© Commonwealth of Australia 2000
ISBN: 0-642-75087-4
ISSN: 1443-8275
DOCITA 36/00
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth Department of Communications, Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to:

The Secretary
Department of Communications, Information Technology and the Arts
GPO Box 2154
Canberra ACT 2601
Australia

Telephone: 02 6271 1000
Facsimile: 02 6271 1800
Email: dcita.mail@dcita.gov.au
Website: www.dcita.gov.au

Produced by the Commonwealth Department of Communications, Information Technology and the Arts

Letter of Transmission

VISION

The Department’s vision is that Australia will continue to develop world-class communications, information technology and cultural sectors to build on the creativity of our people and the opportunities provided by new technologies, to enrich the economic, social and cultural wellbeing of all Australians.

MISSION

To enhance the wellbeing of all Australians through the enrichment of our culture and the development of the information economy.

To support its mission, the Department provides strategic advice and professional support to the Australian Government on a wide range of important and rapidly changing policy areas including telecommunications; information technology; the information economy; broadcasting (including digital broadcasting); the arts and cultural development; intellectual property; Australia’s heritage collections; and the Centenary of Federation. It also administers legislation, regulations, grants and incentives to industry and the wider community.

CORPORATE GOAL

The Department’s corporate goal is to contribute to the development of communications, information technology and cultural sectors in Australia that:

• are vigorous and sustainable in a global environment;
• encourage innovation, creativity and excellence;
• allow Australians to participate effectively in the life of the community by facilitating access to communications services and diverse cultural experiences;
• respond to the needs and interests of consumers of communications and cultural services and products; and
• take full advantage of synergies between them.

In pursuing this corporate goal, the Department recognises that staff are its most valuable resource and:

• fosters a working environment that encourages and supports staff to reach their greatest potential;
• practices social justice principles, including participative democracy, equal employment opportunity and access and equity;
• adopts the highest standards of ethics, probity and accountability; and
• encourages initiative, innovation and creativity.

Link to Organisational chart
Communications, Information Technology and the Arts organisation chart

Other Portfolio bodies:

INTRODUCTION

This report of the Department of Communications, Information Technology and the Arts for the 1999 - 2000 financial year has been prepared in accordance with the Requirements for Departmental Annual Reports approved by the Joint Committee of Public Accounts. It focuses on core information enabling Ministers, the Parliament and the public to make informed assessments of the Department’s administration and performance.

More information about the Department’s activities is available through other publications on the Department’s website (www.dcita.gov.au) or by contacting the Department’s Media and Public Affairs group - the contact officer is Jane Fleming, phone (02) 6271 1252. Guidance on the information available from the Department is contained in Appendix I (Freedom of Information s.8 Statement).

STRUCTURE OF THE REPORT

This report is in three sections.

Section 1 contains an overview of portfolio and corporate activities, and review of performance during the year in relation to outputs and contribution to outcomes.

Section 2 comprises the Appendices.

Section 3 contains the Department’s financial statements, which have been prepared on a full accrual reporting basis.

PORTFOLIO OVERVIEW

Role

The Portfolio has responsibility for implementing Government policies designed to encourage the development of communications, information technology and the arts in Australia, and to achieve outcomes that meet the Government’s objectives for these sectors.

This role is performed by the Department and Portfolio agencies and spans a range of activities, including:

• providing policy advice;
• implementing programs to intermediate operators and end users - including administering financial assistance programs;
• regulation;
• providing infrastructure; and
• providing services.

The Portfolio program structure, and map from the program structure to the new outcomes and output structure is shown in the programs and outcomes structure chart.

Outcomes

The Department worked to achieve four outcomes in 1999 - 2000:

Outcome 1: A cultural environment that enriches the lives of all Australians.

Outcome 2: Competitive and diverse communications and information technology
industries and services.

Outcome 3: Australians have electronic access to Government information and services.

Outcome 4: Improved access and competitive advantage in the global information economy to enhance Australian social wellbeing.

SECRETARY’S REVIEW

Significant issues and developments and overview of Department’s performance

As always the Department continues to work in an area which is challenging, and which addresses issues that go a long way in setting the broad template for Australia’s transition to the information economy. A snapshot of significant issues and developments and an overview of the Department’s performance is set out below.

Legislation

The framework for the commencement of digital television and datacasting in Australia from 1 January 2001 has now been put in place. This followed a number of statutory reviews and broad consultation across the industry, resulting in the development and passage of legislation by the Parliament in June 2000.

Following a review of telecommunications universal service obligations, the Government announced a new framework to improve the delivery of universal services, including competitive provision. One bill amending the Telecommunications (Consumer Protection and Service Standards) Act 1999 was passed in June 2000 and a second bill was introduced in the same month.

In major reform on the copyright front, the Department contributed through:

• the Copyright Amendment (Digital Agenda) Bill 1999, which was passed by the House of Representatives;
• a commitment to implement competition reform through parallel importation for books and computer software;
• a Bill for incorporating Moral Rights protection into the Copyright Act 1968, introduced to the House of Representatives in December 1999; and
• coordinating a major stakeholder meeting on authenticity towards the development of a Strategic Plan for improving protections for Indigenous intellectual property related to arts and cultural expression.

Regional focus

The Department has overseen several programs aimed at helping to improve the communications infrastructure for Australians living beyond the city limits, and helping to promote and support their access to new technologies.

Significantly in the past financial year the Department managed a range of new social bonus programs funded by the proceeds of the second partial sale of Telstra. These include a $150 million tender for untimed local calls, and a $25 million tender to provide additional mobile phone coverage on designated highways. These programs are still at the implementation stage.

Other initiatives developed by Department have included:

• major reforms to the universal service regime;
• development of a new Customer Service Guarantee Direction to the Australian Communications Authority (ACA) which substantially strengthens consumer protections; and
• improving the leadership and coordination of communications developments with the States through the Online Council and related forums.

