Management and Accountability

Senior Management Team

Mr Allan Asher resigned as Ombudsman on 28 October 2011. Ms Alison Larkins has acted as Ombudsman from then until the new Ombudsman, Mr Colin Neave AM, took up his appointment on 17 September 2012.

Ms Larkins’ substantive position is Deputy Ombudsman. This position remained vacant from 28 October 2011 until 18 April 2012, when Mr George Masri was appointed acting Deputy Ombudsman. Mr Masri was acting in the position as at 30 June 2012 until Ms Larkins returned to her position on 17 September 2012.

The remuneration for the Ombudsman and Deputy Ombudsman is set by a Determination made by the Remuneration Tribunal. See Note 11 in the Financial Statements for further details on executive remuneration.

Senior Management

The Ombudsman and the Deputy Ombudsman make up the Executive, and together with five Senior Assistant Ombudsmen comprise the Senior Management team. L–R, Helen Fleming, Diane Merryfull, Rodney Lee Walsh, Tracey Frey, Justine Jones, George Masri, and Alison Larkins.

At 30 June 2012, areas of responsibility were divided among Senior Assistant Ombudsmen as follows.

Corporate Governance

The 2010–13 Strategic Plan sets out the office’s strategic objectives for the reporting period.

In 2011–12, the office undertook a major planning process that involved reviewing our strategic priorities, organisational structure, key work practices and support requirements. The aim was to consider how the office could meet the strategic objectives in an environment of tightened resources and increased demands for complaint handling services. Implementation of a new organisational structure and re-engineering of practices, support and business plans will occur in stages commencing early 2012–13. A range of projects has been identified to support the implementation.

During the year, the Senior Management team considered monthly reports on finance, human resources, operations and information technology.

Management Committees

Management committees are set up to assist the Executive and Senior Management team with decision making in key areas. The committees make recommendations to the Senior Management team, which meets monthly.

Senior Management team

The Senior Management team comprises the Ombudsman, Deputy Ombudsman and Senior Assistant Ombudsmen. It meets monthly to discuss a broad range of issues relating to the work of the office.

Internal Audit Committee

As required by the Financial Management and Accountability Act 1997 (FMA Act), the office has an Internal Audit Committee. The committee’s role is to review and, where necessary, make improvement to the:

In addition, the Audit Committee advises the Ombudsman:

At 30 June 2012, the Audit Committee was chaired by the Deputy Ombudsman. In addition to the chair, membership comprised three Senior Executive Service (SES) officers and two external independent members. Observers included representatives from the Australian National Audit Office (ANAO), PricewaterhouseCoopers (the office’s internal auditors) and the Chief Financial Officer.

During 2011–12, PricewaterhouseCoopers conducted one internal audit and commenced another to be finalised in 2012–13. In addition, they completed one project implementation review. The office is implementing the recommendations from the audit; the Audit Committee is monitoring progress against each action item.

Occupational Health and Safety Committee

The office’s Occupational Health and Safety (OH&S) Committee is made up of elected representatives from each office and is chaired by the Assistant Director, Human Resources, who represents management. The committee met twice during the year.

Workplace Relations Committee

The Deputy Ombudsman chairs the Workplace Relations Committee. It comprises employee, management and union representatives, and is the main consultative body on workplace conditions within the office. The committee met eight times during the year and considered matters such as human resources policies, learning and development, and change management and workplace issues.

Corporate governance practices

The office’s risk management activities are overseen by the Internal Audit Committee. The risk management framework comprises an overarching risk management policy and a strategic risk management plan. The Senior Management team reviews the strategic risks quarterly as part of the business planning process.

The office continues to participate in the annual Comcover Risk Management Benchmarking Survey, which independently assesses the risk management arrangements.

Fraud prevention and control

During the year, the office reviewed and updated its fraud control plan and fraud risk assessment. The risk of fraud remains low for the office. The Internal Audit Committee oversees the implementation of the Fraud Control Plan.

I certify that the Office of the Commonwealth Ombudsman has:

  • prepared fraud risk assessments and fraud control plans
  • appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the specific needs of the office
  • taken all reasonable measures to minimise the incidence of fraud in the office and to investigate and recover the proceeds of fraud against the office.

Colin Neave
Commonwealth Ombudsman

Ethical Standards

The office maintained its commitment to ethical standards by ensuring staff were aware of the Australian Public Service Values and Code of Conduct. The office’s induction package includes relevant documentation and training information, as well as internal policies such as the Harassment Prevention Policy and the Work Practice Manual. The office’s ethical standards are reinforced regularly through mechanisms such as the internal quality assurance process.

Business continuity planning

The purpose of the office’s Business Continuity Plan is to ensure that the most critical work of the office can continue with minimal disruption, or be quickly resumed, in the event of a disaster. A thorough review of the plan was undertaken during the year to bring it up-to-date with current business practices and arrangements.

Complaint management

The office has an established internal complaints and reviews process, which allows reviews about Ombudsman decisions and complaints about service quality to be resolved fairly and informally. In 2011–12, the office evaluated its practices against its own Better Practice Guide to Complaint Handling. The outcome of the review will be considered in the context of further improvements to complaint handling processes, and processes for accepting and monitoring complaints about the office’s service delivery. The office’s complaints mechanism is set out in its service charter. More information about the review process is provided in Chapter 2.

Accessibility

In developing and maintaining the office’s websites, the priority 1 and 2 checkpoints of the World Wide Web Consortium (W3C) Web Content Accessibility Guidelines 1.0 are used as the benchmark. Activities to ensure compliance include testing colour contrast for the vision impaired, limiting the use of graphics, simplifying navigation and providing a site map, separating document formatting from content with style sheets, providing text equivalents for non-text elements, and improving metadata.

