commonwealth Law Courts buildings

Beginning in 2012–13, there will be a change to the arrangements for funding and managing Commonwealth Law Courts buildings. Funds will be transferred from the tenants to allow the Department of Finance and Deregulation to take on greater responsibility for managing these buildings. In 2012–13, the Federal Magistrates Court and other tenants will work closely with the Department of Finance and Deregulation to identify the whole-of-life costs for the buildings and to transfer management of the buildings. The court will also work closely with the Attorney-General’s Department to develop a strategic plan for the ongoing occupancy of the Commonwealth Law Courts buildings.

Budgetary pressures

Over recent years, the Federal Magistrates Court has undertaken significant initiatives to reduce costs and generate efficiencies; however, the court is nevertheless still facing financial pressures. The government is working with the court to address the pressures.

The Federal Magistrates Court isidentifying new and innovative ways to provide better access to justice for family law litigants. The new initiatives being investigated consider alternative approaches to the use of in-house resources while considering the particular needs of the matter. The Federal Magistrates Court, in conjunction with the Family Court, is considering these innovative solutions in the context oflimited court resources and potential better outcomes for litigants.

1.2Agency resource statement

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: Agency resource statement—Budget estimates for 2012–13 as at Budget May 2012

Estimate of
prior year / Actual
amounts / + / Proposed / = / Total / available
available in / at Budget / estimate / appropriation
2012–13 / 2012–13 / 2012–13 / 2011–12
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL SERVICES1
Departmental appropriation
Prior year departmental
appropriation2 / 8,972 / – / 8,972 / –
Departmental appropriation3 / – / 52,799 / 52,799 / 53,538
s 31 relevant agency receipts4 / – / – / – / –
Total / 8,972 / 52,799 / 61,771 / 53,538
Administered expenses
Outcome 1 / – / 878 / 878 / 878
Total / – / 878 / 878 / 878
Total ordinary annual services / 8,972 / 53,677 / 62,649 / 54,416
Total available annual
appropriations / 8,972 / 53,677 / 62,649 / 54,416
SPECIAL ACCOUNTS
Opening balance5 / – / – / – / –
Appropriation receipts / – / – / – / –
Total special accounts / – / – / – / –
Total net resourcing for agency / 8,972 / 53,677 / 62,649 / 54,416

All figures are GST exclusive.

1. Appropriation Bill (No. 1) 2012–13.

2. Estimated adjusted balance carried forward from previous year.

3. Includes an amount of $0.149m in 2012–13 for the departmental capital budget (seeTable3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.

4. Section 31 relevant agency receipts—estimate.

5. Estimated opening balance for special accounts (less ‘special public money’ held in accounts such asOther Trust Moneys accounts, Services for Other Governments and Non-Agency Bodies accounts, or Services for Other Entities and Trust Moneys accounts). For further information on special accounts, see Table 3.1.2.

1.3Budget measures

The government will change court fees from 1 January 2013 as outlined in Budget Paper No. 2. Revised revenue estimates will be included in the 2012–13 Portfolio Additional Estimates Statements.

Section 2: Outcomes and planned performance

2.1Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the budget and forward years.

The Federal Magistrates Court’s outcome is described below together with its related program, specifying the performance indicators and targets used to assess and monitor the performance of the Federal Magistrates Court in achieving government outcomes.

Outcome 1: To provide the Australian community with a simple and accessible forum for the resolution of less complex disputes within the jurisdiction of the Federal Magistrates Court of Australia
Outcome 1 strategy

The Federal Magistrates Court’s key strategies in achieving Outcome 1 are set out in the strategic direction statement for 2012–13 in section 1.1.