To assist regional commercial television broadcasters with the introduction of digital television, the Regional Equalisation Plan was finalised. This package provides up to $260 million over 13 years.

Industry focus

Industry development has become a prominent area of the portfolio, and has resulted in increasing collaboration between industry and the Department on a number of fronts.

Substantial preparatory work was undertaken on the Information Industries Investment Strategy, including commissioning a study of the targets for investment attraction. The strategy is intended to help support innovation and entrepreneurial activity and improve IT&T trade and investment.

The $158 million Building on IT Strengths (BITS) program commenced, and will assist in the commercialisation of IT&T related research and development. The Department has also encouraged innovation and technology diffusion in the IT&T sector through the Software Engineering Quality Centres Program.

Broadcasting

To improve the range of television services available to all Australians, the Department implemented the $120 million Television Fund, which will provide:

• fully funded extension of SBS services to more than 1.2 million people in regional Australia;
• assistance for communities to establish self-help retransmission services to eliminate television ‘black spots’; and
• assistance to SBS to enhance the range of text and audio programs available online.

Online

Governments can be key catalysts for the take up of online services through their own innovative use of IT in providing information and delivering services. To this end, the Commonwealth’s Government Online Strategy was released in April 2000, and provides guidance to agencies about electronic dealings with suppliers and electronic delivery of government information and services.

The Department was also responsible for coordinating the national response to Y2K, including monitoring preparations by Commonwealth bodies and key sectors, conducting a community awareness campaign, and overseeing the national Y2K industry strategy.

More broadly, major contributions were made to the development, coordination and oversight of policy relating to information economy issues - including taxation, private sector privacy legislation, problem gambling and the use of e-commerce in key industry sectors.

A successful promotional project, Online Australia Year, built on Australia’s information economy strengths by raising awareness of the economy-wide benefits of the information revolution.

International

Internationally, the Department achieved broad support for Australia’s position on greater fairness in international Internet charging arrangements in APEC and the ITU.

Arts and cultural sector

The Department provided support for the Major Performing Arts Inquiry and manages the Government’s response to the Inquiry’s 95 recommendations designed to stabilise and reposition the sector. Following negotiations with State Governments, the Commonwealth will provide an additional $45 million to help secure the artistic and financial future of the major performing arts sector.

More than 1 000 Federation Fund projects are managed by the Department, under the Federation Community Projects Program, the Federation Cultural and Heritage Projects Program and the major cultural facilities component of the Federation Fund. These projects will provide lasting benefits to communities across the country and, with the work of the National Council for the Centenary of Federation, makes all Australians feel a part of the Centenary of Federation celebrations.

Significant changes to major functions

During 1999 - 2000, the Department was allocated substantial funding from the sale of a further
16.6 per cent of Telstra (‘Telstra 2’) to implement new and expanded programs. In addition, the Department is providing secretariat support for the Telecommunications Service Inquiry, chaired by Mr Tim Besley.

COMMUNICATIONS, INFORMATION TECHNOLOGY AND THE ARTS PORTFOLIO PROGRAMS AND OUTCOMES STRUCTURE

* Budget-funded agencies, reporting separately to Parliament. The National Archives of Australia is part of the Department, but is required under s.68 of the Archives Act 1983 to produce its own annual report.

** Sub-program attached to the Department but operating essentially as an autonomous agency.

*** Wholly-owned Commonwealth company, reporting separately to Parliament.

# Government Business Enterprise, reporting separately to Parliament.

Outputs

Sixteen outputs have been developed to achieve these outcomes.

MAPS OF REVISED OUTPUT STRUCTURE FROM PORTFOLIO BUDGET STATEMENTS (PBS) TO PORTFOLIO ADDITIONAL ESTIMATES (PAE)

MANAGEMENT AND ACCOUNTABILITY

Corporate governance

During 1999 - 2000, the Department pursued a number of initiatives aimed at improving its corporate governance, planning and change management processes. A broad organisational effectiveness study assessed a range of key issues - leadership and direction, structure, accountabilities and roles, communication, the way work is organised, people development and performance management. The study resulted in further development and formalisation of the Department’s strategic planning process, the introduction of a new governance framework to facilitate accountability, and participation in, and progression of, initiatives aimed at promoting organisational development.

Authority for decision making in the Department resides with the Secretary, who delegates his decision-making authority primarily through the line management structure.

The governance committee framework establishes the basis for efficient, effective, ethical and accountable management of the Department. These committees primarily address issues that affect the whole Department. Committee members collaborate and promote their decisions.

Line Management and Basic Governance Committee Structure

The Executive Management Group (EMG) is the chief governance committee for the Department. It is chaired by the Secretary and comprises each Executive Director, the Chief Executives of NOIE and OGO and the Chief General Manager, Corporate and Coordination. The EMG makes decisions on corporate governance matters, with particular emphasis on improving the Department’s operational effectiveness. It has a key role in setting directions for the Department’s planning process, reviewing plans and performance, allocating resources, financial management and developing departmental staff.

EMG generally meets every six weeks. It met 10 times during the year and considered a range of policy issues including:

• the Department’s business planning framework and process;
• Organisation Development Review;
• performance management;
• internal communications;
• implementing the GST;
• Information Management Strategic Plan;
• Environment Management Plan;
• workforce planning;
• Service Charter Review;
• impact of changes to the Public Service Act; and
• market testing of Corporate Services.

Four sub-committees, whose membership comprise representatives of the Department's senior executive and are rotated from time-to-time, assist the EMG's work.

