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International Social Security Association

International Conference onMeasuring performance in social security institutions:Outcome-oriented management

Taormina, Italy, 29-30 March 2001

Framework for assessing performance:Outcome-oriented management

Greg MooresSenior AdviserPerformance Reporting SectionDepartment of Family and Community ServicesAustralia

ISSA/OM/CONF/2001

Greg Moores

Framework for assessing performance:Outcome-oriented management

Greg MooresSenior AdviserPerformance Reporting SectionDepartment of Family and Community ServicesAustralia

This paper outlines the approach adopted by the Department of Family and Community Services(FaCS) to performance reporting under the outcomes and outputs framework that wasimplemented by the Australian government in 1999 as part of the accrual budgeting reforms.FaCS' performance reporting framework ensures that government reporting requirements are metin a way which facilitates a clear articulation of the business of FaCS, its achievements andintegrates with internal management and strategic direction. In light of FaCS' experience inimplementing accrual budgeting reforms, the paper emphasizes the importance of an integratedapproach to assessing performance in social security institutions which provides transparent andpublic linkage between outcomes, outputs and resourcing.

The Department of Family and Community Services

Since 1996, the Australian Federal Government has introduced a range of policy reforms tostrengthen the social support system. A major emphasis of those reforms is to better integratesocial and economic policies. A strong economy provides the best basis for an active andsustainable system of social support. Similarly, an active, equitable and sustainable system ofsocial support strengthens individuals, families and communities and fosters the conditionsthrough which economic growth can best occur.

The Government has pursued its social policy objectives with this relationship clearly in mind.This is also consistent with the Government's approach in other policy areas, includingemployment and labour market policies, education and regional development. Well-integratedpolicy - across and within portfolios - aims to improve people's capacities to respond tochanging circumstances.

In October 1998 the formation of FaCS signalled the Government's new approach to socialpolicy reform. It brought a range of social policy and program responsibilities into a singlepolicy-focussed agency. It built on earlier reform which saw Commonwealth delivery functionscome together under the one organization, known as Centrelink.

Since it began, FaCS has taken a lead role in designing social policy to meet modernchallenges, engage the community in policy and program design and better integrate with other

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policy areas (for example with taxation, the economy, education and industrial relations). Thebroad direction of the Department is demonstrated by our role in:

C tax reform;C further development of mutual obligation;C welfare reform and other consultative processes; andC the Stronger Families and Communities Strategy.

FaCS' business structure

FaCS reports formally to stakeholders under the following groups structure. These groups eitherdeliver or purchase the outputs and manage the programs, transfer payments and otheradministered items that are relevant to each group's business.

Outcome 1 -Stronger families

Outcome 2 - Stronger communities

Outcome 3 - Economicand social participation

1.1 Family assistance 2.1 Housing support 3.1 Labour marketassistance

1.2 Youth and student support 2.2 Community support 3.2 Support for peoplewith a disability

1.3 Child support 3.3 Support for carers

1.4 Child care support 3.4 Support for the aged

Each group produces four key “departmental” outputs which are externally reported against.These outputs are:

C policy advice;C programme (and grants) management;C research and evaluation; and C service delivery.

Note that the service delivery outputs are essentially separated from the three FaCS “core”outputs, typically through “purchaser-provider” type arrangements.

Other business clusters produce “enabling outputs” which are critical to the success of theFaCS business. These clusters deal with:

• business partnerships;• strategic framework and coordination (including research); and• corporate management and executive support.

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1. The main objectives of FaCS

Vision

FaCS was formed in 1998 with a vision to move “towards a fair and cohesive Australiansociety”. This vision is maintained at a time when Australian society is changing due to theimpact of globalization on the economy and consequent changes in the way Australians workand live. FaCS is adaptive to the nature of society which reflects the changing populationprofile, increasingly diverse relationships, family choices and arrangements, and changingpublic priorities.

Purpose

FaCS' purpose, “delivering social policy outcomes for Australian families, communities andindividuals”, is to develop and deliver social policies and programs in a coordinated integratedway within the portfolio, across government and in partnership with the community and businesssector for Australian families, communities and individuals.

Mission

FaCS aims to increase the focus on supporting families and communities as key elements ofa healthy and functional Australian society, with support focusing on developing capacity andindependence wherever possible. FaCS actively engages in addressing the underlyingproblems that cause social disadvantage, as well as informing and influencing public debateand expectations around these issues.

Outcomes

FaCS maintains a focus on achieving three key social policy outcomes:

C Stronger families:Families, young people and students, have access to financial assistance and familysupport.

C Stronger communities:The community has access to affordable housing, community support and services andassistance in emergencies.

C Economic and social participation:Participation in the labour force and community life is facilitated by income supportmeasures and services that encourage independence and contribution to thecommunity.

Strategies

Complementing these social policy outcomes are three key strategies: C prevention through capacity building and early intervention;C promotion of independence, choice and self reliance;C maintenance of a strong and sustainable social safety net.

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Objectives

FaCS' key objectives are:C serving our ministers;C delivering our outcomes;C building strong and effective partnerships;C influencing and communicating effectively; C enabling our people;C delivering value for money.

The critical success of our business is assessed against these business objectives.

Principal functions or services performed

FaCS responds to the Government's active social policy stance, and consistent with the socialcoalition approach, engages the community and stakeholders, and tailors policies and programsthat work.

C FaCS delivers policy advice to the Ministers and the Government, supports the Ministersin their communications with the community and Parliament on social policy, andprovides legal advice on matters relating to FaCS' policies and programs.

C FaCS conducts research, evaluation and data analysis to support the development ofpolicy advice and program design, and advise on its effectiveness.

C FaCS designs and manages programs in consultation with its business partners andpurchases program delivery services through business partnerships.

Departmental agencies

FaCS has three departmental “agencies” each of which has a vision that complementsFaCS' vision.

C Child Support AgencyC “All Australian parents meet their child support responsibilities”.C CRS AustraliaC “A future where all Australians achieve their potential for economic and community

participation”. C Social Security Appeals TribunalC The role is to “make decisions on pensions, benefits and allowances” as “an

independent body, which reviews individual cases in a fair and just manner”.

The departmental agencies, the Child Support Agency, CRS Australia and the Social SecurityAppeals Tribunal are formally part of FaCS, but maintain separate identities. Their respectiveresponsibilities are described below.

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Child Support Agency

The Child Support Agency promotes parental responsibility for the costs of children, throughproviding services to assist in the payment of child support. The Child Support Registrar of theChild Support Agency (currently the Commissioner of Taxation but in the process of beinghanded on to the Secretary of FaCS) is required by section 14 of the Child Support(Registration and Collection) Act 1988 and by section 148 of the Child Support (Assessment)Act 1989 to prepare an annual report on the working of these Acts in relation to this agency.Although the Commissioner of Taxation is still the Child Support Registrar, the reports on theChild Support Agency are included in FaCS' annual report, to reflect the current AdministrativeArrangements Order.

CRS Australia

CRS Australia (formerly the Commonwealth Rehabilitation Service) is established under theDisability Services Act 1986. CRS Australia provides Commonwealth-funded rehabilitationprograms to eligible people with injuries, disabilities or health problems to enable them to gainand retain employment. Rehabilitation is the process of restoring function and independenceto people with a disability, injury or health problem and through the coordinated use of medical,physical, psychological, social, educational and vocational measures. This managed processaims to maintain people with a disability in, or return them to, suitable employment. The reporton CRS Australia is included in FaCS' annual report.

Social Security Appeals Tribunal

The Social Security Appeals Tribunal considers appeals lodged by people aboutCentrelink/FaCS decisions made under a number of Acts, especially the social security law.Under section 141 of the Social Security (Administration) Act 1999, the tribunal must, in carryingout its functions under this Act, aim to provide a mechanism of review that is “fair, just,economical, informal and quick”. Under clause 25 of Schedule 3 of the Social Security(Administration) Act 1999, the Executive Director of the Social Security Appeals Tribunalprovides an annual report to the Minister for Family and Community Services, on the SocialSecurity Appeals Tribunal's operations.

Portfolio agencies

There are two agencies in the Family and Community Services portfolio that report directly tothe relevant Ministers. Although FaCS has close business partnerships with these agenciesthey are not formally part of the department.

Centrelink

Centrelink is the principal service delivery organization within the portfolio, responsible fordelivering policy by providing information, products and services to the Australian community.Under section 40 of the Commonwealth Services Delivery Agency Act 1997, the Chairman ofthe Board of Centrelink must provide an annual report to the Minister for Family and CommunityServices on the operations of Centrelink.

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Australian Institute of Family Studies

The Australian Institute of Family Studies is an independent statutory authority which wasestablished under section 114B of the Family Law Act 1975. The Commonwealth Governmentestablished the institute in February 1980 to promote the identification and understanding offactors affecting marital and family stability in Australia by:

C researching and evaluating the social, legal and economic well being of all Australianfamilies;

C informing government and the policy-making process about institute findings;C communicating the results of institute and other family research to organizations

concerned with family well-being, and to the wider general community; andC promoting improved support for families, including measures which prevent family

disruption and enhance marital and family stability.

In accordance with subsection 9(1) of Part 3 of the Commonwealth Authorities and CompaniesAct 1997, the Australian Institute of Family Studies must prepare an annual report toParliament.

Legislative framework

Under section 7 of the Social Security (Administration) Act 1999, the Secretary of FaCSadministers the social security law subject to any direction of the Minister.

As at 30 June 2000, FaCS' programs were administered under the provisions of the followingActs and parts of Acts for which the Minister for Family and Community Services is responsibleunder the Administrative Arrangements Order:

C Child Care Act 1972 C Childcare Rebate Act 1993 C Child Support (Assessment) Act 1989 C Child Support (Registration and Collection) Act 1988 C Commonwealth and State Housing Agreements Acts C Commonwealth Services Delivery Agency Act 1997 C Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997 C Data-matching Program (Assistance and Tax) Act 1990 C Defence (Re-establishment) Act 1965, Parts V and VA, and section 59 in respect of

powers and functions under Pts V and VA C Disability Services Act 1986 C Family Law Act 1975, Pt XIVA C First Home Owners Act 1983 C Home Deposit Assistance Act 1982 C Home Savings Grants Acts C Homeless Persons Assistance Act 1974 C Housing Agreements Acts C Housing Assistance Acts C Marriage Act 1961, Part IA C Social Security Act 1991 C Social Security (Rewrite) Transition Act 1991

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C Social Security (Administration) Act 1999 C Social Security (International Agreements) Act 1999 C Social Welfare Commission (Repeal) Act 1976 C States Grants (Housing) Act 1971 C Supported Accommodation Assistance Acts.