Environmental Matters

Environment policies and management systems

The office continued to encourage staff to manage all resources, including energy, prudently and in an ecologically responsible manner. The Office’s Environmental Management Policy focuses on the conservation of energy within the workplace, including the use of light, computer equipment, water and transport and on recycling.

Compliance and reporting obligations

The office is required to report on certain environmental matters under s 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), and to detail the office’s environmental performance and its contribution to ecologically sustainable development.

Procurement practices

As part of its procurement practices, the office considers factors such as the impact on the environment and human health when considering the value for money of comparable products or services. As a result, the office now purchases recycled paper and recycles many office products, such as files and stationery.

Efficient use of energy, water, paper and other resources

The office recycles toner/printer cartridges, paper and cardboard products, classified waste and cans, bottles and plastic. Staff are encouraged via Workplace Relations Committee communications, intranet items and the induction program to participate in these activities. The office has also introduced an electronic records management system, which helps to reduce paper usage.

When selecting a new office location, one factor taken into consideration was the environmental credentials of potential sites.

The office’s estimated energy consumption per person per year decreased by 11.7% between 2010–11 and 2011–12. This was achieved through the relocation of the Sydney and Perth offices, where a reduction in staff numbers enabled a reduction in the total floor space required.

External scrutiny

Privacy

The office is subject to the Privacy Act 1988. It provides information required for the Personal Information Digest. The Privacy Commissioner did not issue any report or make any adverse comment about the office during the past year.

Court litigation

The office was the respondent in one matter brought by an applicant in the Federal Magistrates Court.

The applicant sought orders, among other things, to set aside the Ombudsman’s decision not to investigate her complaint. The applicant discontinued her application before the matter was determined by the Federal Magistrates Court.

Tribunal litigation

The office was not involved in any tribunal litigation during 2011–12.

Office of the Australian Information Commissioner

The office was the respondent in five matters investigated by the Office of the Australian Information Commissioner (OAIC). All related to decisions under the Freedom of Information Act 1982 (FOI Act) to exempt documents in part or in full.

In one matter, the applicant sought a review of the Ombudsman’s decision not to release documents within the scope of his request. The Freedom of Information Commissioner affirmed the decision that a release of the documents would be a breach of confidence as provided for in s 45 of the FOI Act.

Two matters were withdrawn by the applicant before completion of the Information Commissioner’s review.

The final two matters relate to a decision to exempt in full or in part several documents that were within the scope of the request. Both matters are being reviewed by the Information Commissioner; no decision has yet been made.

Australian Human Rights Commission

The office is subject to the jurisdiction of the Australian Human Rights Commission (AHRC).

In 2011–12, the AHRC advised the office it had received two complaints alleging discrimination by this office. The first complaint related to the manner in which the office handled a complaint. Following an investigation, the AHRC terminated the complaint on the basis that it lacked substance.

The second complaint concerned an alleged disability employment matter. The AHRC terminated this complaint on the basis that there was no reasonable prospect of the matter being settled by conciliation.

People Management

Human resources

During 2011–12, the office reduced the number of staff employed to enable it to operate within budget, while investing in the skills and knowledge of remaining staff through learning and development. The office reduced its headcount from 184 to 149 over the year, including seven through a voluntary redundancies program.

During the reporting period, the office developed and implemented a new Performance Development Program focused on developing and supporting staff capabilities, promoting appropriate behaviours, achieving outputs and aligning individual objectives with organisational priorities. This was an initiative identified and agreed through the new Enterprise Agreement.

Workplace relations

The office’s Enterprise Agreement 2011–14 came into effect on 27 July 2011; it will reach its nominal expiry date on 30 June 2014. The Enterprise Agreement focuses on people, remuneration and employment arrangements, working environment and lifestyle, learning and development, and performance management and improvement.

A total of 143 employees are covered under the Enterprise Agreement. Conditions are provided for the office’s five SES staff under s 24 (1) of the Public Service Act. No staff were employed under Australian Workplace Agreements or common law contracts. There were no Individual Flexibility Agreements.

The Enterprise Agreement does not make provision for performance pay. Salary advancement within each of the non-SES classifications is linked to performance. Determinations under s 24 (1) of the Public Service Act provide for SES annual salary advancement based on performance and do not make provision for performance pay. During the year the office undertook a review of its SES remuneration arrangements and new determinations were agreed in July 2012.

Staffing profile

Including the Ombudsman and Deputy Ombudsman, the average full time equivalent number of employees for the year was 158.5 and the full-time equivalent number of employees as at 30 June 2012 was 139.1.

Table 3.1 shows the number of employees by gender and APS classification and salary range. Table 3.2 shows the office’s staffing profile by location. Tables 3.3 and 3.4 show the office’s part-time employee profile by location and classification. During the year, five employees were engaged on an ongoing basis and 27 ongoing employees left the office, equating to a turnover rate of 18% (compared to 21% the previous year).

There were 44 separations, including ongoing and non-ongoing employees. Table 3.5 shows staff separations by classification at 30 June 2012.

Table 3.1: Staffing profile by gender, APS classification and salary range at 30 June 2012
APS CLASIFICATION AND SALARY RANGE MEN (AS AT 30 JUNE 2012) WOMEN (AS AT 30 JUNE 2012) TOTAL
ONGOING NON-ONGOING ONGOING NON-ONGOING ONGOING NON-ONGOING
AS AT 30 JUNE 2011 AS AT 30 JUNE 2012 AS AT 30 JUNE 2011 AS AT 30 JUNE 2012
APS1 $41,602 - $45,984 - - - - - - - -

APS2 $47,083 –
$52,211

- - - - 2 - 1 -
APS3 $53,630 –
$57,883
- - 2 - 2 2 1 -
APS4 $59,771 –
$64,896
11 - 18 - 34 29 1 -
APS5 $66,666 –
$70,691
8 - 14 - 24 22 3 -
APS6 $72,005 –
$82,712
10 - 19 - 40 29 2 -
EL1 $92,306 –
$109,723
15 1 28 - 46 43 - 1
EL2 $107,478 –
$120,989
7 - 10 - 19 17 - -
SES $170,233 –
$174,902
2 - 3 - 5 5 - -
Statutory officers 1 - - - 2 1 - -
TOTAL 54 1 94 - 174 148 8 1

Note: under the enterprise agreement, employees moving to the office from a higher salary range may be maintained at that salary until increments in the office’s salary range exceed the salary differential. Note: ‘EL’ is ‘Executive Level’.