• The Organisation Development Committee (ODC), chaired by the Secretary, leads and oversees the implementation of the organisational change program, and the development of staff. The committee met five times during the year. Main issues considered included the Workforce Planning and Human Resources Development Strategy, the Department’s Communication Strategy, a review of corporate behaviours, a skills assessment of staff, changes to the Public Service Act, and performance management.
• The Strategic Issues Group (SIG) is chaired by one of the Executive Directors. Its role is to identify long-term issues so the Department can deal with them in a timely and effective way. The Committee met five times during the year. Main issues considered included the Department’s role in international activities, intellectual property, and major strategic issues facing the Department.
• The Information Management Committee (IMC) is chaired by the Chief General Manager, Corporate and Coordination, and provides advice and strategic direction for managing the Department’s information needs. The committee met nine times during the year. Main issues considered included the Department’s response to Y2K, the development of an Information Management Strategic Plan and an Online Services Strategy, knowledge management initiatives, and the web redevelopment project.
• The Budget Committee is chaired by the Chief Executive of OGO. It considers strategic budget issues and ensures consistency in presentation and interpretation of budget material. Main issues considered during the year included the full implementation of accrual accounting, monitoring and control of the Department’s resources, forward year budget assessments, and assessment of new policy proposals for the Portfolio.

Two other committees report directly to the Secretary

• The Workplace Relations Committee (WRC) provides a forum for information sharing, promoting workplace relations and overseeing the implementation of the Department’s Certified Agreement. The WRC also helps to ensure management is properly informed of staff views across a range of issues.
• The Fraud, Audit and Evaluation Committee (FAEC) oversees and provides guidance on the Department’s fraud control, audit and evaluation functions. More information on this committee is provided under Internal and External Scrutiny.

From time-to-time departmental project teams are established to address specific issues over a fixed period. These projects may include policy, program or organisational matters. Project teams were set up during the year to address the Convergence Review, regional issues, GST, the Department’s Online Strategy, and market testing of Corporate Services.

Department planning processes and performance review

As a result of new functions coming into the Department following the administrative order changes in October 1998, the Department revised its strategic planning processes to take into account the new responsibilities and reflect the new outcomes/outputs structure. The Department developed a high-level business plan for 1999 - 2000 that was supported by more detailed plans at the group/branch level. A new planning and reporting framework was developed and introduced to ensure that the planning process is linked to performance management and review processes.

Ethical standards

The Department is strongly committed to supporting and promoting the Australian Public Service (APS) Values and Code of Conduct in accordance with the Public Service Act 1999.

Information about staff and managers’ responsibilities under the APS Values and Code of Conduct was distributed to all staff, and is included in information packages for new recruits. After running several focus groups with staff, the Department recently reviewed its corporate behaviours and developed a Values and Behaviours Framework, which incorporates the APS Values. The value of ‘innovation and creativity’, considered essential for this Department’s charter and success, was added to the Framework.

The Values and Behaviours Framework is integrated into the performance management process.

INTERNAL AUDIT AND EXTERNAL SCRUTINY

Fraud, Audit and Evaluation Committee

The Fraud, Audit and Evaluation Committee is accountable for advising on the probity and compliance of the Department’s processes, procedures and activities with efficient, effective and ethical operations. It oversees and appraises the quality of reviews conducted by the Department’s internal auditor and its external auditor - the Australian National Audit Office (ANAO). It acts as an advisory body on the adequacy of the Department’s administrative operating and accounting controls. It also has a role in overseeing risk management planning and implementation within the Department. The committee is comprised of the Secretary, three members at Chief General Manager or higher level (on rotation for one year) and the Chief General Manager, Corporate and Coordination.

The committee met four times during the year.

Internal audit

KPMG was engaged to provide internal audit services to the Department, and has submitted nine reports to the Fraud, Audit and Evaluation Committee:

• Review of Payroll Operations of ScreenSound Australia;
• Review of the ScreenSound Australia Gift Shop;
• Review of IT Security for the National Archives of Australia;
• Review of MAVIS (ScreenSound Australia’s audiovisual cataloguing and tracking system);
• Review of Data Security for ScreenSound Australia;
• Review of the National Archives of Australia Record Keeping System;
• Review of Arts Competitive Grants Programs;
• Review of GST Readiness; and
• Review of Corporate and Coordination’s PERSPECT Personnel System.

KPMG also completed a review of the Department’s Fraud Risk Assessment Plan and Fraud Control Plan during the year. Control strategies identified from the review will be implemented over the coming year.

ANAO reports

The ANAO issued 13 reports in 1999 - 2000, which were either of specific or general interest to the Department. Audits which the Department participated in, or had a specific interest in, include:

• Audit Report No. 11 Financial Aspects of the Conversion to Digital Broadcasting Australian Broadcasting Corporation Special Broadcasting Service Corporation (21 September 1999)
• Audit Report No. 18 Electronic Service Delivery, including Internet Use, by Commonwealth Government Agencies (15 November 1999)
• Audit Report No. 30 Examination of the Federation Cultural and Heritage Projects Program
  (3 February 2000)
• Audit Report No. 32 Management of Commonwealth Non-primary Industry Levies
  (17 February 2000)
• Audit Report No. 34 Construction of the National Museum of Australia and Australian Institute of Aboriginal and Torres Strait Islander Studies (16 March 2000)
• Audit Report No. 41 Commonwealth Emergency Management Arrangements (28 April 2000)
• Audit Report No. 47 Survey of Fraud Control Arrangements in APS Agencies (20 June 2000)
• Audit Report No. 52 Control Structures as Part of the Audits of Financial Statements of Major Commonwealth Agencies for the Period Ended 30 June 2000 (30 June 2000)

Audits of general interest to the Department include:

• Audit Report No. 2 Use of Financial Information in Management Reports (15 July 1999)
• Audit Report No. 7 Operation of the Classification System for Protecting Sensitive Information (11 August 1999)
• Audit Report No. 11 Management of Contracted Business Support Processes (14 October 1999)
• Audit Report No. 25 Commonwealth Electricity Procurement (5 January 2000)
• Audit Report No. 39 Coordination of Export Development and Promotion Activities Across Commonwealth Agencies (13 April 2000)

Risk management framework

External scrutiny

No judicial or administrative tribunal decisions had a significant impact on the operations of the Department during the year.

