About Us

Roles and functions

The office safeguards the community in its dealings with Australian Government agencies and certain private sector organisations. We ensure that their administrative actions are fair and accountable by handling complaints, conducting investigations, performing audits and inspections, encouraging good administration and discharging specialist oversight tasks.

The office has five major statutory functions:

1. Complaint investigations: conducting reviews of, and investigations into, the administrative actions of Australian Government officials, agencies and their service providers upon receipt of complaints from individuals, groups or organisations. The role includes investigating the actions of registered private providers of training for overseas students and registered private postal operators.
2. Own-motion investigations: on the Ombudsman's own initiative, conducting investigations into the administrative actions of Australian Government agencies. These investigations often arise from insights gained through handling individual complaints and our other oversight responsibilities.
3. Compliance audits: inspecting the records of agencies such as the Australian Federal Police (AFP) and Australian Crime Commission (ACC) to ensure they comply with legislative requirements applying to selected law enforcement and regulatory agencies.
4. Immigration detention oversight: under s 486O of the Migration Act 1958, reporting to the Immigration Minister on the detention arrangements for people in immigration detention for two years or more (and on a six-monthly basis thereafter). Our reports, as well as the Minister's response, are tabled in the Parliament. In addition, as Immigration Ombudsman we also oversight immigration detention facilities through a programme of regular announced and unannounced visits to detention centres.
5. The Commonwealth Public Interest Disclosure scheme: the Public Interest Disclosure Act 2013 established a Commonwealth Government scheme to encourage public officials to report suspected wrongdoing in the Australian public sector. The office is responsible for promoting awareness and understanding of the Act and monitoring its operation; as well as providing guidance, information and resources about making, managing and responding to public interest disclosures.

Handling complaints and conducting own-motion investigations are our traditional activities, and account for most of our work. The guiding principle in our investigations is to examine whether any administrative action is unlawful, unreasonable, unjust, improperly discriminatory, factually deficient or otherwise wrong.

At the conclusion of an investigation, the Ombudsman may recommend that corrective action be taken by an agency, either specifically in an individual case or more generally, by a change to relevant legislation, administrative policies or procedures.

We seek to foster good public administration within Australian Government agencies by encouraging principles and practices that are sensitive, responsive and adaptive to the needs of members of the public. The office is impartial and independent and does not provide advocacy services for complainants or for agencies.

The Ombudsman may consider complaints about most Australian Government departments and agencies, and most contractors delivering services to the community for, or on behalf of, the Australian Government.

In addition, the Ombudsman Act confers six specialist roles on the Ombudsman:

• Defence Force Ombudsman, to investigate action arising from the service of a member of the Australian Defence Force
• Immigration Ombudsman, to investigate action taken in relation to immigration administration (including monitoring immigration detention)
• Law Enforcement Ombudsman, to investigate conduct and practices of the Australian Federal Police and its members
• Postal Industry Ombudsman, to investigate complaints about Australia Post and private postal operators registered with the Postal Industry Ombudsman scheme

• Taxation Ombudsman, to investigate action taken by the Australian Taxation Office
• Overseas Students Ombudsman, to investigate complaints from overseas students about private education providers in Australia.

The Commonwealth Ombudsman is the ACT Ombudsman in accordance with s28 of the ACT Self-Government (Consequential Provisions) Act 1988 (Cth). The role is performed under the Ombudsman Act 1989 (ACT) and is funded under a services agreement between the Commonwealth Ombudsman and the ACT Government. The ACT Ombudsman Annual Report is submitted separately to the ACT Legislative Assembly.

The new Government announced additional functional changes for the office in its first Federal Budget.

Taxation Ombudsman

A transfer of our Taxation Ombudsman role to the Inspector-General of Taxation (IGT) was announced in the Federal Budget for 2014–15.

Private Health Insurance Ombudsman (PHIO)

From 1 July 2015 this office will take on the responsibility for the PHIO function.

FOI complaints

The handling of freedom of information (FOI) complaints is also due to be taken up by this office from 1 January 2015. All three of these changes are dependent on amendments to legislation.

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Organisational structure

The national office of the Commonwealth Ombudsman is in Canberra. We also have offices in Adelaide, Brisbane, Melbourne, Perth and Sydney.

The Ombudsman and Deputy Ombudsman are statutory officers appointed under the Ombudsman Act. Employees are engaged pursuant to the Public Service Act 1999. Senior Assistant Ombudsmen are Senior Executive Service Band 1 employees. The Executive and Senior Management structure is provided at Figure 1.1.

Figure 1.1: Executive and Senior Management structure at 30 June 2014

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Report on performance

This section summarises the office's performance based on the outcome and programme structure set out in the Portfolio Budget Statements and Portfolio Additional Estimates Statements 2013–14.

An overview of people and financial management performance is provided from page 13. Further financial information is available in the Appendixes.

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Programme objectives, deliverables and key performance indicator analysis

The 2013–14 Portfolio Budget Statements (PBS) provide that the office outcome is:

Fair and accountable administration by Australian Government agencies by investigating complaints, reviewing administrative action and inspecting statutory compliance by law enforcement agencies.