The following Acts took effect on 1 July 2000:

C A New Tax System (Family Assistance) Act 1999 C A New Tax System (Family Assistance) (Administration) Act 1999 C A New Tax System (Family Assistance and Related Measures) Act 2000,

Schedule 5 and 6 C A New Tax System (Bonuses for Older Australians) Act 1999, Parts 1 and 5 in so far as

they relate to Family and Community Services customers and Part 2.0.

Strategic management framework

The FaCS vision or strategic direction is made possible through a hierarchy of businessrelationships between strategic, managerial and operational planning.

The FaCS Strategic Plan provides the context for whole of Department activities bycommunicating the key social policy outcomes, strategies, objectives, values, expectedbehaviours and performance. The outcomes in the Strategic Plan mirror the outcomes in theaccrual budgeting and performance reporting framework. The strategic plan is posted on theFaCS Web Site at www.facs.gov.au/strategic/index.htm.

Strategic management planning in FaCS provides the link between the Strategic Plan andBusiness Plans. Planning at the strategic management level integrates business and resourceplanning activities. This enables FaCS to make business and resource planning decisions withinthe context of the government's priorities and the need to maintain our capacity to pursue someinvestments that will improve service delivery and productivity and deliver outcomes into thefuture.

Business Plans are developed annually at the business operational level. The day to dayoperations or business delivery processes which support the business are planned, executed,evaluated and communicated at this level.

2. Operational objectives and targets

FaCS applies two formal methods for reporting performance against planned strategicoutcomes. The first is the application of the Performance Reporting Framework to communicatethe degree of achievement of planned outcomes in the Strategic Plan to stakeholders. This isthe performance reporting framework (by outcomes and outputs) used for the annual report tothe Minister for Family and Community Services and Parliament.

The second method is the application of the Performance Scorecard that provides high levelperformance information to the Executive Board on a monthly basis against the key FaCSobjectives in the Strategic Plan. The Scorecard focuses attention on performance improvement,

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organizational health, effectiveness of FaCS business partnerships and corporate strategiesand progress in achieving outcomes agreed with government.

These methods set the framework for the setting of operation objectives and targets in acoordinated way across policy outcomes (externally reported) and business outcomes (internalmanagement). The publishing of “targets” is an aspect of the framework that FaCS has yet toformally implement although the next Portfolio Budget Statement (May 2001) is anticipated tospecify certain targets.

There needs to be some caution exercised in the use of performance targets in the social policyfield. For example, there is no “target” for the number of senior citizens or people with adisability in the community. The publication of these client numbers against budget figureswould simply be estimates of activity levels in a given year.

Government reporting requirements

FaCS receives budget appropriations to contribute to the Government's planned outcomes.FaCS delivers outputs to the community or purchases outputs from service providers such asCentrelink, the Family Assistance Office, the Child Support Agency, CRS Australia andnumerous community-based providers. The outputs are specified around strategies to achievethe planned outcomes (or objectives). Program level objectives in FaCS are consistent with thehigh level planned outcomes. This is an “outcomes hierarchy” concept.

The following diagram represents the whole-of-government framework for performancereporting under “accrual budgeting”.

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Government requirements dictate that FaCS publicly reports in terms of the effectiveness of itscontribution to the Government's outcomes, and in terms of the quality, quantity and price ofthe outputs it delivers to the community. This reporting complements financial reporting whichis consistent with international and Australian Accounting Standards and commercial practice,ie “accrual accounting”.

3. Establishment of systems of outcome assessment andperformance evaluation

General characteristics

Performance reporting framework

FaCS employs a three tier external reporting structure comprising:

C environmental indicators for the three outcomes: stronger families; strongercommunities; and economic and social participation;

C common effectiveness reporting categories for administered items and outputs; andC quality, quantity and price indicators for outputs.

This structure meets the wider outcomes and outputs framework reporting requirements whileproviding for clearer performance reporting in terms of the business of FaCS. Effectiveness and

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output reporting is undertaken at the group level and at the individual payment level whererelevant.

Performance information is reported in the annual report to Parliament against the performanceindicators that are published in the portfolio budget statements. The FaCS 2000 PortfolioBudget Statement can be found at http://www.facs.gov.au/internet/facsinternet.nsf/aboutfacs/budget/budget2000-budget_2000.htm.

The FaCS reporting structure was developed following a review of the performance indicatorsin the 1999 Portfolio Budget Statement. The review found that, while there was a substantialbase of performance information, improvements were required to resolve four main issues,namely:

C a lack of a consistent approach to reporting across business groups;C a lack of indicators which demonstrated success against the specified outcomes, i.e.,

performance information tended to be at the level of individual payments and services;C poor indicators for departmental outputs and notably very little information on program

management activity; andC the absence of performance targets or published estimates of activity levels.

These problems made it difficult for anyone without a detailed knowledge of FaCS to make aninformed assessment of the overall performance of FaCS. While there was considerableinformation about individual payments and services, it was not clear how the paymentscontributed to the achievement of the planned outcomes set by the Government, nor was itpossible to discern the strategies underlying the payments and services.

The FaCS reporting structure addresses these issues and is designed, inter alia, to:

C meet the set performance reporting requirements;C facilitate clearer reporting of FaCS' achievements tightly linked to both the PBS and the

annual report;C facilitate understanding of the nature of FaCS' business; andC address the needs of stakeholders to provide relevant payment, program or intervention

information within the outcomes and outputs structure.

Policy environment

Environmental indicators are provided for each of the three outcomes. These indicators providehigh level information about social conditions and trends relevant to family and communityfunctioning and economic and social participation. They may be used to assess theappropriateness of FaCS' strategies for achieving the outcomes, and also to assess thelong-term effectiveness of interventions. They are not indicators of the shorter term results thatare achieved through the provision of administered items and outputs; instead they outline thecontext for those results. The set of environmental indicators is based on the work done by theOrganisation for Economic Co-operation and Development (OECD) countries on socialindicators with some selection and additions to suit FaCS' specific policy environment.

http://www.facs.gov.au/internet/facsinternet.nsf/aboutfacs/budget/budget2000-budget_2000

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Effectiveness

Effectiveness is the extent to which planned outcomes are achieved. The effectiveness ofindividual administered and departmental items under each FaCS group is reported against aselection of the most relevant of the following indicators.

Capacity For communities: improved community skills, knowledge,leadership, partnerships and networks

For families: improved family skills, knowledge and quality ofrelationships

For individuals: improvement in skills and knowledge necessary forself-support and improved networks

Early intervention Early intervention in financial and personal crises that limits socialand economic marginalisation

Independence Greater independence, choice and self-reliance for families,communities and individuals

Adequacy Adequate levels of income and assistance provided for those whocannot support themselves

Affordability Improved affordability of support services such as housing andchild care

Targeting Assistance is targeted to those most in need

Take up/Coverage Take up of payments or services among the eligible population orcoverage of those in need of assistance

The effectiveness indicators reflect the key strategies that are set out in the FaCS StrategicPlan. This approach is intended to assist annual report users to understand how services andindividual payments contribute to the achievement of FaCS's outcomes through the use ofFaCS' strategies.

The results of evaluations and policy reviews typically feed into information reported under theeffectiveness indicators.

Quality, quantity and price of outputs

Quality

Quality indicators are provided for departmental outputs and third party outputs (outputsdelivered by a third party using administered funds). These indicators are reported under thefollowing headings:

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Assurance Service delivery standardsQuality accreditation of service providers

Customer rightsand obligations

Protection of customers' rightsCustomer obligations

Access and choice Location of services, access to information and access for specialneeds and target groupsCustomer choice

Customersatisfaction

Customer satisfaction with the provision of payments andservices

These headings reflect quality attributes and are intended to make quality reporting clearer andmore understandable for report users.

Quantity

Quantity indicators are provided for departmental outputs and third party outputs.

Price

The price paid for the outputs is also reported which complements the quality and quantityreporting.

The output reporting also fosters recognition of the fundamental nexus between the aspects ofquality, quantity and price.

An example of performance reporting under this framework is at Attachment A which is anextract from FaCS' 1999-2000 annual report. It is appropriate to refer to a complete section ofperformance reporting because the selection of a small number of performance indicatorsseparates reporting from the context which in turn can give a distorted view of performance.

FaCS' research and evaluation strategy

Research and evaluation is critical to developing good social policy and demonstrating theachievement of outcomes. Research and evaluation activity in FaCS, therefore, complementsthe external reporting of the achievement of outcomes.

The Research and Evaluation Committee, a sub-committee of the FaCS Executive Board, isresponsible for coordinating strategic direction on research and evaluation in the department.Individual branches in the department are responsible for the conduct and management ofspecific research activity.

FaCS has a research and evaluation framework which sets out the strategic directions for thedepartment's research and evaluation program and provides the basis for further discussionson emerging research agendas. The research and evaluation framework is posted on the FaCSWeb Site at http://www.facs.gov.au/internet/facsinternet.nsf/Aboutfacs/Respubs/research_eval_frame.htm

http://www.facs.gov.au/internet/facsinternet.nsf/Aboutfacs/Respubs/research_eval_frame.htm

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The FaCS research and evaluation strategy aims to:

C align research and evaluation directly with the FaCS Strategic Plan;C focus on policy-relevant research and evaluation both short and long term; andC meet the information needs of ministers and the department.

4. Development of FaCS' performance reportingframework

A Performance Framework Working Group undertook a review of FaCS' performance reportingin 1999 following publication of the 1999 Portfolio Budget Statement. Principles wereestablished against which to review performance indicators. The principles were developed inthe context of general standard performance information concepts in use in Australia and theGovernment's performance reporting requirements which were then new. This group was ledby the branch responsible for performance reporting and the annual report, the Performance,Ministerial and Public Relations Branch, with participation from key policy and programmanagement areas in FaCS.

