CENTRELINK ANNUAL REVIEW 2001-02 Comments and requests for further information on this review are welcome and can be sent to: Ms Jann McCann Telephone: (02) 6212 0023 Fax: (02) 6212 0480 Email: [email protected]Strategic Services Team Centrelink National Support Office Box 7788 Canberra Business Centre ACT 2610 The Annual Review is a ‘short form' overview only. It is designed to give a concise summary of Centrelink's activities and financial position for the year ended 30 June 2002. Both the Annual Report and this Annual Review may be accessed through the internet at www.centrelink.gov.au Positive future Created in 1997, Centrelink will continue to make a positive difference to the lives of many Australians. This review is drawn from the Centrelink Annual Report 2001–02. It describes our performance in the 2001–02 financial year and highlights our plans for the future. e-Business During 2002, Centrelink has progressed the focus on e-Business. In March of this year, Centrelink created the e-Business Governance Group, which is responsible for systematic changes to the way Centrelink does business, using electronic delivery mechanisms within and beyond Centrelink boundaries for customers, citizens, community, business and government. See in this document for examples of how Centrelink is intergrating e-Business into its operations.
Transcript
CENTRELINK ANNUAL REVIEW 2001-02Comments and requests for further information on this review are welcome and can be sent to:
The Annual Review is a ‘short form' overview only.
It is designed to give a concise summary of Centrelink's activities and financial position for the year ended 30 June 2002.
Both the Annual Report and this Annual Review may be accessed through the internet at www.centrelink.gov.au
Positive futureCreated in 1997, Centrelink will continue to make a positive difference to the lives of many Australians. This review is drawn from the Centrelink Annual Report 2001–02. It describes our performance in the 2001–02 financial year and highlights our plans for the future.
e-BusinessDuring 2002, Centrelink has progressed the focus on e-Business. In March of this year, Centrelink created the e-Business Governance Group, which is responsible for systematic changes to the way Centrelink does business, using electronic delivery mechanisms within and beyond Centrelink boundaries for customers, citizens, community, business and government. See in this document for examples of how Centrelink is intergrating e-Business into its operations.
From our ChairmanThis financial year has been another year of challenge and new opportunity.
For much of 2001-02 Centrelink was focused on Australians Working Together (AWT) in the lead up to the two staged implementation in July and September 2002. AWT has fundamentally changed the way the agency does business. Most jobs in Centrelink will change and a large number of new people will join the agency to work alongside our current staff in the new roles of Personal Advisers.
Strong relationships with the thousands of non-government organisations in the community sector have always been important to Centrelink. These relationships are critical to the agency's role in delivering AWT. The agency will need to form even more effective partnerships with non-government organisations to ensure that customers receive the best possible support to enable
them to move forward. During the year, the Board took the opportunity to host informal gatherings with non-government organisation representatives and Centrelink managers in Sydney and Hobart. These meetings provided valuable opportunities to share views and strengthen relationships. This initiative will continue in the coming year.
One of the big challenges the agency faced related to the collapse of Ansett. Centrelink was asked to assist the public by helping stranded Ansett passengers with the costs of accommodation and alternative travel arrangements to return home. The responsiveness and professionalism that Centrelink applied to this new challenge was exceptional. For many Australians, this was their first contact with Centrelink and it is pleasing that the interaction was positive for them.
Membership of the Board changed during the year. Both portfolio secretaries, Dr David Rosalky and Dr Peter Shergold vacated their positions on the Board—Dr Rosalky as a result of his resignation from the Australian Public Service and Dr Shergold on his appointment as Secretary to the Department of Education, Science and Training. I take this opportunity to thank them for their valuable contribution to the Board. The Board was pleased to welcome Mark Sullivan, the new Secretary of the Department of Family and Community Services.
I would like to express my appreciation for the work of my fellow Board members. Their wisdom and dedication to the work of Centrelink especially as chairs of Board committees was critical to the Board's effectiveness. I also extend my appreciation and that of the Board to Sue Vardon, the leadership team and the thousands of hard working and highly trained Centrelink staff in offices across Australia. Their efforts and commitment make dealing with Centrelink a positive experience for customers and has made the successes of the year possible.
Finally, our world changed in the course of the past year. The events of September 11, 2001 had an impact on all of our lives and some of the ramifications are still unclear. In response to the very strong feelings of sympathy and concern for those affected by the tragedies in New York and Washington, Centrelink staff initiated a condolence register for their New York public service counterparts. Thousands of Centrelink staff from every corner of Australia signed the register and many wrote poems and sent drawings. I was honoured, along with Sue Vardon, to present the condolence books (two volumes) to the US Ambassador, Thomas Schieffer who has passed them on to the employees of the New York Human Resources Agency.
Centrelink looks forward to the year ahead with a sense of optimism and confidence that the agency will, through its role in implementing government policy, continue to make a positive difference to the lives of many Australians.
John Pascoe AO
CHAIRMAN OF THE BOARD
From our Chief Executive OfficerFor many Australians, their experience of Centrelink is their local Customer Service Centre. For others we are on the other end of a telephone line. We are now very much a part of the local landscape for many citizens. Since our creation in 1997, our people and our places have been through a significant transformation. Our staffs are professional, respectful and friendly. Our offices are warm and welcoming.
Happily, most of our customers agree. In our most recent survey, 85 per cent of customers who have had an experience with one of our Call Centres or Customer Service Centres said that their experience was a good one.
Throughout the year we continued to listen to our customers. A simpler system with less paper work, that remembers what people told us the last time they were a customer, is something we know citizens want.
This year we have taken some big steps to make things simpler for them. The new Customer Account means claim forms will be almost redundant. It means that when citizens come to us, if we have helped them before, all we need from them this time is details of any changes in their circumstances. If they want to know what our records hold about them, or change any of their details, they will be able to access their account.
From 2003-04, customers will be sent an account statement every three months. This will dramatically reduce the number of letters we now have to send our customers and enable them to assist us in making sure that all the information we hold about their circumstances is up to date.
Service Profiling means that we can use our knowledge of our customers' characteristics and their circumstances to more effectively target our efforts and services. For example, we will be able to better assist those customers who are at risk of not meeting their obligations. This approach will allow much better use of our resources while getting better outcomes for our customers.
