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 4860 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 program 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 five 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
• Overseas Students Ombudsman, to investigate complaints from overseas students about private education providers in Australia.

From 1 July 2015 the Ombudsman will also be the Private Health Insurance Ombudsman, responsible for protecting the interests of private health insurance consumers.

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.

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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.

Figure 1 Executive and Senior Management structure at 30 June 2015

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Report on performance

This chapter summarises the office's performance based on the outcomes and program structure set out in the Portfolio Budget Statements and Portfolio Additional Estimates Statements 2014-15.

An overview of people and financial management performance is provided at 23. Further financial information is available in the Appendixes.

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Programme objectives, deliverables and key performance indicator analysis

The 2014-15 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 program 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 2014-15 we received a total of 28,154 complaints and other approaches (such as calls received to request a publication), compared to 23,529 received in 2013-14, an increase of 20%.

Of the 20,940 in-jurisdiction complaints received this year (compared to 17,577 in 2013-14), 77% related to four agencies: the Department of Human Services (Centrelink 6280 and Child Support 1468), Australia Post (5613), the Department of Immigration and Border Protection (1810), and the Australian Taxation Office (1118). Complaints received about Centrelink increased by 26% over the previous year and comprised 30% of all in-jurisdiction complaints received.

It is also noteworthy that the number of complaints about Australia Post increased by 38% in 2014-15, following an 11% increase in 2013-14 over the previous year.

Complaints about the Australian Taxation Office decreased by 18% but this in part is as a result of the Inspector-General of Taxation taking over responsibility for handling complaints about the ATO from 1 May 2015.

We also received 121 complaints about agencies' handling of freedom of information applications in 2014-15, compared to 55 in 2013-14. This follows us assuming sole responsibility for handling freedom of information-related complaints from 1 November 2014 in view of the proposed abolition of the Office of the Australian Information Commissioner from 1 January 2015.

Although 2013-14 had seen a 29% decrease in out-of-jurisdiction complaints, the number of such complaints rose again in 2014-15 to 7214. An overwhelming proportion of out-of-jurisdiction complaints were received by email, often with the writer copying multiple complaint-handling bodies simultaneously.

Dealing with out-of-jurisdiction complaints can place an unnecessary burden on our resources. It is hoped that by seeking to redirect potential complainants to our revised online complaint form, which is designed to assist complainants identify where their complaint might be best directed, will reduce the number of out-of-jurisdiction complaints we receive.

It is noteworthy that since the revised online form was introduced in March 2015, online complaints have overtaken the number of complaints received by email.

We receive approaches by a variety of methods. Table 1 shows the methods by which approaches and complaints were received from 2011-12 to 2014-15.

Table 1 Approaches by method

Table 1 highlights the continuing impact of the changes in our telephony system that were introduced in late 2012, with 70% of approaches being received by telephone in the year prior to the changes compared to approximately 57% in subsequent years.

Complaint handling

We were able to finalise 21,044 in-jurisdiction complaints in 2014-15, a 20% increase on 2013-14. Most of these complaints (89%) were able to be finalised without having to commence an investigation.

This is because of our continuing emphasis on encouraging complainants to first complain to the agency about which they have a concern, as well as taking the opportunity, where appropriate, to provide some key agencies with a further opportunity to resolve a complaint made about them.

Of the complaints investigated, 24% 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 slightly more than in 2013-14 (21%).

We continue to make a conscious effort to improve our performance by seeking to reduce delays in our complaint handling. There was a 15% decrease in the number of complaints remaining open at the end of 2014-15 (806 compared to 945 in 2013-14) and follows a 9% decrease the previous year.

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.

As a first step, the investigation officer will reconsider their decision where a complainant indicates they are dissatisfied with that decision. A complainant who remains dissatisfied following the reconsideration may request a review by an officer not previously involved in the matter.

In 2014-15, we received 154 requests for review, compared to 128 received in 2013-14.