Table 3.2: Staffing profile by location at 30 June 2012
LOCATION MEN WOMEN TOTAL
ACT 42 65 107
NSW 2 9 11
QLD 3 7 10
SA 3 4 7
VIC 3 8 11
WA 2 1 3
TOTAL 55 94 149
Table 3.3: Staffing profile showing part-time employees by location at 30 June 2012
LOCATION MEN WOMEN TOTAL
ACT 5 15 20
NSW - 1 1
QLD - 2 2
SA - 1 1
VIC - 2 2
WA - - -
TOTAL 5 21 26
Table 3.4: Staffing profile showing part-time employees by classification at 30 June 2012
LOCATION MEN WOMEN TOTAL
APS1 - - -
APS2 - - -
APS3 - 1 1
APS4 1 3 4
APS5 - 7 7
APS6 - 3 3
EL1 3 4 7
EL2 - 3 3
SES 1 - 1
TOTAL 5 21 26
Table 3.5: Staffing profile showing staff separations by classification at 30 June 2012
LOCATION ONGOING NON-ONGOING TOTAL
APS1 - - -
APS2 - 2 2
APS3 - 2 2
APS4 5 3 8
APS5 4 2 6
APS6 12 2 14
EL1 2 2 4
EL2 3 3 6
SES 1 - 1
Statutory Office Holders - 1 1
TOTALS 27 17 44

Career development and training

The office’s learning and development framework includes programs in three areas—leadership, corporate and core business.

The office runs a suite of 11 in-house training modules designed specifically to develop core competency and skills in investigations, inspections, writing, administrative law, office practices and record keeping. These modules are conducted regularly and staff are required to attend sessions that are relevant to their work.

Each staff member is encouraged to undertake learning and development programs that are designed to promote their capability in relation to their corporate and core business training and development.

An electronic scheduling system identifies learning and development opportunities, provides online booking facilities and records the training history for each employee.

In addition, during the reporting period staff representatives delivered a variety of in-house training on information technology, finance, risk and fraud management, bullying and harassment, APS Code of Conduct and investigation workshops across all offices. This led to an increase in consistency in the use of the office’s complaint management system and improved compliance with the requirements of the financial framework and record keeping following the training.

The office supports staff attendance at courses, seminars and conferences identified in their personal development plans. During 2011–12, staff were able to participate in development opportunities offered through job rotation, special project work, higher duties, placements with other agencies and representation on work committees.

The office also supports staff to undertake relevant study at tertiary institutions through study leave and/or financial assistance.

In line with the Enterprise Agreement, the next financial year will see continued emphasis on learning and development strategies. A revised learning and development framework will be developed.

Work health and safety

With the introduction of the new Work Health and Safety Act 2011 (WHS Act), the office developed a Work Health and Safety Strategy 2012–14 and a new intranet page dedicated to work health and safety. Employees were kept up-to-date on developments through information sessions, handouts, emails and intranet news items. All employees were required to complete an e-learning module on the new work health and safety laws and responsibilities.

During the first half of the year, no accidents or injuries occurred that are reportable under s 68 of the Occupational Health and Safety Act 1991 (OH&S Act), or, during the second half of the year, notifiable under s 38 (5) of the WHS Act. There were no investigations conducted within the office under sections 29, 46 or 47 of the OH&S Act or under Part 10 of the WHS Act.

All new employees are advised of the importance and responsibilities of staff and management for health and safety in the workplace during their induction and are required to complete the e-learning module on the new work health and safety laws and responsibilities. New employees undertake a workstation assessment during their first week with the office. Employees who work from home also undertake workplace assessments.

A Work Health and Safety Officer (WHSO) is located at each office site. The WHSOs manage workplace health and safety matters either through the OH&S Committee, regular staff meetings or by seeking assistance from an officer under the WHS Act.

During 2011–12, the office undertook the following health and safety initiatives:

For the fourth consecutive year the office entered a team in the Stromlo Running Festival Corporate Challenge held in February. The office encourages participation of staff and their families as part of the office health and wellbeing programs. This year was another successful event for the office with a significant number of staff and their families and friends participating, helping the office to achieve second placed.

To promote a supportive working environment, the office provides staff with access to an employee assistance program, which includes a confidential counselling service.

Disability strategy

The office has responsibilities under the Commonwealth Disability Strategy framework, including reporting on employer activities through the Australian Public Service Commissioner’s annual State of the Service report, and agency-level material is available in that publication at http://www.apsc.gov.au/publications-and-media/current-publications/state-of-the-service.

Financial Management

The office’s operations are primarily funded through parliamentary appropriations. Revenue is also received from the ACT Government for the provision of ombudsman services in relation to ACT Government agencies and the AFP, when providing police services to the ACT.

Revenue is also received from AusAID to support the work of ombudsmen and similar entities in Indonesia, Papua New Guinea and Pacific Island nations. Details of the Office’s resources are included in Appendix 6.

Financial performance

The office reported an operating loss of $1.3 million for the year ending 30 June 2012. Appropriations have been based on a net cash approach since 2010–11 so the underlying net operating loss (excluding depreciation and amortisation) was $0.3 million, compared to the $1.5 million surplus in 2010–11. The office received approval from the Finance Minister to operate at a loss of $1.6 million that was provided in part to assist in funding a voluntary redundancy program to help reduce future overspends.