Outcome 1 expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted expenses for Outcome 1

Outcome 1: To provide the Australian community with a simple and accessible forum for the resolution of less complex disputes within the jurisdiction of the Federal Magistrates Court of Australia / 2011–12
Estimated / 2012–13
actual / Estimated
expenses / expenses
$’000 / $’000
Program 1.1: Provision of a Federal Magistrates Court
Administered expenses
Ordinary annual services (Appropriation Bill No. 1) / 878 / 877
Departmental expenses
Departmental appropriation1 / 55,500 / 52,650
Expenses not requiring appropriation in the budget year2 / 43,126 / 47,890
Total expenses for Outcome 1 / 99,504 / 101,417
2011–12 / 2012–13
Average staffing level (number) / 234 / 234

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

2. Expenses not requiring appropriation in the budget year are made up of liabilities assumed by related entities of $0.695m, depreciation and amortisation expenses of $1.263m and resources received free of charge of $45.932m.

Contributions to Outcome 1
Program 1.1: Provision of Federal Magistrates Court
Program 1.1 objective
The Federal Magistrates Court provides a simple and accessible alternative to litigation in the Family Court and the Federal Court.
Where practical, parties are encouraged to resolve their disputes through dispute resolution and negotiation methods.
Program 1.1 expenses
The expenses attributable to the Federal Magistrates Court’s program will increase by $1.913m between 2011–12 and 2012–13 and will remain relatively constant across the forward estimates. The increase in 2012–13 mainly relates to changes in the management and funding of Commonwealth Law Courts buildings and the approved 2011–12 operating loss (including the impact of changes to the government bond rate). As a result, annual departmental expenses for 2012–13 will decrease by $2.850m. Expenses not requiring appropriation for 2012–13 will increase by $4.764m, which primarily reflects a shift in the responsibility for the Commonwealth Law Courts buildings ($4.735m).
2011–12 / 2013–14 / 2014–15 / 2015–16
Revised / 2012–13 / Forward / Forward / Forward
budget / Budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual administered expenses
Primary dispute resolution / 878 / 877 / 878 / 891 / 908
Annual departmental expenses
Provision of a Federal Magistrates Court / 55,500 / 52,650 / 53,247 / 52,971 / 53,006
Expenses not requiring appropriation in
the budget year1 / 43,126 / 47,890 / 47,919 / 47,908 / 47,895
Total program expenses / 99,504 / 101,417 / 102,044 / 101,770 / 101,809

1. Expenses not requiring appropriation in the budget year are made up of liabilities assumed by related entities, depreciation and amortisation expenses and resources received free of charge.

Program 1.1 deliverables
The Federal Magistrates Court’s deliverables relate to judicial services outputs which are monitored and reviewed on an ongoing basis.
2011–12 / 2013–14 / 2014–15 / 2015–16
Revised / 2012–13 / Forward / Forward / Forward
Deliverables / budget / Budget / year 1 / year 2 / year 3
Number of cases litigated and divorce cases processed / 90,500 / 90,800 / 92,000 / 92,300 / 93,200
Program 1.1 key performance indicators
The Federal Magistrates Court’s key performance indicators focus on the court’s ability to process matters in a timely manner.
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
Revised / Budget / Forward / Forward / Forward
Key performance indicators / budget / target / year 1 / year 2 / year 3
Cases litigated or divorces processed subject to complaint / 1% / 1% / 1% / 1% / 1%
Time taken from filing to disposition is less than six months / 90% / 90% / 90% / 90% / 90%
Matters resolved prior to trial / 60% / 60% / 60% / 60% / 60%

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2012–13budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, and special accounts.

3.1Explanatory tables

3.1.1Movement of administered funds between years

The Federal Magistrates Court has not moved any administered funds between years.

3.1.2Special accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997or under separate enabling legislation. Table3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the Federal Magistrates Court.

Table 3.1.2: Estimates of special account flows and balances

Opening / Closing
balance / Receipts / Payments / Adjustments / balance
2012–13 / 2012–13 / 2012–13 / 2012–13 / 2012–13
2011–12 / 2011–12 / 2011–12 / 2011–12 / 2011–12
Outcome / $’000 / $’000 / $’000 / $’000 / $’000
Federal Magistrates Court Litigants’ Fund Special / 1 / 844 / 200 / 200 / – / 844
Account—FMA Act s20 (A)1 / 1 / 844 / 200 / 200 / – / 844
Total special accounts 2012–13 Budget estimate / 844 / 200 / 200 / – / 844
Total special accounts 2011–12 estimated actual / 844 / 200 / 200 / – / 844

(A) = Administered.