In 1999 - 2000, the Ombudsman received seven complaints relating to departmental actions.

The Ombudsman decided not to investigate four of the complaints. Two were investigated and one was outstanding at the end of the period. In one of the two complaints investigated, the Ombudsman found no defective administration. With the remaining complaint, the Ombudsman found there was defective administration in how the Department had advised a grant recipient of details about the grant, and in failing to respond to correspondence. The Department resolved the matter by responding to the grant recipient’s queries.

The Ombudsman made no formal recommendations to the Department or formal reports to the Minister under the provisions of the Ombudsman Act 1976. No recommendations for act of grace payments were made.

ORGANISATIONAL DEVELOPMENT INITIATIVES

Accrual accounting and improved financial management

The Government’s outcome and outputs based accrual framework was implemented for the first time in 1999 - 2000.The Department’s financial management was substantially enhanced during the year through system upgrades and improved management reporting. Full accrual accounting was adopted from 1 July 1999 for both internal and external monthly reporting. An extensive training program was delivered to staff, supported by revision of all accounting documentation. The Department assumed responsibility for managing its cash on an accrual basis for the first time. This significant task saw the Department adopting a more businesslike approach to cash management and the earning of interest.

The transition to new arrangements was managed effectively despite the demands on financial staff and systems, and continuing difficulties in obtaining and retaining qualified professional and technical staff.

The initiatives will provide a sound foundation for further development over the next two years, including more user-friendly access to financial information and further development and integration of corporate reporting systems.

Corporate Services market testing

In line with the Government’s commitment to competitive tendering and contracting, the Department commenced a two-stage market testing of Financial Management, Human Resource Management and Property and Office Services, releasing an expression of interest in April 2000. The second stage of the process will involve a request for tender early in 2000 - 01 to the shortlisted firms. The shortlist has been determined on the basis of bidders’ ability and capacity to deliver the level of functionality specified in the expression of interest.

IT systems improvements

In addition to enhancing its financial systems, the Department implemented a new Parliamentary Correspondence System and a new Records Management System. The predecessors to these systems were not Y2K-compliant. The two systems were implemented to make sure a ‘best practice’ model of capturing electronic records was incorporated. This model will be used for all new corporate applications to ensure adequate capture and management of electronic records in the future.

Development and implementation of an Environmental Management System

An Environment Policy and Environment Management System was developed for the Department in 1999 - 2000. It established the structures, roles and responsibilities for the Department to achieve improved environmental performance in accordance with Government policies and objectives.

Implementing The New Tax System

The Department established a small team in July 1999 to implement The New Tax System across the Department and Portfolio. The team’s main role was to ensure the Department and all Portfolio agencies were able to meet the requirements of The New Tax System and to optimise the benefits available to them. The Department and all Portfolio agencies succeeded in achieving compliance prior to 1 July 2000.

The Department also played a role in introducing The New Tax System across Government. For example, the Department helped develop a number of Australian Tax Office GST Rulings, including on the treatment of appropriations and grants. The Department also worked with the Australia Council and the Australian Film Commission to develop and deliver GST Start Up Office education campaigns to the arts and film sectors.

The Department has an ongoing role in the application of several parts of The New Tax System, including developing and applying mechanisms to ensure that Portfolio sectors have proper access to the GST-free provisions of the legislation.

Successful transition to Y2K

The Department made the transition to the year 2000 without experiencing any Y2K problems. This was largely attributable to remedial action taken over the previous two years, planning for the transition. The Department’s Y2K strategy involved fixing some systems and replacing others.

Department’s Online Strategy

In line with the Government Online Strategy announced in April 2000, the Department has developed its own Online Strategy, which identifies ways to meet the Government’s online objectives. In particular, the Department’s strategy aims to:

• improve the Department’s capability to embrace online technology;
• identify which services are appropriate to be delivered online; and
• effectively use online technologies to provide a better service.

A major online service delivery initiative is delivering departmental programs online.

The Networking the Nation grant process is being delivered online and this has paved the way for online delivery of the rest of the Department’s grants programs over the next 12 months.

The Department is also redeveloping its website to increase its capability to embrace online technology and to provide better service. Part of this strategy also identifies an ongoing monitoring framework that strives to achieve continuous improvement in the level of online service delivery.

Legal and Parliamentary Services

Throughout the year, a broad range of legal advice was provided to policy areas. This assisted the Department to advise Portfolio Ministers and the Parliamentary Secretary. A number of significant bills relating to major Government initiatives were developed for introduction into the Parliament. A new system for handling ministerials and briefs throughout the Department is assisting with the processing, tracking, better management reporting and management of the electronic workflow of Parliamentary and Ministerial correspondence. While implementing this new system, the Department continued to provide responsive services to assist Cabinet processes, ministerial briefings and correspondence, coordinated Parliamentary tabling and responses to Parliamentary questions for the Portfolio.

Media and Public Affairs

In 1999 - 2000, Media and Public Affairs (MPA) provided strategic advice and services to the Department and the offices of the Portfolio Ministers and Parliamentary Secretary.

A wide range of communications and marketing strategies was delivered, including for the Major Performing Arts Inquiry, the Networking the Nation program, Government Online, social bonus initiatives - TIGERS, BITS, Television Black Spots program - and the Y2K community information campaign, which concluded in January 2000. Other communications strategies in progress include the Federation Fund, and the Department’s role in the Olympics.

These strategies provided a range of audiences - the Australian general public, industry sectors, regional and rural communities - with targeted information through the Internet, advertisements, direct marketing, promotional literature, publicity, Ministerial launches, events, and public announcements.

