<p>Australian Public Service Commission Annual Report 2006-07 Letter of transmittal The Honourable John Howard MP Prime Minister Parliament House CANBERRA ACT 2600</p><p>Dear Prime Minister Commensurate with section 44 of the Public Service Act 1999, I am pleased to present my annual report for the financial year ending 30 June 2007. Included within the Australian Public Service Commissioner’s report is the report of the Merit Protection Commissioner in accordance with the provisions of section 51 of the Public Service Act 1999. The Requirements for Annual Reports, approved by the Joint Committee of Public Accounts and Audit, require that a copy of these reports be laid before each House of Parliament on or before 31 October in the year in which the report is given. I am grateful to the staff of the Australian Public Service Commission for their dedication and high quality support through the year. I would also like to acknowledge all Australian Public Service agencies as our clients and stakeholders for their valuable support and feedback that continues to assist us in improving the services we offer. Yours sincerely</p><p>Lynelle Briggs October 2007 Guide to the report The Australian Public Service Commissioner’s Annual Report 2006–07 is provided in accordance with the provisions of section 44 of the Public Service Act 1999 (the Act). The report has been developed with the aim of transparent reporting under the Commission’s outcomeoutput structure. Part one: Overview The report Overview includes the Public Service Commissioner’s Review and an overview of the Commission’s role, responsibilities, outcomes, outputs and organisational structure. The Commissioner’s Review is an executive summary of the principal developments affecting the work of the Commission including highlights of some of the significant achievements throughout 2006–07. Part two: Performance review The Performance Review provides a more detailed discussion of the Commission’s performance against each output. The price and performance information in part two covers the Commission as a whole. To ensure comprehensive reporting against the output structure the performance review pricing includes the work of the Merit Protection Commissioner. Part three: Management and accountability The Management and Accountability component of the annual report provides an overview of the Commission’s approach to corporate governance and the management of resources within the agency. Part four: Annual Report of the Merit Protection Commissioner In accordance with the provisions of section 51 of the Public Service Act 1999, part four of the annual report contains the Merit Protection Commissioner’s report on his statutory role and responsibilities. Appendices The appendices to the annual report provide detailed information tables on staffing and other matters relevant to the Commission’s business, including Financial Statements at Appendix B and a statement as required under subsection 8 (1) of the Freedom of Information Act 1982 at Appendix E. Any enquiries about the annual report or additional information about the Commission should be directed to: Steve Tomlin Corporate Group Australian Public Service Commission 16 Furzer St PHILLIP ACT 2606 tel: (02) 6202 3526 fax: (02) 6272 3567 Figures and tables Figure 1: Commission organisational chart at 30 June 2007 Figure 2: Corporate governance and performance management framework Figure 3: Commission income 2002–03 to 2006–07</p><p>Table 1: Performance review: summary of performance 2006–07 Table 2: Performance information: output 1.1 advice and support to the Minister, Executive and agency heads Table 3: Main categories of employment policy Adviceline calls, 2004–07 Table 4: Performance information: output 1.2 employment service Table 5: Comparative number of notices lodged over last five financial years Table 6: Number of SES selection exercises endorsed and number of employment opportunities filled Table 7: Performance information: output 1.3 international assistance and organisations Table 8: Performance information: output 1.4 merit protection and other services Table 9: Performance information: output 2.1 leadership services Table 10: Attendance at SES breakfast seminar series, 2002–07 Table 11: Attendance at Leadership Development Network events, 2003–07 Table 12: Performance information: output 2.2 programme delivery Table 13: Attendance at Senior Executive Orientation programme, 2003–07 Table 14: Consultancy services: programmes most in demand Table 15: Performance information: output 2.3 national/international programmes Table 16: Performance information: output 3.1 Indigenous employment Table 17: Drawing Together art competition: award categories, sponsors and winning artists Table 18: Performance information: output 3.2 promote better practice Table 19: Performance information: output 3.3 statistical/information services Table 20: Performance information: output 3.4 research and evaluation Table 21: Commission staff numbers, 30 June 2001–07 Table 22: Participation rates in training and development activities, 2000–07 Table 23: Salary ranges, 30 June 2007 Table 24: Performance pay, 2006–07 Table 25: Income sources, 2002–03 to 2005–06 Table 26: Operating result, 2002–03 to 2005–06 Table 27: Total planned budget, 2007–08 Table 28: Expenditure on consultancy contracts Table 29: Representation of Equal Employment Opportunity (EEO) groups as a percentage of staff, 30 June 2007 Table M1: Review of actions—workload completed and timelines, 1 July 2006–30 June 2007 Table M1.1: Comparison of timeliness in handling reviews, 2005–07 Table M2: Fee for service function—workload and work completed, 1 July 2006 to 30 June 2007 Table M3: Review of promotion decisions, by agency, 1 July 2006–30 June 2007 Figure M1: Cases reviewed by subject Table M4: Reviews completed, by agency 1 July 2006–30 June 2007 Table M5: Independent Selection Advisory Committees convened, 1 July 2006–30 June 2007 Table M6: Employment related services, 1 July 2006–30 June 2007 Table M7: Independent Selection Advisory Panels convened, 1 July 2006–30 June 2007 Table 30: Resources for the outcome Table 31: Details of payments to media advertising organisations greater than $10,300 Table 32: Ongoing and non-ongoing staff, 30 June 2007 Table 33: Ongoing and non-ongoing staff, 30 June 2006 Table 34: Senior executives, 30 June 2007 Table 35: Senior executives, 30 June 2006 Table 36: Occupational groups by location, 30 June 2007 Table 37: Occupational groups by location, 30 June 2006 Table 38: Representation of EEO groups within salary levels, 30 June 2007 Table 39: Representation of EEO groups within salary levels, 30 June 2006 Table 40: Advertised SES employment opportunities: filling method by band, 2006–07 Table 41: Profile of the SES by band and gender, 30 June 2007 Table 42: Comparison of incoming and outgoing SES, 2005–07 Table 43: Filling of SES employment opportunities advertised in the Commonwealth of Australia Gazette, 2004–07 Table 44: SES retirements under section 37, 2006–07 Table 45: SES separations by type, 2006–07 Overview Public Service Commissioner's review In my third year as the Australian Public Service Commissioner I am pleased to report on the progress the Commission has made towards the outcomes the Australian Government has set in developing and supporting a confident, high quality, values-based and sustainable Australian Public Service. The Commission’s Corporate Plan 2006–07 drew attention to some of the challenges facing Australia as identified in the Prime Minister’s tenth anniversary speech in early 2006: national security and global engagement; economic modernisation and reform in Australia; ensuring government service meet the needs of a changing society and an ageing population; ensuring that our national resources are placed on a sustainable basis for future generations; and maintaining great national unity, social cohesion and our egalitarian spirit. It is the Commission’s role to help the Australian Public Service (APS) deal with new policy and workforce challenges and to support APS agencies to deliver the priorities set for them by the Australian Government. The APS has a proud reputation as one of the leading public service sectors in the world and the Commission has an important job in helping to maintain that reputation. The Commission’s top priorities for 2006–07 were: implementing the APS Employment and Capability Strategy for Aboriginal and Torres Strait Islander Employees building the capability of the APS through implementing a new suite of leadership programmes for the Senior Executive Service (SES) and Executive Level (EL) staff and establishing new programmes for APS 1–6 staff finalising new Public Service Act legislation and supporting its implementation to ensure a contemporary employment framework for the APS generating active dialogue on and a supportive environment for, the next stages of public sector reform and performance improvement promoting a leadership culture and a professional senior executive cadre in the APS. The Commission continues to work closely with APS agencies to ensure that our work is timely, comprehensive and responsive to their needs. In some cases this has involved: establishing advisory and reference groups to guide progress; holding focus groups to determine needs; taking an active role in cross-jurisdictional committees; and entering into dialogue with agencies—particularly other central agencies—to tease out problems and develop solutions to whole-of-government issues. We have aimed to strengthen our relationships with other central agencies during the 2006–07 year and will continue to focus on working cooperatively across Government in 2007–08. We have sought to be responsive to the key challenges for the APS identified in the State of the Service Report 2005–06 and have re-focused our work to help agencies meet these challenges and other emerging needs. During the year we have taken a stronger interest in issues such as governance, regulatory reform and citizen engagement in order to support agencies build their performance and to develop the professionalism of the public service. We have also made substantial progress with a body of work designed to help the APS become an employer of choice and to deal with its challenges around attraction, recruitment and retention of skilled staff. This work will continue in 2007–08. Our achievements The employment of Aboriginal and Torres Strait Islander people in the APS provides an important contribution to achieving government policy development, programme and service delivery. It also contributes towards achievement of social and economic equity for Indigenous Australians. During 2006–07 the Commission continued to foster Aboriginal and Torres Strait Islander employment in both mainstream and Indigenous-specific areas in the APS through strategies to attract, recruit, develop and retain Indigenous employees. This year marked the 40th anniversary of the 1967 referendum, a significant occasion largely remembered as a vote to end discrimination against Aboriginal and Torres Strait Islander Australians. To celebrate this landmark event the Commission partnered with the National Archives of Australia, the National Museum of Australia and the Department of Families, Community Services and Indigenous Affairs to stage Drawing Together—an art exhibition and art competition exploring reconciliation and promoting the employment of Aboriginal and Torres Strait Islander people in the APS. The Commission increased significantly its leadership programme effort in 2006–07 in support of the Management Advisory Committee’s One APS–One SES statement. The capability of the leadership group has an impact on all aspects of the APS, including our ability to achieve business goals, to work in a whole-of-government context and to engage with and deliver services to, the Australian community. During the year the Commission delivered new, highly successful, residential leadership programmes for SES employees at each level, including programmes for those recently promoted to the SES and for Band 1s with more than three years’ experience. The residential programmes are complemented by a series of targeted capability building and networking events for SES employees to come together to discuss matters of APS-wide significance. In May 2007 the Commission completed a new national leadership learning and development strategy for the APS. The strategy sets out an integrated approach to building capability and supporting excellence in the APS. As required under section 44(2) of the Public Service Act 1999, the Commission evaluated APS performance through the annual State of the Service report to Parliament. The approach to the preparation of the report focused on the identification of contemporary issues facing the APS while continuing to evaluate the extent to which agencies incorporate and uphold the APS Values (as required by section 41(1)(a) of the Public Service Act 1999). The State of the Service Report 2005–06 was structured around three key themes: employee engagement; organisational effectiveness; and the effectiveness of the APS in working with the community. The report’s value as a vehicle for improving public administration within Australia was acknowledged this year by the United Nations (UN). The Commission was awarded the UN Public Service Award in the category of ‘Improving transparency, accountability and responsiveness in the Public Service’. The UN commended the Commission on the publication and emphasised that this ‘outstanding achievement demonstrated excellence in serving the public interest’ and ‘should be an inspiration and encouragement for others working for the public service’. The APS is facing a range of immediate and pressing challenges. In managing these it is important that the APS makes time to contemplate future reform directions. In 2006–07, the Commission’s research and evaluation programme was particularly focused on supporting the Commission priority of generating active dialogue on and a supportive environment for, the next stages of public sector reform and performance improvement. Good progress has been made with papers and guidance material ready for delivery in the second half of 2007. A component of this work is a guide on building better governance, prepared in partnership with the Department of Finance and Administration. The guide includes a series of case studies highlighting the different approaches being taken by APS agencies. Emerging themes from the case studies are the characteristics essential to good governance: strong leadership, culture and communication; appropriate governance committee structures; clear accountability mechanisms; comprehensive risk management, compliance and assurance systems; strategic planning; performance monitoring and evaluation; and flexible and evolving principles-based systems. The Commission continued to support agencies moving into the APS following Uhrig assessments. Undergoing a machinery of government change can be challenging as agencies are required to consider an enormous number of issues and deal with wide-ranging matters, which can be complex and time-consuming. In January 2007, the Commission released a good practice guide, Implementing Machinery of Government Changes, developed jointly by the Department of Finance and Administration and the Department of Employment and Workplace Relations, in consultation with the Department of the Prime Minister and Cabinet and the National Archives of Australia. The guide provides practical guidance to deal with these challenges. This year the Commission also finalised development of a package of reforms to improve the operation of the Public Service Act in conjunction with APS agencies. The Commission continues to contribute towards whole-of-government public sector reform initiatives in the Asia–Pacific region. Strengthening our contribution this year was the deployment of two non- ongoing SES officers to Port Moresby to provide capacity building assistance to Papua New Guinea’s Department of Personnel Management. The Commission also works directly with three central Indonesian civil service agencies on a range of public sector reform and capacity building initiatives, through the deployment of an APS employee to Jakarta. In October 2006 the Australian Government hosted the biennial conference of the Commonwealth Association for Public Administration and Management (CAPAM) and the inaugural Commonwealth Ministers’ Forum on Public Sector Development in Sydney. The Commission made a strong contribution to the organisation of the conference and the forum in partnership with the Commonwealth Secretariat. Some of the key messages to emerge from the conference were: act local and draw from a global menu have a line of sight with outcomes work in partnerships and cross-government collaboration to deliver better services to citizens. The aim of the Ministers’ forum was to advance public sector reform and development across the Commonwealth and maximise ministerial interaction to share ideas on critical issues facing governments. The forum demonstrated that Commonwealth countries can come together to develop concrete measures that support and modernise democratic governance, leadership capability and improvements in access to government services. The workforce challenges that are confronting the APS are well documented. Many of the challenges centre around the demographics of an ageing workforce, combined with the changing nature of APS work and the tightening labour market. During the year the Commission started a package of work aimed at increasing the profile of the APS in the labour market encouraging people to apply for jobs and build a career in the APS attracting particular skill sets or groups to pursue APS careers improving APS management of the recruitment process, in order to remain competitive in the labour market retaining staff in the APS to build future workforce capability. This work will continue into 2007–08. The Commission continued its support of the Management Advisory Committee (MAC). During the year the Commission hosted and participated in a number of MAC projects, launching two reports providing guidance on the Employment of people with disability in the APS and Reducing the Red Tape in the APS. I am proud of the Commission’s achievements in 2006–07 and our increasing capacity to respond not only to our identified priorities but also to the needs of the APS as they have emerged through the year. Governance and culture Through sustained effort in our revenue raising areas and careful management through the year, the Commission achieved a surplus of $2.3 million. This means that the Commission can replenish its cash reserves, depleted as a result of having to fund the move of our national office to new premises far sooner than anticipated at the start of the year. However, this is dependant upon the outcome of an examination of our investment needs through 2007–08. The Commission continues to face critical IT challenges. IT support costs continue to rise and further investment is needed to keep up to date with improvements in technology so that we can deliver timely, high quality services to agencies. Our contract for desktop and other support services with the Volante Group comes to an end in June 2009 and cannot be renewed. Work will start this year on considering sourcing arrangements post-2009 and the tendering costs are likely to be significant. The Commission moved its Canberra office to new premises in February 2007 providing a more attractive, environmentally sustainable, energy efficient and professional workplace for staff. The move was delivered with minimal disruption to the Commission’s services. For the first time in many years the APS has a dedicated venue for the delivery of training programmes and events. Participants, trainers and Commission staff now benefit from the facility’s tailored design features, state-of-the-art technology and co-location within the Commission’s new national office headquarters. Positive feedback has been provided by all relevant parties about the facility and its permanent capacity to promote the diverse range of Commission services, publications, products and best practice guides for the APS. Early in 2006–07 the Commission refreshed its Australian Workplace Agreement (AWA) templates and took the opportunity to make offers to all Executive Level 1 (EL1) employees as a group. Take up has been high with 53 per cent of Commission EL1s covered by an AWA. All new EL1s are routinely offered AWAs on engagement, promotion or movement from another agency. The Commission conducted a staff survey in March and April 2007. Overall the results were very good with a response rate of 83 per cent. Between 80–90 per cent of Commission staff reported that they are: happy with their job; feel the Commission is a satisfying place to work; and agree that the Commission is an organisation of which they are proud. This survey is the most positive I have been involved in and I am pleased that Commission staff feel so positive about their work and the agency. The Commission fosters an inclusive, values-based culture through a variety of approaches. Of note this year is the development and release of the Commission’s Reconciliation Action Plan 2007–2010. The plan provides specific, tangible actions that will be implemented as a way of contributing to the practical process of reconciliation and helping to improve social and economic outcomes for Aboriginal and Torres Strait Islander people. Further information about the Commission’s Reconciliation Action Plan 2007–2010 can be found on our website. In March 2007 the Commission’s agency mission statement was revised and simplified. Our new mission statement is ‘to support a high-performing Australian Public Service’. Outlook The Commission’s Corporate Plan 2007–08 identifies four key priorities for the coming year: stimulating debate about future directions for the public sector modernising APS employment improving the capability and performance of the APS improving the way we do business in the Commission. The Commission will focus its research programme on the critical challenges facing the APS and encourage innovative approaches to public sector administration. We will continue to review the public sector employment framework with an emphasis on streamlining recruitment processes and we will promote and share best practice in recruitment and retention strategies. We will support improvements in organisational capability, including governance, strategic capability and performance and continue to ensure that high quality development programmes are available to APS employees, particularly leadership programmes. The Commission will continue to review its own performance and look for ways to improve delivery of our services. Finally, 2007–08 is an election year. We will support agencies and their staff through this period, including with the provision of seminars conducted in partnership with the Departments of the Prime Minister and Cabinet and Finance and Administration on the caretaker conventions and appropriate conduct. Lynelle Briggs October 2007 The Australian Public Service Commission (the Commission) is a central agency within the Department of the Prime Minister and Cabinet portfolio. The Commission supports two statutory office holders, the Public Service Commissioner—who is also agency head—and the Merit Protection Commissioner. Our mission is to promote a high performing Australian Public Service (APS). The statutory responsibilities that support our mission are outlined in the Public Service Act 1999 (the Act) and include: evaluating the extent to which agencies incorporate and uphold the APS Values evaluating the adequacy of systems and procedures in agencies for ensuring compliance with the Code of Conduct promoting the APS Values and the Code of Conduct developing, promoting, reviewing and evaluating APS employment policies and practices facilitating continuous improvement in people management throughout the APS coordinating and support APS-wide training and career development contributing to and fostering, leadership in the APS providing advice and assistance on public service matters to agencies on request providing external review of actions by the Merit Protection Commissioner. The Commission works to achieve the outcomes specified by the Government to support a confident, high quality, values based and sustainable Australian Public Service through three output groups: Output 1: APS policy and employment services Output 2: Development programmes Output 3: Better practice and evaluation. The Commission’s activities are funded through a combination of budget appropriation and revenue generated through the sale of leadership, learning and development services with much of this revenue earned in an open market where agencies have choices about where they source the depth and breadth of services required. In 2006–07 the Commission received $20.6 million in appropriation funding, with the balance of its income ($19.2 million) coming from nonappropriated sources. As outlined in the Act the Public Service Commissioner provides the necessary staff to assist the Merit Protection Commissioner perform his prescribed functions. The arrangements for providing staff to the Merit Protection Commissioner have been established through a memorandum of understanding. Commission structure The Commission is led by a three-person executive consisting of the Public Service Commissioner, the Deputy Public Service Commissioner and the Merit Protection Commissioner. The functions of the Commission and the Commission’s Executive are supported by six groups, each led by a Group Manager. The Commission’s organisational chart, with the names of senior staff as at 30 June 2007, is at Figure 1. Figure 1: Commission organisational chart at 30 June 2007</p><p>Evaluation</p><p>The Evaluation Group evaluates and provides information on APS performance through the annual State of the Service Report to Parliament and through more specific evaluation and research projects. It maintains the APS employment database, monitors trends and publishes key workforce statistics. Brisbane office</p><p>The Brisbane office represents the Commission in Queensland, helping agencies with people management, including learning and development, promoting better practice, staff selection and review of employment-related actions. Sydney office</p><p>The Sydney office represents the Commission in New South Wales, helping agencies with people management, including learning and development, promoting better practice, staff selection and review of employment-related actions. Canberra office</p><p>The ervice Commissioner in November 2004. The Commissioner is a statutory position responsible for promoting and evaluating the implementation of the Australian Public Service Values and Code of Conduct, and for reporting on the health of the APS. She also has policy responsibilities relating to public administration and people management, particularly the promotion of leadership skills. Melbourne office</p><p>The Melbourne office represents the Commission in Victoria and Tasmania, helping agencies with people management, including learning and development, promoting better practice, staff selection and review of employment-related actions. Adelaide office</p><p>The Adelaide office represents the Commission in South Australia and the Northern Territory, helping agencies with people management, including learning and development, promoting better practice, staff selection and review of employment-related actions. Perth office</p><p>The Perth office represents the Commission in Western Australia, helping agencies with people management, including learning and development, promoting better practice, staff selection and review of employment-related actions. Key pages Regional services</p><p>The Regional Services Group represents the Commission throughout Australia, helping agencies with people management, including learning and development, promoting better practice, staff selection and review of employment-related actions. Policy</p><p>The Policy Group provides advice to government and agencies on the policy and legislative aspects of public administration, people management and employment frameworks within the APS Values and Code of Conduct. It is also responsible for international matters. Corporate</p><p>The Corporate Group provides strategic management, information, communications, financial, library, legal and parliamentary support services to assist the Commission in achieving its mission of supporting a high-performing APS. It also manages production of the Public Service Gazette. Programmes</p><p>The Programmes Group builds the capability of the APS by providing a wide range of leadership, learning and development activities for all levels of APS staff including senior executives. Merit Protection Commissioner</p><p>Boris Budak has been Acting as Merit Protection Commissioner since May 2007 Deputy Public Service Commissioner Ms Lynne Tacy became Deputy Public Service Commissioner October 2000. Public Service Commissioner</p><p>Lynelle Briggs assumed the role of Public Service Commissioner in November 2004. The Commissioner is a statutory position responsible for promoting and evaluating the implementation of the Australian Public Service Values and Code of Conduct, and for reporting on the health of the APS. She also has policy responsibilities relating to public administration and people management, particularly the promotion of leadership skills. Better Practice</p><p>The Better Practice Group contributes to improved APS performance through consideration of the challenges facing the APS both within Australia and the wider international public service sectors. The group builds the sustainability and capability of the APS by showcasing innovative and effective best practice and strategic people management with top priorities in 2006-07 including: progressing Aboriginal and Torres Strait Islander employment in the APS; promoting techniques for fostering employment of people with disability; and development of a range of practical and relevant tools for SES managers to assist broader business and workforce planning responsibilities. </p><p>About Figure 1 For more information on the Executive, Groups and Offices within the Commission use your mouse to explore the interactive chart. Commission reports and publications The Commission issues a wide range of APS leadership, learning and development information in a variety of formats each year. Commission publications and circulars, as well as selected speeches given by the Public Service Commissioner and the Merit Protection Commissioner, are available on the Commission’s web site. Commission locations The Commission’s national office is in Canberra and it has regional offices in Sydney, Melbourne, Brisbane, Adelaide and Perth. APS agencies in the Northern Territory and Tasmania are served from the Adelaide and Melbourne offices respectively. Office locations and contact details are: Australian Capital Territory Levels 5 and 6 16 Furzer Street PHILLIP ACT 2606 T: 02 6202 3500 F: 02 6202 3566 New South Wales Level 16 447 Kent Street SYDNEY NSW 2000 T: 02 9286 2400 F: 02 9264 8379 Victoria Level 6 303 Collins Street MELBOURNE VIC 3000 T: 03 8610 1522 F: 03 8610 1594 Queensland Level 11 300 Anne Street BRISBANE QLD 4000 T: 07 3004 0777 F: 07 3004 0700 Western Australia Level 1 St Georges Square 225 St Georges Terrace PERTH WA 6000 T: 08 9226 1977 F: 08 9226 5977 South Australia Level 4 Blackburn House 199 Grenfell Street ADELAIDE SA 5000 T: 08 8224 0955 F: 08 8223 5866 Performance review Summary of performance Table 1: Summary of performance 2006–07 Budget Output Activity Quantity Quality outcome 1.0 APS policy and employment services 1.1 $2.414m Advice and support to Minister, Executive and Agency Heads 1.2 $6.430m Employment services 1.3 $2.459m International assistance and organisations 1.4 $2.930m Merit protection and other services</p><p>2.0 Development programmes 2.1 $5.046m Leadership services 2.2 $8.217m Programme delivery 2.3 $2.467m National / international programmes</p><p>3.0 Better practice and evaluation 3.1 $4.494m Indigenous employment 3.2 $1.982m Promote better practice 3.3 $1.246m Statistical / information services 3.4 $2.078m Research and evaluation</p><p>Key Not Over / Partly / mostly Achieve Exceeded achieved underestimated achieved d APS policy and employment services Output 1 is drawn from the statutory role of the Public Service Commissioner (the Commissioner) outlined within the Public Service Act 1999 (the Act). In particular, the Commissioner provides advice to Government and agency heads on Australian Public Service (APS) employment policy; conducts employment-related services with a focus on the Senior Executive Service (SES) and staff selection; and undertakes independent reviews of APS actions. The output also relates to the Commission’s work in increasing the knowledge, skills and capability of identified Asia–Pacific public sector managers. Achievements The achievements under Output 1 this year include: completed a review of the Act for Government amended Public Service Regulation 2.1 dealing with disclosure of information by APS employees revised policies on the requirement for SES and other senior staff to declare their personal financial and other interest to give greater emphasis on relevance, timeliness and respect for privacy amended guidelines to deal more explicitly with the issue of bribery and the requirement for APS employees to report any instances of bribery that they observe in the course of their employment, particularly when working overseas assisted several new public service agencies to understand their responsibilities under the Act promoted and released good practice guides including: o Respect: promoting a culture free from harassment and bullying in the APS o Implementing Machinery of Government Changes: a good practice guide progressed the development of guidance about encouraging better practice approaches to governance in APS agencies facilitated and coordinated Australian APS agency work placements for Pacific scholarship participants to the Australia and New Zealand School of Government delivered the Pacific Public Sector Leadership Programme in Fiji and Samoa to delegates from 11 Pacific countries developed and initiated Pacific human resource managers network, including hosting the inaugural conference delivered a joint two day good practice workshop on public sector reform in partnership with the Indonesian Government delivered a new online lodgement process and public search system for the Public Service Gazette (the Gazette) in July 2006 re-developed the Gazette into an interactive site APSjobs.gov.au ready for pilot testing in July 2007. Price for output 1 The total price for Output 1 in 2006–07 was $14.233 million. This is $1.013 million higher than the estimated price of $13.220 million published in the Portfolio Budget Statements 2006–07. Advice and support to Minister, Executive and agency heads The Public Service Commissioner’s (the Commissioner) role involves providing advice and reporting to the Minister on matters relating to the APS as well as advising and assisting agency heads on public service matters. The Australian Public Service Commission (Commission) provides support and advice to the Executive to develop, promote, review and evaluate APS employment policies and practices. Table 2: Performance information - Output 1.1 Advice and support to Minister, Executive and agency heads Target Result Quantity 1. Number of items to ministers: Overestimated. 17 responses to ministerial responses to ministerial correspondence—estimate correspondence. 20 </p><p>Overestimated. 22 new question time question time briefs—estimate 23 briefs. Underestimated. 65 ministerial requests for ministerial requests for briefings—estimate briefings. 63 </p><p>2. Number of reports and responses to requests for information and advice: Underestimated. 12 responses to responses to correspondence—estimate 31 correspondence. Overestimated. 2834 enquiries received. Commission Adviceline enquiries—estimate 3200 </p><p>Achieved. 6 circulars; 12 publications reports, circulars and publications— estimate 18 </p><p>Overestimated. 115 advice and support to regional senior staff— estimate 132 </p><p>Quality Achieved. 100% of rated briefs at a 1. Percentage of items rated satisfactory or satisfactory or higher standard. higher in terms of relevance, quality and timeliness – target is 100%. </p><p>Achieved. Agency feedback continues to 2. Agencies satisfied with quality of advice. indicate satisfaction with the advice provided.</p><p>Estimated price: $2.210 million Actual: $2.414 million</p><p>^ For completeness and effectiveness of reporting of 'items to Ministers', all areas within the Commission are represented in this table. Advice and support to the Minister During 2006–07 the Commission continued to provide high quality support and advice to the Minister. This included 17 responses to ministerial correspondence, 22 new question time briefs and 65 ministerial briefings. To measure the quality and timeliness of advice, the Minister is provided with the opportunity to assess briefs against a scale of one to five, with ‘five’ being ‘excellent’ and ‘one’ being ’poor’. In the first half of 2006–07, all briefs assessed by the Minister received a rating of satisfactory or higher. Soon after being appointed Minister Assisting the Prime Minister for the Public Service in January 2007, the Hon. Joe Hockey MP, advised that this formal assessment process was no longer necessary. Review of the Public Service Act 1999 and subordinate legislation In August 2005, the then Minister Assisting the Prime Minister for the Public Service, the Hon. Kevin Andrews MP, agreed that the Commission commence a review of the Act and subordinate legislation to ensure that the legislative framework meets the future needs of the APS. Work commenced on the review of the Act in 2005–06 and continued during the current financial year. Following extensive consultations with Secretaries and other agency heads, a range of largely pragmatic improvements to the current framework were identified. Given the Act is currently operating effectively, the Government decided in October 2006 to defer the review until 2008 and focus on a range of other priority matters. Disclosure of information The 2005–06 annual report foreshadowed an amendment to the Public Service Regulations 1999, dealing with the obligations of APS employees not to disclose information received or communicated in confidence. The revised Public Service Regulation 2.1 came into effect from 15 July 2006 and brings the law regulating disclosure of information by APS employees in line with community expectations and addresses the matters raised by the Federal Court decision in Bennett v The President, Human Rights and Equal Opportunity Commission [2003] FCA 143. Further information on the changes can be found on the Commission’s website at http://www.apsc.gov.au/circulars/circular063.htm Provide advice and support services to the Executive Advice and support to members of the Commission’s Executive includes research on public sector matters and potential reforms, the preparation of briefs, correspondence and speech writing services. Speeches and presentations by members of the Commission’s Executive are important opportunities for engagement with agencies and external stakeholders. They enable the Commission’s Executive and staff to champion public service issues, to stimulate debate within the APS, as well as externally and to assess the Commission’s research and development work against international practice and academic study. The Commissioner made many presentations during 2006–07, including 11 major speeches, one presentation to the senior staff of Comcover and eight presentations to multiagency forums. Speeches delivered during 2006–07 included: The context and challenges of policy advising, address to ANZSOG Executive Master in Public Administration Course, 12 June 2007 Drawing Together—an art competition exploring reconciliation and promoting the employment of Aboriginal and Torres Strait Islander people in the Australian Public Service’, public launch speech, 9 March 2007 Celebration of the 40th anniversary of the lifting of the marriage bar, launch speech, 20 November 2006 Organisational reinvention—how can we keep up in a climate of rapid change and compliance?, CPA Congress on ‘Agility in the face of change’, 17 November 2006 Looking to the future—directions in public sector reform, Crawford School Alumni, 8 November 2006 Fashions and fads in public sector reform, CAPAM Biennial Conference, 24 October 2006 Securing the Australian Public Service’s ICT workforce, Australian Government Information Office Better Practice Seminar on ‘ICT Skills in the APS—buying in a sellers’ market’, 27 September 2006 Building the reputation of the Australian Public Service, Comcover’s 2006 Senior Executive Forum on ‘When our Risks Become Public: the challenging nature of reputation risk management’, 31 August 2006 Employment of people with disability in the APS, launch of the sixth MAC Report, 30 August 2006 Responding to demographic change in the Australian Public Service, 2006 Australian Social and Economic Policy Lecture Series, Australian National University, 22 August 2006 The Deputy Public Service Commissioner made 12 speeches and 19 other presentations, including a speech to over 700 APS graduates at the annual A Taste of Government seminar. The Merit Protection Commissioner made 22 speeches during 2006–07, including: Making a Values-based public service a reality, Ethical Leadership and Governance in the Public Sector conference, 9 May 2007 Why people and performance matter: the challenge for the Australian Public Service, presentation to Australian National University students, 11 April 2007 The Australian reform experience, seminar on the modernisation of the Public Service, Noumea, New Caledonia, 18 August 2006. Advice and support to agency heads The Commission plays an important role in providing advice to agency heads on matters related to APS policy and legislation. This includes advice on complex matters arising in their agency which relate to employment and Code of Conduct issues and, on occasions, providing a representative on agency governance committees. The Deputy Public Service Commissioner continues to support agency heads in her role as member of the Australian Taxation Office Integrity Advisory Committee and the Department of Immigration and Citizenship Values and Standards Committee. Building better governance The Commission is responsible for fostering leadership in the APS and a central responsibility of APS leaders is to ensure that sound governance policies and practices are instilled in their agencies. Over the past few years there has been growing interest in governance arrangements largely because of the recent inquiries and reports which have highlighted governance shortcomings in key private and public sector organisations. Encouraging and supporting good governance in the Australian public sector is a key contemporary government challenge. Common themes about characteristics essential to successfully build better governance have emerged from a series of agency case studies being coordinated by the Commission. These themes include: strong leadership, culture and communication; appropriate governance committee structures; clear accountability mechanisms; working effectively across organisational boundaries; comprehensive risk management, compliance and assurance systems; strategic planning; performance monitoring and evaluation; and flexible and evolving principles-based systems. The Commission has used this work to develop a publication on building better governance. The publication is expected to be released in October 2007. Implementation of the Uhrig Review Throughout 2006–07 the Commission continued to work in partnership with agencies moving into the APS as a result of the implementation of recommendations made by the Uhrig Review. The Commission met several times with agencies such as the Australian Pesticides and Veterinary Medicines Authority, the Private Health Insurance Ombudsman and the Department of Employment and Workplace Relations (regarding the Office of the Workplace Ombudsman and Workplace Authority) providing advice as they moved through the transition. Services provided included: advice on management of the change, including employment options and flexibilities help with preparing instructions to those drafting legislation on transitional provisions advice on the APS Values and Code of Conduct, the APS whistleblowing provisions and review of actions advice on new human resource policies and procedures resulting from Public Service Act coverage information sessions on recruitment and selection procedures for SES and non-SES staff. Implementing machinery of government changes In partnership with the Department of Finance and Administration and the Department of Employment and Workplace Relations, the Commission completed the development of a good practice guide, Implementing machinery of government changes, in January 2007. The Department of the Prime Minister and Cabinet and the National Archives of Australia were also consulted. The guide was initiated by the Commissioner in response to the needs of Portfolio Secretaries. The guide provides practical information to assist APS agencies implement machinery of government (MOG) changes and includes: an overview of the MOG process in the APS; principles and approaches for planning and implementing MOG changes; guidance on both financial and people management; and advice on managing physical relocations, records and taxation. The guide was released online on 30 January 2007 and distributed to all APS agency heads and SES in February 2007. A copy of the guide can be accessed through the Commission's website at: www.apsc.gov.au/publications07/machineryofgovernment.htm SES virtual team A need for greater focus and better coordinated action in supporting the SES was identified during the year as a key priority, consistent with the Commission’s focus on the SES expressed in the corporate plan as promoting a leadership culture and a professional senior executive cadre in the APS. Building on the theme One SES—One APS, senior staff responsible for SES-related activities across the Commission formed the SES virtual team. By June 2007, the team had overseen the drafting of a range of discussion papers, developing an approach to obtain views of the SES group on their needs and piloting a new e-newsletter for SES staff. By early 2007–08, the SES component of the Commission's website will be upgraded to improve its usefulness and accessibility of information to SES employees. Guide to official conduct In consultation with key stakeholder agencies, the Commission reviewed Chapters 10 (Gifts and Benefits) and 14 (Working overseas) of A guide to official conduct for APS employees and agency heads (the guide). These chapters were subsequently amended to clarify APS employees’ obligations in relation to receiving or offering bribes and of reporting behaviour of other employees they believe may amount to a breach of the Code of Conduct, including the bribery of foreign officials. The guide reinforces the requirement under the Act that APS employees observe the highest standards of ethical behaviour. Amendments to the guide followed recommendations made by the OECD Working Group on corruption in January 2006 in its report on Australia’s application of the OECD Convention on Combating Bribery of Foreign Public Officials. Revised policy guidelines on declarations of personal interests The Commission undertook a review of the requirement for SES and other senior staff to annually declare their personal financials and any other items of interests to the head of their agency. The purpose of this policy is to help identify and manage any actual or potential conflicts between the personal interests of senior decision makers and their respective work responsibilities. The review, which was undertaken in consultation with Portfolio Secretaries, reaffirmed the importance of declaring personal interests. It has also resulted in sharpening the focus of declarations policy with an emphasis on: identifying those personal interests that are directly relevant to the employee's work responsibilities; the importance of updating declarations on an ongoing basis as personal and work circumstances change; and the need to consider and apply the declarations policy to non-SES staff in sensitive positions. The revised guidelines were released in June 2007. Employment Policy Adviceline and advice to regional senior staff The Commission’s Employment Policy Adviceline (the Adviceline) provides information to agencies on a range of matters relating to APS employment policy. Callers from an agency’s human resource area can seek advice on the legislative framework including: recruitment; termination of employment; redundancy; the APS Values and Code of Conduct; performance management; and better practice advice. While most APS employment matters are the responsibility of agency heads, the Adviceline assists in clarifying issues and helping agencies to find the most relevant publicly available information, including on the Commission’s website. There was a reduction in the overall number of enquiries to the Adviceline during 2006–07, with the service answering a total of 2,834 enquiries. This represents a monthly average of 236 calls: a decrease of 38 calls per month compared to the 2005–06 average. The reduction was mainly due to an adjustment to the telephone service in February 2007 to re-direct non-policy inquiries to appropriate areas within the Commission and other central agencies. Previously, the Adviceline received a significant number of queries which where not related to the Public Service Act 1999, as well as queries from APS employees which were better dealt with by their respective agency human resource areas. There was a slight increase (1%) in the number of requests for advice made by email, compared to the previous year, with 31 per cent of enquiries in 2006–07 being emailed to: [email protected] Table 2 identifies the main categories of enquiries received by the Commission’s Employment Policy Adviceline. As with previous years, calls relating to obtaining APS employment and the selection, movement and placement of existing APS employees, continued to dominate the range of advice sought. Table 3: Main categories of Employment Policy Adviceline calls, 2004–07 Subject 2004–05 2005–06 2006–07 Staffing matters 812 935 1103 General legislative issues 298 416 138 Separations 234 261 259 Conditions/entitlements 251 259 235 Review matters 270 233 111 APS Values/Code of Conduct 187 212 204 Workplace diversity issues 40 80 47 SES matters 46 54 60 Table 3: Main categories of Employment Policy Adviceline calls, 2004–07 Subject 2004–05 2005–06 2006–07 Mobility/reciprocal mobility 16 48 29 Competencies/qualifications 10 48 20 Other 1305 743 567 Total 3469 3289 2773</p><p>Commission staff in regional offices continue to play an important role in providing advice and support to senior regional staff in APS agencies on the role and services of the Commission. This includes advice and support with matters related to the APS Values and Code of Conduct, capability development, better people management, employment policy and employment services. Where this advice is time consuming, or relates to complex matters, the details are recorded for accountability purposes and in case of subsequent action. During the year, advice was provided to senior regional staff on 115 occasions. Circulars During 2006–07 the Commission issued seven circulars, notifying agencies of legislative changes, policy developments and the release of new publications: circular No 2007/2: The Privacy Act and employee information concerning Code of Conduct matters circular No 2007/1: Declarations of personal interests: revised policy guidelines circular No 2006/7: Planning for influenza pandemic issues — APS employment issues circular No 2006/6: Use of special measures to fill employment opportunities for people with intellectual disability circular No 2006/5: Engagement of persons who have received a redundancy benefit from Commonwealth employment—impact of Telstra (3) sale circular No 2006/4: APS staff selection exercises – use of external providers circular No 2006/3: Amendment to the Public Service Regulations 1999 concerning the disclosure of information. Further information on these topics can be found on the Commission’s website at: http://www.apsc.gov.au/circulars/ and http://www.apsc.gov.au/publications/ Employment services The Commission provides a range of employment services to APS employees and agencies to assist them to meet their legislative requirements. Table 4: Performance Information: Output 1.2—Employment Services Target Result Quantity 1. To provide Gazette services to Achieved. 