Families, Housing, Community Services and Indigenous Affairs

Audit strategy overview

Within the portfolio, the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) is the Australian Government’s principal source of advice on social policy (including Indigenous policy) and is responsible for the administration of about one-quarter of the Government’s budgetary outlays. FaHCSIA works in partnership with other government and non-government organisations to manage a diverse range of programs and services designed to improve the lives of Australians by helping to build the capacity and wellbeing of individuals, families and communities.

In recent years, the ANAO’s audit program has primarily examined FaHCSIA’s administration and implementation of various programs such as Family Relationship Centres and Disability Employment Services, as well as its coordinating role in delivering major reforms, such as the Child Support Scheme Reforms.

The future audit program will balance a continuation of program and payment implementation and administration audits (such as Affordable Housing and Carer Allowance), with consideration of the over-arching systems and frameworks (such as the Online Financial Management System) which FaHCSIA relies on to deliver its outcomes. Within these areas, governance and project management will be key themes considered as well as the impact of Commonwealth/state/territory arrangements.

The audit program will also include audits with an Indigenous focus, reflecting both FaHCSIA’s key role in policy and program delivery in this area and the incorporation of the former Office of Evaluation and Audit function into the ANAO. These audits will cover various topics relating to areas such as Indigenous housing, employment, economic participation and service delivery; with broader consideration of performance information arrangements for measuring progress of the ‘Closing the Gap’ initiative agenda and the implementation of service delivery reforms agreed by COAG under the National Indigenous Reform Agreement (see cross-portfolio audits).

Audits in progress at 1 July 2010

Implementation of the Family Relationship Centres Initiative

Family Relationship Centres (FRCs) were introduced in 2006–07 as a centrepiece of the Family Law Reforms. To provide national coverage and equitable access for families, 65 FRCs have been established around Australia. FRCs are operated by third-party providers and provide information, advice, referral and family dispute resolution services. The Attorney-General’s Department (AGD) has responsibility for the policy and funding aspects of FRCs, while FaHCSIA is responsible for contract management and the day-to-day administration of the initiative.

The objective of the audit is to examine the effectiveness of the selection, implementation, operation and monitoring of FRCs by AGD and FaHCSIA.

The audit report is expected to be tabled in the Winter 2010 Parliamentary Sittings.

Fixing Houses for Better Health

Fixing Houses for Better Health is a targeted program that aims to make small-scale but key safety and functionality repairs to houses with a focus on repairs that contribute to what are known as the ‘Healthy Living Practices’. The program has been delivered in remote areas of Australia since 1999.

The objective of the audit is to examine the effectiveness of FaHCSIA’s administration of the program since 2005.

The audit report is expected to be tabled in the Spring 2010 Parliamentary Sittings.

Army Aboriginal Community Assistance Program

The Army Aboriginal Community Assistance Program (AACAP) aims to support the development, or upgrade of, environmental health infrastructure in remote Aboriginal and Torres Strait Islander communities, and to enhance primary health care services and facilities available to these communities. FaHCSIA manages the overall program and uses the Australian Army to deliver the services in communities.

The objective of this audit is to assess the effectiveness of FaHCSIA’s management of AACAP.

The audit report is expected to be tabled in the Spring 2010 Parliamentary Sittings.

Government Business Managers

At the commencement of the Northern Territory Emergency Response the Government announced it would seek to ‘[improve] governance by appointing managers of all government business in prescribed communities.’  Today, there are 60 Government Business Managers (GBMs) providing services in 73 prescribed communities.  After committing $75.9 million in 2007–08 and $30.9 million in 2008–09 the Government committed a further three-year’s funding totalling $84.1 million for the period 2009–10 to 2011–12.  The Government has also committed approximately $11.5 million each year since 2007–08 for GBMs to request funding to meet local priorities in prescribed communities.

The objectives of the audit are to assess the administrative effectiveness of FaHCSIA’s management of the GBM measure, and the extent to which the measure has improved the coordination and delivery of services in the Northern Territory.

The audit report is expected to be tabled in the Spring 2010 Parliamentary Sittings.

