People and resource management
Our workforce
Financial management
Services, facilities, and the official establishments
Management of information services
Use of consultants and service contractors
Our workforce
Awards
The performance of particular staff members during 2001–02 was recognised by external and internal awards.
Public Service Medals (PSMs) were awarded as follows.
- On Australia Day 2002, Jane Halton received a PSM for outstanding public service in the development of the Government’s social reform agenda – the citation noted that, under her stewardship of the department’s social policy group, there had been a sustained focus on welfare reform, measures aimed at combating illicit drug use and illegal immigration, and measures aimed at strengthening families and communities.
- On The Queen’s Birthday 2002, David Borthwick received a PSM for outstanding public service in the development and progression of the Government’s economic policies – the citation mentioned his contribution to microeconomic reform, competition and budgetary policies and health financing policy. The award recognised his work in earlier years as well as his work with this department.
The Australia Day Achievement Awards are part of the department’s internal recognition system. The medallions are provided by the National Australia Day Council to promote the celebration of Australia Day. They recognise the person’s or the team’s distinctive contributions, as made either during the course of the preceding year or over a longer timeframe. Four awards were made in 2001–02, namely to:
- Pam Ward – for her contribution to the smooth running of International Division, playing a key role in its overall performance
- Terry Crane of Corporate Support Branch – for his contribution to the effective operation of the department during 2001, particularly in relation to the refurbishment of 4 Treasury Place, Melbourne, and transition arrangements for the arrival of the new Governor-General, Dr Peter Hollingworth, and the departure of Sir William Deane
- The Welfare Reform Task Force Secretariat (Katrina Edwards, Simon Cotterell, Peter Southwell, Caitlin MacLeod, Kathryn James and Erin Rule) – for producing an innovative package of measures which set the scene for a complete overhaul of Australia’s welfare system
- The Unauthorised Arrivals Group (Jenny Bryant, Mike Gottaas, Mathew
Healey, Chris Ingham, Michael Potts, Harinder Sidhu, Rachel Stephen-Smith,
Rick Wells and Catherine Wildermuth) – for their contribution to the
development and implementation of policies to handle unauthorised
boat arrivals.
Staffing, graduate recruitment and workforce planning
As at 30 June 2002, a total of 345 staff were employed by the department. Details of the department’s staffing profile are set out in appendix 1. Sixty-four per cent of staff employed by the department were women, 4 per cent were in the SES and 25 per cent were at Executive Levels 1 or 2. Some 2.3 per cent of staff had identified themselves as being of Aboriginal or Torres Strait Islander background.
The department recruited a total of nine graduates in 2001–02. As in previous years, our graduates completed an extensive training and development programme in their first year of service, including sessions on policy formulation and advice, legislation and government processes and communication skills.
Detailed information on the categories of staff employed by the department is available in appendix 1.
A series of workforce planning reports were introduced during the year, including an employee commencement and cessation profile, a quarterly leave report, an age profile analysis and a graduate movement report. The department continued to maintain a highly skilled and relatively youthful workforce, with approximately 32 per cent of staff employed being in the 25–35 years age group and 29 per cent in the 35–45 years age group.
The department’s Occupational Health and Safety (OH&S) policy was reviewed during the year. Some of the key changes included formal recognition of the department’s OH&S outsourcing arrangement, a focus on the importance of OH&S training for all staff and a new requirement to draw attention to and address OH&S during periods of high activity.
Comcare was notified of six cases under section 68 of the Occupational Health and Safety (Commonwealth Employees) Act 1991.
Free health and fitness checks were provided for staff as part of the Health Expo (with 249 people participating in one or more of the activities). One hundred and thirty staff elected to participate in the department’s influenza vaccination programme and every new staff member received a workstation assessment.
The department maintained a strong focus on employee relations during the year with a number of initiatives aimed at enhancing the work environment. Regular lunchtime briefing sessions were conducted for staff on a range of topics including the Budget, CHOGM, Salary Packaging and Harmony Day. The sessions featured a mixture of internal and external speakers and were well patronised by staff.
