DHS Annual Report 2015-16 - Centrelink

1 Annual Report2015 OF HUMAN SERVICESIIPRELIMINARY INFORMATIONThis Annual Report was prepared in accordance with the Resource Management Guide No. 135 Annual reports for non-corporate Commonwealth entities issued by the Department of Finance in July 2016. The main purpose of the Report is to describe the department s activities during 2015 16, reporting on the performance and financial information presented in the 2015 16 Department of Human Services Portfolio Budget Statements, and the 2015 16 Department of Human Services Portfolio Additional Estimates Statements. It aims to provide readers with a useful and informative picture of the department s performance during 2015 : 1832-8792 (Print)ISSN: 1838-2452 (Online)COPYRIGHT STATEMENT Commonwealth of Australia 2016 This work is copyright.

2 Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and enquiries concerning reproduction and rights should be addressed to the Annual Report Coordinator, Governance Branch, Whole of Government Coordination Division, Department of Human Services, PO Box 7788, Canberra BC, ACT, 2610 INFORMATION If you have any feedback or queries regarding this Annual Report , or you would like a copy of the Report , please contact: Annual Report CoordinatorGovernance BranchWhole of Government Coordination Division Department of Human ServicesPO Box 7788 Canberra BC, ACT, 2610 Email: Annual Report is available online at speak to us in languages other than English please call 131 you are deaf or have a hearing or speech impairment please call 1800 810 586 (a TTY phone is required to use this service).

3 More information about the Department of Human Services is available at or connect with us on social media at: Report 2015 16 IIICONTENTSSECRETARY S REVIEW ..VIIILETTER OF TRANSMITTAL ..XIIPART 1 Departmental overview OUR DEPARTMENT 2 PURPOSE ..2 ROLE AND FUNCTIONS ..2 OUTCOME AND PROGRAMME STRUCTURE ..3 ORGANISATIONAL STRUCTURE .. PORTFOLIO STRUCTURE 8 MINISTER .. OUR PARTNERS AND PORTFOLIO ENTITIES 9 AUSTRALIAN HEARING ..9 PARTNERSHIPS WITH AUSTRALIAN GOVERNMENT AGENCIES ..9 PARTNERSHIPS WITH STATE AND TERRITORY GOVERNMENTS AND OTHER ORGANISATIONS ..10 INTERNATIONAL PARTNERSHIPS ..10 PART Report on performance Annual PERFORMANCE STATEMENT 2015 16 PROGRAMME SERVICES TO THE COMMUNITY SOCIAL SECURITY AND WELFARE 26 FAMILIES.

4 27 PEOPLE WITH DISABILITY AND CARERS ..29 OLDER AUSTRALIANS ..33 JOBSEEKERS AND STUDENTS .. PROGRAMME SERVICES TO THE COMMUNITY HEALTH 42 MEDICARE ..42 HEALTH PAYMENTS AND SERVICES ..48 PHARMACEUTICAL BENEFITS SCHEME ..61 DIGITAL eHEALTH .. PROGRAMME CHILD SUPPORT 67 CHILD SUPPORT ..67 DEPARTMENT OF HUMAN SERVICES FOR PEOPLE NEEDING OTHER SUPPORT 70 SUPERANNUATION PROGRAMMES ..70 VULNERABLE PEOPLE ..71 SOCIAL WORK SERVICES ..73 RURAL SERVICES ..77 INDIGENOUS PEOPLE ..77 MONEY MANAGEMENT ..80 ANCILLARY SERVICES AND SUPPORT ..85 MULTICULTURAL SERVICES ..87 EMERGENCY RESPONSES ..91 PART 3 Management and accountability CORPORATE GOVERNANCE 102 GOVERNANCE COMMITTEE FRAMEWORK ..103 DEREGULATION AND RED TAPE REDUCTION.

5 104 FUNCTIONAL AND EFFICIENCY REVIEW ..105 PROGRAMME AND PROJECT MANAGEMENT .. ACCOUNTABILITY AND SCRUTINY 106 EXTERNAL ..106 INTERNAL ..108 INFORMATION MANAGEMENT ..110 SAFEGUARDING PRIVACY ..111 COMPENSATING CUSTOMERS ..112 RISK MANAGEMENT .. COMPLIANCE AND BUSINESS INTEGRITY 114 SOCIAL SECURITY AND WELFARE PROGRAMME COMPLIANCE ..114 REVIEWS OF SOCIAL WELFARE PAYMENT DECISIONS ..116 DEBT MANAGEMENT ..118 SERIOUS NON-COMPLIANCE ..119 TASKFORCE INTEGRITY ..120 PUBLIC TIP-OFFS ..120 FRAUD INVESTIGATIONS ..121 CHILD SUPPORT CUSTOMER COMPLIANCE ..124 REVIEWS OF CHILD SUPPORT DECISIONS .. MANAGEMENT OF HUMAN RESOURCES 128 OUR PEOPLE ..128 Annual Report 2015 16 VRECRUITMENT ..134 ACCESSIBLE AND INCLUSIVE WORKPLACES.