Expenses

Total expenses for the office were $23.385 million, an increase of $1.986 million from the prior year. The increases were mainly due to:

Income

Own-source revenue increased by $0.291 million due to an increase in activity in the AusAID program. A new component of the program (for Peru) generated an additional $0.184 million.

Revenue from Government was $19.998 million, an increase of $0.482 million from 2010–11. The increase related to funding for the Public Interest Disclosure measure.

Financial position

The net asset position of the office has reduced by $0.537 million. The main factors driving this were the increase in appropriation receivable resulting from an underspend in capital activity and greater increases in employee provisions and payables and the operating loss.

Assets

The office’s total assets increased to $11.422 million from $10.933 million in 2010–11. The main movements were:

Liabilities

Total liabilities increased by $1.025 million (14.42%). The increase can be attributed to:

Purchasing

Procurement

The Office is committed to achieving the best value for money in its procurement practices. Purchasing practices and procedures are consistent with the Commonwealth Procurement Guidelines and are set out in the Chief Executive’s Instructions.

The Office published its Annual Procurement Plan on the AusTender website (as required under the Commonwealth Procurement Guidelines) to facilitate early procurement planning and to draw to the attention of businesses the office’s planned procurement for the 2011–12 financial year.

The office engages consultants when the expertise required is not available internally, or when the specialist skills required are not available without diverting resources from other higher priority tasks. Consultants are selected by open tender, panel arrangements, select tender or direct sourcing. The main categories of contracts relate to information technology, financial services, human resources services, governance and legal advice.

Consultants

During 2011–12, seven new consultancy contracts were entered into involving total actual expenditure of $0.251 million. No ongoing consultancy contracts were active during 2011–12.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website www.tenders.gov.au.

Table 3.6 shows expenditure on consultancy contracts over the three most recent financial years. The office’s standard contract templates include an ANAO audit clause.

The Office did not sign any contracts in the reporting period of $100,000 or more (inclusive of GST).

The office did not exempt any contracts or standing offers that cost more than $10,000 (including GST) from publication in AusTender.

The office did not administer any grant programs during 2011–12.

Table 3.6: Expenditure on consultancy contracts 2009–10 to 2011–12
YEAR NUMBER OF CONSULTANCY CONTRACTS TOTAL ACTUAL EXPENDITURE
2011–12 7 $251,010
2010–11 7 $185,691
2009–10 4 $154,400

In 2011–12, the office reviewed and upgraded its underlying information communications technology (ICT) infrastructure and use of automation to increase productivity.

A high-level review was undertaken to document the enterprise architecture. One outcome was the identification of several obsolete and ageing infrastructure components. A series of projects was then undertaken to systematically replace various servers, switches and storage components.

Significant benefits achieved through this process have included building a robust ICT infrastructure and improving overall network performance and reliability.

This work has also facilitated the introduction of new technologies, such as Power over Ethernet (PoE) capability. PoE is a technology that allows electrical power to be safely passed over data (Ethernet) cabling. PoE is now used to power the office’s VoIP phone network and has allowed removal of power transformers to these phones. This is part of the overall move to ‘greening’ ICT and reducing the office’s ICT energy use.

Productivity improvements have also resulted from enhancements to existing systems and integration of systems. Examples of this include a new workflow being introduced to the office’s case management system (Resolve), which also had a major upgrade during the year, and greater integration between corporate systems.

The office also began work to replace its out-of-date intranet platform. The new site, to be delivered in 2012–13, will incorporate new functions to help improve staff productivity and access to information and resources.

During the year, the VoIP network was extended to the Perth and Adelaide offices.

Advertising and market research

The office did not undertake any market research activities or advertising campaigns during the 2011–12 financial year.

Commonwealth Ombudsman Annual Report 2011–2012 | Chapter 3

Management and Accountability

Senior Management Team

Mr Allan Asher resigned as Ombudsman on 28 October 2011. Ms Alison Larkins has acted as Ombudsman from then until the new Ombudsman, Mr Colin Neave AM, took up his appointment on 17 September 2012.

Ms Larkins’ substantive position is Deputy Ombudsman. This position remained vacant from 28 October 2011 until 18 April 2012, when Mr George Masri was appointed acting Deputy Ombudsman. Mr Masri was acting in the position as at 30 June 2012 until Ms Larkins returned to her position on 17 September 2012.

The remuneration for the Ombudsman and Deputy Ombudsman is set by a Determination made by the Remuneration Tribunal. See Note 11 in the Financial Statements for further details on executive remuneration.

Senior Management

The Ombudsman and the Deputy Ombudsman make up the Executive, and together with five Senior Assistant Ombudsmen comprise the Senior Management team. L–R, Helen Fleming, Diane Merryfull, Rodney Lee Walsh, Tracey Frey, Justine Jones, George Masri, and Alison Larkins.

At 30 June 2012, areas of responsibility were divided among Senior Assistant Ombudsmen as follows.

  • Helen Fleming, Human Services, States and Public Contact Team:
    • specialist advice and complaints relating to DHS (including Centrelink, Child Support and Medicare) and relevant policy departments
    • oversight of Northern Territory Emergency Response (NTER) and Closing the Gap activities and complaints from Indigenous people
    • point of contact for all approaches to the office made by telephone, email or online
    • management and oversight of the Adelaide, Brisbane, Melbourne, Perth and Sydney offices.
  • Tracey Frey, Organisational Services and Business Support:
    • corporate services and office support, comprising security, property, human resources, records management and governance
    • financial operations, risk management and business planning
    • information technology and communications infrastructure.
  • Justine Jones (acting), Immigration and Overseas Students:
    • specialist advice and complaints relating to DIAC
    • oversight of immigration detention
    • reviews of the circumstances of detainees who have been held in immigration detention for two years or longer
    • complaints from overseas students about private education and training providers.
  • Diane Merryfull, Financial Services, Justice and Defence:
    • specialist advice and complaints relating to the Australian Defence Force, Department of Defence, Defence Housing Australia and Department of Veterans’ Affairs
    • complaints and investigations relating to Australian Government law enforcement agencies’ activities
    • inspection of law enforcement agencies’ records for statutory compliance, adequacy and comprehensiveness
    • specialist advice and complaints relating to the ATO
    • complaints relating to the ACT Ombudsman function
    • specialist advice and complaints relating to Australia Post and registered postal operators of the Postal Industry Ombudsman scheme.
  • Rodney Lee Walsh, Legal, Strategic Projects, Support and Policy:
    • specialist advice and complaints relating to more than 40 Australian Government agencies with low complaint numbers
    • work practices and procedures
    • public affairs and outreach
    • management of the office’s International Program and related AusAID projects
    • in-house legal and policy advice.