1. The purpose of this account is to hold and disburse money paid to the Federal Magistrates Court in accordance with an order made by the court or a federal magistrate under section 15 of the Federal Magistrates Act 1999.

3.1.3Australian Government Indigenous expenditure

The Federal Magistrates Court has no Indigenous-specific expenses.

3.2Budgeted financial statements

3.2.1Differences in agency resourcing and financial statements

The most significant difference between the Federal Magistrates Court’s agency resourcing and financial statements is that of resources provided free of charge ($45.932m) and liabilities assumed from related entities ($0.695m). These costs are equally offset with expenditure and are not included in the agency resourcing table.

3.2.2Analysis of budgeted financial statements
Budgeted departmental income statement

Appropriation revenue in 2012–13 for the Federal Magistrates Court has decreased by $0.526m since the 2011–12 Portfolio Additional Estimates Statements (from $53.176m to $52.650m). The decrease is primarily due to changes in the management and funding of Commonwealth Law Courts buildings ($0.471m) and wage and price indices ($0.055m). The changed arrangements will result in a reduction in annual departmental expenses and an increase in expenses not requiring appropriation.

Further variations over the forward years are due to adjustments in the efficiency dividend and wage and price indices.

Budgeted departmental balance sheet

The Federal Magistrates Court’s net asset position for 2012–13 has decreased by $2.681m since the 2011–12 Portfolio Additional Estimates Statements as a result of a decrease in financial assets by $1.889m and non-financial assets by $0.418m and an increase in employee provisions by $0.374m.

3.2.3Budgeted financial statements tables

Departmental

Table 3.2.1: Comprehensive income statement (showing net cost of services)
(for the period ended 30June)

Estimated / Budget / Forward / Forward / Forward
actual / estimate / estimate / estimate / estimate
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
$’000 / $’000 / $’000 / $’000 / $’000
EXPENSES
Employee benefits / 39,514 / 40,225 / 40,765 / 41,112 / 41,152
Supplier expenses / 58,031 / 59,052 / 59,241 / 58,657 / 58,699
Depreciation and amortisation / 1,337 / 1,263 / 1,160 / 1,110 / 1,050
Total expenses / 98,882 / 100,540 / 101,166 / 100,879 / 100,901
LESS:
OWN-SOURCE INCOME
Gains
Other / 41,789 / 46,627 / 46,759 / 46,798 / 46,845
Total gains / 41,789 / 46,627 / 46,759 / 46,798 / 46,845
Total own-source income / 41,789 / 46,627 / 46,759 / 46,798 / 46,845
Net cost of (contribution by)
services / 57,093 / 53,913 / 54,407 / 54,081 / 54,056
Revenue from government / 53,493 / 52,650 / 53,247 / 52,971 / 53,006
Surplus (deficit) attributable to
the Australian Government / (3,600) / (1,263) / (1,160) / (1,110) / (1,050)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus / – / – / – / – / –
Total other comprehensive income / – / – / – / – / –
Total comprehensive income (loss) / (3,600) / (1,263) / (1,160) / (1,110) / (1,050)
Total comprehensive income (loss)
attributable to the Australian
Government / (3,600) / (1,263) / (1,160) / (1,110) / (1,050)
Note: Impact of net cash appropriation arrangements
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
$’000 / $’000 / $’000 / $’000 / $’000
Total comprehensive income (loss)
less depreciation/amortisation
expenses previously funded through
revenue appropriations / (3,600) / – / – / – / –
Plus depreciation/amortisation expenses
previously funded through revenue
appropriations1 / – / (1,263) / (1,160) / (1,110) / (1,050)
Total comprehensive income (loss)
as per the statement of
comprehensive income / (3,600) / (1,263) / (1,160) / (1,110) / (1,050)

Prepared on Australian Accounting Standards basis.

1.From 2010–11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation and amortisation expenses of Financial Management and Accountability Act 1997agencies were replaced with a separate capital budget provided through Bill 1 equity appropriations. See Table 3.2.5 for more information on the departmental capital budget.