6 135 STAFF DIVERSITY ..135 LEARNING AND DEVELOPMENT ..140 WORK HEALTH AND SAFETY AND INJURY MANAGEMENT ..142 RECOGNISING EXCELLENCE ..145 WORKPLACE GIVING ..148 CHARITY FUNDRAISING .. ENGAGEMENT AND FEEDBACK 150 CUSTOMER SATISFACTION ..150 CUSTOMER FEEDBACK ..153 COMMUNITY ENGAGEMENT GROUPS AND ADVISORY FORUMS ..156 RESEARCH .. CORPORATE SERVICES 158 PROPERTY ..158 ASSETS ..158 SECURITY ..159 SHARED SERVICES .. PURCHASING 162 PROCUREMENT INITIATIVES TO SUPPORT SMALL BUSINESS .. CONSULTANCY CONTRACTS ANAO ACCESS CLAUSE EXEMPT CONTRACTS GRANTS ENVIRONMENTAL MANAGEMENT 164 PART 4 Transforming services and technology SERVICE DELIVERY TRANSFORMATION 166 DIGITAL AND ONLINE SERVICES ..167 FACE-TO-FACE SERVICES.

7 175 SMART CENTRES ..177 DEPARTMENT OF HUMAN SERVICE DELIVERY IMPROVEMENTS 181 SERVICE DELIVERY OPERATING MODEL ..181 DHS CHANNEL STRATEGY .. INFORMATION AND COMMUNICATIONS TECHNOLOGY 182 SERVICE STABILITY ..182 TELSTRA CONTRACT ..182 DATA CENTRE CONSOLIDATION ..183 ICT SUPPORT FOR OTHER GOVERNMENT AGENCIES ..183 PART 5 Financial overview and financial statements FINANCIAL OVERVIEW 186 STATEMENT OF FINANCIAL PERFORMANCE ..186 STATEMENT OF FINANCIAL POSITION .. FINANCIAL STATEMENTS 190 PART 6 Appendices 229 APPENDIX A HUMAN SERVICES (MEDICARE) ACT 1973 Report 230 APPENDIX B CARER RECOGNITION ACT 2010 Report AND DISABILITY REPORTING 231 OBLIGATIONS OF ALL PUBLIC SERVICE AGENCIES ..231 PEOPLE WITH DISABILITY.

8 232 MORE INFORMATION ..233 APPENDIX C EXTERNAL SCRUTINY 234 AUSTRALIAN NATIONAL AUDIT OFFICE ..234 COMMONWEALTH OMBUDSMAN ..236 APPENDIX D FREEDOM OF INFORMATION 237 APPENDIX E DATA MATCHING 238 DATA-MATCHING PROGRAM (ASSISTANCE AND TAX) ACT 1990 ..238 DATA-MATCHING PROGRAM OBJECTIVES ..238 PROGRAMME CYCLES ..239 PRIVACY SAFEGUARDS ..239 PROGRAMME MONITORING ..240 STATISTICS ..240 COST BENEFITS ..242 Annual Report 2015 16 VIICHRONOLOGY ..243 APPENDIX F STAFFING STATISTICS AND REMUNERATION 246 STAFF PROFILE ..246 NON-SENIOR EXECUTIVE SERVICE REMUNERATION ..250 PERFORMANCE PAY ..251 NON-SALARY BENEFITS ..251 SENIOR EXECUTIVE SERVICE REMUNERATION ..252 APPENDIX G WORK HEALTH AND SAFETY 253 WORK HEALTH AND SAFETY ACT 2011 REPORTING.

9 253 APPENDIX H ADVERTISING AND MARKET RESEARCH 254 COMMUNICATION AND ADVERTISING CAMPAIGNS ..254 ADVERTISING COSTS MEDIA ADVERTISING ..254 MARKET RESEARCH PAYMENTS ..254 APPENDIX I ENVIRONMENTAL PERFORMANCE 256 HOW ADMINISTERED PROGRAMMES ACCORD WITH THE PRINCIPLES OF ESD SECTION 516A(6)(a) ..256 HOW THE APPROPRIATION OUTCOME CONTRIBUTED TO THE PRINCIPLES OF ESD SECTION 516A(6)(b) ..256 EFFECT OF ACTIVITIES ON THE ENVIRONMENT SECTION 516A(6)(c) ..256 MEASURES TAKEN TO MINIMISE THE EFFECT OF ACTIVITIES ON THE ENVIRONMENT SECTION 516(6)(d) ..258 MECHANISMS TO REVIEW AND INCREASE THE EFFECTIVENESS OF THOSE MEASURES SECTION 516(6)(e) ..260 APPENDIX J RESOURCE STATEMENTS AND EXPENSES FOR OUTCOME 1 261 APPENDIX K CORRECTION OF ERRORS IN THE DEPARTMENT S 2014 15 Report 265 APPENDIX L COMPLIANCE INDEX 266 GLOSSARY 275 ABBREVIATIONS AND ACRONYMS 279 INDEX 282 DEPARTMENT OF HUMAN SERVICESVIIISECRETARY S REVIEWThe Department of Human Services (the department) delivers a range of health and welfare payments and services to millions of people across Australia.

10 We help people through our digital service offerings, by phone and in service centres. We come into contact with almost every Australian at some time in their lives. This is reflected in our mission connecting Australians to the services they need . Service Delivery Business as usualThis year we have again been focussed on delivering services to customers, transforming how we operate and developing our staff capability. In 2015 16 we successfully delivered $ billion in payments to customers and providers. We finished the year with a small operating deficit of $ million compared with a surplus of $ million in 2014 15. We also met 31 of our 36 performance department processed more than million social security and welfare claims during the year and worked with separated parents to transfer monies to support approximately million children.