50 Gazettes were produced on time. enable agencies to satisfy legislative requirements to notify certain employment actions—50 gazettes produced per year. 2. Perform statutory responsibilities: a) Number of SES engagements, Underestimated. 252 matters were resolved. promotions and terminations— estimate 240 b) Services to support any Overestimated. 11 machinery of government cases, 3 machinery of government consents to delegation of powers to outsiders and the changes, approval of delegations, Commissioner responded to 18 whistleblowing reports. Due and case management of about to changes in the Commission’s output structure, the 550 individual cases ‘individual cases’ are now incorporated within item 3 below (estimated number of fee-for-service employment-related services). This change in the output structure is now reflected in the Commission’s 2007-08 Portfolio Budget Statement. 3. Estimated number of fee-for- Exceeded. 957 fee-for-service activities were conducted service employment-related services—617 </p><p>Quality 1. Per cent of Gazette entries Achieved. 100% lodged in accordance with requirements. accurately published in Agencies have also expressed satisfaction with the new accordance with legislative online lodgement process. requirements—target 100%. 2. a) 95% of agency SES Exceeded. 100% of SES recommendations from agencies employment recommendations endorsed within one week of receipt. able to be endorsed within one week of receipt of documents. b) 100% of machinery of Achieved. 100% of 11 machinery of government changes government changes completed effected within legislative timeframes. within legislative timeframes </p><p>Not achieved. 66% of the 3 cases approved in 2006–07 95% of approvals of delegations completed within 5 working days, 1 case took longer to to outsiders completed within 5 complete due to administrative considerations. working days </p><p>Not achieved. 87.5% of 8 cases approved in 2006–07 100% of requests for completed within 5 working days, 1 case took longer to consultation on, or approval for, complete due to the complexities of the case. re-engagement completed within 5 working days Achieved. Day-to-day client feedback continues to indicate a a high level of satisfaction of high level of satisfaction with the services provided clients with the accuracy, quality and timeliness of individual cases. </p><p>Estimated price: $4.994 million Actual: $6.430 million</p><p>Produce the Public Service Gazette The Commission produces the Public Service Gazette (the Gazette/s) weekly to notify the public of all employment opportunities, recruitment outcomes and certain other APS employment decisions. In 2006–07, 50 Gazettes were produced with the number of notices lodged increasing by 21.13 per cent compared to the number lodged in 2005–06. Table 5: Comparative number of notices lodged over last five financial years Financial Total number of notices Percentage difference on previous year year lodged (%) 2002–03 39,100 - 2003–04 31,900 - 18.41% 2004–05 39,000 + 22.26% 2005–06 47,918 + 22.87% 2006–07 58,044 + 21.13%</p><p>In July 2006, the Commission completed a small scale enhancement of the Gazette which improved the public search system, as well as the online lodgement process for agencies, as an interim measure until the Gazette could be comprehensively re-developed in line with decisions made by the Government’s Management Advisory Committee (MAC). During the year, with the assistance of a reference group of agencies (comprising the Departments of Defence, Employment and Workplace Relations, Transport and Regional Services, the Australian Taxation Office, the Child Support Agency and the National Library of Australia) the Gazette was re- developed into an APS employment portal, consistent with MAC’s decisions in its report Managing and sustaining the APS workforce released in 2005. The new system was delivered in June 2007 ready for pilot testing in July 2007. Branded as APSjobs, the new site was launched on 9 August 2007 by the Commissioner. The APSjobs site is one component of a package of work in 2006–07 aimed at: increasing the profile of the APS in the labour market encouraging people to apply for jobs and build a career and the APS attracting particular skill sets or groups to pursue APS careers improving APS management of the recruitment process, in order to remain competitive in the labour market retaining staff in the APS to build future workforce capability. Related initiatives are reported in outputs 2.2—programme delivery and 3.2—promoting better practice. The new site will provide an up-to-date image for the APS, making it more attractive to job seekers. It has several new features that make it easier to find out about the APS as an employer and apply for jobs. The new site includes: interactive email alerts for job seekers so they can be notified of upcoming vacancies e.g. of a particular type or location information about APS employment conditions and access to Cracking the code, a plain-English guide to getting a job in the APS a further improved search system for job seekers and other users the ability for APS agencies to advertise mobility opportunities and major recruitment campaigns in a new Branching out page Ready now, a register of former APS employees for agencies to draw upon in their recruitment processes further improved online lodgement processes for agencies. With the development of APSjobs, the opportunity was taken to review the need for publication of a paper Gazette as the number of subscribers has decreased substantially in recent years. In June 2007, the Government decided to cease its production with effect from 8 August 2007. The last paper copy was published on 2 August 2007. Users of APSjobs may instead download a paper copy direct from the new site. Further improvements are planned for APSjobs with scoping of phase 2 development commencing in June 2007. Manage Commission responsibilities for SES engagements, promotions and terminations of employment Agencies require the Commissioner’s agreement before a range of staffing actions affecting SES employees can proceed, particularly those relating to the promotion and engagement of SES employees and in cases where SES employees are offered an incentive to retire from the APS. Table 6: Number of SES selection exercises endorsed and number of employment opportunities filled 2004– 2005– 2006– SES selection exercises 05 06 07 Number of selection exercises endorsed 189 251 226 Employment opportunities filled by promotion, engagement or 327 459 428 movement at level</p><p>The Commissioner also has responsibility for approving the amount offered by agency heads as an incentive for SES employees, under section 37 of the Act, to retire within a specified period. In 2006– 07, use of section 37 continued to be at a low level, similar to previous years, with 23 separations taking effect under this provision. The Commission continued to deal efficiently with agency requests relating to SES staffing matters with the majority of requests being responded to within one working day of receipt. Appendix I contains details of promotions, engagements and movements at levels to advertised SES employment opportunities, section 37 retirements by agency and SES separations by type during 2006–07. Further information on the profile of the SES can be found in the State of the Service Report on the Commission’s website at: http://www.apsc.gov.au/stateoftheservice/ The Group Manager, Policy Group, fulfils the role of SES Adviser. The SES Adviser is available to all SES employees seeking advice on employment issues, including those SES employees offered the opportunity to retire under section 37. Succession management in the APS In 2006–07, the Commissioner gathered new and updated information from Secretaries on the professional skills and capacities of the SES Band 3 group which represents a major source of future APS agency heads. Information was also obtained relating to selected SES Band 2 employees in terms of their potential to move to the next level. The Commissioner uses this information to advise Secretaries and in particular the Secretary of the Department of the Prime Minister and Cabinet, about succession management both in general terms and in relation to specific appointments. The Commissioner will repeat this process for 2007–08. Performance assessment for Secretaries The Commissioner and the Secretary of the Department of the Prime Minister and Cabinet provided advice to the Prime Minister on the performance of Secretaries during 2006–07 as part of the annual performance assessment process. The Prime Minister considered this advice when determining performance bonuses for Secretaries for that period. The Commissioner also provided advice to relevant Ministers on the performance of agency heads in 2006–07. The Prime Minister subsequently endorsed the relevant Minister’s determination regarding performance bonuses for each agency head. Administrative re-arrangement casework The Commission handled 11 administrative re-arrangements in 2006–07, including a number arising from Uhrig assessments. Significant changes included: the Australian Trade Commission (Austrade) moving into the APS establishment of the National Health and Medical Research Council and the Australian Commission for Law Enforcement Integrity as separate APS statutory agencies amalgamation of water resource functions in the renamed Department of the Environment and Water Resources involving the movement of various functions and staff from the Department of the Prime Minister and Cabinet and the Department of Agriculture, Fisheries and Forestry. The Commission executed the necessary determinations under section 72 of the Act, to give effect to these administrative rearrangements, to meet the timeframes set by the Government and by individual agencies. Delegations to outsiders Before an APS agency head can delegate any powers under the Act or the Public Service Classification Rules 2000, to a person not employed under the Act, an agency head must obtain the Commissioner’s written consent. In 2006–07, the Commissioner consented to requests relating to three individuals. Two of the requests were for staffing related powers and one request was for powers to investigate and determine potential sanctions for a suspected breach of the Code of Conduct. Each request was considered on its merits, including whether the individuals involved possessed relevant experience and knowledge to exercise the delegated powers appropriately. Employment-related services on a fee-for-service basis Under section 41(1)(k) of the Act, the Commissioner is able, on request, to provide advice and assistance to agencies on public service matters. Some of this work is conducted on a fee-for-service basis. During 2006–07, the majority of work undertaken by regional offices in response to requests for employment-related services involved the recruitment and selection of staff. The Commission provided convenors, panel members and support for selection advisory committees for a number of agencies. Among the most frequent users of Commission services were the Child Support Agency, the Department of Defence, the Australian Taxation Office, the Australian Institute of Family Studies and the Australian Building and Construction Commission. Other fee-for-service activities included career counselling, alternative dispute resolution and organisational design. Over the year a total of 957 fee-for-service activities were conducted. Employment-related fee-for-service activities include those provided under the Merit Protection Commissioner’s functions, such as Independent Selection Advisory Committees. More details about such committees and other fee-for-service activities performed on behalf of the Merit Protection Commissioner can be found in the Merit Protection Commissioner’s Annual Report at part four of this report. Remuneration and workplace agreements The Department of Employment and Workplace Relations (DEWR) provides the Commission with copies of draft agency collective agreements for review against the Commission’s responsibilities provided for in the Government’s policy parameters for agreement making in the APS. In particular, the Commission’s advice includes an assessment of the redeployment, reduction and redundancy arrangements in agreements to ensure consistency with the requirement that agencies include compulsory redundancy arrangements (while also ensuring any changes do not enhance existing arrangements). The Commission also provides advice on a range of legislative and good practice issues, such as reviews of actions, merit, and APS staff recruitment/selection issues. In 2006–07, comments on the redeployment, reduction and redundancy arrangements in agreements were provided to DEWR on 73 occasions. Of those agreements assessed, 70 (96%) were conducted within the five-day assessment period agreed with DEWR. The delays to the remaining assessments were caused by the complexity of the matters dealt with in the agreements. In comparison, comments were provided to DEWR on 60 occasions in 2005–06 and on 32 occasions in 2004–05. Public interest whistleblowing The Act and its Regulations provide for an APS whistleblowing scheme. Section 16 of the Act prohibits victimisation of, or discrimination against, an APS employee who reports a breach or alleged breach of the Code of Conduct (the Code). The regulations require agency heads to establish procedures for dealing with such reports. The procedures must observe procedural fairness, comply with the Privacy Act 1988 and provide that APS employees in the agency may report breaches or alleged breaches of the Code to the agency head, the Commissioner or the Merit Protection Commissioner. Generally, disclosures should be made to the agency head, or a person authorised by the agency head and investigated by the relevant APS agency. Where it is not appropriate for the agency head to deal with a particular matter, or where the whistleblower is not satisfied with the outcome of the investigation by the agency, the whistleblower may report the matter to the Commissioner or Merit Protection Commissioner. A total of 21 reports were sent to the Commissioner during 2006–07, four more than the number received during 2005–06. Eleven of these were from current employees and ten were from private citizens. Two reports were on hand at the end of the previous reporting period and concerned disclosures from APS employees in relation to the conduct of the Merit Protection Commissioner. In both cases, it was considered there was no evidence to support the allegations of inappropriate behaviour and in particular, it was the Public Service Commissioner’s view that the allegations relating to the Merit Protection Commissioner were reflecting the employees’ disappointment with the outcome of applications made by the employees in relation to review and whistleblowing matters. Of the disclosures received during 2006–07, the Commissioner considered a disclosure from an employee in relation to the conduct of an agency head and other agency employees. It was considered that there was no evidence to support the allegations of inappropriate behaviour made by the employee. Of the remaining disclosures from APS employees, six did not meet the criteria for investigation by the Commissioner and four were on hand at the end of the reporting period. Of the four on hand, three were disclosures which met the criteria for investigation by the Commissioner. These investigations were not finalised at the end of the reporting period. Where disclosures did not meet the criteria for consideration, advice was provided on ways in which concerns could be addressed either by referral to the relevant agency head or other administrative review bodies, such as the Commonwealth Ombudsman. Information on whistleblowing reports sent to the Merit Protection Commissioner is separately reported at part four of this report. International assistance and organisations The Commission delivers assistance to other governments and organisations in line with AusAID programmes and priorities to support public sector reform in the region. The Commission also hosts delegations of visiting officials. Table 7: Performance information Output 1.3—International assistance and organisations Target Result Quantity 1. Deliver high quality technical Achieved. Deployed two advisers with the Papua New assistance overseas in line with Guinea public service and one adviser with the Indonesian records of understanding with public service. Jointly hosted a good practice workshop in AusAID-priorities: Pacific, PNG and Indonesia. Delivered the Pacific Leadership programme. Indonesia. Hosted a Pacific HR Managers network meeting. 2. Share information, knowledge Arranged study visits for twelve Indonesian officials. Hosted and skills with visiting officials in a visit by the Indonesian Minister for Administrative Services Australia. and three Indonesian agency heads. Placed four Pacific scholarship holders with agencies. Number of overseas delegation Overestimated. The Commission coordinated and hosted 23 visits coordinated and hosted— visiting delegations. estimate 30.</p><p>Quality 1. High level of satisfaction with the Achieved. Direct positive feedback from recipients on quality quality and timeliness of reports, of study visits and agency placements and from Pacific advice and services provided. Commissioners and Papua New Guinea public service. 2. A high level of satisfaction of the Achieved. Consistently high levels of satisfaction expressed delegations as advised by the third- through feedback in formal letters of appreciation and party organisers. informal emails of thanks from the visiting delegations and organisers.</p><p>Estimated price: $2.927 million Actual price: $2.459 million</p><p>Manage international responsibilities The Commission continued to collaborate with AusAID to meet the Australian Government’s commitment of supporting countries in our region to establish professional, impartial public services. Partner countries in the region are able to benefit from Australia’s experience in public sector reform and its expertise in good governance. This helps to improve the quality and performance of public services for the benefit of the whole region. The Commission delivers AusAID funded programmes consistent with its country-specific strategies. Support public sector reform in the Pacific A large component of the Commission’s international assistance programme in 2006–07 was conducted in the Pacific region. The Commission organised two-month long work placements with Australian government agencies for four participants under the Pacific Islands Scholarship for Governance Programme. In addition the Commission also delivered the Pacific Public Sector Leadership Programme to current and emerging leaders from eleven Pacific countries in Fiji (current leaders) and Samoa (emerging leaders). Pacific Public Sector Leadership Programme for emerging leaders - group portrait, Samoa, May 2007</p><p>The Commission hosted a successful inaugural meeting of the Pacific human resource manager’s network in Canberra with eleven Pacific human resource managers in attendance. Participants discussed human resource issues affecting the region and identified areas where information could be shared to assist all Pacific countries to address these issues in a more informed way. Under AusAID’s Enhanced Cooperation Program, the Commission continued to deploy two SES Commission employees to the Papua New Guinea Government’s Department of Personnel Management to assist build capacity in relation to strategic human resource and industrial relations. Assistance to civil service reform in Indonesia Since 2006, the Commission has worked directly with three central Indonesian civil service agencies, the Civil Service Agency, the State Administrative Agency and the National Institute for Administration, on a range of public sector reform and capacity building initiatives, through the deployment of an Australian APS official to Jakarta. This work is funded through AusAID under its Government Partnership Fund. Over the financial year, the Commission continued to provide assistance by hosting a range of activities including: a study visit for 12 officials from the Indonesian Civil Service Agency in July 2006 on a range of leadership and public service management issues a visit by the Indonesian Minister for Administrative Services, Mr Taufiq Effendi and the heads of three counterpart agencies in August 2006. The visit provided an understanding of Australia’s public sector reform experience, particularly in relation to management of the public service a two-day good practice workshop on public sector reform and service delivery in Jakarta jointly hosted by the Commission and Minister for Administrative Reform. The Commissioner delivered the workshop’s keynote address. The workshop was accompanied by an exhibition that showcased examples of good public service delivery practices. </p><p>Ms Lynne Tacy, Deputy Public Service Commissioner and Mr Taufiq Effendi, Indonesian Minister for Administrative Services, August 2006 Attendance at international conferences In 2006–07, the Commissioner attended the following international events: Australia New Zealand Central Agencies meeting, 13–16 February 2007, in Wellington, New Zealand joint Commission and Indonesian Government two day good practice workshop, National Workshop on reforming the civil service for improving services to the public, 12–13 March 2007, in Jakarta a special session to develop Commonwealth Association for Public Administration and Management’s (CAPAM) 2008–10 Strategic Plan, 16 April 2007 and a CAPAM Board of Director’s meeting, 17 April 2007, in Cape Town, South Africa a joint CAPAM—South African Department of Public Service and Administration seminar, Building the academic/practitioner interface in South African public administration, 18–19 April 2007, in Cape Town, South Africa. In her role as the Deputy Public Service Commissioner, Ms Lynne Tacy attended the 35th OECD Public Governance Committee from 12–13 April 2007. The then Merit Protection Commissioner, Mr Jeff Lamond PSM, also attended the Seminar on the modernisation of the public service organised by the Government of New Caledonia, in Noumea, from 21–24 August 2006, where he delivered a speech on the Australian reform experience. The Group Manager, Corporate Group, Ms Karin Fisher, attended the 34th OECD Public Governance Committee in Paris, from 30–31 October 2006. The Group Manager, Better Practice Group, Ms Clare Page, attended the Public service reform conference held by the UK National School of Government in London on 27 March 2007. Hosting visits by overseas delegations In 2006–07, twenty-three overseas delegations visited the Commission to discuss public sector reform and the role and responsibilities of the Commission and the Commissioner. Asia accounted for 70 per cent of the visits while China remainedthe country with the largest number of visits (five) during 2006– 07. Other Asian visitors included: India; Indonesia; Japan; Malaysia; Mongolia; Thailand; and Vietnam. The remaining visits were from: Chile; Kazakhstan; New Caledonia; Nigeria; Solomon Islands; and representatives from the Organisation for Economic Co-operation and Development (OECD). During the year, the regional offices of the Commission hosted 11 of the visiting delegations, mostly from the Asia–Pacific regions. Merit protection and other services The Merit Protection Commissioner’s statutory role under the Public Service Act 1999 (the Act) includes inquiring into whistleblower reports (section 16) and reviewing actions in relation to APS employment (section 33). The Act provides that the Commissioner will make available staff necessary to assist the Merit Protection Commissioner in performing his statutory functions through a memorandum of understanding. Commission staff members undertake several activities on behalf of the Merit Protection Commissioner, including in his role as Parliamentary Service Merit Protection Commissioner. These activities include: conducting reviews of promotion decisions, primary reviews including reviews of determinations and sanctions with regard to breaches of the Code of Conduct and secondary reviews of other employment actions providing assistance on matters relating to whistleblowing reports providing support services, such as preparing management reports. During 2006–07, Commission staff conducted 123 reviews and received 10 whistleblowing reports on behalf of the Merit Protection Commissioner and Parliamentary Service Merit Protection Commissioner. All activities performed on behalf of the Merit Protection Commissioner are demand driven. Table 8: Performance Information: Output 1.4—Merit Protection and other services Target Result Quantity 1. Conduct reviews and respond to whistleblowing reports. Estimated number of:</p><p>Overestimated. 214 review applications received. reviews—260 </p><p>Overestimated. 11 whistleblowing report responses. whistleblowing report responses—15 </p><p>2. Policy and advice services provided to Underestimated. 96 activities for policy and advice the Merit Protection Commissioner, services Parliamentary Service Merit Protection Commissioner and Parliamentary Departments—estimate 80 activities. </p><p>Quality 1. Achieved. Feedback from agencies and employees Review processes accepted as being indicates a high level of acceptance of processes impartial, fair and effective. as being impartial, fair and effective. Not achieved. 59% of reviews completed within 90% of reviews completed within published timeframes. published timeframes. </p><p>Achieved. 100% of whistleblowing reports received 100% of whistleblowing reports receive a response within 6 weeks. an initial response within 6 weeks, with any further investigations conducted in a timely and objective manner. </p><p>2. A high level of satisfaction of the Merit Achieved. Feedback from the Merit Protection Protection Commissioner and Commissioner, including in his role as Table 8: Performance Information: Output 1.4—Merit Protection and other services Target Result Parliamentary Service Merit Protection Parliamentary Service Merit Protection Commissioner with the relevance, quality Commissioner, has indicated a high level of and timeliness of advice and support satisfaction with the support services provided in provided. respect of his role. </p><p>Estimated price: $3.089 million Actual: $2.930 million</p><p>A separate, detailed report has been prepared by the Merit Protection Commissioner on his activities during the year and is available at Part Four. Development programmes Output 2 is drawn from the Public Service Commissioner’s statutory role, listed in section 41 of the Public Service Act 1999 (the Act). In particular, to build the capability of the Australian Public Service (APS) for the future by providing leadership, learning and development products and programmes that meet the current and emerging business needs of agencies. Achievements The achievements under Output 2 during 2006–07 included: taking a lead role in organising the biennial conference of the Commonwealth Association for Public Administration and Management (CAPAM) and the associated inaugural Commonwealth Ministers Forum on public service development developing a national leadership, learning and development strategy facilitating strong participation in the SES Band 3 Leadership mastery and SES Band 2 leading across boundaries residential programmes developing and delivering two residential programmes for SES Band 1s: New leadership horizons and Transforming leadership introducing four new expertise programmes for the SES: Preparing to appear before Parliamentary committees; Programme management; Mastering your financial environment; and Regulatory environment recording strong growth in participation numbers on the SES orientation programme delivering three successful Ministerial Conversations programmes conducting two highly successful Leading Australia’s future in Asia (LAFIA) programmes launching a new EL2 residential programme Executive leadership dimensions developing and releasing a book on the Integrated Leadership System for APS 1–6 levels conducting a highly successful A taste of Government seminar attended by over 600 APS graduates conducting two valedictory lecture events by retiring Secretaries. Price for Output 2: The total price for Output 2 for 2006–07 was $15.730 million. This is $2.965 million higher than the estimated price of $12.765 million published in the Portfolio Budget Statements 2006–07.</p><p>Leadership services The Commission performs an important and significant role in building and sustaining the leadership capability of the APS. Central to this role is a focus on the Senior Executive Service (SES) leadership cadre. Increasingly, however, the Commission is also focusing on meeting the particular needs of the EL group which, as the feeder group to the SES, will provide the basis for renewal of the SES over time. Table 9: Performance information Output 2.1—Leadership Services Target Result Quantity 1. Increase leadership knowledge, skills and capability of SES and Executive Level (EL) groups across the APS. a) Number of seminars and forums delivered— Exceeded. 202 seminars and forums were estimate 136 delivered. b) Number of agencies engaged through at least Exceeded. 100% of APS agencies were one scheduled event, activity or network focused engaged through at least one scheduled on promoting leadership—target is 75% event, activity or network focused on promoting leadership. c) Number of Career Development Assessment Exceeded. 13 CDACs delivered with a total Centres (CDACs) delivered—estimate 9 CDACs of 156 participants attending. with 106 participants. 2. Promote effective implementation of leadership development across the APS. a) Number of consultations conducted with Exceeded. 13 consultations with agencies agencies to support the agency in integrating the and international delegations about the Integrated Leadership System into their practices Integrated Leadership System. and systems. These consultations involve structured planned interventions to specifically develop the agency’s leadership practices and/or capacity—target is 10 consultations with agencies.</p><p>Quality Leadership Development Network Percentage of responding participants in the Leadership Development Network who when surveyed give a rating of 5 or 6 on a 6-point scale, for: Not achieved. 78% of respondents gave a relevance—target is 85% rating of 5 or 6 on a 6-point scale. Not achieved. 79% of respondents gave a usefulness—target is 85% rating of 5 or 6 on a 6-point scale. Not achieved. 81% of respondents gave a administration and coordination—target is 85% rating of 5 or 6 on a 6-point scale. Client service survey A client service survey was not conducted in 75% of APS agencies in the client service survey 2006–07. Instead an internal review was agree that in promoting effective leadership the conducted of the Commission’s Leadership, Commission provides: Learning and Development panel which took account of feedback from agencies and clarity of information suppliers. Feedback indicates the panel is accessible means of support generally working well. timely responses to queries Table 9: Performance information Output 2.1—Leadership Services Target Result current and useful information, and effective transfer of knowledge to others. </p><p>CDAC Percentage of responding participants who when surveyed give a rating of 3 (beneficial) or above on a 5-point scale for: Exceeded. 96 % rated 3 or above on a 5- gained a better understanding of strengths and point scale. development needs—target is 90% </p><p>Exceeded. 96% rated 3 or above on a 5- developed a better understanding of leadership point scale. capabilities—target is 90% </p><p>Exceeded. 91% rated 3 or above on a 5- assisted participants to be more effective point scale. leaders—target is 90% </p><p>Estimated price: $4.010 million Actual: $5.046 million </p><p>A national approach to leadership, learning and development In May 2007 the Commission completed a new national leadership, learning and development strategy that set out an integrated approach to building capability and supporting excellence in the APS. The strategy aims to support the needs of employees and agencies in responding to the challenges of a contemporary APS in a complex and ever changing environment. The strategy strengthens the Commission’s commitment and ability to better support APS agencies and their employees in realising their potential. The leadership, learning and development strategy articulates the client-focused principles that guide the Commission’s work and identifies the strategies, objectives and actions that will enable the Commission to work together with agencies towards a smarter, stronger and more sustainable APS. The strategy will allow the Commission to: renew its commitment to helping agencies build employee capability revitalise its relationships with key stakeholders refresh its suite of products and services. SES Band 2 and 3 residential programmes In 2006–07, the Commission delivered four residential leadership programmes for SES Band 3 and Band 2 executives. These highly successful programmes, first developed in 2005–06, are aimed at strengthening the leadership capabilities identified for senior executives in the Integrated Leadership System (ILS) and enhance their knowledge and awareness of contemporary challenges facing the APS—including whole-of-government problems, engaging citizens effectively and appropriate governance and accountability arrangements. The programmes have continued to receive positive feedback during 2006–07 with: fifteen participants attending the SES Band 3 residential programme Leadership mastery in June 2007 a total of 51 participants attending the SES Band 2 residential programmes, Leading across boundaries, conducted in September and November 2006 and March 2007. SES Band 3 forums The SES Band 3 forums offer the opportunity for peers to come together, from very different agency contexts, to explore topical issues. The forums operate as a 'roundtable' with internal and external subject matter experts presenting the facts and trends, followed by facilitated discussions within the group. These factors provide the framework for the selection of forum topics and produce events that are relevant, informative and popular. Three forums during 2006–07 attracted 41 participants. By comparison, two forums were held in 2005–06, which were attended by a total of 33 people. The topics for 2006–07 included: Strategic agreement making in Australian Government employment with discussion led by Dr Peter Boxall, Secretary of the Department of Employment and Workplace Relations State of the service report, with discussion led by Ms Lynne Tacy, Deputy Public Service Commissioner Programme management, with discussion led by Ms Leslie Riggs, Executive Director, Auslink and Mr Bernie Yates, Deputy Secretary, Department of Families, Community Services and Indigenous Affairs. SES Band 1 residential programmes The Commission delivered new residential leadership programmes for SES Band 1 executives in 2006–07: the New leadership horizons programme is for SES Band 1 executives with less than 3 years experience at level. The programme focuses the distinctive contribution of SES Band 1s and, in particular, the difference between the roles of an Executive Level employee and the SES Band 1 level. the Transforming leadership programme for SES Band 1 executives with more than 3 years experience at level. The programme focuses on the contribution of this group within the APS environment and emphasises the individual’s role in building not only their own capability but that of others. Both programmes take into account the differing complexity at each leadership level and assist participants to define their contribution to the APS, understand their role as part of the SES, develop their capacity to respond to current and emerging issues (including whole-of-government imperatives) and strengthen their ability to manage themselves in a changing, devolved environment. In 2006–07, three New leadership horizons programmes commenced with the participation of 58 SES Band 1s. In the same period, five Transforming leadership programmes commenced, with 85 SES participants. Expertise development Expertise development programmes have been developed to assist senior executives enhance their knowledge and skills across a broad range of key areas (such as programme management, financial management and regulation). These programmes are of significant assistance to members of the SES as they take on new roles, responsibilities and challenges in furthering their careers. The Commission delivered eight of its highly successful programme Preparing to appear before parliamentary committees. This programme focuses on building confidence, public presentation skills and personal communications by using role play to simulate, for example, appearances at estimates hearings. Four new expertise development programmes were introduced during the year: Programme management assists APS leaders achieve excellence in programme design, implementation and delivery. It explores programme management in a broad context, ensuring an understanding of the relationships between all aspects of policy implementation. The first programme was held in August 2006 with three subsequent programmes delivered. A total of 69 senior executives attended. Mastering your financial environment is aimed at SES who are new to the public service or need to refresh their knowledge in the area of financial compliance. The first programme was held in August 2006 with 24 participants. A total of four programmes were conducted through 2006–07 attended by 77 senior executives. The first Regulatory environment programme, lead by Professor Allan Fels AO, was held in April 2007 and attended by 27 people. This programme focuses on initiatives to improve regulation design resulting from the Australian Government’s response to the Taskforce on reducing regulatory burdens on business: rethinking regulation report. The Aboriginal and Torres Strait Islander policy in practice programme was conducted twice in 2006–07 with the first held in November 2006 with 22 participants. The aim of the programme is to improve the development and implementation of government policies, programmes and initiatives that impact Aboriginal and Torres Strait Islander people. A second programme was held in March 2007 with 15 participants. SES breakfast seminar series The Commission’s regular breakfast seminars for APS senior executives provides participants with a forum to interact with leading speakers on contemporary issues directly relevant to their work. The seminar series also offers an opportunity for senior executives to discuss issues of common interest with colleagues on a regular basis. Ten SES breakfast seminars were held in 2006–07 with a total of 725 executives attending. The speakers at the SES breakfast seminars during the year included: Mr Stephen Merchant, Department of Defence, Building a leadership system and enhancing leadership capability for all levels of the organisation Mr Michael D'Ascenzo, Australian Taxation Commissioner, Australian Taxation Office, Consultation, collaboration and co-design—the way forward for the Tax Office Ms Maria Katsonis, Executive Director, Policy Research and Analysis, State Services Authority (Victoria), The future of the public sector in 2025 Professor Andrew MacIntyre, Director, Crawford School of Economics and Government, ANU, Australia's changing interest in Asia and the Pacific: implications across Government Ms Avril Henry, Executive Director AH Revelations Pty Ltd, How to motivate, attract and retain generation X & Y. Ms Henry’s presentation provided an overview on how to motivate, attract and retain generations ‘X’ and ‘Y’ and attracted a record number of 178 participants to an SES breakfast seminar. The number of subscribers to the SES breakfast series increased by 11 to a total of 51 in 2006–07. Despite this, the average attendance at each breakfast decreased by 24 people. In response, the Commission has adjusted its approach to communicating upcoming events (including breakfast events) with the aim of being more informative. The new approach has resulted in an improvement in attendance numbers for programmes held in the latter part of the year. Table 10: Attendance at SES breakfast seminar series 2002–07 Average Financial Number of Number of Total Number of attendance per Year subscribers events attendance individuals event 2002–03 37 11 714 404 65 2003–04 39 (-5%) 8 582 (–18%) 395 73 2004–05 48 (+23%) 10 659 (+13%) 405 66 2005–06 40 (-16%) 10 974 (+48%) 699 97 Table 10: Attendance at SES breakfast seminar series 2002–07 Average Financial Number of Number of Total Number of attendance per Year subscribers events attendance individuals event 2006–07 51 (+27.5%) 10 725 (–26%) 508 73</p><p>Note: Bracket represents percentage change on previous year. SES updates SES updates ensure that senior executives are well briefed on the public sector environment, with particular reference to developments in government policy, expectations and legislation. The Deputy Public Service Commissioner, Ms Lynne Tacy, leads discussions on some of the current and emerging trends, demographically, politically and globally affecting the public service. Participants can explore the information presented and how it relates to them and their organisation. These updates focus on the Shapes strategic thinking capability of the Senior Executive Leadership Capability Framework. Two SES updates were conducted during 2006–07, with a total of 37 people attending. This represented a slight decline on 2005–06 figures, when two updates were held with 60 people attending. Topics for the updates included: State of the service report 2005–06 APS-wide issues of interest to the SES, such as meeting APS workforce challenges, trends at the SES and EL levels, Management Advisory Committee reports and managing in the period leading to an election. SES snapshots SES snapshots are aimed at providing members of the SES with the opportunity to attend short, highly focused workshops on current issues. In 2006–07 the sessions focused on strategic communication and parliamentary committees. The six SES snapshot sessions which were conducted during the year were attended by 72 senior executives. This result represents a significant increase on the figures for 2005–06, when five snapshots were held during that year and attended by 56 people. Regional offices of the Commission also have a role to support the development of the SES cadre. Many SES officers attended the executive briefings and updates coordinated by the regional offices. In addition, the Victoria/Tasmania office provided a successful SES snapshot: appearing before parliamentary committees to 38 senior staff from 16 agencies on 30 October 2006. Ministerial conversations series The Ministerial conversations series provides agency heads and senior executives with the opportunity to hear directly from Ministers on their current policy perspectives and their expectations of the public service in implementing Government policy in a whole-of-government context. The Commission facilitated three Ministerial conversations in 2006–07: Senator the Hon. Amanda Vanstone, Minister for Immigration and Multicultural Affairs, presenting on the topic of What the taxpayer wants: a Minister’s view of what the public wants and expects the Hon. Mark Vaile MP, Deputy Prime Minister and Minister for Trade, presenting on the topic of Selling Australia: trade negotiations and the public service the Hon. Julie Bishop MP, Minister for Education, Science and Training and Minister Assisting the Prime Minister for Women's Issues, presenting on the topic of Educating a smarter workforce. The Hon. Mark Vaile, MP, Deputy Prime Minister and Minister for Trade, addressing a Ministerial Conversations event.