The office's objectives under the PBS are to:

• contribute to the fair treatment of people by the agencies we oversight
• provide an accessible, effective and targeted complaint-handling service
• accurately assess agency compliance with legislation in the agency use of covert or coercive powers.

The office's programme deliverables under the PBS include:

• identification and reporting of significant and systemic problems in public administration including making recommendations and reporting on implementation
• targeted stakeholder engagement through the provision of information and education regarding the role of the office
• contribution to public administration through speeches, reports, submissions and best practice guides
• oversight of selective covert or coercive powers used by relevant agencies.

Our office key performance indicators are:

Qualitative

• handling of investigated complaints meets internal and external service standards
• inspections conducted and reports produced in accordance with legislative and other requirements
• Ombudsman recommendations monitored for implementation within agencies

Quantitative

• investigations, reports and submissions to Parliament and Government completed and timely
• inspections and reports completed within statutory timeframes.

Complaints overview

Complaints and approaches received

In 2013–14 we received 23,529 complaints and other approaches (such as calls received to request a publication), compared to 26,474 received in 2012–13, a decrease of 11%.

The decrease in the number of approaches is not entirely unexpected as a key aim of the improved queuing and auto-messaging system we put in place in late 2012 was to reduce the number of approaches received by our public contact officers which are not within our jurisdiction to investigate.

The reduction in out-of-jurisdiction complaints from 8,377 to 5,952 (a decrease of 29% this year following on an initial decrease of 51% in 2012–13), together with an emphasis on encouraging people to first complain to the agency about which they have a concern, has provided us with an opportunity to address concerns that people were abandoning their calls to our office because they had to wait too long before being able to speak to a public contact officer.

Of the 17,577 in-jurisdiction complaints received this year (compared to 18,097 in 2012–13), 75% related to four agencies: the Department of Human Services (Centrelink 4,966 and Child Support 1,426), Australia Post (4,053), the Department of Immigration and Border Protection (1,380) and the Australian Taxation Office (1,369).

The decrease in in-jurisdiction complaints received in 2013–14 reflects all agencies with the exception of Australia Post, where the number of complaints increased by 11% over the previous year.

We receive approaches by a variety of methods. Table 1.1 shows the methods by which approaches and complaints were received in 2011–12 to 2013–14.

Table 1.1: Approaches by method received, 2011–12 to 2013–14

Complaint handling

The number of complaints that were assessed by investigation officers increased by 19% (10,196 this year and 8,591 in 2012–13). However, the number of complaints that proceeded to be investigated dropped by 27% (2,340 this year and 3,185 in 2012–13).

As with the previous year, this drop in investigations corresponds with our revised complaint management practices and a focus on systemic issues.

Of the complaints investigated, more than 21% required more substantial investigation (categories four and five in our five-category complaint system), with some requiring the involvement of senior managers. This figure is comparable to the two previous years.

There was a 9% decrease in the number of complaints remaining open at the end of the year (945 compared to 1,043 in 2012–13). This follows a conscious effort to improve our performance by seeking to reduce delays in our complaint handling.

Reviews

We have a formal non-statutory review process for complainants who may be dissatisfied with the conclusions we reach and make about their complaint.

In 2013–14 we received 128 requests for review, compared to 149 in 2012–13. The decreased number of requests for review continues to reflect a change in procedure that was implemented in 2011–12, such that the investigation officer first undertakes a reconsideration where a complainant is dissatisfied with the investigation officer's decision. A complainant who remains dissatisfied following the reconsideration may seek a review by an officer not previously involved in the matter.

In terms of dealing with the review requests on hand at the beginning of 2013–14, together with those received during the year, we declined 46 requests, affirmed the original investigation decision in 98 reviews, decided to investigate or further investigate 19 complaints and to change the original investigation decision in five. Three requests for review were withdrawn by complainants.

Of significance was the marked increase in the rate of review requests declined (130%). This followed an increased focus as to whether by undertaking a review there was any reasonable prospect of getting a better outcome for the complainant.

Deliverables

Deliverable 1: Identification and reporting on significant and systemic problems in public administration, including making recommendations and reporting on implementation

The Ombudsman's office identifies and records recurring issues from complaints, statutory reports, inspections and stakeholder engagement.

Significant or systemic issues are pursued with the agencies and the Ombudsman makes recommendations where appropriate to improve public administration.

In April 2014 we released a report of my investigation into service-delivery complaints about the Department of Human Services' Centrelink programme. The case studies in the report illustrate the problems that led 9,600 Centrelink customers to complain to this office between January 2012 and September 2013.

The report includes 12 remedial recommendations to address the problems, to which the department has responded positively by agreeing to implement all, either in full or in part.

We also made a range of submissions on areas of government administration (see Deliverable 3 on page 9).

Deliverable 2: Targeted stakeholder engagement through the provision of information and education regarding the role of the office

In 2013–14 we promoted fairer treatment of people by the agencies we oversight by commencing an own motion investigation into agency internal complaint-handling across government (see Deliverable 3 on page 9).

