Audits examining service delivery

Audit Report No.2 2006–07 Export Certification, Australian Quarantine and Inspection Service. The audit assessed the systems, procedures, processes and resources used to: register premises and license exporters; monitor compliance with arrangements; and manage non-compliance. The report concluded that many aspects of the Australian Quarantine and Inspection Service’s (AQIS’s) administrative procedures support sound management of export certification. It has procedures in place to verify that establishments seeking registration to prepare products for export, and exporters seeking an export licence, meet legislative requirements. Its programmes of audits and inspections check compliance with the food safety and quarantine requirements of importing countries, and require establishments and exporters to take action to address identified non-compliance. Its services provide Australian exporters with the certification they require to access foreign markets. However, the report identified opportunities for AQIS to improve its administration of export certification by: improving guidance to industry on the requirements for registration and licensing; assuring audit quality and reliability; and better management reporting and performance information.

Audit Report No.12 2006–07 Management of Family Tax Benefit Overpayments. Through a series of debt prevention strategies and measures, the Family Assistance Office (FAO) has significantly reduced the incidence and extent of customer debt arising from the reconciliation of Family Tax Benefit (FTB) entitlements. In the first two years of the FTB Programme, (2000 and 2001) approximately 33 per cent of the FTB population incurred a reconciliation debt, whereas in the most recent two years, (2004 and 2005) the incidence of reconciliation debt has fallen to under 10 per cent of customers. FAO’s strategies have significantly improved the quality of service delivery for these FTB customers. In contrast with the range of activities targeting reconciliation debt, the report noted that less attention had been paid to reducing the incidence of debt arising when FTB customers fail to lodge a tax return in support of their FTB claim. The amount of non-lodger debt incurred each year since 2000 has remained relatively stable. However, due to the reduced incidence of reconciliation debt, non-lodger debt now accounts for a greater proportion of the outstanding FTB debt stock than reconciliation debt.

Audit Report No.26 2006–07 Administration of Complex Age Pension Assessments. This audit considered aspects of service delivery within the Age Pension programme, specifically in relation to customers possessing income generating assets or income from business holdings. These assessments are referred to by Centrelink as complex assessments and are required to be processed by specialist Centrelink Officers known as Complex Assessment Officers (CAOs).

During 2005–06 Centrelink’s 166 CAOs processed approximately 50 000 complex Age Pension assessments involving annual payments of approximately $400 million. Centrelink does have in place business processes that identify customers that require complex assessments when they first lodge a claim, and ensure that these are appropriately referred to CAOs, thus lowering the risk of an incorrect assessment. However, these processes are not always followed by Centrelink staff. Centrelink was unable to measure the activities and performance of CAOs, and did not have in place succession planning strategies to ensure that there are adequate numbers of CAOs in the future.

Audit Report No.30 2006–07 The Australian Taxation Office’s Management of its Relationship with Tax Practitioners. This audit examined the ATO’s implementation of the recommendations in Audit Report No.19, 2002–03, The Australian Taxation Office’s Management of its Relationship with Tax Practitioners, having regard to any changed circumstances, or new administrative issues, affecting implementation of those recommendations. The audit found that the relationship between the ATO and tax agents, which had been strained and tense at the time of the previous audit, had improved significantly. The ATO had fully implemented four, substantially implemented four, and had partially implemented one other of the report’s ten recommendations. Action on one recommendation hinged on the Government’s new legislative initiative. The report identified a number of areas where there was scope for improvement in the ATO’s management of its relationship with tax practitioners including: clarification of the role and functions of the Tax Agents Boards and the ATO; and improvements in the ATO’s approach to various tax agent compliance matters.

Audit Report No.32 2006–07 Administration of the Job Seeker Account. The audit assessed the effectiveness of the Department of Employment and Workplace Relations administration of the Job Seeker Account (JSKA) in ensuring its optimal usage in achieving job seeker outcomes. The report found that while DEWR’s overall approach to managing the JSKA was appropriate, DEWR could strengthen its administration by: improving the management of risks presented by particular Job Network member organisations and sites; placing greater reliance on controls operating within Job Network Member organisations that take effect prior to reimbursement of Job Seeker Account claims; and implementing and reporting on DEWR’s evaluation strategy.

Audit Report No.33 2006–07 Centrelink’s Customer Charter Follow-up Audit. This audit considered aspects of service delivery within Centrelink specifically, the Customer Charter, which is Centrelink’s primary means for advising customers of their rights (including access to feedback mechanisms), their obligations, and the type of services they can expect to receive. The Customer Charter also satisfies the Australian Government’s requirement, as set out in the Australian Government’s Client Service Charter Principles that all Commonwealth agencies, having an impact on the public, have a public charter. Centrelink has closely followed the guidance set out in the Client Service Charter Principles in conducting its latest Customer Charter review. Centrelink’s latest Customer Charter meets all the components of the Government’s Client Service Charter Principles, albeit that there are some areas which could be further improved. In the 2004–05 audit of Centrelink’s Customer Charter, the report concluded that while Centrelink had invested significantly in the development of its Charter, Centrelink’s Customer Charter only partially followed the mandatory elements of the Australian Government’s Client Service Charter Principles and either partially, or fully, met some of the recommended elements. In particular, there were no measurable service standards included in the Customer Charter. Since the last audit, Centrelink has closely followed the guidance set out in the Client Service Charter Principles in conducting its latest Customer Charter review, as well as addressing many of the findings and suggestions from the previous audit report. The revised Customer Charter includes both timeliness and quality service standards, a number of which include a specific timeframe for the provision of Centrelink’s services.

Audit Report No.40 2006–07 Centrelink Review and Appeals System Follow-up audit. This audit considered aspects of service delivery within Centrelink specifically, the Centrelink’s Review and Appeals system, which is a means for meeting customers legislative right to have a decision reviewed. The follow-up audit assessed the extent to which Centrelink had implemented the 10 recommendations from Audit Report No.35 2004–05, Centrelink’s Review and Appeals System. The report found that three of the recommendations have been fully implemented, two substantially, two partially and there was limited progress on those remaining. Centrelink advised that the introduction of Centrelink’s proposed new internal review model is subject to the availability of additional funding that would be required to operate this model. Accordingly, the impact that the proposed changes would have and whether they would result in the implementation of the outstanding recommendations from the previous audit report were not tested. We acknowledge that there is a need to contain the costs of the review process, however, it is equally important that the legislated rights of Centrelink’s customers do not become secondary to negotiations on purchaser provider agreements.

Audit Report No.41 2006–07 Administration of the Work for the Dole Programme. Work for the Dole (WfD) is a work experience programme that has been operating since 1997 and is now well established within the wider community. DEWR’s administration of the WfD programme was supported by sound business planning including risk assessment; appropriate contracts with Community Work Coordinators – the WfD service providers; and oral monitoring activities. In addition, DEWR’s processing of Community Work Coordinator invoices for contract payments was found to be consistent with the terms and conditions of the contracts. Systematic analysis of computer records using auditing software to interrogate payments data demonstrated a high level of adherence to both conditions of the contract and to the department’s business rules. WfD is a mature programme that been operating for approximately a decade. Overall, DEWR has adopted an appropriate approach to the ongoing administration of WfD and during the course of the audit implemented a number of refinements to its contractual arrangements with Community Work Coordinators. Consequently, the report did not make any recommendations in this audit. The report nevertheless mentions some area where enhancements might be considered.