In summary, the principles for the review were to:

C be clear on what efficiency and effectiveness means;C define outcomes and outputs so that achievement against them can be measured;C make indicators relevant and drivers of improvement;C set standards and targets where appropriate;C make indicators quantitative if possible;C ensure that they are clearly defined and informative, develop indicators to manage

performance - not to simply look good, and C ensure that performance data is valid, reliable and complete.

The review began with an analysis of existing performance management sources. Theseincluded the performance scorecard, branch business and work plans, the executive directors'performance agreements, program management information, research registers, the activitydictionary, and annual reports etc.

The FaCS framework was developed on the base of the government requirements foroutcomes and outputs performance reporting, integration with the FaCS strategic plan and withthe added feature of environmental indicators to set the context for performance.

All executive directors were closely consulted on the draft framework and adjustments weremade to address issues raised by them. Following clearance of the revised framework, thepre-existing set of performance indicators was analysed and cut to fit the framework. Theanalysis and consolidation allowed a reduction in the number of indicators by approximately50 per cent. Branches and reporting groups and other relevant internal stakeholders were thenasked to make any final contributions as part of the regular development process for portfoliobudget statements. The portfolio budget statement clearance process also includes theMinisters' offices.

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Following the release of the Portfolio Budget Statement in May 2000, an opportunity arose toinformally discuss the framework as part of a general discussion on budgeting and reportingreforms, with the Joint Committee of Public Accounts and Audit. Other opportunities to presentand discuss the framework with other stakeholders are taken as they arise. For example, anumber of reviews of output purchasing agreements have occurred where input from the FaCSperformance reporting adviser has helped to shape any revised agreements with providers sothat performance information is consistent with the revised framework.

Related development in strategic management planning

FaCS management is seeking best use of available knowledge and skills, responsiveness tochange, alignment between what we do and what the Government intends us to do. FaCS isseeking to have all of that captured and communicated as a set of priorities and decisions abouthow we conduct our business, what we produce, how we organise to produce it, how we setaccountabilities and responsibilities for outcomes, how we measure the success in deliveringthose outcomes and how we inform ourselves about what we learn from the whole process.

FaCS is documenting a Strategic Management Plan (SMP) representing business and resourceplanning at the level in the planning hierarchy that will inform business planning at theoperational level and closely integrate operational planning with FaCS' Strategic Plan. The SMPis an iterative direction setting document that has detailed content about the current planningcycle as well as “futures information” for at least the following two planning years. As thedetailed information becomes incorporated in business plans a further planning cycle is addedto the document so that it always has regard to a three-year cycle projected beyond the currentwork cycle including the relationship with FaCS' Strategic Plan.

Current stability and operational constraints

The performance reporting framework provides a solid base from which to further improveperformance information and reporting, particularly in terms of clarity and accessibility to theexternal reader. There is scope for developing the actual indicators and information within theframework. For example, and in common with all policy departments, FaCS can improve on theassessment and reporting the quality, quantity and pricing of its policy advice outputs. Work iscontinuing internally and in consultation with external stakeholders to improve performancereporting.

Data standardisation and data warehousing are significant issues in the context of performancereporting. To upgrade FaCS' capabilities in this areas, however, requires a significantinvestment which must be carefully considered against other priorities. The current strategy isto gradually upgrade this capability in concert with other business improvements.

The publishing of targets is an issue that needs to be addressed. In some respects the term“target” is less relevant in social policy and a simple estimate of activity levels may be morerelevant. Another operational concern in respect of publishing targets is that of exposure tobudget cutting from central agencies that are using incomplete information or information thatis not directly comparable. Nevertheless, the performance indicators that are published inportfolio budget statements have little meaning without the publication of forecasts againstthose indicators.

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Similarly, the segmented, incremental approach to annual budget decision-making and,consequently, budget measures that applies (in common with many other governments) is insome tension with a longer term strategic approach to performance reporting. It is thereforeincumbent upon FaCS to find a balance between the level at which items are classified, basedon the principles of “public interest” and “materiality”, and the more strategic structure of aperformance reporting framework which covers approximately 30 per cent of Australiangovernment budget outlays. This balance can only be achieved with close consultation withstakeholders. The reporting level issue was also a problem with the old program managementand budgeting system that preceded the move to outcomes and outputs reporting in Australia.There is also an ongoing tension to be managed between the annual cycle of budgeting andreporting that is a necessity of governments and the much longer terms over which thesuccesses of social policy need to be assessed.

Another operational issue to consider is the matching between external reporting and internalmanagement reporting to the FaCS executive in the performance “scorecard”. Some of thescorecard indicators are based on standard “Kaplan and Norton” type indicators, eg, financeand HR indicators. Other reporting, such as project progress, tends to be a more verbose typeof operational report that is not consistent with performance indicator theory and is less relevantas strategic management information. Both the senior management reaction to performanceoutcomes below expectation and the long term nature of social policy progress andachievement appear to mitigate against a simpler “dashboard indicator” type approach toreporting on policy and project work in a performance “scorecard” for a complex public sectororganization like FaCS.

While familiarity with dashboard indicator type reporting is likely to increase among seniormanagers and other stakeholders over time, the long term nature of social policy “performance”will not change. The wider adoption of outcomes hierarchy approach and balance betweenindicators and evaluation tools can, in some instances, allow social policy performance reportingto be spread from short to long term results.

Organizational support for performance reporting

Primary responsibility for performance information, analysis and reporting rests with the relevantpolicy or program management area. A minimal capability, ie, one person, is retained centrallyto coordinate, develop, advise and support performance reporting with additional resourcesadded to publish portfolio budget statements and annual reports.

Performance reporting advice also includes reference to the wide range of resources availableon performance reporting under an outcomes and outputs reporting model. For example, theAustralian Institute of Health and Welfare has recently published Integrating Indicators: theoryand practice in the disability services field which analyses the state of play on performancereporting across federal and state governments, explains performance reporting frameworksand suggests ways to progress indicator development for disability services in Australia.

Formal instructions to staff on performance reporting is provided as part of the process fordrafting portfolio budget statements and annual reports with ad-hoc advice and instructionprovided as need arises.

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The Research and Evaluation Handbook has been written as a guide to conducting researchand evaluation in FaCS which complements performance reporting. This handbook is an on-lineresource for staff involved in research and evaluation in FaCS. The handbook is primarilytargeted at staff conducting-or managing-a research or evaluation projects, but is also usefulfor staff seeking a more detailed explanation of the: arrangements for; purpose of; andapproaches to research and evaluation within FaCS.

The handbook summarises:

C the key issues for researchers or evaluators from the initial planning stages of a projectthrough to the final report (and beyond);

C identifies areas within FaCS that offer a service to researchers or evaluators;C identifies key publications on research and evaluation available in the FaCS library; andC identifies electronic sources of information on research or evaluation, including links to

other areas of the FaCS Intranet.

The research and evaluation handbook is not a definitive statement on evaluation. There arealready numerous other sources of information on research and evaluation-particularlyinformation on research methodologies.

5. Example of performance reporting in FaCS

An example of performance reporting is at Attachment A which is an extract from FaCS'1999-2000 annual report. A full copy of this annual report can be located athttp://www.facs.gov.au/internet/facsinternet.nsf/aboutfacs/respubs/2000annualreport.htm.

Sources of the performance indicators include research studies into particular programs orclients, eg, standard income support indicators, work by the Productivity Commission onprovision of public services in Australia, OECD social indicators and other standard outputindicators.

Data sources for performance information include:

C Australian Bureau of Statistics Dissemination Database;C Centrelink supplied MainFrame Data Sets (and other data from various service

providers);C Childcare Census;C Disability Data Warehouse;C Disability Services Census Data;C FAMnet;C HealthWIZ;C Housing DataSet;C Income Support Numbers and Expenditure, 1901-1998;C Longitudinal Data Sets - DB2;C Total Analysis and Reporting of Disability Services (TARDiS); andC Youth Programs Database.

The FaCS framework and reporting has received favorable comment and review. The1998-1999 FaCS annual report won the award for best Commonwealth department

http://www.facs.gov.au/internet/facsinternet.nsf/aboutfacs/respubs/2000annualreport.htm

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annual report as judged by the Institute of Public Administration Australia (IPAA). Thereis, of course, areas where improvement is needed in FaCS' performance reporting.These areas are:

C In terms of further simplification of performance reporting, integration with internalmanagement reporting and the integration of internal management structure andreporting with the external reporting business structure;

C The need to make substantial improvement in areas of understanding our data, datastorage and retrieval (including audit trails) for reporting against data; and

C The need to embed performance reporting in the culture and work of FaCS so thatperformance reporting is as efficient as possible and not an “add-on” to public policy orprogram management.

Data collection, data storage and production of information

PI database

A simple PI database has been developed to support performance reporting against theindicators. This database is available on the Lotus Notes desktop across FaCS and providesa central storage point for raw performance data, “corporate knowledge” such asmethodologies, an audit trail, a capability for direct link to data sources and other basicmanagement capabilities.

Data warehouse

There is a need in FaCS to further develop its data warehousing capability. The cost ofdeveloping this capability, although modest in benchmark comparisons, is prohibitive in thecurrent budgetary environment. The data mapping project, which listed the data sources above,is a small step towards a data warehouse.

Data retrieval from the data sources listed previously is based on individual skills and is notstandardised across the sources. There is a heavy reliance on Centrelink (and many otherservice providers) for maintaining and supplying income support data and FaCS spendsconsiderable resources on managing this data provision.

Feedback mechanisms and outcome-oriented management

Typically, social policy institutions have, both traditionally and by training, focussed on theachievement of outcomes and utilised performance oriented research and evaluation. Thisfocus, however, tends to be program specific rather than in an holistic way across allinterventions in society. The application of a clearly defined framework, which links outcomeassessment with strategies and, importantly, is consistent with performance reporting by othergovernment agencies, has the potential to significantly improve the quality of feedback loopsand decision making in social policy.