Our objective is to create a framework for best-practice complaint handling in government agencies. To this end we held two agency forums during the year – one for Commonwealth agencies in April 2014 and another for ACT agencies in May 2014.

A major education task this year was implementing the Commonwealth Public Interest Disclosure (PID) scheme function, established by the Commonwealth Government to encourage public officials to report suspected wrongdoing in the Australian public sector.

We are responsible for promoting awareness and understanding of PID legislation, monitoring its operation, and for providing guidance, information and resources about making, managing and responding to public interest disclosures.

We prepared and disseminated information and education resources, and engaged with a wide range of stakeholders in meetings and working groups. We established information and communication technology and physical security solutions, developed a governance framework, and delivered PID investigation staff training to ensure we were ready to meet the challenges of implementing a significant new Commonwealth integrity measure.

Internationally, we engaged in capacity-building activities with our regional partners, implementing aid proposals we developed in line with Department of Foreign Affairs and Trade (DFAT) guidelines and our regional partners' needs.

We met key milestones in our DFAT funding agreements and our statutory reporting timeframes. Looking ahead, we received confirmation of funding for our Solomon Islands programme.

In relation to our inspection and review functions we engaged with agencies at workshops, training sessions and forums to discuss best practices and risks, and to foster a common understanding of each other's roles and processes.

In accordance with our agreed Immigration Detention Review Visits Schedule, during 2013–14 we visited 18 immigration detention facilities around Australia and offshore. Where appropriate, we identified and reported on systemic issues relating to the management and administration of the immigration detention network in accordance with our visit schedule and inspections methodology.

As part of our Indigenous engagement, officers visited communities in the Kimberley region of Western Australia, Darwin and Alice Springs in the Northern Territory, and Cape York in Queensland.

We are also delivering on our commitments to improve access and equity for members of Australia's culturally and linguistically diverse (CALD) groups under our Office Multicultural Plan 2013–15. We engaged with the Federation of Ethnic Communities' Councils of Australia (FECCA) about our own-motion investigation into agency complaint handling.

Deliverable 3: Contribution to public administration through speeches, reports, submissions and best-practice guides

During 2013–14 we contributed to public administration by delivering speeches and presentations to a wide range of audiences including the:

• Australian Institute of Administrative Law (AIAL), 19 July 2013
• Institute of Public Administration Australia (IPAA), 22 October 2013
• Australian Public Sector Leadership Summit, 25 March 2014
• Canberra Evaluation Forum, 10 April 2014
• 11th International Tax Administration Conference, 14 April 2014
• Australian and New Zealand Ombudsman Association (ANZOA), 30 April 2014
• Customer Service Solutions Conference, 11 June 2014.

My office also made a range of submissions on areas of government administration including:

• the Productivity Commission report on access to justice
• the Parliamentary Inquiry into the Child Support Programme
• the Senate inquiry into the performance of the Australian Securities and Investments Commission
• a Treasury discussion paper on the proposed Small Business and Family Enterprise Ombudsman.

We made four submissions, informed by our inspection and review findings, to parliamentary inquiries including the:

• Legal and Constitutional Affairs Legislation Committee's inquiry into the Telecommunications Amendment (Get a Warrant) Bill 2013 (July 2013)
• Senate Education and Employment Legislation Committee's inquiry into the provisions of the Building and Construction Industry (Improving Productivity) Bill 2013 and the Building and Construction Industry (Consequential and Transitional Provisions) Bill 2013 (November 2013)
• Senate Education and Employment References Committee's inquiry into the Government's approach to re-establishing the Australian Building and Construction Commission (January 2014)
• Legal and Constitutional Affairs References Committee's inquiry into a comprehensive revision of the Telecommunications (Interception and Access) Act 1979 (February 2014).

We also delivered 666 reports on the appropriateness of detention arrangements for people held in detention for two years or more, in accordance with our legislative obligations.

In addition we made statutory annual briefings to the:

• Parliamentary Joint Committee on Law Enforcement under the Parliamentary Joint Committee on Law Enforcement Act 2010, regarding the involvement of the Australian Crime Commission and the AFP in controlled operations under the Crimes Act 1914 (Crimes Act) during the preceding 12 months

• Parliamentary Joint Committee on the Australian Commission for Law Enforcement Integrity under the Law Enforcement Integrity Commissioner Act 2006 regarding the involvement of the Australian Commission for Law Enforcement Integrity in controlled operations under the Crimes Act during the preceding 12 months.

Deliverable 4: Oversight of selective covert or coercive powers used by relevant agencies

The Ombudsman is required by law to inspect the records of certain enforcement agencies in relation to their use of the following covert powers:

• interception of telecommunications and access to stored communications under the Telecommunications (Interception and Access) Act 1979 (TIA Act)
• use of surveillance devices under the Surveillance Devices Act 2004 (SD Act)
• controlled operations conducted under Part IAB of the Crimes Act.

