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• Australian Government responses to the Clarke Inquiry and other counter-terrorism reviews - December 2008

Annual Report 2001-02 Overview

Attorney-General's Department

Table of Contents

Readers' Guide

Secretary's Review

Portfolio Overview

Departmental Overview

Role

Outcomes ad Outputs Structure

Organisation structure

Division and Office functional responsibilities

Civil Justice and Legal Services Group

Criminal Justice and Security Group

Information and Knowledge Services Group

Corporate Services

Management and Accountability

Corporate governance

The Governance framework

The Executive

Audit Committee

The Accountability framework - Integrated performance management

Establishment and maintenance of appropriate ethical standards

External scrutiny

Risk management

Business continuity management

Service charters

Corrections to material contained in previous annual report

Financial management

Analysis of financial performance

Competitive tendering and contracting

Consultancy services

Advertising and market research

Discretionary grants

Purchasing

Assets management

Human resource management

Staff profile

Workforce planning, staffing retention and turnover

Staff recognition

Workplace diversity

Occupational health and safety

Certified Agreement and Australian Workplace Agreements

Performance pay

Training and development

Productivity

Continuous improvement

Review of corporate support functions

Information technology outsourcing

Management information systems

Commonwealth Disability Strategy

Ecologically sustainable development and environmental performance

Social Justice

Report on Performance

Outcome 1- An equitable and accessible system of federal civil justice

Resource Summary

Performance Report - Administered items

Performance Report - Departmental outputs

Output 1.1 - Legal services and policy advice on courts and tribunals, alternative dispute resolution, administrative law, human rights, evidence and procedure

Output 1.2- Support for the Attorney-General as First Law Officer and advice on constitutional policy and the promotion of Australian legal services internationally

Output 1.3- Legal services and policy advice on family law and legal assistance and the administration of Government programs providing legal assistance and family law related services

Output 1.4- Legal services and policy advice on international law

Output 1.5- Drafting of legislative and other instruments, publication of legislative materials and provision of related legal services

Output 1.6- Legal services and policy advice on information law

Output 1.7 - Legal services and policy advice on native title

Outcome 2- Coordinated federal criminal justice, security and emergency management activity, for a safer Australia

Resource Summary

Performance Report - Administered items

Performance Report - Departmental outputs

Output 2.1 - Policy advice on, and program administration and regulatory activities associated with, the Commonwealth's domestic and international responsibilities for criminal justice and crime prevention, and meeting Australia's obligations in relation to extradition and mutual assistance

Output 2.2- Legal services and policy advice on security law

Output 2.3 - Provide national leadership in the development of emergency management measures to reduce risk to communities and manage the consequences of disasters

Output 2.4 - Development and promotion of protective security policy, advice and common standards and practices, and the coordination of protective security services, including counter-terrorism and dignitary protection

Output 2.5 - Management and coordination of the delivery of security and guarding services to meet diplomatic, consular and other Commonwealth responsibilities

Output 2.6- Provision of protective security services

Output 2.7- Facilitation of the delivery of high quality national policing information services

Appendixes

1. Reporting arrangements for other elements in the Attorney-General's portfolio

2. Map showing changes to Attorney-General's Department outcomes-outputs structure

3. Freedom of Information matters

4. External scrutiny

5.Service charters

6.Consultancy services

7.Advertising and market research

8.Staffing profile

9.Staff achievements

10.Occupational health and safety

11.Commonwealth Disability Strategy

13.Extradition, mutual assistance and Criminal Justice Certificates

Financial Statements

Attorney-General's Department Consolidated Statements

Australian Protective Service Trust Account

CrimTrac Financial Statements

Abbreviations

Compliance index

Alphabetical index

READERS' GUIDE

The Secretary's Review provides a summary of significant events and achievements of the Department for the reporting period. Information on the role and functions of the Department is contained in the Departmental Overview, which also covers key aspects of management and administration.

Readers seeking further information on the role of the Department are directed to the statement made under Section 8 of the Freedom of Information Act 1982 that appears at Appendix 3. The Freedom of Information Section 8 Statement sets out the functions and powers exercised by the various departmental elements, legislation administered and categories of documents held.

Further information about the Department can be obtained from the Attorney-General's Department homepage accessed through Australian Law Online at http://www.ag.gov.au .

Broadly, the report comprises three parts.

Part 1 contains:

• the Secretary's Review

• introductory information and overview statements

• corporate governance and other management and accountability information

• the report of performance against agreed performance measures

• abbreviations.

Part 2 (the shaded section) comprises the appendixes.

Part 3 contains the financial statements and the index.

Performance is reported against the framework of planned outcomes and related outputs published in the Portfolio Budget Statements (PBS) for the corresponding period. Variations to administrative arrangements implemented during the reporting period necessitated changes to the outcomes and outputs framework shown in the 2001-02 PBS. A chart detailing those changes appears at Appendix 2.