There are indications that the FaCS performance reporting framework has improved the qualityand application of feedback mechanisms in social policy and management. For example, the

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new Family and Community Strategy is exploring innovative ways to implement social policyand foster community interaction with social policy institutions. The performance reportingframework facilitates the interaction and overall management of the various threads of this newstrategy through consistent application of the assessment of performance and the achievementof outcomes.

Similarly to most social policy initiatives, however, it will be some time before a full assessmentof the degree of improvement to feedback mechanisms can be made. The indications arenonetheless positive.

6. Conclusion

FaCS' performance reporting framework has met its design objectives. The framework:

C meets the externally set performance reporting requirements;C facilitates clearer reporting of FaCS' achievements and better understanding of the

nature of FaCS' business; andC addresses the needs of stakeholders to provide relevant payment, program or

intervention information within the outcomes and outputs structure.

In comparison with other Australian government agencies, FaCS is among the leaders of goodpractice in performance reporting. There is no doubt that performance reporting is a significantcost for FaCS. The greater clarity and transparency that is achieved through the reportingframework across the whole of FaCS can greatly contribute to policy debate and developmentwith a more inclusive decision making process.

Although already successful, FaCS' performance reporting will likely take another two or threereporting cycles before the framework achieves maturity. In that time, a concerted effort will berequired across FaCS and in concert with stakeholders such as central agencies and socialpolicy and provider institutions, to be strategic, achieve stability and the full benefits from thereporting and feedback loops. Gains can also be made in data integrity and greater synergywith strategic management and operational requirements, in particular to reduce reportingoverheads. Improvements to reporting and outcomes-based management will be judged byFaCS' stakeholders, including yourselves.

Further information on the FaCS Performance Reporting Framework is available [email protected].

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I:\WEBDOC\Taormina\2Facs-Annex.doc Last printed 08.03.01 08:34

Outcome 1 Performance Report for 1999-2000

(Extract from Annual Report) This extract is an example of the full context of the FaCS performance reporting framework and assessment of the achievement of outcomes in a public document. Note that reporting and performance information is attached here for only one business group in this outcome, ie Family Assistance. The full FaCS 1999-2000 annual report is available at http://www.facs.gov.au/internet/facsinternet.nsf/aboutfacs/respubs/2000annualreport.htm FaCS Outcome 1 - Families, young people and students, have access to financial assistance and family support

Description

This outcome reflects the Government’s commitment to support and strengthen families as the fundamental unit of society. FaCS recognises the contribution of families to the overall health and well-being of individuals and society, and will:

• assist families in building their capacity and their resilience, including through supporting and strengthening relationships; and

• facilitate families in selecting and receiving the help they need in times of transition and crisis.

Figure 4: Outputs contributing to Outcome 1

FaCS delivers outcomes through various relationships with other levels of government and community-based organisations, as well as formal purchaser-provider relationships with agencies such as Centrelink. Table 1: Financial and staffing resources summary

http://www.facs.gov.au/internet/facsinternet.nsf/aboutfacs/respubs/2000annualreport.htm

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Key strategies and activities

The key strategies and activities for strengthening family capabilities are: • providing financial assistance to families; • improving family relationships with support and education, including measures

aimed at preventing or reducing the incidence of domestic violence and child abuse;

• administering child support through the Child Support Agency; • providing financial support for youth and students; and • supporting services for young people and their families including those young

people at risk of homelessness. Child care Support (Group 3.5) also contributes in various ways to strengthening families. This includes facilitating their involvement in the workforce, supporting the development and education of children, and providing an increasingly important prevention and early intervention response with flexible child care initiatives as part of the Stronger Families and Communities Strategy.

Environmental indicators and analysis

The environmental indicators for the Stronger Families outcome highlight the diversity of issues affecting Australian families. The indicators focus particularly on factors which influence the needs and choices of both single and dual income families. They also emphasise the Government’s increasing recognition of the importance of community participation and provision of services to enhance relationships. Marriage rate The need for quality support services for families remains strong, despite strong economic growth in recent years. On the positive side, the marriage rate in 1998 (the most recent data available) moved slightly upwards, over its 1997 level. This suggests at least a temporary halt in the trend over the past 20 years. The crude marriage rate increased from 5.8 marriages per 1,000 population in 1997 to 5.9 per 1,000 in 1998. Separation rate Although the divorce rate has fluctuated over the last 20 years, a steady upward trend is evident. Data for 1998 showed a divorce rate of 2.7 per 1,000 population, with two in five marriages likely to end in divorce. As a result, divorce is likely to affect one in five children during their dependent years, suggesting an ongoing high social cost. The high social cost of marriage and relationship breakdown evident in these long-term figures drove an increased focus on early intervention and prevention in dealing with relationship issues and family support. At present, only one in five couples takes advantage of pre-marriage education services. The House of Representatives Standing Committee on Legal and Constitutional Affairs report, To Have and To Hold, demonstrated the importance of providing pre-marriage education to assist couples in considering complex issues, attitudes and expectations about relationships.

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The Government established the Marriage and Family Council to provide expert advice on marriage and relationship education and other areas of family policy. Other initiatives included pre-marriage voucher pilots in Launceston and Perth, and the pre-marriage relationship education kit in the Whyalla region. The Stronger Families and Communities Strategy will provide services and activities within specific communities to focus on prevention and early intervention. Early access to clear information and support is vital for families facing the trauma of breakdown. The Family Law Pathways Advisory Group, which is a joint initiative of the Minister for Family and Community Services and the Attorney-General, is examining ways to improve services for these families. The group will report to the Government in December 2001. Youth problems Around 2.4 million young people aged 16-24 live in Australia. These young people, and their families, are affected by a diversity of social and economic factors. Joblessness affects a larger proportion of families with children in Australia than in most other developed nations. Around one in five families with dependent children is a sole parent family; about one in five children live in jobless families. Although youth unemployment is high, 12.3 per cent in 1999, the proportion of young people aged 16-24 participating in part-time/casual employment and full-time education is increasing. Year 12 retention rates are gradually increasing, from 71.6 per cent in 1998 to 72.3 per cent in 1999. Young people’s educational attainment is increasing in an environment where they need higher qualifications to compete in the labour market. Full-time education participation for 20-24 year olds increased 30 per cent from 1988 to 1998. The nature of work is also changing. Casual and part-time work are challenging full-time, long-term employment as the norm. This trend, along with the rising cost of living means that young people are living with their parents longer. Australian Bureau of Statistics (ABS) data shows the average age young adults leave home increased from 23 in 1992 to 25 in 1997. Family structures are changing. The nuclear family is declining, now representing fewer than one in five households, and the number of single parent homes has jumped significantly. Increased family breakdown is affecting the rate of homelessness among young people. General concerns include rural and isolated families, who are more disadvantaged in accessing education because of the greater expense of sending their children away from home to study, than their city counterparts. To support young people and their families, FaCS provides financial assistance to young dependent people from low and middle-income families and independent young people. FaCS’ programs provide incentives for young people to continue their education, and provide flexibility and incentives for part-time or casual work. As strong families form the foundation of a cohesive and effective society, FaCS provides support and services for families in the form of early intervention and prevention programs. Where young people are more firmly attached to family and community, risks are lessened and outcomes improved.

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FaCS programs provide incentives for young people from rural and isolated families to continue or undertake full-time study. Labour force participation and changing family structures Around 2.6 million Australian families have children under 25. The well-being of these families depends on both their ongoing economic security and their capacity to cope with change and crisis. To support these needs, FaCS provides general financial assistance, which is available to most families, and additional support and services for those in particular circumstances. Families exhibit increasing diversity of child rearing and workforce participation arrangements. Higher rates of labour market participation by women over the last two decades created new options for families, partly due to the growth of part-time and casual work. Government programs therefore need to reflect the needs of families where both parents work, as well as those where one remains at home, particularly where young children are involved. In addition to direct family payments, access to affordable, quality child care plays an important role in helping parents to balance their work and parenting responsibilities. In turn, changing workforce patterns have created a need for more flexible child care models. This is reflected in the Stronger Families and Communities Strategy. Despite the increase in labour market participation by women, a significant number of families with children (including dependants aged 15-24) have no parent in paid employment, 441,700 as at June 1999. This represents around 17 per cent of all families with children. The growing flexibility of work and income patterns also highlights the importance of family assistance programs in supplementing household income especially for low income families. A particular concern has been the disincentive effect of high effective marginal tax rates caused by the interaction of the tax and welfare systems. The Government’s July 2000 tax reform package has substantially reduced net tax rates for working families, providing them with better incentives to improve their income. Family structures exhibit increasing diversity. While around 80 per cent of children under 18 live in couple families, numbers of lone-parent and blended families are growing. For example, the proportion of children living in lone-parent families rose from 11 per cent in 1986 to 18 per cent in 1997. Most lone parent families are formed following separation or divorce (ABS, 1999, Children Australia: A Social Report). In this context, recent family law reforms have highlighted the shared responsibility of both parents to support their children even after separation, and the right of the child to be with, and know, both parents. Family assistance structures need to be sensitive to these rights, and recognise the costs faced by separated parents who share the care of their children. The Child Support Scheme also reflects the mutual responsibility of parents to contribute to the material needs of their children. In 1999-2000, work was done to improve the responsiveness of the scheme to the needs of parents, culminating in the Budget initiatives described under Group 1.3.

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While income assistance programs need to reflect the diversity of family circumstances, they also need to be as simple and transparent as possible. Complex payment structures can be difficult for parents to understand and prevent families from accessing the help they need. The tax reform package responded to this by introducing a simpler, but well targeted, set of family assistance and child care payments.