These activities contributed to the development and successful communication of departmental activities, policies and programs.

Evaluation work began on the redevelopment of the Department’s website, and the development of a business plan for online communications services. The Department’s intranet was also reviewed, resulting in a much stronger and more user-friendly internal resource.

During the year, MPA also produced speeches and media releases for the two Ministers and the Parliamentary Secretary; provided a media monitoring service (including daily media summaries); provided issues management advice and media analysis; coordinated Department publications and wrote and edited a range of Department newsletters and reports.

Management of human resources

Assessment of the Department's effectiveness in managing and developing staff

In June 2000, a workforce planning strategy was developed and agreed to by the Department’s Executive Management Group. The aim of the strategy is to produce reliable quantitative and qualitative reports on the Department’s workforce - against key outcome and output related measures - so managers can develop and implement appropriate responses to ensure the Department’s workforce can contribute effectively to outcomes and outputs. Analysis of staff turnover, retention and recruitment rates for 1999 - 2000 financial year has begun.

The Secretary determines Senior Executive Service (SES) remuneration. In doing so, regard is given to performance outcomes, market forces and the outcomes of the Department of Employment, Workplace Relations and Small Business SES Remuneration Survey.

Staff training and development activities are generally provided on demand. A Training and Development Strategy was endorsed during the year, introducing an enhanced range of activities.

Individual training modules are linked to initiatives such as the performance management process - which helps meet the individual needs of managers and staff and provides an assessment of skills across the Department.

A range of courses is coordinated in-house, with ongoing evaluation and modification. These were managed with the assistance of external providers. Courses included project management; contracts and grant deeds; departmental orientation; introduction to performance management; financial management; writing skills; communication skills; economics for non-economists; legal awareness; the APS and Government; conflict resolution; interpersonal skills; and interview skills.

Many of these courses supported significant organisational change, such as the roll-out of a refined performance management system, more effective project management and an increased emphasis on contract management and financial management accrual accounting.

Major initiatives aimed at improving the effectiveness and productivity of the organisation included refining the Performance Management System - which embraces all levels of staff and management - and reviewing and modifying the corporate governance system, which addresses all aspects of departmental operations.

The Department’s Certified Agreement nominally expires on 30 June 2000. The Agreement has been successful in streamlining leave and other general conditions of service and in introducing a Pilot Performance Management System (PMS). Originally introduced in 1998 after the evaluation of the pilot, a refined PMS was implemented during the life of the current Certified Agreement.

Negotiations for a replacement Certified Agreement have begun.

CLIENT SERVICE CHARTER

The Department is in the second year of implementing its Client Service Charter. In line with the Government’s commitment to deliver high quality services to its clients, the Department reviewed its Service Charter to ensure its ongoing relevance and effectiveness. The review was carried out in accordance with the Government’s Client Service Charter Principles.

A representative sample of the Department’s clients was surveyed to identify needs and expectations. The survey provided feedback on the Department’s service delivery performance and on the relevance of proposed service standards. This information will enable the Department to monitor improvements in service delivery over time.

Ninety-seven per cent of survey respondents rated the services provided by departmental staff as satisfactory or better. The Department’s performance against the standards in the current Service Charter were as follows:

• fair administration of grants and programs according to relevant guidelines, criteria, regulations or legislation: 95 per cent of surveyed clients rated this standard as satisfactory to excellent;
• timely processing of payments, according to relevant schedules or contractual commitments: 90 per cent of surveyed clients rated this standard as satisfactory to excellent;
• adequately publicised programs, application procedures, and appropriate information about policy issues: 94 per cent of surveyed clients rated this standard as satisfactory to excellent;
• professionally dealing with clients by providing timely oral and written advice which is clear, concise, accurate and complete: 95 per cent of surveyed clients rated this standard as satisfactory to excellent;
• courteous treatment of clients: 99 per cent of those surveyed rated this standard as satisfactory to excellent; and
• prompt response to enquiries: 95 per cent of surveyed clients rated this standard as satisfactory to excellent.

The review process has identified a need to raise awareness about the Service Charter amongst staff and clients.

A few respondents expressed concern about lack of advice regarding staff changes, and encountered some difficulties with perceived inconsistencies in advice provided by new staff.

The survey was supplemented by formal feedback from the Department’s clients during the year, which included 11 letters complimenting staff performance.

No formal complaints were recorded during the year.

Further analysis of the survey results is underway and will be taken into account as the Department finalises its revised Service Charter. The Service Charter is available on the Department’s website at www.dcita.gov.au.

National Archives of Australia Service Charter standards

The National Archives Service Charter aspires to a high level of service standards for the public and advises what they can do if these standards are not met.

During this reporting period, the Archives received one complaint relating to one facet of the services provided. This low statistic reflects the staff commitment to the provision of excellent service. A reader survey testing staff helpfulness, competence, professionalism, knowledge, politeness, and friendliness found 98per cent of respondents considered the Archives staff rated at the highest level.

The standard 30 day response time for reference inquiries was achieved in 96 per cent of cases rather than the standard 98 per cent. Two contributing factors were down-time and user training during the roll-out of the Archives’ new database, RecordSearch, and a sharp escalation in requests for copies of World War I service records.

The National Archives’ website was available for over 98 per cent of the time, which exceeded the standard set in the Service Charter.

Of the 57 532 records issued to researchers in reading rooms, 99.9 per cent were made available within the standard issue times (30 minutes for reading rooms with on-site record storage and 90 minutes for reading rooms with off-site records storage). This exceeded the standard of 98 per cent.

No complaints were received about the turnaround times for photocopying (same day for fewer than 10 pages, 10 working days for more than 10 pages).

Eighty per cent of applications for access to records were satisfied within the minimum time frame (0 - 30 days) and 92 per cent were completed within 90 days. Longer response times are usually the result of records being referred to agencies or foreign governments for advice.