Workplace diversity
Workplace diversity in the department was supported by the Workplace Diversity Programme and a suite of personnel management guides that could be accessed by staff through the intranet. The department commenced a review of its Workplace Diversity Programme during the year, inviting comment from staff on the existing programme. A revised programme will be completed in 2002–03.
During the year the department introduced an online facility for staff to update or provide initial workplace diversity data. The arrangement was designed to complement the data collection arrangements which already take effect when staff commence employment with the department. The initial response to the new facility was encouraging, with a total of 20 staff providing data.
Disability strategy
The department’s responsibilities in 2001–02 embraced the roles of ‘Policy Adviser’ and ‘Employer’ as detailed in the Commonwealth Disability Strategy.
Development of policy advice by the Social Policy Division took account of the needs of a range of target groups. A key area of activity for the division in 2001–02 included the development of policy advice on the next Commonwealth–State–Territory Disability Agreement.
As an employer, the department remained committed to ensuring that all people seeking employment with us were treated fairly and had equal access to employment opportunities.
People with disabilities considering employment with the department were encouraged to identify that they had a disability, to ensure that the staff selection process accommodated any special needs they might have. The recruitment page on the department’s internet site outlined the support available for prospective applicants with disabilities, including the availability of a TTY facility for hearing or speech-impaired applicants, and provided a direct link to the Workplace Diversity Programme web page. The department continued to support the needs of staff with disabilities through the Disability Action Plan, the Workplace Diversity Programme and merit based staff selection.
Remuneration
Remuneration for employees is being examined in the context of negotiations for a new certified agreement and Australian Workplace Agreements (AWAs). The existing SES remuneration policy is being revised to cover all SES and Executive Level employees employed under AWAs.
The remuneration of SES employees in the department was determined using the following general principles:
- remuneration is to be clearly linked to performance to provide better rewards for better work
- arrangements for determining remuneration should be sufficiently flexible to reflect the particular skills, experience and work responsibilities of each SES employee
- remuneration determinations should be demonstrably fair and equitable between employees but with market factors considered in individual cases where appropriate
- remuneration levels may take account of efficiency gains, including
any reduction in administrative complexity and cost achieved through
the simplification of rules.
The salary ranges for SES bands remained unchanged; they are set out in the table below.
| SES Band |
$
|
|---|---|
| 1 |
80,000 – 110,000
|
| 2 |
100,000 – 130,000
|
| 3 |
120,000 – 160,000
|
The points in these salary ranges were determined having regard to the annual survey of SES remuneration commissioned by the Department of Employment and Workplace Relations and general economic conditions. The salary of each individual within those ranges is determined having regard to the employee’s performance appraisal assessment, their skills and experience and the market for their particular combination of skills and experience. Where agreed by both parties, individual employees within particular bands may be paid outside those salary ranges.
The remuneration of Executive Level employees who had signed AWAs continued to be based on the prescribed salary rates for Executive Level staff in the department’s Certified Agreement 2000–02. As at 30 June 2002 the department had 84 current Executive Level AWAs.
Performance payments were made to SES staff and Executive Levels 1 and 2 staff who have signed AWAs for the appraisal cycle ending 30 September 2001. For SES staff, the amount of performance bonus was a matter for the Secretary’s judgement, with 15 per cent of the employee’s salary being the maximum payable. The average performance bonus for Executive Level 1 and Executive Level 2 staff was $3,413 and $4,384 respectively.
