Part 3 - Report on performance
Complaints overview
In 2016–17 we received a total of 41,301 approaches (complaints and other approaches such as calls to request a publication), compared to 37,753 approaches received in 2015–16, an increase of nine per cent.
Of the total approaches received, 34,606 were in-jurisdiction complaints (compared to 31,191 in 2015–16) with 56 per cent of the in-jurisdiction complaints related to the following agencies: the Department of Human Services (Centrelink: 11,867 and Child Support: 1,362), Australia Post (4,109) and the Department of Immigration and Border Protection (2,071). Complaints received about Centrelink increased by 36 per cent over the previous year and comprised 34 per cent of all in-jurisdiction complaints received.
The Office receives approaches by a variety of methods, with telephone being the preferred method, followed by online. Table 2 below shows the trend in how approaches and complaints were received over the last five years.
Complaint-handling
The Office was able to finalise 34,268 in-jurisdiction complaints in 2016–17, a nine per cent increase on 2015–16. Most of these complaints (89 per cent) were able to be finalised without having to commence an investigation.
Of the complaints investigated, 17 per cent required more substantial investigation (categories four and five in the Office's five-category complaint system), with some requiring the involvement of senior managers. This figure is slightly lower than in 2015–16 (19 per cent).
Reviews
The Office has a formal non-statutory review process for complainants who may be dissatisfied with the decision reached by the Office.
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 with the matter.
Table 2 – How approaches were received by the Office
| Year | Telephone | Online | Post | In person |
|---|---|---|---|---|
| 2016–17 | 59% | 38% | 2% | 1% |
| 2015–16 | 58% | 38% | 3% | 1% |
| 2014–15 | 58% | 36% | 4% | 2% |
| 2013–14 | 56% | 36% | 5% | 3% |
| 2012–13 | 57% | 35% | 6% | 2% |
In 2016–17, we received 123 requests for review (representing 0.3 per cent of complaints finalised), compared to 104 (0.3 per cent of complaints finalised) received in 2015–16.
In terms of dealing with review requests on-hand at the beginning of 2016–17, together with those received during the year, the Office declined 23 requests, affirmed the original investigation decision in 94 reviews, decided to investigate, or further investigate, 18 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 on whether there was any reasonable prospect of getting a better outcome for the complainant.
It should be noted there are instances where some complainants seeking a review do not provide a reason as to why a review should be conducted other than the fact that they do not agree with the investigation officer's decision.
Annual Performance Statement
Statement of Preparation
I, as the accountable authority of the Office of the Commonwealth Ombudsman (the Office), present the 2016–17 Annual Performance Statement of the Office, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (the PGPA Act). In my opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the entity, and comply with subsection 39(2) of the PGPA Act.
Michael Manthorpe PSM
Ombudsman
Purpose statement
The Office is a non-corporate Commonwealth entity established by the Ombudsman Act 1976 (the Ombudsman Act) and is subject to the PGPA Act.
Our purpose is to:
- provide assurance that the organisations we oversight act with integrity and treat people fairly
- influence systemic improvement in public administration in Australia and the region.
Outcome and program structure
The Office's outcome as described in its Portfolio Budget Statement for 2016–17 is:
'Fair and accountable administrative action by Australian Government entities and prescribed private sector organisations, by investigating complaints, reviewing administrative action and statutory compliance inspections and reporting.'
The Office established 11 KPIs that will enable measurement of performance in achieving this outcome. The results and subsequent analysis of performance are presented within this document.
The Office only has one program, which is 'the Office of the Commonwealth Ombudsman'.
Office results
A summary of the Office's 2016–17 annual performance results against each KPI, as established in the Office's 2016–17 Portfolio Budget Statement and 2016–17 Corporate Plan, is presented below at Table 3. For eight of the 11 KPIs, the target was met.