Social justice and equity impact

Policies and programs FaCS’ policies and programs are designed to address the aspirations of Australians for social justice and equity, through programs to deliver stronger families and communities, and social and economic participation by communities, families and individuals. These policies and programs take special account of issues affecting rural and regional areas, the particular needs of Indigenous communities, people from diverse linguistic and cultural backgrounds, people with a disability and women. Outcome 1 focuses on policies and programs which strengthen families by building their capacity and resilience and providing assistance with the costs of raising children. These include youth programs which help families to support young people; help them negotiate the transition between education, training and the workforce; and provide services and support for young people at risk of homelessness and their families. For information on the performance of particular programs, see the group reports. New initiatives in 1999-2000 which focus on improving social justice and equity include:

• implementing the new Family Tax Benefit arrangements which became effective on 1 July 2000;

• working on the development of the Youth Pathways Plan to improve support for young people;

• providing additional marriage and relationship education services; • implementing the Reconnect Program to trial a range of early intervention and

family relations approaches to youth homelessness; • extending Family Allowance to 16-20 year old jobseekers and 16-24 year old

full-time students; and • implementing the pre-marriage voucher pilot initiative which provides free

access to pre-marriage education. Developmental activity produced new innovative strategies that form part of the 2000-01 Budget. These strategies will increase significantly the capacity of communities, families and individuals to support themselves and be less reliant on Government support. Specific 2000-01 Budget measures include:

• an increased Youth Allowance family assets limit for farmers and business. This change will increase the discount available on farm and business assets from 50 per cent to 75 per cent;

• the Child Support Package to improve the operation of the Child Support Scheme;

• measures to improve social security compliance; and

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• a package of measures to simplify the social security system. Access and equity in service delivery FaCS recognises the importance of ensuring that customers have equitable access to the full range of FaCS’ programs and services, and that people are not unduly disadvantaged by service delivery arrangements. In line with the Government’s Charter of Public Service in a Culturally Diverse Society, FaCS submitted an Access and Equity report to the Department of Immigration and Multicultural Affairs in September 2000. The report outlined specific initiatives and strategies that met one or more of the charter’s principles of access, equity, communication, responsiveness, effectiveness, efficiency and accountability. As part of the social justice agenda, the 1999-2000 Business Partnership Agreement between FaCS and Centrelink establishes arrangements to deliver many programs for which FaCS is responsible. The agreement ensures service delivery standards are maintained and customers receive fair and equitable treatment. The agreement is designed to be a user-friendly document, written in plain English. Social research agenda FaCS contributes to the community’s understanding of social justice and equity issues through its social research agenda. During 1999-2000, FaCS participated in research projects that supported its outcomes of Stronger Families, Stronger Communities, and Economic and Social Participation. For information about research and evaluations undertaken during 1999-2000, see outcomes and output group reports.

Performance highlights and policy outlook

Support for families FaCS funds around 100 community organisations to provide family relationships services in nearly 400 outlets. In 1999-2000 new initiatives to support men in their relationships were introduced to assist in preventing marriage and relationship breakdown and assist separating parents in resolving and managing conflict over children’s contact arrangements. The Marriage and Family Council was established to provide the Minister with advice on family and relationship issues. Providers of family relationship services signed new contracts specifying a standard minimum set of quality standards, developed in consultation with the sector. The providers completed a process of self assessment against the standards, and an independent assessor began to verify compliance. Verification will continue in 2000-01. Completed contracts now provide for an additional 36 pilot projects to help break down the barriers for men in accessing relationship services. The pilot programs will operate for the next three years. FaCS undertook a major tender to provide children’s contact services. Contact services assist children of separated parents to re-establish and/or maintain a relationship with their non-resident parent when high levels of conflict or concerns about the safety of family members exist. Tender assessment was completed in July 2000.

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FaCS developed and launched both components of the pre-marriage pilot scheme. The voucher pilot launched in October 1999 and the pre-marriage education kit launched in June 2000 will be evaluated in 2000-01. The Good Beginnings project, based on volunteer home visiting of families with new babies, expanded rapidly, and with funding from philanthropic and other sources, has helped establish related projects without Commonwealth funding. Stronger Families and Communities Strategy The Prime Minister announced the Stronger Families and Communities Strategy in April 2000. The strategy comprises a number of major initiatives contributing to the outcomes of stronger families and stronger communities. Measures under the strategy involve working within communities to help strengthen families; support better relationship skills and improve parenting; and provide more and responsive child care options. FaCS will commission a national study of Australian children to focus on early childhood and effective early intervention strategies in health, education, child care and family support. FaCS will undertake wide consultation in implementing the strategy and observe key principles of:

• working in partnerships with other key players; • seeking prevention and early intervention; • focusing on life transitions; • providing more integrated and coordinated services; • seeking local solutions to local problems; • building capacity within communities and families; • using the evidence and looking to the future; and • making the investment count.

The strategy will provide a major focus for work during 2000-01. Family and Community Networks Initiative The initiative aims to improve access to information and services relevant to families and community organisations, and enhance the capacity of communities and services to work together more effectively to address the needs of families and communities. The initiative runs to June 2002. In 1999-2000, FaCS funded 12 community networking and innovative one-off projects. This is a new type of activity for the portfolio and one of the key drivers is to draw significant understanding from the initiative about the Government’s capacity to engage in community strengthening activities. This informed policy work on the Stronger Families and Communities Strategy announced by the Prime Minister in April 2000 and continues to be an important element of the initiative. An evaluation will be carried out in the final year of the initiative.

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Youth and students FaCS provides funds for programs to support young people needing more intensive assistance. The Youth Homelessness Pilot Program funded 26 services around Australia, trialing a range of early intervention and support services to young people at risk of homelessness and their families. The Prime Ministerial Youth Homeless Taskforce’s recommendations, based on the pilot program, led to the new youth homelessness early intervention program – Reconnect. The Minister for Family and Community Services announced the Reconnect Program in October 1999 and the first of the 29 services established in the first round of implementing this program began operating in December. Reconnect services are provided in partnership with community organisations. FaCS used a competitive process to select these community organisations from each of the communities of high need the program identified. All have funding agreements with FaCS to deliver Reconnect services. A further 36 services will commence from July 2000. Further support to young people is provided through the Youth Activities Services Program and the Family Liaison Worker Program. These services provide a range of activities, generally after school, to adolescents living in disadvantaged areas who are at risk. The target group is young people aged 11-16 who still live at home and attend school. The liaison worker provides practical support and guidance to young people aged 11-16 and their families, to help them deal with difficulties such as family conflict, lack of communication or other issues affecting their well-being as a family. Together the programs aim to keep young people engaged with their community and strengthen family relationships. By responding to the needs of the local community in the activity programs that they offer, the Youth Activities Services also contribute to strengthening their community. Nationally, the Youth Activities Services operate 93 services with 83 liaison workers. Youth Allowance will continue to support young people in an environment of change and increasing diversity in education, training and pathways to employment. More young people will have access to Youth Allowance in 2000-01 because the discount for farm and business assets under the family assets test will increase from 50 per cent to 75 per cent, and the definition of a full-time student will be extended. Findings from the Youth Allowance interim evaluation report and the welfare reform review will form the basis for future policy directions, including:

• simplifying parental means testing; and • improving incentives to participate in education and training for both young

and mature age students. The Government responded to one of the key recommendations of the Prime Minister’s Youth Homeless Taskforce’s final report Putting Families in the Picture by announcing the establishment of the Youth Pathways Action Plan Taskforce. The taskforce was to develop and scope a five-year national action plan, focused on improving support for young people and their families during young people’s transition to independence and strengthening pathways for young people. The first meeting was held at Parliament House in October 1999.

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The taskforce will report to the Ministers for Family and Community Services, and Education, Training and Youth Affairs on the development of a Youth Pathways Action Plan. The taskforce secretariat is provided jointly by FaCS and the Department of Education, Training and Youth Affairs. The taskforce expects to provide its final report to the Government towards the end of 2000. The Reconnect Program and the Youth Pathways Action Plan Taskforce’s report will provide further opportunities to develop policies to address relationship and family breakdown issues, and strengthen networks of support for young people, their families and communities. The Government has adopted a ‘social coalition’ or partnership approach of working closely with business and community organisations, welfare agencies and labour market authorities to achieve positive outcomes for young people and their families. Family payments and tax reform Family assistance payments (excluding Parenting Payment) currently account for over $7 billion in expenditure each year. These payments assist with the costs of raising children, including the indirect costs of reduced workforce participation by some families with young children. Higher assistance is targeted to families with low incomes. Family Allowance provides financial assistance to around 1.74 million Australian families in respect of 3.4 million children (as at June 2000). Family Tax Payment provides extra help in addition to Family Allowance, including assistance to those with at least one child under five and only one main income earner. Family Tax Payment is the income security component of the Family Tax Initiative, aimed at low income families entitled to more than the minimum rate of Family Allowance. Higher income families can access equivalent assistance through the tax system. At June 2000, over 866,000 families received Family Tax Payment. Maternity Allowance is a lump sum of $750 ($780 from 1 July 2000) to help with the cost of a newborn child. A $200 Maternity Immunisation Allowance ($208 from 1 July 2000) was introduced in January 1998 for children born after that date. It is payable at age 18 months for fully immunised children (including cases where a medical or conscientious objection to immunisation exists). The first payments for immunised children were made in July 1999. Maternity Immunisation Allowance can also be paid in cases of stillbirths and neo-natal deaths in certain circumstances. In these cases, it is paid with Maternity Allowance. In 1999-2000, around 209,000 customers received Maternity Allowance and 183,180 received Maternity Immunisation Allowance. In 1999-2000, Parliament passed legislation to improve the responsiveness of the Double Orphan Pension. The changes extend eligibility to certain cases where a parent is on remand and also pay a Double Orphan Pension supplement to carers receiving less Family Allowance than the child’s original family. At June 2000, about 1 260 families received Double Orphan Pension for 1,600 children.

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Changes to family assistance also include changes made to financial assistance with the costs of child care. The new Child Care Benefit arrangements are described in Group 3.5. The tax reform package provides policy directions for family assistance over the next few years. These are:

• simpler payment structures; • improved work incentives through relaxed means testing; • choice of delivery between transfer payments and the tax system; and • support for the choices families make in balancing their parenting

responsibilities and workforce participation levels, especially families with young children.