In terms of dealing with the review requests on hand at the beginning of 2014-15, together with those received during the year, we declined 103 requests, affirmed the original investigation decision in 25 reviews, decided to investigate or further investigate in 22 complaints and to change the original investigation decision in three. One request for review was withdrawn by a complainant.

The significant proportion of review requests declined is consistent with an increased focus as to whether by undertaking a review there was any reasonable prospect of getting a better outcome for the complainant.

Deliverables and key performance indicators

Deliverable 1: Identify and report on systemic issues in public administration, including making recommendations and reporting on their implementation

In December 2014 we released a public report into our investigation of a complaint about the Australian Community Pharmacy Authority, and the way in which the issues at the heart of the complaint were managed by the Department of Health and the Department of Human Services. We will be following up the departments' implementation of the recommendations in that report during 2015-16.

In April 2015 we published a report about CASA and its handling of coronial recommendations regarding fatalities in the general aviation industry.

The report was prompted by public criticism by coroners of CASA's apparent lack of response to and acceptance of recommendations about enhancing public safety in civil aviation in Australia. CASA accepted all eight recommendations we made.

Based on this report we have prepared a fact sheet for government agencies outlining good administrative practice for responding to coronial recommendations. In developing this fact sheet we consulted with state and federal government bodies that routinely receive coronial recommendations, including CASA.

Deliverable 2: Encourage agencies to improve internal complaints handling systems and ensure they are accessible

KPI 1: Percentage or number of complaints handled or resolved within internal service standards

In 2013-14 our Operations Branch met our service standard timeframes for finalising the processing of all investigated complaints in 2013-14.

Unfortunately, the branch was not able to repeat this level of performance in 2014-15 with 81% of all investigated complaints being finalised within our service standards. This is partly a result of dealing with an increased complaint workload overall and resource constraints.

It is also partly a result of external factors. Our service standard for investigated complaints takes into account a period for agencies to respond to questions we ask them as part of an investigation.

This period is usually up to 28 days. However, in 2014-15 a number of agencies regularly exceeded this time period. We continue to work with agencies to seek timely responses although we recognise that they too may also be subject to restraints.

KPI 2: Percentage or number of remedial investigation recommendations made, accepted and implemented

In 2014-15 we made comments or suggestions in relation to 122 complaints that we investigated where we considered that shortcomings had been identified or there was scope for agencies to improve their administrative practices.

We completed and reported on four more in-depth investigations that arose from individual complaint investigations:

• Department of Immigration and Border Protection - Report into an investigation of a complaint about property management at an immigration facility. We made two recommendations, one of which the department committed to take action on
• Department of Health - Avoiding and acknowledging mistakes, Investigation of a complaint about the Australian Community Pharmacy Authority. We made four recommendations that were broadly supported by the department as providing an opportunity to improve processes in relation to the authority and the department more generally
• Department of Education and Training - Compensation for errors made by contracted service providers. We made three recommendations. Although the department accepted two of the recommendations, it considered that the third recommendation raised whole-of-government issues that would be more appropriately dealt with by the Department of Finance. The third recommendation related to agencies providing compensation where their service providers or agents have caused a third party to suffer a loss. We have since raised the issue with the Department of Finance and expect a response in 2015-16
• Civil Aviation Safety Authority - Responding to coronial recommendations. We made eight recommendations which were all broadly accepted by the authority.

KPI 3: Number of discretionary decisions to not, or to cease to, investigate

During 2014-15 we declined to investigate 13,065 complaints. A common reason for declining an investigation was because a person seeking to make a complaint had not first complained to the agency that they wanted to complain about.

We also decided to cease investigation of a further 2301 complaints. In most cases this occurred because a remedy had either been achieved through the course of the investigation or because further investigation was not going to result in a better or different outcome for a complainant.

KPI 4: The Ombudsman is satisfied that complaint investigations appropriately identify and report on systemic issues in public administration, and make salient, practical and useful recommendations

This 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 2014-15 we finalised and published our own motion complaint investigation into agency internal complaint-handling across government, Complaint management by government agencies.

