Chapter 2


Chapter 2

Annual reports of Commonwealth Departments

2.1        For the financial year of 2013–14, the annual reports of the following departments were referred to the committee for examination and report:

  • Department of Health;
  • Department of Social Services; and
  • Department of Human Services.

Department of Health

Tabling of the report

2.2        The 2013–14 annual report was tabled on 28 October 2014.[1]

Secretary's review

2.3        The secretary, Dr Jane Halton, noted numerous significant achievements including:

  • Saving lives through bowel cancer screening and immunisation for cervical cancer;
  • Improving health and wellbeing through sport with new initiatives such as the Sporting Schools program;
  • Reducing the damage caused by smoking  through the use of plain packaging of tobacco products, more graphic warnings on packaging and public information campaigns;
  • Improved capacity to manage future health emergencies with lessons learned from the 2009 influenza pandemic being incorporated into the latest Australian Health Management Plan for Pandemic Influenza;
  • Improved global health outcomes through active participation in international efforts through the World Health Organisation (WHO) and the Organisation for Economic Co-operation and Development (OECD); and
  • Reduced regulatory burden and more efficient service delivery.

Despite these achievements, a number of challenges remain including the challenges of childhood obesity and preventable chronic disease. [2] The committee wishes Dr Halton well in her new role as Secretary of the Department of Finance.

Chief Medical Officer's Report

2.4        The Chief Medical Officer, Professor Chris Baggoley, addressed a number of issues in his report, including:

  • Endorsement of The National Framework for Communicable Disease Control. This will assist with improved preparedness and response to communicable disease threats such as avian influenza and Ebola;
  • Improved understanding of the transmission pathway for Middle East Respiratory Syndrome Coronavirus (MERS-CoV). This has resulted in a higher level of readiness for a potential incursion;
  • The Ebola virus outbreak in West Africa and Australian preparations to ensure the detection, investigation and management of any Ebola cases in Australia;
  • A strong co-ordinated effort by Commonwealth and state jurisdictions has led to a reduction in trachoma cases from 14 per cent in 2009 to 4 per cent in 2013;
  • Development of strategies to address the rising prevalence of blood-borne viruses and sexually transmitted infections in the Aboriginal and Torres Strait Islander population;
  • With an increase in new HIV cases, the department has led a renewed emphasis on HIV focusing on the factors that prevent the spread of the virus; and
  • Australian Medical Assistance Teams (AUSMATs) were deployed to provide assistance in the Philippines after the devastating impact of Typhoon Haiyan. The AUSMATs established a self-contained civilian field hospital and provided treatment to 2 734 patients over a two month period.[3]
Changes in administrative arrangements

2.5        The portfolio outcome structure was amended in 2013–14 with the aged care function being transferred to the new Department of Social Services (the department's name was also changed to the Department of Health). Responsibility for indigenous health programmes and functions were transferred to the Department of Prime Minister and Cabinet. Responsibility for sport and recreation were transferred from the former Department of Regional Australia, Local Government, Arts and Sport to the Department of Health.[4]

Ministerial responsibilities

2.6        As at 30 June 2014, the minister and assistant minister responsible for the portfolio and its agencies were:

  • The Hon Peter Dutton MP, Minister for Health and Minister for Sport; and
  • Senator the Hon Fiona Nash, Assistant Minister for Health.[5]
Performance reporting

2.7        The annual report addresses Key Performance Indicators (KPIs) as listed in the Portfolio Budget Statements 2013–14. The committee acknowledges that most of the department's deliverable targets were met or substantially met.[6]

2.8        The committee commends the department on its efforts targeting improved youth mental health outcomes. In particular, the funding of 85 headspace centres (youth-friendly mental health centres) with 66 of these currently operational. In addition, the KidsMatter program supporting mental health promotion, early intervention and prevention is now operational in over 2 000 early childhood centres and primary schools at the conclusion of the reporting period.[7]

2.9        The uptake of personally controlled e-health records (PCEHR) has exceeded expectations with over 1.7 million consumers registered. This has been facilitated through the promotion of the PCEHR through key stakeholder organisations including the Royal Australian College of General Practitioners, Medicare Locals and the Consumers Health Forum.[8] 

2.10      During 2013–14, 13 new and revised national accreditation standards were produced for pathology laboratories. This will ensure continual improvement in the quality of pathology treatments and better outcomes for patients.[9]

2.11      The committee notes the Pharmaceutical Benefits Advisory Committee Annual Report can be found as an appendix to the Department of Health's Annual Report.[10]

Financial performance

2.12      In 2013–14, the department recorded an 8 per cent decrease in both revenue and expenses primarily as a result of the transfer of functions out of the department.[11] The independent auditor's report found that the financial statements were 'prepared in accordance with the Finance Minister's Orders' and 'give a true and fair view' of the department's financial position.[12]

Department of Social Services

Tabling of the report

2.13             The 2013–14 annual report was tabled on 27 October 2014.[13]

Secretary's review

2.14      The secretary, Mr Finn Pratt, noted several significant achievements during 2013–14 including:

  • The creation of the Department of Department of Social Services as part of the Administrative Arrangements Order of 18 September 2013. This brings together functions from 6 separate departments;
  • The continued roll-out of the National Disability Insurance Scheme through the National Disability Insurance Agency;
  • The implementation of a number of aged care initiatives including the establishment of the Australian Aged Care Quality Agency  and an upgrade to the My Aged Care portal;
  • A significant review of the welfare system led by Mr Patrick McClure;
  • The facilitation of more efficient programs and projects delivery through a new blueprint for broadbanded discretionary grant programmes; and
  • Strong financial management of the $112.6 billion departmental budget with no significant or moderate audit findings.[14]
Changes in administrative arrangements