The introduction of the Family Assistance Office provides a mechanism for developing possible links between payment delivery and broader services for families in the future. Policy in relation to the Child Support Scheme continues to focus on improving fairness, equity, and flexibility while still ensuring parents support their children according to their capacity. Tax reform measures The tax reform package provides for a fundamental restructure of family assistance after 1 July 2000. Rates of payment have been increased, income tests relaxed and the assets test abolished. This will result in $2.4 billion in extra expenditure each year, including deliveries through the tax system. Ten forms of assistance currently available in the tax and transfer systems were combined to form Family Tax Benefit, Parts A and B. Part A replaced the following payments to provide assistance with the general costs of children:

• Minimum Family Allowance. • More than Minimum Family Allowance. • Family Tax Payment, Part A. • Family Tax Assistance, Part A.

Family Tax Benefit, Part B replaced the following assistance currently provided to single income families, including sole parents:

• Basic Parenting Payment. • Guardian Allowance. • Family Tax Payment, Part B. • Family Tax Assistance, Part B. • Dependent Spouse Rebate (with children). • Sole Parent Rebate.

Changes also were made to the payments that assist with the cost of child care. Family Assistance Office The Family Assistance Office will deliver the new family assistance system. The office is a joint venture between Centrelink, the ATO, and the Health Insurance

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Commission, with FaCS having overall responsibility for managing the office. The new system will enable families to deal with one agency and one set of policy rules. Working families also will be able to choose whether they take their financial assistance through fortnightly payments or the tax system. An end of tax year reconciliation will ensure families receive the correct level of assistance for their income, regardless of their choice of delivery. Work on the creation of an expert system for the Family Assistance Office began in March 2000. This joint project with Centrelink is known as EDGE. After the tender process was completed, FaCS engaged SoftLaw Corporation to assist in developing the EDGE expert system. The EDGE expert system will apply the policy rules set out in the Family Assistance legislation and associated policy guides, to estimate a person’s entitlement to family-related payments. The system uses the responses to each question to determine which question to ask next. A commentary along side each question will advise users why the question is being asked and help with responses. The system will provide a record of the decision path and give the reasons why a person is or is not eligible for a payment. If a person is eligible the system will provide the rate of their payment. It will print off a letter advising this information and a customised claim form. The system will be ready for Family Assistance Office sites to pilot in early 2001. Child support The Child Support Agency became part of FaCS after moving from the ATO in October 1998. The agency had a successful year and major achievements included:

• continuing improvements in all key performance measures; • implementing successfully the Child Support Legislation Amendment Act

1998; • establishing regional service centres in an additional 20 sites, mainly in

regional Australia; • receiving the Special Minister of State Platinum Award for excellence across

all three categories of the Customer Service Award; • conducting regular community information sessions in many regional and

metropolitan centres and an expanded, targeted national outreach program to enhance access by parents to Child Support Agency staff and information (including information about community support services) to help them; and

• reducing significantly complaints to the Ombudsman and Members of Parliament; this indicated the Child Support Agency improved its administrative processes and gained greater public confidence that it can resolve most of people’s concerns within the framework of the law.

Evaluations

• Support for families: FaCS completed its evaluation of the Adolescent Mediation and Family Therapy Program in December1999. The evaluation provided a good opportunity to look at a closer alignment between this and the

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Reconnect Program. Client satisfaction with Adolescent Mediation and Family Therapy services was high.

• Youth and Students: FaCS is conducting a three-year evaluation of the Youth

Allowance, with assistance from the Department of Education, Training and Youth Affairs. The evaluation seeks to:

• examine and report on the transitional effects of Youth Allowance, such as whether changes in entitlement were prepared for appropriately, and adjusted to, by young people and their families; and

• examine and report on how well the program met medium and longer term objectives, particularly for education, employment and training outcomes for customers, and the impact on young people in rural and remote areas for whom education and training opportunities are limited.

• The Youth Allowance Evaluation Interim Report was released in March

2000. A final report will be available in late 2001.

• Reconnect Program: FaCS is planning a four-year evaluation (2000-03) of this program. An interim evaluation report will be available in late 2001.

• Preliminary Family Tax Benefit and Child Care Benefit Survey: FaCS

undertook a preliminary survey of 1,517 potential Family Tax Benefit and Child Care Benefit customers to identify families’ likely initial choice of delivery, and gather baseline data for future evaluation purposes. The main findings were:

• 66 per cent of respondents would prefer to receive their Family Tax Benefit as a fortnightly payment, 9 per cent as reduced tax instalment deductions, 22 per cent as a lump sum at the end of the tax year and 3 per cent were unsure;

• households preferring tax system delivery tended to have higher incomes (over $73,000); and

• 68 per cent of respondents using paid child care would prefer their Child Care Benefit paid as a payment to the provider, 6 per cent as a claim at the end of the tax year, 21 per cent as reimbursement on receipts provided, and 5 per cent were unsure or did not think they would qualify.

These findings were used to adjust the allocation of program funds between the FaCS portfolio and the ATO for the 2000-01 Budget. This was because more families than originally expected said that they would prefer fortnightly payments.

Competitive tendering and contracting

The Government’s Performance Improvement Cycle emphasises adoption of market-based tools wherever practicable, including competitive tendering and contracting and the use of purchaser-provider arrangements. Agents generally delivered payments and services in support of Outcome 1 on behalf of FaCS. The largest arrangement is the continuing purchaser-provider arrangement

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between FaCS and Centrelink. This arrangement, known as the Business Partnership Agreement, is a service arrangement in terms of the Commonwealth Services Delivery Agency Act 1997. In July 1998, the former Department of Social Security signed a three-year agreement with Centrelink. Following the creation of the FaCS portfolio, the agreement was restructured to reflect the changed administrative arrangements. Moreover, it needed amending to set the required services in the FaCS strategic outcomes framework, reflecting both the creation of the new portfolio and the Government’s introduction of outputs and outcomes-based budgeting. These changes were negotiated, and reflected in the amended agreement signed with Centrelink for 1999-01. From 1 July 2000, the Family Assistance Office will deliver family assistance under business agreements with Centrelink, the ATO and the Health Insurance Commission. Each of these three service delivery agencies will provide Family Assistance Office outlets. Service delivery staff in each Family Assistance Office will exercise powers delegated from the FaCS Secretary under the family assistance legislation. FaCS is conducting a Statement of Care Pilot in partnership with Centrelink to test a more flexible approach to paying family assistance for children in Indigenous groups, where child rearing may be shared within the extended family. The pilot, in five locations, involves Indigenous communities in South Australia, Queensland, New South Wales and Victoria. In 1999-2000, $25,430 was transferred to Centrelink to cover associated administrative costs. An evaluation of the pilot will be completed in early 2001. FaCS contracted the preliminary Family Tax Benefit/Child Care Benefit survey to the Marketing Science Centre at the University of South Australia following a select tender process. The Family Relationships Services Program is implemented primarily through letting contracts to non-government agencies to provide services to clients. In July 1999, a revised contractual framework with service providers enhanced the focus on performance requirements and reporting, particularly in terms of intended client benefit. Since then, use of market-like mechanisms, such as competitive tendering for new family relationships services, increased to ensure the Commonwealth receives value for money. FaCS contracted out on a competitive basis the following research projects as part of the Youth Allowance Evaluation:

• a three-phase longitudinal survey of Youth Allowance customers (begun in 1999) to assess the extent the allowance encourages young people to participate in education and training;

• cross-sectional surveys of young people and parents to gauge attitudes on financial responsibility for young people; and

• a qualitative study of the impact of the allowance on young people and families in rural and remote Australia, including Indigenous young people and families.

FaCS conducted two competitive selection processes to choose community organisations to deliver early intervention services for the Reconnect Program:

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• organisations successful in first round selection were announced in October 1999 and services began in December 1999; and

• organisations successful in second round selection were announced in 36 communities in May 2000, and services in these communities began in July 2000.

FaCS is undertaking community development work in a further ten communities of high need, that were identified in the first and second round selection processes.

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Group 1.1 – Family Assistance

Contribution to Outcome 1

Family Assistance Output contributes to Outcome 1 by:

• providing income support to families to assist with the costs of children, including newborns, in a way that recognises the needs and choices of both single and dual income families; and

• helping support and strengthen families through providing services to enhance family relationships and protect against family breakdown, including parent education to prevent child abuse.

Strategies

• Contract non-government organisations to provide services such as family relationship education, family relationships skills training, family relationships counselling, family relationships mediation, adolescent mediation and family therapy, children’s contact services and financial counselling.

• Provide funding in support of a range of parenting programs. • Provide leadership, research, community education and national data collecting

in child exploitation, abuse and neglect. • Provide a system of financial assistance available to most families, with

payments structured according to the number and ages of children in the household.

• Recognise the additional needs of particular groups, including sole parents, single income couples, and people caring for orphaned children.

• Simplify the system of financial assistance, in a way that allows both increased levels of payment and improved incentives for customers to take up employment or otherwise improve their circumstances.

• Promote choice of delivery mechanisms so families can elect whether they receive their financial assistance as a transfer payment or through the tax system.

Payments and programs under group 1.1

Family Allowance (FA) Paid to families with dependent children and young people aged up

to 24. The young person cannot be receiving Youth Allowance or other income support in their own right and must be a full-time student if aged over 21. The rate paid depends on family size and income as well as the ages of the children. Extra assistance is available for sole parents and families renting in the private market.

Family Tax Payment (FTP) Provides additional help to families with low taxable incomes. It is

the equivalent of an increase in the tax-free income threshold for families with dependent children. Family Tax Payment, Part A is available for each dependent child, while Part B provides extra help for families with only one main income earner and a child under five.

On 1 July 2000, Family Allowance and Family Tax Payment were replaced by Family Tax

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Benefit, in accordance with the tax reform package. Maternity Allowance (MAT) A one-off lump sum payment to assist with the costs of a newborn

child, including stillbirths and children who die shortly after birth. The claimant must qualify for Family Allowance (or Family Tax Benefit, Part A from 1 July 2000) within 13 weeks of the child's birth. (From 1 July 2000, adoptive parents can qualify within 13 weeks of the day the child is placed with them, as long as he or she is not more than 26 weeks old at the time).

Maternity Immunisation Allowance (MIA) A one-off lump sum payment for a child who is fully immunised at

age 18 months, or is exempt from immunisation where there is a medical or conscientious objection. If Maternity Allowance was not paid for the child, parents must attract Family Allowance (or Family Tax Benefit, Part A from 1 July 2000) at the time they meet the immunisation requirements.