</p><p>In addition to the Ministerial Conversation series, senior APS managers in Sydney were invited to an executive luncheon seminar with the Minister for Employment and Workplace Relations and Minister Assisting the Prime Minister for the Public Service, the Hon. Joe Hockey MP, who presented his views on the key leadership skills sought from public servants. This provided an important opportunity for senior APS managers outside of Canberra to listen to the Minister. Events outside Canberra The Commission’s regional offices continue to maintain a strong co-ordination and facilitation role in promoting effective leadership with regional heads through various groups and activities. To provide learning and development opportunities for senior executives based in the states, territories and regions, the Commission arranged three of its SES residential programmes in Melbourne and one in Sydney. Should they continue to be successful and well-subscribed, the Commission will offer additional regional programmes throughout 2008. Annual conferences of regional heads are held in most regions and Commission staff perform an important role in assisting with the planning and support of such events. Themes in 2006–07 included: Making it happen APS 2026: ready or not? Global influences and engagement Leadership excellence Courage to act, commitment to deliver: connecting with the community. The conferences featured speakers from all tiers of government and the private sector including: Dr Keith Suter; Dr Peter Ellyard; Mr Ray Martin; Mr Kerry O’Brien; Mr Mick Palmer; Professor Louise Rolland; Reverend Tim Costello; Dr Peter Shergold; the Commissioner; and a number of other APS agency heads. Senior employees from state government sectors and academia were also well represented. With the aim of fostering strong relationships at all levels and recognising the valuable contribution of the regional heads networks, the Commission organised a national meeting of the chairs of the networks in June 2007. Discussions were held on membership, structures, network events, activities and the support provided by the Commission. The Commissioner continued her practice of meeting with senior regional staff to discuss matters arising out of the State of the service report and key issues around APS challenges and reform. Events were held in all capital cities and Townsville. Executive briefings were also held in Hobart where Dr Peter Shergold, Secretary of the Department of the Prime Minister and Cabinet spoke on Different perspectives on leadership and in Melbourne where Ms Barbara Bennett, Chief Executive Officer of Comcare spoke on The role of leaders in safe workplaces. The Deputy Commissioner also spoke at an Executive briefing in Melbourne providing an update on APS-wide issues of interest. Valedictory lectures The Commission’s valedictory lecture events provide selected retiring Secretaries with the opportunity to reflect and share insights and experiences with their Secretary, agency head and senior executive colleagues. In November 2006, the Commission co-ordinated a valedictory lecture for the retiring Secretary of the Department of Defence, Mr Ric Smith, attended by 167 APS agency heads and senior executives, who listened to Mr Smith speak about his public sector experiences, achievements and perspectives. Another lecture was co-ordinated in April 2007, for the retiring Secretary of the Department of Agriculture, Fisheries and Forestry, Ms Joanna Hewitt, attended by 160 agency heads and senior executives.</p><p>Retiring Department of Agriculture, Fisheries and Forestry Secretary, Joanna Hewitt, delivering her Valedictory lecture, April 2007.</p><p>Launch of Implementation of Programme and Policy Initiatives In October 2006, the Commission lent its SES event management expertise to the Australian National Audit Office and the Department of the Prime Minister and Cabinet (Cabinet Implementation Unit), to assist in the launch of a joint better practice guide Implementation of programme and policy initiatives: making implementation matter. The guide was officially launched at Old Parliament House by the Auditor-General, Mr Ian McPhee and the Secretary of the Department of the Prime Minister and Cabinet, Dr Peter Shergold. The Commissioner also addressed the audience, which numbered almost 200. Executive Leadership Dimensions—EL2 residential The Commission launched a new Executive Level (EL) 2 residential programme Executive leadership dimensions in January 2007. The programme is a key component of the Commission’s renewed emphasis on building the capability of the SES feeder group, which has been identified in recent State of the Service reports as a priority for all agencies across the APS with the impending retirement of many SES over future years. This programme focuses on practical aspects of leadership in the APS and provides an opportunity for participants to reflect on their professional role and engage in a challenging and collegiate learning environment. It focuses on contemporary behaviours required to be highly effective at the EL2 level. Two residential programmes have been held in 2006–07, attracting 44 participants. The residential programmes have received excellent feedback with previous participants advising that the course provided them with invaluable insight into the skills required of an EL2. Participants felt that the programmes also managed to provide them with relevant and practical tools including strategies for performance management, influencing and people management. Integrated Leadership System The Integrated Leadership System (ILS), released in 2004, continues to form the basis of many SES and EL development programmes. The original ILS handbook describes the leadership capabilities and behaviours from EL 1 to SES Band 3. Increasingly, however, the ILS is being integrated into learning and development programmes throughout the APS. During 2006–07 the Commission released an ILS handbook for APS levels which describes the leadership capabilities and behaviours for APS 1–6 levels. The ILS is supported by a range of tools to assist agencies and individuals implement the ILS in their workplaces. During 2006–07, 22 ILS programmes tailored for agencies, with 239 agency employees participating and eight public ILS programmes for 126 participants were conducted outside Canberra. Further information on the suite of ILS products can be found at: http://www.apsc.gov.au/ils/ Leadership development network The Commission coordinates a Canberra-based Leadership Development Network (LDN) that aims to build better practice in leadership development by sharing ideas on the diversity of leadership approaches across the public sector. The LDN runs a series of breakfast seminars and an annual forum to explore current issues and trends in leadership and leadership development. The Commission chairs and supports the network steering group, which includes members from a range of agencies, which oversees decisions on topics, speakers and the overall direction of the LDN. There has been an average of 117 registrations per LDN event over the last 12 months, an increase of 31 per cent on the previous year. There has also been a significant growth in subscriptions as can be seen in Table 11 below. Table 11: Attendance at leadership development network events 2003–07 Financial Total Total network Total Average attendance per year subscribers contacts events event 2003–04 38 (-24%) 245 (+12%) 4 61 2004–05 51 (+34%) 459 (+87%) 6 89 2005–06 78 (+53%) 534 (+16%) 6 91 2006–07 86 (+10%) 586 (+10%) 5 100</p><p>Note: Figures in brackets represent percentage change on previous year. During 2006–07 presentations to the LDN have included: Centrelink’s organisational change survey recruiting and retaining staff in a high pressure environment leadership, culture and change leadership in crises and disasters powering up leadership through mentoring. Visit http://www.apsc.gov.au/leadership/network.htm for further details. Career Development Assessment Centre The Career Development Assessment Centre (CDAC) continues to offer excellent leadership development opportunities to high-performing EL2 staff from across the APS. The ongoing success of the centres provides a benchmark for the Commission’s wider renewed focus on strengthening the leadership capability of the SES feeder group. Thirteen CDACs were delivered during 2006–07, more than the forecast nine - with a total of 156 participants. Staff from the Australian Tax Office and the Department of Finance and Administration participated extensively in the Centres during 2006–07, with 18 and 11 participants, respectively. Feedback from CDAC participants continues to be positive, with all three performance measures exceeding the target of 90 per cent. The success of CDAC depends on the support provided by agencies, including the provision of observers. Observers play a crucial role bringing their experienced perspectives and contributing to the rigorous assessment process. During 2006–07 the Commission successfully conducted observer training, with a total of 15 new SES Band 2s and three APS officers trained. Further information on CDAC can be found at: http://www.apsc.gov.au/leadership/cdac.htm http://wayback.archive.org/web/20120227114245/http:/www.apsc.gov.au/annualreport/0607/t wooutputtwotwo.htm Programme delivery The Commission delivers learning and development programmes that build the knowledge, capabilities, skills and behaviours that agencies require of their employees in the modern APS environment. In meeting these expectations, the programmes also assist individual public servants to further pursue their career aspirations. Table 12: Performance information: output 2.2—programme delivery Target Result Quantity Number of programmes delivered—target is 1421. Exceeded. 2152 programmes were delivered. SES Orientation Not achieved. 54% of new entrants to the Percentage of new entrants to the SES attending SES attended an SES orientation in the first an orientation in the first 1-3 years—target is 1-3 years. However, this is a substantial 100%. improvement on the result of the previous financial year (which was 33%).</p><p>Quality APS 1–6 and EL programmes Percentage of responding participants who when surveyed give a rating 5 or 6 on a 6-point scale for: Exceeded. 88% of respondents gave a rating achieving objectives—target is 85% of 5 or 6 on a 6-point scale. Exceeded. 89% of respondents gave a rating programme content—target is 85% of 5 or 6 on a 6-point scale. Exceeded. 92% of respondents gave a rating quality of presenters—target is 85% of 5 or 6 on a 6-point scale. SES Orientation Percentage of responding participants who when surveyed give a rating of 5 or 6 on a 6-point scale for: Exceeded. 89% of respondents gave a rating achieving objectives—target is 85% of 5 or 6 on a 6-point scale. Exceeded. 92% of respondents gave a rating programme content—target is 85% of 5 or 6 on a 6-point scale. Not achieved. 79% of respondents gave a quality of presenters—target is 85% rating of 5 or 6 on a 6-point scale. Consultancy Services—client satisfaction Percentage of responding surveyed clients who used services provided direct to agencies by brokering delivery from the panel who give an average rating of 5 or 6 on a 6-point scale, for how well the programme was: Exceeded. 92% of responding clients gave tailored and delivered—target is 85% an average rating of 5 or 6 on a 6-point scale. Not achieved. 61% of responding clients coordinated and administered—target is 85% gave an average rating of 5 or 6 on a 6-point scale.</p><p>Table 12: Performance information: output 2.2—programme delivery Target Result Estimated price: $7.085 million Actual: $8.217million</p><p>SES orientation The Commission’s three-day SES orientation programme was delivered fifteen times during 2006–07. The programme provides new senior executives with the essential information they need to operate effectively in the APS environment. The programme also gives SES officers the opportunity to build valuable networks with their peers across the APS. The programme is aligned with the capabilities identified in the Integrated Leadership System (ILS). Topics covered include governance and the relationship between Ministers and the APS. During the course of the programme SES officers have the opportunity to hear from guest speakers ranging from Portfolio Secretaries, Ministerial chiefs of staff, senior executives and executive assistants who work for SES officers. Two hundred and twenty-two senior executives attended the orientation programmes in 2006–07, an increase of 35 per cent on the previous year. Table 13: Attendance at senior executive orientation programme 2003–07 Financial year Total participants Total events 2003–04 110 7 2004–05 67 (-39%) 5 2005–06 164 (+ 144%) 11 2006–07 222 (+ 35%) 15</p><p>Note: Figures in brackets represent percentage change on previous year. APS induction: improved support for new starters in the APS The 2005 Management Advisory Committee (MAC) report Managing & sustaining the APS workforce highlighted the importance of ensuring that new employees to the APS have the necessary skills and knowledge to work effectively in the unique APS environment. When the Commission commenced development work on a set of APS induction materials, as a result of the MAC report, it was focused on creating a product that included positive and consistent messages about: working in the APS and the benefits of an APS career the professional APS culture—cooperative, fair, apolitical and impartial being responsive to the Government of the day being accountable. The APS induction materials were also part of the broader Commission work during 2006–07 aimed at supporting the APS as an employer of choice—see also outputs 1.2–employment services and 3.2– promoting better practice. A CD of seven e-learning modules for use as a resource by agencies in the development of their induction and orientation programmes was officially launched by the Commissioner in August 2007. The modules were developed following extensive consultation with many APS agencies and included a focus group, consisting of representatives from 12 APS agencies as well as the Department of Parliamentary Services. The CD is complemented by a facilitated programme which has been developed by the Commission as part of the public programmes calendar for delivery in 2007–08. Visit http://www.apsc.gov.au/apsinduction/ for further information. Graduate development The development of graduates is an important focus for the Commission’s learning and development products, events and services. The Commission continually reviews and evaluates its programmes to keep abreast of opportunities that will increase graduates’ knowledge and enhance their skills and contributions within the APS. In 2006–07 there was increased interest in the Commission’s annual A taste of Government seminar with a record number of 617 graduates attending this year’s seminar in April 2007, compared with 382 graduates in 2005–06. The seminar was presented by Dr Peter Shergold, Secretary of the Department of the Prime Minister and Cabinet and the Deputy Public Service Commissioner, Ms Lynne Tacy. The Graduate update series continued to be popular in 2006–07. One event was held in December 2006, attended by 124 graduates. This compares with two events held in 2005–06 which attracted a combined attendance of 143 graduates. Both the Graduate update series and A taste of Government seminar are viewed by agencies as an important component of a well-rounded graduate year in the APS. Visit http://www.apsc.gov.au/apslearn/ for further details.</p><p>Department of the Prime Minister and Cabinet Secretary, Dr Peter Shergold, addressing the A taste of Government seminar, April 2007</p><p>APS 1–6 programmes Meeting the needs of the APS 1–6 cohort’s ongoing learning and development requirements is essential to the successful delivery of government services. Overall, at 30 June 2006, the APS1–6 cohort accounted for 74.4 per cent of ongoing employees in the APS. The Commission, therefore, ensures its learning and development suite of programmes are relevant and topical. In Canberra in 2006–07, 126 APS 1–6 programmes were delivered attracting 2,047 participants. While this represents an overall decrease of 6.67 per cent in the overall number of programmes delivered, there was an overall increase of 4.17 per cent in numbers of participants attending. In 2006–07 the most popular programmes were: Interview tips and techniques Marketing yourself into an Executive Level position Strategic thinking. Further information on the suite of APS 1–6 programmes can be found at: http://www.apsc.gov.au/apslearn/ EL programmes In 2006–07 63 Executive Level (EL) programmes attracted 1,095 participants representing a 34.19% increase in the number of participants in the previous year. The most popular EL programmes in Canberra throughout the 2006–07 period were: Executive Level 1 transition Executive Level 2 transition Shaping strategic thought Writing with influence Influencing skills. The EL updates continues to offer EL staff the opportunity to keep up to date with major changes that affect the APS and assists executives to consider the implications for themselves, their staff and their agency. The EL updates sessions offered in Canberra continued to attract high levels of participation in 2006–07 with a total attendance of 331 participants at three sessions—an increase of 67 per cent participation on the previous year which had a total of four updates. The topics covered in 2006–07 were: Avian influenza virus – the Government's disaster management strategy: what is involved Audit as a valuable governance tool State of the service report. The updates focus on the Shapes strategic thinking criteria of the Integrated Leadership System (ILS) and in particular harnessing of information and opportunities. Further information on the suite of EL learning and development programmes can be found at: http://www.apsc.gov.au/ellearn/ Consultancy services The Commission can customise programmes and services to meet the particular needs of agencies in a flexible and cost-effective manner. For many government organisations, this method has grown to become the preferred option. Tailored, in-house delivery provides direct access to quality training and development in a way that maximises opportunities and achieves considerable cost savings. Client managers within the Commission, in partnership with the panel of consultants, can help agencies assess their people issues, culture and needs to propose tailored solutions. The consultancy panel provides access to a broad range of tested and experienced providers with a track record of delivering within an APS context. Approximately 46 agencies accessed our services during 2006–07 with over 1,300 programmes being delivered. Significant achievements in 2006–07 included: working in partnership with Centrelink; the Departments of Health and Ageing; Families, Community Services and Indigenous Affairs; and Transport and Regional Services to develop their in-house training calendars working with the Department of Transport and Regional Services to source a consultant for the development and delivery of its SES executive leadership development workshop. working with the Child Support Agency to arrange customer focus training for all agency staff working with the Department of Immigration and Citizenship (DIAC) to source a consultant for projects such as their 'Business-focussed detail process mapping’ and 'Visa Transformation Strategy'. These projects were identified as client service improvement projects that will have significant impact on DIAC's State and Territory service delivery network. Table 14: Consultancy services: programmes most in demand Programme Number of programmes presented Writing skills 183 Leadership/management skills 137 Procurement and contract management 91 Table 14: Consultancy services: programmes most in demand Programme Number of programmes presented Project management 66 Programme management 63 Coaching services 56 Policy 55</p><p>The Commissioner welcomed over 118 consultants on the Commission’s Leadership, Learning and Development Panel (LLDP) to a briefing session held at the Commission on 5 July 2006. The briefing session provided an overview of the panel arrangements and conveyed the message of our continued dedication to providing client-focused service to assist with building the capabilities across APS agencies. The Commissioner drew attention to the APS Values and Code of Conduct and the Commission’s expectation that consultants would abide by and incorporate these into their services. The briefing session also provided an opportunity for staff from the Programmes Group to introduce themselves to the panel members and answer their questions. The Commission has recently completed a review of the LLDP. The review took into account feedback from APS agencies and suppliers and found that the panel is generally working well. Key recommendations from the review are an expansion of the panel to address new and increased demand from agencies, as well as the need for some service improvements. Visit http://www.apsc.gov.au/learn/custom.htm for further details. Programmes outside Canberra During 2006–07, 101 calendar programmes were delivered in Melbourne, Sydney, Adelaide, Brisbane, Perth and other locations outside of Canberra on a range of topical issues including: financial management; conducting investigations; executive assistant programmes; supporting staff with mental illness; writing skills; managing and leading; and project management. The Commission continues to respond to an increasing demand for tailored and agency-specific programmes. Staff in regional offices negotiated and arranged delivery of 605 inhouse programmes to APS and Commonwealth agencies. In the majority of circumstances inhouse programmes were facilitated by Commission staff members that have subject matter expertise on areas such as: staff selection and recruitment; bullying and harassment prevention; the APS Values and Code of Conduct; and the Integrated Leadership System. Early in 2007 the Commissioner addressed senior managers in all states and territories to highlight key findings and future challenges for the APS as identified in the State of the service report 2005–06, including discussion on the leadership, learning and development needs of non-Canberra based staff and how best to respond to these. In Victoria, the current deed of agreement to provide learning and development services through the Tasmanian Training Consortium to both APS and state sector employees in Tasmania was successfully extended. A number of calendar programmes were conducted in Tasmania throughout the year, providing not only an important opportunity for learning but also for cross-jurisdictional networking of participants. National and international programmes The Commission’s role in providing or assisting with the provision of national and international programmes continued to be of a strategic nature during 2006–07. Domestically, the Commission continued to be involved in the Australia and New Zealand School of Government, the Public Sector Management programme and the Public Sector Training Package. On the international stage: the Commission again delivered two outstanding Leading Australia’s Future in Asia (LAFIA) programmes; worked cooperatively with other jurisdictions in ensuring that a highly successful Commonwealth Association of Public Administration and Management (CAPAM) biennial conference and an associated meeting of public service ministers, took place in Sydney; and delivered two Pacific Public Sector Leadership programmes. Table 15: Performance information - Output 2.3—National/international programmes Target Result Quantity Number of Leading Australia’s Future Exceeded. Two LAFIA programmes delivered. LAFIA in Asia (LAFIA) programmes delivered brings together senior executives from the —target is 1 per annum. Commonwealth, State and Territory public to increase their understanding of significant change drivers in the region. The first LAFIA programme for 2006–07 involved a study tour to Papua New Guinea, Solomon Islands and Fiji during the period 3–17 September 2007. The second LAFIA programme involved a study tour to Vietnam and Japan during the period 3–24 June 2007. Number of Australia and New Zealand The Commissioner stepped down from the ANZSOG School of Government Board Board in December 2005. Since January 2006 the meetings which the Commission Commonwealth perspective has been provided to Board attends and at which the Commission meetings by Dr Peter Shergold (Secretary of the provides the Commonwealth Department of the Prime Minister and Cabinet), who is perspective—target is 75% of the current Chair of the Board. The target will be meetings held. amended in the relevant chapter of the next Portfolio Budget Statement. Number of Public Sector Management Achieved. The Commission provided secretariat services Programmes Board meetings for to 100% of Public Sector Management Programme which the Commission provides Board meetings. secretariat services—target is 100% of meetings held. Number of Government Industry Skills Exceeded. The Commission contributed the Council meetings at which the Commonwealth perspective at 100% of Public Sector Commission contributes the Industry Skills Council meetings. Commonwealth perspective—target is 75% of meetings held. Number of Australian-based 2006–07 Exceeded. The Commonwealth Association of Public Commonwealth Association for Public Administration and Management 2006 Biennial Administration and Management Conference, Rising to the challenge: enhancing conferences—target is 1 public sector capability, was held in Sydney in October 2006. The Commission performed a lead role in organisation and management of the conference. In addition, the Commission performed a leading role in organising the inaugural Commonwealth Ministers Forum on Public Service Development. Both events received excellent participant feedback. </p><p>Quality Achieved. While a specific percentage result is unable to Percentage of responding LAFIA be identified, direct feedback provided by clients participants who when surveyed Table 15: Performance information - Output 2.3—National/international programmes Target Result indicates a high level of satisfaction by participants with indicate a high level of satisfaction the LAFIA programme. with the programme and give a rating of 5 or 6 on a 6-point scale for: achieving objectives programme content programme coordination and administration. Target is 85%.</p><p>Estimated price: $1.670 million Actual price: $2.467 million</p><p>Leading Australia’s future in Asia LAFIA brings together senior executives from the Australian, state and territory public services to increase their understanding of significant change drivers in the region. The study programmes include meetings with government officials, business and community leaders. LAFIA aims to: provide background and context for the international dimension of senior executive responsibilities enable senior executives to respond strategically to changes in the Asia–Pacific region develop networks and contacts amongst Australian participants and with their overseas equivalents. Over 190 senior executives, from the Australian, state and territory governments, as well as from New Zealand, have participated in LAFIA since it commenced in 1994. In 2006–07 the Commission led the following two programmes: LAFIA (Pacific) 2006, with 19 senior leaders undertook a two-week study of Papua New Guinea, Solomon Islands and Fiji. LAFIA (Asia) 2007, with 12 senior executives undertook a three-week study of Vietnam and Japan. LAFIA exposes participants to a range of high-level business, government and academic leaders, both in Australia and overseas. The Commission works closely with Australian diplomatic representatives, supporting participants to gain a better understanding of how the Department of Foreign Affairs and Trade whole-of-government engagement works. The Crawford School of Economics and Government at the Australian National University (ANU) provide the academic content for the programme. The Commission will lead the next LAFIA (Pacific) in September 2007, which will focus on regional neighbours where the Australian Government is working in partnership to support governance and public safety outcomes. The programme participants will visit Papua New Guinea, Vanuatu and Samoa. Australia and New Zealand School of Government The Australia and New Zealand School of Government (ANZSOG) is a first-tier professional school established collaboratively by a consortium of Australian and New Zealand governments, universities and business schools in 2002. Governance The Australian Government is a foundation member of ANZSOG and is represented by Dr Peter Shergold, Secretary of the Department of the Prime Minister and Cabinet, who is also Chair of the ANZSOG Board. An academic board is responsible for encouraging and maintaining the highest possible standards in curriculum and teaching in ANZSOG’s programmes. Teaching The Commission, in consultation with other agencies, has been actively involved in assisting ANZSOG to ensure it meets the needs of the APS by providing high quality, high profile programmes which represent value for money. The Australian Government has a commitment until 2008 to fund 20 and 30 places respectively, on the School’s two annual flagship teaching programmes The programmes are: Executive Fellows Programme (EFP), a three-week residential programme targeted at SES Band 2 and 3. The 2006 EFP had a total of 80 participants from Australia, New Zealand and the Pacific, including 46 per cent from the APS Executive Masters of Public Administration (EMPA), a two-year part-time master’s programme targeted at high-performing Executive Level 2s and equivalents. Over 130 new students commenced the 2007 programme, including 20 per cent from the APS. The EMPA programme core subjects are taught in 5 day residential blocks in various locations in Australia and New Zealand. The level of participant satisfaction with ANZSOG teaching programmes in 2006–07 has been extremely high. A major review was conducted of the EMPA programme in late 2006 to ensure its relevance and currency. Feedback from the participants on the EFP, showed the course as the best of its type available to senior executives in Australia. Research The ANZSOG Research Committee coordinates the school’s research priorities. Dr Ken Henry, Secretary to the Department of the Treasury, is the Australian Government representative and chair, of the research committee. The committee contributes to continued public sector reform by supporting the development and transmission of good practice in both policy and management. It also informs debate on key issues in public administration and maintains the quality and relevance of ANZSOG’s teaching programme. In 2006–07, the Australian Government is providing financial support to ANZSOG research activities through two mechanisms: a $10 million grant made to the ANZSOG Foundation in May 2005, which is governed by a deed of agreement. Interest generated from the grant is used to support the Sir John Bunting chair of Public Administration at the ANU and other academic appointments to develop research activities. The Commission assumed responsibility for management of the grant from the Department of the Prime Minister and Cabinet in April 2006, following Dr Shergold’s acceptance of a position on the ANZSOG board. Effective financial and qualitative reporting requirements have been developed with ANZSOG consistent with the deed of agreement. ANZSOG will provide a full account of how the interest has been spent early in 2007–08. The Australian Government committed to provide $200,000 per year for three years between 2003 and 2006 to support ANZSOG's research capacity. The ANU matched this funding. In 2006–07, the MAC Committee is providing funding for ANZSOG’s research programme through a $200,000 grant with the cost to be shared equally among MAC agencies. Two research proposals were approved by MAC—the first project relates to the role of central agencies in government strategy formulation across ANZSOG jurisdictions. The second focuses on factors relating to attraction, recruitment and retention in the APS, including succession planning. On 28–29 June 2007, ANZSOG held its annual conference on collaborative relationships: Governing through collaboration: managing better through others. The key themes of the conference were: collaboration in the implementation of public policy; national and international collaboration; collaboration with targeted clients and collaboration with the community, including non-government organisations. In its role of building leadership in public management and policy, ANZSOG invited keynote speakers from Australia, New Zealand, the UK and Canada. In June 2007, ANZSOG released a publication, A passion for policy—essays in public sector reform, edited by Professor John Wanna who currently holds the Sir John Bunting Chair of Public Administration. The publication takes its title from and includes, a speech given by the Commissioner, A passion for policy, on 29 June 2005. Public sector management programme Commencing in 1992, the Public Sector Management programme targets motivated middle to senior managers—at the APS 6, EL1, EL2 and equivalent levels providing them with broader skills for use at their present level as well as skills needed for more senior positions. The Commission coordinates Commonwealth, State and Territory participation by providing secretariat services to a board of management that oversees the programme. Mr Jeff Whalan, Chief Executive Officer of Centrelink, is the current chair of the board. An evaluation of the programme in 2006–07 from the Commonwealth perspective indicated that enrolment and completion rates had declined over recent years. As a result of the findings in the report, the Commission has committed to raising the awareness of the programme throughout the APS and agreed to provide a greater level of support from the secretariat to include leadership of national projects. Public sector training package The Public Sector Training Package provides the basic building blocks for the vocational education and training system to respond to the training needs of the public sector. It provides individuals with clear skills and career pathways through recognised national qualifications and gives Commonwealth agencies access to the National Training Framework. The training package is maintained by Government Skills Australia (GSA), the industry skills council for government and community safety. The Commission represents the Commonwealth on the Public Sector Industry Advisory Committee which is the authoritative and representative voice in advising GSA and through it, the Government, on public sector vocational and educational training needs. The Commission actively promotes the training package to APS agencies as an important learning and development option. During 2006–07 the Commission made a commitment to gain accreditation as a Registered Training Organisation (RTO) so that it can provide nationally accredited training programmes and skills recognition across government agencies. Funding for this initiative was confirmed in May 2007 and the project to establish RTO status will begin early in 2007–08. The Commission will use qualifications and competencies from the Public Sector Training Package in designing assessment pathways and accreditation tools. Commonwealth Association for Public Administration and Management 2006 biennial conference The Commonwealth Association for Public Administration and Management (CAPAM) biennial conference is an important event on the global public sector calendar which brings together delegates from 53 Commonwealth countries. The Australian Government agreed to host the 2006 biennial conference in Sydney. The conference was a great success for the public sector across the Commonwealth and demonstrated that by working together Commonwealth countries can be successful in supporting democratic governance, implementing developments in policy, public sector reform and improving service delivery. The conference was also a strong demonstration of successful cross-government cooperation between the Australian, New South Wales and New Zealand governments, who successfully worked together with the CAPAM Board. The conference featured high quality speakers across the Commonwealth and interesting ‘learning journeys’ to Australian and NSW government agencies. The Commissioner made a joint presentation, with the then Secretary of the Department of Human Services, Ms Patricia Scott, on the subject of: Fads and fashions in public sector reform. Some of the key messages to emerge from the conference were: act local and draw from a global menu have a line of sight with outcomes working in partnerships and cross government collaboration to deliver better services to citizens. As with the introduction of the learning journeys in 2004, the Australian Steering Committee recognised the importance of offering new and interesting elements to the conference programme. A particular focus of the 2006 conference was encouraging young people from the Commonwealth as potential future public sector leaders to participate in the conference and consider how they can contribute to enhancing public sector capability. The steering committee introduced the Young Professionals debate to the conference programme, which featured debaters from Canada, New Zealand, Singapore, South Africa and Australia. The Steering Committee believed these young people showed real talent as debaters, engaging the delegates on the role the public sector plays in any democracy. The Steering Committee encourages future host countries to consider ways in which to involve and engage young people in future CAPAM events, in the belief that, around the world, public services need young people with skills and experience to work together to make our countries better places for all. The next biennial conference will be held in Barbados in 2008, but in the meantime Australia will continue to promote the good work CAPAM performs in bringing people together and exchanging good practice in public sector reform. Visit http://www.capam.org/biennial_conferences/australia_2006.html for further details Commonwealth Ministers’ Forum on Public Sector Development The inaugural Commonwealth Ministers’ Forum on Public Sector Development was held on 26–27 October 2006 to coincide with the CAPAM biennial conference in Sydney. The aim of the forum was to advance public sector reform and development across the Commonwealth and maximise ministerial interaction to share ideas on critical issues facing governments. The issues of public sector transformations have been on the Commonwealth agenda for more than a decade but there has been no forum for Ministers responsible for the public service to periodically address common issues. This lack of collective action was considered by the Commonwealth Secretariat as hampering ongoing communications across the Commonwealth. The outcomes of the forum were to set a forward policy agenda to sustain momentum between gatherings and publish a State of Commonwealth report at the conclusion of the event. The forum achieved considerable progress towards advancing public sector development in the Commonwealth. It demonstrated that Commonwealth countries can come together to discuss and develop concrete measures to support and modernise democratic governance, leadership capability and improvements in access to government services. The forum provided a ‘low key’ environment for Ministers and senior officials to engage in frank and open discussion. Twenty-nine Commonwealth Ministers, five Commonwealth and regional stakeholder organisations and sixty-five senior officials and High Commissioners were represented at the forum. Ministers acknowledged the need to hold future forums and agreed on priorities for action relative to the three themes of the forum. The Commonwealth Secretariat agreed to report on progress against the forward agenda. The Australian Minister Assisting the Prime Minister for the Public Service and his New Zealand counterpart acted as alternate hosts and champions and senior officials from Australia and New Zealand facilitated discussions. This arrangement worked particularly well. The Commonwealth Secretariat, located in London, managed the forum with some assistance from the Australian Government through the Commission. Better practice and evaluation Output 3 is derived from the Public Service Commissioner’s statutory role outlined in sections 41 and 44 of the Public Service Act 1999 (the Act). The Better Practice and Evaluation Groups of the Australian Public Service Commission (the Commission) contribute to improved Australian Public Service (APS) performance through preparation of the Commissioner’s State of the Service Report to Parliament and through evaluation and research into current challenges facing the APS. The Groups promote and advise on better practice approaches to agency performance, people management and governance: they provide ongoing support to the Management Advisory Committee and Public Service Commissioners Conferences. Achievements During 2006–07 the Commission’s achievements under Output 3 included: development and launch of Public calling: the APS Indigenous career ambassadors campaign conducting the Drawing together national art competition and exhibition hosting the Cross-jurisdictional forum on Indigenous employment in the public sector co-ordinating and facilitating the national Indigenous entry level employment intake for APS agencies development of Cracking the code, a guide for potential job-seekers looking to work in the APS substantial progress towards the development of Better, faster: streamlining recruitment in the APS designed to help agencies streamline and improve their recruitment processes winning the UN Public Service Award in the category of ‘Improving transparency, accountability and responsiveness in the Public Service’ for the State of the Service report publishing the State of the Service report 2005–06 with a new emphasis on: employee engagement, organisational effectiveness and the effectiveness of the APS in working with the community maintaining the APS employment database (APSED), including improving the regularity and integrity of data provided to APSED by implementing the Online Employee Provided Information (OEPI) system to enhance the quality of employee provided data and APSED’s effectiveness as a tool underpinning the Commission’s priorities providing secretariat support to the Management Advisory Committee (MAC) for the preparation of the two reports launched in 2006–07: Employment of people with disability in the APS and Reducing red tape in the Australian Public Service and the development of a third report Note for file: a report on recordkeeping in the Australian Public Service delivering an evaluation of agencies’ approaches to recruiting, developing and retaining employees with disability in the APS forming the basis of a good practice toolkit, Ability at work: tapping the talent of people with disability completing and publishing Handling misconduct: a human resources practitioner’s guide to the reporting and handling of suspected and determined breaches of the APS code of conduct and Summary guide. Price for Output 3 The total price for Output 3 in 2006–07 was $9.800 million. This was $0.354 million higher than the estimated price of $9.446 million published in the Portfolio Budget Statements 2006–07. Indigenous employment Employment of Aboriginal and Torres Strait Islander (Indigenous) people in the APS provide an important contribution to achieving government policy development and programme and service delivery. It also contributes towards achievement of social and economic equity for Indigenous Australians. Continuing to foster Aboriginal and Torres Strait Islander employment in both mainstream and Indigenous-specific areas in the APS through strategies to attract, recruit, develop and retain Indigenous employees was a top priority for the Commission during 2006–07. The vehicle for this has been through implementation of the APS employment and capability strategy for Aboriginal and Torres Strait Islander employees. Table 16: Performance Information - Output 3.1—Indigenous Employment Target Result Quantity 1. Medium and long term strategies Achieved. Strategies under the APS employment and developed and implemented to support capability strategy for Aboriginal and Torres Strait employment and retention of Aboriginal Islander Employees have been implemented and and Torres Strait Islander peoples in the planning has begun on a replacement strategy. APS. 2. Number of agencies involved in Achieved. 27 agencies were involved in the Graduate initiatives to increase the knowledge, initiative, 25 in the NICP initiative, 35 in the entry level skills and capacity of Indigenous initiative, and 25 in the Indigenous capability fund. employees and their employers across the APS. 3. Satisfaction with levels of access to Achieved. The State of the Service Report 2005-06 support networks and development programmes, as measured by response data indicated that 63% of Indigenous employees to annual State of the Service employee were satisfied with their access to learning and surveys development. This was similar to the APS overall (61%) (However, the low number of Indigenous respondents means that this data should be treated with caution). No data was collected on levels of access to support networks.</p><p>4. Agencies’ implementation of strategies Partly Achieved. The State of the Service Report has a positive impact on engagement 2005–06 indicated that the separation rates for and separation rates of Indigenous Indigenous employees fell from 4.3% to 4.2% in employees—target is proportional 2005–06. While the engagement rate for Indigenous representation consistent with the wider staff also fell from 2.6% to 1.8% in the same period, APS workplace and community. the number of Indigenous employees engaged increased from 295 to 372.</p><p>Quality 1. Levels of Aboriginal and Torres Strait Achieved. The State of the Service Report 2005–06 Islander employee satisfaction with reported that overall, job satisfaction levels of working in the APS—target is an Indigenous staff were 86%. This compared to a figure increase compared to the State of the of 72% for 2004–05. Service Report timeline data. 2. Levels of agency participation in cross- Achieved. The number of agencies participating in the agency and cross-jurisdictional projects pathways projects increased and a cross-jurisdictional forum was held</p><p>Table 16: Performance Information - Output 3.1—Indigenous Employment Target Result Estimated price: $4.338 million Actual: $4.494 million</p><p>Implementation of the APS Indigenous employment strategy The APS employment and capability strategy for Aboriginal and Torres Strait Islander employees was announced by the Australian Government in August 2005 with funding of $6.4 million over three years. This strategy aims to increase employment and career development opportunities for Aboriginals and Torres Strait Islander Australians in the APS. The strategy involves five core elements: supporting whole-of-government work on Indigenous policies and programmes pathways to APS employment supporting Aboriginal and Torres Strait Islander employees in the APS helping agencies to be good employers of Aboriginal and Torres Strait Islander employees partnerships. Supporting whole-of-government The Commission facilitated a pilot mentoring programme for Indigenous Coordination Centre (ICC) managers as selected ICC managers were provided with a mentor at the Senior Executive Service (SES) Band 3 level. Feedback from the programme has been extremely positive with ICC managers indicating that the mentoring relationships have been invaluable. In turn SES mentors have also indicated that they have developed an on the ground perspective which has assisted them to understand the complexities and challenges of working in a whole-of-government environment. It is expected the programme will be rolled out to the remaining ICCs in 2007–08. A two day workshop entitled Aboriginal and Torres Strait Islander policy in practice has been developed and conducted for SES and SES equivalents, focusing on the current arrangements affecting Indigenous affairs. The workshops cover working in the whole-of-government context and the programme is on the Commission’s public programmes calendar which can be found online at: http://www.apsc.gov.au/learn/ Pathways to APS employment The Commission, in partnership with other Australian Government agencies, administered three individual pathways initiatives in 2006–07 to identify and assist Aboriginal and Torres Strait Islanders seeking careers in the APS. One of the three pathways initiatives included the successful Indigenous graduate recruitment campaign resulting in 25 Aboriginal and Torres Strait Islander graduates being engaged in a number of APS agencies. The 2008 graduate programme was advertised in May 2007 and the Commission is optimistic that the 2007–08 period will see similar participation by both APS agencies and Indigenous graduates. The Commission continues to work with the Department of Employment and Workplace Relations (DEWR) and again coordinated a bulk recruitment initiative under the National Indigenous Cadetship Project. Thirty-two cadets were engaged under this initiative in 2006–07 with applications for the 2008 programme opening in June 2007. In recognition of the need to develop alternative pathways into the APS for Aboriginal and Torres Strait Islander people who do not have tertiary qualifications or engagement in the university sector, the Commission conducted a recruitment initiative for entry level Indigenous staff. Sixty-two Indigenous entry level recruits were engaged nationally under this initiative. A memorandum of understanding with DEWR has secured the Commission’s role in distributing Structured Training Employments Project (STEP) funding to APS agencies as employees of entry level Indigenous staff through Commission programmes. The Commission also organised and funded Certificate level III and IV in Government and / or business training for the entry level recruits. Supporting employees Research has shown that one of the main reasons why Aboriginal and Torres Strait Islander employees may leave the APS is because of a lack of workplace support. As a result, in 2006–07 the Commission continued to provide targeted support to this group of employees. The Commission has continued to provide resources and secretariat support to the Indigenous Australian Public Service Employee Networks (IAPSENs) in Canberra, Adelaide, Brisbane, Melbourne, Perth, Sydney and Townsville. In 2006–07 the Commission assisted to initiate a network in Darwin and expects that several other networks will commence in other regional locations in 2007–08. In Victoria the APS Indigenous Employment Steering Committee was presented with a 2006 Executive Leadership Group Victoria Innovation Award for its work in organising the Us Government mob— making our mark event which included the creation of a banner.