The Service Charter is available on the Archives website at www.naa.gov.au/About_Us

ScreenSound Australia Service Charter

ScreenSound Australia’s Service Charter, which was first published in 1997, sets out the standards of service our customers can expect in their dealings with the organisation, and the steps to be taken if these standards are not met.

During the year several surveys were conducted to assess the level of client satisfaction with the services provided by ScreenSound Australia. The organisation’s performance against the standards in the current Service Charter were as follows:

• provision of programs and services to a high standard - 92 per cent of surveyed clients were very satisfied with their ScreenSound Australia product purchases, and visitors to presentations and exhibitions rated them very highly;
• prompt, effective, courteous and personal service - 95 per cent of Client Access users rated the services provided very satisfactory or satisfactory, with 97.5 per cent of requests serviced within or before the deadlines requested by customers;
• highest possible standard of technical work - 94.1 per cent of clients surveyed indicated that the quality of technical work supplied by ScreenSound Australia was very good or good; and
• adherence to legal obligations and the right to privacy and confidentiality - no complaints were received on this standard.

The surveys were supplemented by formal feedback from ScreenSound Australia’s clients during the year, which included 132 letters and 60 visitor comments, complimenting staff performance.

Out of a total of 99 complaints received last year, ScreenSound Australia’s change of name and the relocation of its Sydney Office, provoked a total of 73 (with 47 of these provided orally to staff members at several meetings and conferences). Staff have worked very hard with clients and stakeholders to better explain the rationale for these two changes and complaints have steadily reduced. The majority of the remainder of the complaints concerned our website (which were dealt with immediately), and signage/parking (discussions being undertaken with local government).

ScreenSound Australia’s website, which was a finalist in the 1999 Australian Financial Review/Telstra awards, has been available 98 per cent of the time during the reporting period. Policy documents and other administration documents for visitor information and orientation are available on our website, and a guest book has been included on the site for users to provide comments.

ScreenSound Australia has a program in place to monitor service to clients, well-developed procedures for obtaining client feedback, and a complaints handling mechanism. All complaints received were dealt with promptly, and action was taken to address the matters raised.

The Service Charter is available in hard copy from the Archive’s Coordination area, included in mail-outs to customers, and on ScreenSound Australia’s website, www.screensound.gov.au/services/charter.htm.

Questacon Customer Service Charter

Questacon introduced its Customer Service Charter in August 1998 after consultation with staff, Questacon members, the public and special stakeholders such as the Council and sponsors.

The Questacon Customer Service Charter covers visitors to the Centre and its exhibitions and programs throughout Australia. It is available online at www.questacon.edu.au/customer_service_charter.html and in a hard copy pamphlet, with attached comment card. Copies are displayed in the Centre’s galleries and foyer and distributed through outreach programs and travelling exhibitions throughout Australia, including regional, rural and remote areas.

The Charter sets out a number of performance standards for Questacon programs. These standards comply with the Government’s Charter of Public Service for a Culturally Diverse Society under the Commonwealth Access and Equity Strategy.

Standards covered include; the quality of relationship with clients, service delivery, online service delivery, access to service by people with disabilities, Australians living in rural, remote and regional areas, and reflects the values of service expressed in the Australian Public Service Act 1999.

Results showed that 80 per cent of recipients were positive about Questacon’s programs with the most common compliments received including the positive attitude, knowledge and actions of staff and that Questacon offered a fun, educational and learning experience.

All complaints were dealt with immediately and all of the complainants were satisfied with the way their complaints were handled.

SOCIAL JUSTICE AND EQUITY

The Department’s Service Charter details its commitment to deliver high quality services to clients. A major focus is the commitment to equity principles in facilitating community access to the Department’s programs. The Department works to ensure the needs, priorities and interests of diverse client groups are considered in all stages of the program cycle and that the principles of the Government’s social justice strategies and charters are applied. The client survey was conducted as part of the review of the Service Charter and included questions designed to ascertain the Department’s sensitivity to diversity issues.

This year, the needs of rural and regional Australians were again a focus, with the implementation of the social bonus program. In addition, the Department considered groups with special needs encouraging broader community access to the information economy. For example, since 1999 was the International Year of Older Persons, an Online Seniors Day was held, and a website for seniors established. Other important outputs were linked to initiatives encouraging women to explore the benefits of the Internet and develop their online skills and measures to ensure affordability and access to services/programs by all Australians.

An overview of social justice outputs is outlined below.

Broadcasting

The Government has undertaken several initiatives to facilitate access to a wider range of broadcasting services in regional and remote Australia. These include legislation to encourage additional commercial television services in regional communities that currently have less than the three commercial services found in most metropolitan areas. These measures were the result of a far-reaching review of underserved regional licence areas, involving extensive public consultations.

Legislation will also allow the Australian Broadcasting Authority to approve out-of-area direct - to-home reception of satellite commercial television services in areas with inadequate terrestrial transmission reception. This will help viewers in difficult reception areas access basic television services.

The Government will provide up to $260 million over 13 years under the Regional Equalisation Plan to assist regional broadcasters to introduce digital television and datacasting services in regional and remote Australia.

The Department distributes funds to the Community Broadcasting Foundation ($5.271 million in 1999 - 2000) to assist the operations of community broadcasters - who run non-profit radio services, which emphasise community participation, and provide access for minority and special interest groups and promote the Australian music industry. There are 190 licensed community radio services operating throughout Australia and around 100 aspirant groups seeking permanent licences (granted free-of-charge).