Table 3 – Office's strategic objectives, key deliverables, key performance indicators, targets and results
| Objectives | Deliverables | Key Performance Indicators | Target | Result |
|---|---|---|---|---|
| Objective 1 Influence Australian Government entities, prescribed private sector organisations and our regional partners, to improve the administration of their programs and complaint-handling systems |
| KPI 1 – Percentage of recommendations/suggestions made during an inspection for which progress has been followed up within 12 months of it being made | 100% | 100% |
| KPI 2 – Percentage of recommendations made in public reports accepted by entities | 75% | 91.5% | |
| KPI 3 – Percentage of reports on long term detention cases sent to the Minister within 12 months of the review being received from the department | 80% | 82.6% | |
| KPI 4 – Percentage of post-visit reports issued to the department within 90 business days of the inspection being completed | 80% | 100% | ||
| KPI 5 – Percentage of stakeholders which participated in engagement activities who provided an average of 'satisfied' or 'very satisfied' rating in feedback forms/surveys | 90% | 99.5% | |
| KPI 6a – Percentage of outputs delivered under the Australian Aid arrangements | 80% | 94.7% | |
| KPI 6b – Percentage of reporting requirements met under the Australian Aid arrangements | 100% | 100% | ||
| Objective 2 Provide an efficient and effective complaint-handling service |
| KPI 7 – Percentage of approaches finalised within the Office's service standards | 85% | 76.6% |
| Objective 3 Provide effective oversight of entities' compliance with legislation and policy in the use of selected intrusive or coercive powers |
| KPI 8 – Percentage of Office's statutory requirements in relation to law enforcement met | 100% | 100% |
| Addressed by result for KPI 1 above. | |||
| Objective 4 Provide effective oversight and promotion of the administration of the Public Interest Disclosure scheme for the Commonwealth public sector |
| KPI 9 – Percentage of Office's statutory requirements in relation to Commonwealth public interest disclosures met | 100% | 96.7% |
| KPI 10 – Percentage of stakeholders who participated in engagement activities that provided a 'satisfied' or 'very satisfied' rating in feedback forms/surveys | 90% | 98.3% | ||
| Objective 5 Provide quality and accessible private health insurance information |
| KPI 11 – Percentage of public users who completed the survey for privatehealth.gov.au who provided a 'satisfied' or 'very satisfied' response regarding the quality of information provided by the website | 80% | 76.4% |
Further detail on these results are listed under each KPI throughout the results section below, which explains the methodology used to calculate results and the linkage to the 2016–17 Corporate Plan.
KPI 1 – Percentage of recommendations/suggestions made during an inspection for which progress has been followed up within 12 months of it being made
Part of the inspection methodology of the Office is to follow up all issues at every subsequent inspection. As a measure of its success, the Office reports on the percentage of issues that have been followed up.
The data sources for this result are the 2015–16 and 2016–17 inspections calendars.
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 16.
Methodology
| Total number of recommendations/suggestions made during 2015–16 which were followed up within 12 months during 2016–17 | KPI Target Achieved Result – 100% Target – 100% |
| Total number of recommendations/suggestions made during 2015–16 |
Result
The Office produced 63 inspection reports during 2015–16, 54 of which had issues that required follow-up. All 54 issues were followed up within 12 months. The Office did not conduct an inspection in 2016–17 to follow-up on previous surveillance device issues with the Queensland Crime and Corruption Commission because the Commission had not used the relevant power during 2015–16.
The Office's result for KPI 1 is 100 per cent.
KPI 2 – Percentage of recommendations made in public reports accepted by entities
In providing effective oversight of entities' and prescribed private sector organisations' compliance with legislation and policy in the use of selected intrusive or coercive powers, the Office identifies and reports on compliance and provides recommendations to these entities.
To measure its success in persuading entities to improve the administration of their programs and complaint-handling systems, the Office measures the acceptance rate of its recommendations.
Systemic improvement to public administration in one area has the potential to improve public administration generally. Every improvement the Office influences provides greater assurance that the organisations it oversights will act with integrity and treat people fairly.
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 16.