Our priorities2001-02 was another very challenging year as we prepared for the implementation of Australians Working Together (AWT) initiatives—a major new direction in the welfare system of which Centrelink is a key player. The successful implementation of AWT will remain a top priority in the coming year.
As well, Minister Vanstone set us four key priorities:
ensuring the integrity of the social security system;
helping people move forward;
making Centrelink even more responsive to customers; and
working in partnership with communities and business.
There are two additional management priorities, 'supporting our staff and agents to achieve our business objectives' and 'giving the Government confidence in its investment and transparency in its costs'.
Ensuring the integrity of the social security systemIn 2001-02 Centrelink finalised a Business Assurance Framework with our biggest client, the Department of Family and Community Services. The framework covers technical correctness, business outcomes, customer service offers and organisational performance.
In our framework plan for 'Getting it Right' the main action areas are:
policy and product improvement;
management support and accountability;
systems improvement; and
staff support.
The staff support strategies for 'Getting it Right' will enhance the roles of checkers and experts, update and simplify the e-Reference tool and raise staff technical skills for decision-making and accuracy of payments.
Ensuring the integrity of the social security system by controlling fraud and incorrect payments continues to be a major priority. Our detection and review capability is of a world standard. This year we added two more tools to our detection capability. These new tools are an internet-based facility, which opened in September 2001, and a dedicated telephone line, which was set up in January 2002. Both enable members of the public to anonymously report suspected fraud. All tip-off allegations received are forwarded electronically to a central Tip-off Identification site in Area West Australia.
Helping people move forwardA major focus of the year has been preparations for the start of AWT. The Personal Adviser role embodies the new directions implicit within the AWT initiative—that is individualised services, which focus on overcoming barriers and increasing our customers' ability to participate.
A major recruitment exercise was undertaken over the last months of this financial year. There were over 15 000 applicants from which Centrelink chose 400 exceptional people with special skills. These included a 71 year-old former business man and journalist who speaks seven languages and understands the special challenges faced by unemployed mature aged customers.
Making Centrelink even more responsive to customersOne of the success stories in 2001-02 is Centrelink Call. It has won consistent acclaim for its customer satisfaction, team leadership, individual performance and effective management, including in the Australian Teleservices Association Awards, run by the peak Australian call centre industry body. While technical innovations have helped boost productivity and streamline operations we will need to continue to pay attention to reducing call wait times.
To help families provide updated income estimates, in July 2001 we introduced the first online transaction for customers. Families with internet access can now update their income estimates from the convenience of their own home at a time they choose. This has been a great success with more than 50 000 estimates submitted online during the year. Feedback from families has been overwhelmingly positive.
Working in partnerships with communities and businessCentrelink is only one of many agencies that citizens can go to for help. For many of our customers, their local community and the many non-government organisations that work within these communities, offer a lifeline. Centrelink is committed to working in genuine partnerships with all these organisations. As much as possible, we are sharing our resources with our community partners. One of these resources, Community Connections, is a national data base of community organisations and their services, which we are developing in partnership with the community sector. This directory will connect Centrelink, customers and the community. It will eventually be an important resource for staff in Centrelink and community organisations. It is planned that this resource, along with other information services from Centrelink, will be available to community providers and the non-government sector through a dedicated extranet connection.
We have also established a number of reference groups to represent the interests of our customers and our community sector partners. These include reference groups representing older people, young people and migrants.
We also need to draw on the advice and the experience of our community partners when putting in place major initiatives such as AWT. The AWT Implementation Reference Group was established in May 2002 and includes membership from 13 community organisations and businesses. Its purpose is to bring a diverse range of views and opinions to the implementation process so that it works as well as possible for the community and customers.
Business groups are also key partners. The Centrelink Board of Management has been very supportive of Centrelink's recognition of the importance of the relationships we have with businesses and the priority we are placing on making these relationships work better. We are developing much smarter ways of interacting with them to reduce the impact and costs to them in dealing with Centrelink, for example, when confirming customer earnings. The Employer Contact Unit in Hobart has made good progress in the last year towards developing automated systems which, when implemented, will substantially reduce the imposition on employers. We are also making it much easier and cheaper for those businesses, which provide concessions to our customers to confirm their eligibility.
Financial resultsIn 2001-02 Centrelink produced a sound financial result with its Annual Financial Statements again being signed by the Auditor-General without qualification. We achieved:
an operating surplus of $6.96 million;
returns to the Government of all required efficiency dividends totalling $240.2 million; and
a positive cash position of $134.45 million.
To improve the business and cost efficiency of Centrelink services and government outcomes, Centrelink continued to work on various projects including business process redesign, strategic and channel cost management, and partnering and strategic sourcing strategies. The results of these projects will be reflected in our performance in 2002-03.
The next 12 months and beyondNext year Centrelink will once again focus on meeting the expectations of the Government, client agencies, business, communities and customers by:
improving consistency of performance and practice by getting it right the first time;
helping Australians move forward by building a stronger focus on economic and social participation;
meeting community expectations by delivering quality service; and
engaging with the community by delivering better outcomes.
The theme for the new Business Plan 2002-05 is 'Delivering Today and Transforming Tomorrow' The Plan identifies eight key objectives and the Government's and management's priorities. It provides the context for making decisions about projects and other activities, with emphasis on positioning Centrelink to effectively implement AWT initiatives. The Business Plan will also be used throughout the organisation as the basis for detailed Business Improvement Plans.
The effective delivery of programs and services in rural, remote and Indigenous communities will continue as a high priority, with particular focus on using new and emerging technologies and service delivery options.
In 2002, improvements will be made to Quality on Line—our online correctness of decision making tool. Already significant progress has been made with Edge, the decision support system for Family Assistance Office claims. Customer risk profiling is also being introduced to further streamline decision making.
The learning priorities for 2002-03 are aligned with the Business Plan. These include: introducing the new induction program, AWT training and nationally recognised learning leadership development programs, improving the technical skills for 'Getting it Right', training and accreditation for work checkers, workplace-based trainers and training for Centrelink Agents.
Despite considerable improvement this year, people management will again require substantial effort at all levels throughout Centrelink to ensure that staff are properly supported through continuous change.
Thank youI would like to thank our client agencies and our people for their contributions to Centrelink during 2001-02. I want especially to acknowledge the hard work of Centrelink staff in embracing the year's challenges with commitment and professionalism.