Corporate Governance

The 2010–13 Strategic Plan sets out the office’s strategic objectives for the reporting period.

In 2011–12, the office undertook a major planning process that involved reviewing our strategic priorities, organisational structure, key work practices and support requirements. The aim was to consider how the office could meet the strategic objectives in an environment of tightened resources and increased demands for complaint handling services. Implementation of a new organisational structure and re-engineering of practices, support and business plans will occur in stages commencing early 2012–13. A range of projects has been identified to support the implementation.

During the year, the Senior Management team considered monthly reports on finance, human resources, operations and information technology.

Management Committees

Management committees are set up to assist the Executive and Senior Management team with decision making in key areas. The committees make recommendations to the Senior Management team, which meets monthly.

Senior Management team

The Senior Management team comprises the Ombudsman, Deputy Ombudsman and Senior Assistant Ombudsmen. It meets monthly to discuss a broad range of issues relating to the work of the office.

Internal Audit Committee

As required by the Financial Management and Accountability Act 1997 (FMA Act), the office has an Internal Audit Committee. The committee’s role is to review and, where necessary, make improvement to the:

  • adequacy of governance arrangements (internal control environment)
  • operational effectiveness of the risk management framework
  • adequacy of controls designed to ensure the office’s compliance with legislation
  • content of reports of internal and external audits, for the purpose of identifying material that is relevant to the office, and advising the Ombudsman about good practices
  • adequacy of the office’s response to reports of internal and external audits
  • coordination of work programs relating to internal and external audits, as far as possible.

In addition, the Audit Committee advises the Ombudsman:

  • about action to be taken on significant matters of concern, or significant opportunities for improvement, that are mentioned in reports of internal and external audits
  • on the preparation and review of the office’s financial statements
  • about the Ombudsman’s obligations under the Act
  • about the internal audit plans of the office
  • about the professional standards to be used by internal auditors in the course of carrying out audits in the office.

At 30 June 2012, the Audit Committee was chaired by the Deputy Ombudsman. In addition to the chair, membership comprised three Senior Executive Service (SES) officers and two external independent members. Observers included representatives from the Australian National Audit Office (ANAO), PricewaterhouseCoopers (the office’s internal auditors) and the Chief Financial Officer.

During 2011–12, PricewaterhouseCoopers conducted one internal audit and commenced another to be finalised in 2012–13. In addition, they completed one project implementation review. The office is implementing the recommendations from the audit; the Audit Committee is monitoring progress against each action item.

Occupational Health and Safety Committee

The office’s Occupational Health and Safety (OH&S) Committee is made up of elected representatives from each office and is chaired by the Assistant Director, Human Resources, who represents management. The committee met twice during the year.

Workplace Relations Committee

The Deputy Ombudsman chairs the Workplace Relations Committee. It comprises employee, management and union representatives, and is the main consultative body on workplace conditions within the office. The committee met eight times during the year and considered matters such as human resources policies, learning and development, and change management and workplace issues.

Corporate governance practices

The office’s risk management activities are overseen by the Internal Audit Committee. The risk management framework comprises an overarching risk management policy and a strategic risk management plan. The Senior Management team reviews the strategic risks quarterly as part of the business planning process.

The office continues to participate in the annual Comcover Risk Management Benchmarking Survey, which independently assesses the risk management arrangements.

Fraud prevention and control

During the year, the office reviewed and updated its fraud control plan and fraud risk assessment. The risk of fraud remains low for the office. The Internal Audit Committee oversees the implementation of the Fraud Control Plan.

I certify that the Office of the Commonwealth Ombudsman has:

  • prepared fraud risk assessments and fraud control plans
  • appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the specific needs of the office
  • taken all reasonable measures to minimise the incidence of fraud in the office and to investigate and recover the proceeds of fraud against the office.

Colin Neave
Commonwealth Ombudsman

Ethical Standards

The office maintained its commitment to ethical standards by ensuring staff were aware of the Australian Public Service Values and Code of Conduct. The office’s induction package includes relevant documentation and training information, as well as internal policies such as the Harassment Prevention Policy and the Work Practice Manual. The office’s ethical standards are reinforced regularly through mechanisms such as the internal quality assurance process.

Business continuity planning

The purpose of the office’s Business Continuity Plan is to ensure that the most critical work of the office can continue with minimal disruption, or be quickly resumed, in the event of a disaster. A thorough review of the plan was undertaken during the year to bring it up-to-date with current business practices and arrangements.

Complaint management

The office has an established internal complaints and reviews process, which allows reviews about Ombudsman decisions and complaints about service quality to be resolved fairly and informally. In 2011–12, the office evaluated its practices against its own Better Practice Guide to Complaint Handling. The outcome of the review will be considered in the context of further improvements to complaint handling processes, and processes for accepting and monitoring complaints about the office’s service delivery. The office’s complaints mechanism is set out in its service charter. More information about the review process is provided in Chapter 2.