Methodology
| Total number of issues identified within a public report for which at least one suggestion or recommendation has been accepted, partially accepted or noted during 2016–17 | KPI Target Achieved Result – 91.5% Target – 75% |
| Total number of issues identified within a public report during 2016–17 |
Result
The Office produced 12 publicly released reports with a total of 47 recommendations during 2016–17. Forty-three of the recommendations were accepted.
The Office's result for KPI 2 is 91.5 per cent.
KPI 3 – Percentage of reports on long-term detention cases sent to the Minister within 12 months of the review being received from the department
As part of the immigration detention oversight function, the Office reports 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).
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 16.
Methodology
| Total number of reports on long-term detention cases sent to the Minister during 2016–17 within 12 months of s 486N reports being recieved from the department | KPI Target Achieved Result – 82.6% Target – 80% |
| Total number of reports on long-term detention cases sent to the Minister during 2016–17 |
Result
The Office gives priority to preparing s 486O assessments for people in detention, particularly those held in immigration detention facilities, over people who have been granted a visa and released from detention, who have been removed from Australia, or are held in concurrent detention in correctional facilities. Of 1,675 reviews from the department that were referenced in reports sent to the Minister, 1,383 were sent to the Minister within 12 months of the review being received from the department.
The Office's result for KPI 3 is 82.6 per cent.
KPI 4 – Percentage of post-visit reports issued to the department within 90 business days of the inspection being completed
The Office is required to submit post-visit reports to the relevant department within 90 business days of completing an inspection of a department facility.
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 17.
Methodology
| Total number of post-visit reports issued to the department within 90 business days of the inspection being completed during 2016–17 | KPI Target Achieved Result – 100% Target – 80% |
| Total number of inspection reports issued to the department during 2016–17 |
Result
The Office issued 20 post-visit reports in 2016–17. All reports were issued within 90 business days of the inspection being completed.
The Office's result for KPI 4 is 100 per cent.
KPI 5 – Percentage of stakeholders which participated in engagement activities who provided an average of 'satisfied' or 'very satisfied' rating in feedback forms/surveys
Another method the Office uses to achieve its first strategic objective is through regular stakeholder engagement. Engagement activities are an enabler for improved Australian public administration through collaboration with agency, private sector and community stakeholders.
The Office measured the feedback from participants at stakeholder engagement activities (including stakeholder forums and communities of practice). This included post-event online surveys and evaluation forms completed by hand.
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 17.
Methodology
| Number of respondents satisfied or very satisfied | KPI Target Achieved Result – 99.5% Target – 90% |
| Total number of respondents who participate in the survey |
Result
The Office conducted numerous stakeholder engagement activities—such as round table discussions, presentations and information sessions during 2016–17. Participants were surveyed after the activities and of the 375 responses received, 373 averaged 'satisfied' or better.
The Office's result for KPI 5 is 99.5 per cent.
KPI 6a – Percentage of outputs delivered under the Australian Aid arrangementss
The Office provides assistance to a range of regional partners consistent with Australian Aid priorities through the Department of Foreign Affairs and Trade (DFAT). Regional ombudsmen partners include: Indonesia, Solomon Islands, Papua New Guinea, and other pacific nations under the Pacific Ombudsman Alliance.
Systemic improvement to public administration in one area has the potential to improve public administration generally. Every improvement the Office brings about through its influence provides greater assurance that the organisations being oversighted will act with integrity and treat people fairly.
Data sources used to calculate the results were reviews of grant assessments and related correspondence.
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 17.
Methodology
| Number of outputs delivered | KPI Target Achieved Result – 94.7% Target – 80% |
| Total number of outputs scheduled to be delivered under grant agreements |
Result
The International Team is required to carry out scheduled activities each year in order to comply with obligations under Australian Aid arrangements with DFAT. Out of 19 scheduled activities, 18 were met. Funding for the remaining activity was redirected to the Internship in Australia program with the approval of DFAT.
The Office's result for KPI 6a is 94.7 per cent.
KPI 6b – Percentage of reporting requirements met under the Australian Aid arrangements
The continuing success of the Office in administering its Australian aid arrangements is contingent on strictly meeting DFAT reporting requirements for grant agreements.
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 17.
