Welcome to Our Annual Report for 2009-10

Contents

The Commission at a glance

Welcome to our Annual Report for 2009-10

Letter of transmittal

Guide to the report

Part 1 Overview

Public Service Commissioner’s review

Commission overview

Part 2 Performance review

Sub-program 1.1: APS policy, review and evaluation

Sub-program 1.2: Development programs and employment services

Part 3 Management and accountability

Part 4 Annual report of the Merit Protection Commissioner

Part 5 Financial statements

Appendix A: Agency resource and outcome resource statements

Appendix B: Report on performance under the Commonwealth Disability Strategy

Appendix C: Occupational health and safety

Appendix D: Freedom of information

Appendix E: Advertising and market research

Appendix F: Ecologically sustainable development and environmental performance

Appendix G: Staffing profile and equal employment opportunity

Appendix H: List of requirements

Abbreviations and acronyms

The Commission at a glance

Our role

The Australian Public Service Commission promotes good practice in strengthening the capability of the Australian Public Service (APS) workforce to meet the evolving needs of citizens and the government, supports leadership and learning and development in the APS, and fosters ethical behaviour and workplaces that value diversity.

We also have an important evaluation role in working with agencies to ensure that the APS is performing effectively and consistently with the APS Values.

Our mission

To support a high-performing Australian Public Service.

Highlights from 2009–10

During 2009–10, the Commission:

• contributed to the work of the Advisory Group that developed the report Ahead of the game: Blueprint for the reform of Australian Government administration (the Blueprint)
• began thesignificant task of implementing many of the recommendations from the blueprint—which included work to reposition the Commission and build its capacity to support a more systematic approach to the development of the APS workforce
• established a whole-of-government ICT career structure and a whole-of-government strategic ICT workforce plan
• tabled the 2008–09 State of the Service Report in November 2009. The report provides an insight into APS workforce trends and capabilities, and areas of focus for the APS in addressing future challenges
• conducted a second census of Indigenous APS employees to canvass and record their views on a range of issues, including the pathways to employment, work–life balance, job satisfaction, people management, and learning and development opportunities. The Commission is working with agencies to develop robust strategies in response to the key findings
• gained responsibility for Australian Government policies for agreement-making, classification structures, APS pay and employment conditions, work level standards and workplace relations advice from the Department of Education, Employment and Workplace Relations. The transfer took place on 1July2010
• undertook an in-depth, external survey of participants at our key leadership programs and commissioned research into program models to build future capability in strategic policy leadership.

Welcome to our Annual Report for 2009-10

The Australian Public Service Commission is a central agency within the Prime Minister and Cabinet portfolio. The Commission supports two statutory office holders: the Public Service Commissioner—who is also agency head—and the Merit Protection Commissioner.

This report has been prepared in accordance with section 63(2) of the Public Service Act 1999 and reflects the Requirements for annual reports for departments, executive agencies and FMA Act bodies endorsed by the Joint Committee of Public Accounts and Audit in June2010.

© Commonwealth of Australia 2010

ISSN 1032 0350

ISBN 978-0-9806404-8-9

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General’s Department, 3–5 National Circuit, Barton ACT 2600, or posted at:

Acknowledgments

Lead coordinator: Edward M Hay

Group coordinators: Gail Baker, Paul Casimir, Sarah Hardy, Margaret Lovell, Qiumeng Mao

Design and typesetting: Jayne Abel, Paul Joice

Letter of transmittal

AUSTRALIAN PUBLIC SERVICE COMMISSIONER
STEPHEN SEDGWICK
October 2010

The Honourable Julia Gillard MP
Prime Minister
Parliament House
Canberra ACT 2600

Dear Prime Minister

In accordance with sections 44 and 63 of the Public Service Act 1999, I am pleased to present my annual report for the year ended 30June 2010. This report includes the annual report of the Merit Protection Commissioner, as required by section51 of the Public Service Act1999.

This report has been prepared in accordance with section 63(2) of the Public Service Act 1999, which requires that you table the report in parliament. It reflects the Requirements for annual reports for departments, executive agencies and FMA Act bodies endorsed by the Joint Committee of Public Accounts and Audit in June2010.

The report includes the Commission’s audited financial statements as required by section57 of the Financial Management and Accountability Act1997.

In addition, and as required by the Commonwealth Fraud Control Guidelines, I certify that I am satisfied that the Commission has in place appropriate fraud control mechanisms that meet the Commission’s needs and that comply with the guidelines applying in2009–10.

Yours sincerely

Stephen Sedgwick
Australian Public Service Commissioner

Guide to the report

The Australian Public Service Commissioner’s annual report 2009–10 is provided in accordance with the provisions of sections 44 and 63 of the Public Service Act 1999 (the PSAct). The report has been developed with the aim of transparent reporting under the Commission’s outcome and sub-program structure.