Double Orphan Pension (DOP) A non-means tested payment for children with at least one deceased

parent, who cannot have contact with the other (for example, because that parent is a long-term prisoner or their whereabouts is unknown), and for refugee children.

Family Relationships Services Program Organisations are contracted by the Commonwealth to provide one

or more of the following service types: family relationships education, family relationships skills training, family relationships counselling, family relationships mediation, adolescent mediation and family therapy, and children’s contact services.

Parenting Programs Include Playgroups providing children under five years and their

carers with the opportunity to interact with other children and their carers, and the Good Beginnings National Parenting Program, a family centred program based on volunteer home visiting of families with new babies.

Commonwealth Financial Counselling Program Provides access to quality financial counselling services, free of

charge, to people in low-income groups experiencing financial crisis due to circumstances such as unemployment, sickness, credit over-commitment and family breakdown.

Family and Community Networks Initiative Is a four year pilot program to June 2002 that seeks to improve

access to information relevant to families and communities. The initiative comprises the development of a web site, providing a gateway to relevant information and a targeted grants program funding community networking projects and innovative one-off projects in high need communities which contribute to these aims.

Stronger Families and Communities Strategy Comprises a number of major initiatives contributing to the

outcomes of stronger families and stronger communities. Measures include working within communities to help strengthen families,

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supporting better relationships skills, improving parenting, and providing more and responsive child care options.

Pre-Marriage Education Pilot Has two components, a pre-marriage voucher being trailed in Perth

and Launceston, redeemable for marriage and relationship education courses up to $200, and a pre-marriage resource kit for couples who cannot or are unlikely to attend face-to-face services, being trailed in Perth, Launceston and the Whyalla region.

Contact Orders Pilot Assists separating parents in resolving and managing conflict over

children’s contact arrangements. Table 2: Group 1.1: Financial and staffing resources summary

Attachment A 19


Attachment A 20


Performance information

Performance information for Group 1.1 is reported below under the main payments or programs. They are Grants to Family Relationships Support organisations, Domestic Violence pilot programs and other services for families with children, child abuse prevention, the Family and Community Networks Initiative, Family Allowance, Double Orphan Pension, Family Tax Payment and Maternity Allowances. The performance indicators for family assistance relate to the effectiveness of the programs in helping families improve their income, capacity and resilience, and ability to select and receive the help they need at times of transition and crisis.

Grants to Family Relationships Support organisations, Domestic Violence pilot programs and other services for children

Effectiveness–capacity Proportion of customers with positive outcomes 79 per cent of customers achieved positive outcomes. [Footnote 1]

Quantity Number of customers assisted – 84,373 Number of sessions provided – 182,056

Child abuse prevention

Quality–assurance Commissioned research and pilot projects on child abuse prevention meet expectations or quality, timeliness and usefulness and add to policy development Innovative one-off parenting pilot projects demonstrated the outcomes anticipated and proved useful in shaping future policy directions in child abuse prevention.

Family and Community Networks Initiative

Quality–access and choice Timely implementation of web site and community networks with good stakeholder cooperation The Family and Community Networks Initiative web site is under construction. The web site should undergo useability testing in late 2000 with a launch in early 2001. All state and territory offices implemented strategies to engage with key stakeholders in a number of high need communities about developing networking and capacity-building project proposals. Quantity Number of organisations involved in community networking initiatives The Minister for Community Services approved funding for 12 projects. Of these, six are community networking projects and six are smaller innovative one-off projects. Project proposals are developed continually in collaboration with FaCS state and territory office staff. Around 30 community networking projects with budgets of up to

Attachment A 21


$100,000 per year over three years should be initiated by 30 June 2002, with the remaining funding being for one-off projects with budgets in the vicinity of $20,000.

Family Allowance, Double Orphan Pension, Family Tax Payment, Maternity Allowance and Maternity Immunisation Allowance

Effectiveness–adequacy Maintenance of the real value of payments (including Rent Assistance) by regular indexation based on the cost of living Family Allowance and Double Orphan Pension rates were adjusted at 1 January 2000 in accordance with the legislation. The indexation factor used was 1.011. Family Allowance rates also were adjusted to meet the adequacy benchmarks. These are 16.6 per cent of the combined married rate of pension for children aged under 13, and 21.6 per cent for children aged 13-15. Family Tax Payment rates were indexed as they are linked to the tax-free threshold, which did not change. Percentage of more than minimum rate Family Allowance customers with private income Of the 911,283 families receiving more than the minimum rate in June 2000, 670,032 (or 73.5 per cent) were on income support payments while 241,251 (or 26.5 per cent) were low-income working families. The proportion of more than minimum rate customers with private income was 42.9 per cent at June 1999. There is no reason to consider that this would have changed radically in 1999-2000, since income test parameters did not change. Ratio of the average gross income of workforce Family Allowance recipients to the maximum rate of Newstart Allowance plus Family Allowance At June 2000, this ratio was 1.48, compared to 1.46 in March 1999. Average increase in gross income due to Family Allowance for recipient families The average increase at June 2000 was 17.8 per cent, compared to 17.9 per cent in June 1999. Effectiveness–targeting Percentage of customers receiving below maximum rate due to income testing At June 2000, 59.91 per cent received below maximum rate due to income testing, compared to 54.19 per cent in June 1999. Ratio of workforce Family Allowance recipients over ‘auto’ Family Allowance recipients At June 2000, this ratio was 0.36 compared to 0.38 last year. (Auto families are those receiving an income support payment, including low-income Parenting Payment families where one partner is in the workforce. These families are not subject to the Family Allowance income test, although their rate may be reduced if they receive Child Support.) Percentage of non-custodial parents contributing child support and the average amount of child support Refer to Group 1.3.

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Number and percentage of customers paid Maternity Immunisation Allowance on the basis of exemptions from the immunisation requirement – by medical and non-medical exemptions Of the 183,176 grants, only 1,420 (or 0.77 per cent) were paid on the basis of an exemption. Of these, 116 (or 0.06 per cent) of the total population) were on medical grounds. The remaining 1,304 (or 0.71 per cent) were on non-medical grounds, such as a religious objection to immunisation. Effectiveness–take-up/coverage Percentage of customers compared with the estimated eligible population Previous research indicates that around 79 per cent of families receive Family Allowance. This ratio was not recalculated for 1999-2000, as it will be affected by up-take of Family Allowance for older dependants after 1 October 1999 and by the tax reform measures. New measures of take-up will be developed for the post July 2000 family assistance regime. Proportion of eligible customers electing to receive Family Tax Payment as a cas h payment from Centrelink rather than the ATO ATO data for 1998-99 are not yet available. The ratio is unlikely to have changed much from the figure of 0.44 reported last year. Quantity Number of customers assisted Table 3: Number of customers assisted (as at the end of each financial year) Item 1999-2000 1998-99Family Allowance 1 743 567 1 735 762Family Tax Payment 866 901 839 286Double Orphan Pension 1 659 1 517Maternity Allowance* 209 885 222 780Maternity Immunisation Allowance 183 176 1 015Note: * For Maternity Allowance and Maternity Immunisation Allowance, the number of customers assisted is the number who received a payment during the financial year. The number of families receiving Family Allowance remained largely stable. However, from 1 October 1999, the payment was extended to cover a broader range of dependent young people aged 16-24, not receiving Youth Allowance. Previously, payment could only be made for secondary students over 16 until the end of the calendar year in which they turned 18. At 16 June 2000, 159,942 young people aged 16-24 attracted Family Allowance, compared to 103,068 in June 1999 and 106,035 in September 1999. The June 2000 total includes 2,498 full-time students over 21, who previously could not have attracted Family Allowance. Take-up of payment in this age group is expected to increase further in subsequent years. The proportion of Family Tax Payment recipients to more than minimum rate Family Allowance recipients increased slightly from 93.65 per cent to 95.13 per cent. The number of Maternity Immunisation Allowance customers increased by 179.5 per cent, as payments for fully immunised children began in July 1999 (that is, 18 months after the payment’s introduction on 1 January 1998). In 1998-99, the only payments made were for stillbirths and neo-natal deaths.

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Number of customers paid Rent Assistance At June 2000, 332,827 customers received Rent Assistance. Of these, 65,572 (or 19.7 per cent) were low-income working families, while the remainder were on income support payments.

Departmental Outputs

Cost Ratio of departmental items to administered items For every dollar spent on administered items under group 1.1 in 1999-2000, 5.2 cents were spent on departmental outputs.

Policy advice

Quality–customer satisfaction Ministers and Ministers’ offices are satisfied with the timeliness, length and quality of policy advice, briefing and replies to ministerial correspondence Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Quantity Number of items to Ministers Group 1.1 provided 481 ministerial submissions and other written advice and briefings, and completed 1,133 ministerial replies. Price $5,284,000.

Program management

Quality–assurance FaCS ensures that service providers meet terms and conditions of funding Centrelink continued to be the main service provider for family payments in 1999-2000. Its compliance with the terms and conditions of its funding was assessed according to the standards for payment delivery, (see Tables 4 and 5). The ATO and the Health Insurance Commission will play an active role in family payment delivery in 2000-01, as part of the Family Assistance Office. In 1999-2000, the terms and conditions of their funding required them to develop systems and operational links with Centrelink to facilitate effective customer service. Agencies had to work in partnership to complete initial data collection and publicity for the new programs. Through regular inter-agency meetings and other project management processes FaCS was satisfied that these steps were undertaken. The transfer of customers from the old family assistance structure to the new was successful. Service agreements that meet legislative, Government policy and departmental requirements are in place with all service providers Business agreements were developed with Centrelink, the ATO, and the Health Insurance Commission to implement family assistance tax reform measures.

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Quantity Number of service agreements under management - 3 Number of service providers under management – 1 Price $6,443,000.

Research and evaluation

Quality–assurance Research and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development Research and evaluation met the required standards and contributed to policy understanding and development. Quantity Major pieces of research and evaluation completed-3

• Preliminary survey of Family Tax Benefit and Child Care Benefit customers: used to develop an initial demographic profile of the customer base, including people's preferences for payment delivery method. This was a substantial project, requiring close work with the consultant on questionnaire design and data analysis. It was the main research task in the family payments area for 1999-2000.