I particularly want to thank, John Pascoe, AO, the Chairman of the Centrelink Board of Management and my fellow Board members whose guidance, expertise and commitment to our organisation has, as always, been immensely valuable.
Sue Vardon
CHIEF EXECUTIVE OFFICER
Corporate overviewBusiness arrangementsCentrelink is a statutory authority within the Family and Community Services portfolio. Other agencies in the portfolio are the Department of Family and Community Services, the Child Support Agency, the Social Security Appeals Tribunal and the Australian Institute of Family Studies.
Funding arrangementsCentrelink's revenue is provided through Business Partnership Agreements or similar arrangements with client agencies. Funds are appropriated to the policy agencies and paid to Centrelink in return for specified services. These purchase agreements specify:
the products and services (outputs) Centrelink has agreed to provide to assist client agencies in achieving their outcomes;
an accountability and assurance framework including a range of key performance indicators, reciprocal assurances, performance measures and reporting requirements;
details of the funding arrangements or 'purchase' price;
protocols to be followed to manage particular issues, such as dispute resolution or variations to the agreement; and
any agreed priorities during the lifetime of the agreements, which commonly run for 3 to 5 years, including an annual review process.
Outcome and outputCentrelink has one Government directed outcome, which is 'effective delivery of Commonwealth services to eligible customers'. The outcome is supported by the output 'efficient delivery of Commonwealth services to eligible customers.
Centrelink's corporate goals are the basis for developing strategies to achieve the outcome and output. The Balanced Scorecard is Centrelink's primary instrument for measuring performance against its corporate goals.
Our purposeCentrelink was created to provide exceptional service to the community by linking Australian government services and achieving best practice in service delivery.
Our visionCentrelink will make a positive difference to Australian individuals, families and communities particularly during transitional periods in their lives.
Our missionCentrelink's mission states the scope of our unique business that sets us apart from other organisations and exhibits our commitment to our customers and stakeholders.
Centrelink will build a stronger community by:
simplifying access to government services by providing a single entry point;
providing innovative and personalised services, opportunities and support, that are culturally appropriate, during key life events;
maintaining a high level of customer service, while ensuring strong accountability to stakeholders; and
building quality relationships with our stakeholders to continually improve the social well-being of Australian society.
Outcome and output structureOur goals and prioritiesThere are six goals and a range of supporting priorities that will ensure Centrelink achieves its mission.
TABLE 1: Our goals and priorities
GOALS PRIORITIES
Client partnerships
To build partnerships with client agencies that deliver the required results and provide value for money
Ensuring the integrity of the social security system
Customer and community
To increase customer and community involvement and satisfaction with services
Helping people move forward Working in partnership with communities and business
Making Centrelink even more responsive to citizens and business
Centrelink people
To provide Centrelink's people with confidence, knowledge, skills and tools to meet the challenges of current and future business and their own career aspirations
Supporting our staff and agents to achieve our business objectives
Cost-efficiency
To manage our business efficiently and return a dividend to the Government
Giving the Government confidence in its investment and transparency in its costs
GOALS PRIORITIES
Innovation
To provide innovative and personalised solutions, consistent with government policy
Supporting and promoting innovation and creativity in Centrelink people
Best practice
To be first choice and benchmarked as the best practice in service delivery
Ensuring effective internal and external governance and accountability arrangements
Risk managementThe application of risk management principles enables Centrelink to improve the way it controls and manages its business. Through risk documentation, Centrelink is able to provide assurance to its stakeholders about business control and strategy development.
During 2001-02 Centrelink continued to integrate and improve its risk management skills and abilities through:
integration of risk management into business planning processes;
development of a risk register database;
completion of more than 57 risk assessment workshops; and
requirements for risk management data in many key components of the business.
Risk management support services continue to be provided to teams and leaders throughout Centrelink. This assists with the integration of risk management principles and processes into business practices. Centrelink will continue to look for opportunities to demonstrate its ability to meet stakeholder expectations through the provision of risk-based assurance data.
Our servicesFIGURE 2: Our services
Note: Numbers in brackets relate to client agencies' respective outputs as outlined in 2001- 02 Portfolio Budget Statements.
A key to abbreviations used in this figure appears on page 16.
EMPLOYMENT
FaCS
Newstart Allowance (Output Group 3.1)
Mature Age Allowance (Output Group 3.1)
Partner Allowance (Output Group 3.1)
Widow Allowance (Output Group 3.1)
Employment Entry Payment (Output Group 3.1)
Education Entry Payment (Output Group 3.1)
Mutual Obligation (Output Group 3.1) (DEWR 1.2.8)
Centrelink Employer Contact (Output Group 3.1)
Special Employment Advance (Output Group 3.1)
Advance Payments (Output Group 3.1)
Community Development Employment Project Participant Supplement (Output Group 3.1) Preparing for Work Agreements (Output Group 3.1) (joint with DEWR)
DEWR
Job Seeker Registration (Output 1.2.1)
Application of the Job Seeker Classification Instrument (Output 1.2.1)
Enrolment for Job Matching Services (Output 1.2.1)
Referral to Job Search Training (Output 1.2.1)
Referral to Intensive Assistance (Output 1.2.1)
Referral to New Enterprise Incentive Scheme (Output 1.2.1)
Referral to Self Employment Development Providers (Output 1.2.1)
Special Needs Assessment (Output 1.2.1)
Issue Wage Assistance Cards (Output 1.2.9)
Referral to Work for the Dole (Output 1.2.8)
Return to Work Program (Output 1.2.10)
Maintenance of Employment Self Help Facilities (Output 1.2.3)
Occupational Psychologists (Output 1.2.2)
Community Support Program (Output 1.2.5)
Indigenous Employment Program (Output 1.2.9)