Performance payments made to SES and Executive Level staff are set out in the table below.
| Level |
Staff eligible
|
Staff paid
|
Amount paid
|
|---|---|---|---|
| SES Band 3 |
3
|
3
|
$45,604
|
| SES Band 2 |
10
|
9
|
$78,421
|
| SES Band 1 |
26
|
23
|
$161,296
|
| Executive Level 2 |
47
|
47
|
$206,075
|
| Executive Level 1 |
55
|
55
|
$187,737
|
| Total |
141
|
137
|
$679,133
|
Totals
A total of 228 staff were covered by the department’s Certified Agreement 2000–02 as at 30 June 2002. The indicative salary ranges for non-SES staff are set out in the table below.
| PMC Band | Level |
$
|
|---|---|---|
| 1 | APS 1–3 |
27,750 – 38,500
|
| 2 | APS 4–6 |
39,750 – 56,750
|
| 3 | Executive Level 1 |
61,000 – 68,000
|
| 4 | Executive Level 2 |
71,000 – 84,500
|
Information on SES staff who received or were due to receive total remuneration of $100,000 or more is set out in Note 10 to the Financial Statements in this report.
Performance appraisal, training and development
A revised Performance Appraisal and Development (PAD) Scheme was introduced during the year following a process of extensive consultation with staff. The major changes to the scheme included more manageable and improved documentation and a new set of generic performance indicators designed to complement the distinctive challenges in each division.
Under the PAD Scheme, responsibility for individual training and development requirements rests with employees and their manager. The Performance/Career Development component of the performance agreement is completed at the start of the performance appraisal cycle and is monitored by the employee and their manager over the life of the agreement.
During the year the department supported the individual training and development needs of staff by promoting relevant training and development programmes and maintaining a database of appropriate courses on the intranet. The department supplemented the individual requirements of staff with a range of training and development programmes including an induction programme, performance appraisal awareness, information technology training, the work experience interchange programme, studies assistance, a full-time study award, lunchtime briefing sessions, and the graduate programme.
A total of 89 staff participated in 260 structured training courses during the year.
One staff member commenced an exchange posting to the United Kingdom with a member of the United Kingdom Civil Service joining the department for a two-year exchange. The department also facilitated the placement of an officer from the Canadian public service in a programme of placements with finance oriented agencies. The department continued its involvement in the Senior Women in Management Programme, with one staff member participating. In a similar manner another employee took advantage of the department’s full-time study award to complete tertiary studies. A further 15 staff accessed the department’s studies assistance provisions to continue their tertiary studies on a part-time basis.
Four staff participated in the SES Career Development Assessment Centres organised by the Australian Public Service Commission.
Other employee relations work
The Employee Relations Section played a major role in all the human resource management initiatives noted above. The section also:
- organised a lunchtime briefing programme with a mix of departmental and external speakers
- delivered statistical and other reporting for the Annual Report, Workplace Diversity Report and State of the Service Report
- revised policy guidelines including those on separation, travel, OH&S, work level standards, ‘whistleblowing’ and mail handling
- contributed to APS-wide and other surveys, including surveys on salaries, workforce planning and employment of people of diverse backgrounds
- conducted the tender renegotiation for a salary packaging adviser
- provided employee relations support to the Office of Aboriginal and Torres Strait Islander Affairs (OATSIA) (a division of the Department of Immigration and Multicultural and Indigenous Affairs, which shared our Barton premises prior to its move to Belconnen, ACT, in June 2002).
Financial management
Output Pricing Review
The department completed its first Output Pricing Review under the accrual budget framework. Pricing reviews are an important tool in assessing an agency’s resourcing level and cost effectiveness. The department was the only agency to complete its review within the 2002–03 budget timetable.
The results of the review were encouraging. They showed that the cost of delivering policy advice and the cost of corporate services were well below the Commonwealth average, indicating that we had been operating in a relatively cost efficient manner. All recommendations of the Output Pricing Review were accepted by the Department of Finance and Administration.