The Department administers the $120 million Television Fund, established as part of the Government’s commitment to improving the quality and range of television services available to all Australians. The program goals are to: fix major television reception black spots; extend SBS television to transmission areas with more than 10 000 people; subsidise the purchase of a transmitter and decoder necessary to provide a second terrestrial commercial television signal to ‘self-help’ communities in remote areas; assist the Special Broadcasting Service (SBS) to establish a new media unit; and subsidise self-help television retransmission groups to access National Transmission Network sites in regional and remote Australia.

Telecommunications

The Department built on the success of the Networking the Nation (NTN) program when implementing social bonus programs focusing on the needs of Australians in non-metropolitan areas. NTN continued to redress inequities in telecommunications infrastructure development and access to communications services across rural, regional and remote Australia. The program is accessible to a broad range of community groups, including small Indigenous communities.

All Indigenous-related project proposals are referred to a dedicated Indigenous Affairs Policy Adviser within the NTN Secretariat. In addition, the AccessAbility program aims to improve access to the Internet and online services for people with disabilities whose special needs often present barriers to access. The secretariat provides assistance to applicants to develop their applications if necessary.

The other social bonus programs will improve access and enhance services, and make telecommunications services in remote and regional Australia more affordable and reliable. These programs target areas where market forces are not expected to deliver equitable service levels in the immediate future.

Programs include:

• Remote and isolated communities - $20 million;
• Internet Access (untimed local call access) - $36 million;
• Mobile phone coverage on highways - $25 million;
• Expanded mobile phone coverage - $3 million;
• Building Additional Rural Networks (BARN) - $70 million;
• Local Government Fund - $45 million;
• Connecting Tasmanian Schools - $15 million; and
• Untimed local calls in extended zones - $150 million.

Government online

Consumers are demanding better quality Government services and greater access at more convenient times and locations. Business is demanding more efficient service and reduced compliance costs.

OGO is working with all Commonwealth agencies to have appropriate Government services online by 2001.

Under the Government Online Strategy, agencies must report on how they are improving ease of access to Government services and information. The Commonwealth Online Reporting Framework will provide information on how agencies can measure client needs and preferences, and respond to deliver effective online services. The guidelines issued to agencies on preparing Agency Online Action Plans specify that agencies should include information on customer needs and requirements when setting their online strategies and priorities.

Y2K

As part of its responsibility for whole-of-government Y2K readiness, the Department managed the Year 2000 Community Information Campaign. The campaign included national and regional press advertising in two phases, in 58 non-English speaking broadcasts, 37 other languages and four Aboriginal and Torres Strait Islander (ATSI) publications; prepared articles for people with disabilities and remote communities; produced audiocassettes in conjunction with Blind Citizens Australia (BCA) for distribution to BCA members and affiliates and for broadcast information on network stations; and liaised with the National Indigenous Media Association of Australia.

NOIE

NOIE’s Online Australia Year had three main streams of activity - peak events, an agenda series and special projects. It included many national, regional and local awareness-raising activities promoting full community and individual participation in the information economy. Examples included Seniors Online Day, Women Online Week, the Online Australia Cultural Festival, the Return Program (a skills development program for women returning to the workforce), and the development of a multilingual website.

Arts

The Commonwealth Government’s cultural access programs - Playing Australia, Festivals Australia, Visions of Australia and the Contemporary Music Touring Program - provided more than $5 million during the year. This funding:

• assists tours of the best Australian performing arts and contemporary music;
• makes the nation’s collection of scientific, heritage, Indigenous and artistic material accessible to regional Australia; and
• provides support for increased cultural activity at regional community festivals.

Visions of Australia funds supported five multicultural exhibitions and 11 on Aboriginal or Torres Strait Islander themes. A number of departmental agencies provided a program of touring exhibitions to regional and rural communities.

The Commonwealth’s Regional Arts Fund contributed to the cultural development of rural and regional Australia. The majority of funds are devolved to State and Territory Governments and the Australia Council.

The Federation Community Projects Program provided grants to all Australian electorates for community-based activities to acknowledge and celebrate Australia’s Centenary of Federation.

Works from the Department’s Artbank collection are often sought for special exhibitions. During the year, 10 works from the collection were made available on temporary loan for exhibitions. A series of education lectures on the Artbank collection was also given throughout the year to special interest groups.

Centenary of Federation

The National Council for the Centenary of Federation develops and plans activities that aim to maximise inclusiveness. It recognises that the Centenary of Federation is a time to remember the pioneers of our constitution and democracy, to value the rich cultures and heritage of Australia’s Indigenous peoples, and to recognise the contributions of people from all over the world who have settled in this country. The National Council is progressing a series of national community projects as well as major events being developed at a national level, and State and Territory committees for the centenary year.

Old Parliament House (OPH)

OPH and the National Portrait Gallery take into account a range of social justice and equity issues when designing public programs, such as school programs, events and exhibitions. Management is also mindful of the need to continue to provide access to the building for people with disabilities. Plans are being developed to upgrade access progressively.

Intellectual property

The Interdepartmental Committee for Indigenous Cultural and Intellectual Property worked on a Strategic Plan to enhance protection of Indigenous cultural and intellectual property relating to arts and cultural expression.

National Archives of Australia

Work has continued on the Bringing Them Home Indexing Project, which forms part of the Commonwealth’s response to the Bringing Them Home report and aims to help separated Indigenous people reunite with their families and communities. The allocation of $1 million to date has seen teams of indexers placed in Darwin, Canberra and Melbourne.

In May 2000, the Archives’ exhibition Between Two Worlds: The Commonwealth Government and the removal of Aboriginal children of part-descent in the Northern Territory returned to Canberra with a new component which updates the story since the exhibition first opened in 1993. An education program was developed targeting secondary school students and a teachers’ familiarisation event held.

The education kit 1901 and all that, developed by the Archives with a grant from the National Council for the Centenary of Federation, includes material relating to Indigenous Australians, women’s suffrage and immigration.

Safe Haven: Records of the Jewish Experience in Australia and Good British Stock: Child and Youth Migration to Australia are two research guides published during the year which provide information about social justice issues for migrant groups.