DEST
Promotion of New Apprenticeships (Output Group 2.2)
Referral to New Apprenticeships Access Programme (Output Group 2.2)
Referral to Advanced English for Migrants Programme (Output Group 2.3)
Referral to Literacy and Numeracy Programme (Output Group 2.3)
Referral to National Office of Overseas Skills Recognition Courses (Output Group 3.2)
YOUTH & STUDENTS
FaCS
Youth Allowance (Output Group 1.2)
Austudy Payment (Output Group 1.2)
Pensioner Education Supplement (Output Group 3.1)
Student Financial Supplement Scheme (Output Group 1.2)
Reconnect Program (Output Group 1.2)
Fares Allowance (Output Group 1.2)
Youth and Student Line for Youth Allowance and Austudy Payment Enquiries
Parent Liaison Service (Output Group 1.2)
DEST
ABSTUDY (including Living Allowance and Incidental Allowance) (Output Groups 1.2 and 2.1)
Student Financial Supplement (Loans) Scheme for ABSTUDY customers (Output Group 2.1)
Assistance for Isolated Children (including Distance Education Allowance, Second Home Allowance and Board & Additional Board Allowance) (Output Group 1.2)
ABSTUDY Pensioner Education Supplement (Output Groups 1.2 and 2.1)
Referral to Jobs Pathway Programme (Output Group 2.3)
Referral to Job Placement, Employment and Training (Output Group 2.3)
Referral to Young Offenders' Pilot Programme (Output Group 2.3)
Career Information Centres (Output Group 2.3)
Career Counselling (Output Group 2.3)
Referral to Green Corps (Output Group 2.4)
RETIREMENT
FaCS
Age Pension (Output Group 3.4)
Wife Pension (Output Group 3.4)
Widow B Pension (Output Group 3.4)
Pension Loans Scheme (Output Group 3.4)
Pension Bonus Scheme (Output Group 3.4)
Financial Information Service* (Output Group 3.4)
Commonwealth Seniors Health Card (Output Group 2.2)
Pension Concession Card* (Output Group 2.2)
Pharmaceutical Allowance* (Output Group 2.2)
Telephone Allowance* (Output Group 2.2)
Bereavement Allowance* (Output Group 3.1)
Nominee Arrangements*
* Managed by Retirement Community Segment for all customers
DHA
Income Assessment for Residential Care Fees (Administered Item 3)
DVA
Veterans' Information and Community Support Services in selected sites (Output 4.1)
FAMILIES a CHILDREN
FaCS
Family Tax Benefit (parts A&B) (Output Group 1.1)
Maternity Allowance (Output Group 1.1)
Maternity Immunisation Allowance (Output Group 1.1)
Double Orphan Pension (Output Group 1.1)
Child Support registrations (Output Group 1.3)
Child Care Benefit (Output Group 1.4)
Family Adjustment Payment (Output Group 1.1)
Parenting Payment (single and partnered) (Output Group 3.1)
Jobs, Education and Training (Output Group 3.1)
Concession Cards (Output Group 2.2)
DISABILITY & CARERS
FaCS
Disability Support Pension (Output Group 3.2)
Wife Pension (Output Group 3.2)
Newstart Allowance (Incapacitated) (Output Group 3.1)
Youth Allowance (Incapacitated) (Output Group 3.1)
Sickness Allowance (Output Group 3.2)
Mobility Allowance (Output Group 3.2)
Disability Services (Output Group 3.2)
Disability Employment Services (Output Group 3.2)
Carer Payment (Output Group 3.3)
Carer Allowance (Output Group 3.3)
DEWR
Employment Services for Special Groups (People with Disabilities) (Output 1.2.1)
DEST
Disabled Apprentice Wage (Output 2.2)
DHA
Commonwealth Carelink Program (Administered Program)
Hearing Services (Outcome 6, Administered Item 1)
RURAL & HOUSING
FaCS
Remote Area Allowance (Output Group 2.1)
Rent Assistance (Output Group 2.1)
Retirement Assistance for Farmers (Output Group 3.4)
Rural Transaction Centres (Administered Program 1.1)
Commonwealth Flood Assistance Package- Business Grants (Administered Program 1.1)
Other services
Centrelink Agents
Service Tasmania
WA Telecentres
Centrelink Access Points
MULTICULTURAL SERVICES
FaCS
Multicultural Service Officer Program
Centrelink Multilingual Call
Interpreter and Translation Services
Special Benefit* (Output Group 3.1)
Crisis Payment* (Output Group 3.1)
* Managed by Multicultural Community Segment for all customers.
DIMIA
Assurance of Support (Output 1.1)
Pilot Work Right Information Line (Output 1.3)
Employers' Work Right Checking Line (Output 1.3)
INDIGENOUS SERVICES
Indigenous Service Officers (community development)
Indigenous Customer Service Officers (customer contact)
Community Agents
Interpreter Services
Indigenous Service Units
Indigenous Call Centres
Indigenous Employment Outreach Officers
Remote Visiting Teams
SOCIAL WORK SERVICES
Social Work Services for customers with difficult personal and family issues
Domestic and Family Violence Policy and Procedures Child Support exemptions
Assessment of Youth Allowance for young people in situations of extreme family breakdown
Assessment of Crisis Payment for people leaving situations of domestic violence
Social Work Services for customers facing multiple barriers to participation
INTERNATIONAL SERVICES
Portability of payments
International agreements
Foreign pension access and assessment
OTHER SERVICES
Centrelink Community Officers and other assistance for homeless customers
Centrepay
Customer Confirmation Service
AEC
Electoral Roll data update (Output 1.1.2)
AGD
Family Law Online (Output 1.3)
ATO
Indigenous Tax Time Program (Output 1.1)
FaCS
Health Care and other Customer Concessions (Output Group 2.2)
Corporate Services
DFAT
Australian Passport Information Service Call Centre (Output 2.1.2)
SHA
Rent Deduction Scheme
TSG
Service Tasmania
DOTARS
Bass Strait Passenger Vehicle Equalisation Scheme (Administered Program 2.1)
Tasmanian Freight Equalisation Scheme (Administered Program 2.1)
KEY
ABBREVIATIONS DEPARTMENT/AGENCY
AEC Australian Electoral Commission
AFFA Department of Agriculture, Fisheries and Forestry—Australia
AGD Attorney-General's Department
ATO Australian Taxation Office
DEST Department of Education Science and Training
DETYA Department of Education, Training and Youth Affairs (renamed Department of Education, Science and Training in November 2001)
DEWR Department of Employment and Workplace Relations
DEWRSB Department of Employment, Workplace Relations and Small Business (renamed Department of Employment and Workplace Relations in November 2001)
DFAT Department of Foreign Affairs and Trade
ABBREVIATIONS DEPARTMENT/AGENCY
DHA Department of Health and Ageing
DIMIA Department of Immigration, Multicultural and Indigenous Affairs
DOCITA Department of Communications, Information Technology and the Arts
DOTARS Department of Transport and Regional Services
DVA Department of Veterans' Affairs
FaCS Department of Family and Community Services
Finance Department of Finance and Administration
Our businessCentrelink contributes to the social and economic outcomes set by the Government by delivering services on behalf of 25 client agencies. These cover a wide range of outputs in the form of products and services. For the full range of products and services provided by Centrelink, see Figure 2, page 13.