Methodology
| Number of reporting requirements met | KPI Target Achieved Result – 100% Target – 100% |
| Total number of reporting requirements to be met under grant agreement |
Result
All reporting requirements for DFAT were met for 2016–17.
The Office's result for KPI 6b is 100 per cent.
KPI 7 – Percentage of approaches finalised within the Office's service standards
Receiving and investigating complaints/approaches is an important function of the Office, as it enables the public to challenge (and seek independent review of) the actions of the entities the Office oversights. While complaint investigations may decrease over time, qualitative information suggests that complaints are becoming more complex and harder to resolve.
The Office aims to be valued for providing a professional and impartial complaint-handling and investigation service and will form a key element in enhancing citizens' access to justice.
It is incumbent for the Office to provide an efficient and effective complaint-handling service. In line with the Office's current work practices, complaints are to be appropriately dealt with in a timely manner (as per internal service standards) or escalated accordingly.
The Office measures timeliness of complaint-handling services based on the category of approaches received. Approaches can be assigned to one of five categories based on the complexity of the issue, with Category 1 being the least complex, and Category 5 being the most complex. The service standard timeframe for each category is consistent throughout the Office as follows:
| Approach Category | To be finalised within |
|---|---|
| Category 1 | 3 working days |
| Category 2 | 2 weeks |
| Category 3 | 3 months |
| Category 4 | 6 months |
| Category 5 | 12 months |
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 17.
Methodology
| Total number of approaches closed by benchmark service standard | KPI Target Not Achieved Result – 76.6% Target – 85% |
| Total number of approaches closed |
Result
Taking the varied timeframes into account, the following results were calculated for the whole-of-Office during 2016–17.
The closure rate for Category 1 approaches improved from 86.5 per cent during 2015–16 to 96.4 per cent in 2016–17, however the closure rate for Category 2, 3 and 4 approaches all fell slightly. Although the overall result does not meet the target, it should be noted that the number of approaches closed increased by 3,794 (11.8 per cent) compared to 2015–16. High volumes of approaches about Centrelink debt and private health insurance have impacted the Office's ability to meet the service standards. The overall result was a slight improvement on 2015–16, and the Office will continue to focus on improving its complaint-handling service by focusing on improving the identification of emerging issues and working with agencies to resolve problems at the earliest possible opportunity.
The Office's result for KPI 7 is 76.6 per cent.
| Approach Category | Approaches closed within timeframe | Approaches closed | Percentage finalised within timeframe |
|---|---|---|---|
| Category 1 | 12,711 | 13,440 | 94.6% |
| Category 2 | 11,982 | 18,790 | 63.8% |
| Category 3 | 2,449 | 3,053 | 80.2% |
| Category 4 | 409 | 636 | 64.3% |
| Category 5 | 2 | 6 | 33.3% |
| Total | 27,553 | 35,925 | 76.6% |
KPI 8 – Percentage of Office statutory requirements in relation to law enforcement met
The Office is responsible for overseeing approximately 20 law enforcement agencies and their use of certain covert and intrusive powers. The Office's role is to provide assurance that agencies are using their powers as Parliament intended, and if not, hold the agencies accountable to the Parliament and the public. Currently, the Office conducts inspections regarding:
- telecommunications interceptions under Chapter 2 of the Telecommunications (Interception) Act 1979 (Cth) (TIA Act)
- stored communications under Chapter 3 of the TIA Act
- telecommunications data (metadata) under Chapter 4 of the TIA Act
- surveillance devices under the Surveillance Devices Act 2004 (Cth), and
- controlled operations under Part IAB of the Crimes Act 1914 (Cth).
In addition to our inspections, the Office also reviews:
- the exercise of coercive powers by the Director of the Australian Building and Construction Commission, and
- the AFP's administration of Part V of the Australian Federal Police Act 1979 (Cth).
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 18.