In March 2000, the Director-General of the National Archives of Australia signed a Memorandum of Understanding (MOU) with the Victorian Aboriginal Child Care Agency. The MOU covers special access arrangements to Commonwealth Government records more than 30 years old, to assist Aboriginal people link up with families and communities they were separated from under former government policies.

Questacon - The National Science and Technology Centre

In 1999 - 2000 the Shell Questacon Science Circus once again received funding from the Department of Education, Training and Youth Affairs, under the VEGUS program, to visit 33 remote Aboriginal communities in the Kimberley region, north-west Western Australia and the Northern Territory, including Groot Eylandt. Questacon initially consulted with the Northern Land Council and Aboriginal and Torres Strait Islander Commission (ATSIC) before approaching communities to find out their requirements and tailor a program to best meet their needs. Aboriginal and Torres Strait Islander community representatives train the scholars before the tour of visits to increase their effectiveness. Educational support materials are also especially developed to leave with the communities.

ScreenSound Australia - The National Screen and Sound Archive

ScreenSound Australia’s touring program continued to extend its audience reach in rural and regional Australia, and accommodated a variety of visitor groups, including students; community groups, clubs and seniors; those with specialist education interests; and people from non-English-speaking backgrounds.

In June 1999, ScreenSound Australia made its online collection database available on the Internet, greatly increasing the accessibility of its Australian collection to regional and remote areas, as well as internationally.

During the year, ScreenSound Australia established an Indigenous Reference Group, comprising expert external representatives, to advise on and support the implementation of the Archive’s Aboriginal and Torres Strait Islander Policy. This Policy seeks to provide informed and equitable collection development for, and access to, the Archive’s Indigenous holdings and to establish a sustainable relationship with Indigenous communities. A long-term project has commenced to assess and upgrade existing data for Aboriginal and Torres Strait Islander holdings.

DEPARTMENT’S FINANCIAL PERFORMANCE

The financial statements included in this Annual Report, provide detailed information on the Department’s financial results for 1999 - 2000 and its financial position at 30 June 2000.

The following summarises significant issues in the financial statements. The 1999-2000 year is the first under the Government’s accrual budgeting framework.

The Department recorded a net surplus of $46.370 million for the year, compared with a deficit of $411.207 million in the 1998 - 99 financial year. The major reason for this variance is the accounting treatment of the National Transmission Authority sale in the prior year. In accordance with Department of Finance and Administration requirements, the book value of $380.612 million was written off in the Department’s financial statements, with the sale proceeds credited to the Office of Asset Sales and IT Outsourcing. The ultimate profit on sale was accounted for at a whole-of-government level.

The reported surplus for the current year includes:

• appropriations related to the capital use charge of $32.035 million; and
• an abnormal item of $25.407 million for the transfer of the National Science and Technology Centre and ScreenSound Australia buildings from Administered Assets and the Department of Finance and Administration respectively into the Departmental category.

Adjusting for these items, the Department recorded a loss on its operations of $11.072 million, which is explained by the carryover of unspent funds from 1998 - 99 into the first year of the accrual budgeting framework.

In comparison with the budgeted results included in the Portfolio Additional Estimates Statements, the actual net surplus of $46.370 million is compared with the budgeted amount of $31.892 million. The major variance relates to the abnormal item of $25.407 million caused by the buildings transfer mentioned above.

The major change from 1998 - 99 is the transfer of $25.407 million for the National Science and Technology Centre and ScreenSound Australia buildings, increasing total assets and equity in the Departmental Balance Sheet.

This item, along with the repayment of a loan, explains the major variance to the budgeted Balance Sheet included in the Portfolio Additional Estimates Statements.

Cash balances increased from $3.652 million in 1998 - 99 to $34.021 million resulting from devolving banking responsibilities to departments, as part of the accrual budgeting reforms.

Cash at 30 June 2000 is represented by unspent appropriations to be expended in 2000 - 01, along with amounts for provisions and payables.

The unspent appropriations explain the major variance to the budgeted Cash Flow Statement included in the Portfolio Additional Estimates Statements.

Administered Operating Statement

The Administered net surplus/deficit is not a reliable indication of year-on-year performance, as timing issues affect the Administered items.

Summary of major items of significance:

• dividend income increased to $2 902.875 million from $666.048 million as a result of increased Telstra and Australia Post dividends;
• spectrum sale proceeds of $1 359.987 million;
• grants reduced to $376.717 million from $1 086.776 million as a result of the devolved banking arrangements where bodies such as the ABC and the SBS were funded directly in 1999 - 2000;
• an abnormal expense item was included, due the transfer of the National Science and Technology Centre building into the Department in the sum of $20.815 million; and
• transfers to Official Public Account increased to $4 666.940 million from
  $1 896.068 million mainly as a result of the dividend and spectrum sale proceeds noted above.

In comparison with the budgeted results included in the Portfolio Additional Estimates Statements, the major variances relate to the dividend revenue, spectrum sale proceeds and the abnormal item of $20.815 million relating to the National Science and Technology Centre building.

Administered Balance Sheet

The major item is the reduction in investments to $6 654.550 million from
$8,762.331 million as a result of the second partial sale of Telstra.

Land and buildings increased to $110.824 million from $68.765 million as a result of expenditure incurred in developing the National Museum of Australia and refurbishing Old Parliament House, offset by the transfer of the National Science and Technology Centre building to the Departmental Balance Sheet.

The budgeted Balance Sheet reported in the Portfolio Additional Estimates Statements excludes values for Telstra and Australia Post investments under instructions from the Department of Finance and Administration.

Administered Cash Flow

The cash flows reflect transfers to and from accounts maintained by the Department of Finance and Administration. As a result of these arrangements, the Department holds minimal cash balances.