TABLE 2: Our business operations
FUNCTIONS: Income support, other payments and referral services
2001-02 2000-01
Our dimensions
Service delivery points Over 1 000 Australia wide
Over 1 000 Australia wide
Number of employees 24 641 24 356
Number of client agencies 25 client agencies(a) 20 client agencies
Payments on behalf of client agencies Approx. $53.4 billion Approx. $51.7 billion
Number of individual entitlements 9.5 million 9.3 million
Letters to customers Approx. 96.1 million Approx. 97.3 million
FUNCTIONS: Income support, other payments and referral services
2001-02 2000-01
Home visit reviews 35 701 65 267
New claims granted 3.2 million 5.2 million(b)
Successful telephone calls Approx. 23.3 million Approx. 22.5 million
Internet web page views 15 million 9 million
(a).State and Territory Housing Authorities are counted as separate agencies.
(b).New claims lodged.
A recent review by the Boston Consulting Group concluded Centrelink has delivered efficiency gains of around 21 per cent since its establishment, an improvement that compares favourably with gains achieved by leading private sector network businesses over the same period.
TABLE 3: Our network
Customer Service Centres (incorporating the Family Assistance Office)
314
Centrelink Agents 320
Rural Visiting Services In identified locations as required
Separate Specialist Service Centres 32
Call Centres 27
Veteran Information Services 13
Service Tasmania Centres 11
Rural Transaction Centres 29
Access Points 127
Area Support Offices 15
National Support Office 1
RURAL AND REGIONAL SERVICING STRATEGYWorking in partnership with communities and business is essential to the success of the strategies outlined in Centrelink's National Rural and Regional Servicing Strategy. Centrelink relies on the partnership and goodwill of individual community organizations, which provide Agent and Access Point services in rural and remote Australia on Centrelink's behalf. To assist in the delivery of better service to these parts of Australia, Centrelink is providing some communities with additional
infrastructure capability and a standard suite of IT. Under the Servicing Strategy, Centrelink has also expanded its Agent and Access Point network to 174 Agent sites and 127 Access Points. Combined with 146 Indigenous Community Agents, Centrelink has representation in over 440 rural and remote communities Australia-wide.
As part of Centrelink's ongoing commitment to improving service delivery to rural and remote Australia, we also support and participate in the Rural Transaction Centres Program administered by the Department of Transport and Regional Services. The Program provides funds to help small rural communities establish facilities, which give local access to a range of services including financial services, Australia Post, phone, fax, the internet and Medicare easyclaim.
Organisational chart
Corporate governance frameworkCentrelink operates under the direction of a Board of Management. Internally, it is governed by a 'Guiding Coalition'. There are clearly designated roles for the Board of Management and the Guiding Coalition.
A 'Corporate Governance Handbook' and a condensed version, Board Talk, support Board of Management operations and increase the understanding of governance structures within Centrelink. These publications are available to all staff.
Guiding CoalitionThe Guiding Coalition is Centrelink's internal 'corporate board'. It includes all Centrelink Senior Executive Service officers and meets every six to eight weeks to discuss strategic issues of importance as well as make decisions about Centrelink's management and business directions. Meetings are held in Canberra.
Management committeesThe Business Improvement Committee assists the Guiding Coalition. The Committee's primary role is to ensure the most effective and efficient use of project and national support maintenance program funds within Centrelink.
Board of Management
Board structureDuring 2001-02, Centrelink's Board of Management included:
the Chairman;
three part-time non-Executive Directors;
two non-voting members who were client department secretaries (part-year only); and
the Centrelink CEO (the sole 'Executive' Board member).
Board CommitteesThree Board of Management committees assist the Board in its work.
The Audit Committee ensures that Centrelink operates with proper financial management and internal controls.
The Information and Technology (I&T) Committee provides advice and direction on strategic I&T issues.
The Quality Committee is responsible for assuring the Board that Centrelink is delivering services that will see it remain as the 'first choice' for the Government and customers, and eventually be benchmarked as best practice in service delivery.
Financial summaryTABLE 4: Centrelink's net operating result 2001-02 and 2000-01
TABLE 5: Statement of financial position-assets and liabilities
2001-02
$'000
2000-01
$'000
% Change
%
Assets
Cash 134 445 124 099 8.34
Receivables 21 660 20 495 5.68
Total financial assets 156 105 144 594 7.96
Property, plant and equipment 325 516 302 362 7.66
Other non-financial assets 56 425 47 648 18.42
Total non-financial assets 381 941 350 010 9.12
Total assets 538 046 494 604 8.78
Liabilities
Loans 0 18 699 (100)
Employee provisions 332 553 320 433 3.78
Payables 96 151 78 025 23.23
Total Liabilities 428 704 417 157 2.77
Total equity 109 342 77 447 41.18
TABLE 6: Statement of cash flow
2001-02
$'000
2000-01
$'000
% Change
%
Net cash from operating activities 88 870 136 819 35.05
Net cash used by investing activities (84 075) (82 336) 2.11
Net cash from financing activities 5 551 14 715 62.28
Net increase/(decrease) in cash 10 346 69 198 85.05
Operating result Revenue and expenditure increased primarily as a result of the introduction of the
Australians Working Together (AWT) initiative, announced by the Government in the 2001-02 Budget.
Statement of financial positionTotal assets increased by $43.4 million as a result of:
the annual asset replacement program, including renewal of software licences and near completion of a full rollout of personal computers;
capitalisation of internally developed software related to Budget initiatives and other productivity improvement initiatives; and
an increase in prepayments to a number of suppliers to achieve more favourable terms and conditions for the organisation.
Total liabilities increased by $11.5 million because of:
increased employee provisions associated with the higher staff numbers required to implement new government initiatives;
payables in June including high asset acquisitions, particularly related to personal computers and office fitout, and the marketing of the life events products; and
offset by the full acquittal of the loan from Government, two years ahead of schedule.