Home Ownership on Indigenous Land

The Home Ownership on Indigenous Land (HOIL) program aims to provide incentives and affordable loans to make home ownership a realistic choice for Indigenous people living on community titled land. The program is primarily administered by Indigenous Business Australia (IBA) with other elements being administered by FaHCSIA. The HOIL program received funding of $107.4 million over the four years from 2006–07.

The objective of this audit is to assess the administrative effectiveness of FaHCSIA’s and IBA’s management of the HOIL program.

The audit report is expected to be tabled in the Spring 2010 Parliamentary Sittings.

Potential audits

Affordable Housing Initiatives

In recent years, the Commonwealth has increased its assistance and involvement in the provision of affordable housing. The National Affordable Housing Agreement is an agreement by COAG that commenced on 1 January 2009, initiating a whole-of-government approach in tackling the problem of housing affordability. The National Affordable Housing Agreement provides $6.2 billion worth of housing assistance to low and middle income Australians in the first five years and is supported by National Partnership Agreements on social housing, homelessness and Indigenous Australians living in remote areas:

• National Partnership Agreement on Social Housing—which aims to increase the supply of social housing through the provision of approximately 1600 to 2100 additional dwellings by 2009–10, and increase opportunities to grow the not-for-profit housing sector. The Agreement also includes Indigenous-specific outcomes.
• National Partnership Agreement on Homelessness—which focuses on strategies to reduce homelessness and help people who are homeless or at risk of homelessness achieve sustainable housing and social inclusion.
• National Partnership Agreement on Remote Indigenous Housing—refer to ‘Management and Delivery of Indigenous Housing’ topic below.

In addition to the National Partnership Agreements, the Commonwealth also has in place various programs such as the:

• Social Housing Initiative under the Nation Building and Economic Stimulus Plan—which provides approximately $5.6 billion to construct up to 19 200 new public and community housing dwellings as well as address the repair and maintenance of existing dwellings;
• National Rental Affordability Scheme—a commitment of $1 billion over four years to help build 50 000 new affordable rental dwellings; and
• Housing Affordability Fund—an investment of up to $512 million over five years to lower the cost of building new homes.

An audit, or series of audits, would examine FaHCSIA’s administration of key government housing initiatives.

Delivery of Payment Entitlements

FaHCSIA makes a number of direct payments to individuals through Centrelink, including:

• the Age Pension, which is a non-contributory payment for people meeting certain age, residence and means test qualifications. It is designed to ensure that senior Australians have adequate means of support. In 2009–10, FaHCSIA estimates that it will provide
  $29.4 billion in Age Pension payments to eligible people; and
• Carer Allowance, which is an income supplement available to people who provide daily care and attention at home to a person with disability or a severe medical condition. In 2009–10, FaHCSIA estimates that it will provide $4.1 billion in Carer Allowance payments to eligible people; rising to $5 billion in 2010–11 and $6 billion in 2012–13.

An audit, or series of audits, would examine FaHCSIA’s and Centrelink’s administration of these payments.

Financial Management Program

The Financial Management Program is a series of services, such as financial counselling, that aim to help people across a range of income and financial literacy levels to manage their money, overcome financial adversity, participate in their communities and plan for the medium to long term.

In response to the increased need arising from the global financial crisis, the Commonwealth increased funding for the Financial Management Program from $50 million in 2008–09 to
$105 million in 2009–10. Further, additional funding of $80.4 million has been provided for emergency relief and financial counselling, and $50 million is available to support projects such as no-interest loans that provide safe and affordable credit.

An audit would examine FaHCSIA’s management of the Financial Management Program.

Management and Delivery of Indigenous Housing

The Australian Government has committed almost $5.5 billion to remote Indigenous communities over 10 years to address overcrowding, homelessness, poor housing and housing shortages. FaHCSIA has responsibility to deliver programs to achieve this, including the:

• National Partnership Agreement on Remote Indigenous Housing, which provides for up to 4200 new houses in remote Indigenous communities; upgrades to around 4800 existing houses through a program of major repairs and/or replacement; and the audit and transfer of municipal services; and
• Strategic Indigenous Housing and Infrastructure Program, which is a joint program between the Australian and the Northern Territory Governments, to provide 73 communities across the Northern Territory with improved housing and related infrastructure. The Strategic Indigenous Housing and Infrastructure Program involves the construction of around 750 new houses, 230 rebuilds of existing houses and 2500 upgrades plus essential infrastructure including power, water and sewage.