Accessibility

In developing and maintaining the office’s websites, the priority 1 and 2 checkpoints of the World Wide Web Consortium (W3C) Web Content Accessibility Guidelines 1.0 are used as the benchmark. Activities to ensure compliance include testing colour contrast for the vision impaired, limiting the use of graphics, simplifying navigation and providing a site map, separating document formatting from content with style sheets, providing text equivalents for non-text elements, and improving metadata.

Environmental Matters

Environment policies and management systems

The office continued to encourage staff to manage all resources, including energy, prudently and in an ecologically responsible manner. The Office’s Environmental Management Policy focuses on the conservation of energy within the workplace, including the use of light, computer equipment, water and transport and on recycling.

Compliance and reporting obligations

The office is required to report on certain environmental matters under s 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), and to detail the office’s environmental performance and its contribution to ecologically sustainable development.

Procurement practices

As part of its procurement practices, the office considers factors such as the impact on the environment and human health when considering the value for money of comparable products or services. As a result, the office now purchases recycled paper and recycles many office products, such as files and stationery.

Efficient use of energy, water, paper and other resources

The office recycles toner/printer cartridges, paper and cardboard products, classified waste and cans, bottles and plastic. Staff are encouraged via Workplace Relations Committee communications, intranet items and the induction program to participate in these activities. The office has also introduced an electronic records management system, which helps to reduce paper usage.

When selecting a new office location, one factor taken into consideration was the environmental credentials of potential sites.

The office’s estimated energy consumption per person per year decreased by 11.7% between 2010–11 and 2011–12. This was achieved through the relocation of the Sydney and Perth offices, where a reduction in staff numbers enabled a reduction in the total floor space required.

External scrutiny

Privacy

The office is subject to the Privacy Act 1988. It provides information required for the Personal Information Digest. The Privacy Commissioner did not issue any report or make any adverse comment about the office during the past year.

Court litigation

The office was the respondent in one matter brought by an applicant in the Federal Magistrates Court.

The applicant sought orders, among other things, to set aside the Ombudsman’s decision not to investigate her complaint. The applicant discontinued her application before the matter was determined by the Federal Magistrates Court.

Tribunal litigation

The office was not involved in any tribunal litigation during 2011–12.

Office of the Australian Information Commissioner

The office was the respondent in five matters investigated by the Office of the Australian Information Commissioner (OAIC). All related to decisions under the Freedom of Information Act 1982 (FOI Act) to exempt documents in part or in full.

In one matter, the applicant sought a review of the Ombudsman’s decision not to release documents within the scope of his request. The Freedom of Information Commissioner affirmed the decision that a release of the documents would be a breach of confidence as provided for in s 45 of the FOI Act.

Two matters were withdrawn by the applicant before completion of the Information Commissioner’s review.

The final two matters relate to a decision to exempt in full or in part several documents that were within the scope of the request. Both matters are being reviewed by the Information Commissioner; no decision has yet been made.

Australian Human Rights Commission

The office is subject to the jurisdiction of the Australian Human Rights Commission (AHRC).

In 2011–12, the AHRC advised the office it had received two complaints alleging discrimination by this office. The first complaint related to the manner in which the office handled a complaint. Following an investigation, the AHRC terminated the complaint on the basis that it lacked substance.

The second complaint concerned an alleged disability employment matter. The AHRC terminated this complaint on the basis that there was no reasonable prospect of the matter being settled by conciliation.

People Management

Human resources

During 2011–12, the office reduced the number of staff employed to enable it to operate within budget, while investing in the skills and knowledge of remaining staff through learning and development. The office reduced its headcount from 184 to 149 over the year, including seven through a voluntary redundancies program.

During the reporting period, the office developed and implemented a new Performance Development Program focused on developing and supporting staff capabilities, promoting appropriate behaviours, achieving outputs and aligning individual objectives with organisational priorities. This was an initiative identified and agreed through the new Enterprise Agreement.

Workplace relations

The office’s Enterprise Agreement 2011–14 came into effect on 27 July 2011; it will reach its nominal expiry date on 30 June 2014. The Enterprise Agreement focuses on people, remuneration and employment arrangements, working environment and lifestyle, learning and development, and performance management and improvement.

A total of 143 employees are covered under the Enterprise Agreement. Conditions are provided for the office’s five SES staff under s 24 (1) of the Public Service Act. No staff were employed under Australian Workplace Agreements or common law contracts. There were no Individual Flexibility Agreements.

The Enterprise Agreement does not make provision for performance pay. Salary advancement within each of the non-SES classifications is linked to performance. Determinations under s 24 (1) of the Public Service Act provide for SES annual salary advancement based on performance and do not make provision for performance pay. During the year the office undertook a review of its SES remuneration arrangements and new determinations were agreed in July 2012.

Staffing profile

Including the Ombudsman and Deputy Ombudsman, the average full time equivalent number of employees for the year was 158.5 and the full-time equivalent number of employees as at 30 June 2012 was 139.1.

Table 3.1 shows the number of employees by gender and APS classification and salary range. Table 3.2 shows the office’s staffing profile by location. Tables 3.3 and 3.4 show the office’s part-time employee profile by location and classification. During the year, five employees were engaged on an ongoing basis and 27 ongoing employees left the office, equating to a turnover rate of 18% (compared to 21% the previous year).

There were 44 separations, including ongoing and non-ongoing employees. Table 3.5 shows staff separations by classification at 30 June 2012.