During 2013–14 we completed and reported on 44 inspections and reviews of agency records in accordance with our legislative or policy requirements and reported on the Australian Federal Police's administration of its complaint-management system including:

• 26 inspections under the TIA Act of Commonwealth and state and territory enforcement agencies
• 10 inspections under the SD Act of Commonwealth and state and territory enforcement agencies
• four inspections under Part 1AB of the Crimes Act of Commonwealth enforcement agencies
• two inspections under Part V of the AFP Act
• two reviews under the Fair Work (Building Industry) Act 2012.

We also conducted the first round of inspections of agencies' preservation notice records under the TIA Act – notices given to carriers to prevent them from destroying stored communications before access under the Act. Outcomes of these inspections are reported to the Attorney-General.

Our first review findings of Fair Work Building and Construction's use of its coercive examination powers have also been reported.

Key performance indicators

KP1: Handling of investigated complaints meets internal and external service standards

During 2013–14 we reviewed our internal and external service standards to take account of the impact of the new telephone system introduced in late 2012, and the increased use of 'warm' or second-chance transfer of complaints to agencies. These transfers enable us to give agencies a second opportunity to respond to a complainant without requiring investigation by this office.

Our Operations Branch met our service standard timeframes for finalising the processing of all investigated complaints in 2013–14. However, in 2014–15 we will place increased emphasis on ensuring that we better meet internal communication standards, such as ensuring that we provide complainants with timely updates about our progress in investigating their complaint.

We received 83 service-delivery complaints during 2013–14. This represents less than one per cent of all approaches received by the office in 2013–14.

KP2: Inspections conducted and reports produced in accordance with legislative and other requirements

As well as conducting each inspection and review in accordance with the relevant statutory requirements, the inspections adhered to the office's methodologies, which are aligned to the Australian auditing standards.

This included monitoring the implementation of recommendations we made to agencies as a result of our 2012–13 inspections.

As a result of our 2012–13 inspections we made one formal recommendation to the AFP regarding its use of its powers under the SD Act. The AFP accepted this recommendation and, in response, advised that it developed further guidance for, and provided training to, relevant officers.

We continue to monitor the effectiveness of the AFP's advised measures. The relevant report can be found on our website.

We are also required to report to relevant ministers and the Parliament on the results of our inspections and reviews on an annual or biannual basis. During 2013–14 we submitted all 24 of our statutory reports within the legislated timeframes.

KP3: Ombudsman recommendations monitored for implementation within agencies

My office is monitoring implementation of recommendations to which the agency has agreed in Report No.1 of 2014: Department of Human Services – Investigation into Service Delivery Complaints about Centrelink, by way of ongoing meetings with DHS and review of incoming complaints.

Comments, suggestions and recommendations are also made by my office under s12 (4) of the Ombudsman Act 1976 in respect of the investigation of individual complaints. In addition, agencies may advise us of improvements at which they have arrived themselves to resolve issues that have come to their attention through our complaint investigations.

We monitor agencies' commitments to improvements by way of ongoing liaison and review of issues arising in incoming complaints of a similar kind.

During the reporting period my office followed up with the Department of Immigration and Border Protection on its implementation of recommendations from Ombudsman reports on investigations into the transfer of 22 detainees from Villawood Immigration Detention Centre to a NSW correctional facility in 2011, and suicide and self-harm in the immigration detention network in 2013.

I am satisfied with the department's implementation of these recommendations and my office will continue to monitor these issues into the future.

We have previously reported on issues with the administration of Income Management in the Northern Territory (Report 04 of 2012). We have continued to monitor the concerns that were identified in our 2012 investigation report and 2013 Annual Report.

We reported that we had received a number of complaints from people who had their income-management funds directed to pay rent for a dwelling that did not attract a rent obligation. We continue to monitor this issue. DHS is conducting a review to identify any other people in this situation.

From information obtained from NT Housing, DHS identified 45 providers who are receiving payments facilitated by DHS for a variety of services including rent. DHS has undertaken to keep our office updated on the outcome of its review.

We have also identified other non-rent payments through income management to other-third party providers that we are investigating further.

We have continued to monitor automated decisions placing people on income management when certain vulnerability indicators apply.

KP4: Investigations, reports and submissions to Parliament and Government completed and timely

As reported above, in 2013–14 we made formal submissions to House of Representatives and Senate standing and joint select committees on a broad range of public interest matters. We also made a number of submissions to other government activities and reviews. All of our investigations, reports and submissions were completed in accordance with relevant statutory, policy or agreed timeframes.

KP5: Inspections and reports completed within statutory timeframes

The office is also required to report to relevant ministers and the Parliament on the results of our inspections and reviews on an annual or biannual basis. During 2013–14 we submitted all 24 of our statutory reports within the legislated timeframes.

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Summary

Our core purpose is to influence government to treat people fairly through our investigation of its administrative actions. By pursuing this objective, we hope to facilitate:

• fairer treatment of people by the agencies we oversight
• more accessible, effective and targeted complaint-handling services
• improved agency compliance with legislation in the use of selected intrusive and coercive powers
• the efficient and effective conduct of our business.

We can best achieve this through collaboration, cooperation, influence and persuasion, and by bringing to bear a degree of rigour, objectivity, independence and consideration that commends our work and activities to all our stakeholders, and enables us to realise improvements to administration that benefit both government and the public.