The investigation found that agencies' handling of complaints had improved noticeably in the past 20 years but that, nevertheless, there was scope for improvement with a particular focus on vulnerable people and complaint resolution, as well as using complaint information as a tool in business improvement. We also undertook to update our Better practice guide to complaint handling.

In 2014-15 we published three issues papers highlighting systemic issues identified through our investigation of complaints from overseas students under our Overseas Students Ombudsman jurisdiction.

In August 2014 we also published an issues paper on Overseas Student Health Cover, which made recommendations for the Department of Education and Training, the Department of Immigration and Border Protection and the Department of Health to consider. We followed up on the recommendations six months later and published a summary of the outcomes in May 2015.

We published two further issues papers in March and May 2015. They were about private registered education providers' written agreements relating to fee dispute and refund complaints, and providers' monitoring of overseas students' course progress and attendance. The papers highlight key mistakes we see providers make, and help providers improve their policies and practices and reduce complaints.

In January 2015 we published Complaint handling at universities: Australasian best practice guidelines, which was the result of a joint Australasian Ombudsman project.

KPI 5: External stakeholders are satisfied with the quality, timeliness and utility of our investigations and reporting

The Ombudsman is required by law to conduct investigations as he sees fit and is not the advocate of either a person making a complaint or the agency about which they have complained. As such, it will not always be the case that any or all parties are satisfied with how we go about our investigations or the conclusions that we reach.

In 2014-15 we received 86 service delivery complaints from complainants, compared to 83 in 2013-14.

It was also pleasing to observe the willingness of agencies to participate in and learn from our own motion investigation into agency internal complaint-handling across government.

Deliverable 3: Oversight of selected intrusive or coercive powers used by relevant entities

KPI 6: Percentage or number of inspections, audits and review conducted and reported in accordance with legislative or policy requirements

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

• Interception of telecommunications, and preservation of, 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 1AB of the Crimes Act 1914 (Crimes Act).

The Ombudsman is also required by law to conduct reviews of:

• the Australian Federal Police's (AFP) administration of Part V of the Australian Federal Police Act 1979 (AFP Act), which deals with the management of complaints made about the conduct of AFP appointees and AFP practices issues
• Fair Work Building and Construction's use of coercive examination powers under the Fair Work (Building Industry) Act 2012 (FWBI Act).

During 2014-15 we conducted all required statutory inspections and reviews in accordance with our legislative requirements and internal policies. This involved:

• 26 inspections under the TIA Act of Commonwealth and state and territory enforcement agencies
• nine inspections under the SD Act of Commonwealth and state and territory enforcement agencies
• five inspections under Part 1AB of the Crimes Act of Commonwealth enforcement agencies two inspections under Part V of the AFP Act
• 10 reviews under the FWBI Act.

During 2014-15 we met all of our statutory reporting obligations and finalised:

• 20 reports under the TIA Act, provided to the Attorney-General
• two reports under the SD Act, provided to the Attorney-General
• one report under Part 1AB of the Crimes Act, provided to the Minister for Justice
• one report under Part V of the AFP Act, tabled in Parliament
• one report under the FWBI Act, tabled in Parliament.

We continued our ongoing own motion investigation to oversight the Department of Immigration and Border Protection's compliance activities involving locating, detaining and removing unlawful non-citizens.

This is important as a departmental delegate approves warrants to allow immigration officers to enter and search premises under s 251 of the Migration Act 1958 without external oversight.

We provided two reports on these activities to the department:

• s 251 warrants and removal, sent to the department in July 2014, which made three recommendations
• the observation of seven field compliance operations, sent to the department in October 2014. This report made nine recommendations.

KPI 7: Percentage or number of remedial inspection recommendations made, accepted and implemented

In our 2014-15 finalised inspection reports we made three recommendations to agencies under the TIA Act regarding their record-keeping practices. All three agencies accepted our recommendations and took, or advised of taking, remedial action in response.

These reports were provided to the Attorney-General.