• Development of a management information framework for Family Tax Benefit: this project reviewed the management information available on the older family payments and identified ways to improve data management under the new program. Key demographic and performance information items were developed for monitoring and analysis in 2000-01.

• Diverse Care Project: interim findings from a range of focus groups and community consultations identified a growing diversity of child-rearing practices, especially in non-nuclear family structures. These findings informed the development of the Statement of Care Pilot (see Outcome 1-Competitive tendering and contracting).

Price $1,160,000.

Service delivery

Quality–assurance Centrelink delivers services to the standards agreed with FaCS Centrelink met timeliness and accuracy targets for all payments over the year. See tables 4 and 5.

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Table 4: Timeliness of claim processing (percentage of claims paid within 28 days) Item Timeliness

(per cent) 1999-2000

Timeliness (per cent) 1998-99

Target (per cent)

Family Allowance 94 92 85Family Tax Payment 95 92 85Double Orphan Pension 91 na naMaternity Allowance 95 93 85Maternity Immunisation Allowance* See note below na naNote: Targets for payment delivery were not reviewed in 1999-2000, due to the ongoing joint Centrelink/FaCS review of performance information and standards. New standards will be specified in the 2000-01 Business Partnership Agreement with Centrelink.

• Separate timeliness data for Maternity Immunisation Allowance are not available. The claim for this allowance in normally lodged together with the customer’s Maternity Allowance claim and the timing of payment depends on when proof of immunisation is provided. This is normally done automatically through the Australian Childhood Immunisation Register, as long as the customer agrees.

Table 5: Accuracy of decision making (new claims)

Item Accuracy (per cent) 1999-2000

Accuracy (per cent) 1998-99

Target (per cent)

Family Allowance 93 97 95Family Tax Payment 99 99 95Double Orphan Pension 97 94 95Maternity Allowance 97 98 95Maternity Immunisation Allowance* 95 na naNote: * In 1998-99, all Maternity Immunisation Allowance payments were made with Maternity Allowance, as they related solely to stillbirths and neo-natal deaths. Payments for fully immunised children began from July 1999 so separate accuracy checks were undertaken this year.

Quality–customer rights and obligations Control of incorrect payment and fraud, measured by savings in administered outlays arising from compliance activities In 1999-2000, 126,462 Family Allowance reviews were completed. There were 33,580 variations downward resulting in fortnightly savings of $1,989,068. There were 336 upward variations resulting in fortnightly increases of $20,117. There were 51,824 debts totalling $49,468,453. Number of reviews and appeals Numbers of reviews and appeals relating to payments under Group 1.1 for 1999-2000 appear in Table 6. Numbers in parentheses show figures for 1998-99.

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Table 6: Review and appeal outcomes

Authorised Review Officers Social Security Appeals Tribunal

Administrative Appeals Tribunal

Finalised cases Finalised cases Finalised cases

Review Requests Unchanged Changed



FA (a) 5 933 (10 725)

4 381 69.48%

1 924 30.51%

1 328 (1 896)

889 68.49%

409 31.51%

256 (292)

187 68.25%

87 31.75%

FTP 55 (151)

52 76.47%

16 23.53%

14 (19)

13 72.22%

5 27.78%

5 (4)

4 57.14%

3 42.86%

DOP 14 (12)

9 69.23%

4 30.77%

6 (4)

5 62.5%

3 37.5%

0 (0)

0 0%

0 0%

MAT (b) 141 (209)

119 76.77%

36 23.23%

43 (45)

33 82.5%

7 17.5%

5 (4)

5 100%

0 0%

Notes: (a) Figures for FA include reviews relating to the former Additional Family Payment, which ceased to exist on 1 January 1996. (b) In 1999/00, reviews and appeals relating to Maternity Immunisation Allowance were recorded together with those for Maternity Allowance. They will be recorded separately in future years. There was a drop in the number of Authorised Review Officer requests across all payments, notably in the case of Family Allowance, where there was a reduction of 44.6 per cent. There has been no policy change that could account for this. However, the higher numbers in previous years were partly due to a January 1996 legislative change, which reduced the margin for error allowed for customers in estimating their income from 25 per cent to 10 per cent. It is reasonable to expect a decline in review requests, since the policy now is better understood by both Centrelink staff and customers. Similarly, the reduction of 63.6 per cent in Family Tax Payment requests reflects improved community awareness of this payment since its introduction in January 1997. The decline in family payment review requests is also consistent with a reduction of around 25 per cent in the total number of Authorised Review Officer reviews across all payment types. Despite the overall reduction, overpayments still accounted for most Family Allowance reviews. This year, around 76 per cent of Authorised Review Officer decisions related to debt recovery. Another 12 per cent related to arrears and backdating claims. Issues around arrears and the date of commencement of payment also accounted for about 43 per cent of Family Tax Payment reviews, compared to 47 per cent in 1998-99. The proportion of Family Tax Payment reviews relating to overpayments also dropped, from 47 per cent to 35 per cent. Decisions to reject claims accounted for 46 per cent of Double Orphan Pension reviews. Some 66.7 per cent of these rejections and 53.8 per cent of all reviews for this payment related to the definition of a double orphan child. With Maternity Allowance, rejected claims accounted for 70 per cent of reviews; 29 per cent of these were due to late lodgement of claims, reflecting the fact that customers must generally qualify for Family Allowance within 13 weeks of the child’s birth in order to qualify for Maternity Allowance, and must lodge their claim within 26 weeks of the child’s birth. The tax reform changes made on 1 July 2000 should reduce the number of reviews relating to arrears and claim lodgement periods. This is because the new Family Tax Benefit legislation will allow customers to claim arrears up until the end of the second

Attachment A 27


financial year after they become eligible. Adoptive parents will be able to qualify for Maternity Allowance if they qualify for the new Family Tax Benefit, Part A, within 13 weeks of the date the child is placed with them, as long as it is not more than 26 weeks old at the placement day. The general timeliness standard for Authorised Review Officer reviews is to finalise 75 per cent of review requests within 28 days. If the customer has no other income, the standard is to finalise 95 per cent of cases within 14 days. Few cases for this output group fall into this hardship category. The table below indicates the percentage of Authorised Review Officer cases finalised within 28 days for each payment type. Timeliness standards were maintained or improved across all payments. Table 7: Timeliness of Authorised Review Officer reviews (percentage processed within 28 days)

Payment 1999-2000 1998-99 Target Family Allowance (including Additional Family Payment) 79 76 75Family Tax Payment 81 80 75Double Orphan Pension 93 50 75Maternity Allowance* 89 80 75Note: * The Maternity Allowance performance level includes Maternity Immunisation Allowance cases. Price Centrelink $354,203,000 Other $14,416,000

Performance summary

Around 100 community organisations are contracted to provide services related to supporting and improving family relationships and parenting. During 1999-2000, around 110 000 clients received assistance under these services. Feedback from clients suggests these services provide a valued service which helps clients manage the issues facing them. New contracts were introduced for service providers under a quality improvement program. Under the contracts, 14 minimum standards are to be observed, specifying conditions relating to safety and service standards. Contracts were negotiated with organisations under the second round of the Men and Family Relationships Program. These services commenced and a tender for evaluation of the initiative is being undertaken. Consistent with the directions announced under the National Families Strategy and more recently under the Stronger Families and Communities Strategy, prevention and early intervention was a key focus for services during the year. A pilot program to distribute free vouchers for marriage education for marrying couples was introduced in Perth and Launceston. A relationship education kit also was created and now is being trialed in the Whyalla region, Perth and Launceston. The Good Beginnings home visiting program continued to show good progress for clients, and progress towards additional sites was made. During 1999-2000, the newly established Marriage and Family council met for the first time to provide the Government with advice on relationship issues. The Council

Attachment A 28


was involved extensively in developing the relationship education kit and provided advice on a number of other issues, including directions for further work. Activities aimed at reducing the level of child abuse continued during the year, with ongoing support for the activities of the National Association for the Prevention of Child Abuse and Neglect, and the ongoing work of the National Council for Prevention of Child Abuse. In 1999, the council conducted a highly successful program of awards to recognise those involved in preventing and reducing the incidence of child abuse. Activity in the family payments area focused on implementing tax reform measures. These will replace ten different forms of family assistance available from Centrelink or through the tax system, including Family Allowance and Family Tax Payment, with Family Tax Benefit, Parts A and B. This required completing the policy and legislative framework (including writing a new guide to the family assistance law) and finalising delivery arrangements with the Family Assistance Office agencies. A data collection mail out began in March 2000, with around 1.6 million packages sent to families eligible for the new payments after July 2000. Work also was completed on the design of the Family Adjustment Payment that the Minister for Family and Community Services first announced on 10 April 2000. This payment will allow the small number of families that may be adversely affected by the introduction of Family Tax Benefit, Part B to receive a lump sum transitional payment. Legislation also was passed to implement two measures improving the policy for Double Orphan Pension. The first extends Double Orphan Pension to cases where the young person’s only living parent is on remand for an offence that is punishable by imprisonment for life, or at least ten years. The second provides for the person caring for the orphan to receive an additional component where their Family Allowance rate is less than that paid for the child in their original family. Payment of the additional component will be backdated to 1 July 1998 for eligible carers. An important aspect of the tax reform package was anticipated on 1 October 1999, when the Government extended Family Allowance to cover a broad range of young people aged 16-24 who do not receive Youth Allowance. This includes a higher rate for those aged over 18. FaCS worked closely with Centrelink to ensure these measures were implemented on time. Various data sources were monitored to identify any issues relating to the existing family assistance programs. However, no major concerns were identified. The existing payments continue to be delivered in a timely manner and in accordance with policy requirements. Footnotes 1.The percentage of customers with positive outcomes and the number of customers assisted for Domestic Violence programs and other services for children were not reported against the indicator. In 1999-2000, the relevant appropriations were spread across several output groups and could not be separately identified. The indicator was modified for the 2000-01 PBS to allow complete reporting.

framework for assessing performance: outcome-oriented ... · although the commissioner of taxation...

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