Part 1: Overview

The report’s overviewincludes the Public Service Commissioner’s review and an overview of the Commission’s role and responsibilities, outcome and sub-program structure, organisational structure and financial performance. The Commissioner’s review summarises some of the principal developments affecting the work of the Commission, including highlights of some of the significant achievements during 2009–10.

Part 2: Performance review

The performance review provides a detailed discussion of the Commission’s performance under its two sub-programs. The performance information in Part 2 covers the Commission as a whole. To ensure comprehensive reporting against the sub-program structure, the performance review includes the work of the Merit Protection Commissioner.

Part 3: Management and accountability

The management and accountability component of the report provides an overview of the Commission’s approach to corporate governance and the management of resources within the Commission.

Part 4: Annual report of the Merit Protection Commissioner

In accordance with the provisions of section 51 of the PS Act, Part 4 contains the Merit Protection Commissioner’s report on her statutory role and responsibilities.

Part 5: Financial statements

Part 5 contains the Commission’s audited financial statements for 2009–10.

Appendices

The appendices provide detailed information on staffing and other matters relevant to the Commission’s activities, including a statement as required under section8(1) of the Freedom of Information Act1982 at AppendixD.

Contact us

The Commission welcomes your comments on this report. To make a comment, or to request more information, please contact:

Steve Tomlin
Client Engagement
Australian Public Service Commission
16 Furzer St
Phillip ACT 2606

Tel: (02) 6202 3526
Fax: (02) 6264 5153

Email:

Internet:

Internet address for report:

Part 1Overview

This part of the report includes the Public Service Commissioner’s review and an overview of the Commission’s role and responsibilities, outcome and sub-program structure, organisation structure and financial performance.

Public Service Commissioner’s review

This is my first annual report since I became Public Service Commissioner in December 2009. Iam pleased to present this report in what has been a challenging year and one of transition for the Commission.

I would like to acknowledge the significant contributions of my predecessor, Ms Lynelle Briggs, and the Deputy Public Service Commissioner, MsCarmel McGregor, who acted as Public Service Commissioner prior to my commencement. Ms McGregor provided strong leadership in the Commission during a time of uncertainty and made an invaluable contribution to the work of the Advisory Group that developed the recommendations of the report Ahead of the game: Blueprint for the reform of Australian Government administration (the Blueprint).

The Commission commenced the year with a new corporate plan identifying strategies to continue to support a high-performing Australian Public Service (APS). We had a number of challenges in bedding down a new structure, investigating different ways of managing our regional presence, managing a challenging budget which includes a requirement to fund certain activities through revenue from our fee-for-service activities and implementing a more centralised approach to managing the review work of the Merit Protection Commissioner.

The then Prime Minister established an Advisory Group in September 2009 to review Australian Government administration and develop a blueprint for reform. The Commission made a submission to the review and argued in favour of a significant refresh of a number of aspects of the APS human capital framework, which in some instances would involve an enhanced role for the Commission.

The Blueprint was released in March 2010 and the then Prime Minister announced, in May 2010, that the government had accepted all the recommendations from the report. The report outlines a comprehensive reform agenda to ensure that the APS can meet today’s challenges and better respond to the emerging needs of the Australian community. It was pleasing to note that the report drew substantially from the Commission’s submission in developing the recommendations accepted by government.

The Commission strongly supports the analysis underpinning the Blueprint, which provides for an enhanced emphasis on the development of the capabilities of the APS workforce. The Commission accepts the challenge to reposition itself to better support APS agencies in their pursuit of this endeavour.

In the latter part of the year, the Commission began the significant task of implementing many of the recommendations from the Blueprint—recommendations that impact across the whole APS and which require a significant revision to the Commission’s business model, organisational structure and workforce capability.

Towards the end of the year the Commission was transitioning towards a new organisational structure and business model, supported by activities to secure a broader range of capabilities in human capital. This also included the machinery of government transfer to the Commission of the function for Australian Government policies for agreement-making, classification structures, APS pay and employment conditions, work level standards and workplace relations advice from the Department of Education, Employment and Workplace Relations.

This review is in two parts: the business-as-usual imperative and our achievements in 2009–10, and the initiatives underway to place the Commission in the best possible position to respond positively and quickly to the government’s APS reform agenda.

2009–10 in review

The Commission works to support a high-performing Australian Public Service.

A high-performing APS must be able to meet the changing needs of government and society in order to be relevant and fit for purpose.

Responding to an external environment characterised by rapid change has become the day-to-day business of the APS, and a key challenge for the public service is to be ready for the future. Through research and scenario planning the APS needs to be prepared for and well positioned to influence change.

Against this background, the Commission identified five strategic priorities for 2009–10 in our corporate plan.