Methodology
| Number of statutory requirements met | KPI Target Achieved Result – 100% Target – 100% |
| Total number of statutory requirements to be met |
Result
Limited detail can be provided publicly due to the sensitivity of operational aspects of this work carried out by the Office. The Office has statutory obligations to carry out inspection regimes on relevant agencies, including auditing relevant records and testing agencies' processes and systems, and to meet reporting requirements to the Parliament following those inspections.
During 2016–17, the following reports were published:
- Telecommunications Interceptions Ministerial Report (2015–16 annual report, submitted on 21 September 2016)
- Surveillance Devices Report (1 January – 30 June 2016 half-yearly report, submitted on 22 September 2016), and
- Surveillance Devices Report (1 July – 31 December 2016 half-yearly report, submitted on 27 February 2017).
The Office's result for KPI 8 is 100 per cent.
KPI 9 – Percentage of Office statutory requirements in relation to Commonwealth public interest disclosures met
In providing effective oversight and promotion of the administration of the Public Interest Disclosure scheme for the Commonwealth public sector, the Office has a range of statutory requirements. These include legislation, records and internal standards.
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 18.
Methodology
| Number of statutory requirements met | KPI Target Not Achieved Result – 96.7% Target – 100% |
| Total number of statutory requirements to be met |
Result
The extent to which the Office met its statutory requirements in relation to the Public Interest Disclosure scheme was measured by analysis of the timeliness of allocation decisions made by authorised officers within the Public Interest Disclosure Team. Under the Public Interest Disclosure Act 2013, an authorised officer must use best endeavours to make an allocation decision within 14 days of receipt of a disclosure. Over the course of the year, authorised officers assessed 60 attempted public interest disclosures. A number of the allocation decisions were delayed by more than 14 days due to the complexity of the issue and/or resourcing issues.
The Office's result for KPI 9 is 96.7 per cent.
KPI 10 – Percentage of stakeholders which participated in engagement activities who provided a 'satisfied' or 'very satisfied' rating in feedback forms/surveys
The Office conducts regular stakeholder engagement and guidance in an endeavour to ensure that its statutory requirements in relation to Commonwealth public interest disclosures are met and to assist entities with the proper implementation of PID within the public sector.
The role of the Office is to support and oversight entity complaint-handling processes. The Office provides assurance to agencies, the Government and the public that the organisations it oversights are dealing with complaints effectively.
The Office measured the feedback from participants at eight Public Interest Disclosure stakeholder engagement activities (including stakeholder forums and communities of practice). Feedback was provided via post-event online surveys and surveys at the finalisation of the event.
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 18.
Methodology
| Number of respondents who provided a satisfied or very satisfied response | KPI Target Achieved Result – 98.3% Target – 90% |
| Total number of respondents who participated in the survey |
Result
A total of 115 attendees provided feedback following these sessions, of which two provided an average response of 'less than satisfied' with the Public Interest Disclosure event.
The Office's result for KPI 10 is 98.3 per cent.
KPI 11 – Percentage of public users who completed the survey for privatehealth.gov.au who provided a 'satisfied' or 'very satisfied' response regarding the quality of information provided by the website
The Office gauged consumer satisfaction with the private health insurance consumer website via online surveys submitted by users throughout 2016–17. Amongst other questions, users were asked 'please rate the privatehealth.gov.au website on quality of information'. All excellent, good and average responses were classified as satisfied or better for the purpose of measuring performance against this KPI.
KPI Source
Office of the Commonwealth Ombudsman 2016–17 Corporate Plan, page 18.
Methodology
| Number of respondents satisfied or very satisfied | KPI Target Not Achieved Results – 76.4% Target – 80% |
| Total number of respondents who participated in the survey |
Result
577 of 755 respondents found the quality of information provided on the website to be excellent, good or average.
The Office's result for KPI 11 is 76.4 per cent.
Analysis
By meeting eight of the 11 KPI targets for 2016–17 and failing to meet three KPI targets by a small margin, the Office has demonstrated its ability to carry out its purpose effectively throughout the year.
With respect to complaint-handling (KPI 7), the Office continues to operate in an environment of constrained resources with an increasing work volume. A total of 41,301 approaches were received during 2016–17, an increase of 9 per cent compared to 2015–16.