KPI 8: The Ombudsman is satisfied that inspections, audits and reviews appropriately identify and report on systemic issues in public administration, and make salient, practical and useful recommendations

All inspections, audits and reviews were effective at assessing agencies' compliance under relevant legislation, and all resultant recommendations and suggestions for improvement were practical. All formal recommendations made were accepted by the relevant agencies.

Additionally, it was identified that a small number of warrants under the SD Act had been issued by a judge or Administrative Appeals Tribunal member who was not authorised to do so. We raised this issue with the Attorney-General's Department, which has advised that all agencies affected by this issue have been notified and it is committed to implementing improved administrative systems to prevent recurrences.

KPI 9: External stakeholders are satisfied with the quality, timeliness and utility of our inspections and reporting

Relevant ministers and parliamentary committees indicated that they were satisfied with the quality, timeliness and utility of our inspections and reporting. All inspections and reports were conducted in accordance with legislative timeframes.

For every inspection, each agency was provided with our preliminary inspection results at the time of the inspection to enable them to take remedial action where appropriate. The effectiveness of this was evident in agencies' responses to our draft inspection reports, where agencies advised what measures they had already implemented to address identified issues before our reports were finalised.

Similarly, some agencies sought our comments and feedback on these measures, subsequent to the inspection and before the finalisation of reports.

Deliverable 4: Contribute to public administration through presentations, speeches, reports, submissions and information guidance including best practice guides

KPI 10: Number of speeches, presentations, reports and submissions made to parliamentary, ministerial, departmental or external stakeholders

The Ombudsman presented at the following conferences and forums:

• Council of International Students Australia conference, Adelaide, 8 July 2014
• Pacific Ombudsman Alliance conference in Vanuatu, 15 July 2014
• IDP International Student Expo, Brisbane, 8 August 2014
• Australian Council for Private Education and Training conference, Fremantle, 28 August 2014
• Australian Government Leadership Network conference in Brisbane, Sydney and Adelaide from July to September 2014
• English Australia conference, Melbourne, 19 September 2014
• The Tax Institute Tasmanian state convention, Launceston, 16 October 2014
• Independent Schools Council Queensland education provider workshop, Brisbane, 5 November 2014
• Senate Occasional Lecture Series, Parliament House, Canberra, 28 November 2014
• Association of Independent Schools of South Australia education provider workshop, Adelaide, 30 January 2014
• Department of Education and Training Education Services for Overseas Students Reform consultation workshops, Canberra, 5, 17, 18 February
• Independent Schools Council Queensland education provider workshop, Brisbane, 12 February 2015
• Department of Education and Training Offshore Education Counsellors briefing, Canberra, 16 March 2015
• International Student Advisors' Network education provider forum, Sydney, 19 March 2015
• Contemporary Challenges and Solutions in Governance, Victoria University, Melbourne, 15 April 2015
• Fraud Prevention and Detection summit, Sydney, 29 April 2015
• International Student Advisors' Network education provider forum, Canberra, 16 April 2015
• National English-language Accreditation Scheme conference, Sydney, 7 May 2015
• Study NSW/Australian Council for Private Education and Training education provider workshop, Sydney, 7 May 2015

The Ombudsman 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 during the preceding 12 months
• the 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.

The Ombudsman made submissions to the following inquiries:

• Parliamentary Joint Committee on Intelligence and Security's inquiry into the Counter-Terrorism Legislation Amendment (Foreign Fighters) Bill 2014
• Senate Education and Employment References Committee inquiry into the operation, regulation and funding of private vocational education and training providers in Australia
• Parliamentary Joint Committee on Intelligence and Security inquiry into the Australian Citizenship Amendment (Allegiance to Australia) Bill 2015.
• Parliamentary Joint Committee on Intelligence and Security's inquiry into the Telecommunications (Interception and Access) Amendment (Data Retention) Bill 2014.

The Ombudsman also made submissions to the following departments and stakeholders:

• Department of Immigration and Border Protection's Future directions for streamlined visa processing discussion paper
• Department of Education and Training's Education Services for Overseas Students (ESOS) reforms discussion paper
• Productivity Commission's Barriers to services exports study
• Productivity Commission's International education services research project.