Supporting the APS to be ready for the future

The Commission supports the APS to be future-ready using research and evaluation to assist in the transformation of the APS. The Commission identified key priorities for public sector reform and innovation to help agencies adapt and deliver on the priorities set for them by government.

In 2009–10, the Commission provided a submission to the Advisory Group established to undertake the review into the reform of Australian Government administration. The submission proposed a new and increased emphasis on human capital, workforce planning and capability management in the APS and substantial changes to the responsibilities of the Commission in these areas.

The Commission established a whole-of-government ICT career structure and a whole-of-government strategic ICT workforce plan. The ICT workforce plan provides a high-level overview of the issues affecting the ICT workforce and strategies to address the future human capital needs of ICT employment in the APS. Using this framework, agencies will be better able to plan for, develop and manage a qualified, satisfied and flexible ICT workforce, while providing an attractive career path for ICT professionals within the APS.

Embedding the government’s ethics and integrity agenda

The Commission supports high standards of accountability, transparency, ethics and integrity for the APS through the Ethics Advisory Service; active promotion of the APS Values and Code of Conduct; policy advice on and promotion of systems and approaches to deliver the government’s objectives; and an increased emphasis on ethical decision-making.

In 2009–10, the Commission issued guidance to agencies on the disclosure of official information and on protocols for online media participation, and provided access to web-based information and publications and advice to APS employees on ethical and integrity concerns. We worked with agencies to implement the ethics contact officer network and provided support for the network, including through the establishment of a GovDex online discussion forum.

The Commission added to the available resources for ethics contact officers by publishing a new guide on ethical decision-making by the Merit Protection Commissioner and developing two new vodcasts.

Strengthening our engagement with clients and ensuring delivery around their needs

The Commission has built alliances with key clients and connected to stakeholders to deliver seamless, joined-up services. The Commission takes a proactive approach to networking and understanding client needs so our services can be highly effective. In coming months the Commission plans to introduce a revised client engagement model that is intended to better position us to deliver support that is well informed by an understanding of the needs of individual agencies.

In 2009–10, the Commission undertook an in-depth external survey of participants at our key leadership programs and commissioned research into program models to build future capability in strategic policy leadership. The report indicated that the Commission’s leadership programs were meeting the needs of participants.

In response to feedback from agencies, extensive research into the development of strategic policy leadership was conducted in 2009. This research will be used to develop initiatives to build agency capability in strategic policy development.

Driving agency performance and capability

The Commission uses learning and development services, consultancy services and review work to help agencies to improve their performance, as well as evaluating APS performance through the State of the Service Report.

The 2008–09 State of the Service Report was tabled in November 2009. The report provides an insight into APS workforce trends and capabilities, and areas of focus for the APS in addressing future challenges, including strategic workforce planning; improved leadership and employee engagement within a values-driven framework; and increased cross-agency collaboration. I am particularly pleased that the report was used extensively by the Advisory Group in developing its themes and recommendations in the Blueprint.

Leading by example

The Commission has developed leading-edge programs and products and strives to model best practice. We have challenged ourselves to implement our own best practice recommendations and, to this end, have embarked on a systematic review of internal human resource policies and procedures. This work will proceed over coming months.

In 2009–10, the Commission completed negotiations to establish a new employee enterprise agreement, which commenced on 2October 2009 and expires on 30June 2011. It delivered modest salary increases to staff. We also introduced revised work level standards for APS and Executive Level classifications.

The Commission implemented an e-recruitment system that enables potential employees to apply for advertised positions through a streamlined process via the web and we completed the redevelopment of our intranet to take advantage of improved knowledge management capabilities.

The Blueprint

The APS is constantly challenged to become more responsive, agile and flexible to meet the rising expectations of government and citizens in a complex and uncertain world. Taxpayers expect no less. A public service that aspires to be the best expects no less of itself.

The Advisory Group on APS reform, of which I was a member, identified a number of challenges that are increasing the degree of difficulty of modern public service.

We face rising expectations of citizens and governments, rapid technological change (including in respect of administrative technologies), a world of considerable complexity, a tight labour market and constrained budget resources.

To tackle these challenges, the public service needs to get ahead of the game—a goal captured in the Blueprint. It offers a way to respond to the changing external environment by driving change and improvement in the public service in four key areas:

• service delivery and effectiveness
• strategic advice and strengthened leadership
• workforce capability
• efficiency of operations through consistently high standards.

The 28 recommendations in the Blueprint will help achieve this by adapting and improving the public service’s tools, structures and culture, and the Commission will play a key role in promoting this change.

A strengthened Commission

The Blueprint sets out a strengthened role for the Commission as a central agency—to provide expertise, guidance, performance monitoring and some centralised services to all the agencies in the public service and to support secretaries in our joint responsibility as stewards of the APS.

Today’s challenges require greater monitoring, transparency and accountability across the APS and stronger support for better human capital planning and development—an enhanced role for the Commission.