</p><p>Making our mark banner and Victorian state office staff receiving award</p><p>In New South Wales, the IAPSEN agreed to focus its energy on seminar-based activities with a learning component to help build the skills of members. The major event of the year was the Indigenous Employees Career Forum held at the end of July 2006. Over 70 Indigenous employees from around New South Wales attended. The focus of the forum was the value of networking and mentoring and the keynote address was delivered by Mr Tom Calma, the Aboriginal and Torres Strait Islander Social Justice Commissioner and Acting Race Discrimination Commissioner.</p><p>Indigenous Employees Career Forum participants including NSW IAPSEN Chair, Shane Williams and Mr Tom Calma, the Aboriginal and Torres Strait Islander Social Justice Commissioner and Acting Race Discrimination Commissioner</p><p>In June 2007, the West Australian Office of the Commission together with the Western Australian (WA) Department of Premier and Cabinet in conjunction with the IAPSEN, organised the one-day conference Stand up & be proud and Pathways to a successful career in the public sector for over 60 participants from the APS and WA state public sector. The conference was shaped around the topics of current trends in employment, networking and mentoring, career planning and promoting cultural understanding. Lieutenant General John Sanderson, WA Government Special Adviser on Indigenous Affairs, opened the conference with a breakfast address, followed by a series of talks and workshops presented by a range of prominent speakers.</p><p>Lt. Gen John Sanderson Stand up & be proud presentation</p><p>Horizons—the APS Indigenous mobility scholarship programme was undertaken for the first time in 2006–07. The programme was introduced to enhance career progression opportunities for high potential Aboriginal and Torres Strait Islander employees in the APS. The scholarship provides Indigenous APS 4–6 employees with the opportunity to experience a secondment of between 4–6 months within another APS department or agency. It also provides a scholarship grant of $15,000 to the participant’s home agency to help off-set the costs associated with releasing employees for secondments. Six participants were selected to take part in the Horizons programme in 2006–07 with secondments being undertaken at: the Department of the Prime Minister and Cabinet; Medicare Australia; the Department of Communications, Information Technology and the Arts; the Australian Crime Commission; DEWR; and the APS Commission. The Indigenous Capability Fund was established to assist small and medium sized APS agencies provide training and development opportunities for their Indigenous staff. Agencies that met a set of defined criteria were offered $500 for each ongoing Indigenous employee as at 30 June 2006. In 2006–07, $434,000 was distributed to 25 agencies to support the capability development of their Indigenous employees. Supporting employers During 2006–07 the Commission initiated the Public calling: APS Indigenous career ambassadors campaign targeted at attracting Indigenous people with the professional experience to work at the APS 5–6 and Executive Levels. Eleven Indigenous APS employees from various agencies act as ambassadors to promote the APS as an employer of choice to Aboriginal and Torres Strait Islander people. Eleven Indigenous career ambassadors were selected from a strong field of over 50 applicants. They were provided with training in leadership, media and presentation skills to promote the APS through a range of media including the internet, press advertising, radio and public appearances. A three-month National Indigenous Radio Service campaign featuring the ambassadors was launched in June 2007 complemented by a Public calling web interface featuring each of the ambassadors on the Commission’s website: http://www.apsc.gov.au/publiccalling/ Indigenous ambassadors</p><p>The Commission attended various careers fairs and job expos during 2006–07 to introduce the APS and promote it as an employer of choice to Indigenous Australians. The locations of the career fairs have included Redfern, Mount Druitt, Illawarra, Rockhampton and Canberra. Staff in the West Australian regional office showcased two Commission guides developed in 2005–06, Not just a job and Getting a job in the APS at Centrelink Employment Expos in Albany, Northam, Geraldton, Bunbury and Kalgoorlie. Staff in the Victoria/Tasmania office also provided APS employment information at the Centrelink Swan Hill employment expo. An Indigenous liaison officer was established within the Commission in 2006–07. This officer meets with Indigenous staff and supervisors of Indigenous staff to discuss the APS, the assistance available in the strategy and provide guidance on supervising Indigenous staff. The Commission is also developing an Indigenous cultural competency training programme for managers of Indigenous employees to be piloted in early 2007–08. Partnerships To ensure that employment outcomes for Aboriginal and Torres Strait Islander people are met, the Commission works collaboratively with both APS agencies and external organisations. For example, 25 APS agencies have been active partners in the range of pathways to employment initiatives being co-ordinated by the Commission. As a way of forging partnerships with other jurisdictions also involved in Indigenous employment, in May 2007 the Commission hosted a Cross-jurisdictional forum on Indigenous employment in the public sector. The forum was attended by representatives of the Commission and all state and territory public services (excluding Queensland). The forum was well-received and it was proposed that a similar forum be held during 2007–08. In order to inform stakeholders about the Commission’s Indigenous employment initiatives and other Indigenous employment matters, the Commission instigated an electronic newsletter Going public. Four editions of the newsletter were produced during 2006–07 and distributed nationally to a range of Indigenous and non-Indigenous stakeholders, both internal and external to the APS. Overall, significant progress has been made on the implementation of the APS employment and capability strategy for Aboriginal and Torres Strait Islander employees.</p><p>Drawing together This year marked the 40th anniversary of the 1967 referendum which is largely remembered as a vote to end discrimination against Aboriginal and Torres Strait Islander Australians and is recognised as a landmark event in Indigenous and non-Indigenous relations in Australia. The referendum proposed two changes to the Australian constitution: the removal of a discriminatory clause preventing the Federal Government from legislating for Aboriginal people; and deletion of Section 127 of the Australian Constitution which excluded Aboriginal people from being counted in the national census. Both proposals were accepted by an overwhelming 90 per cent of Australian constituents. To commemorate the significant anniversary of this historic event, the Commission developed Drawing together which was delivered in partnership with the National Archives of Australia, the National Museum of Australian and the Department of Families, Community Services and Indigenous Affairs. Drawing together comprised two major initiatives: a national art competition exploring reconciliation and promoting the employment of Aboriginal and Torres Strait Islander people in the Australian Public Service and an exhibition showcasing selected artworks from the Aboriginal and Torres Strait Islander Affairs Art Collection.</p><p>Drawing together art competition The Drawing together art competition was launched on 9 March 2007 at the National Archives of Australia and invited all Australians to explore the theme of reconciliation through the mediums of painting and print. Over 570 entries were received to the competition and an exhibition of 38 short- listed finalists was held at the National Archives of Australia from 2–28 July 2007. Indigenous artists dominated the field of winners taking out six of the seven prize categories, including the major prize which was awarded to Mr Shane Pickett, a Nyoongar man from South Australia. The competition offered prizes in seven award categories as identified in Table 17. Table 17: Drawing Together art competition – award categories, sponsors and winning artists Winning Artist and Award Category Sponsors Art Title Drawing together…. Australian Public Service Mr Shane Picket Major Award Commission, Attorney- ‘Travel lines General's Department, crossing the Treasury, Australian Customs Bunurroo Waterway’ Service</p><p>Indigenous Award Department of Families, Ms Daisy Community Services and Loongkoonan Indigenous Affairs ‘Bush Tucker in Nyikina Country’</p><p>Youth Award Department of Health and Ms Frances Belle Ageing Parker ‘Forty’</p><p>Caring for Country Department of Agriculture, Watarru Artists Award Fisheries and Forestry, ‘Kuka Kanyini’ Australian Quarantine and Inspection Service Table 17: Drawing Together art competition – award categories, sponsors and winning artists Winning Artist and Award Category Sponsors Art Title Partnerships between Centrelink Ms Kelly Dee Knight Community and Government Award ‘In Loving Memory of our Drover’s Boys’</p><p>The Australian Public Attorney- General's Mr Jandamarra Service Indigenous Cadd Employees Award ‘United Journey’</p><p>Commissioner’s Choice Australian Public Service Omborrin Award Commission ‘Gullaroonari-Munja Country’</p><p>In addition to the three partner agencies, 21 other agencies provided sponsorship to assist in raising the profile of the Australian Public Service as an employer that welcomes, values and encourages its Indigenous employees to enjoy diverse and rewarding careers.</p><p>Drawing together – showcasing the Aboriginal and Torres Strait Islander affairs art collection Drawing together – showcasing the Aboriginal and Torres Strait Islander affairs art collection was held at the National Archives of Australia from 18 May–15 July 2007 and generated a great deal of positive response from the public. The exhibition offered the general public the opportunity to view artworks from this collection for the first time. The works were collected over a 30 year period by various federal government departments with responsibility for the administration of Indigenous affairs and featured pieces by renowned artists such as Mr Jimmy Pike, Ms Sally Morgan and Mr Shane Pickett. Promote better practice In 2006–07 the promotion of better practice took on a number of new initiatives in relation to people management, organisational capability, and an emerging focus on the attraction, recruitment and retention of employees. Consultation with APS agencies remained a key component of the development and distribution of advice. There was also increased consultation with external stakeholders, particularly in relation to a number of the recruitment initiatives undertaken in 2006–07. Table 18: Performance information: output 3.2—promote better practice Target Result Quantity Number of better practice forums developed and offered: a) workforce planning summits— Not achieved. Only one summit was held in response to estimate 2 demand b) HR capability programme— Not achieved. 3 HRCDP Programmes were completed and 2 estimate 4 commenced. c) Comnet meetings—estimate 5 Mostly achieved. COMNET was ceased following a review of its effectiveness and purpose. It was replaced by the Corporate Management Forum, which meets a minimum of twice a year. Two Forums were held in 2006-07. d) development, networks and Exceeded. 94 activities were run in 200607 comprising special events – estimate 64 development workshops, networks and special events. </p><p>Quality 85% of responding participants, Exceeded. 95 per cent of respondents rated the development when surveyed, give a rating of workshops, networks and special events as 4.5 and above. 4.5 or above on a 6point scale for: achieving objectives programme content quality of presenters or relevant useful high quality </p><p>Estimated price: $1.730 million Actual: $1.982 million</p><p>Workforce planning In March 2007 the Commission held the workforce planning summit on the employment of people with disability. From rhetoric to reality explored practical strategies and solutions to support the recruitment and retention of people with disabilities in the APS. The summit included case studies, presentations and exhibition stands from a number of APS agencies, as well as peak bodies and service providers. The summit was attended by over 30 people, representing 20 APS agencies. Also in March 2007 the Commission worked in partnership with the Department of Immigration and Citizenship (DIAC) to facilitate shared approaches to workforce planning. DIAC led the Together in the public service (TIPS) initiative which brought together over 30 APS agencies interested in sharing practical approaches to workforce planning, recruitment, retention and succession planning activities. Attracting, recruiting and retaining skilled employees As reported in outputs 1.2—employment services and 2.2—programme delivery, the Commission undertook a range of new activities in 2006–07 aimed at: increasing the profile of the APS in the labour market encouraging people to apply for jobs and build a career in the APS attracting particular skill sets or groups to pursue APS careers improving APS management of the recruitment process, in order to remain competitive in the labour market retaining staff in the APS to build future workforce capability. Recruitment simplification project In its 2005 report Managing and sustaining the APS workforce, MAC emphasised that APS agencies need to develop a range of strategic responses in order to attract and retain skilled staff into the future. Current APS recruitment processes are potential barriers to attracting and selecting high quality candidates. MAC decided that: A working group of agencies—guided by advice from the Australian Public Service Commission on legislative requirements and better practice—will be formed to develop guidelines for streamlined recruitment processes. In response to the MAC decision, the Commission worked collaboratively with agencies to develop guidance on process mapping, streamlining and the simplification of recruitment exercises within the APS. The advice consists of a booklet and set of recruitment mapping cards that provide a means of systematically reviewing agency recruitment processes. The new resources Better, faster: streamlining recruitment in the APS was launched on 9 August 2007 with other tools aimed at attracting, recruiting and retaining staff and is available online at: http://www.apsc.gov.au/publications07/betterfaster.htm Cracking the code Cracking the code: how to apply for jobs in the Australian Public Service has been developed in response to another MAC decision that a short guide be developed to assist job applicants overcome perceived barriers to the APS selection processes, employment and classification arrangements. The guide assists in meeting an additional MAC decision that: The APS will become more active in marketing the range of employment and learning opportunities available within an APS career. The Cracking the Code publication has been developed as a series of fact sheets providing advice on: careers in the APS; how to apply for jobs; addressing selection criteria; and what to expect in APS interviews. The publication dispels a number of common myths about jobs in the APS and also provides advice on supporting the employment of Aboriginal and Torres Strait Islander people and people with disabilities. This publication was part of a suite of products launched in August 2007. Tertiary to work careers fair In March 2007 the Commission participated in the Canberra Tertiary to work careers fair. The goal of the fair was to provide students and recent graduates with access to a diverse range of employment, professional experience and opportunities to enhance their future career prospects. Tertiary to work provided the opportunity to raise the profile of the public service as a leading employer of students and graduates. The Commission focused broadly on careers in the APS, providing information and advice on: the wide range of employment opportunities in APS agencies the flexibilities and opportunities available within the APS advice for students on how to apply for APS vacancies, with the aim of making the task less daunting APS departments which may be of interest to students based on their qualifications and interests. The Commission also presented a session at the fair on applying for jobs in the APS. Recruitment of accountants The Commission is leading an initiative directly targeting the recruitment of accountants and finance professionals into the APS. A national marketing and rolling recruitment campaign will be run in the second half of 2007. In 2006–07 the Commission spent significant time in scoping the project and liaising with interested APS agencies. Through this initiative the APS will offer a diverse range of finance and accounting jobs from junior finance staff (APS4) to senior management levels (Executive Level 2). Improving people management Better people management series Following the June 2006 launch of the better practice guides on workforce planning, performance management and workplace absence, the Commission undertook a regional rollout of the guides via a series of workshops focussed on identifying key themes and strategies from each of the five publications. These publications were: Sharpening the focus—managing performance in the APS Fostering an attendance culture—a guide for APS agencies (booklet and quick reference guide) Building business capability through workforce planning Turned up and tuned in—a manager’s guide to maximising staff attendance. Delivered predominantly in the first and second quarters of 2006–07, workshops were held in all capital cities and attended by over 350 people. In addition, a number of workshops were delivered to human resource areas and line mangers at the request of individual APS agencies. Copies of the five publications were distributed to all APS agencies and approximately 22,500 additional copies were requested. Employee life cycle Significant research highlights the pivotal role line managers play in attracting, recruiting, developing and retaining talented people. The State of the Service Report 2005–06 identified management skills and positioning the APS as an employer of choice as critical challenges facing the APS, particularly in light of Australia's ageing workforce and labour market shortages. In response, the Commission is currently developing an online tool for line managers that identifies the core set of people management behaviours that make a difference to employee performance, commitment and growth. The tool will also link to other Commission and wider APS information sources and guides making it easier for line managers to access relevant and useful people management resources and support. A training workshop has been developed to complement the publication with rollout of the tool and workshops beginning in early 2007–08. Networks and forums Networks and forums continue to form part of our strategy for promoting better practice and improving people management practices throughout the APS. Each forum is targeted at different management levels across the APS and is designed to facilitate information sharing and encourage discussion and debate around people management approaches. SES HR Roundtable and HR Directors Forum The SES HR Roundtable and HR Directors Forum continue to provide a valuable opportunity for APS agencies to discuss current topics affecting the APS as a whole. Topics discussed at the HR Directors Forum throughout 2006–07 included: the employment of people with disability; superannuation; bullying and harassment; absence management; and improving recruitment. The SES HR Roundtable focused on issues such as business continuity, succession management, innovative HR practice and regional areas and exploring opportunities to work more closely with universities. Corporate Managers Network (COMNET)/Corporate Management Forum In the second half of 2005–06 the Commission undertook a review of COMNET following concerns that the forum was not operating effectively in providing opportunities to explore and discuss issues impacting on or likely to impact on APS agencies. As a result of the Commission’s evaluation, COMNET was replaced by the Corporate Management Forum (the Forum) in October 2006. The forum is focused towards a target audience of heads of corporate and consists of less frequent, higher level meetings, with an emphasis on discussing key topics affecting APS agencies. The forum meets twice a year, with meetings in 2006–07 focusing on the employment of people with disabilities and on the attraction and recruitment of employees to the APS. Regional networks Networks are important in keeping APS and other government employees connected and regional offices have an important role in facilitating networks. Throughout the year, APS and state government employees participated in human resource and better practice networks. In Victoria, two people management network meetings were conducted related to the theme of Health at Work. In New South Wales one of the most successful events run by its people management network was a meeting in May 2007 to preview the Commission’s new Induction e-learning programme (see output 2.2—programme delivery). In Western Australia, the Department of Immigration and Citizenship continued its sponsorship of the Human Resource Network. A number of events were organised including a lunch time seminar in May 2007 on Parliamentary considerations of the Budget presented by the Speaker of the House of Representatives, the Hon David Hawker MP and the Clerk of the House, Mr Ian Harris. HR capability development programme The Commission has continued to support building and developing HR practitioners with the HR Capability Development Programme (HRCDP). This year three programmes were completed and two additional programmes commenced. The programme is continuously updated to ensure that the most relevant issues and ideas are incorporated. Getting Connected Getting connected is a series of 90 minute seminars presented by senior public servants with extensive whole-of-government experience, followed by a facilitated group discussion to help apply the lessons learnt to participants’ current responsibilities. Two sessions were held in 2006–07 on the topics of: Doing whole-of-government and keeping your head: survival tips from connected government in Indigenous affairs Getting connected – lessons from whole-of-government: working across government- being practical about it. A total of 48 attendees representing 29 APS agencies participated in the 2006–07 seminars. Connected Government website In 2006–07 the Commission continued to support the Connected Government website which complements a range of activities within individual agencies and central agencies co-ordinating whole- of-government activities. An evaluation of the website was conducted during October–November 2006 to assess the relevance, effectiveness and value of the material as well as the level and patterns of usage. The evaluation methodology included an assessment of the site through visitor numbers, online survey responses, selected APS staff survey and focus groups. Overall the evaluation demonstrated that the website meets it original aim to promote and facilitate whole-of-government initiatives and responses by providing consolidated online access to relevant information and tools, however its value as a more general communication tool for the promotion of whole-of-government will be considered further over the coming months. Workplace diversity People with disability During 2006–07 the Commission placed an increasing emphasis on initiatives that foster the employment of people with disability. In August 2006 MAC launched its report Employment of people with disability in the APS.The report acknowledged the consistent decline in the employment of people reporting disability as a proportion of APS employees over the past decade and examined the factors impacting on the recruitment and retention of people with disability in the APS. The report is discussed in output 3.4—research and evaluation. The Commission is providing assistance to APS agencies to identify and put in place strategies to improve the recruitment, development and retention of people with disability in the APS. In particular, during 2005–06 the Commission conducted an evaluation of agencies' approaches to identifying best practice. The evaluation also involved wide consultation with managers, staff with disability and community-based disability support services. The results of the evaluation led to the development of a good practice toolkit for APS agencies. This toolkit, Ability at work: tapping the talent of people with disability was launched by the Commission in June, 2006.</p><p>Ability at work June 2006 event</p><p>The toolkit has been circulated widely within the APS and is available in full on the Commission’s website at: http://www.apsc.gov.au/abilityatwork/ The Commission has also negotiated with the National Disability Recruitment Coordinator to provide a direct link from their website to our newly developed jobs site: http://www.APSjobs.gov.au. We have also updated the definition of disability on the APS Employment Database and issued advice to agencies on the employment of people with intellectual disability. The Commission ran seminars and workshops dealing specifically with issues concerning the employment of people with disability including: an interactive half day seminar on disability which included a presentation by Professor Ron McCallum AO workshops on Supporting staff with mental health issues were also conducted for APS managers, team leaders, HR practitioners and staff, providing practical advice, assistance and support for those working with people who are living with mental illness. The success of the workshops has led to expanded delivery in 2007–08. Over the next 12 months we will focus on enhancing Ability at work and further promoting it to agencies. The Commission will continue to embed disability into our internal and external products including policy advice and programmes. International day of people with disability The Commission hosted a successful event to celebrate International Day of People with disAbility. The celebration was attended by representatives of APS agencies, members of the community with disability and their carers and agencies supporting people with disability. It highlighted the experiences of people with disability, in different jobs, in the APS and providing agencies with information on services available to support them when employing people with disability. Lifting and raising of the marriage bar The eighteenth of November 2006 marked the 40th anniversary of the legislative amendment to remove what was commonly known as ’the marriage bar’—opening up career opportunities for married women in the APS. Prior to November 1966 married women were not allowed to be permanent public servants. Whilst they could be employed on a temporary basis, married women could not be promoted to supervisory positions and women who married while they were permanent public servants were required to resign. To celebrate the anniversary and the advances women in the APS have made since then, the Commissioner and the Executive Director of the Office for Women hosted Lifting and raising the bar, a function that provided an opportunity for a diverse range of women to talk publicly about their perspectives and stories of life in the APS including the stories of women personally affected by the marriage bar. Speakers also discussed how the role of women has progressed in society and compared current experiences with the arrangements that had frustrated the proper participation of women in the APS workforce. The event provided an opportunity to celebrate the fact that women now represent more than 50 per cent of the APS workforce and that numbers in the SES are also increasing. A commemorative booklet, Lifting and raising the bar was published for the event. This booklet provided snapshots of some of the historical events and changes that affected women in the APS. In Western Australia an informal event was held for Regional Directors with guest speakers providing an insight into the practical and humorous experience of the marriage bar on APS employment conditions at that period of time.</p><p>Lifting and raising the bar event International Women’s Day This year the Commissioner co-hosted an event with the Office for Women to mark International Women’s Day. The Minister Assisting the Prime Minister for Women’s Affairs, the Hon Julie Burns launched the Office for Women’s publication Women in Australia 2007. Other speakers provided information and advice on how women could look after their physical and financial health. The Commission also organised a number of International Women’s Day events in capital cities including: an address of 281 people in Western Australia by ABC radio presenters Ms Shannon Lush and Ms Jennifer Fleming, authors of Spotless and Speed cleaning a lunch time event with Ms Kate Fitzpatrick , Australian theatre and television actress, in the Brisbane office with 230 people in attendance a lunchtime celebration and seminar by Professor Judith Whitworth AC, Director of the John Curtin School of Medical Research, Telstra ACT Business Woman of the Year in 2002 and ACT Australian of the Year in 2004, sharing her story of achieving success and the key health challenges facing women in the future to over 200 guests in Sydney. Statistical/Information services In supporting a high-performing APS, the Commission collects and analyses workforce statistics. This data collection and analysis assists the APS in identifying workforce challenges and helps agencies in benchmarking their workforce planning activities. Table 19: Performance Information: Output 3.3—Statistical/information services Target Result Quantity 1. Maintain and analyse data on APS employment for research within the Commission and by other organisations. a) APS Employment Database. Achieved. APSED was used for APS-wide workforce analysis and reporting, including for the State of the Service report, the MAC disability report and briefing on workforce issues for Portfolio Secretaries. b) Internet accessible data reporting Achieved. The APSED Internet Interface is fully tool. functional, with enhancements made during the year. c) Australian Public Service Statistical Achieved. The APS Statistical Bulletin was published in Bulletin—1 per year. hard copy and electronically. </p><p>Quality 1. Comprehensive and reliable data in Achieved. Improved data quality was achieved by a useful format. ongoing liaison with agencies and HR vendors.</p><p>Estimated price: $1.280 million Actual price: $1.246 million</p><p>Maintain APS Employment Database and undertake related research The Commission maintains the APS Employment Database (APSED), the central source of information on APS workforce trends and an important tool for ensuring cross-service accountability, especially for the State of the Service report. APSED is used as the sampling frame for the State of the Service employee and other surveys. APSED is also used for other research such as MAC projects. This year, data from APSED was used extensively for the State of the Service and MAC report on employment of people with disability in the APS. APSED was also used for additional analysis of the composition of the SES and EL 2 cadres for consideration by the Portfolio Secretaries’ Group. The provision of APSED data by APS agencies continues to improve, with almost all agencies providing regular data through automated processes. The Commission works in close collaboration with agencies to ensure APSED requirements are incorporated into updates of their HR systems to ensure the integrity of data. It is important that APS agencies allocate sufficient resources to ensure data meets APSED specifications. Securing accurate data initially means fewer resources are needed to respond to queries. This year, we worked closely with several agencies that moved into coverage of the Public Service Act 1999 (the Act), to ensure the integrity of their APSED data. Some agencies continue to send data based on old APSED data specifications presenting some problems with data consistency and reducing the completeness of newly collected data items such as email addresses for employees. In 2006–07 the Commission completed the development of the Online Employee Provided Information (OEPI) system for implementation across agencies. OEPI enables Commission staff to contact APS employees directly by email, to obtain data such as diversity status, educational qualifications and previous workforce experience. This data is loaded directly into APSED and also provided to agencies to enable them to update their records. OEPI has been implemented in a number of agencies, bringing about improved data quality with fewer missing fields. To date, emails inviting APS employees to update their details on OEPI have been sent to approximately 4,700 employees. Around one-third of these employees have accessed the system and of this group, over one-quarter have updated their details. Overall, provision of diversity data by many agencies continues to be of concern. APS Employment Database internet interface The APS Employment Database Internet Interface (APSEDII) promotes better practice in workforce planning and benchmarking, enabling users to produce data similar to that published in the APS Statistical Bulletin. APSEDII produces charts and tables and users can download the results for further manipulation. Agencies and other users can access aggregated data directly through the APSED Internet Interface (APSEDII) at: https://www.apsedii.gov.au. Some 30 agencies have requested access to more detailed information on APSEDII through a secure logon and password procedure. This level of access allows designated users to look at unit record information for employees in their agency, which assists in workforce planning and improves data integrity. APS Statistical Bulletin The APS statistical bulletin 2005–06 (the Bulletin) provides useful information to agencies in benchmarking their activities against APS-wide trends. The bulletin is distributed to all Australian APS agency heads, New Zealand Public Service Commissioners and major public and university libraries. It is available in hard copy and electronically on the Commission’s website. The 2005–06 bulletin contained a snapshot of APS-wide staffing as at June 2006 and staff movements throughout 2005–06. The bulletin also provided summary data for the past 15 years and its format largely followed that of the previous year, with the exception of a new table showing all promotions and transfers between states and territories. The online version was considerably enhanced this year, enabling users to easily download and print tables, with graphs presented in a format more accessible to visually impaired users (see: http://www.apsc.gov.au/stateoftheservice/0506/statistics/). Research and evaluation The Commission undertakes research and evaluation that contributes to a sustainable, contemporary and vital APS. The Commission pursues its research and evaluation role through: statistical assessment of APS performance comprehensive annual surveys of APS operations and employee attitudes public administration research both Australian and international producing speeches and presentations for the Commission’s Executive. Each of these activities enable the Commission to assess the capacity of the broader APS and its employees to meet Government objectives, address future challenges and to develop guidance and recommendations for change. In addition, our research and evaluation work better equips us to learn from and benchmark our performance against that of overseas public sector jurisdictions. In 2006–07, the Commission’s research and evaluation programme was particularly focused on supporting the Commission priority of generating active dialogue on and a supportive environment for, the next stages of public sector reform and performance improvement. Table 20: Performance information: output 3.4—research and evaluation Target Result Quantity 1. Undertake research into and advise on Achieved. A range of speeches, presentations and public administration. papers encompassing contemporary public administration issues were prepared and research undertaken on public administration issues facing other jurisdictions for the State of the Service report and the Executive. Preparation of a range of papers on contemporary governance challenges has also commenced.</p><p>2. Evaluate and provide information on the Achieved. Produced the State of the Service performance of the APS through the State Report 2005–06 (including the Workplace of the Service report (including the Workplace Diversity Report) and other Diversity Report), the State of the Service publications—one State of the Service Employee Survey Results 2005–06, the State Report (including the Workplace Diversity of the Service 2005–06: At a Glance Report). publications and 29 agency-specific employee survey reports. 3. At least one new evaluation and ‘good Achieved. Two evaluations were finalised and the practice’ guide aimed at improving the findings reported in the State of the Service performance of APS departments and Report 2005–06. The first dealt with agencies’ agencies. written remuneration policies and the second assessed the use and effectiveness of identified positions and special measures for the employment of Aboriginal and Torres Strait Islander people in the APS. A third evaluation was undertaken of agencies’ approaches to recruitment, development and retention of people with disability in the APS, in 2006–07. A good practice toolkit for APS agencies (Ability at Work) was released in June 2007. Handling Misconduct, a good practice guide based on an evaluation of the importance of Code of Conduct procedures reported in previous annual reports was released in February 2007. 4. Secretariat and research support Achieved. The Commission provided support for services provided to the Management Advisory Committee (MAC) and MAC three MAC meetings throughout 2006–07 and five Deputy Secretaries Group meetings for the Table 20: Performance information: output 3.4—research and evaluation Target Result Deputy Secretaries Groups which are recordkeeping report. responsible for overseeing particular MAC projects; and operational support to the The sixth MAC report, Employment of People with Commissioner as the Executive Officer of Disability in the APS was launched in August the MAC—estimate 2006. 2 MAC meetings The seventh MAC report, Reducing Red Tape in 8 Deputy Secretaries Group meetings the Australian Public Service was launched in and February 2007. 2 projects to be supported. The eighth MAC report Note for File: A Report on Recordkeeping in the Australian Public Service was launched on 31 August 2007. </p><p>Quality 1. High level of client use of research Achieved. Speeches, presentations and papers outputs. prepared met all relevant requirements. 2. High level of client use of the State of Achieved. Positive feedback on the usefulness of the Service report. State of the Service 2005–06 publications was received from a wide range of APS agencies and employees. Commission staff were contacted by human resource management staff who were drawing on their agency-specific reports to brief senior managers on a range of issues. High uptake of the report, with just over 4250 hard copy reports distributed. Presentations promoting the report by the Commissioner, the Deputy Commissioner and Evaluation Group staff were attended by over 500 APS staff in all mainland states and territories. Public administration conference publications and discussions indicate increasing academic reliance on State of the Service publications. The Commission received a UN Public Service Award for the State of the Service report in the category of ‘Improving transparency, accountability and responsiveness in the Public Service’, which was based in part on an assessment of the impact of the report within Australia and internationally. </p><p>3. 100% compliance with tabling Achieved. The State of the Service Report requirements. 2005–06 complied with Government tabling requirements. Reports, which were produced to a high standard of accuracy, relied on the latest relevant data and international and Australian research material on public administration. 4. High level of satisfaction of agencies Achieved. Positive feedback was received from the directly involved in the evaluation and a Deputy Secretaries Indigenous Employment high level of client use of good practice Strategy Steering Committee Group in relation to the guides. evaluation of identified positions. Agencies involved with the evaluation of agency approaches to recruitment, development and retention of people with disability in the APS were satisfied with their Table 20: Performance information: output 3.4—research and evaluation Target Result involvement in the evaluation. Positive feedback from APS and non-APS agencies has been received on the good practice toolkit Ability at Work. Informal feedback on the Handling Misconduct good practice guide has been positive. 5. A high level of satisfaction of the MAC Achieved. MAC members have committed to the and its Deputy Secretaries Groups with the eight objectives of Employment of People with relevance, quality and timeliness of advice Disability in the APS.MAC and its Deputy and support provided. Secretaries Groups have indicated satisfaction with the support provided by the Commission. </p><p>Estimated price: $2.098 million Actual price: $2.078 million</p><p>Research and advice on public administration Research into public administration developments within the Australian Government, in Australia’s state and territory jurisdictions and overseas enables us to better position the APS to respond to its key challenges and contribute to improved APS performance. The results of the Commission’s research and evaluation programme are promoted widely through our publications, speeches, presentations and learning and development programmes to generate an active dialogue on and a supportive environment for, the next stages of public sector reform and performance improvement. Evaluate and provide information on APS performance through the State of the Service report and APS Statistical Bulletin The performance of the APS is evaluated through the Commissioner’s State of the Service report to Parliament and through more specific issues-based research and evaluation projects. Since 2003, the State of the Service report has included the Workplace Diversity Report. Under section 44(2) of the Public Service Act 1999 (the Act), the Public Service Commissioner is required to report annually on the state of the APS. Although the Act does not specify the issues to be covered in the report, the Commissioner’s approach has been to focus on contemporary issues confronting the APS while maintaining her evaluation of the extent to which agencies incorporate and uphold the APS Values (in line with section 41(1)(a) of the Act). The Commissioner is required to table the report in Parliament by 30 November each year. Following the success of the broader scope of the previous year’s report, the State of the Service Report 2005–06 was restructured around three key themes to ensure it maintained relevance and currency for a modern APS: employee engagement, that is, the extent to which agencies’ policies and practices encourage employees to actively engage with their work and the organisation by examining issues such as integrity, fairness, diversity, leadership, learning and development organisational effectiveness, including organisational capability, effective governance processes and whole-of-government capability the effectiveness of the APS in working with the community. The Commission drew upon diverse and complementary data sources to develop the State of the Service Report 2005–06. These sources included the Commission’s own research and databases (particularly APSED), published and unpublished material from other agencies, Parliamentary Committee and Australian National Audit Office (ANAO) reports and, where available, comparable data from other Australian jurisdictions. The Commission also conducted two surveys that contributed to the report. The agency survey provided information on a large range of management and capability issues in agencies with 20 or more APS employees. For the fourth consecutive year the agency survey was conducted online and we achieved a 100 per cent response rate from the 84 agencies in scope. The second survey, sent to over 6,500 randomly selected APS employees, provided data on employee attitudes to and understanding of, a range of issues including the APS Values, Code of Conduct, merit, work / life balance, job satisfaction, whole-of-government, working with external stakeholders, diversity, individual performance management, bullying and harassment. The 2006 employee survey had a high response rate for a voluntary survey of 64 per cent—up from a 59 per cent response rate in 2005. Employee survey data was also used to produce agency-specific reports for large agencies (i.e. those with over 1000 APS employees) and medium sized portfolio departments which summarised their own employee responses and compared those results to the APS-wide results. Differences that were statistically valid were marked appropriately. Small and medium sized agencies were provided with a benchmark summary of all small or medium sized agencies respectively. The Commission has received positive feedback from agencies about the value of these reports in assisting them to improve their performance. Coverage of these agency-specific reports will be extended in 2007 to encompass all agencies with at least 400 employees (which together comprise over 95 per cent of APS employment). The Commission also produced two associated publications: the State of the Service: employee survey results 2005–06 booklet, which provided the results of the employee survey in a collated, aggregate form and the State of the Service: 2005–06 at a glance pamphlet, which provided a succinct summary of findings and was widely disseminated to encourage debate and discussion of key findings. The online version of the State of the Service report was improved this year, with all graphs being presented in a format more accessible to visually impaired users. State of the Service report outlines key challenges In keeping with the high quality and future focus of the State of the Service report, the 2005–06 report outlined five challenges for the APS as a whole: 1. Developing capability in the senior leadership group. Agencies need to ensure that they have senior leadership of the highest quality. Depending on the depth and breadth of experience of their SES, different agencies need to take different approaches to developing their SES. SES employees also need to invest in themselves and plan their careers carefully so they are able to contribute to the maximum extent possible. 2. Supporting and developing EL employees: the middle-management and SES feeder group. Agencies need to ensure they have sufficient capability among their middle-management EL cadre, especially in the areas of strategic thinking and people management. Agencies also need to identify and develop high potential EL employees, who are capable of fulfilling senior leadership roles into the future. 