During 2001–02 the Financial Management and Contracts Section also:
- coordinated and produced the department’s 2002–03 Portfolio Budget Statements (including through input to the Commonwealth Ombudsman’s budget submission) and 2001–02 Additional Estimates
- managed key corporate contracts, including for corporate support services, internal audit, banking and annual report coordination
- implemented the department’s first Risk Management Plan
- reviewed and implemented the revised Fraud Control Plan for 2002–04
- developed an Internal Audit Plan 2002–03
- maintained and revised the CEIs
- finalised the financial aspects of the OATSIA transfer
- provided budget management support to CHOGM
- supported the department’s representatives at Senate hearings held in February and May 2002
- coordinated the 2001–02 work plan process and mid-year review (and commenced the 2002–03 work plan process)
- prepared the 2000–01 financial statements and whole-of-government accounts
- introduced electronic purchasing or ‘e-procurement’ to the department
through a system called B2Buy.
A comprehensive discussion of the department’s performance is in the Overview section of this report.
Purchasing
Purchasing activities were conducted in accordance with the Commonwealth Procurement Guidelines, and the department met the Government’s timetable for trading electronically for simple procurement with suppliers who wish to do so with open systems.
Discretionary grants
The discretionary grants administered by the department were grants for women’s programmes and a grant to the Australiana Fund. Details of the women’s programme grants are set out under Output 2.2 and information on the grant made to the Australiana Fund is presented under Output 4.4.
Services, facilities, and the official establishments
The work programme of the Facilities and Services Section in 2001–02 included:
- conducting day-to-day management of the Prime Minister’s official residences, The Lodge in Canberra and Kirribilli House in Sydney (as noted in this report under Output 4.4)
- facilitating official functions at the residences
- providing secretariat support to the Official Establishments Trust
- managing the maintenance and conservation programme at the official residences
- implementing revised accommodation arrangements for departmental groups including the OSW and the CHOGM Task Force
- introducing power saving initiatives to reduce the department’s energy consumption, as described previously
- conducting lease reviews for the department’s premises at Phillip Street, Sydney, New South Wales and National Circuit, Barton
- upgrading departmental security arrangements following the 11 September 2001 terrorist attacks in the United States
- developing an updated departmental security plan.
Management of information services
Information systems
The department made good progress with the implementation of the Government’s online strategy. The department reported to the National Office of the Information Economy, in mid-January 2002, that it had met the core intent of the Government’s commitment that all appropriate services that could be delivered online be available online.
Recommendations from a review of the operations of the MCU were implemented during the year. Higher levels of integrity for records were achieved by changes to processes for handling and tracking ministerial correspondence. All incoming correspondence is now electronically scanned and stored in the department’s Parliamentary Correspondence Management System (PCMS). PCMS was upgraded during the year and staff were trained in its use. The new system delivered enhanced functionality and improved response times.
The department developed a new information technology security policy to manage the security aspects of the organisation’s systems. Security was enhanced with the addition of secure dial-up facilities and the extension of secure internet access to all desktops in the department.
The Prime Minister’s website was moved to a secure online environment to comply with the requirements of both the Protective Security Manual 2000 and the Defence Signals Directorate.
The department’s information technology and telecommunications operations continued to be provided and managed by Telstra Enterprise Services (TES) Proprietary Limited (formerly known as Advantra). While there was a continued improvement in service delivery and overall client satisfaction with the services provided, there were some instances in which the department exercised its contract rights to impose service penalties against TES for failing to meet its service obligations.
The Library
The Library collected, managed and maintained a core library collection of print, CD-ROM, online and web based resources to support the information needs of the department. It also provided a comprehensive reference and research service, utilising the most appropriate library and information technology resources.
In 2001–02 the Library’s major achievements included:
- the development of a user-friendly Library internet portal for the intranet, to facilitate easy and effective use of the internet for clients
- the provision of professional advice and assistance to the OSW in the development of its resource centre
- the completion of a stocktake of the Library’s collection and identification of appropriate subject areas for ‘weeding’ and for development
- the rationalisation of the serials collection to better meet the
information needs of the department.