Equity increased by $31.9 million as a result of:
the operating surplus and $24.3 million equity injection from Government to fund new capital to support the introduction of AWT and other initiatives.
Statement of cash flowNet increase in cash for the year is down by $58.9 million, primarily due to:
a lower operating surplus for the year;
comparatively higher levels of leave taken and paid in 2001-02 compared with 2000-01; and
repayment of borrowings in June 2002.
TABLE 7: Government dividend requirements
2001-02
$million
2000-01
$million
Standard 76.0 61.0
Special 139.4 139.4
IT infrastructure 24.8 24.8
Total 240.2 225.2
TABLE 8: Revenue to Centrelink 2001-02
Source of revenue $'000
Department of Family and Community Services 1 679 126
Department of Employment and Workplace Relations 121 642
Department of Education Science and Training 12 913
Department of Agriculture, Fisheries and Forestry-Australia 6 448
Department of Health and Ageing 3 710
Department of Foreign Affairs and Trade 2 492
Department of Transport and Regional Services 1 718
Attorney-General's Department 1 547
Child Support Agency 748
Department of Immigration, Multicultural and Indigenous Affairs 604
Department of Finance and Administration 459
Department of Veterans' Affairs 448
Australian Taxation Office 176
Australian Dairy Corporation 92
Australian Electoral Commission 53
Other revenue 22 564
Total revenue(a) 1 854 740
Source of revenue $'000
(a) Represents all revenue received, and includes revenue specified within the Business Partnership Agreements and revenue for services delivered outside those Agreements. Revenue from all sources other than agencies listed above is included under 'Other revenue’.
Prescribed efficiency dividendsIn line with previous years, Centrelink delivered government efficiency dividends in the form of a reduction in revenue from client agencies.
Total efficiency dividends returned to government increased by$15 million dollars compared to 2000-01.
Centrelink is subject to three separate dividends:
the standard efficiency dividend of 1 per cent of total net running costs;
the special efficiency dividend, applied in recognition of Centrelink's ability to remove duplication and streamline government services previously provided by a range of government agencies; and
the IT infrastructure efficiency dividend.
Since its inception Centrelink has returned a total of $826.4 million in efficiency dividends to the Government.
RevenueThe Department of Family and Community Services (FaCS) was Centrelink's major source of revenue, providing 90.53 per cent of Centrelink's overall revenue. Centrelink's operating revenue is primarily derived from those client agencies with whom Centrelink has Business Partnership Agreements. Centrelink is paid in accordance with arrangements specified in these Agreements for the delivery of services.
Performance at a glanceClient partnershipsGoal To build partnerships with client agencies that deliver the required
results and provide value for money
Priority Ensuring the integrity of the social security system
Results Centrelink met most of the major client agency key performance indicators (KPIs) with significant improvements overall. In 2001–02 Centrelink achieved a result of 91 per cent representing a 14 per cent increase on the previous year’s result of 77 per cent.
Key challenges maintaining and improving current performance results for all client
agencies;
refining and agreeing partnership with FaCS;
implementing the new funding model for FaCS, DEWR and DEST; and
reviewing AWT support tools.
BURDEKIN FARMERS THANKEDMango farmers in north and far north Queensland are helping to ensure taxpayers’ money is well spent. Each picking season farmers are asked to help Centrelink with its compliance responsibilities by verifying the earnings of casual fruit pickers who are also receiving assistance from Centrelink.
Mangos are grown commercially in the dry tropics and there are strong harvests each year taken from farms in Mareeba, west of Cairns, and the Burdekin, based in Ayr south of Townsville. ‘It was the busiest time of the year for farmers,’ said Area Central and Northern Queensland Compliance Manager John Hunt.
Key achievements successfully prepared for the introduction of AWT measures;
signed a landmark five-year Memorandum of Understanding with AFFA;
achieved a higher percentage of overall client agency KPIs;
signed off a new agency Business Assurance Framework agreement with FaCS;
Recent business partnership negotiations have resulted in the replacement of some of these KPIs with a smaller number of outcome–focused measures.
developed Customer Confirmation Online System for customer concession entitlements; and
commenced phase 2 of the Family Tax IT project.
‘There can be hundreds of people employed on a casual basis over the picking season in the Burdekin and data-matching is one way Centrelink makes sure customers are receiving their correct entitlements.’
The farmers are asked to confirm start and end dates of employment and the amount of money earned, including overtime. In this way, they are an essential part of Centrelink’s debt prevention strategy, and the efforts of farmers are certainly appreciated during this busy season.
John said that workers can contribute to simplifying the process. ‘Casual fruit pickers should declare the gross amount of money they earn including overtime and provide Centrelink with a copy of their payslips when lodging Newstart Allowance or Youth Allowance forms,’ he said.
Centrelink has been trialling various public information strategies in north Queensland over the past 12 months to publicise these debt prevention measures.
‘Farmers are now helping to deliver this message directly to pickers, reducing their workload and ours,‘ John added, between bites of a juicy mango.
Customer and communityGoal To increase customer and community involvement and satisfaction with
services
Priorities Helping people move forward Working in partnership with communities and business Making Centrelink even more responsive to citizens and business
Results Overall customer satisfaction with the quality of Centrelink's people, services and information is 75 per cent. This is 1 per cent lower than the record high achieved in 2000. Customer Service Centre satisfaction increased by 5.7 per cent from the previous year, with a result of 84.3 per cent for 2001. Call Centre satisfaction increased by 10.2 per cent from the previous year with a result of 85.3 per cent. International services remains exceptionally high at 94 per cent, down 3 per cent from the previous year.
Key Achievements increased customer satisfaction with Centrelink service provided by both Customer Service Centres and Call Centres;
streamlined and simplified processes to improve the customer's experience;
expanded the rural and regional services network to rural and remote communities;
implemented flexible banking and payment structures to assist Indigenous communities;
piloted the Personal Adviser role and started recruitment, training and systems support changes to ensure smooth AWT implementation; and
created supportive architecture and business rules with over 250 system changes to support AWT implementation.