I believe we did that in 2013–14 and, as a result, we will continue to be held in high regard for our expertise and experience in public administration, as well as our organisational competence and reliability.

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Senior Leadership Group

The Ombudsman, Mr Colin Neave AM, was appointed on 17 September 2012 for a period of five years to 16 September 2017.

The Deputy Ombudsman, Mr Richard Glenn, was appointed on 2 September 2013 for a period of five years to 1 September 2018.

Mr George Masri was Acting Deputy Ombudsman immediately before Mr Glenn's appointment.

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

Senior Assistant Ombudsmen and their areas of responsibility are as follows:

• Helen Fleming, Operations Branch.
• Doris Gibb, Immigration and Overseas Students Branch.
• Lynette MacLean, Corporate Services Branch.
• George Masri, Social Services, Indigenous and Pubic Interest Disclosure Branch.
• Rodney Lee Walsh, Justice, Finance and Territories Branch.

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Corporate governance

Our 2013–15 Strategic Plan outlined our strategic objectives and our 2013–14 Annual Corporate Plan set out our key business priorities for this reporting period. These plans were developed following a major restructure and planning process commenced in 2011–12 and implemented in 2012–13.

The plans reflect our new organisational structure and re-engineered work practices, which enable us to better focus on systemic issues, key stakeholder engagement, and the cooperative development with government agencies of proactive strategies to promote better complaints resolutions.

We also envisage ongoing changes to our corporate governance during 2014–15 as we further bed in and refine the new structure and implement the functional changes announced by the Government.

Management Committees

Management committees assist the Executive and Senior Leadership Group with decision making in key areas. The committees make recommendations to the group.

Senior Leadership Group

The Senior Leadership Group comprises the Ombudsman, Deputy Ombudsman and Senior Assistant Ombudsmen. It meets monthly to discuss strategic and operational issues relating to the work of the office.

Audit Committee

During 2013–14, as required by the Financial Management and Accountability Act 1997, The Audit Committee actively monitored the office's progress in implementing changes to our work practices and corporate governance activities including:

• our governance arrangements (internal control environment)
• the preparation of financial statements
• the operational effectiveness of the risk-management framework
• the adequacy of controls designed to ensure our compliance with legislation
• the 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
• the adequacy of our response to reports of internal and external audits
• the coordination of work programmes relating to internal and external audits, as far as possible.

The Audit Committee is independently chaired by Mr Peter Hoefer. The membership comprises the Chair, the Deputy Ombudsman, an independent member and one other management representative.

Observers included representatives from the Australian National Audit Office (ANAO), Ernst and Young (the office's internal auditors) and the Chief Financial Officer.

People Committee

The People Committee is chaired by the Deputy Ombudsman and comprises the Chief Operating Officer; the Senior Assistant Ombudsman, Operations Branch; the Senior Assistant Ombudsman, Immigration and Overseas Student Branch; and representatives from each branch.

The committee has been established to guide and advise on matters relating to the Commonwealth Ombudsman's People Plan and subsequent priorities, with the aim of ensuring the office has a capable and adaptive workforce to enable it to respond to current and future business needs. The inaugural meeting was held in April 2014 with subsequent meetings every quarter.

Work Health and Safety Committee

The office's Work Health and Safety Committee is made up of elected staff representatives from each of our state and Canberra offices, and is chaired by the Senior Assistant Ombudsman, Immigration and Overseas Students Branch. The committee met three times during the year. It has a strategic role in reviewing work health and safety matters and procedures to ensure we comply with the terms of the Work Health and Safety Act 2011.

Workplace Relations Committee

The Chief Operating Officer 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 three times during the year and provides a forum for regular exchange on change and workplace issues.

Other committees

During 2013–14 the office reviewed its committee structure, and the various committees' terms of reference and membership. The intention was to re-invigorate relevant committees and to improve their connectivity with other governance bodies, audit and fraud control arrangements within the office.

Business Improvement Steering Committee

The Business Improvement Steering Committee was established to facilitate business improvements within the office to ensure our business is conducted as effectively and efficiently as possible, and in a manner that furthers the Office's strategic objectives and maintains its viability and reputation.

Information Management Committee

The Information Management Committee was established to provide strategic oversight and guidance in developing and implementing information management policy, processes and systems; and to examine information management issues impacting on the office.

Corporate governance practices

Our risk-management framework comprises a formal policy and protocol, a strategic risk plan and register, along with quarterly monitoring and reporting.

The Senior Leadership Group regularly reviews strategic risks as part of the business-planning process. The office also participates in the annual Comcover Risk Management Benchmarking Survey, which independently assesses the office's risk-management arrangements.

Additional oversight of our risk management is provided by the Audit Committee.

Fraud prevention and control

In November 2013 we reviewed and updated our Fraud Control Plan and Fraud Risk Assessment. As part of this process we also reviewed the internal controls that mitigate the known risks of fraud.