3. Positioning the APS as an employer of choice. The APS must compete effectively for a diverse and sophisticated workforce under tight labour market conditions. To do this, agencies need to market themselves as an employer of choice to a wide range of people and continue to draw on the full diversity of the workforce. There are continuing challenges in the employment of Indigenous Australians and people with disability. 4. Achieving excellence in governance. Effective governance goes beyond agency driven accountabilities, frameworks and systems and requires employees to be thoughtful and helpful, as well as active and critical participants in the governance of their agency. There is a need for further work to deliver a governance model that deals effectively with the challenges of a modern APS and alerts executive management to potential problems before they develop into systemic problems. 5. Building our organisational capacity to address the challenges of the future. It is time for the debate around future public service directions and the capacity for the APS to deal with new directions, to regain momentum. To deal with emerging challenges, the APS will need to continue to examine ways of working in a whole-of-government way, along with strengthening relations with external stakeholders and the community. The APS will need to ensure it has both leaders and employees with the necessary capability and supportive and flexible governance structures to facilitate reform. Lynelle Briggs, Public Service Commissioner and State of the Service report drafters after the launch</p><p>In order to maintain the relevance of the State of the Service report within the ever-changing and challenging environment faced by the APS, planning the focus and direction of the 2006–07 report began in January 2007. As part of the preparatory work the employee and agency surveys were reviewed to ensure that both instruments appropriately captured the issues to be covered in the 2006– 07 report. Particular focus was given to employee engagement, issues of attraction and retention, capability and performance improvement. Reflecting the projected focus of the 2006–07 report, new questions were added to assess employees’ experiences of recruitment processes, drivers of attraction and retention and ways to improve the efficiency and effectiveness of the APS and whole-of-government work. The 2007 employee survey was in the field from 14 May–8 June 2007 and achieved a response rate of 64 per cent. Consistent with the approach taken in the previous year, in developing the 2007 agency survey the Commission focused on minimising respondent burden for APS agencies. Pilot testing confirmed that the complexity of the survey has been minimised. The agency survey includes new questions on attraction and retention, agency governance, whole-of-government and workplace absence (unscheduled leave). It was sent online to agencies on 6 June for completion and return by 18 July 2007. Undertake research and analysis During 2006–07, the Commission estimated that it would undertake at least one new evaluation and good practice guide aimed at improving the performance of APS departments and agencies. Undertake specific-issue evaluations The Commission conducts research and undertakes evaluations that support the Commissioner in promoting the APS Values and Code of Conduct and contribute to a sustainable, contemporary and dynamic APS. In 2006–07, the Commission focused on finalising a number of projects arising out of earlier evaluation programmes.</p><p>Handling misconduct A good practice guide drawing on the findings of an evaluation of agency management of suspected breaches of the Code of Conduct, reported in previous annual reports was released in February 2007. The guide, Handling misconduct: a human resources practitioner’s guide to the reporting and handling of suspected and determined breaches of the APS code of conduct (and the Summary guide), were released electronically on the Commission’s website. The guide provides advice to agency HR practitioners responsible for developing agency procedures as well as other guidance material. It is supplemented by a short summary guide directed at all employees that is available in hard copy or electronically. Feedback to date from APS agencies on Handling misconduct has been very positive.</p><p>Remuneration policies The findings of an evaluation of APS agencies’ remuneration policies were reported in the State of the Service Report 2005–06. The evaluation found that transparency in the application of individualised pay systems was paramount in gaining employee acceptance and that a written remuneration policy was critical in gaining this support. The evaluation identified several benefits of long-term strategic planning in the area of remuneration policy, but also found that a likely inhibitor on the development of agencies’ remuneration policies was that for many agencies, long-term, strategic corporate objectives remained unclear.</p><p>Identified positions In 2006, the Commission also conducted a desk-based evaluation, drawing on a range of existing data sources, which examined the use and effectiveness of identified positions and special measures for the employment of Indigenous Australians. The evaluation, the findings of which were reported in the State of the Service Report 2005–06, concluded that the use of identified positions and special measures is associated with higher levels of Indigenous representation and retention in agencies, but is not associated with increased levels of career progression for Indigenous employees. It is difficult to determine the extent to which this is a direct result of the strategies, or whether it reflects more broadly on the nature of work performed in these agencies. The findings are also being considered in consultation with agencies as part of the Commission’s APS employment and capability strategy for Aboriginal and Torres Strait Islander employees.</p><p>Ability at work Following the release of the MAC report, Employment of people with disability in the APS in August 2006, the Commission conducted an evaluation of agencies’ approaches to identifying and implementing strategies designed to improve the recruitment, development and retention of people with disability in the APS. The evaluation drew from practices in six APS agencies, but also involved wide consultation with managers, employees with disability and disability support services. The major findings of the evaluation were: the important role of supportive leadership and workplace cultures a lack of specific policies within organisations targeted at the employment of people with disability low levels of awareness about employment-related disability issues low levels of awareness concerning available support, the role of diversity support providers and how they can be accessed concerns about advertising and selection processes and the need for better understanding of the application of the merit principle, reasonable adjustment and the inherent duties of the job the identification of opportunities to revisit the design and to explore recreating some jobs at lower classifications that may be suitable for some people with disability. The results of the evaluation were used to identify elements of good practice among agencies and more broadly, in formulating approaches to recruiting and managing people with a disability, which led to the development of a good practice toolkit for APS agencies. This toolkit, Ability at work: Tapping the talent of people with disability, was launched by the Commission in June 2007. The toolkit has been circulated widely within the APS and is also available on the Commission’s website: http://www.apsc.gov.au/abilityatwork/. Braille versions of the toolkit are also available from the Commission.</p><p>Changing behaviour The Commission commenced an evaluation of the effectiveness of selected agencies’ approaches to engaging with Australian citizens to promote behavioural change. The results of this evaluation will be reported in the State of the Service Report 2006–07 and inform discussion papers on behavioural change strategies and ‘wicked problems’ (see below). Case studies from the evaluation will be incorporated into the Commission’s leadership development programmes. Other research projects The Commission undertook a number of additional research projects focusing on service challenges. This work will provide a foundation for the Commission’s 2007–08 strategic priorities of stimulating debate about future directions for the public sector and improving the capability and performance of the APS.</p><p>Agency Health In 2006–07, the Commission commenced a research project, initially through the auspices of the Public Service Commissioners’ Conference, to identify the key corporate health indicators of high performing agencies and those at risk of poor performance. A paper highlighting the results of the project will be released in the first half of 2007–08. It will be the first in a series of papers that address ‘Contemporary Government Challenges’.</p><p>Wicked problems and behavioural change The Commission also commenced work on two discussion papers designed to stimulate debate around two public sector challenges—solving ‘wicked’ or complex and intractable problems and securing behavioural change. These papers are due to be completed in the first half of 2007–08. Management Advisory Committee The Commission continued to provide a range of secretariat and research services to MAC. The committee was established under section 64 of the Act and is chaired by the Secretary of the Department of the Prime Minister and Cabinet, with the Public Service Commissioner as executive officer. The committee met in November 2006, March 2007 and May 2007. The committee currently has 25 members, including all portfolio Secretaries and the heads of the Australian Bureau of Statistics, the Australian Customs Service, the Australian Taxation Office, Centrelink and the Office of Indigenous Policy Coordination, based in the Department of Families, Community Services and Indigenous Affairs. The Auditor-General is invited as an observer. Since it first met in 2000, MAC has been responsible for advising the Government on matters relating to the management of the APS. While it has no statutory powers or executive functions, the committee provides a forum for members to discuss significant issues of topical and strategic interest to the APS. In 2006–07, the committee has focused its efforts on: continuing to implement the recommendations of MAC’s fifth report, Managing and sustaining the APS workforce launching the sixth MAC report, Employment of people with disability in the APS preparing and launching the seventh MAC report, Reducing red tape in the APS preparing the eighth MAC report, Note for file: a report on record keeping in the APS. </p><p>Employment of people with disability in the APS Over the past decade, although the data is incomplete, there has been a consistent decline in the employment of people reporting disability as a proportion of APS employees. In July 2005, MAC agreed to undertake a project that would address the employment of people with disability in the APS. The report was launched in August 2006. Employment of people with disability in the APS examines the factors affecting the recruitment and retention of people with disability in the APS. Through this report, all MAC members have committed their agencies to eight objectives for promoting the employment of people with disability in the APS and identified a range of better practice strategies for meeting those objectives which agencies will consider implementing on a case-by-case basis. The objectives focus on cultural change; recruitment and training; special employment measures for people with intellectual disability; the provision of accessible and supportive work environments; support for managers of people with disability; the use of consistent definitions across the APS; and mechanisms for monitoring the employment of people with disability.</p><p>Reducing red tape in the Australian Public Service In March 2006, MAC agreed to the formation of a Deputy Secretaries’ Group to oversee a project team located in the Department of Finance and Administration that would focus on reducing red tape in the APS. The report was intended to complement the Government’s response to the Productivity Commission inquiry, Rethinking regulation: report of the taskforce on reducing regulatory burdens on business (January 2006), which considered the burden of red tape on business. The report was launched in February 2007. Reducing red tape in the APS sets out a principles-based framework for the review of existing requirements and for the scrutiny of proposals for new requirements, with a view to reducing red tape in the APS.</p><p>MAC Reducing red tape in the Australian Public Servicelaunch: Lynelle Briggs, Public Service Commissioner, with keynote speakers, Dr Peter Shergold and Dr Ian Watt</p><p>Recordkeeping in the APS In March 2006, MAC agreed to examine the issue of recordkeeping in the APS. The project, which commenced in August 2006, is focusing on articulating the purpose and business case for recordkeeping, identifying any impediments in the APS context and explaining how recordkeeping interacts with obligations in relation to information collection, use and disclosure. It is also examining how agencies can achieve efficient and effective recordkeeping in the current context (including in relation to electronic communication). The report Note for file: a report on recordkeeping in the Australian Public Service was released in August 2007.</p><p>Managing and sustaining the APS workforce The Managing and sustaining the APS workforce report was released in 2005 by MAC. The report addresses the challenges facing the APS in attracting and retaining skilled and talented staff in a changing employment environment. All agencies are responsible for implementing the general action items arising from Managing and sustaining the APS workforce and its findings have been actively promoted throughout the APS. Key agencies, including the Commission, are also charged with leading specific initiatives (see outputs 1.2—employment services, 2.2—programme delivery and 3.2— promoting better practice for work undertaken in 2006–07). At its meeting on 23 November 2006, MAC considered a consolidated progress report on the implementation of actions items from Managing and sustaining the APS workforce. Considerable progress was occurring against most actions particularly in MAC agencies. MAC agreed that the Commission would continue to report annually to MAC on the implementation of the report findings. Public Service Commissioners’ Conference (PSCC) The Public Service Commissioners’ Conference (PSCC) provides a cross-jurisdictional forum for Commonwealth, State and Territory public service commissioners and their New Zealand equivalent (the state services commissioner). The Commission provides secretariat and research services to the conference to support its work. It identifies and considers issues of shared topical and strategic importance which are central to improving public administration and include policy and service delivery issues. The location and chairmanship of each meeting rotates through each jurisdiction. The conference provides a forum for commissioners to set the agenda for wider consideration of public sector change and future directions in public administration. It also creates opportunities for exchanging information and experience and progressing commissioners’ consideration of issues by: determining the nature and extent of data and information collection comparing and analysing performance and best practice across public sectors establishing priorities and an ongoing work programme identifying cross-jurisdictional projects and setting up senior officer working groups to advise and recommend to commissioners considering research and evaluation outcomes determining the feasibility of joint approaches to service delivery. These collaborative activities are intended to enhance the capacity of individual Commissioners to influence and guide the development and implementation of public sector employment policies and practices within their jurisdictions. The PSCC first met in 2000 and since 2003 has met twice each year. In 2006–07, it met in September 2006 in the Northern Territory and in Melbourne in February 2007. Major issues discussed included: current developments and options for responding to a possible influenza pandemic; harassment and/or bullying issues; the role of ministerial staff; governance and devolved government arrangements; identifying underperforming agencies; and performance agreements. Management and accountability This part of the Annual Report sets out the Australian Public Service Commission’s (the Commission) approach to corporate governance and the management of resources. Achievements Achievements in 2006–07 included: relocation of the Commission’s Canberra office to new premises providing a more attractive, environmentally sustainable, energy efficient and professional workplace for staff and including a dedicated venue for the delivery of training programmes and events production and release of the Commission’s first Information Technology Strategic Plan 2006–09 implementation of Voice Over Internet Protocol (VOIP) telephone services in the new Canberra office implementation of protective email marking and SPAM software in all offices upgrade of SAP, the Commission’s primary financial management system development of a database and improved arrangements for keeping the Commission’s mailing lists up to date so that clients receive the information they need on time development and delivery of processes which provide additional assurance to the Commissioner when completing her annual certificate of compliance with the Financial Management and Accountability Act 1997 (FMA Act) and other elements of the financial framework.The Commission strengthened its financial management framework and practices during 2006–07 and maintained appropriate funding reserves to meet liabilities as and when they fall due completing a business continuity plan in the event of an Influenza Pandemic establishment of a panel of providers for legal advice implementation of a new Collective Agreement and roll-out of new Australian Workplace Agreement (AWA) templates, including offers for all Executive Level (EL) 1 staff release of the Commission’s Reconciliation action plan 2007–10 in May 2007 which aims to influence the implementation of reconciliation both within the Commission and across the Australian Public Service (APS), reflecting the Commission’s leadership role in the employment of Aboriginal and Torres Strait Islander Australians delivery of a staff survey in June 2007 with an 83 per cent response rate and high levels of staff satisfaction. Executive and senior management structure The Public Service Commissioner, Ms Lynelle Briggs, is the agency head and chief executive officer of the Commission. She heads the Commission’s Executive, which also includes Ms Lynne Tacy, the Deputy Public Service Commissioner and, until his resignation on 14 May 2007, Mr Jeff Lamond PSM, the Merit Protection Commissioner. Mr Boris Budak is the acting Merit Protection Commissioner. A competitive selection process for the office of Merit Protection Commissioner was started following Mr Lamond’s departure which will inform the appointment by the Governor-General. The Commission’s Executive is supported by six Group Managers. During 2006–07, the Commission made two new appointments to its senior executive team. Ms Karin Fisher and Ms Jacqui Curtis were promoted to lead the Corporate and Programmes Groups respectively. Corporate governance framework The Commission’s performance expectations and planned use of resources are set out in the portfolio budget statements and corporate plan. These performance parameters and plans cascade down through group business plans to individual performance agreements providing the framework for staff compliance and accountability to take place. Figure 2 shows how the Commission’s corporate governance mechanisms support the Commission’s performance management. Figure 2: Corporate governance and performance management framework</p><p>About Figure 2 The Commission has an integrated corporate governance and performance management framework that is directly aligned to the Commission's performance expectations and planned use of resources as set out in its portfolio budget statements and corporate plan. These expectations and plans cascade down through group business plans to individual performance agreements and provide the framework for conformance and accountability to take across the Commission The Commission’s Corporate plan 2006–07 guided the Commission’s work for the year by setting out the top strategic priorities, other priorities framed against the output structure and the corporate support and culture necessary to deliver those priorities. A copy of the Commission’s Corporate plan 2007–08 is available at: http://www.apsc.gov.au/about/corporateplan.htm As part of the Commission’s forward planning and development of strategic priorities for 2007–08 a review of the agency’s mission statement was conducted in March 2007 and a new simplified mission was implemented—to support a high-performing Australian Public Service. Corporate committees The Executive meets as a strategic decision-making body every fortnight, A number of advisory committees support the Executive in its management role: Commission Management Committee (CMC)—comprising the Executive, Group Managers and the Adviser to the Merit Protection Commissioner. Meeting weekly, CMC is responsible for: o endorsing the corporate plan and corporate policies o leading the implementation of strategic priorities o reviewing and monitoring performance against budgets and ensuring consistency with overall strategic directions o providing a forum for discussing APS policy issues Audit Committee—established in accordance with the FMA Act. The Committee comprises a chairperson, two senior staff members and an independent external member. Representatives from the Australian National Audit Office attend these meetings as observers, as well as Ernst and Young (the Commission’s internal auditors) and the Chief Finance Officer who reports on particular matters. The Audit Committee generally meets four times a year in February, May, August and November. In 2006–07 the Merit Protection Commissioner chaired three meetings and the Corporate Group Manager one meeting Information Technology Advisory Committee—the committee comprises a chairperson and Corporate, Programmes and Evaluation Group Managers. It is responsible for guiding and managing the Commission’s information services and oversees the development and implementation of the Commission’s Information Technology (IT) strategy. In 2006–07 the committee was chaired by the Merit Protection Commissioner and met six times Workplace Relations Committee is chaired by the Deputy Public Service Commissioner and comprises three management representatives and five elected staff representatives. It is responsible for advising the Commissioner on the implementation and development of the Commission’s collective agreement. The Committee met three times in 2006–07 Occupational Health and Safety Committee comprises employee and union representatives and is chaired on an annually rotating basis. It is responsible for advising the Commissioner on the administration of the Occupational Health and Safety Agreement between the Commission and the Community and Public Sector Union. The committee met three times in 2006–07 Security Committee—is chaired by the Corporate Group Manager and comprises the Commission’s Security Officer, the Security Officer IT and the Chief Finance Officer. It is responsible for advising the Executive on all security matters. The Committee met twice in 2006– 07. Internal audit programme Ernst and Young completed six audits in 2006–07 related to the 2006–07 audit programme and a further two audits are currently underway. The completed audit reports, which the Audit Committee considered, did not identify any significant or systemic issues. The Commission is implementing the recommendations. Work started before the end of the financial year to develop the 2007–08 Audit Plan. The Commission’s provider of internal audit and related services, Ernst and Young, facilitated a planning session attended by members of the Audit Committee, the Chief Finance Officer and Group Managers. Business continuity To minimise the impact on clients of any disruption to services following a disaster the Commission’s Business continuity plan provides practical guidance to ensure continuity of essential services by the Commission. The major focus of business continuity planning during 2006–07 was preparing for the possibility of an Influenza Pandemic. A plan for managing this contingency was completed in 2006 and will be tested in 2007–08. The Commission’s overall Business Continuity Plan will also be reviewed to take account of the Canberra accommodation move in 2007 and regional office moves in 2008. Risk management and fraud control The Commission reviewed its risk register and risk management framework in 2006–07 with the assistance of Comcover. Further work is required in 2007–08 to review these risks. The Commission's Fraud Control Plan 2006–07 and current fraud risk assessmentcomply with the Commonwealth fraud control guidelines issued in May 2002. The Commission has in place fraud prevention, detection, investigation, reporting and annual fraud data collection procedures and processes that meet the Commission's needs and comply with the guidelines. The Audit Committee oversees implementation of the Fraud Control Plan 2006–07. The plan is brought to the attention of new staff as part of the Commission’s induction process and is available electronically. Ethical standards The Commission’s Executive supports a workplace culture that gives visible and strong commitment to the APS Values. Activities in 2006–07 included: providing information to the Commission’s new staff at induction about the APS Values and the Code of Conduct scheduling development programmes for all staff which are aimed at making the APS Values and Code of Conduct relevant to their day-to-day work and decision-making and including targeted programmes for staff with management responsibilities delivering an information session on the Commission’s policies for preventing workplace bullying and harassment incorporating references to the relevant APS Values in management policies, guides and instructions released by the Commission during the year assessing for behaviour consistent with the APS Values through the Commission’s performance appraisal scheme dealing promptly with suspected staff misconduct. The aim of these activities is to build a workplace culture which supports the Commission’s governance framework and contributes to stakeholder confidence in the management of the Commission. External scrutiny Court and tribunal decisions The Federal Magistrates Court decision in Walworth v Merit Protection Commissioner & Ors [2007] FMCA 24 (23 February 2007) impacted on the way in which those staff of the Commission who are made available to assist the Merit Protection Commissioner carried out their review of actions functions. The decision and its impact are reported in the Merit Protection Commissioner’s Report. Reports by the Auditor-General There were no reports into the operations of the Commission by the Auditor-General in 2006–07. Reports of general application are considered by the Commission’s Audit Committee. People management The Commission’s Corporate Plan 2006–07 and Collective Agreement 2006–2009 make commitments to building the Commission’s strategic capability through a planned approach to meet the organisation’s future workforce needs. The Commission’s workforce initiatives, outlined below, aim to provide a high-performing workforce that can best support the services we deliver to the APS. Workforce planning The Commission’s workforce planning strategy sets out the medium to long-term approach to managing workforce issues, in the support of our business planning operations. The strategy will be reviewed in 2007–08 to ensure it remains aligned with the Commission’s strategic priorities and to keep it up to date with labour market trends. At 30 June 2007, the Commission employed 205 staff, excluding casual part-time staff employed in the Commission’s regional offices (see output 1—APS policy and employment services) who provide fee-for-service work. Of these 205 staff, 178 were employed on an ongoing basis with the majority of the 205 staff being based in Canberra (80%). Table 21: Commission staff numbers at 30 June, 2001–07 June 2001 June 2002 June 2003 June 2004 June 2005 June 2006 June 2007</p><p>Ongoing 122 135 159 165 168 167 178 Table 21: Commission staff numbers at 30 June, 2001–07 June 2001 June 2002 June 2003 June 2004 June 2005 June 2006 June 2007</p><p>Non-ongoing 36 26 27 25 16 27 27</p><p>Total 158 161 186 190 184 194 205</p><p>Note: These figures do not include non-ongoing casual staff employed on fee-for-service work but do include Statutory Office Holders (SOHs). More detailed information about the Commission's workforce is set out in Appendix H. Notable trends in the Commission’s staffing figures are: a slight workforce increase between June 2005 and June 2006. The proportion of non-ongoing employees declined slightly from 13.9 per cent to 13.2 per cent. The Commission continues to use non-ongoing employees to address staff turnover rates and to enable heightened flexibility in managing the organisation’s revenue base a decrease in the proportion of Executive Level 1 and 2 employees from 46.4 per cent at June 2006 to 42.4 per cent at June 2007. The proportion of APS 1–6 employees increased slightly from 46.9 per cent at June 2006 to 52.6 per cent at June 2007 the proportion of women working in the Commission has continued to increase, rising from 66.3 per cent of all employees at June 2005 to 69.1 per cent at June 2006 and to 73.7 per cent at June 2007 part-time employment continues to be dominated by women, although four men took up this employment option in the last year. The level of access to part-time arrangements by men is consistent with total Commission workforce demographics the proportion of employees identifying as being of Aboriginal or Torres Strait Islander descent has continued to increase, rising from 4.4 per cent at June 2005 to 4.6 per cent at June 2006 and 4.9 per cent at June 2007. ten SES staff were employed at 30 June 2007 (5.6 per cent of total ongoing employees). The number of SES employees has reduced by one from 30 June 2006 and include three AusAID funded staff who are deployed overseas. The Commission conducted two bulk recruitment campaigns for EL1 and 2 employees during 2006–07 which aimed to achieve a strong order of merit for filling existing and future job opportunities and to test the potential of internal candidates against the range of jobs in the Commission. Both rounds received strong applicant fields but the tightening labour market has resulted in the orders of merit being exhausted earlier than expected. The Commission experienced difficulty in attracting certain skills sets in 2006–07, including: legal services; IT; finance and accounting; policy development; and learning and development. Graduate and traineeship recruitment In January 2007 three graduates, including one Indigenous graduate, started the Commission’s graduate development programme. The programme offers a variety of structured learning and development activities, including a Diploma of Government (Management) and access to on-the-job and technical learning and development opportunities. The Commission continued its traineeship programme, recruiting three Indigenous trainees during the year. Corporate learning and development The 2006–07 corporate learning and development calendar continued the practice of linking Commission, Group and individual capability to organisational performance improvements. The calendar represents a significant investment by the Commission in the development of staff (see Table 22). The calendar’s online availability has enabled staff across the Commission to have greater access to upcoming courses and has allowed for constant updating as new courses become available. In 2006–07 new arrangements were developed to improve access for regional staff to corporately sponsored development opportunities. The corporate calendar supplements other development opportunities funded by groups. Corporate training for 2006–07 focused on capability development priorities in the areas of people, performance, project and programme management and on improving our legal, administrative review, governance and research capacity. In 2006–07 staff participated in EL and SES residential leadership development programmes as well as programmes targeted at staff with high potential such as the Executive Masters in Public Administration from the Australia and New Zealand School of Government and Career Development Assessment Centres. Staff continue to take advantage of the Commission’s Study Encouragement Scheme, which supports study towards qualifications in the fields of public administration, human resource management, learning and development, public policy and governance. The number of staff accessing the Study Encouragement Scheme has remained steady at 11 in 2006–07 after peaking at 14 in 2005–06. Staff development also occurs though the delivery of Corporate Made Easy and Good Oil sessions on a range of topics aimed at keeping staff informed about the development of the Commission’s products and services, the roles and responsibilities of various teams and tools and tips to help them perform effectively in their jobs. Table 22: Participation rates in training and development activities, 2000–07 2000– 2001– 2002– 2003– 2004– 2005– Participation rates 2006–07 01 02 03 04 05 06</p><p>Total staff days 761 562 678 1176 570 420 351 </p><p>Average days per staff member 4.8 3.5 3.7 6.1 3.1 2.3 1.7 </p><p>Total cost ($) 140,000 145,000 247,000 617,000 280,000 175,000 124,000</p><p>Average cost per staff member 886 900 1330 3250 1519 902 605 ($) </p><p>Note: Figures include indirect costs (e.g. salary during training).</p><p>Health Week Health Week occurred between 16 and 20 October 2006 and included a variety of activities aimed at promoting a healthy lifestyle that can be maintained by staff in the long term. Activities included: physically based activities such as exercise classes, tai chi and yoga clinical assessments including health checks and skin checks information sessions including men’s and women’s health seminars and a healthy eating presentation. Staff Survey The Commission surveys its staff approximately every two years. Taking account of feedback from staff, the most recent survey was postponed from October 2006 until March 2007 so that implementation would not be delayed by the holiday period. Results were made available to staff in June 2007. The 2007 survey obtained feedback on: our organisational climate and work culture; the quality of our leadership at all levels; how well we communicate internally and with our clients; our performance management system; occupational health and safety; the strength of our learning and development strategies; preventing bullying and harassment; and overall satisfaction with working in the Commission. The survey was based on a set of core questions that allow for trend analysis, as well as some new, open-ended questions seeking feedback on a number of issues, including ways of improving the Commission’s products. The results were very pleasing with a response rate of 83 per cent and between 80–90 per cent of respondents reporting that they: are happy with their job feel the Commission is a satisfying place to work agree that the Commission is an organisation of which they are proud. Agreement-making in the Commission The Commission provides terms and conditions of employment under either its collective agreement or through Australian Workplace Agreements (AWAs) with individual employees. As at 30 June 2007, 131 employees were covered by the Collective Agreement and 73 employees covered by AWAs. The terms and conditions of the Commission’s two statutory office holders are determined by the Minister Assisting the Prime Minister for the Public Service taking into account the advice of the Remuneration Tribunal. The salary ranges for the Commission’s classification levels are set out in Table 23 below. Table 23: Salary ranges, 30 June 2007 Classification Minimum Maximum</p><p>APS 1–2 $32,957 $42,000 </p><p>APS 3–4 $43,865 $52,000 </p><p>APS 5–6 $54,207 $67,000 </p><p>EL 1 $72,483 $89,800 </p><p>EL 2 $83,527 $110,865 </p><p>SES 1 $120,000 $148,720 </p><p>Note: The Commission employs only one SES Band 2 and one SES Band 3 employee and therefore their salaries are not included in this table.</p><p>Australian Workplace Agreements In 2006 the Commission offered AWAs to all EL1 staff as a group. The response was very positive with 53 per cent of EL1 employees covered by an AWA as at 30 June 2007. The take-up by EL1 employees brings the Commission’s proportion of staff covered by an AWA to 35 per cent of the workforce. Non-salary elements of AWAs cover a range of possible options including: access to performance bonuses; car parking; home access to information technology; mobile phones; annual leave cash out options; business class air travel; and executive lease vehicles. Collective Agreement The Australian Public Service Commission Collective Agreement (CA) 2006–2009 is in its second year of operation after being approved by staff on 20 June 2006. It is a comprehensive agreement made directly with staff under section 327 of the Workplace Relations Act 1996 and nominally expires in June 2009. During the year a range of policies were revised to meet commitments in the CA including implementation of new Study encouragement scheme guidelines and revisions to existing: performance appraisal guidelines; work level standards; AWA guidelines; personnel delegations; and leave guidelines to include purchased, paternity and adoption leave. Performance management A feature of the Commission’s CA is the performance appraisal scheme that directly links annual assessment of individual performance with remuneration. The scheme integrates corporate, group and individual performance planning, providing a basis for consideration and development of individual needs and where necessary, management of poor performance. The Commission’s scheme provides for annual productivity increases in base pay and depending on performance, the possibility of salary advancement. A similar scheme operates for staff covered by AWAs. The Commission’s CA does not provide for performance bonuses which explains the reduction in payments from 2005–06. During 2006–07 the Commission paid $59,131 in performance bonuses to 21 employees who were covered by AWAs. Details of payments made to staff are included in Table 24. Table 24: Performance pay, 2006–07 Classification No. of staff No. receiving Total payment Average payment Range</p><p>APS 1–6 91 0 0 N/A N/A </p><p>EL 1 58 3 $6,333 $2,111 $1,500–$3,000 </p><p>EL 2 32 14 $33,551 $2,397 $1,313–$4,500 </p><p>SES 11 4 $19,247 $4,812 $1,247–$12,000 </p><p>Note: These amounts represent payments for the performance cycle 2005–06 and were paid in July 2006.</p><p>Other people management matters The Commission conducted an investigation into the conduct of a member of staff under the Commission’s procedures for dealing with suspected breaches of the APS Code of Conduct. It was determined that the employee had breached the Code of Conduct and a sanction was imposed. The matter related to inappropriate use of the Commission’s information technology facilities. Financial performance 2006–07 income The Commission’s income for 2006–07 totalled $39.8 million. Appropriation from government accounted for 51.8 per cent, sales of goods and services accounted for 48 per cent and other income the remaining 0.2 per cent (see Table 25). Table 25: Income sources, 2002–07 2003– 2004– 2005– 2006– Income source 04 05 06 07 % % % %</p><p>Appropriation from Government 57.3 52.8 47.3 51.8</p><p>Sale of goods and services 42.6 47.1 52.6 48.0</p><p>Other income (e.g. interest and resources received free of 0.1 0.1 0.1 0.2 charge)</p><p>Appropriation funding Appropriation funding increased from $18.1 million in 2005–06 to $20.6 million in 2006–07. Increases in funding were sourced from: 2005–06 Portfolio Additional Estimates measure to improve employment opportunities for Aboriginal and Torres Strait Islanders in the Australian Public Service (increase from $1.2 million in 2005–06 to $2.6 million in 2006–07) and 2006–07 Portfolio Budget Statement measures ($1.4 million in 2006–07). Non-appropriation income Income from the sale of goods and services in 2006–07 is earned from development programmes (62%), employment services (22.8%), international assistance (9.1%), better practice and evaluation (5.9%) and other services (0.2%). Income from development programmes and employment services amounted to $16.3 million in 2006– 07 and made up 40.9 per cent of the Commission’s total income from all sources. This income is earned in an open market where agencies have choice about where they source their services and the level of services they acquire. As demand can be volatile, the Commission devotes considerable effort to estimating income, expenditure and cash flows and to monitoring its financial performance during the year. The Commission has become increasingly dependent on non–appropriation income in recent years as can be observed in Figure 3. Figure 3: Commission income 2002–07</p><p>About Figure 3 Figure 3 shows the changes in appropriation and non-appropriation income over the last five years. The Commission has become increasingly dependent on non–appropriation income Operating result 2006–07 The Commission’s operating result for 2006–07 was a surplus of $2.3 million. The surplus resulted primarily from increased demand for employment services and leadership, learning and development programme delivery. Table 26: Operating result 2003–07 2003–04 2004–05 2005–06 2006–07</p><p>Surplus $0.872 m $1.134 m $2.344 m</p><p>Loss $1.229 m </p><p>The 2006–07 operating surplus helps the Commission to rebuild accumulated reserves to levels sufficient to cover liabilities following the significant capital investment required in 2006–07 for the Canberra office relocation. Budget outlook In developing its 2007–08 budget the Commission has continued to adopt a conservative approach with the aim of achieving a balanced outcome in the 2007–08 year and forward estimates. The Commission is continuing to strengthen its budget and business planning and management practices as funding will continue to be tight and our reliance on income from the sale of goods and services remains high. The Commission will receive an additional $0.7 million for measures approved in the 2007–08 Budget. However, total appropriation funding will decrease slightly from 2006–07 by $0.1 million as funding for previous years’ budget measures conclude. Non-appropriation income is projected to be consistent with 2006–07 levels. Table 27: Total planned budget for 2007–08 Sources of income Value ($m)</p><p>Base appropriation funding 17.022</p><p>Investment in programme development 0.102</p><p>Improve employment opportunities for Aboriginal and Torres Strait Islanders 2.625</p><p>2007–08 budget measures 0.749</p><p>Total appropriation funding 20.498</p><p>Non-appropriation income 18.845</p><p>Total 39.343</p><p>CEO Certificate of Compliance A new requirement starting from the 2006–07 financial year, requires chief executives of FMA Act agencies to provide their portfolio Minister and the Minister for Finance and Administration with an annual certificate (called the Certificate of Compliance) in relation to the financial management and financial sustainability of their agencies. In response to this the Commission reviewed its existing processes and controls in place to ensure that the Commissioner could have confidence that her employees are complying with the financial management framework. To enable the Commissioner to sign off with reasonable certainty the obligations of Certificate of Compliance, the Commission developed a reporting framework and tools that Group Managers use to review their operations and document instances of non-compliance with relation to the financial management and financial sustainability of their groups. The new reporting framework supports and strengthens existing process and controls which drive robust financial management practices and performance. Purchasing The Commission’s purchasing is consistent with the Commonwealth procurement guidelines–January 2005 (CPG), our Chief Executive’s Instructions and operational guidelines.The Commission uses a devolved procurement model and to ensure performance against core purchasing policies and principles, relevant information is provided to all staff. The Commission has established a framework for managing risks in respect of procurement activities and operational guidelines to support staff assessing risks associated with their projects. The Commission has published the Annual Procurement Plan on AusTender (as required under the CPG) to facilitate early procurement planning and draw businesses’ attention to our planned procurement for the 2007–08 financial year. Consultants During 2006–07, nine new consultancy contracts were entered into involving total actual expenditure of $168,000. In addition, nine ongoing consultancy contracts were active during the 2006–07 year, involving total actual expenditure of $368,000. Table 28: Expenditure on consultancy contracts, 2004 - 07 2004– 2005– 2006–</p><p>05 06 07</p><p>Number of new consultancies let 8 16 9</p><p>Number of ongoing consultancy contracts that were active 2 4 9</p><p>Total actual expenditure on new consultancy contracts $’000 254 183 168</p><p>Total actual expenditure on ongoing consultancy contracts that were 231 180 368 active $’000</p><p>Total actual expenditure on all consultancy contracts $’000 485 363 536</p><p>Further information on consultancy services for 2006–07, including details of consultancy contracts over $10,000 can be found on the Commission’s website. Competitive tendering and contracting During the year, the Commission did not undertake any competitive tendering and contracting activities as defined in the Requirements for Annual reports for departments, executive agencies and FMA Act bodies. Asset management The Commission manages assets with a gross value of $8.6 million. The major asset categories are land and buildings (leasehold improvements), infrastructure, plant and equipment and intangible assets (software and intellectual property). These assets are managed by Groups to meet their business needs. The Commission annually reviews its capital budget and plan. As a result a four year capital investment plan is developed from which the Commission manages its future asset purchases and disposals. All assets owned by the Commission, including any IT assets, are subject to an annual stocktake, which is used to update and verify the accuracy of asset records. Assets are depreciated at rates applicable for each asset class, as verified by the ANAO. Exempt contracts Under the Freedom of Information Act (FOI Act) 1982, the Commissioner can issue exemptions from the requirement to publish any contract or standing offer in AusTender, on the grounds that it would disclose matters that might normally be exempt from disclosure under the FOI Act. The Commissioner did not issue any such exemptions during 2006–07. Discretionary grants During 2006–07, the Commission did not administer any discretionary grant programmes. Legal services During 2006–07 the Commission, in partnership with the office of the Official Secretary to the Governor General, tendered for a panel of legal services providers. The Australian Government Solicitor and Blake Dawson Waldron were the successful tenderers. Although the Commission’s legal services requirements are relatively small, partnering with another agency ensured a contracting process of interest to potential tenderers and the outcome delivers value for money. Information management In September 2006 the Commission released its first Information Technology (IT) strategic plan 2006– 09. The plan defines our IT strategic directions over the period 2006–09 and the actions that will allow the Commission to address the drivers of change and meet our corporate objectives over the next three years, including: a secure, robust, flexible and capable IT environment that meets business needs and aligns with Government directions a consolidated and integrated information environment where information and data are well managed and easily accessible both internally and externally a sound partnership with our internal customers and other agencies for cost effective IT service delivery a well governed IT organisation and environment supported by quality