Table 3.1: Staffing profile by gender, APS classification and salary range at 30 June 2012
APS CLASIFICATION AND SALARY RANGE MEN (AS AT 30 JUNE 2012) WOMEN (AS AT 30 JUNE 2012) TOTAL
ONGOING NON-ONGOING ONGOING NON-ONGOING ONGOING NON-ONGOING
AS AT 30 JUNE 2011 AS AT 30 JUNE 2012 AS AT 30 JUNE 2011 AS AT 30 JUNE 2012
APS1 $41,602 - $45,984 - - - - - - - -

APS2 $47,083 –
$52,211

- - - - 2 - 1 -
APS3 $53,630 –
$57,883
- - 2 - 2 2 1 -
APS4 $59,771 –
$64,896
11 - 18 - 34 29 1 -
APS5 $66,666 –
$70,691
8 - 14 - 24 22 3 -
APS6 $72,005 –
$82,712
10 - 19 - 40 29 2 -
EL1 $92,306 –
$109,723
15 1 28 - 46 43 - 1
EL2 $107,478 –
$120,989
7 - 10 - 19 17 - -
SES $170,233 –
$174,902
2 - 3 - 5 5 - -
Statutory officers 1 - - - 2 1 - -
TOTAL 54 1 94 - 174 148 8 1

Note: under the enterprise agreement, employees moving to the office from a higher salary range may be maintained at that salary until increments in the office’s salary range exceed the salary differential. Note: ‘EL’ is ‘Executive Level’.

Table 3.2: Staffing profile by location at 30 June 2012
LOCATION MEN WOMEN TOTAL
ACT 42 65 107
NSW 2 9 11
QLD 3 7 10
SA 3 4 7
VIC 3 8 11
WA 2 1 3
TOTAL 55 94 149
Table 3.3: Staffing profile showing part-time employees by location at 30 June 2012
LOCATION MEN WOMEN TOTAL
ACT 5 15 20
NSW - 1 1
QLD - 2 2
SA - 1 1
VIC - 2 2
WA - - -
TOTAL 5 21 26
Table 3.4: Staffing profile showing part-time employees by classification at 30 June 2012
LOCATION MEN WOMEN TOTAL
APS1 - - -
APS2 - - -
APS3 - 1 1
APS4 1 3 4
APS5 - 7 7
APS6 - 3 3
EL1 3 4 7
EL2 - 3 3
SES 1 - 1
TOTAL 5 21 26
Table 3.5: Staffing profile showing staff separations by classification at 30 June 2012
LOCATION ONGOING NON-ONGOING TOTAL
APS1 - - -
APS2 - 2 2
APS3 - 2 2
APS4 5 3 8
APS5 4 2 6
APS6 12 2 14
EL1 2 2 4
EL2 3 3 6
SES 1 - 1
Statutory Office Holders - 1 1
TOTALS 27 17 44

Career development and training

The office’s learning and development framework includes programs in three areas—leadership, corporate and core business.

The office runs a suite of 11 in-house training modules designed specifically to develop core competency and skills in investigations, inspections, writing, administrative law, office practices and record keeping. These modules are conducted regularly and staff are required to attend sessions that are relevant to their work.

Each staff member is encouraged to undertake learning and development programs that are designed to promote their capability in relation to their corporate and core business training and development.

An electronic scheduling system identifies learning and development opportunities, provides online booking facilities and records the training history for each employee.

In addition, during the reporting period staff representatives delivered a variety of in-house training on information technology, finance, risk and fraud management, bullying and harassment, APS Code of Conduct and investigation workshops across all offices. This led to an increase in consistency in the use of the office’s complaint management system and improved compliance with the requirements of the financial framework and record keeping following the training.

The office supports staff attendance at courses, seminars and conferences identified in their personal development plans. During 2011–12, staff were able to participate in development opportunities offered through job rotation, special project work, higher duties, placements with other agencies and representation on work committees.

The office also supports staff to undertake relevant study at tertiary institutions through study leave and/or financial assistance.

In line with the Enterprise Agreement, the next financial year will see continued emphasis on learning and development strategies. A revised learning and development framework will be developed.

Work health and safety

With the introduction of the new Work Health and Safety Act 2011 (WHS Act), the office developed a Work Health and Safety Strategy 2012–14 and a new intranet page dedicated to work health and safety. Employees were kept up-to-date on developments through information sessions, handouts, emails and intranet news items. All employees were required to complete an e-learning module on the new work health and safety laws and responsibilities.

During the first half of the year, no accidents or injuries occurred that are reportable under s 68 of the Occupational Health and Safety Act 1991 (OH&S Act), or, during the second half of the year, notifiable under s 38 (5) of the WHS Act. There were no investigations conducted within the office under sections 29, 46 or 47 of the OH&S Act or under Part 10 of the WHS Act.

All new employees are advised of the importance and responsibilities of staff and management for health and safety in the workplace during their induction and are required to complete the e-learning module on the new work health and safety laws and responsibilities. New employees undertake a workstation assessment during their first week with the office. Employees who work from home also undertake workplace assessments.

A Work Health and Safety Officer (WHSO) is located at each office site. The WHSOs manage workplace health and safety matters either through the OH&S Committee, regular staff meetings or by seeking assistance from an officer under the WHS Act.

During 2011–12, the office undertook the following health and safety initiatives:

  • arranged health assessments, where necessary
  • conducted individual workplace assessments
  • facilitated eye examinations, where necessary
  • made first aid facilities and supplies available, and provided first aid training to First Aid Officers (refresher and senior first aid for new officers)
  • provided workplace health and safety training to WHSOs
  • conducted regular simulated fire evacuations
  • provided harassment and bullying information sessions
  • targeted individual health awareness by providing flu vaccinations to employees free-of-charge, a healthy lifestyle reimbursement of up to $299 per annum, individual health assessments and mental health first aid training.

For the fourth consecutive year the office entered a team in the Stromlo Running Festival Corporate Challenge held in February. The office encourages participation of staff and their families as part of the office health and wellbeing programs. This year was another successful event for the office with a significant number of staff and their families and friends participating, helping the office to achieve second placed.

To promote a supportive working environment, the office provides staff with access to an employee assistance program, which includes a confidential counselling service.

Disability strategy

The office has responsibilities under the Commonwealth Disability Strategy framework, including reporting on employer activities through the Australian Public Service Commissioner’s annual State of the Service report, and agency-level material is available in that publication at http://www.apsc.gov.au/publications-and-media/current-publications/state-of-the-service.