The closure rate for Category 1 approaches improved from 86.5 per cent during 2015–16 to 96.4 per cent in 2016–17. However, the closure rate for Category 2, 3 and 4 approaches all fell slightly. High volumes of approaches about Centrelink debt and private health insurance have impacted the Office's ability to meet the service standards. Overall, the closure rate for all categories rose from 76.5 per cent in 2015–16 to 76.7 per cent in 2016–17. The Office will continue to build on the improvements made during 2016–17 by focusing on improving the identification of emerging issues and working with agencies to address problems at the earliest opportunity.
Office statutory requirements in relation to Commonwealth public interest disclosures (KPI 9) recorded an improved result of 96.7 per cent of statutory requirements met, compared to the 2015–16 result of 93.8 per cent. The reasons for the delays were: delays in receiving information from disclosers; voluminous information received from disclosers; and turnover of authorised officers at the beginning of the financial year. We have improved our internal systems and processes for managing the timeliness of disclosures going forward and we have identified and will be implementing further changes to continue to improve our systems and processes.
While respondent satisfaction with the private health insurance consumer website (KPI 11) did not meet the 80 per cent KPI target, 76.4 per cent of respondents indicated they were satisfied with the quality of information provided on the privatehealth.gov.au website. This is an increase from 75.1 per cent satisfaction rating from respondents during 2015–16. An updated search feature was introduced in February 2017 which may have contributed to the increased result. The Office values the feedback provided in these online surveys and will continue to review the feedback to improve the quality of the information on the privatehealth.gov.au website.
Financial performance
The Office recorded a small operating surplus of $0.093 million (excluding depreciation and amortisation) in 2016–17 (2015–16: operating deficit $0.079 million). The 2016–17 operating surplus was broadly consistent with the balanced outcome estimate included in the 2016–17 Portfolio Budget Statements.
Expenses
Total expenses increased from $24.4 million in 2015–16 to $29.9 million in 2016–17. The increase was mainly driven by travel costs, property costs and additional staffing costs associated with new functions including, Defence abuse reporting, VET Student Loans Ombudsman and the ACT Reportable Conduct Scheme.
Income
Appropriation revenue increased from $20.8 million in 2016–17 to $21.0 million in 2016–17, a marginal increase of $0.2 million. This is the balance of the additional funding received to manage the new VET Student Loans Ombudsman function and the reduction generated by savings measures and efficiency dividends.
Sale of goods and rendering of services revenue increased from $2.6 million in 2015–16 to $8.1 million in 2016–17. The increase mainly related to funding from the Department of Defence for the abuse reporting function and additional revenue from the ACT Government for the Reportable Conduct Scheme. The remaining revenue is represented by the International Program funded by the Department of Foreign Affairs and Trade, and the work undertaken for the ACT Ombudsman function, funded by the ACT Government.
Assets
Total assets increased by $2.8 million, comprising:
- An increase in cash held ($0.2 million) up from $0.15 million in 2015–16.
- Acquisition of assets ($1.7 million), offset by depreciation and amortisation ($0.9 million).
- An increase in trade and other receivables ($11.5 million) up from $9.6 million in 2015–16.
The Office acquired $1.7 million in new assets in 2016–17, funded through the Departmental Capital Budget. This included the replacement of ICT infrastructure, purchase of new software, refurbishment of offices and enhancements to core existing ICT systems. Trade and other receivables accounted for a large increase in the total assets, this was primarily associated with the cost recovery arrangements for the Defence abuse reporting function. Assets were checked for impairment and a stocktake undertaken at year end to assure completeness. Assets are maintained and kept in good working order by the Office.
Liabilities
Total liabilities increased by $2.8 million, which was mainly due to increased payables ($1.4 million), trade creditors ($0.4 million), unearned income ($0.6 million) and salary increase ($0.4 million). The increase in provisions of $1.4 million was made up of employee provisions ($0.9 million), onerous contracts ($0.5 million) and an increase in make good provisions ($0.060 million).