An audit, or series of audits, would examine FaHCSIA’s administration of key government Indigenous housing initiatives.

National Partnership Agreement on Indigenous Economic Participation

The National Partnership Agreement on Indigenous Economic Participation was established to contribute to the COAG target of halving the gap in Indigenous employment outcomes. The Agreement involves complementary investment and effort by the Commonwealth and the states/territories to significantly improve opportunities for Indigenous people to engage in private and public sector jobs. The Commonwealth has committed $172.7 million (of the total
$228.8 million) over five years from 2008–09 and, under the Agreement, is directly responsible for:

• the creation and delivery of up to 1280 Australian Government service delivery jobs which have previously relied on Community Development Employment Project program subsidies;
• requiring successful contractors of major projects to implement Indigenous training, employment and supplier strategies;
• establishing an advisory service to support agencies (including state and territory governments) to develop, implement and manage Indigenous employment procurement requirements in their procurement arrangements; and
• ·  implementing Indigenous employment strategies for the Australian Public Service to meet the target of at least 2.6 per cent of public sector employment for Indigenous people across all classifications by 2015.

An audit, or series of audits, would examine FaHCSIA’s, the Department of Education, Employment and Workplace Relations’ and other relevant Australian Government agencies’ management and delivery of the Australian Government’s responsibilities under the National Partnership Agreement.

Income Management and the BasicsCard

The Welfare Payments Reform program announced in July 2007 as part of the Northern Territory Emergency Response included income management as one of five measures in the program. Income management directs between 50 to 70 per cent of certain income support and family payments and 100 per cent of all lump sum payments to essential expenses such as food, clothing, housing and utilities, which can be purchased using a BasicsCard. The BasicsCard is a PIN-protected card which allows customers to access their income-managed money through EFTPOS facilities at approved stores and businesses.

In 2008–09 approximately 15 000 Centrelink customers in the Northern Territory were on income management. In the 2009–10 Commonwealth Budget, $105.9 million was allocated to continue compulsory income management in the Northern Territory and to provide financial management services to income support recipients. 

An audit would examine aspects of the implementation and ongoing operation of income management and the BasicsCard. This could include the Department of Human Services’ management of the replacement BasicsCard tender process and Centrelink’s day-to-day administration of income management.

National Partnership Agreement on Indigenous Remote Service Delivery Strategy

The National Partnership Agreement on Indigenous Remote Service Delivery Strategy has been established to implement a new remote service delivery model that clearly identifies service standards, roles and responsibilities and service delivery parameters to ensure that Indigenous Australians living in selected remote communities receive and actively participate in services to close the gap in Indigenous disadvantage.

The Australian Government has committed $187.7 million (of the total $291.2 million) over
six years from 2008–09 and, under the Agreement, is responsible for:

• establishing and staffing a new integrated service planning and delivery mechanism;
• facilitating problem-solving and ensuring the smooth implementation of service delivery reforms;
• undertaking baseline mapping and monitoring and evaluation;
• providing a research capacity to advise on cultural accessibility; and
• introducing a national framework for the effective supply and use of Indigenous language interpreters and translators.

An audit would examine FaHCSIA’s management of the Australian Government’s responsibilities under the National Partnership Agreement. A key element of the strategy is the development of local implementation plans. This process is currently underway and will be taken into consideration when determining audit timing.

Grants Management

FaHCSIA administered grants totalling around $1.8 billion in 2009–10, and will provide a similar amount in 2010–11 to a wide-range of non-government and community-based organisations, as well as to state government agencies and local government bodies, to support the delivery of their services and create opportunities for economic and social participation.

An audit will examine key elements of the design and operation of FaHCSIA’s processes for administering its grants programs, including assessing whether FaHCSIA is complying with the requirements and principles in the Commonwealth Grants Guidelines.

 

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