2.15      As part of machinery of government changes in 2013–14 the portfolio outcome structure was amended with the aged care function being transferred from the Department of Health. The Office for Women and responsibility for indigenous health programmes and functions was transferred to the Department of Prime Minister and Cabinet. The Workplace Gender Equality Agency is now part of the Department of Employment.[15]

Ministerial responsibilities

2.16      As at 30 June 2014, the ministers and parliamentary secretaries responsible for the portfolio and its agencies were:

  • The Hon Kevin Andrews MP, Minister for Social Services;
  • Senator the Hon Mitch Fifield, Assistant Minister for Social Services; and
  • Senator the Hon Concetta Fierravanti-Wells, Parliamentary Secretary to the Minister for Social Services.[16]
Performance reporting

2.17      The annual report highlights a number of significant performance achievements for each outcome including:

  • Distributing $1.6 billion of Paid Parental Leave Pay entitlements to 144 966 families;
  • Assisting 6 200 young people with housing support to better enable them to participate in study, employment and family life;
  • Supporting 173 000 volunteers with $16 million in grants;
  • Helping over 1 700 people severely affected by mental illness through the Personal Helpers and Mentors Employment service;
  • Placing 46 500 people with disability in jobs through Disability Employment Services; and
  • Helping 14 170 humanitarian visa holders settle in Australia through Humanitarian Settlement Services.[17]
Financial performance

2.18      The committee notes the independent auditor's report made two notations in relation to section 83 of the Constitution, whereby 'no money shall be drawn from the Treasury of the Commonwealth except under appropriation made by law'.[18] First, that a 'payment of $784 721 under section 64(3) of the Aboriginal Land Rights (Northern Territory) Act 1976 was in breach of section 83 of the Constitution'. Second, a further seven potential breaches were also identified by the Auditor-General.[19]

Department of Human Services

Tabling of the report

2.19      The 2013­­–14 annual report was tabled on 27 October 2014.[20]

Secretary's review

2.20      The secretary, Ms Kathryn Campbell, noted several achievements of the department including:

  • Delivering over $159 billion in payments on behalf of government to customers and providers;
  • Effective compliance and debt recovery measures with the department recovering $1.3 billion in Centrelink debt;
  • Delivering an operating surplus of $132.6 million in 2013–14. This compares to a deficit of $7.7 million in 2012–13; and
  • Ongoing transformation in how the department interfaces with its customers;
  • Successful delivery and uptake of the myGov website as a whole-of-government portal. More than 2.9 million active users were registered at the end of the reporting period. The expansion of other digital services such as mobile phone applications and capacity to process on-line claims.
  • The establishment of co-located sites where clients can interface with a number of Commonwealth government services—Centrelink, Medicare, the Australian Taxation Office, the Department of Veterans Affairs and the National Disability Insurance Agency—with more agencies and services likely to join in the future.[21]
Ministerial Responsibilities

2.21      As at 30 June 2014, the Minister responsible for the Human Services Portfolio was Senator the Hon Marise Payne.[22]

Performance reporting

2.22      The annual report addresses the KPIs as listed in the Portfolio Budget Statements 2012–13. The committee acknowledges that the Department of Human Services met 20 of its 24 KPIs.[23] It also notes the successful use of a summary table to indicate the department's performance. This table contains page references to direct the reader to chapters with more detailed information if required.

2.23      During 2013–14, there was a marked increase in the number of on-line transactions across the department—Centrelink (29 per cent), Medicare (37.9 per cent) and Child Support (13 per cent). This is an exciting initiative that provides more efficient and real-time service delivery for the customer. It also facilitates the deployment of departmental assets to service more complex customer needs.[24]

2.24      Most of the work that the department undertakes is in front-line service delivery. As such, many of the KPIs reflect the quality of those interactions between the department and its customers. Centrelink has achieved its target service level standards for telephone service and processing of claims; however, fell short of meeting its face-to-face waiting times.[25] The committee commends the department for continuing to strive to meet these challenges through their service delivery transformation, in particular, through the implementation of digital and online services.

2.25      The Transitional Farm Family Payment (TFFP) scheme continued with 438 claims being granted totalling $5.1 million. In March 2013, TFFP customers were transitioned to the new Interim Farm Household Allowance. A further 3 000 claims were lodged with 1 700 of these being granted by the end of the reporting period.[26]

2.26      CRS Australia (CRS) is a division of the Department of Human Services. CRS provides a range of services to many Commonwealth and state government agencies including injury prevention, early intervention and workplace rehabilitation services. CRS also manages Disability Employment Services—Disability Management Services on behalf of the Department of Social Services. In the reporting period, CRS provided disability employment services to 43 750 customers and placed nearly 20 000 participants into employment. Nearly 800 of these identified as Aboriginal and Torres Strait Islanders with a disability.[27]

Financial performance

2.27      In 2013–14, the department reported an operating surplus of $132.6 million after adjustment, unfunded depreciation and revaluation adjustments. This compares to a $7.3 million deficit in 2012–13.

2.28      The independent auditor's report made a notation in relation to section 83 of the Constitution, whereby 'no money shall be drawn from the Treasury of the Commonwealth except under appropriation made by law'.[28] The committee notes the Auditor-General found that 'payments totaling $27 886 were identified in 2013–14 in breach of section 83 of the Constitution'.[29]


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