The Ombudsman also provided input to the following government consultations:

• Department of Social Services' consultation on the Proposal for a National Disability Insurance Scheme quality and safeguarding framework
• Department of Human Services' consultation on its revised Centrepay policy and procedures.

Deliverable 5: Contribute to the effective oversight of the Commonwealth public interest disclosure scheme

KPI 11: Percentage or number of remedial recommendations made, accepted and implemented

In 2014-15 we received 53 complaints related to the handling of a public interest disclosure by an agency.

We made comments or suggestions in relation to two complaints that we investigated where we considered shortcomings had been identified or there was scope for agencies to improve their administrative practices. These shortcomings have been acknowledged by the agencies concerned and steps taken to remedy the matters identified.

In the course of handling more than 180 enquiries from agencies and individuals, and meeting with more than 15 agencies, we made recommendations in relation to the implementation of the PID scheme, including reviewing guidance material and agency processes. This advice was accepted and acted upon.

KPI 12: The Ombudsman's Annual Report on the operation of the Public Interest Disclosure Act 2013 is completed on time and in accordance with legislative requirements

The Public Interest Disclosure Act 2013 requires the Ombudsman to report on the operation of the Act and to include statements required by s 76(2) of the Act. The Ombudsman's Annual Report includes the required information, which is based on the records held by this office, in relation to enquiries, complaints and notifications; information exchanged and collected from agencies during the course of outreach activities and training sessions; data received from agencies surveyed for the purposes of preparing the Annual Report; and public interest disclosures made to the Ombudsman.

KPI 13: The Ombudsman is satisfied that our oversight of the Commonwealth public interest disclosure scheme is appropriate and effective

As part of our internal audit processes we commissioned a review by Ernst and Young of our statutory monitoring and oversight role under the Act. Responses to surveys sent to key agencies indicated a high level of satisfaction with the services being provided by us. The review recommended a number of internal actions and procedures designed to enhance our delivery of the function, and expressed an overall assessment that the office was carrying out its functions well.

KPI 14: External stakeholders are satisfied with the quality, timeliness and utility of our speeches, reports and submissions

Department of Prime Minister and Cabinet, the policy owner of the legislation; the Inspector-General of Security and Intelligence (IGIS); and agencies covered by the PID Act have expressed high levels of satisfaction through formal and informal communications with the office, as well as responses to surveys following outreach events, and the internal audit process undertaken by external consultants.

Bodies in the state and territory jurisdictions which have oversight responsibilities for public interest disclosure schemes have committed to working with us to increase the understanding and measure the effectiveness of the schemes within Australia. Agencies have incorporated content from our speeches and presentations into their internal training material.

KPI 15: The Ombudsman is satisfied that our speeches, presentations, reports and submissions appropriately identify and report on systemic issues in public administration, and make salient, practical and useful recommendations

The Ombudsman has been formally consulted by the Department of Prime Minister and Cabinet, IGIS and the Australian Public Service Commission in relation to issues papers, submissions and guidance material relating to the PID scheme. Our comments have been incorporated into submissions, guidance and training material.

Deliverable 6: Targeted stakeholder engagement through the provision of information and education regarding the role of the office

KPI 16: Number of stakeholder engagement activities completed

We conducted more than 80 presentations, courses, roundtable meetings, briefings, outreach activities, workshops and forums with and for stakeholders during the reporting year.

KPI 17: Percentage or number of engagement activities that target priority stakeholders

Half of our inspection and law enforcement activities were with targeted priority stakeholders. The other 50 per cent of activities were in response to requests for assistance made by other agencies.

All immigration and overseas student engagement activities targeted priority stakeholders including industry peak bodies, international students and private providers. All PID and social services-related activities targeted priority stakeholders.

KPI 18: External stakeholders are satisfied with the OCO's engagement activities

All stakeholders expressed satisfaction and gratitude for our engagement, participation and/or assistance.