Financial Management

The office’s operations are primarily funded through parliamentary appropriations. Revenue is also received from the ACT Government for the provision of ombudsman services in relation to ACT Government agencies and the AFP, when providing police services to the ACT.

Revenue is also received from AusAID to support the work of ombudsmen and similar entities in Indonesia, Papua New Guinea and Pacific Island nations. Details of the Office’s resources are included in Appendix 6.

Financial performance

The office reported an operating loss of $1.3 million for the year ending 30 June 2012. Appropriations have been based on a net cash approach since 2010–11 so the underlying net operating loss (excluding depreciation and amortisation) was $0.3 million, compared to the $1.5 million surplus in 2010–11. The office received approval from the Finance Minister to operate at a loss of $1.6 million that was provided in part to assist in funding a voluntary redundancy program to help reduce future overspends.

Expenses

Total expenses for the office were $23.385 million, an increase of $1.986 million from the prior year. The increases were mainly due to:

  • an increase in employee expenses of $2.515 million of which $2.025 million reflects the higher than budgetted staffing level and the impact of the Certified Agreement increase, and $0.345 million for voluntary redundancy payments
  • a decrease in supplier expenses of $0.486 million from a reduction in contractor and consultancy costs and a reduction in lease costs;
  • an increase in depreciation and amortisation of $0.230 million resulting from the appreciation in the value of leasehold improvement and plant and equipment assets in June 2011;
  • a decrease in write down and impairment of assets of $0.28 million. The value in 2010–11 resulted from a one-off adjustment to a make good provision relating to a lease disposal.

Income

Own-source revenue increased by $0.291 million due to an increase in activity in the AusAID program. A new component of the program (for Peru) generated an additional $0.184 million.

Revenue from Government was $19.998 million, an increase of $0.482 million from 2010–11. The increase related to funding for the Public Interest Disclosure measure.

Financial position

The net asset position of the office has reduced by $0.537 million. The main factors driving this were the increase in appropriation receivable resulting from an underspend in capital activity and greater increases in employee provisions and payables and the operating loss.

Assets

The office’s total assets increased to $11.422 million from $10.933 million in 2010–11. The main movements were:

  • an increase in receivables of $1.051 million. This is due to underspends of the Departmental Capital Budget for 2011–12 of $0.759 million due to the reprioritisation of projects during the year
  • a reduction in lease incentive assets resulting from the maturing of leases and rent-free periods expiring, and
  • a reduction to non-financial assets corresponding to the delay in implementing capital projects.

Liabilities

Total liabilities increased by $1.025 million (14.42%). The increase can be attributed to:

  • the increase in supplier payables of $0.308 million mainly relating to leasehold improvement works in Adelaide ($0.208 million) and lease creditors
  • an increase in fixed lease increases of $0.255 million reflecting the new lease in Adelaide, and
  • an increase in employee provisions of $0.374 million due to the impact of the Certified Agreement increase.

Purchasing

Procurement

The Office is committed to achieving the best value for money in its procurement practices. Purchasing practices and procedures are consistent with the Commonwealth Procurement Guidelines and are set out in the Chief Executive’s Instructions.

The Office published its Annual Procurement Plan on the AusTender website (as required under the Commonwealth Procurement Guidelines) to facilitate early procurement planning and to draw to the attention of businesses the office’s planned procurement for the 2011–12 financial year.

The office engages consultants when the expertise required is not available internally, or when the specialist skills required are not available without diverting resources from other higher priority tasks. Consultants are selected by open tender, panel arrangements, select tender or direct sourcing. The main categories of contracts relate to information technology, financial services, human resources services, governance and legal advice.

Consultants

During 2011–12, seven new consultancy contracts were entered into involving total actual expenditure of $0.251 million. No ongoing consultancy contracts were active during 2011–12.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website www.tenders.gov.au.

Table 3.6 shows expenditure on consultancy contracts over the three most recent financial years. The office’s standard contract templates include an ANAO audit clause.

The Office did not sign any contracts in the reporting period of $100,000 or more (inclusive of GST).

The office did not exempt any contracts or standing offers that cost more than $10,000 (including GST) from publication in AusTender.

The office did not administer any grant programs during 2011–12.

Table 3.6: Expenditure on consultancy contracts 2009–10 to 2011–12
YEAR NUMBER OF CONSULTANCY CONTRACTS TOTAL ACTUAL EXPENDITURE
2011–12 7 $251,010
2010–11 7 $185,691
2009–10 4 $154,400

In 2011–12, the office reviewed and upgraded its underlying information communications technology (ICT) infrastructure and use of automation to increase productivity.

A high-level review was undertaken to document the enterprise architecture. One outcome was the identification of several obsolete and ageing infrastructure components. A series of projects was then undertaken to systematically replace various servers, switches and storage components.

Significant benefits achieved through this process have included building a robust ICT infrastructure and improving overall network performance and reliability.

This work has also facilitated the introduction of new technologies, such as Power over Ethernet (PoE) capability. PoE is a technology that allows electrical power to be safely passed over data (Ethernet) cabling. PoE is now used to power the office’s VoIP phone network and has allowed removal of power transformers to these phones. This is part of the overall move to ‘greening’ ICT and reducing the office’s ICT energy use.

Productivity improvements have also resulted from enhancements to existing systems and integration of systems. Examples of this include a new workflow being introduced to the office’s case management system (Resolve), which also had a major upgrade during the year, and greater integration between corporate systems.

The office also began work to replace its out-of-date intranet platform. The new site, to be delivered in 2012–13, will incorporate new functions to help improve staff productivity and access to information and resources.

During the year, the VoIP network was extended to the Perth and Adelaide offices.

Advertising and market research

The office did not undertake any market research activities or advertising campaigns during the 2011–12 financial year.