Further information about the annual report can be obtained by contacting the Director, Corporate Performance and Coordination Section, Attorney-General's Department, Robert Garran Offices, National Circuit, Barton ACT 2600. Telephone number: (02) 6250 6162; fax number: (02) 6250 5948. Email: barry.jeffress@ag.gov.au .

As soon as practicable after tabling in Parliament, the annual report will be accessible on the Department's homepage.

SECRETARY'S REVIEW

The terrorist attack in the United States on 11 September 2001 had an immediate and continuing impact on the Attorney-General's Department, as national security is one of this Department's responsibilities. Its repercussions dominated the Department's work in 2001-02.

The Protective Security Coordination Centre Watch Office was activated in the early hours of 12 September and has operated between 24 and 16 hours a day since then, depending on the prevailing threat level.

The Public Affairs Unit provided continuous media coverage from the Watch Office and officers from other divisions volunteered for shifts to support PSCC staff throughout those extended hours of operation.

Our existing counter-terrorism arrangements worked well on 12 September and the following days but, like many other countries, we immediately reviewed our counter-terrorism arrangements. The review, which was chaired by the Attorney-General's Department, was undertaken by a committee of senior representatives from all key Commonwealth agencies.

Review of Australia's Counter-terrorism arrangements

The review resulted in four recommendations to Government.

The first recommendation was for an immediate increase in resources for the Australian Security Intelligence Organisation, the Protective Security Coordination Centre and the Australian Federal Police, which had to meet much greater operational demands than before.

There were recommendations to rewrite our national counter-terrorism plan (in cooperation with the States and Territories) and to consolidate some activities to achieve a better coordinated response from Government. As a result, the Australian Protective Service (at that time, a division of this Department) was merged with the AFP on 1 July 2002. Emergency Management Australia was transferred to this Department from the Department of Defence in last November's Administrative Arrangements Order.

Thirdly, the review made recommendations about a number of practical, longer term measures for more effective screening of people and goods to better protect our borders.

Finally, the review proposed strengthening Australia's terrorism laws.

Most of these recommendations were accepted by Government and many of them have already been implemented.

Counter-terrorism legislation

The counter-terrorism legislation was a major policy and legislative task for this Department in 2001-02. The package of legislation comprised:

• the Security Legislation Amendment (Terrorism) Act 2002 creating a new offence of terrorism and offences relating to membership and other specified links with a terrorist organisation

• the Suppression of the Financing of Terrorism Act 2002 which implements obligations under United Nations Security Council Resolution 1373 and the International Convention for the Suppression of the Financing of Terrorism

• the Criminal Code Amendment (Suppression of Terrorist Bombings) Act 2002 making it an offence to place bombs or other lethal devices in prescribed places with the intention of causing death or serious harm or causing extensive destruction which would cause major economic loss

• the Telecommunications Interception Legislation Amendment Act 2002 specifying offences involving terrorism as falling within the most serious class of offences for which interception warrants are available

• the Border Security Legislation Amendment Act 2002 deals with border surveillance, the movement of people, the movement of goods and the controls the Australian Customs Service has in place to monitor this activity, and

• the Criminal Code Amendment (Anti-Hoax and Other Measures) Act 2002 establishes new offences directed at the use of postal and similar services to perpetrate hoaxes, make threats and send dangerous articles.

These six Acts were passed by 30 June 2002.

The final Bill proposed in response to September 11 will give ASIO the tools to gather important intelligence in relation to terrorism and prevent terrorist attacks. That Bill had not been enacted by the end of the year.

Air security officers

In addition to these responses, the Government announced late last year that it would introduce air security officers as an extra protection for civil aviation. The Australian Protective Service immediately recruited and trained officers for this new role. They commenced flying on domestic flights on 31 December 2001 and will operate on international flights as soon as the necessary arrangements are made.

The Australian Protective Service worked very closely with Qantas and Virgin Blue to develop air security officer procedures.

Commonwealth Heads of Government Meeting

The CHOGM planned for October 2002 in Queensland was postponed following the tragic events of 11 September. The meeting was subsequently held at Coolum in March 2003 under extremely strict security.

This Department contributed to the success of the meeting, providing legal advice, protective security and information technology and media management services.

Budget support 2002-03

The extent of the Government's commitment to initiatives to strengthen Australia's counter-terrorism preparedness and capability can be seen in the support they received in the 2002-03 Budget. Many of the new initiatives involve the Attorney-General's Department or agencies within the Attorney's Portfolio.

Critical infrastructure protection

The issue of critical infrastructure protection was considered as part of our overall response to September 11, although it was already on our agenda as a pressing issue in any event.

The Government recognises how much Australia - like other developed countries - relies on its critical infrastructure. That infrastructure includes important buildings and physical resources as well as the interconnected computer systems that drive our economy.