Key challenges maintaining and enhancing customer satisfaction results;
developing service offers more closely tailored to the needs of particular customer groups;
engaging community providers to establish improved referral service capability nationally;
proving Centrelink's role is effective in implementing AWT; and
addressing changing customer expectations resulting from increased use of technologies such as Short Message Service, internet and other services in the community.
PROVIDING PERSONALISED SERVICEIn the past, information material for customers from Centrelink tended to reflect individual programs, payments and services. This meant that customers needed to know the right questions to ask to get the information they needed.
Centrelink’s new public information material is now based on our service delivery model. Customers need only be familiar with their own circumstances to access the range of options available to them through Centrelink's e-Reference suite.
This change represents a commitment to the community that Centrelink will manage the complexities of legislation for the customer, on behalf of the Government and allow staff to provide a more accurate and higher quality service to the public.
TURNING HER LIFE AROUNDMichelle* was 16 years old, pregnant and had recently left her parents’ home after numerous arguments. She had dropped out of school the year before and her prospects for further study, work or training were very poor. By the time she saw the Centrelink Social Worker, Michelle was depressed and suicidal, unable to see any future for herself.
The Social Worker contacted Anglicare Health Connections for Youth who immediately offered the high level of support that Michelle needed at that time. The Centrelink Social Worker arranged income support and initially counselled Michelle about her options. The Social Worker continues to work closely with the Anglicare Youth Worker, who found accommodation for Michelle until longterm housing was available. Regular case consultations between the agencies have been effective in providing a high level of support to this at risk young woman.
Three months later, Michelle reports that she feels emotionally stronger, and is more confident and optimistic. Michelle says the initial support from the Centrelink Social Worker and the ongoing assistance from the Anglicare Youth Worker, have been really important in turning her life around.
* A fictitious name has been used in this case study to protect the individual’s identity but is a record of a Personal Adviser’s discussion
CASE STUDY
RESPONDING TO THE ANSETT COLLAPSEThe sudden collapse of Ansett Airlines had a profound impact across the Australian community. It left tens of thousands of people either out of work or with an uncertain future, deprived some businesses of their livelihood, and left the travelling public inconvenienced and, in some cases, stranded mid-travel.
Centrelink, as the gateway for many government payments and services and with extensive experience in dealing with largescale redundancy and emergency situations, was called on to play a major part in the Federal Government’s response to the crisis.
By 9.00 am on the day of the collapse, Centrelink Call Centres started taking calls on a helpline for stranded travellers. In the majority of cases, Call Centre staff were able to advise customers of their options. In some cases, emergency financial assistance was required to get customers home. In cases like this, where this immediate assistance was needed, customers were referred to Customer Service Centres to organise the payment of expenses such as hotel bills. Centrelink on behalf of the Department of Transport and Regional Services, also assisted with car and boat hire and chartering buses and planes, including Defence aircraft, to return stranded passengers home.
Additional assistance was provided by operating the Employment Services Enquiry Line, from 8.00 am to 8.00 pm, seven days a week. Some local Customer Service Centres also stayed open for the first few weekends.
Centrelink produced a special employment kit about possible entitlements and also worked closely with local authorities and developed a unique agreement with the Australian Council of Trade Unions to provide information at 100 entitlement seminars across the country.
Centrelink peopleGoal To provide Centrelink people with confidence, knowledge, skills and
tools to meet the challenges of current and future business and their own career aspirations
Priority Supporting our staff and agents to achieve our business objectives
Results Following the excellent result in the previous financial year, there has been a levelling off with a slight reduction of 0.81 per cent in performance against the people measures in the Balanced Scorecard.
Note: 1999–2000 results have been calculated using 2001–02 targets to maintain relativities.
Key achievements developed a Career Pathways Map for Centrelink employees to show how career paths and options are linked by nationally recognised learning;
created the Centrelink Capability Index to allow Centrelink to monitor key staff indicators in the areas of availability, commitment and skills; and
established a national panel of providers to support competency-based recruitment services for the selection of over 450 Personal Advisers as part of AWT.
Key challenges negotiating Centrelink’s next Workplace Bargaining Agreement;
implementing workforce planning throughout Centrelink’s network;
developing a people management strategy;
developing a national recruitment strategy;
developing a remuneration strategy; and
implementing job redesign initiatives for 15 000 staff.
INSPIRING HIS COLLEAGUESPeter Godfrey joined Centrelink under the Graduate Administrative Assistant Scheme and has been working in Brisbane Call Centre as a Customer Service Officer since 1993. Peter is a quadriplegic and uses an electric wheelchair.
The Call Centre is an ideal environment for Peter and he has had various system-based tools adapted to assist him in performing his duties. He operates keyboard and telephone equipment with a specially developed mouthpiece rod fitted to his headset. Peter also uses Dragon Dictate, a voice activated command system linked to his computer.
Peter has made significant contributions to customer service. He knows a lot about Family Assistance Office entitlements, and provides a range of technical support to his colleagues as the Family Assistance Office scripts development officer and Subject Matter Expert, accredited Technical Support Officer and Family Assistance Office quality checker. He also assists fellow staff with training in navigation of PC-based products. As well as offering his technical expertise, Peter has represented staff in Brisbane Call Centre’s Strategic Leadership Group and has also contributed to a Workplace Diversity video being produced for Centrelink.
Peter is a high achiever whose colleagues see as an inspiration. His flexible approach and sense of humour reflect his commitment to overcoming the personal challenges of his disability.
MAPPING CAREER PATHWAYSCentrelink has developed a Career Pathways Map showing how career paths and options are linked by nationally recognised qualifications. This is the first time a large public sector organisation has used qualifications developed by the Australian National Training Authority to develop a career pathways map that indicates the skills and knowledge required to further employees' work and career aspirations.
Key for Career Pathways Vision
Adv Advanced
ARO Authorised Review Officer
BS Business Services
Bus Business
CAO Complex Assessment Officer
CDO Centrelink Disability Officer
Key for Career Pathways Vision
CS Customer Service
Deg Degree
Dev Prog Development Program
Dip Diploma
Fin Finance
FISO Financial Information Services Officer
FLM Frontline Management
Gov Government
Grad Cert Graduate Certificate
HR Human Resources
I&tT Information and Technology
ISO Indigenous Services Officer
JET Jobs Education & Training
L'ship Leadership
Mgr Manager
Mngment Management
MSO Multicultural Services Officer
Qual Qualification
SES Senior Executive Service
VCW Value Creation Workshop
Cost-efficiencyGoal To manage our business efficiently and return a dividend to the
Government
Priority Giving the Government confidence in its investment and transparency
in its costs
Results The results show the 2001-02 operating performance and the end of year cash and equity positions compared to the previous two years.