processes and standards an efficient and innovative use of IT resources. The Commission has outsourced most of its IT infrastructure support services to Volante Pty Ltd in a group contract with other agencies known as Group 8. Other members of Group 8 include the Department of Agriculture, Fisheries and Forestry, the Department of the Environment and Water, the Australian Communications and Media Authority and the Civil Aviation Safety Authority. The contract expires in June 2009. In addition to management of the contract with Volante, the Commission’s small in-house IT team focused its work in 2006–07 primarily on the delivery of the APSjobs system (see output 1.2— employment services) and management of the move of the Canberra office to new accommodation, including the introduction of VOIP telephone services. In addition, the following projects were delivered within the Commission, in collaboration with other IT expertise: the implementation of protective email marking and SPAM software a Wide Area Network performance benchmark and IT upgrade for the Commission’s regional offices the upgrade of the Commission’s SAP operating system, database and applications the establishment of a database to manage the Commission’s mailing lists the development of an online system to manage bookings for the Commission’s Health Week implementation of ‘Metadata Assistant’ to enhance editing, viewing, filing and retrieval of Microsoft Office files establishment and co-location with the Civil Aviation Safety Authority of a computer room to house the Commission’s servers. Communications The Commission conducted a small scale review of its Internet in 2006–07, with particular focus on the SES and employment policy and advice pages. The major outcomes of the review were to update the SES pages to improve the usefulness and accessibility of information to SES employees; and to reorganise the employment policy and advice pages to better reflect the information requirements of users accessing the website. These outcomes will be implemented in 2007–08. In January 2007 the Commission completed a review of its mailing lists and appointed a mailing administrator to operate a new Microsoft Access database, liaise with clients and keep the Commission’s mailing lists up to date. The new arrangements have resulted in a substantial decrease in returned mail, helping to ensure that our clients receive the information they need on time. A new internal communication tool, Work shorts, was implemented in 2007 providing a regular programme of short and entertaining seminars, featuring five-minute updates from Commission staff on programmes, projects, new products and internal activities. The seminars have been well received by staff. Library The library provides a comprehensive information research and lending service by developing, managing and maintaining resources to support the work and professional development of staff. During 2006–07, the library further rationalised the main collection as part of the preparation for the Canberra office relocation in February 2007 and continued to target new acquisitions to high priority areas, such as Aboriginal and Torres Strait Islander employment, leadership and capability development, public sector reform and governance. Other information New accommodation In February 2007 the Commission relocated its national office from the Edmund Barton Building in Barton to new premises at 16 Furzer Street, Phillip. The accommodation is modern, versatile, secure, ergonomic and provides a functional working environment designed to meet the Commission’s long term accommodation needs. Included is a high quality and professional training centre used for the efficient delivery of the Commission’s learning and development programmes (see output 2.2—programme delivery). The fit-out of the office has proven to be a success with the Commission’s staff, clients and stakeholders. Work has commenced on the proposed relocation of the Commission’s Sydney and Perth offices in mid 2007–08. Security Mandatory security requirements for Commonwealth agencies and some best practice features were incorporated into the design and construction of the Commission’s Canberra accommodation and have been included in plans for its new offices in Sydney and Perth. Further work is required to update the Commission’s security plan which had been planned for 2006– 07 but was not achieved owing to competing priorities during the year. The review is now scheduled for 2007–08. Security awareness briefings are provided to new staff as part of induction and focus on internal security practices and procedures. Further work is required to evaluate the Commission’s security awareness training for all staff. Australia Day Awards The Commission’s Australia Day celebrations include the presentation of Australia Day awards to non- SES members of the Commission in recognition of their exceptional contributions to the performance, culture and or identity of the Commission. Generally the awards are restricted to employees who have worked in the Commission for a period of 12 months or more. Contributions in many areas of the Commission were recognised in 2007. Awards, comprising six individual awards and three team awards were presented in January 2007 to: Ms Qiumeng Mao, for her professional management of International delegations Ms Rachael Shields, for her ongoing commitment to excellence in the graphic design work of the Commission Mr Andrew Glenn, for his client focus and high level of professionalism in IT Ms Catherine Potter, for her contribution towards the development of information guides targeting the attraction, recruitment and retention of Aboriginal and Torres Strait Islander Australians to the Australian Public Service Mr Michael Corke, for his work on several special tasks throughout 2006 Ms Jo Zappia, for her outstanding commitment and dedication to her work and to the clients of the Human Resource and Communications Team Public Service Act Review Team (Mr Roger Tarlinton and Mr Richard Collis) for their comprehensive review of the Public Service Act 1999 Commonwealth Association for Public Administration and Management (CAPAM)conference team (Ms Penelope Royston, Ms Theresa Graham and Ms Karen Kentwell) for their excellent organisation of the CAPAM conference Panel Implementation Team (Mr David Maybanks, Mr Daniel Florent, Ms Natalie Modric, Ms Susan Kemp, Ms Sandy Newton, Ms Mary Inman, Mr Peter Stanfield, Ms Rebecca Seevinck, Ms Amanda Taylor, Ms Debbie Phillips, Ms Amy Zhang, Ms Jayne Suitor and Ms Jenny Seymour) for their outstanding commitment to the smooth implementation of new arrangements through the Commission’s panel of providers for the delivery of leadership, learning and development services to the APS. Reconciliation action plan In May 2007 the Commission released its Reconciliation action plan 2007–2010. The plan provides specific, tangible actions to be implemented by the Commission as a way of contributing to the practical process of reconciliation and helping to improve social and economic outcomes for Aboriginal and Torres Strait Islander people. The Commission recognises that as a central agency involved in development of employees, leaders and the culture of the APS, it is vital that we take a leadership role in reconciliation and influence the implementation of reconciliation both internally and externally across the APS. Further information on the Commission’s Reconciliation action plan 2007–2010 can be found on the Commission’s website. Workplace diversity The Commission’s Workplace Diversity Programme contributes to ensuring the Commission fosters an environment that values diversity of backgrounds and ideas and achieves the creativity and performance that flows from diverse contributions. The programme will be reviewed in 2007–08 and will take into account the Commission’s Reconciliation action plan 2007–2010. The Commission’s representation of women, Aboriginal and Torres Strait Islander people, people born overseas, people born overseas with English not their first language and people identifying as having a disability are set out in Table 29. The Commission’s representation of Aboriginal and Torres Strait Islander people and people with disability compares favourably with APS-wide averages. Historically the Commission has reported annually on employment of these groups as a proportion of all employees (ongoing and non-ongoing), whereas APS-wide employment figures reported in the annual APS Statistical Bulletin report Equal Employment and Opportunity (EEO) status for ongoing employees only. The APS Statistical Bulletin 2006–07 will be released in December 2007. Table 29: Representation of EEO groups as a percentage of staff1, as at 30 June EEO Groups 2002 2003 2004 2005 2006 2007</p><p>Women 67.7 68.3 68.4 66.3 69.1 73.7 </p><p>Aboriginal and Torres Strait Islander 3.7 3.8 3.2 4.3 4.6 4.9 </p><p>People with disability 3.1 5.4 7.9 9.2 8.2 8.3 </p><p>Born overseas 16.1 15.1 16.3 20.7 21.1 18.0 </p><p>Born overseas and English not first language 5.0 7.5 5.3 7.6 7.2 7.3 Note: Further information on the Commission’s staffing numbers and equal employment opportunity (EEO) statistics are included in Appendix H. 1 The figures include ongoing and non-ongoing employees, but exclude casual staff employed on a part-time basis for specific tasks related to employment services provided on a fee-for-service basis by the Commission’s regional offices.</p><p>NAIDOC Week In July 2006 National Aboriginal and Islander Day Observance Committee (NAIDOC) Week was celebrated throughout the Commission with a range of activities including: a flag raising event at the Edmund Barton Building, a quiz and the screening of films supplied by the Australian Film Commission. The flag raising event included speeches by the Secretary of the Department of Agriculture, Fisheries and Forestry, Ms Joanna Hewitt and the Public Service Commissioner, Ms Lynelle Briggs. The event was attended by Ngunnawal elder Ms Matilda House and Torres Strait Islander, Mr Benny Hodges who raised the Aboriginal and Torres Strait Islander flags respectively. A variety of events were organised by regional offices in conjunction with the relevant IAPSEN Steering Committees. In Western Australia the NAIDOC event featured a panel of three inspirational speakers, was attended by 60 employees and commenced with the signing of a commemorative banner painted under the supervision of Ms Charmaine Green, winner of the 2006 NAIDOC poster competition. Merit Protection Commissioner Letter of transmittal The Honourable John Howard MP Prime Minister Parliament House CANBERRA ACT 2600</p><p>I am pleased to present the Merit Protection Commissioner’s report for the period 1 July 2006 to 30 June 2007 as part of the Public Service Commissioner’s Annual Report required by section 51 of the Public Service Act 1999. This report is prepared in accordance with the guidelines approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit as required by subsection 51(2) of the Public Service Act 1999. In accordance with the provisions of the Public Service Act 1999 detailing the administrative arrangements to support the performance of the Merit Protection Commissioner’s functions, some of the required information is published within the Public Service Commissioner’s Annual Report. In presenting you with the report on the activities of the Merit Protection Commissioner I would like to pay tribute to Mr Jeff Lamond PSM who occupied the office of the Merit Protection Commissioner for most of the reporting period. I also take this opportunity to express my thanks to the staff of the Australian Public Service Commission for their assistance.</p><p>Boris Budak Acting Merit Protection Commissioner October 2007 Merit Protection Commissioner's review TThe APS Values, articulated in the Public Service Act 1999 (the Act), provide a framework of enduring principles of good public administration. One of those values is that the APS provides a fair system of review of decisions taken in respect of APS employees—paragraph 10(1)(o) of the Act. A key part of the Merit Protection Commissioner’s role is to provide support for this value by providing independent external review of actions affecting individual APS employees. The review system established under section 33 of the Act and the Public Service Regulations enables non-SES APS employees to apply for review of actions that relate to their employment. Except in the case of promotion decisions, where the decision of a Promotion Review Committee (PRC) is binding on the relevant agency head, after reviewing an action or decision the Merit Protection Commissioner will make a recommendation to the agency head who is required to advise of their decision on the recommendation and the reasons for that decision. As in previous years, in 2006–07 virtually all recommendations made by the Merit Protection Commissioner were accepted in full by the relevant agency heads. Information on the number of applications for review during the year, their subject matter and discussion of trends is provided under ‘Analysis of performance’. Compared with previous years, the numbers of individual cases have decreased in most categories. In particular, there was a significant reduction in the number of PRCs. This may, in part, have been due to more agencies recognising advantages of using Independent Selection Advisory Committees (ISACs), especially in large-scale staff selection exercises. The current active labour market conditions may also have a bearing in this respect. On the other hand, the number of completed fee-for-service activities, other than ISACs, was higher than in 2005–06. Selection work for the Australian Federal Police, undertaken under a Memorandum of Understanding, continues to be the main fee–for–service activity conducted on behalf of the Merit Protection Commissioner. Significant work continued throughout the year with the Australian Taxation Office (ATO), in supporting aspects of their Workforce Availability Initiative. This included presentations by the Merit Protection Commissioner and Acting Merit Protection Commissioner to the Executive and senior staff of the ATO and to a joint meeting of the ATO and staff associations. ISACs, utilising innovative selection methodologies supported by third party industry providers, were established in the ATO for a number of waves of major national recruitment exercises. Initial indicators are that these processes have saved considerable cost and time and enabled more efficient placement of successful candidates. Work is continuing on these methodologies to continue to improve the candidate experience. During the year, the Merit Protection Commissioner addressed several APS agencies and other government organisations, including the Department of Foreign Affairs and Trade, the Australian Bureau of Statistics, the Department of Defence, the ATO, the Australian Federal Police and students of the Australian National University. He presented at a number of APS development programmes and conferences, hosted events and provided information to international delegations or officials from Indonesia, Chile, Vietnam, Thailand and the Pacific Islands on his role and that of the Australian Public Service Commission generally. Recently, the Acting Merit Protection Commissioner addressed the 2007 National Administrative Law Forum. The speech focused on the Merit Protection Commissioner’s role in external review of employment-related actions or decisions in the APS as part of the statutory framework designed to uphold values-based management and decision making by APS managers. The National Public Sector Appeals Conference, held in Adelaide between 20–22 September 2006, was attended by the Adviser to the Merit Protection Commissioner and the Regional Director, South Australia. The conference is held annually and provides an opportunity for the exchange of views by senior Commonwealth, State and Territory public sector representatives engaged in external review of employment-related decisions. A review of timeliness targets was conducted at the start of the financial year. Among other things, the review analysed the: basis on which previous targets were set; performance against those targets; reasons advanced for not meeting those targets; how review work was performed and benchmarks and quality targets of like review agencies. The outcome of the review was agreement on new targets and a new benchmark of 70 per cent of cases to be completed within those targets. In addition there was agreement on the implementation of new business and governance processes to better reflect delays that were outside the control of the Merit Protection Commissioner. Given the new target times and governance processes, it is difficult to benchmark performance against previous years. Nevertheless, it is pleasing to note that there has been an improvement in the average time to complete cases in all review categories (Tables M1 and M1.1). Late in the year, a decision of the Federal Magistrates Court of Australia in Walworth v Merit Protection Commissioner & Anor [2007] FMCA 24 (23 February 2007) had a general impact on the conduct of reviews by the Merit Protection Commissioner of cases involving breaches of the APS Code of Conduct. The case is referred to again later in this report. I have continued the practice of including case studies to illustrate the more significant issues encountered during the year. The four case studies in question can be found at the end of this report. Outlook In 2007–08 there will continue to be a focus on improving the quality of review activities. Also, as mentioned in previous reports, work will continue on providing information on APS employee review rights and the Merit Protection Commissioner will continue to perform activities associated with education about his role and functions. Role, function and structure The office of the Merit Protection Commissioner, established under section 49 of the Public Service Act 1999 (the Act), is an independent office located with the Australian Public Service Commission. The Merit Protection Commissioner helps agencies meet the requirements of the APS Values and Code of Conduct through administering the statutory review of actions scheme and performing other statutory functions. Function The Merit Protection Commissioner’s functions are set out in section 50 of the Public Service Act and include: a. inquiring into reports alleging breaches of the APS Code of Conduct made to the Merit Protection Commissioner, or to a person authorised by the Merit Protection Commissioner (whistleblowing reports) b. inquiring into alleged breaches of the Code of Conduct by the Public Service Commissioner and reporting to the Presiding Officers on the results of such inquiries including, where relevant, recommendations for sanctions c. inquiring into an APS action, at the request of the Public Service Minister, and to report to the Public Service Minister on the results of the inquiry d. such functions as are prescribed by regulations made for the purposes of section 33 (review of actions, including review of certain promotion decisions) e. such other functions as are prescribed by the regulations. In relation to paragraph (e) above, the Public Service Regulations enable the Merit Protection Commissioner to: a. establish Independent Selection Advisory Committees to make recommendations to an agency head about the suitability of candidates for engagement, promotion or assignment to duties included in APS Classification Groups 1–6 b. perform employment-related functions where the Merit Protection Commissioner is not required by a law of the Commonwealth to perform the function c. review an action of a statutory office holder who is not an agency head that affects an APS employee in their employment d. investigate complaints by former APS employees concerning separation entitlements. The Merit Protection Commissioner charges a fee for establishing Independent Selection Advisory Committees and for performing employment-related functions. Organisational structure In accordance with section 49 of the Act, the staff necessary to assist the Merit Protection Commissioner are made available by the Public Service Commissioner. They are accountable to the Merit Protection Commissioner for the functions they perform on behalf of the Merit Protection Commissioner. The staff involved are members of the Commission’s Regional Services Group who are located in the Commission’s six regional offices and comprise both ongoing and non-ongoing employees. Each regional office maintains a register of appropriately trained and qualified people who are available, as required, for non-ongoing employment. This is in addition to a separate register of APS employees approved to act as members of Promotion Review Committees (PRCs) and Independent Selection Advisory Committees (ISACs). Applications for review are generally lodged and dealt with in the office of the state or territory in which the applicant resides. In addition, the Victorian office deals with cases arising in Tasmania and the South Australian office deals with cases arising in the Northern Territory. With support from other offices as needed, the Australian Capital Territory office also provides coordination and policy support for the Merit Protection Commissioner. A new strategy to support the focus on improvement of quality has been implemented in July 2007. A dedicated review team, drawing on regional office employees with the appropriate skills and capabilities, has been established to manage the casework. There will be an emphasis on further development of these employees and developing appropriate resources to assist them in performing their roles. This report and further information about the Merit Protection Commissioner’s role and services are available on the Commission’s web site at: : http://www.apsc.gov.au/merit/. Management accountability Corporate governance The Merit Protection Commissioner, Mr Jeff Lamond PSM, took up an appointment with the Department of Immigration and Citizenship on 11 May 2007. Mr Boris Budak, Adviser to the Merit Protection Commissioner, has acted as Merit Protection Commissioner for the remainder of the reporting period. The Public Service Commissioner, as the head of the Australian Public Service Commission, is responsible for its corporate governance. The Merit Protection Commissioner is a member of the Commission’s Executive—a senior management group chaired by the Public Service Commissioner. The Merit Protection Commissioner and the Public Service Commissioner have in place a memorandum of understanding for provision of staff necessary to assist the Merit Protection Commissioner. The Adviser to the Merit Protection Commissioner acts as the main delegate of the Merit Protection Commissioner Review of performance Outputs and contribution to outcomes 2006–07 The Commission is included in the Department of Prime Minister and Cabinet’s Portfolio Budget Statements. The Public Service Commissioner, as head of the Commission, is responsible for the Commission’s financial and human resources and for assessing the level of the Commission’s achievement against its output structure. Performance information, as described in the 2006–07 Portfolio Budget Statement that relates to the Merit Protection Commissioner’s functions, can be aggregated, where relevant, from Tables M1 and M2 of this report. Table M1 comprises casework arising from APS agencies and Table M2 includes casework arising from both APS and non-APS agencies. Table M1.1 compares the timeliness in handling reviews between 2005–06 and 2006–07. Table M1: Review of actions—workload, work completed and timeliness, 1 July 2006 – 30 June 2007 Primary Promotion Primary Complaints by reviews– Secondary Cases Review reviews– former Code of reviews Committees other employees Conduct</p><p>On hand at start of 7 12 4 13 2 year</p><p>Received during 77 35 22 68 7 the period</p><p>Reviewed 45 28 5 36 7</p><p>Not accepted 6 4 17 17 2</p><p>Lapsed or 20 1 0 9 0 withdrawn</p><p>Total finalised 71 33 22 62 9 during period</p><p>On hand at end 13 14 4 19 0</p><p>Target completion 8 14 14 14 14 time (weeks) </p><p>Average 7.72 19 9.75 15.5 19.59 completion time for reviewed cases (weeks) </p><p>Completed within 31 12 4 16 4 target time (number)</p><p>Completed within 69 43 80 44 57 target time (percentage) Table M1: Review of actions—workload, work completed and timeliness, 1 July 2006 – 30 June 2007 Primary Promotion Primary Complaints by reviews– Secondary Cases Review reviews– former Code of reviews Committees other employees Conduct</p><p>Table M1.1: Comparison of timeliness in handling reviews in 2005–06 and 2006–07 2005–06 2006–07 Average time to complete Average time to complete Review type reviews and percent completed reviews and percent completed within target times within target times Weeks (%) Weeks (%)</p><p>Promotion Review 8.1 (35.23) 7.72 (69) Committees</p><p>Primary reviews - 20.74 (23.33) 19 (43) Code of Conduct</p><p>Primary reviews - 11.6 (25) 9.75 (80) other</p><p>Secondary reviews 17.01 (18.9) 15.5 (44)</p><p>Former employees 31.57 (0) 19.59 (57)</p><p>Note: Given the new target times and governance processes for this financial year, it is difficult to benchmark performance against previous years. However, this table shows that there was an improvement in the time taken to finalise reviews during 2006–07 compared with 2005–06. Table M2: Fee-for-service functions—workload and work completed, 1 July 2006–30 June 2007 Independent Selection Advisory Other fee-for-service Workload Committees functions</p><p>On hand at start of year 30 58</p><p>Received during the period 101 317</p><p>Completed 84 271</p><p>Lapsed/withdrawn 11 31</p><p>Total finalised during the 95 302 period</p><p>On hand at end 36 73 http://wayback.archive.org/web/20120227114245/http:/www.apsc.gov.au/annualreport/0607/f ouranalysis.htm Analysis of performance This part of the report provides information on reviews of action the Merit Protection Commissioner undertook during the period 1 July 2006 to 30 June 2007. The review scheme under section 33 of the Public Service Act 1999 (the Act) and Part 5 of the Public Service Regulations provides that an APS employee is entitled to review, in accordance with the Regulations, of an action that relates to their employment. Most matters that affect employees personally in the course of their employment can be dealt with in this way, except where specifically excluded by the Regulations. There are three main categories of reviews of actions conducted by the Merit Protection Commissioner: review of certain promotion decisions; review of breaches of the APS Code of Conduct; and other reviews. Table M1 provides information on the reviews of actions received and completed and the timeliness of these reviews during the year. Applications for review of promotion decisions up to and including APS Classification Group 6 jobs can be made by APS employees who were applicants for promotion to those jobs. After assessing the relative merits of the person or persons promoted and of the applicant or applicants for review, a three-member Promotion Review Committee will either confirm or vary the original promotion decision. The Committee’s decision is binding but may be subject to judicial review (see Promotion Review Committees in Table M1). Applications for review of a determination that an employee has breached the Code of Conduct or of a sanction imposed for a breach of the Code of Conduct may be made directly to the Merit Protection Commissioner (see Primary reviews – Code of Conduct in Table M1). Certain other applications for review may also be lodged directly with the Merit Protection Commissioner, for example where the relevant agency head was directly involved in the action (see Primary reviews—other in Table M1). Other applications for review of an action that may be lodged with the Merit Protection Commissioner are where the applicant has been advised by the agency head that the action is not reviewable or where the applicant is dissatisfied with the outcome of the primary review conducted by the agency head (seeSecondary reviews in Table M1). Former APS employees can apply to the Merit Protection Commissioner for review of their entitlements on separation from the APS (see Complaints by former employees in Table M1). This part of the report also provides information about the Merit Protection Commissioner’s other functions including: inquiring into whistleblowing reports; establishing Independent Selection Advisory Committees (ISACs); and performing certain other employment-related functions on a fee-for-service basis. As noted earlier, there has been an improvement in the average timeliness of handling reviews of all types. Table M1.1 compares timeliness figures for 2006–07 with those for 2005–06. In 2006–07 the average time taken to complete all the types of reviews improved. Review of certain promotion and engagement decisions Compared with last financial year, there was a significant reduction in the number of both applications for promotion review and of the cases completed this year. In 2006–07, there were 303 individual applications for promotion review (783 in 2005–06) and 45 cases were completed during the year (105 in 2005–06). In this report, a case means an application by one or more APS employees for review of a promotion decision or decisions arising from a discrete agency selection exercise. This decrease went against the general trend of the last few financial years. There was a slight decrease of 1.6 per cent in the number of reviewable promotions and engagements gazetted in 2006–07 compared with 2005–06. The lower number of applications for promotion reviews during the period is likely to be due to several large national staff selection exercises where ISACs were used. In particular, the Australian Taxation Office and the Department of Defence have completed or are currently undertaking ISACs to fill vacancies in a number of their offices across Australia, involving significant numbers of employment opportunities. Table M3 provides information on the agencies involved in promotion reviews as well as a breakdown of the number of ‘active’ and ‘protective’ applications. Unsuccessful candidates for a promotion may lodge an ‘active’ application in which they are applying for review of the promotion decision. Employees who have been promoted and whose promotion may be subject to review may lodge a ‘protective’ application. During the year, applications for reviews were received in relation to promotion decisions made in 13 agencies. Four agencies with ten or more applications for review are identified in Table M3. Nine other agencies that had less than ten applications for review are not separately identified. Promotion Review Committees (PRCs) varied 8 (2.6%) of the 307 promotion decisions reviewed. This compares to variation rates of about 5 per cent of decisions reviewed in previous years. The largest PRCs were those involving promotion decisions in the Department of Immigration and Citizenship, two with over 30 applications and two with over 20 applications. Most other PRCs involved fewer than 10 applications each. Table M3: Review of promotion decisions, by agency 1 July 2006–30 June 2007 Total ‘Active’ ‘Protective’ Promotion Promotion Agency applications applications applications decisions decisions received received received considered varied*</p><p>Department of 196 48 148 202 3 Immigration and Citizenship</p><p>Centrelink 41 9 32 51 0</p><p>Australian 35 17 18 21 1 Customs Service</p><p>Department of 14 14 0 14 2 Defence</p><p>9 other 17 13 4 19 2 agencies</p><p>Total 303 101 202 307 8</p><p>Note: An APS employee may make an application for review of one or more promotion decisions. Not all applications are considered by a PRC. Some applications are withdrawn, invalid or, in the case of ‘protective’ applications, may not be activated. Breaches of the code of conduct and other reviews During 2006–07, 132 applications for review, other than for review of promotion decisions, were received. In addition, 31 applications were carried over from the previous reporting period. During the year, the Merit Protection Commissioner completed 76 reviews in this category (one more than in 2005–06). The types of issues raised in the applications are shown in Figure M1 below. Breaches of the Code of Conduct accounted for 28 (37%) of the total. This was a slightly lower percentage than in 2005–06 (40%). Other matters reviewed related to conditions of employment, including salary, allowances, leave and other entitlements 18 (24%); workplace environment, including bullying and harassment, management practices and training and development 14 (18%); performance management, including performance appraisal and pay 4 (5%); issues about duties, including assignment of duties, selection processes and job reclassification 4 (5%); entitlements on separation 6 (8%) and misconduct procedures 2 (3%). Figure M1: Cases reviewed by subject</p><p>About Figure M1 Figure M1 shows the breakdown of issues that have been raised in reviews by their subject. Table M4 provides a breakdown of the number of reviews by agency. As has been the case for the last three years, the agencies with the highest number of applications for review were Centrelink, the Australian Taxation Office and the Department of Defence. Table M4 – Reviews completed, by agency 1 July 2006 – 30 June 2007 Primary Primary Complaints by Secondary Agency reviews - Code reviews - former Total reviews of Conduct other employees 19 Centrelink 7 1 11 0</p><p>16 Australian Taxation 5 0 9 2 Office</p><p>12 Department of 7 0 4 1 Defence</p><p>4 Department of 1 0 2 1 Health and Ageing</p><p>4 Australian Customs 2 0 1 1 Service</p><p>2 Department of 0 1 1 0 Immigration and Citizenship</p><p>2 Department of 1 0 1 0 Tourism and Table M4 – Reviews completed, by agency 1 July 2006 – 30 June 2007 Primary Primary Complaints by Secondary Agency reviews - Code reviews - former Total reviews of Conduct other employees</p><p>Resources</p><p>2 Department of 1 0 1 0 Veterans’ Affairs</p><p>2 CRS Australia 0 0 2 0</p><p>2 Australian Bureau of 1 0 1 0 Statistics</p><p>11 11 other agencies 3 3 3 2</p><p>Total 28 5 36 7 76</p><p>Note: The agency taking the action or, if the action is action by an APS employee, the agency in which the employee was employed at the time of the action.</p><p>Breaches of the Code of Conduct This year, there was a decrease in the number of applications received that related to breaches of the Code of Conduct, 35 in 2006–07 compared with 42 in 2005–06 (and 41 in 2004–05). During the year, 28 reviews were completed. They included: inappropriate use of email or internet; failure to comply with lawful and reasonable directions; unauthorised accessing of client information (‘browsing’); failure to show courtesy and respect; misuse of travel card; incorrect time keeping; unauthorised use of Commonwealth vehicles and mishandling of classified material. Of these reviews, 19 involved review of both the determination that the applicant breached the Code of Conduct and the sanction imposed for the breach. Eight applicants sought review only of the sanctions that were imposed on them and one applicant sought review only of the determination that they breached the Code of Conduct. In each of the 28 completed reviews, the Merit Protection Commissioner made a formal recommendation to the relevant agency that the decision under review be either confirmed (15), varied (10) or set aside (3). As noted earlier, the Federal Magistrates Court decision in Walworth v Merit Protection Commissioner & Anor [2007] FMCA 24 (23 February 2007) impacted on the way in which the Merit Protection Commissioner conducts reviews of action in Code of Conduct cases. Previously, where there was a breach of the agency procedures in dealing with such cases, the Merit Protection Commissioner sought to alleviate the breach by, for example, providing additional opportunity for the applicant to be heard where this might not have been adequately provided by the agency. Now, if the relevant agency procedures have not been substantially complied with, the Merit Protection Commissioner is required to recommend that the decision under review be set aside and that consideration be given to the process being redone by a different decision maker. For this reason, when reviewing a Code of Conduct decision, the Merit Protection Commissioner will be able to consider the merits of the case only after any compliance issues have been addressed by the agency, including if necessary a fresh consideration. Other reviews This year, 97 applications for review involving matters other than promotion decisions or breaches of the Code of Conduct were received. Of the 48 cases reviewed, the Merit Protection Commissioner made recommendations to set aside or vary the decision in 14 (29%) cases. In all other cases the original actions of the agencies were confirmed.</p><p>Other applications for primary review made directly to the Merit Protection Commissioner In certain circumstances, the Regulations provide for applications for primary review to be made directly to the Merit Protection Commissioner. Regulation 5.24(3) allows employees to apply directly to the Merit Protection Commissioner where the agency head has been directly involved in the action; or it is not appropriate, because of the seriousness or sensitivity of the action, for the agency head to deal with the application; or where the action is claimed to be victimisation or harassment of the employee for having made a previous application for review of action. Also, regulation 5.25(1) allows the agency head, with the agreement of the Merit Protection Commissioner, to refer an application to the Merit Protection Commissioner in similar circumstances. During the year, 18 employees made direct application to the Merit Protection Commissioner under regulation 5.24(3) and four applications were made under regulation 5.25(1). Only 5 cases met the specified criteria and were reviewed under these provisions during the year. Matters covered in the review of these applications included: changes to conditions of employment including changes to the private use of a work vehicle and not granting extension of leave without pay arrangements; and management practices including financial assistance for legal advice sought in other reviews of action.</p><p>Secondary reviews Regulation 5.29(1)(a) enables the Merit Protection Commissioner to undertake a secondary review where the agency head has told the employee an action is not a reviewable action. Also, regulation 5.29(1)(b) enables an APS employee to apply to the Merit Protection Commissioner for a secondary review where the employee is dissatisfied with the outcome of the primary review conducted by the agency head. During 2006–07, 68 applications for secondary review were received. Compared with 2005–06, this was a decrease of 11 per cent. Thirty-six cases were completed during the period. Matters covered in the review of these applications included: issues relating to: conditions of employment such as leave arrangements, salary and allowances; bullying and harassment; performance management and performance pay; attendance on training and development courses; and the way duties were assigned and reclassifications were managed.</p><p>Investigation of complaints by former employees Regulation 7.2 provides that the Merit Protection Commissioner may investigate a complaint by a former APS employee that relates to the employee’s entitlements on separation from the APS. During 2006-07, seven complaints were investigated. Matters covered in the review of these applications included recognition of and payment in lieu for long service leave and other leave, recovery by the agency of Higher Education Contribution payments made and non-payment of performance pay. Independent Selection Advisory Committees An Independent Selection Advisory Committee (ISAC) is an independent three-member committee that makes recommendations to an agency head about the suitability of candidates for employment opportunities at classifications in APS Classification Groups 1 to 6. At an agency head’s request, the Merit Protection Commissioner may establish an ISAC, usually on a fee-for-service basis. An ISAC consists of a convenor nominated by the Merit Protection Commissioner and two members, one nominated by the Merit Protection Commissioner and one nominated by the agency head. While the Merit Protection Commissioner has issued binding instructions about the procedures to be followed by ISACs, they are otherwise not subject to direction in carrying out their duties except by a Court. The ISACs process is a streamlined, cost-effective, merit-based selection process which offers flexibility to accommodate a range of selection assessment techniques. While ISACs can be used for selection exercises of any size, given that a promotion decision made on the recommendation of an ISAC is not subject to promotion review and that ISACs are independent and impartial, they are particularly suitable for large or sensitive selection processes. An order of merit established by an ISAC can be used to fill future similar vacancies for 12 months from the initial notification of the employment opportunity. Table M5 provides information on the number of ISACs established, by agency and the number of candidates considered and recommendations made. The number of ISACs that were established and that completed their selection exercises during 2006–07 was 84 (compared to 99 in 2005–06). However, in 2006-07 there were 101 requests for new ISACs (87 in 2005–06). This continues the trend over the last few years of increased use and acceptability of ISACs. During the year, ISACs considered 6756 job applications and made recommendations in respect of 1265 candidates. The Department of Defence and the Australian Taxation Office were the highest users of ISACs during the year. The Department of Immigration and Citizenship also used ISACs to consider a large number of candidates. Table M5: Independent Selection Advisory Committees convened 1 July 2006–30 June 2007 Committees Candidates Candidates Agency established considered recommended</p><p>Department of Defence 38 458 93</p><p>Australian Taxation Office 14 3958 551</p><p>Department of Immigration and 7 941 190 Citizenship</p><p>Department of Education, Science 7 119 42 and Training</p><p>Australian Customs Service 6 345 63</p><p>Australian Quarantine & Inspection 4 167 15 Service</p><p>Department of Agriculture, Fisheries 3 176 93 and Forestry</p><p>Department of Foreign Affairs & 2 441 177 Trade</p><p>Department of Families, Community 1 51 6 Services and Indigenous Affairs</p><p>Centrelink 1 73 22</p><p>Australian Communications and 1 27 13 Media Authority</p><p>Total 84 6756 1265 Whistleblowing The Public Service Act 1999 (the Act) and Regulations provide a scheme for APS employees to report alleged breaches of the Code of Conduct (such reports are known as whistleblowing reports). Agency heads are responsible for establishing procedures for dealing with whistleblower reports. In the first instance, such reports are expected to be made to and investigated by, the relevant agency head. Where the APS employee is not satisfied with the findings of the agency-based investigation, or in other specified circumstances such as where it is not appropriate for the agency head to deal with the matter, a whistleblowing report may be referred to the Public Service Commissioner or the Merit Protection Commissioner. Information on whistleblowing reports made to the Public Service Commissioner is contained in her annual report. At the start of 2006-07, there were two whistleblowing reports on hand. During the year, ten reports were received, five more than in 2005-06. Six of those reports were out of jurisdiction, four were not accepted as the Merit Protection Commissioner considered that the relevant matters could more appropriately be considered by the relevant agency head, at least in the first instance and one did not provide evidence in support of the allegations made to justify an inquiry. Issues raised included alleged conflict of interest and bullying and harassment. There was one report on hand at the end of the reporting period. Other functions Under the Act, the Public Service Minister can ask the Merit Protection Commissioner to inquire into an APS action and report to the Minister on the results of the inquiry. No such requests were received during the reporting period. The Act also provides for the Merit Protection Commissioner to inquire into alleged breaches of the Code of Conduct by the Public Service Commissioner and to report to the Presiding Officers on the results of such inquiries. No such allegations were received during the reporting period. Employment-related services (fee-for-service) The Regulations provide that the Merit Protection Commissioner may, but is not required to carry out a range of employment-related functions on behalf of various non-APS bodies such as Commonwealth authorities to which the Act does not apply. The Merit Protection Commissioner may charge a fee for such services. Some of the services are provided on an ongoing basis under a standing memorandum of understanding. For example, the Merit Protection Commissioner has had for some time an arrangement with the Australian Federal Police (AFP) to provide convenors for selection panels for vacancies that arise in that organisation. These are known as Independent Selection Advisory Panels (ISAPs). The Merit Protection Commissioner also provides selection training to AFP employees. Table M6 reports on the employment-related services provided during 2006–07. Table M7 provides details in relation to the AFP Independent Selection Advisory Panels established during the same period. Other fee-for-service work undertaken on behalf of the Merit Protection Commissioner included various training and staff selection services for a number of non-APS agencies. Table M6: Employment-related services 1 July 2006–30 June 2007 Nature of service Number completed</p><p>AFP Independent Selection Advisory Panels 257 </p><p>Training 7 </p><p>Scribing services for Selection Advisory Committees 5 </p><p>Convenor of Selection Advisory Committee 1 Table M6: Employment-related services 1 July 2006–30 June 2007 Nature of service Number completed</p><p>Member of Selection Advisory Committee 1</p><p>Total 271</p><p>Table M7: Independent Selection Advisory Panels convened 1 July 2006–30 June 2007 Number of panels Candidates Candidates Organisation established considered recommended</p><p>Australian Federal 257 4421 1129 Police http:/www.apsc.gov.au/annualreport/0607/fourstudies.htm Review of actions case studies The following four review case studies highlight some of the more significant issues encountered during the year by the Merit Protection Commissioner, including that: staff selection processes in the Australian Public Service must comply with the merit principle and administrative law and must not only be fair but also be seen as fair administrative law requires decision makers to be free from both actual bias and any reasonable apprehension of bias this means that it is not enough for the decision maker making a promotion decision to be unbiased —it is equally important that a fair-minded onlooker should not reasonably suspect or apprehend that the decision maker might not have brought an impartial mind to the decision if a reasonable suspicion of bias exists in a case, the decision in the case should be made by another authorised decision maker next, in relation to determining breaches of the APS Code of Conduct, it is generally desirable to strictly adhere to agency procedures issued under subsection 15(3) of the Act Chapter 5 of the Public Service Commissioner's Directions 1999 includes as a minimum requirement that—before a determination is made in relation to a suspected breach, the affected employee must be informed of the details of that suspected breach and given a reasonable opportunity to make a statement in relation to the suspected breach in this context, it is not acceptable to tell the employee that a ‘draft’, ‘in principle’ or ‘preliminary’ decision has been made yet suspended pending any submission or response they might wish to make—the opportunity to be heard must precede the formation of the decision finally, clear legal authority (usually evidenced by a written instrument of delegation or authorisation) must exist for an administrative decision that adversely affects an APS employee an agency cannot rely upon or ratify a decision that was invalidly made by an unauthorised person (in some cases, however, the decision might be able to be re-made by an authorised decision maker). Case study one Staff selection—Conflict of interest and reasonable apprehension of bias—Failure to comply with agency procedures</p><p>Application In this case an APS employee applied for review of a promotion decision to an Executive Level (EL) 1 job in their agency. The applicant was an unsuccessful candidate for the vacancy. Here it should be mentioned that in cases involving promotion to an EL 1 or 2 job, the Merit Protection Commissioner cannot conduct a merits review but can review the relevant process.