Deliverable 7: implement improvements to our business operations

KPI 19: Number of learning and development courses offered and number of staff attendances per year

During the financial year 33 training sessions were held, with 409 employees attending. Further information is provided on page 26.

KPI 20: Percentage or number of internal policies, practices and processes updated and refined

In 2013-14 a comprehensive review was undertaken of our Work Practices Manual for complaint management. Two updates were made to the manual to take account, for example, of the transfer of management of complaints about the Australian Taxation Office to the Inspector-General of Taxation.

During 2014-15 we reviewed and documented our internal procedures relating to our public interest disclosure oversight functions.

We also reviewed and updated a number of key corporate policies including financial delegations, accountable authority instructions, travel and hospitality guidelines, petty cash guidelines, procurement policies, risk oversight and management policy, the security policy and the security plan. The office also developed a project management framework.

It is standard practice that all inspection and review methodologies are reviewed on a six-monthly basis, and processes are updated and refined to reflect:

• changes in legislation
• reassessment of risks associated with non-compliance
• changes to agency and industry practices.

We updated our compliance methodology used to monitor the use of intrusive powers under the Migration Act and the conduct of field compliance operations.

KPI 21: Number of reportable financial breaches

As part of the compliance assurance process to support the preparation of our 2014-15 Compliance Report, we identified 61 instances of non-compliance with the Public Governance, Performance and Accountability Framework. The non-compliance issues mainly related to the approval of commitments and reporting of contracts on AusTender.

To improve procurement compliance in 2015-16 we have initiated a staff-awareness strategy. We will also review and simplify internal procurement guidance, initiate procurement systems improvements and centralised monitoring, and develop and deliver a procurement training program to staff.

KPI 22: Staff are satisfied with operational practices

This year the APS State of the Service employee survey scores reflect positive results against the areas of job, team and agency engagement. These scores improved further on the 2013 and 2014 results and indicate a positive outcome in relation to employee satisfaction levels with the work environment, including operational practices.

Senior Leadership Group

The Commonwealth 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.

The remuneration for the Ombudsman and Deputy Ombudsman is set by a Determination made by the Remuneration Tribunal. See the financial statements (Appendix 5) for further details.

Senior Assistant Ombudsmen and their areas of responsibility are:

• 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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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 Framework framed our strategic objectives for the period and our 2014-15 Annual Corporate Plan set out our key business priorities for this reporting period. The Strategic Framework was developed following a major restructure and planning process implemented in 2012-13.

The plans reflect our 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 entities of proactive strategies to promote better complaints resolutions.

Consistent with the requirements of Enhanced Commonwealth Performance Framework, we have developed our 2015-16 Corporate Plan. The plan frames our strategic vision, objectives, deliverables and key performance measures for the next four years.

We also envisage ongoing changes to our governance arrangements during 2015-16, as we further refine our organisational arrangements and implement the functional changes announced by the Government in the 2014-15 and 2015-16 Budgets.

Audit Committee

We have established an Audit Committee as required by the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Its role is to provide independent assurance to the Ombudsman on our financial and performance reporting responsibilities, risk oversight, and management and systems of internal control.

The committee met four times and comprised the following membership during the reporting period:

Table 2 Audit Committee Members

Regular observers at committee meetings included representatives from the Australian National Audit Office, Ernst and Young (the office's internal auditors), the Chief Operating Officer and the Chief Financial Officer.

Senior Leadership Group

The 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.

Management committees

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

People Committee

The People Committee is chaired by the Deputy Ombudsman and comprises the Chief Operating Officer; the Senior Assistant Ombudsman, Social Services, Indigenous and Public Interest Disclosure Branch; the Senior Assistant Ombudsman, Immigration and Overseas Student Branch; the Manager, Human Resources; and representatives from each branch.

It was 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 committee meets as required, with the key focus this year being the development of the office's Workforce Plan 2015-2019.

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. It meets quarterly.

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. A key focus this year was the development of the WHS risk register.