All controls were identified as working adequately with recommendations to improve in some low-risk areas. Recommendations have all been progressed and our residual risk of fraud remains low. The Audit Committee oversees the implementation and monitoring of the Fraud Control Plan.

Business continuity planning

The Business Continuity Plan is one of our key risk-management strategies. It sets out strategies for ensuring that the most critical work of the office can continue to be done or quickly resumed in the event of a disaster.

We reviewed the plan in 2013–14 and successfully tested our associated Disaster Recovery Plan. The review and testing assured us that the office has the capacity to maintain its critical business requirements and continuing ability to function.

Ethical standards

The office promotes ethical standards and behaviours by providing extensive information to staff and promoting the Australian Public Service Commission's Ethics Advisory Service and our Ethics Contact Officer. Our intranet contains information on:

• APS Values and Code of Conduct
• workplace discrimination, bullying and harassment
• acceptance of gifts and hospitality
• procedures for determining breaches of the Code of Conduct
• procedures for facilitating and dealing with public interest disclosures relating to the office.

We have also developed an induction handbook for new starters that provides appropriate information on ethical standards and behaviours.

Complaint management

We have an established internal complaints and reviews process, which allows reviews about our decisions and complaints about service quality to be resolved fairly and informally.

In April 2014 we revised and reissued our Work Practice Manual, our primary guidance document for operational investigative staff.

We developed and promulgated to staff an internal communication framework with supporting protocols and work practices to promote better communication and information sharing. We also revised and published a new office service charter.

Through changes to our internal committee framework we developed a consolidated complaint-handling monitoring and reporting regime to better measure and facilitate continuous-improvement measures. We also improved our systems to support the capture, retention and monitoring of information showing systemic issues or trends in administration.

Accessibility

In developing and maintaining the office's websites, we use the World Wide Web Consortium (W3C) Web Content Accessibility Guidelines 1.0 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, providing text equivalents for non-text elements, and improving metadata.

We began implementing an action plan in late December 2012 to ensure that it complies with Web Content Accessibility Guidelines 2.0 (AA level) by December 2014. During the reporting period we tested and purchased new equipment to ensure that limitations with our current information and communications technology systems would not preclude future AA-level compliance.

Ecologically sustainable development and environmental performance

Section 516A of the Environment Protection and Biodiversity Conservation Act 1999 sets out the principles and framework for the office to report on environmental matters. We also have an Environmental Management policy to help us manage activities in an environmentally sustainable manner.

Our environmental impact is mainly through office-based energy consumption, paper resources and waste management.

Energy consumption

Following several years of energy reductions we have maintained our energy consumption rate during the year with a marginal reduction of 0.5% mega joules per person. This resulted from replacing lighting in the Sydney office.

Our Environmental Management policy promotes and encourages:

• staff to turn office lights off at the end of each day and in other areas of the office that are not being used
• minimisation of energy consumption through mechanisms such as default settings that turn off lights and air-conditioning at predetermined times
• environmental awareness via the intranet to inform employees on energy and environmental issues, office initiatives and tips to save energy.

Paper resources

The office manages electronic database and records-management systems to reduce paper records and photocopier usage.

During the year we implemented the Information and Records Management (IRM) work programme to update the IRM to better facilitate business needs, compliance with legislation and the Government Digital Transition policy.

One of the project areas of the programme involves further steps to ensure we engage in predominantly digital record keeping and e-business practices to reduce paper files.

Our paper supplies are either manufactured from at least 50% recycled products or carbon neutral. Other office materials such as files are recycled within the office to reduce procurement activity for stationery.

Waste management

We actively manage waste through several mechanisms:

• recycling bins are provided in all offices to encourage recycling of waste such as paper and cardboard packaging
• toner cartridges are recycled
• kitchen waste such as plastic bottles and cans are recycled via special bins provided in breakout areas.

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External scrutiny

Court litigation

The office was not involved as a party to any court litigation during 2013–14.

Tribunal litigation

The office was not involved in any tribunal litigation during 2013–14.

Office of the Australian Information Commissioner

We have been advised of eight matters where applicants have sought review by the Information Commissioner of decisions under the Freedom of Information Act 1982. Three of these matters were closed without the Information Commissioner conducting a review, and two matters are currently being reviewed by his office.

In relation to the remaining three matters, the Information Commissioner has not yet advised whether he will be conducting a review.

We received two decisions from the Information Commissioner in relation to reviews that commenced in 2011–12. In each instance the Information Commissioner upheld the Ombudsman's original decision.

The office is subject to the Privacy Act 1988. The Privacy Commissioner did not issue any report or make any adverse comment about the office during the past year.

Australian Human Rights Commission

The office is subject to the jurisdiction of the Australian Human Rights Commission. Two complaints were made to the Commission about us in 2013–14. The Commission terminated one complaint on the basis that it was lacking in substance. The other complaint is ongoing.

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People management

Overview

The Commonwealth Ombudsman Strategic Framework 2013–15 sets out the office's strategic goals and objectives. To achieve our goals it is essential that we have a capable and adaptive workforce. To have a capable and adaptive workforce we must ensure that the right people are attracted, retained, developed and motivated.