Key achievements achieved an operating surplus of $6.96 million; returned to Government all required efficiency
dividends totaling $240.2 million; and achieved a positive cash position of $134.45 million.
Key challenges managing Comcare Australia premium, especially high-cost claims;
refining and building on work completed to date on strategic cost management methodologies;
finalising the new external funding model in partnership with client agencies and the Department of Finance and Administration before the 2003-04 Budget;
further developing Call Centre automation opportunities; and
achieving efficiencies through streamlined processes, customer profiling and accounts delivered across multiple channels;
REDUCING CENTRELINK’S MAILCentrelink actively pursues ways to reduce the volume of mail sent to customers and increase the quality of information in them. In 2001-02, several initiatives reduced overall mail costs through more efficient use of resources and provided a better service for customers.
A number of Centrelink’s forms and letters were redesigned and incorporated into single mailouts, for example, Newstart Allowance claim forms have been redesigned as a letter, which can be issued in one envelope together with a statement-style letter. This reduced the cost of Newstart Allowance claim form postage by 25 per cent or around $1 million a year. Centrelink will progressively reformat the full range of Newstart Allowance claim forms (12 different types) and other Centrelink letters and forms to streamline mail to customers.
Other important initiatives under way are:
Launching the Centrelink Letters Principles to provide a comprehensive framework for all mail strategies, which includes business and operational risk assessment and effective stakeholder management.
Reducing the number of customer letters confirming customer initiated appointments with Centrelink. This is expected to result in an estimated reduction of 1.2 million letters a year.
Streamlining letters sent to job seeker customers and mapping current letter processes to core elements of service delivery. This is to examine: the cost of dealing with customer contact/rework after they receive letters; the system induced conditions, which result in multiple letters to customers; and opportunities to improve the quality and reduce the volume and cost of customer mail.
Developing an automated Paper Channel Management Information System to provide letters data to the desktop and help with better management of customer mail activities.
InnovationGoal To provide innovative and personalised solutions, consistent with
government policy
Priority Supporting and promoting innovation and creativity in Centrelink people
Key achievements CentreThink & Ideas Bank
CentreThink provides a forum for staff to discuss, promote and share ideas for improving Centrelink. CentreThink is available to staff at all levels of the organisation, and at all sites.
During the last six months of 2001-02, Ideas Bank was monitored full-time, which has resulted in greater efficiency in response times and an increase in the number of ideas being finalised.
Centrelink recently reviewed the processes for Ideas Bank and set standard response times (five days for administrator update, 28 days finalisation from date submitted).
Increased response times and greater staff functionality of the Ideas Bank system is expected to increase staff interest and the number of ideas submitted. Approximately 15 ideas have already been implemented nationally, with over 100 being supported for further development.
TRIALLING A SHORT MESSAGING SERVICEIn 2001–02 an important initiative targeted at improving services to young people and students was a trial of a Short Messaging Service (SMS). The trial aimed to help young job seekers and students meet Centrelink’s administrative requirements, reduce unnecessary customer contact, and resolve short-term cancellations and suspensions of entitlement, before customer payments are affected.
In June 2002 around 300 youth and student customers were sent an SMS message to remind them of appointments and, form lodgement requirements, to confirm payment delivery or to alert them to a decision to cancel or suspend them from payment. Initial customer reaction was positive, with several customers not selected for the trial asking to be included.
Best PracticeGoal To be first choice and benchmarked as the best practice in service
delivery
Priority Ensuring effective internal and external governance and accountability arrangements
Key achievements Fraud control
Centrelink is recognised around the world for expertise in fraud control. Specialised staff are sought as consultants to assist in developing fraud programs for Australian and international organisations.
During 2001-02, Centrelink engaged in the following arrangements.
Centrelink played a key role, with IBM and the Department of Family and Community Services in a consultancy study on risk management on social security schemes for the Government of Hong Kong represented by the Social Welfare Department. Ray White, Detection and Review lived in Hong Kong for the six-month duration of the consultancy. The consultancy was considered a success by all organisations and enhanced Centrelink's reputation around the world for its expertise in fraud control.
Brian O'Malley, Detection and Review, completed a two-year outposting to Canada's Human Resource Development Department to assist in developing their fraud control programs.
Geoff Main and Brett Robson, Detection and Review, were attached to the Australian Attorney-General's Department to develop recommendations for improving personal identification practices. A scoping paper entitled Who goes there? was produced about how to manage the identification of fraud risks across the Commonwealth. The Government is currently considering issues arising from the study.
Footsteps lead the wayThe key message from research and feedback from Aboriginal and Torres Strait Islander customers was that they wanted to see ‘something positive’. Footsteps, a national Centrelink magazine for Indigenous Peoples and communities, was the result. The name Footsteps was chosen as Indigenous staff felt that it provided a good link to where Indigenous people have been and where they want to go in the future.
This magazine shows that, through community partnerships and the work being done by Indigenous staff, there are often success stories demonstrating that Centrelink is an organization helping Aboriginal and Torres Strait Island people to move forward. There are many Indigenous communities involved in positive and productive activities, and Footsteps gives them the chance to promote their achievements.
Families onlineIn 2001–02 Centrelink continued to work with FaCS to provide further online services to families. After consulting customers, Centrelink introduced a service to allow families to update their income estimate online. Since 17 July 2001, when the service was introduced, more than 50 000 income estimate updates have been sent to the Families Assistance Office via the internet. Almost 20 per cent of these online updates were sent outside traditional business hours, between 8 pm and 11 pm.
Customer feedback on the new service was very positive, with 92 per cent of customers rating the service as either ‘easy’ or ‘very easy’ to use, and all customers surveyed saying that they would use the service again.
In an email, one customer said ‘ I would just like to express my delight in being able to update our family income estimate on the internet. It’s so easy. Thanks again.’ From 16 May 2002 customers were also able to use the online estimator to work out their possible family assistance payments or see how changes in their circumstances might affect their payments. Based on the results of this service, other internet-based services are planned in the near future.