Records management
The department completed a review of its corporate record keeping requirements and undertook related research and analysis. Following this, a draft functions based Records Disposal Authority was issued to the department by the National Archives of Australia to allow for the disposal and archival of records that support core functional responsibilities of the department.
Other important achievements during 2001–02 included:
- a file census of ‘Top Secret’ departmental files
- a pilot of file inquiry access for divisional support unit staff to the Records Management System (TRIM)
- provision of updated access to TRIM for appropriate Rel Corp and
Government Division staff, to enable them to create and maintain staff
personnel files and FOI files respectively.
Ministerial correspondence
The Ministerial Correspondence Unit registered, coordinated, quality-checked and despatched VIP, organisation, general and electorate ministerial correspondence and briefings. It also provided advice, assistance and training to others in the processing of ministerial correspondence and the use of the ministerial correspondence management system.
As noted in the opening chapters of this report, the MCU processed approximately 121,000 pieces of correspondence (an average of 483 per day), addressed to the Prime Minister or Ministers Assisting. Some 1,772 briefings (minutes) were provided to the Prime Minister, Parliamentary Secretary and Ministers Assisting the Prime Minister, covering all four output groups and the department’s various corporate support and information services functions.
Use of consultants and service contractors
The policies and procedures for selecting consultants, and approving expenditure for them, are set out in the department’s CEIs. The procurement method is determined having regard to the nature of the work involved and the broad cost thresholds set out in the CEIs.
During the year, 101 consultants were engaged to carry out research projects or to provide professional and technical advice that could not be provided by staff of the department.
Table 8 below shows total expenditure on all consultancy services, covering both payments made on new contracts let in 2001–02 and on contracts let in previous years. To produce useful trend information expenditure on CHOGM has been excluded. The larger consultancy contracts – those to the value of $10,000 or more – are detailed in appendix 4 to this report, along with brief notes on the procurement methods used.
| Distribution of expenditure on consultancy services | ||||||
| 2001–02 | 2000–01 | 1999–2000 | ||||
| Number let | Total expenditure $ | Number let | Total expenditure $ | Number let | Total expenditure $ | |
| Policy advice and government support services | 20 | 353,436 | 16 | 446,242 | 44 | 7,201,419 |
| Women’s policy | 76 | 5,289,037 | 19 | 1,743,589 | 34 | 1,147,648 |
| Corporate services | 5 | 66,181 | 3 | 73,168 | 16 | 159,258 |
| Total | 101 | 5,708,654 | 38 | 2,262,999 | 94 | 8,508,325 |
Note: Totals for 2000–01 and 2001–02 exclude contracts let for CHOGM. Totals for 1999–2000 exclude contracts let for Indigenous Policy.
In addition, and not included in this table, there were two consultants engaged by the CHOGM Task Force at a total cost of $30,815. For further details see appendix 4.
The only new large service contract signed in 2001–02 was an interim contract with Synergi Travel (formerly Jetset) for domestic travel (equivalent to $200,000 per month). Against the background of the collapse of Ansett, and the uncertainties surrounding the future of the domestic air travel industry, the department decided to temporarily extend its contract with Synergi to cover domestic travel in addition to international travel. It is expected that a full market testing exercise for domestic travel will be undertaken in 2002–03.
In addition, a number of service contracts from earlier years continued in 2001–02. There were five that exceeded $100,000 when originally signed, namely those with Telstra Enterprise Services, for information technology and telecommunications; Rel Corp Management Services, for salary and leave processing and related tasks; Synergi Travel, for international travel; Rose Cleaning, for office cleaning; and Chubb Security, for building security.
None of those contracts constituted ‘competitive tendering and contracting’ as defined for reporting purposes in the Requirements for Annual Reports.
| Contents | Secretary's Review | Portfolio and Departmental Overview
|
| Report on Performance
| Corporate Governance |
| Coolum
CHOGM | Appendixes | Financial Statements |
| Glossary | Subject Index
|
(c) Commonwealth of Australia 2002