Workplace Relations Committee

The Chief Operating Officer chairs the Workplace Relations Committee. It comprises employee, management and union representatives and is the principle forum for regular exchange on change and workplace issues.

Business Improvement Steering Committee

The 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.

The Deputy Ombudsman chairs the committee.

Information Management Committee

The Deputy Ombudsman chairs the Information Management Committee. It provides strategic oversight and guidance in developing and implementing information management policy, processes and systems; and to examine information management issues impacting on the office.

Risk and Security Governance Committee

The Risk and Security Governance Committee was established in 2014-15 to provide guidance and advice on operational risk and security governance matters for the office.

Directors from across the office comprise the committee, with the Chief Operating Officer as chair.

Corporate governance practices

Risk

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 and the Risk and Security Governance 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.

During the reporting period, fraud-awareness training was delivered to staff and a fraud-awareness training module for credit card holders was released on the intranet.

Business continuity planning

Our Business Continuity Plan is one of our key risk-management strategies. It sets out our 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 2014-15 and also 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 following a disruption.

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.

The induction handbook for new starters provides appropriate information for new starters on ethical standards and behaviours.

Accessibility

In developing and maintaining the office's websites, we use the World Wide Web Consortium Web Content Accessibility Guidelines 2.0 as the benchmark.

In 2014-15 we began implementing a substantial upgrade of our online services, content and compliance with Web Content Accessibility Guidelines 2.0 (AA level). During the reporting period we have improved the compliance of online documents and initiated the process of upgrading the infrastructure that supports our online presence.

The infrastructure upgrade will include web authoring and tools to ensure compliance against accessibility standards. Regular auditing of the websites using automated tools will also identify compliance issues and report continual improvement.

Ecologically sustainable development and environmental performance

Section 516A of the Environment Protection and Biodiversity 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

During the year the office reduced its energy consumption by 6%. This was for both total megajoules consumed and megajoules consumed per person.

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 program 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 program 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 the waste we produce 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 and tribunal litigation

No decisions of courts or administrative tribunals made in 2014-15 had, or may have, a significant impact on the operations of this office.

Office of the Australian Information Commissioner

During the reporting period the Australian Information Commissioner advised this office of five matters where the applicant sought review of our decisions under the Freedom of Information Act 1982 (the FOI Act). The Information Commissioner closed four of these cases under s 45W(a) of the FOI Act. In one matter, the Information Commissioner affirmed the Ombudsman's decision under review.

We received one decision from the Information Commissioner in relation to a review that commenced in 2013-14. In this matter, the Information Commissioner confirmed the Ombudsman's decision under review.

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. During the reporting period the commission decided to terminate a complaint which it received about this office in 2013-14.

The commission terminated the complaint on the grounds that there was no reasonable prospect of the matter being settled by conciliation. The commission did not receive any new complaints about this office in 2014-15.

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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.

Our People Plan 2014-17 includes a range of strategies under three key areas:

• attract
• develop and motivate
• retain
• align.

The People Plan is reviewed regularly to ensure it reflects the people priorities for the office. One of the key initiatives achieved under the People Plan was the development of our Strategic Workforce Plan 2015-2019.

We also launched our Workplace Diversity Program 2015-18 which is complemented by our Multicultural Plan 2013-15, Reconciliation Action Plan 2013-15 and the As One - Australian Public Service (APS) Disability Employment Strategy.

Staffing profile

Including the Ombudsman and Deputy Ombudsman, the full-time equivalent number of employees as at 30 June 2015 was 138.8.

Table 3 shows the actual number of employees by gender, APS classification, employment status and salary range. Table 4 shows the staffing profile by location. Tables 5 and 6 show the part-time employee profile by location and classification.

During the year, five employees were engaged on an ongoing basis and 19 ongoing employees left the office, equating to a turnover rate of 14% (compared to 8% the previous year). There were 27 separations, including ongoing and non-ongoing employees. Table 7 shows staff separations by classification at 30 June 2015.