We have developed our People Plan 2014–17, which includes a range of strategies under three key areas—attract, develop and motivate, and retain and align.

One of the key initiatives under the People Plan is the development of a Workforce Plan. This will be a priority for the 2014–15 year.

Staffing profile

Including the Ombudsman and Deputy Ombudsman, the full-time equivalent number of employees as at 30 June 2014 was 145.8.

Table 1.2 shows the actual number of employees by gender, APS classification, employment status and salary range. Table 1.3 shows the staffing profile by location. Tables 1.4 and 1.5 show the part-time employee profile by location and classification.

During the year, one employee was engaged on an ongoing basis and 11 ongoing employees left the office, equating to a turnover rate of 8% (compared to 12% the previous year). There were 24 separations, including ongoing and non-ongoing employees. Table 1.6 shows staff separations by classification at 30 June 2014.

Table 1.2: Staffing profile by gender, APS classification and salary range at 30 June 2014

Note: under the Enterprise Agreement 2011–2014, employees moving to the office from a higher salary range may be maintained at that salary until increments in our salary range exceed the salary differential.

Table 1.3: Staffing profile by location at 30 June 2014

Table 1.4: Staffing profile showing part-time employees by location at 30 June 2014

Table 1.5: Staffing profile showing part-time employees by classification at 30 June 2014

Table 1.6: Staffing profile showing staff separations by classification at 30 June 2014

* Figure in brackets relates to 2013.

Workplace relations

The office's Enterprise Agreement 2011–14 came into effect on 27 July 2011 and reached its nominal expiry date on 30 June 2014.

A total of 156 employees are covered under the Enterprise Agreement. Conditions are provided for five SES staff under s24 (1) of the Public Service Act 1999. Four employees have an Individual Flexibility Agreement in place. No staff were employed under Australian Workplace Agreements or common law contracts.

The 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.

Learning and development

In July 2013 we released our Learning and Development Strategy 2013–2016. It sets the framework for:

• delivering greater clarity and shared understanding of our learning and development investment priorities to enable teams and individuals to grow and sustain critical business skills
• enabling members of the Executive and individual managers to work in partnership with Human Resources to plan and invest in learning and development activities that are linked to achieving the Ombudsman's role.

Three key objectives were identified under the strategy:

• build the learning and development culture of the office and embed it in the business
• enhance leadership capability
• enhance the specialist skills required for the work of the office.

Initiatives that have been delivered against these objectives during the reporting period include:

• establishing the People Committee to oversee learning and development
• establishing a dedicated resource within the Human Resource team to coordinate learning and development for the first year of the strategy
• a detailed training calendar being made available on the intranet and updated quarterly
• delivering a leadership training programme to all employees
• a leadership 'insight series' involving leaders from other organisations or agencies addressing staff on the subject of leadership
• developing a new set of core competencies and delivering training against the majority of the new competencies
• implementing a Career Development Strategy
• releasing a new induction handbook to support the orientation of new employees.

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

Work health and safety

We are committed to taking all practicable measures to maintain a safe and healthy workplace for all our employees, contractors and visitors. We acknowledge our employer responsibilities under the Work Health and Safety Act 2011 (WHS Act), the Safety, Rehabilitation and Compensation Act 1988 and anti-discrimination legislation.

During the reporting period no accidents or injuries occurred that are reportable under s 38 (5) of the WHS Act. There were no investigations conducted within the office under Part 10 of the Act.

All new employees are advised of the importance and responsibilities of staff and management for health and safety in the workplace through induction processes. New employees undertake a workstation assessment during their first week in the office. Employees who work from home complete a form to assess the need for workplace inspections.

A Work Health and Safety Officer (WHSO) or Deputy WHSO is located at each office. The WHSOs or Deputy WHSOs manage workplace health and safety matters through the Work Health and Safety Committee, regular staff meetings or by seeking assistance from an officer under the WHS Act. All WHSOs and Deputy WHSOs have undertaken relevant training after the implementation of the WHS Act.

During 2013–14 the office undertook the following health and safety initiatives:

• arranged health assessments, where necessary
• conducted individual workplace assessments
• facilitated eye examinations, where necessary
• made available first aid facilities and supplies, 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 and Deputy WHSOs
• targeted individual health awareness by providing flu vaccinations to employees free of charge, a healthy lifestyle reimbursement of up to $299 per year and mental health first aid training
• conducted trauma, self-care and stress-at-work training
• facilitated an external provider to conduct a work health and safety hazard inspection of the Canberra office
• redeveloped the WHS intranet page.

As well the office conducted a number of health and well-being seminars including nutrition, yoga and pilates, non-accredited first aid training, and quitting smoking.

The office continues to work towards a workplace that is respectful and free from bullying and harassment prevention. We have revised our Workplace Discrimination, Bullying and Harassment Prevention Guidelines to adopt the anti-bullying measures introduced into the Fair Work Act 2009 by the Fair Work Amendment Act 2013, which began operation on 1 January 2014. Bullying and harassment training was also made available to all employees.