</p><p>Review Public confidence in the integrity of the APS is vital to the proper operation of the Australian government. This confidence may be jeopardised if the Australian community perceives a conflict of interest. Consequently, APS employees need to be aware that their private interests, whether personal or financial, could conflict with their official duties. Also, general administrative law principles about procedural fairness require among other things that decision-makers be and be seen to be, unbiased or disinterested in the matter to be decided. In this context, in relation to staff selection, the Australian Public Service Commission said the following in its publication APS Values and Code of Conduct in practice: ‘Members of selection teams will often know one or more applicants. Where a selection team member has a relationship with an applicant that might give rise to a conflict of interest, it should be declared to the chair and any other selection team members (or to the delegate and other selection team members if the chair is making the declaration). It should then be decided whether the selection team member should stand aside from the process or the consideration of the particular candidate.’ However, when investigating this case, the Merit Protection Commissioner found that the chair of the selection committee was also the delegate who made the relevant promotion decision and a referee for both the applicant for review and the successful candidate and was also claimed to be a close friend of the successful candidate (that claim was not denied). Notwithstanding the additional requirement in the relevant agency’s staff selection procedures that where the delegate is a member of the selection advisory committee, the committee’s final report should be referred to the next level up for consideration and approval, this was not done and the delegate said: ‘On the issue about being ‘judge, jury and executioner’…I have been down this path before and thought the issue would not have been controversial’</p><p>Outcome To comply properly with the merit principle, APS staff selection processes must not only be fair but must also be perceived to be fair. That said, the relevant promotion decision had already taken effect and could not in any event be revoked by the Merit Protection Commissioner. In the circumstances, the Commissioner recommended that the agency review its staff selection practices to ensure that their future staff selection exercises are consistent with the Commission’s guidelines for avoiding and managing conflict of interest and administrative law principles relating to procedural fairness. Case study two Breach of the APS Code of Conduct—Failure to comply with procedural fairness and agency procedures</p><p>Application An APS employee applied for review of a decision that, by threatening other staff, they breached subsections 13(3) and (11) of the Public Service Act 1999 (the Act) and of the sanction imposed on them for the breaches in question—reduction in classification from APS 5/6 to APS 3/4. In their application, the applicant argued that they were denied procedural fairness in that, contrary to the requirements of the relevant agency procedures, they were not given adequate opportunity— before the agency delegate decided that they had breached the Code—to present their case in reply to the allegations.</p><p>Review Subsection 15(3) of the Act provides that agency heads must establish procedures for determining whether an APS employee in the agency has breached the Code of Conduct. Chapter 5 of the Public Service Commissioner’s Directions 1999 sets out the basic requirements that such procedures must comply with. When reviewing a decision that an APS employee has breached the Code, the Merit Protection Commissioner is required to consider, as a threshold matter, whether the agency’s Code of Conduct procedures comply with the Public Service Commissioner’s Directions and, if so, whether in the case in question there was substantial compliance with those procedures—see generally Walworth v Merit Protection Commissioner and Anor [2007] FMCA 24 (23 February 2007). In this case, after investigating, the Merit Protection Commissioner was satisfied that the agency failed to comply with its own Code of Conduct procedures and accord procedural fairness to the applicant because it failed to take adequate steps to contact them before deciding that they had breached the Code. Then, after contact was established, the agency claimed that the decision in question was only a ‘preliminary decision’ and that a ‘final decision’ would be made after considering any comments from the applicant. However, when those comments were received, the agency delegate wrote to the applicant’s representative along the following lines: ‘At your request, I granted [the applicant] the opportunity to provide me with further information… A submission from [the applicant] dated 16 June 2006 was supplied by you on 19 June 2006. It is not clear what you expected me to do with that submission, as I had already made a decision about [the applicant’s] case’ [emphasis added].</p><p>Outcome In the circumstances, the Merit Protection Commissioner was unable to consider the substantive merits of the case and recommended instead that the decisions under review be set aside and that consideration be given to whether the process should be re-done, in accordance with the procedures, by a different decision maker. Case study three Complaint about alleged breach of the APS Code of Conduct by another person—Power to determine breach—Failure to comply with agency procedures</p><p>Application An APS employee applied for secondary review by the Merit Protection Commissioner of a decision made in relation to their complaint about an alleged breach of the APS Code of Conduct by another person. In short, after separate investigations by two different consultants, the relevant agency decided not to take any action in the matter.</p><p>Review As the Australian Government Solicitor said in its publication Misconduct in the Australian Public Service (Legal Briefing No 80 of 24 October 2006), the purpose of the misconduct regime in the APS is to protect the public, maintain proper standards of conduct by APS employees and protect the reputation of the APS. In relation to lawful selection of decision makers to deal with cases of alleged misconduct, the Australian Government Solicitor said: ‘A person who determines whether or not there has been a breach of the Code must be selected in accordance with relevant provisions in the procedures of the agency under section 15(3) of the PS Act. The procedures will generally determine who makes the selection and how the selection is made… Section 15(3) procedures commonly permit any person to be selected as the decision maker in relation to breach. In this case, it is not necessary that the person be an APS employee within the agency or elsewhere. They can for example be a consultant who is not employed in the APS.’ In this case, the first consultant who investigated the alleged incident found that there was no basis on which to conclude that the person in question had breached the Code of Conduct. However, when the complainant pointed out that the consultant had failed to take into account certain material evidence, the agency agreed to reopen the matter and selected another consultant to determine under its section 15(3) procedures whether that APS employee had breached the Code. Having reviewed the first consultant’s report and taken additional evidence, the second consultant determined that the APS employee in question had in fact breached the Code. Nevertheless, the agency subsequently decided that it preferred the first report and that it would not take any further action in the matter. On review, the Merit Protection Commissioner established that while the second consultant was properly appointed under the agency’s section 15(3) procedures, the HR manager who decided that the second consultant’s report should not be acted upon had no formal authority under those procedures to override that consultant’s determination.</p><p>Outcome In the circumstances, the Merit Protection Commissioner advised the agency that: a. the HR manager’s decision was invalid; and b. what the agency should do next was to consider what if any sanction should be imposed on the APS employee in question for their breach of the Code. Case study four Breach of the APS Code of Conduct—Gathering evidence— Recording meetings</p><p>Application In this case the applicant was found to have breached subsection 13(3) of the Public Service Act 1999 (the Act) which requires APS employees, when acting in the course of APS employment, to treat everyone with respect and courtesy and without harassment: a. because of certain inappropriate behaviour towards another APS employee in their agency; and b. because they attempted to openly record a meeting with management, despite being told that they had no permission to do so. </p><p>Review After investigating, the Merit Protection Commissioner was reasonably satisfied that there was sufficient evidence that, on more than one occasion, the applicant failed to treat another APS employee with respect and courtesy and without harassment, as required by subsection 13(3) of the Act. On the other hand, in relation to the applicant’s attempt to openly record a meeting, both the Australian Public Service Commission and the Australian Industrial Relations Commission have said that in certain circumstances recording a meeting, if done openly, may not only be not inappropriate but may in fact be desirable. For example, in Curr and Australian Taxation Office (U2004/3067 of 8 November 2004), the Australian Industrial Relations Commission found that there was nothing improper arising from the applicant’s desire to openly record a meeting. Also, in its recent publication Handling Misconduct, the Australian Public Service Commission said that, before interviewing an APS employee in relation to alleged misconduct, it would be good practice to decide whether the interview is to be audio-recorded (in which case a copy of the recording should be made available to the interviewee) or whether a written record of interview is to be prepared (in which case it may be convenient to use a note-taker). In the applicant’s case, they were asked to attend a meeting with management on the day they returned from sick leave. Given the short notice of that meeting, they were unable to arrange a support person and felt ambushed and threatened. As the agency did not offer to record or minute the meeting as they requested, they announced that they would themselves record it and, despite oral and written instructions that they had no permission to do so, openly attempted it. Given the relative complexity of issues in the case, it would have been reasonable to expect that the applicant would wish to be supported in their discussions with management, or to have the meeting minuted or recorded. This suggested that the instruction to the applicant that the meeting was not to be recorded, while lawful, was not reasonable and that it would have been preferable to arrange for the meeting to be recorded or minuted by the agency.</p><p>Outcome Consequently, the Merit Protection Commissioner recommended that the decision that the applicant breached the Code of Conduct be amended to clarify that this did not include their attempt to record the meeting with management to discuss their case. Appendixes Appendix A Resources for the outcome Table 30: Resources for the outcome (1) Actual (2) Budget Variation (column Budget Department price of outputs 2006–07 2006–07 1 minus column 2) 2007–08 $,000 $,000 $,000 $,000 Output group 1 – APS Policy and employment services Output 1.1 – Advice and support 2,414 2,210 204 2,001 to Minister, Executive and Agency Heads Output 1.2 – Employment 6,430 4,994 1,436 5,997 services Output 1.3 – International 2,459 2,927 -468 2,906 assistance and organisations Output 1.4 – Merit Protection 2,930 3,089 -159 3,165 and other services Subtotal output group 1 14,233 13,220 1,013 14,069 </p><p>Output group 2 – Development programmes Output 2.1 – Leadership 5,046 4,010 1,036 5,244 services Output 2.2 – Programme 8,217 7,085 1,132 8,553 delivery Output 2.3 – National / 2,467 1,670 797 1,902 International programmes Subtotal output group 2 15,730 12,765 2,965 15,699 </p><p>Output group 3 – Better practice and evaluation Output 3.1 – Indigenous 4,494 4,338 156 4,663 employment Output 3.2 – Promote better 1,982 1,730 252 2,016 practice Output 3.3 – Statistical / 1,246 1,280 -34 1,368 Information services Output 3.4 – Research and 2,078 2,098 -20 1,528 evaluation Subtotal output group 3 9,800 9,446 354 9,575 </p><p>Total price of outcome 39,763 35,431 4,332 39,343 </p><p>Departmental income</p><p>Revenue from Government 20,591 20,591 0 20,498 (Appropriation) Income from other Sources 19,172 14,840 4,332 18,845 </p><p>Total Departmental income 39,763 35,431 4,332 39,343 </p><p>Staffing Average staffing level 201 193 8 206 </p><p>Note: Budgets are as per Portfolio Budgets Statements Appendix B</p><p>Independent Auditor's Report To the Prime Minister</p><p>Matters relating to the Electronic Presentation of the Audited Financial Statements This auditor's report relates to the financial statements published on the website of the Australian Public Service Commission for the year ended 30 June 2007. The Agency's Chief Executive is responsible for the integrity of the web site. This auditor's report refers only to the primary statements, schedules and notes named below. It does not provide an opinion on any other information which may have been hyperlinked to/from the audited financial statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial statements in the Australian Public Service Commission's annual report. Scope I have audited the accompanying financial statements of the Australian Public Service Commission for the year ended 30 June 2007, which comprise: a Statement by the Chief Executive and Chief Finance Officer; Income Statement; Balance Sheet; Statement of Changes in Equity; Cash Flow Statement; Schedules of Commitments and Contingencies; a Summary of Significant Accounting Policies; and other explanatory notes.</p><p>The Responsibility of the Chief Executive for the Financial Statements The Agency's Chief Executive is responsible for the preparation and fair presentation of the financial statements in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997 and the Australian Accounting Standards (including the Australian Accounting Interpretations). This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.</p><p>Auditor's Responsibility My responsibility is to express an opinion on the financial statements based on my audit. My audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Agency's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Agency's Chief Executive, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.</p><p>Independence In conducting the audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the ethical requirements of the Australian accounting profession. Auditor's Opinion In my opinion, the financial statements of the Australian Public Service Commission: 1. have been prepared in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, and the Australian Accounting Standards (including the Australian Accounting Interpretations); and 2. give a true and fair view of the matters required by the Finance Minister's Orders including the Australian Public Service Commission's financial position as at 30 June 2007 and of its financial performance and its cash flows for the year then ended. Australian National Audit Office</p><p>Puspa Dash Acting Executive Director Delegate of the Auditor-General Canberra 28 August 2007 Australian Public Service Commission income statement for the year ended 30 June 2007 2007 2006 Notes $ ’000 $ ’000 Income Revenue 3a Revenue from Government 20,591 18,073 </p><p>3b Sale of goods and rendering of services 19,103 20,061 </p><p>39,694 38,134 </p><p>Gains 3c Sale of assets 30 2 </p><p>3d Resources received free of charge 39 39 </p><p>69 41 </p><p>Total Income 39,763 38,175 </p><p>Expense 4a Employee benefits 19,408 17,003 </p><p>4b Suppliers 16,686 18,892 </p><p>4c Depreciation and amortisation 1,278 1,094 </p><p>4d Finance costs 47 50 </p><p>4e Write-down and impairment of assets - 2 </p><p>Total expense 37,419 37,041 </p><p>Surplus / (deficit) attributable to the Australian Government 2,344 1,134 </p><p>The above statement should be read in conjunction with the accompanying notes. Australian Public Service Commission balance sheet as at 30 June 2007 2007 2006 Notes $’000 $’000 Assets Financial assets 5a Cash 559 439 </p><p>5b Trade and other receivables 13,143 12,674 </p><p>Total financial assets 13,702 13,113 </p><p>Non-financial assets 6a,6d Land and buildings 3,079 828 </p><p>6b,6d Infrastructure, plant and equipment 2,147 734 </p><p>6c,6d Intangibles 933 648 </p><p>6e Inventories 206 110 </p><p>6f Prepayments paid 567 364 </p><p>Total non-financial assets 6,932 2,684 </p><p>Total assets 20,634 15,797 </p><p>Liabilities Payables 7a Suppliers 4,004 3,937 </p><p>7b Prepayments received 2,930 2,151 </p><p>7c Other payables 43 37 </p><p>Total payables 6,977 6,125 </p><p>Interest bearing liabilities 8a Leases 386 421 </p><p>8b Lease incentives 1,421 106 </p><p>Total interest bearing liabilities 1,807 527 2007 2006 Notes $’000 $’000 Provisions 9a Employees 5,337 5,149 </p><p>9b Make good 167 494 </p><p>Total provisions 5,504 5,643 </p><p>Total liabilities 14,288 12,295 </p><p>NET ASSETS 6,346 3,502 </p><p>Equity</p><p>Contributed equity (1,394) (1,894) </p><p>Asset revaluation reserve 1,013 1,013 </p><p>Retained surplus / (accumulated deficit) 6,727 4,383 </p><p>Total equity 6,346 3,502 </p><p>Current assets 14,475 13,587 </p><p>Non-current assets 6,159 2,210 </p><p>Current liabilities 12,292 11,661 </p><p>Non-current liabilities 1,996 634 </p><p>The above statement should be read in conjunction with the accompanying notes. Australian Public Service Commission statement of changes in equity for the year ended 30 June 2007 Asset Retained Contributed Item revaluation Total equity surpluses equity reserve 2007 2006 2007 2006 2007 2006 2007 2006</p><p>$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Opening Balance 4,383 3,249 1,013 1,013 (1,894) (1,894) 3,502 2,368 </p><p>Income and expense: </p><p>Surplus / (deficit) 2,344 1,134 - - - - 2,344 1,134 for the period</p><p>Transactions with owner: </p><p>Contributions by owner: </p><p>Appropriation - - - - 500 - 500 - (equity injection)</p><p>Closing balance 6,727 4,383 1,013 1,013 (1,394) (1,894) 6,346 3,502 </p><p>The above statement should be read in conjunction with the accompanying notes. Australian Public Service Commission cash flow statement for the year ended 30 June 2007 2007 2006 Notes $’000 $’000 Operating activities Cash received </p><p>Goods 23,796 21,451 and services</p><p>Appropri 20,591 18,073 ations</p><p>Other 483 571 </p><p>Total 44,870 40,095 cash received Cash used </p><p>Employe 19,664 17,512 es</p><p>Supplier 20,373 19,155 s</p><p>Net GST 109 254 paid to ATO </p><p>Cash 1,300 2,300 transferr ed to the OPA</p><p>Other 798 824 </p><p>Total 42,244 40,045 cash used Net cash 11 2,626 50 from / (used by) operating activities </p><p>Investing Activities Cash received 2007 2006 Notes $’000 $’000</p><p>Proceed 82 1 s from sales of property, plant and equipme nt</p><p>Lease 1,384 - incentive</p><p>Total 1,466 1 cash received Cash used </p><p>Purchas 4,083 193 e of property, plant and equipme nt</p><p>Purchas 389 283 e of intangibl es</p><p>Total 4,472 476 cash used Net cash (3,006) (475) from / (used by) investing activities </p><p>Financing Activities Cash received </p><p>Appropri 500 - ations – contribut ed equity</p><p>Total 500 - cash received Net cash 500 - from / (used by) 2007 2006 Notes $’000 $’000 financing activities </p><p>Net increase / (decrease) in cash held 120 (425) </p><p>Cash at the beginning of the reporting period 439 864 </p><p>Cash at the end of the reporting period 5a 559 439 Australian Public Service Commission schedule of commitments as at 30 June 2007 2007 2006 </p><p>$’000 $’000 By Type Commitments receivable GST recoverable on (4,165) (3,638) commitments Total commitments (4,165) (3,638) receivable Capital commitments Intangibles 2 - Total capital 2 - commitments Other commitments Operating leases1 39,213 34,892 Other commitments2 6,589 5,112 Total other 45,802 40,004 commitments Net commitments 41,639 36,366 </p><p>By Maturity GST recoverable on commitments One year or less (779) (678) </p><p>From one to five years (1,113) (1,056) </p><p>Over five years (2,273) (1,904) </p><p>(4,165) (3,638) Capital commitments One year or less 2 - </p><p>From one to five years - - </p><p>Over five years - - </p><p>2 - Operating lease commitments One year or less 4,119 3,305 </p><p>From one to five years 11,166 10,648 </p><p>Over five years 23,928 20,939 </p><p>39,213 34,892 Other commitments One year or less 4,445 4,154 2007 2006 </p><p>$’000 $’000 From one to five years 1,074 958 </p><p>Over five years 1,070 - </p><p>6,589 5,112 Net commitments by maturity 41,639 36,366</p><p>Contingent assets - -</p><p>Contingent liabilities - - Net contingent assets / (liabilities) - -</p><p>Quantifiable contingencies As at 30 June 2007 the Commission has no quantifiable contingencies (2006: nil).</p><p>Unquantifiable contingencies As at 30 June 2007 the Commission has no unquantifiable contingencies (2006: nil).</p><p>Remote contingencies As at 30 June 2007 the Commission has no material remote contingencies (2006: nil).</p><p>NB: Commitments are GST inclusive where relevant. 1 Operating leases included are effectively non-cancellable and include leases for office accommodation, motor vehicles and IT equipment and services. </p><p>Nature of lease General description of leasing arrangement Leases for office accommodation Lease payments are subject to rent reviews in accordance with the lease agreement. The initial periods of office accommodation leases are still current. </p><p>Lease for general IT services, equipment, software and support The lessor provides general IT services, equipment, software and support for the Commission. The initial contract of 5 years has been extended for 4 years. Pricing is subject to review annually. </p><p>Agreements for the provision of motor vehicles to senior executive officers No contingent rentals exist. There are no purchase options available to the Commission. </p><p>2 Other commitments comprise amounts committed for development and administrative activities. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 1. Summary of significant accounting policies 1.1 Objective of the Commission The Commission’s mission is to promote, review and evaluate a values-based Australian Public Service and to foster its capability. The Commission is structured to meet one outcome, to foster a confident, high quality, values-based and sustainable Australian Public Service. The continued existence of the Commission in its present form and with its present programmes is dependant on Government policy and on continuing appropriations by Parliament for the Commission’s administration and programmes. 1.2 Basis of accounting The financial statements are required by Section 49 of the Financial Management and Accountability Act 1997 and are a general purpose financial report. The statements have been prepared in accordance with: Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2006 and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period. The financial report has been prepared on an accrual basis and is in accordance with historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the operating result or the net financial position. The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless disclosure of the full amount is specifically required. Unless alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrealised are reported in the Schedule of Commitments and the Schedule of Contingencies. Unless alternative treatment is specifically required by an accounting standard, income and expense are recognised in the Income Statement when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured. 1.3 Significant Accounting Judgements and Estimates In the process of applying the accounting policies listed in this note, the Commission has made the following judgement that has a significant impact on the amounts recorded in the financial statements: The fair value of make good for lease-hold improvements is based on an estimated average cost per square metre. The actual cost, if any, of the make good for each premises will depend on the relevant factors at the time of vacating the premises. No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period. 1.4 Statement of Compliance Australian Accounting Standards require a statement of compliance with International Financial Reporting Standards (IFRS) to be made where the financial report complies with these standards. Some Australian equivalents to IFRSs and other Australian Accounting Standards contain requirements specific to not-for-profit entities that are inconsistent with IFRSs requirements. The Commission is a not-for-profit entity and has applied these requirements, so while this financial report complies with Australian Accounting Standards including the Australian Equivalents to International Financial Reporting Standards (AEIFRS) it cannot make this statement. </p><p>Adoption of new Australian Accounting Standard requirements</p><p>Inventories held for distribution by not-for-profit entities: The Commission has adopted 2007-5 Amendments to Australian Accounting Standard AASB 102 from 1 July 2006 rather than 1 July 2007. This requires i nventories held for distribution to be valued at cost adjusted when applicable for any loss in service potential. Previously inventory held for distribution were required to be held at the lower of cost or current replacement cost. This has no impact on the Commission’s carrying amount of inventory.</p><p>Other: No other accounting standard has been adopted earlier than the effective date in the current period. </p><p>Other effective requirement changes The following amendments, new or revised standards or interpretations have become effective but have had no financial impact or do not apply to the operations of the Commission.</p><p>Amendments: 2004-3 Amendments to Australian Accounting Standards [AASB 119] 2005-1 Amendments to Australian Accounting Standards [AASBs 139] 2005-3 Amendments to Australian Accounting Standards [AASB 119] 2005-4 Amendments to Australian Accounting Standards [AASBs 139, 132, 1, 1023 and 1038] 2005-5 Amendments to Australian Accounting Standards [AASB 1 and 139] 2005-6 Amendments to Australian Accounting Standards [AASB 3] 2005-9 Amendments to Australian Accounting Standards [AASBs 4, 1023, 139 and 132] 2006-1 Amendments to Australian Accounting Standards [AASB 121] 2006-3 Amendments to Australian Accounting Standards [AASB 1045] 2006-4 Amendments to Australian Accounting Standards [AASBs 134 and 1049] 2007-2 Amendments to Australian Accounting Standards [AASBs 1, 117, 118, 120, 121, 127, 131 and 139] </p><p>New standard: AASB 1048 Interpretation and Application of Standards </p><p>Interpretations: UIG 4 Determining whether an Arrangement contains a Lease UIG 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds UIG 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment UIG 7 Applying the Restatement Approach under AASB 129 Financial Reporting in Hyperinflationary Economies UIG 8 Scope of AASB 2 UIG 9 Reassessment of Embedded Derivatives </p><p>Future Australian Accounting Standard requirements The following new standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the impact of adopting these pronouncements when effective will have no material financial impact on future reporting periods. </p><p>Financial instrument disclosure: AASB 7 Financial Instruments: Disclosures is effective for reporting periods beginning on or after 1 January 2007 (the 2007-08 financial year) and amends the disclosure requirements for financial instruments. In general AASB 7 requires greater disclosure than that presently. Associated with the introduction of AASB 7 a number of accounting standards were amended to reference the new standard or remove the present disclosure requirements through 2005-10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]. These changes have no financial impact but will effect the disclosure presented in future financial reports. </p><p>Other: The following standards and interpretations have been issued but will have no financial impact or are not applicable to the operations of the Commission. 2007-1 Amendments to Australian Accounting Standards [AASB 2] 2007-3 Amendments to Australian Accounting Standards [AASBs 5, 6,102, 107, 119, 127, 134, 136, 1023, 1038] 2007-4 Amendments to Australian Accounting Standards [AASBs 1, 2, 3, 4, 5, 6, 7, 102, 107, 108, 110, 112, 114, 116, 117, 118, 119, 120, 121, 127, 128, 129, 130, 131, 132, 133, 134, 136, 137, 138, 139, 141, 1023 & 1038] 2007-6 Amendments to Australian Accounting Standards [AASB 1, 101, 107, 111, 116 and 123] AASB 8 Operating Segments AASB 1049 Financial Reporting of General Government Sectors by Governments UIG 10 Interim Financial Reporting and Impairment UIG 11 AASB 2 – Group and Treasury Share Transactions UIG 12 Service Concession arrangements 1.5 Revenue </p><p>Revenue from Government Amounts appropriated for departmental outputs appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.</p><p>Other revenue Revenue from the sale of goods is recognised when: The risks and rewards of ownership have been transferred to the buyer The seller retains no managerial involvement nor effective control over the goods The revenue and transaction costs incurred can be reliably measured and It is probable that the economic benefits associated with the transaction will flow to the entity. Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when: The amount of revenue, stage of completion and transaction costs incurred can be reliably measured and The probable economic benefits with the transaction will flow to the entity. The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collectability of the debt is no longer probable. 1.6 Gains </p><p>Resources received free of charge Services received free of charge are recognised as gains when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset qualifies for recognition, unless received from another government agency as a consequence of a restructuring of administrative arrangements (Refer to Note 1.7).</p><p>Other Gains Gains from the sale of assets are recognised when control of the asset has passed to the buyer. 1.7 Transactions with the Government as owner</p><p>Equity injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) are recognised directly in Contributed Equity in that year.</p><p>Restructuring of Administrative Arrangements Net assets received from or relinquished to another Australian Government agency or authority under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.</p><p>Other distributions to owners The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. 1.8 Employee benefits Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination benefits due within 12 months of balance date are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.</p><p>Leave The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave likely to be taken in future years by employees of the Commission is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration, including the Commission’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2007. In determining the present value of the liability, the Commission has used the Australian Government shorthand method.</p><p>Separation and redundancy Provision is only made for separation and redundancy benefit payments when the Commission has developed a detailed formal plan and has informed those employees affected.</p><p>Superannuation Staff of the Commission are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap). From 1 July 2005, new employees are eligible to join the PSSap scheme. The CSS and PSS are defined benefit schemes for the Commonwealth. The PSSap is a defined contribution scheme. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. The Commission makes employer contributions to the Australian Government at rates determined by an actuary to be sufficient to meet the cost to the Government of the superannuation entitlements of the Commission’s employees. The liability for superannuation recognised as at 30 June represents the estimated superannuation payable on the provision for annual leave and long service leave. 1.9 Leases A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all risks and benefits incidental to ownership of leased non- current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the present value of minimum lease payments at the inception of the lease and a liability recognised for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense. Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from the leased assets. Lease incentives taking the form of “free” leasehold improvements, contributions and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability. 1.10 Borrowing costs All borrowing costs are expensed as incurred. 1.11 Cash Cash means notes and coins held and deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount. 1.12 Financial risk management The Commission’s activities expose it to normal commercial financial risk. As a result of the nature of the Commission’s business and internal and Australian Government policies, dealing with the management of financial risk, the Commission’s exposure to market, credit, liquidity and cash flow and fair value interest rate risk is considered to be low. 1.13 Derecognition of financial assets and liabilities Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or the asset is transferred to another entity. In the case of a transfer to another entity, it is necessary that the risks and rewards of ownership are also transferred. Financial liabilities are derecognised when the obligation under the contract is discharged or cancelled or expires. 1.14 Impairment of Financial Assets Financial assets are assessed for impairment at each balance date.</p><p>Financial Assets held at Amortised Cost If there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the income statement.</p><p>Financial Assets held at Cost If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value because it cannot be reliably measured, or a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.</p><p>Available for Sale Financial Assets If there is objective evidence that an impairment loss on an available for sale financial asset has been incurred, the amount of the difference between its cost, less principal repayments and amortisation, and its current fair value, less any impairment loss previously recognised in expense, is transferred from equity to the income statement. 1.15 Supplier and other payables Supplier and other payables are recognised at their amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). 1.16 Contingent liabilities and contingent assets Contingent liabilities and assets are not recognised in the Balance Sheet but are discussed in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably measured. Contingent assets are reported when settlement is probable, and contingent liabilities are recognised when settlement is greater than remote. 1.17 Acquisition of assets Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor agency’s accounts immediately prior to the restructuring. 1.18 Property, plant and equipment </p><p>Asset recognition threshold Purchases of property, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to make good provisions in property leases taken up by the Commission where there exists an obligation to restore the property to its original condition. These costs are included in the value of the Commission’s leasehold improvements with a corresponding provision for the make good taken up.</p><p>Revaluations Fair values for each class of asset are determined as shown below: Asset class Fair value measured at:</p><p>Leasehold improvements Depreciated replacement cost</p><p>Infrastructure, plant and equipment Market selling price</p><p>Following initial recognition at cost, property plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through. Revaluation decrements for a class of assets are recognised directly through operating results except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.</p><p>Depreciation Depreciable property, plant and equipment assets are written off to their estimated residual value over their estimated useful life to the Commission using, in all cases, the straight-line method of depreciation. Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease. Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation and amortisation rates applying to each class of depreciable asset are based on the following useful lives: Asset class 2007 2006 </p><p>Leasehold improvements Lease term Lease term </p><p>Plant and equipment 1 to 7 years 1 to 7 years </p><p>Assets held under finance lease Lease term Lease term</p><p>The aggregate amount of depreciation and amortisation allocated for each class of asset during the reporting period is disclosed in Note 4c.</p><p>Impairment All assets were assessed for impairment at 30 June 2007. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Commission were deprived of the asset, its value in use is taken to be its depreciated replacement cost. 1.19 Intangibles Intangibles, incorporating intellectual property and internally developed software for internal use, have been included in these statements where the value of the asset exceeds $10,000. Intangibles are depreciated over their useful lives, to a maximum of 10 years. All intangibles are shown at cost. Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Commission’s software is between 2 to 10 years (2005-06: 2 to 10 years). All intangible assets were assessed for impairment as at 30 June 2007. None were found to be impaired. 1.20 Inventories The Commission has adopted AASB 102 from 1 July 2006 rather than 1 July 2007. This has no impact on the Commission’s carrying amount of inventory. Inventories held for distribution are valued at cost adjusted when applicable for any loss in service potential. 1.21 Taxation The Commission is exempt from all forms of taxation except fringe benefits tax and the goods and services tax (GST). Income, expense, assets and liabilities are recognised net of GST: except where the amount of GST incurred is not recoverable from the Australian Taxation Office and except for receivables and payables. 1.22 Administered activities The Commission does not have any administered activities. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 2: Events occurring after reporting date No matter or occurrence has come to the Commission’s attention which would materially affect the accounts or disclosures therein or which are likely to materially affect the future results or operation of the Commission. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 3. Income 2007 2006</p><p>$’000 $’000 Revenue 3a Revenue from Government</p><p>Appropriations for outputs 20,591 18,073</p><p>Total revenue from Government 20,591 18,073</p><p>3b Sale of goods and rendering services Sale of goods:</p><p>Provision of goods to related entities 167 120</p><p>Provision of goods to external entities 11 25</p><p>Total sale of goods 178 145</p><p>Rendering of services:</p><p>Rendering of services to related entities 17,790 18,855</p><p>Rendering of services to external entities 1,135 1,061</p><p>Total rendering of services 18,925 19,916</p><p>Total sale of goods and rendering of services 19,103 20,061</p><p>Gains 3c Sale of assets Infrastructure, plant and equipment:</p><p>Proceeds from disposal 101 6</p><p>Carrying value of assets sold (86) (4)</p><p>Net gain / (loss) from sale of infrastructure, plant and equipment 15 2</p><p>Buildings:</p><p>Proceeds from disposal 15 - Carrying value of assets sold - -</p><p>Net gain / (loss) from sale of buildings 15 -</p><p>Net gain / (loss) from sale of assets 30 2</p><p>3d Resources received free of charge</p><p>Resources received free of charge 39 39 Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 4. Expense 2007 2006</p><p>$’000 $’000 4a Employee benefits</p><p>Wages and salaries 14,354 12,692</p><p>Superannuation 2,669 2,255</p><p>Leave and other entitlements 2,089 1,318</p><p>Separation and redundancies 25 420</p><p>Other employee expenses 271 318</p><p>Total employee benefits 19,408 17,003</p><p>4b Supplier expense</p><p>Provision of goods from related entities 6 11</p><p>Provision of goods from external entities 1,207 1,003</p><p>Rendering of services from related entities 1,124 743</p><p>Rendering of services from external entities 12,031 14,753</p><p>Operating lease rentals1 2,150 2,249</p><p>Worker compensation premiums 168 133</p><p>Total supplier expense 16,686 18,892</p><p>4c Depreciation and amortisation Depreciation:</p><p>Buildings 344 329</p><p>Infrastructure, plant and equipment 255 182</p><p>Total depreciation 599 511</p><p>Amortisation:</p><p>Computer software 45 41 2007 2006</p><p>$’000 $’000</p><p>Intellectual property 253 231</p><p>Assets held under finance lease 381 311</p><p>Total amortisation 679 583</p><p>Total depreciation and amortisation 1,278 1,094</p><p>4d Finance costs</p><p>Finance leases 34 35</p><p>Unwinding of discount on make good provision 13 15</p><p>Total finance costs expense 47 50</p><p>4e Write-down of assets Impairment of financial assets</p><p>Bad and doubtful debts - 2</p><p>Non-financial assets</p><p>Infrastructure, plant and equipment – write-off on disposal - -</p><p>Total write-down of assets - 2</p><p>1 These comprise minimum lease payments only. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 5. Financial assets 2007 2006</p><p>$’000 $’000 5a Cash</p><p>Cash at bank 553 432</p><p>Cash on hand 6 7</p><p>Total cash 559 439</p><p>5b Trade and other receivables</p><p>Goods and services 3,555 4,511</p><p>Less: Provision for doubtful debts (1) (1)</p><p>3,554 4,510</p><p>GST receivable from the Australian Taxation Office 189 64</p><p>Appropriations receivable 9,400 8,100</p><p>Total trade and other receivables (net) 13,143 12,674</p><p>All receivables are current assets.</p><p>Goods and services receivables (gross) are aged as follows:</p><p>Not overdue 2,904 4,028</p><p>Overdue by: </p><p> less than 30 days 445 427</p><p>30 and 60 days 80 21</p><p>60 and 90 days 19 13</p><p> more than 90 days 107 22</p><p>608 483</p><p>Total goods and services receivables (gross) 3,555 4,511 2007 2006</p><p>$’000 $’000</p><p>The provision for doubtful debts is aged as follows: </p><p>Overdue by: </p><p> more than 90 days (1) (1)</p><p>Total provision for doubtful debts (1) (1) Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 6. Non-financial assets 2007 2006</p><p>$’000 $’000 6a Land and buildings Leasehold improvements: </p><p>At fair value 3,483 1,495</p><p>Accumulated depreciation (404) (667)</p><p>Total leasehold improvements 3,079 828</p><p>Total Land and buildings (non-current) 3,079 828</p><p>6b Infrastructure, plant and equipment</p><p>At fair value 3,428 1,584</p><p>Accumulated depreciation (1,281) (850)</p><p>Total infrastructure, plant and equipment (non-current) 2,147 734</p><p>All revaluations are conducted in accordance with the revaluation policy stated at Note 1. Upon the adoption of the Australian equivalents to International Financial Reporting Standards (AEIFRS), land and buildings, infrastructure, plant and equipment were formally valued at fair value by the Australian Valuation Office as at 30 June 2004. All assets acquired since 1 July 2004 are at cost, which is materially reflective of their fair value. 6c Intangibles Software – purchased:</p><p>In use 61 52</p><p>Accumulated amortisation (46) (36)</p><p>Total software – purchased 15 16</p><p>Software – internally developed:</p><p>In use 331 126</p><p>In progress 213 -</p><p>Accumulated amortisation (73) (40) 2007 2006</p><p>$’000 $’000</p><p>Total software – internally developed 471 86</p><p>Intellectual property:</p><p>In use 1,084 942</p><p>In progress 25 13</p><p>Accumulated amortisation (662) (409)</p><p>Total Intellectual property 447 546</p><p>Total intangibles (non-current) 933 648</p><p>All intangible assets are measured at cost. 6d Analysis of property, plant, equipment and intangibles Table A – Reconciliation of the opening and closing balances of property, plant and equipment and intangibles (2006-07) Computer Buildings Computer Total Tot Other software Intellectual leasehold software intangible al Item IP&E internally property improvements purchased s $’0 $’000 developed $’000 $’000 $’000 $’000 00 $’000 As at 1 July 2006 </p><p>Gross book 1,495 1,584 52 126 955 1,133 4,2 value 12</p><p>Accumulated (667) (850) (36) (40) (409) (485) (2,0 depreciation 02) / amortisation</p><p>Net book 828 734 16 86 546 648 2,2 value 10</p><p>Additions</p><p>By purchase 2,595 1,750 11 418 154 583 4,9 28</p><p>By finance - 385 - - - - 385 lease</p><p>Net ------revaluation increment / (decrement) Table A – Reconciliation of the opening and closing balances of property, plant and equipment and intangibles (2006-07) Computer Buildings Computer Total Tot Other software Intellectual leasehold software intangible al Item IP&E internally property improvements purchased s $’0 $’000 developed $’000 $’000 $’000 $’000 00 $’000 Depreciation (344) (636) (12) (33) (253) (298) (1,2 / amortisation expense 78) Disposals</p><p>By finance - (30) - - - - (30) lease</p><p>Other - (56) - - - - (56) disposals</p><p>As at 30 June 2007 </p><p>Gross book 3,483 3,428 61 544 1,109 1,714 8,6 value 25</p><p>Accumulated (404) (1,281 (46) (73) (662) (781) (2,4 depreciation ) 66) / amortisation</p><p>Net book 3,079 2,147 15 471 447 933 6,1 value 59</p><p>Table B – Reconciliation of the opening and closing balances of property, plant and equipment and intangibles (2005-06) Computer Buildings Othe Computer software Intellectua Total leasehold r software Total Item internally l property intangibles improvements IP&E purchased $’000 developed $’000 $’000 $’000 $’000 $’000 $’000 As at 1 July 2005 </p><p>Gross book 1,317 1,486 39 106 693 838 3,64 value 1</p><p>Accumulated (338) (442) (19) (19) (178) (216) (996) depreciation / amortisation</p><p>Net book 979 1,044 20 87 515 622 2,64 value 5</p><p>Additions </p><p>Table B – Reconciliation of the opening and closing balances of property, plant and equipment and intangibles (2005-06) Computer Buildings Othe Computer software Intellectua Total leasehold r software Total Item internally l property intangibles improvements IP&E purchased $’000 developed $’000 $’000 $’000 $’000 $’000 $’000</p><p>By purchase 178 71 13 23 262 298 547</p><p>By finance - 116 - - - - 116 lease</p><p>Net ------revaluation increment / (decrement) Depreciation (329) (493) (17) (24) (231) (272) (1,09 / amortisation expense 4) Disposals </p><p>By finance - (3) - - - - (3) lease</p><p>Other - (1) - - - - (1) disposals</p><p>As at 30 June 2006</p><p>Gross book 1,495 1,584 52 126 955 1,133 4,21 value 2</p><p>Accumulated (667) (850) (36) (40) (409) (485) (2,00 depreciation 2) / amortisation</p><p>Net book 828 734 16 86 546 648 2,21 value 0</p><p>2007 2006</p><p>$’000 $’000 6e Inventories</p><p>Inventories held for distribution 206 110</p><p>Total inventories 206 110</p><p>All inventories are current assets. 2007 2006</p><p>$’000 $’000 6f Prepayments paid</p><p>Prepayments paid 567 364</p><p>All prepayments paid are current assets. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 7. Payables 2007 2006</p><p>$’000 $’000 7a Suppliers</p><p>Trade creditors 3,877 3,937</p><p>Operating lease rental 127 -</p><p>Total suppliers 4,004 3,937</p><p>7b Prepayments received</p><p>Prepayments received 2,930 2,151</p><p>7c Other payables</p><p>Other 43 37</p><p>Total other payables 43 37</p><p>All payables are current liabilities. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 8. Interest bearing liabilities 2007 2006</p><p>$’000 $’000 8a Leases Finance lease commitments</p><p>Payable: </p><p>Within one year </p><p>Minimum lease payments 217 320</p><p>Deduct: future finance charges (16) (17)</p><p>201 303</p><p>In one to five years </p><p>Minimum lease payments 195 121</p><p>Deduct: future finance charges (10) (3)</p><p>185 118</p><p>Finance lease recognised in balance sheet 386 421</p><p>A finance lease exists in relation to the majority of information technology equipment in the Commission. The lease is non-cancellable and was for an initial fixed term of 5 years which has been extended for a further 4 years. The Commission guarantees the residual values of all assets leased. There are no contingent rentals. 