Table 3 Staffing profile by gender, APS classification and salary range at 30 June 2015 (2014)

Notes:

a. 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.

b. ‘EL' is ‘Executive Level'.

c. Number of statutory officers reflects an SES employee acting as Deputy Ombudsman as at 30 June 2015.

Table 4 Staffing profile by location at 30 June 2015 (2014)

Table 5 Staffing profile showing part-time employees by location at 30 June 2015 (2014)

Table 6 Staffing profile showing part-time employees by classification at 30 June 2015 (2014)

Table 7 Staffing profile showing staff separations by classification at 30 June 2015 (2014)

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 143 employees are covered under the Enterprise Agreement. Conditions are provided for five SES staff under s24 (1) of the Public Service Act 1999. Five 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

This year we continued to deliver training against the core competencies established under the Learning and Development Strategy 2013 - 2016, and other priority areas identified through mechanisms such as the State of the Service Employee Census results. The training delivered included:

• Dealing with difficult complainants
• Privacy refresher training for frontline staff
• Dealing with change
• Becoming a mentor/mentoree
• Correspondence and report writing
• Working with interpreters
• Protective security
• Mental health first aid
• General investigations and advanced investigations.

We have also purchased subscriptions to APS LearnHub and Lynda.com through the Shared Services Centre. These interactive learning solutions will enable us to deliver a broad range of targeted e-Learning programs to all staff on their desktop.

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 Rehabilitation and Compensation Act 1988 and anti-discrimination legislation.

Key achievements during the reporting period include the development of a Work Health and Safety Risk Register, Rehabilitation Management System Policy and the review of the Work Health and Safety Policy.

During 2014-15 we undertook the following health and safety initiatives:

• arranged health assessments, where necessary
• conducted individual workplace assessments
• 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 provision of mental health first aid training
• conducted work health and safety hazard inspections in all offices
• two employees from the Human Resource team attended the ‘WHS in a Day' training delivered by Comcare
• arranged for a further two Canberra-based employees to undertake training for the role of Workplace Harassment Contact Officers.

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 in relation to health and safety in the workplace through the induction process. 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.

To promote a supportive working environment the office provides staff and their immediate families with access to an employee assistance program, 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 was available in late 2014, and is 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.

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Financial management

Financial performance

The office recorded a marginal operating deficit of $0.002 million (excluding depreciation and amortisation) in 2014-15 (2013-14: operating surplus $0.038 million).

Expenses

Total expenses increased from $20.810 million in 2013-14 to $21.735 million in 2014-15. The increase was mainly driven by employee separation and redundancy costs of $1.002 million. This was associated with organisational re-profiling and restructuring undertaken during the year.

Income

Appropriation revenue increased by $0.370 million compared to 2013-14. This was mainly due to additional funding received from the Government for restructuring ($0.673 million), offset by increases to the Efficiency Dividend and other efficiency measures.

Sale of goods and rendering of services revenue increased by $0.548 million. This was primarily due to increased activity in the International program, funded by the Department of Foreign Affairs and Trade.

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Financial position

Assets

Total assets increased by $0.618 million, comprising:

• an increase in cash held ($0.504 million) due to cash held for the payment of salaries on 1 July 2015
• acquisition of assets ($0.877 million), offset by
  • depreciation and amortisation ($0.697 million)

The office acquired $0.877 million in new assets in 2014-15, funded through the Departmental Capital Budget. This included the replacement of ICT infrastructure, purchase of new software and enhancements to core existing ICT systems.

Liabilities

Total liabilities increased $0.582 million, which was mainly due to increased payables ($0.673 million) principally associated with salaries accrued for payment on 1 July 2015.

Purchasing

The 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 Accountable Authority 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

The office engages consultancy services in circumstances when particular expertise is not available internally or when independent advice is required.

During 2014-15 six new consultancy contracts were entered into, involving total actual expenditure of $0.179 million (including GST). In addition, three ongoing consultancy contracts were active during the 2014-15 year, with total expenditure of $0.141 million.

Table 8 Expenditure on consultancy contracts 2012-13 to 2014-15

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 programs.