To promote a supportive working environment, the office provides staff and their immediate families with access to an employee assistance programme, which offers a confidential counselling service, facilitation of teamwork issues, career advice and the management of work-related or personal issues.

Changes to disability reporting in annual reports

Since 1994, Commonwealth departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007–08, reporting on the employer role was transferred to the Australian Public Service Commission's State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au.

From 2010–11, departments and agencies have no longer been required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010–2020. A two-yearly report will track progress against each of the six outcome areas of the strategy. The first of these reports will be available in late 2014, and will be available at www.dss.gov.au.

Agency Multicultural Plan

This year the office acquired responsibilities under the Commonwealth Multicultural Access and Equity Policy, Respecting diversity.

In April 2013 we began preparing an Agency Multicultural Plan (AMP) to address our multicultural access and equity obligations to members of the Australian community from culturally and linguistically diverse (CALD) backgrounds. The plan covers the period 2013–15. We began implementing our finalised AMP from 1 July 2013.

We engaged with the Federation of Ethnic Communities' Councils of Australia (FECCA), which told us that two common themes in adverse CALD encounters with government were language difficulties and the use of the Telephone Interpreting Service (TIS).

To address these issues, this year we reviewed and updated the currency of our information for staff and complainants about the use of interpreters, including an easy step-by-step 'how-to' guide for staff and information on how to access the Automated Translation and Interpreting Service to obtain an interpreter in high-demand languages.

To support staff to adopt and implement these changes we made available a range of training courses including Working with interpreters, Working Cross-Culturally and Diversity and Cultural Awareness.

Reconciliation Action Plan

In March 2014 we launched the Office of the Commonwealth Ombudsman Reconciliation Action Plan 2013–2015. Staff participated enthusiastically in the launch, which was conducted by Co-Chair of Reconciliation Australia, Dr Tom Calma AO.

The plan allows us to deliver on our commitment to improve awareness of and access to Ombudsman services for Aboriginal and Torres Strait Islander peoples.

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Financial management

Financial performance

The office recorded an operating surplus attributable to the Australian Government of $38,000 (excluding depreciation and amortisation and the impact of the asset revaluation).

The result was achieved in a year of tightening resources in which our appropriation reduced by $283,000.

Expenses

Total expenses increased from $20.214m in 2012–13 to $20.81m in 2014–15. The main contributor to the increase was employee benefits increased from $14.4 million to $15.4 million. The primary drivers were a pay rise of 2% and a full complement of Senior Management for the year.

Supplier expense reduced by $375,000 across several expense categories, reflecting the overall reduction to appropriation revenue. The main contributors to the reduction were:

• travel ($102,000) due to a lower number of trips
• consultants and contractors ($164,000) due to reducing reliance on legal services contractors
• employee-related ($147,000) due to a reduced training spend.

Income

Appropriation revenue decreased by $283,000 due to the increase to the Efficiency Dividend and other efficiency measures.

Sale of goods and rendering of services revenue decreased by $267,000. This was primarily due to reduced activity in the International programme funded by the Department of Foreign Affairs and Trade (−$175,000) and a reduction in Comcare receipts.

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Financial position

Assets

The major change to the office's statement of financial position was the impact of the revaluation of non-financial assets that increased the net book values of our assets by $556,000.

We acquired $309,000 of assets funded by the Departmental Capital Budget.

Financial assets increased by $651,000. This was related in part to the increase in appropriation receivable resulting from unspent departmental capital budget and partially because of an increased bank balance due to the timing of the final payroll for the financial year.

Non-financial assets increased by $230,000 due to the revaluation and capital acquisitions offset by depreciation.

Liabilities

Total liabilities increased by $633,000 to $7,932,000 relating mainly to the increase in payables. Total payables increased by $515,000 due to a $498,000 increase to unearned revenue relating to future funding for the International programme.

Payables increased by $160,000 relating to the impact of extending the fixed lease for our office in Melbourne. Lease incentives decreased by $195,000, reflecting the reduction of rental expense over the lease term on a straight-line basis.

Employee provisions increased by $103,000, reflecting a change in the discount factor applied to long service leave calculations and an increase of 4% in leave days held.

Purchasing

This office is committed to achieving the best value for money in procurement activity and manages it using procurement practices that are consistent with the Commonwealth Procurement Rules. The practices are supported by the Chief Executive Instructions and specific procurement policies and templates provided to all staff on the intranet.

To improve efficiency in procurement the office accesses established procurement panels where possible. These procurement methods aim not to discriminate against small and medium-sized enterprises.

Procurement plans are published on AusTender as they become known to facilitate early procurement planning and to draw attention to our planned activity.

Consultants

During 2013–14 two new consultancy contracts were entered into with a total actual expenditure of $136,196 (including GST). There were no consultancy contracts entered into in 2012–13 that were active during the 2013–14 year.

No contracts were let containing provisions that do not allow the Auditor-General to have access to the contractor's premises, and no contracts were entered into that were exempt from being published on AusTender.

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 at www.tenders.gov.au.

The office does not administer any grant programmes.

Table 1.7: Expenditure on consultancy contracts 2011–12 to 2013–14