8b Lease incentives </p><p>Current 126 38</p><p>Non-current 1,295 68</p><p>Total lease incentives 1,421 106 Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 9. Provisions 2007 2006</p><p>$’000 $’000 9a Employee provisions</p><p>Salaries and wages 271 294</p><p>Leave 4,583 4,423</p><p>Superannuation 483 432</p><p>Total employee provisions 5,337 5,149</p><p>Current 4,910 4,845</p><p>Non-current 427 304</p><p>Total employee provisions 5,337 5,149</p><p>9b Provision for make good</p><p>Balance owing 1 July 494 469</p><p>Unwinding of discount arising from the passage of time 13 15</p><p>Make good provided for during the period 80 20</p><p>Make good settled during the period (420) (10)</p><p>Balance owing 30 June 167 494</p><p>Current 78 350</p><p>Non-current 89 144</p><p>Total provision for make good 167 494 Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 10. Restructuring There were no restructurings in 2006-07 (2005-06 nil). Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 11. Cash flow reconciliation 2007 2006</p><p>$’000 $’000 Reconciliation of cash per Balance Sheet to Cash Flow Statement: </p><p>Balance per Cash Flow Statement 559 439</p><p>Balance per balance Sheet 559 439</p><p>Reconciliation of surplus / (deficit) to net cash from operating activities:</p><p>Surplus / (deficit) 2,344 1,134</p><p>Depreciation and amortisation 1,278 1,094</p><p>Sale of assets (30) (2)</p><p>Employees expense capitalised - (16)</p><p>Lease incentive (1,384) -</p><p>(Increase) / decrease in net receivables (469) (4,191)</p><p>(Increase) / decrease in other financial assets - 20</p><p>(Increase) / decrease in inventories (96) (51)</p><p>(Increase) / decrease in prepayments paid (203) (19)</p><p>Increase / (decrease) in supplier payables (387) 1,940</p><p>Increase / (decrease) in prepayments received 779 442</p><p>Increase / (decrease) in other payables 6 (1)</p><p>Increase / (decrease) in interest bearing liabilities 927 (362)</p><p>Increase / (decrease) in employee provisions 188 37</p><p>Increase / (decrease) in provision for make good (327) 25</p><p>Net cash from / (used by) operating activities 2,626 50</p><p>During 2006-07 the Commission acquired $385,000 and disposed of $30,000 of plant and equipment by 2007 2006</p><p>$’000 $’000 finance lease (2005-06: acquired $116,000 and disposed of $3,000). These transactions are not reflected in the Cash Flow Statement. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 12. Executive remuneration 2007 2006 The number of executives who received or were due to receive total remuneration of $130,000 or more:</p><p>$130,000 to $144,999 - 1</p><p>$145,000 to $159,999 1 1</p><p>$160,000 to $174,999 3 -</p><p>$175,000 to $189,999 2 1</p><p>$190,000 to $204,999 - 1</p><p>$205,000 to $219,999 - -</p><p>$220,000 to $234,999 1 1</p><p>$280,000 to $294,999 - 1</p><p>$310,000 to $324,999 1 -</p><p>$370,000 to $384,999 - 1</p><p>$400,000 to $414,999 - 1</p><p>$460,000 to $474,999 1 -</p><p>The aggregate amount of total remuneration of executives shown $2,062,722 $1,966,279 above.</p><p>The aggregate amount of separation and redundancy / termination Nil $197,492 payments during the year to executives shown above. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 13. Remuneration of auditors 2007 2006</p><p>$ $</p><p>Financial statement audit services are provided free of charge to the 39,00 39,000 Commission. 0 The fair value of the services provided was: </p><p>No other services were provided by the Auditor-General. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 14. Average staffing levels 2007 2006</p><p>The average staffing levels for the Commission during the year were: 201.1 182.7 Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 15. Financial instruments 15a Interest rate risk Fixed interest Floating Weighted rate Non interest interest Total average maturing bearing Financial Note rate $’000 effective in 1 year $’000 instrument s $’000 interest rate or less $’000 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 Financial assets 5a Cash - - - - 559 439 559 439 n/a n/a</p><p>5b Goods and - - - - 3,554 4,510 3,554 4,510 n/a n/a services receivable (net)</p><p>Total - - - - 4,113 4,949 4,113 4,949 </p><p>Total assets 20,63 15,79 4 7</p><p>Financial liabilities 7a Suppliers - - - - 4,004 3,937 4,004 3,937 n/a n/a</p><p>7b Prepayments - - - - 2,930 2,151 2,930 2,151 n/a n/a received</p><p>7c Other - - - - 43 37 43 37 n/a n/a payables</p><p>8a Finance 386 421 - - - - 386 421 6.05% 6.05% lease</p><p>8b Lease - - - - 1,421 106 1,421 106 n/a n/a incentives</p><p>Total 386 421 - - 8,398 6,231 8,784 6,652 </p><p>Total 14,28 12,29 liabilities 8 5 15b Net Fair Values of Financial Assets and Liabilities 2007 2006 Total Total Note Aggregate net Aggregate net carrying carrying s fair value fair value amount amount $’000 $’000 $’000 $’000 Financial assets 5a Cash 559 559 439 439</p><p>5b Goods and services 3,554 3,554 4,510 4,510 receivable (net)</p><p>Total financial 4,113 4,113 4,949 4,949 assets</p><p>Financial liabilities 7a Payables 4,004 4,004 3,937 3,937</p><p>7b Prepayments 2,930 2,930 2,151 2,151 received</p><p>7c Other payables 43 43 37 37</p><p>8a Finance lease 386 384 421 421</p><p>8b Lease incentives 1,421 1,363 106 105</p><p>Total financial 8,784 8,724 6,652 6,651 liabilities</p><p>Financial liabilities The net fair values of finance lease and lease incentive liabilities are based on discounted cash flows using current interest rates for liabilities with similar risk profiles.</p><p>15c Credit risk exposures The Commission’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet. The Commission has no significant exposures to any concentrations of credit risk. All figures for credit risk referred to do not take into account the value of any collateral or other security. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 16. Appropriations 16a Acquittal of authority to draw cash from the Consolidated Revenue Fund (CRF) for and for other than ordinary annual services appropriations Departmental outputs 2007 2006 $ $ Balance carried from previous year 8,539,353 6,663,825</p><p>Appropriation Act (No.1) 20,591,000 16,873,000</p><p>Appropriation Act (No.3) - 1,200,000</p><p>Refunds credited (FMA s 30) 127,107 65,899</p><p>Sub-total annual appropriation 20,718,107 18,138,899</p><p>Appropriation Act (No.2) 500,000 -</p><p>Appropriations to take account of recoverable GST (FMA 2,165,490 1,703,834 s30A)</p><p>Annotations to ‘net appropriations’ (FMA s 31) 23,452,486 20,253,298</p><p>Total appropriations available for payments 55,375,436 46,759,856</p><p>Cash payments made during the year (GST inclusive) (45,416,889) (38,220,503)</p><p>Balance of authority to draw cash from the CRF for 9,958,547 8,539,353 ordinary annual services appropriations Represented by:</p><p>Cash 558,547 439,353</p><p>Appropriations receivable 9,400,000 8,100,000</p><p>Total 9,958,547 8,539,353</p><p>FMA = Financial Management and Accountability Act 1997 Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 17. Special accounts Other Trust Monies Special Account (Departmental) Legal Authority: Financial Management and Accountability Act, 1997, s20. Purpose: Expenditure of monies temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth. 2007 2006</p><p>$ $</p><p>Balance carried from previous year - -</p><p>Other receipts - Comcare compensation receipts 14,158 19,708</p><p>Available for payments 14,158 19,708</p><p>Payments made - reimbursement to Departmental outputs (14,158) (19,708)</p><p>Balance carried to next year - -</p><p>Represented by: </p><p>Cash - -</p><p>Total - -</p><p>Services for Other Government and Non Agency Bodies Special Account (Departmental) Legal Authority: Financial Management and Accountability Act, 1997, s20. Purpose: Expenditure in connection with services performed on behalf of other Governments and bodies that are not FMA Agencies. For the years ended 30 June 2001-2007 the account had nil balances and there were no transactions debited or credited to it. Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 18. Compensation and debt relief No ‘Act of Grace’ expense was incurred during the reporting period (2006: nil). No waivers of amounts due to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2006: nil). No expense was incurred under the ‘Defective Administration Scheme’ during the reporting period (2006: nil). No ex-gratia expense was incurred during the reporting period (2006: nil). No expense were incurred under s73 of the Public Service Act 1999 during the reporting period (2006: $1,500). Australian Public Service Commission notes to and forming part of the financial statements for the year ended 30 June 2007 Note 19. Reporting of outcomes 19a Net Cost of Outcome Delivery Outcome 1 2007 2006 $’000 $’000 Total expense 37,419 37,041</p><p>Costs recovered from provision of goods and services to the non-government sector</p><p>Total costs recovered 1,146 1,086</p><p>Other external income</p><p>Gains from sale of assets 30 2</p><p>Resources received free of charge 39 39</p><p>Goods and services revenue from related entities 17,957 18,975</p><p>Total other external income 18,026 19,016</p><p>Net cost / (contribution) of outcome 18,247 16,939</p><p>Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget outcome. 19b Major classes of Departmental income and expense by output groups and outputs Table A – Output group 1 Output group 1 Output 1.1 Output 1.2 Output 1.3 Output 1.4 Group total </p><p>2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Expenses</p><p>Employee benefits 1,812 1,667 3,30 2,582 1,50 1,170 2,393 2,35 9,011 7,771 4 2 2 </p><p>Suppliers and 629 692 1,59 1,414 930 684 886 1,03 4,043 3,823 finance costs 8 3 </p><p>Depreciation and 84 70 220 181 52 38 134 136 490 425 amortisation</p><p>Total expenses 2,525 2,429 5,12 4,177 2,48 1,892 3,413 3,52 13,54 12,019 Table A – Output group 1 Output group 1 Output 1.1 Output 1.2 Output 1.3 Output 1.4 Group total </p><p>2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000</p><p>2 4 1 4</p><p>Funded by:</p><p>Revenues from 2,391 2,608 2,05 1,482 722 654 2,918 3,04 8,090 7,790 government 9 6 </p><p>Sale of goods and 23 30 4,37 3,667 1,73 1,250 12 44 6,143 4,991 services and gains 1 7</p><p>Total income 2,414 2,638 6,43 5,149 2,45 1,904 2,930 3,09 14,23 12,781 0 9 0 3</p><p>Table B – Output Group 2 Output group 2 Output 2.1 Output 2.2 Output 2.3 Group total </p><p>2007 2006 2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Expense</p><p>Employee benefits 1,632 1,27 3,303 3,500 424 355 5,359 5,133 8</p><p>Suppliers and finance costs 3,294 2,34 3,428 8,131 1,591 1,45 8,313 11,927 1 5</p><p>Depreciation and amortisation 261 183 266 223 13 77 540 483</p><p>Total expense 5,187 3,80 6,997 11,85 2,028 1,88 14,21 17,543 2 4 7 2</p><p>Funded by:</p><p>Revenues from government 1,127 1,16 2,205 2,231 501 315 3,833 3,709 3</p><p>Sale of goods and services and 3,919 2,26 6,012 10,14 1,966 1,65 11,89 14,067 gains 9 2 6 7</p><p>Total income 5,046 3,43 8,217 12,37 2,467 1,97 15,73 17,776 2 3 1 0 Table C – Output group 3 and Outcome 1 total Outcom Output group 3 e 1 Output 3.1 Output 3.2 Output 3.3 Output 3.4 Group Total total 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 0 Expense</p><p>Employee 1,680 1,359 1,33 918 875 755 1,153 1,06 5,038 4,09 19,408 1 benefits 0 7 9</p><p>Suppliers 2,255 1,430 926 799 403 411 793 554 4,377 3,19 16,733 1 and finance 4 costs</p><p>Depreciatio 86 58 69 47 39 32 54 49 248 186 1,278 1 n and amortisation</p><p>Total 4,021 2,847 2,32 1,764 1,31 1,198 2,000 1,67 9,663 7,47 37,419 3 expense 5 7 0 9</p><p>Funded by:</p><p>Revenues 4,165 2,240 1,42 1,535 1,24 1,177 1,842 1,62 8,668 6,57 20,591 1 from 1 0 2 4 government</p><p>Sale of 329 366 561 578 6 16 236 84 1,132 1,04 19,172 2 goods and 4 services and gains</p><p>Total 4,494 2,606 1,98 2,113 1,24 1,193 2,078 1,70 9,800 7,61 39,763 3 income 2 6 6 8</p><p>Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget outcome. Refer to Resources for the Outcome Table in Appendix A of this Annual Report. The Commission derives its Output income and expense amounts via a two-step allocation process. Firstly amounts for direct output components are identified and attributed to outputs. Secondly the whole of Commission components, including property and office services, staff on-costs, information technology and communications, payroll processing and equipment maintenance, is distributed to the Outputs on a per capita basis. Appendix C Report on performance under the Commonwealth Disability Strategy The Commission is reporting against the Commonwealth Disability Strategy in its employer role. </p><p>Performance indicator Performance measure Outcomes </p><p>Employment policies, All employment policies, All Commission employment procedures and practices procedures and practices policies, procedures and comply with the reviewed during the life of practices comply with the requirements of the this plan comply with the requirements of the Disability Disability Discrimination requirements of the Discrimination Act 1992. The Act 1992. Disability Discrimination Act Commission carefully considers Review all employment 1992 and promote equity the impact of its employment policies as they come up and diversity issues. policies during development. for review. Group business plans Promote equity and consider issues concerning diversity issues, including people with a disability. disability issues in HR/WR policies and plans. Ensure, where relevant, that group business plans consider issues concerning people with a disability. </p><p>Recruitment information for Recruitment information 100% of requests to provide potential job applicants requested and provided in: information this way were met. with disabilities is available All recruitment documentation accessible electronic in accessible formats or on is available both in hard copy formats and request. and on the internet. accessible formats Review recruitment The Commission provides other than information and consider electronic. advice to staff and external providing internet access providers undertaking for all recruitment selection Average time taken to recruitment about reasonable documentation. provide accessible adjustment as required. information in: Consult with the Office of Disability Policy (FACS) accessible electronic and others to ensure that formats and recruitment information is accessible formats other provided in suitable than electronic. formats including, but not limited to, formats such as TTY and electronic.</p><p>Agency recruiters and Percentage of staff in the The Commission maintained managers apply the Commission who identify as the level of staff identifying that principle of ‘reasonable having a disability. they have a disability above 8% adjustment’. of total staff. Actively seek opportunities to engage people with a disability for employment (including non-ongoing employment, work placement and trial employment). Include positive statements about ‘reasonable adjustment’ in recruitment literature.</p><p>Promote an awareness of Staff survey reflects that The 2007 staff survey did not disability and disability staff believe there is no identify any specific instances discrimination issues in the discrimination in the of disability discrimination workplace. Commission. within the Commission and no Disability awareness incidences were reported in sessions available for all 2006–07. Commission staff. Use of intranet to provide information and links to information on disability issues (including preventative OH&S issues such as OOS). Actively promote and support an annual day focusing on disability issues.</p><p>External training and Percentage of training and All training and development development programmes development programmes programmes consider the consider the needs of staff that consider the needs of needs of staff with disabilities. with disabilities and include staff with disabilities and The Commission uses information on disability include information on consultants to provide issues as they relate to the disability issues as they corporate training and content of the program. relate to the program. development and the contract Consultants required to requires: provide for the needs of compliance with the people with a disability as Disability part of the contract. Discrimination Act 1992 provision of services consistent with the APS Values and Code of Conduct compliance with the principles of workplace diversity consultation with the Commission in relation to any special needs for people with disabilities. These measures ensure that all programmes include information on disability issues where appropriate and relevant to the programme. Complaints/grievance Staff are aware of the The Commission’s Collective mechanism, including existence of the Agreement provides for internal access to external mechanisms and know how review of employment actions. mechanisms, in place to to access them. The Agreement also directs address issues and employees who have not concerns raised by staff. resolved their complaint through such a process to the more formal processes provided under the public service employment framework.</p><p>Commission premises and Audit of Commission The Commission moved to new facilities are accessible and premises and facilities accommodation in February useable by people with a indicates that they are 2007. Disability, ergonomic and disability. accessible and useable by occupational health and safety people with a disability. issues were considered in the design and fit out of the building.</p><p>Actively promote and Percentage of staff in the The Census was again provide suitable Commission that identify as conducted in June 2007. opportunities for people having a disability. The Commission maintained with a disability to identify the level of staff identifying that their disability including an they have a disability above 8% annual census of staff. of total staff Appendix D Occupational Health and Safety The Occupational Health and Safety Agreement between the Commission and the Community and Public Sector Union (CPSU) runs until December 2007. The agreement commits the Commission to ongoing prevention of workplace injury and exposure to hazards in the work environment. The Occupation Health and Safety Committee established under the Occupational Health and Safety (Commonwealth Employees) Act 1991 (OH&S Act), administers the agreement. Important changes to the Commonwealth OH&S Act came into effect on 15 March 2007 that alter the way the Commission will manage its OH&S responsibilities. Employees now have the right to participate directly in OH&S consultative arrangements, including the development of Health and Safety Management Arrangements (HSMAs), nominating and selecting Health and Safety Representatives (HSRs), varying Designated Work Groups (DWGs), setting up Health and Safety Committees (HSC’s) and requesting investigations. Given the recent legislative changes, HSMAs have now replaced previous requirements for an OH&S policy and agreement. HSMAs are currently being developed in consultation with all staff. Staff health and wellbeing was promoted by the Commission in 2006–07 through the provision of influenza vaccinations, health week (as mentioned in—part three Management and Accountability) the inclusion of enhanced OH&S information in the Commission’s staff induction programme, ongoing OH&S training for staff and management and workstation assessments for all new employees. In addition, as part of the relocation to Woden, the Commission arranged for a hazard inspection of the old building prior to the move and a full inspection of the new building once the relocation was complete. Workstation assessments were provided for all staff and walkthroughs were undertaken to assist employees to set up their new work areas. Through ongoing OH&S education across all staff, the Commission has noted an increase in the number of incident reports submitted which allows for appropriate early intervention. Such early management of reported injuries and incidences has assisted in keeping the Commission’s claim numbers low. During the year, there were no incidences that required giving of notice under section 68 of the OH&S Act. No directions were given to the Commission under section 45 and no notices were given under sections 29, 46 or 47. No investigations were conducted during the year. Appendix E Freedom of information This statement is published in accordance with the requirements of section 8 of the Freedom of Information Act 1982 (the FOI Act). The Public Service Commissioner and the Merit Protection Public Service Commissioner are prescribed authorities for the purposes of the FOI Act. This statement meets the requirements of the FOI Act in relation to both. 1) Organisation, functions and powers (s.8(1)(a)(i)) Public Service Commissioner The functions of the Public Service Commissioner and the organisation of the Commission are described in this Annual Report in the Commission Overview. The principal powers exercised by the Public Service Commissioner as they affect members of the public are those relating to the issuing of Commissioner’s Directions under the Public Service Act 1999 (the Act) in relation to each of the APS Values specified in that Act. The Commissioner’s Directions ensure that the APS incorporates and upholds the APS Values and they determine where necessary the scope or application of the APS Values. Several of the APS Values relate to the recruitment of staff to the APS. The Commissioner’s Directions provide binding provisions relating to the framework within which people are recruited to the APS, the basic elements of which include: merit-based employment decisions, including transparent and fair selection processes absence of discrimination and recognition of the diversity of the Australian community promotion of equity in employment provision of reasonable opportunity to all eligible members of the Australian community to apply for APS employment. Another of the APS Values relates to the delivery of services to the Australian public. The Public Service Commissioner has issued Directions which specify that an agency head must put in place measures directed at upholding this APS Value, including in relation to the provision to the public of information about rights and entitlements and taking into account client diversity and the right to privacy. Regional offices assist in the provision of advice and services to agencies Australia-wide, including delivery of a range of employment-related activities on a fee-for-service basis. Merit Protection Commissioner The organisation of the office of the Merit Protection Commissioner is described in the body of the Merit Protection Commissioner's Annual Report, which is included with the Public Service Commissioner's Annual Report. The full range of the Merit Protection Commissioner's functions under the Act, which relate generally to reviewing actions affecting individual APS employees in relation to their employment, are also described in the Merit Protection Commissioner's Annual Report. In addition, the Merit Protection Commissioner may exercise powers of the former Merit Protection and Review Agency (MPRA) which was abolished from 5 December 1999 with the introduction of the Act, under the transitional provisions which apply to former MPRA casework. The principal powers exercised by the Merit Protection Commissioner that may affect members of the public relate to some review functions, the recommendations of Independent Selection Advisory Committees (ISACs) and some other employment-related functions. The Merit Protection Commissioner may investigate complaints by former employees that relate to an employee’s entitlements on separation from the APS. ISACs assess the suitability of candidates for engagement, promotion or assignment of duties for employment opportunities in the APS. The wide range of employment-related functions which the Merit Protection Commissioner may also perform for other bodies, if requested by the body to do so and not already required to provide such services by a law of the Commonwealth, includes functions performed for State and Territory departments and authorities, local government bodies, private corporations and bodies and for Commonwealth authorities whose employees are not engaged under the Act. 2) Arrangements for external bodies to participate in policy formulation or administration (s.8(1)(a)(ii)) Public Sector Management (PSM) Programme Board of Management The Public Service Commissioner is represented on the PSM Program Board of Management, whose other members include representatives of State and Territory public services. The Board sets the direction for and oversees the delivery of a management and leadership development course for managers at middle and senior levels throughout the Australian public sector. The PSM Programme is a national strategy to deliver relevant, practically focused training that reflects the changing expectations of the public sector. The Program is formally accredited at Graduate Certificate level through Griffith University, Macquarie University, Royal Melbourne Institute of Technology and Curtin University. Government Skills Australia (GSA) Public Sector Industry Advisory Committee The Public Service Commissioner represents the Commonwealth on the GSA Public Sector Industry Advisory Committee. The committee also comprises representatives from the States and Territories and two union representatives. The committee is chaired by the South Australian Deputy Commissioner for Public Employment. The focus of GSA is providing high quality training resources and services to support the recognition of skills and professionalism in government administration, services and operations. 3) Categories of documents maintained (s.8(1)(a)(iii)) Public Service Commissioner Documents maintained by the Public Service Commissioner include those relating to: internal management APS Employment Database development programmes employment framework employment related fee-for-service activities individual cases leadership issues legal advisings machinery of government and administrative arrangements networks established and or managed by the Commission outsourcing of activities performance management personnel practices recruitment, selection, promotion and staffing review of the Act redeployment, retrenchment and retirement of staff seminar events and related evaluations senior executive staffing submissions to inquiries surveys, studies, reviews and evaluations values and conduct policy whistleblowing workplace diversity, including equal employment opportunity and harassment issues. Merit Protection Commissioner Documents maintained by the Merit Protection Commissioner include: information brochures about the range of functions of the Merit Protection Commissioner, Independent Selection Advisory Committees (ISACs), Promotion Review Committees (PRCs) and review of actions Merit Protection Commissioner's Instructions on procedures for ISACs, PRCs and for the review of actions documents relating to the Merit Protection Commissioner’s decision making processes, day-to-day administration and policy matters individual case files files relating to fee-for-service activities including records of processes submissions to inquiries. Documents maintained in relation to the powers of the former MPRA exercised by the Merit Protection Commissioner include: decisions of Disciplinary Appeal Committees individual grievance case files. The pre-July 1987 records of the former Public Service Board are now held by the Australian Archives. General The majority of documents are held in hard copy form, either on records management files or as individual written or printed items. Other documents are held as computer-stored data, microfiche, charts, plans, films, videotapes, audiotapes or card indexes. Consistent with Australian Archives disposal schedules, both policy and case-work document files are maintained. They are registered either by subject matter or by name. The Records Management Unit maintains a list of indexed headings covering subjects. Documents available to the public in accordance with arrangements made by the Public Service Commissioner and the Merit Protection Commissioner include: the Public Service Commissioner's Annual Report (incorporating the Merit Protection Commissioner’s Annual Report) the State of the Service series of reports: o State of the Service Report (including the Workplace Diversity Report) o Australian Public Service Statistical Bulletin guidelines on a variety of matters. Most publications are available free of charge. Details of all publications are available on the Commission’s website. 4) Facilities for Access (s.8(1)(a)(iv)) In relation to both the Public Service Commissioner and the Merit Protection Commissioner, facilities for accessing publications or other documents available outside the scope of the FOI Act are provided via the Public Service Commissioner's Internet site (which incorporates the Merit Protection Commissioner site). In the event that documents cannot be located on this site further inquiries about access should be directed to the Employment Policy Adviceline at: [email protected] Where a decision has been made to give access to documents under the FOI Act they will generally be copied to applicants. Where copies are not made available, documents may be inspected at the Commission premises at: 16 Furzer Street Phillip ACT; or at Regional Offices. (5) Freedom of Information Procedures and Initial Contact Point (s.8(1)(a)(v)) Written requests for access to documents in the possession of the Public Service Commissioner or the Merit Protection Commissioner should be accompanied by a $30 application fee and directed to: Freedom of Information Co-ordinator Australian Public Service Commission 16 Furzer Street PHILLIP ACT 2606 There is no proforma application document. Inquiries about access to documents may be directed to the Freedom of Information Co-ordinator at the above address or by telephoning (02) 6202 3570 between the hours of 9.00am and 5.00pm Monday to Friday. In some instances the Public Service Commissioner may need to consult with persons who have lodged requests. Applicants may be contacted where there is a need: to assist an applicant to more specifically identify documents to which access is sought to give an applicant a reasonable opportunity for consultation before denying access on the grounds of insufficient information (subsection 15(3)) or if the request requires a substantial or unreasonable diversion of resources (subsection 24(1)) for notification of charges and deposit, if necessary, including discussion of charges remission. 6) Operation of the Freedom of Information Act In relation to both the Public Service Commissioner and the Merit Protection Commissioner there were three valid requests for access received during 2006–2007. No requests were outstanding at the end of the period. During the year 0.4 staff years were spent on matters associated with the administration of the FOI Act. A total of $60 was collected in relation to the requests received under the FOI Act. Appendix F Advertising and market research A total of $320,920 was paid to media advertising organisations during 2006–07. This increase of 34 per cent over the previous year was largely due to: increased activities to promote employment in the APS, including an advertising campaign for Public Calling: Indigenous Career Ambassadors, wide ranging advertising of our Indigenous entry level, graduate and cadet pathways programmes, as well more general advertising of careers in the APS the promotion of the Drawing Together art competition advertising of bulk selection processes in the Commission In addition, advertising was undertaken to promote development programmes, advertise tenders or for general recruitment. No market research activities assessing the attitudes of the public were undertaken and the Commission did not employ the services of polling or direct mail organisation during 2006–07. To support its preparation of the State of Service Report, a range of processes were undertaken by the Commission to assess the attitudes of APS employees. The Commission also undertook a staff survey in 2007 to assess the views of staff on a range of agency-specific issues. Table 31: Details of payments to media advertising organisations greater than $10,300 (GST inclusive) Name of Organisation Purpose Payment ($)</p><p>HMA Blaze Pty Ltd Recruitment advertising 288,453.80</p><p>Nationwide News Pty Ltd Drawing Together advertising 11,000.00</p><p>Total 299,453.80 Appendix G Ecologically sustainable development and environmental performance Section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act) requires Australian Government organisations to include in their annual reports; the organisation’s contribution to Ecologically Sustainable Development (ESD). The Commission does not administer any legislation or have any appropriations directly related to these issues and, accordingly, the Commission’s involvement relates to practices that can improve energy management and environmental practices within the Commission. The Commission has in place an Environmental Management System (EMS), which provides a formal structure to allow the Commission to identify and manage environmental risk. The EMS requires further development to incorporate useful reporting and monitoring tools that can measure improvements against activities. During 2006-07 the Commission continued to be pro-active in the area of energy management and environmental best practice by incorporating: clauses into all new leases entered into by the Commission placing obligation on both parties to endeavour to meet the targets or processes of any environmental and energy management initiatives in place a design objective into all fit out design and construction tender and contract documentation that actively assists the Commission in working towards an environmental sustainable and energy efficient tenancy, wherever possible. In February 2007, the Canberra Office moved into a new building at 16 Furzer Street Phillip. The new building was designed to achieve a 4.5 star Australian Building Greenhouse Rating and a 4.0 Green Star environmental rating. The Commission will continue with its current practical energy saving strategies to address environmental issues, including: sensor lights in offices, meeting rooms, kitchens, storage areas and training suites timer controls on supplementary air-conditioning units water-saving white goods workstations made from recyclable material use of multi functional devices to reduce the number of printers and faxes cardboard, paper and toner recycling range of practical strategies are in place to address environmental management issues. Appendix H Staffing profile and Equal Employment Opportunity Staffing summary and profile as at 30 June 2007 Table 32 shows all staff in the commission as at 30 June 2007. All staff, except the Public Service Commissioner and the Merit Protection Commissioner are employed under the Public Service Act 1999. Table 33 is the corresponding figure from 30 June 2006. Table 32: Ongoing and non-ongoing staff, 30 June 2007 Females Males Total</p><p>Ongoing full time 110 45 155</p><p>Ongoing part time 20 3 23</p><p>Non-Ongoing full time 15 5 20</p><p>Non-Ongoing part time 6 1 7</p><p>Temporary Secondments 0 0 0</p><p>Total 151 54 205 Note: The above table does not include 44 (29 female/15 male) EL1 casual employees providing fee-for service work. These figures include inoperative staff and the Public Service Commissioner who is a statutory office holder (counted as on-going full-time). Table 33: Ongoing and non-ongoing staff, 30 June 2006 Females Males Total</p><p>Ongoing full time 98 50 148</p><p>Ongoing part time 17 2 19</p><p>Non-Ongoing full time 17 4 21</p><p>Non-Ongoing part time 2 4 6</p><p>Temporary Secondments 0 0 0</p><p>Total 134 60 194 Note: The above table does not include casual employees providing fee-for-service work. These figures include staff employed under sections 22(2)a and 22(2)b of the Public Service Act 1999 and unpaid inoperative staff.</p><p>Senior Executive Service information Table 34 shows SES employees by band and gender at 30 June 2007. Table 34 shows the corresponding figures for 30 June 2006. Table 34: Senior Executives, 30 June 2007 Females Males</p><p>Band 1 5 3</p><p>Band 2 0 1</p><p>Band 3 1 0</p><p>Total 6 4 Note: Two male Band 1s and the male Band 2 are based overseas. The above figures do not include the Public Service Commissioner who is a statutory office holder. The Merit Protection Commissioner Statutory Office was substantively vacant at 30 June 2007. Table 35: Senior Executives 30 June 2006 Females Males</p><p>Band 1 6 4</p><p>Band 2 0 0</p><p>Band 3 1 0</p><p>Total 7 4 Note: Two of the four male Band 1 SES employees are part of the ECP Programme in PNG Table 36: Occupational groups by location, 30 June 2007 ACT NSW VIC QLD SA WA Overseas Total F M F M F M F M F M F M F M </p><p>Trainee APS 0 0 2 0 0 0 0 0 0 0 0 0 0 0 2</p><p>Cadet APS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0</p><p>Graduate APS 1 2 0 0 0 0 0 0 0 0 0 0 0 0 3</p><p>APS 1/2 1 3 0 0 0 0 0 0 0 0 0 0 0 0 4</p><p>APS 3/4 25 6 1 0 3 0 1 0 2 0 2 0 0 0 40</p><p>APS 5/6 41 10 1 1 2 0 2 0 1 0 0 0 0 0 58</p><p>EL 1 31 16 3 0 3 2 2 0 1 0 1 1 0 0 60</p><p>EL2 14 6 1 1 1 0 0 1 1 0 1 0 0 1 27</p><p>SES 1 5 1 0 0 0 0 0 0 0 0 0 0 0 2 8</p><p>SES 2 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 Table 36: Occupational groups by location, 30 June 2007 ACT NSW VIC QLD SA WA Overseas Total F M F M F M F M F M F M F M </p><p>SES 3 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1</p><p>SOH 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1</p><p>Sub total 120 44 8 2 9 2 5 1 5 0 4 1 0 4 205</p><p>Total 164 10 11 6 5 5 4 205</p><p>Note: The above table does not include 44 EL1 casual employees providing fee for service work. Overseas employees are located in Papua New Guinea and Indonesia. Includes inoperative staff. Table 37: Occupational groups by location, 30 June 2006 ACT NSW VIC QLD SA WA Overseas Total F M F M F M F M F M F M F M </p><p>Trainee APS 2 0 0 0 0 0 0 0 0 0 0 0 0 0 2</p><p>Cadet APS 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1</p><p>Graduate APS 1 1 0 0 0 0 0 0 0 0 0 0 0 0 2</p><p>APS 1/2 3 2 0 0 0 0 0 0 0 0 0 0 0 0 5</p><p>APS 3/4 17 5 2 1 2 1 1 0 0 0 2 1 0 0 32</p><p>APS 5/6 28 14 1 0 2 0 2 0 1 0 1 0 0 0 49</p><p>EL 1 28 14 2 1 3 2 2 0 2 1 2 1 0 0 58</p><p>EL2 16 8 1 1 3 0 0 1 1 0 1 0 0 0 32</p><p>SES 1 6 1 0 0 0 0 0 0 0 0 0 0 0 3 10</p><p>SES 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0</p><p>SES 3 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1</p><p>SOH 1 1 0 0 0 0 0 0 0 0 0 0 0 0 2</p><p>Sub total 103 47 6 3 10 3 5 1 4 1 6 2 0 3 194</p><p>Total 150 9 13 6 5 8 3 194</p><p>Note: The above table does not include casual employees providing fee for service work. Overseas staff are located in Papua New Guinea and Indonesia. </p><p>Table 38: Representation of Equal Employment and Opportunity (EEO) groups within salary levels, 30 June 2007 Total staff Women ATSI BO BO+ENFL PWD Staff % Staff % Staff % Staff % Staff %</p><p>Trainee APS 2 2 100.0 2 100.0 0 0.0 0 0.0 0 0.0</p><p>Cadet APS 0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0</p><p>Graduate APS 3 1 33.3 1 33.3 0 0.0 0 0.0 0 0.0</p><p>APS 1/2 4 1 25.0 1 25.0 0 0.0 0 0.0 2 50.0</p><p>APS 3/4 40 34 85.0 1 2.5 7 17.5 5 12.5 2 5.0 Table 38: Representation of Equal Employment and Opportunity (EEO) groups within salary levels, 30 June 2007 Total staff Women ATSI BO BO+ENFL PWD Staff % Staff % Staff % Staff % Staff %</p><p>APS 5/6 58 47 81.0 2 3.4 13 22.4 5 8.6 3 5.2</p><p>EL1 60 41 68.3 3 5.0 8 13.3 3 5.0 6 10.0</p><p>EL2 27 18 66.7 0 0.0 6 22.2 2 7.4 4 14.8</p><p>SES + SOH 11 7 63.6 0 0.0 3 27.3 0 0.0 0 0.0</p><p>Total 205 151 73.7 10 4.9 37 18.0 15 7.3 17 8.3</p><p>Key: ATSI – Aboriginals and Torres Strait Islanders BO – Born overseas BO+ENFL – Born overseas and did not speak English as their first language PWD – People with disabilities. Note: The above table does not include 44 EL1 casual employees providing fee for service work. Includes inoperative staff. </p><p>Table 39: Representation of EEO groups within salary levels, 30 June 2006 Total staff Women ATSI BO BO+ENFL PWD Staff % Staff % Staff % Staff % Staff %</p><p>Trainee APS 2 2 100.0 0 0.0 0 0.0 0 0.0 0 0.0</p><p>Cadet APS 1 0 0.0 1 100.0 0 0.0 0 0.0 0 0.0</p><p>Graduate APS 2 1 50.0 0 0.0 0 0.0 0 0.0 0 0.0</p><p>APS 1/2 5 3 60.0 2 40.0 0 0.0 0 0.0 1 20.0</p><p>APS 3/4 32 24 75.0 1 3.1 6 18.8 4 12.5 2 6.3</p><p>APS 5/6 49 35 71.4 3 6.1 14 28.6 5 10.2 3 6.1</p><p>EL1 58 39 67.2 2 3.4 12 20.7 3 5.2 5 8.6</p><p>EL2 32 22 68.8 0 0.0 6 18.8 2 6.3 4 12.5</p><p>SES + SOH 13 8 61.5 0 0.0 3 23.1 0 0.0 1 7.7</p><p>Total 194 134 69.1 9 4.6 41 21.1 14 7.2 16 8.2</p><p>Key: ATSI – Aboriginals and Torres Strait Islanders BO – Born overseas Table 39: Representation of EEO groups within salary levels, 30 June 2006 Total staff Women ATSI BO BO+ENFL PWD Staff % Staff % Staff % Staff % Staff %</p><p>BO+ENFL – Born overseas and did not speak English as their first language PWD – People with disabilities. Note: The above table does not include casual employees providing fee for service work Appendix I Senior Executive Service staffing Table 40: Advertised SES employment opportunities—Filling Method by Band 2006–07 Bands Promotion Movement Engagement Total</p><p>Band 1 239 28 59 326</p><p>Band 2 63 7 21 91</p><p>Band 3 7 1 3 11</p><p>Total 309 36 83 428</p><p>‘Promotion’ refers to the assignment of duties at a higher level to an ongoing APS employee. ‘Movement’ refers to the movement at level, or to a lower classification, of employees within and between agencies. ‘Engagement’ refers to the employment on an ongoing basis or for a specified term/task of a person who is not an ongoing APS employee. Source: Senior Executive Management System (SEMS), Australian Public Service Commission.</p><p>Table 41 covers both Senior Executive and Senior Executive (Specialist) classifications and includes both ongoing SES employees and SES employees engaged for specified terms of up to five years. Table 41: Profile of the SES by band and gender, 30 June 2007 Bands Males Females Total</p><p>Band 1 1103 655 1758</p><p>Band 2 318 153 471</p><p>Band 3 66 24 90</p><p>Total 1487 832 2319</p><p>Source: Senior Executive Management System (SEMS), Australian Public Service Commission Table 42 compares SES promotions and engagements, SES separations and total SES numbers over the past two financial years. Table 42: Comparison of incoming and outgoing SES, 2005–07 Bands Promotions/ Engagements Separations Total SES 2005–06 2006–07 2005–06 2006–07 2005–06 2006–07</p><p>Band 1 325 298 76 68 1561 1758</p><p>Band 2 76 84 28 25 404 471</p><p>Band 3 18 10 11 13 95 90</p><p>Total 419 392 115 106 2060 2319 Table 42: Comparison of incoming and outgoing SES, 2005–07 Bands Promotions/ Engagements Separations Total SES 2005–06 2006–07 2005–06 2006–07 2005–06 2006–07 Source: Senior Executive Management System (SEMS), Australian Public Service Commission Table 43: Filling of SES employment opportunities advertised in the Commonwealth of Australia Gazette from 2004–07 Method filled Gender 2004–05 2005–06 2006–07</p><p>Promotions between agencies M 22 41 28</p><p>F 21 23 17</p><p>Promotions within agencies M 124 161 140</p><p>F 68 109 124</p><p>Total promotions M 146 202 168</p><p>F 89 132 141</p><p>Movements between agencies M 7 13 16</p><p>F 13 17 17</p><p>Movements within agencies M 2 5 2</p><p>F 1 5 1</p><p>Total movements M 9 18 18</p><p>F 14 22 18</p><p>Engagements as ongoing employees M 37 44 49</p><p>F 8 23 18</p><p>Engagements for a specified term/task M 18 13 12</p><p>F 6 5 4</p><p>Total engagements M 55 57 61</p><p>F 14 28 22</p><p>Total 327 459 428 Table 44: SES retirements under section 37, 2006–07 Agency Total number </p><p>Australian Customs Service 2</p><p>Attorney-General’s Department 1</p><p>Australian Industrial Registry 1</p><p>Australian Radiation Protection and Nuclear Safety Agency 1</p><p>Australian Taxation Office 1</p><p>Centrelink 2</p><p>Department of Defence 3</p><p>Department of Employment and Workplace Relations 1</p><p>Department of Families, Community Services and Indigenous Affairs 3</p><p>Department of Foreign Affairs and Trade 1</p><p>Department of Health and Ageing 1</p><p>Department of Immigration and Citizenship 1</p><p>Department of Industry, Tourism and Resources 2</p><p>Family Court of Australia 2</p><p>Medicare Australia 1</p><p>Total 23</p><p>Table 45: SES separations by type, 2006–07 Separation type Total number</p><p>Retirement under section 37 23</p><p>Resignation 22</p><p>Retirement 39</p><p>End term engagement 14</p><p>Appointment to Public Office/Agency Head 3</p><p>By reduction 2 Table 45: SES separations by type, 2006–07 Separation type Total number</p><p>Invalidity Retirement 1</p><p>Death 2</p><p>Total 106 Glossary AAT Administrative Appeals Tribunal ACT Australian Capital Territory Adviceline Employment Policy Adviceline AFP Australian Federal Police ANAO Australian National Audit Office ANU Australian National University ANZSOG Australia and New Zealand School of Government AO Australia Order APS Australian Public Service APSED APS Employment Database APSEDII APSED Internet Interface APSjobs formerly the Australian Public Service Gazette ATO Australian Tax Office ATSI Aboriginal and Torres Strait Islander AusAID Australian Agency for International Development Austrade Australian Trade Commission AWA Australian Workplace Agreement BO Born Overseas BO+ENFL Born overseas and did not speak English as their first language CA Certified Agreement CAPAM Commonwealth Association for Public Administration and Management CDAC Career Development Assessment Centres CDS Commonwealth Disability Strategy CMC Commission Management Committee Commission The Australian Public Service Commission Commissioner The Australian Public Service Commissioner COMNET Corporate Management Network CPG Commonwealth Procurement Guidelines CPSU Community and Public Sector Union CTC Competitive Tendering and Contracting DEWR Department of Employment and Workplace Relations DIAC Department of Immigration and Citizenship DIMA Department of Immigration and Multicultural Affairs DWGs Designated Work Groups EEO Equal Employment and Opportunity EFP Executive Fellows Programme EL Executive Level e-learning electronic learning EMPA Executive Masters of Public Administration EPBC Environment Protection and Biodiversity Conservation Act 1999 ESD Ecologically Sustainable Development FACSIA Department of Families, Community Services and Indigenous Affairs FMA Financial Management and Accountability Act 1997 FMCA Federal Magistrates Court of Australia FOI Freedom of Information Act 1982 GSA Government Skills Australia GST Goods and Services Tax Hon .the Honorable HR Human Resources HRCDP HR Capability Development Programme HREOC Human Rights and Equal Opportunity Commission HSMAs Health and Safety Management Arrangements IAPSEN Indigenous Australian Public Service Employees Network ICC Indigenous Coordination Centre/s ICT Information Communication and Technology IEHR Forum Indigenous Employers Human Resources Forum ILS Integrated Leadership System ISAC Independent Selection Advisory Committee/s IT Information Technology LAFIA Leading Australia's Future in Asia LaLAC Leadership and Learning Advisory Committee LDN Leadership Development Network LLDP Leadership Learning and Development Panel MAC Management Advisory Committee MOG Machinery of Government MP Member of Parliament MPRA Merit Protection and Review Agency N/A Not Applicable NAIDOC National Aboriginal and Islander Day Observance Committee NICP National Indigenous Cadetship Programme NSW New South Wales NT Northern Territory OCSC Office of the Civil Service Commission OECD Organisation for Economic Cooperation and Development OEPI Online Employee Provided Information OH&S Act Occupational Health and Safety (Commonwealth Employees) Act 1991 OHS Occupational Health and Safety OIPC Office of Indigenous Policy Coordination OOS Occupational Overuse Syndrome OPDC Office of the Public Sector Development Commission PAES Portfolio Additional Estimates Statements PBS Portfolio Budget Statements PNG Papua New Guinea PRC Promotion Review Committee/s PSCC Public Service Commissioners Conference PSM Public Service Medal PSM Public Sector Management PWD People with Disability QLD Queensland RTO Registered Training Organisation SA South Australia SEMS Senior Executive Management System SES Senior Executive Service SOHs Statutory Office Holder STEP Structured Training Employments Project TAS Tasmania the Act Public Service Act 1999 the Gazette The Australian Public Service Gazette TIPS Together in the public service TTY Text Telephone UNPSA United Nations Public Service Award VET Vocational Education and Training VOIP Voice Over Internet Protocol WA Western Australia WR Workplace Relations</p>
Details
-
File Typepdf
-
Upload Time-
-
Content LanguagesEnglish
-
Upload UserAnonymous/Not logged-in
-
File Pages187 Page
-
File Size-