In March 2002, the Department and the National Office for the Information Economy convened a conference of leaders from business, utilities, industry associations and State and Territory Governments - the Business/Government Task Force on Critical Infrastructure - to determine what needs to be done in this area.

The task force made six recommendations directed at developing an improved national approach to protecting our critical infrastructure.

Those recommendations are being implemented now as the first step in what is a massive task to protect ourselves against all possible areas of significant risk.

One of the Department's senior officers chaired an OECD committee that prepared policy guidelines on information security in a n etworked society. This work was accelerated in the wake of the US terrorist attack. The new guidelines, entitled OECD Guidelines for the Security of Information Systems and Networks: Towards a Culture of Security, replace the OECD's 1992 Security Guidelines.

Leaders' Summit

The Leaders' Summit was another important part of the response to the new security challenges since September 11.

The Prime Minister convened a summit of State and Territory leaders in Canberra on 5 April this year. The leaders reached agreement on a number of important proposals to improve our national capacity to deal with terrorism and multi-jurisdictional crime.

This Department conducted the preparatory negotiations and meetings with State and Territory officials in preparation for the summit. It is also primarily responsible for the implementation of the summit agreements.

National terrorist situations

A key agreement was that the Commonwealth would have the lead responsibility for 'national terrorist situations' after consulting with and seeking the agreement of affected States and Territories.

A national terrorist situation includes attacks on Commonwealth targets, multi-jurisdictional attacks, threats against civil aviation and attacks involving chemical, biological, radiological and nuclear materials.

These new arrangements are to be set out in an inter-governmental agreement. They include an agreement by the States to refer power to the Commonwealth to absolutely guarantee the constitutional basis of the Commonwealth's new terrorist offences.

The practical outcome will be that the Prime Minister and the National Security Committee of Cabinet will have central roles to play in managing any national security incident in future.

Australian Crime Commission

Another outcome of the Leaders' Summit was an agreement to replace the National Crime Authority with an Australian Crime Commission from 1 January 2003.

The ACC will have a strong emphasis on developing national strategic criminal intelligence which could have benefits in relation to terrorist as well as criminal activity. To further this objective, the Australian Bureau of Criminal Intelligence and the Office of Strategic Crime Assessments will become part of the ACC on its establishment.

The Board of the ACC will comprise all Australian police commissioners and the heads of four Commonwealth agencies: ASIO, the Australian Securities and Investments Commission, the Australian Customs Service and the Attorney-General's Department.

Improved national police powers

At the summit, leaders also agreed on some significant initiatives to improve the way in which we deal with multi-jurisdictional crime - a particular problem in a federation, where many law enforcement powers are vested in the States and stop at their borders.

These agreements include practical measures to reform the laws relating to money laundering, to introduce a national set of powers for cross border investigations (including controlled operations) and to improve forensic procedures.

MV Tampa

Earlier in the year, the Department's Office of International Law provided legal advice to the Attorney and the Government throughout the incident involving the Norwegian container ship, the MV Tampa.

The Tampa rescued over 400 people who were seeking to enter Australia without authorisation when their boat sank. Contrary to directions, the captain brought his vessel to the Territory of Christmas Island at the insistence of the rescuees, instead of proceeding to the Indonesian port of Merak.

The captain was directed not to enter Australian waters. When he ignored that order, the Australian Defence Force took control of the ship. The rescuees were placed on board an Australian naval vessel and eventually transferred to Nauru for processing of their refugee claims.

The Solicitor-General, David Bennett QC, represented the Commonwealth in the legal action brought in the Federal Court of Australia as a result of these events.

Other significant developments

Despite the domination of these security issues, there were many other developments during the year. They are recorded in detail in the body of this report, but the following matters deserve particular mention.

Royal commissions

The Department provided administrative support to the HIH Royal Commission and the Royal Commission into the Building and Construction Industry. That support covered areas such as the engagement of lawyers, providing legal assistance to people appearing before the commissions and responding to legal challenges and the first report of the BCI Royal Commission.

The responsibility for administration of royal commissions was transferred to this Department from the Department of Finance and Administration after the 2001 election.

National Judicial College of Australia

The Department helped establish the National Judicial College of Australia, which was incorporated on 16 May 2002. Chief Justice John Doyle from South Australia chairs the College board.

The Australian National University in Canberra was chosen to host the College, following a thorough selection process. The College was officially launched by the Attorney-General at ANU on 2 August 2002.

The NJCA will provide training for judges and magistrates from all Australian jurisdictions and is expected to commence operation early in 2003.

Disability standards

A lot of progress was made during the year in developing disability standards for accessible public transport under the Disability Discrimination Act 1992.

The standards are intended to provide greater clarity and certainty about the Act's requirements for public transport operators and for people with disabilities. They should reduce the need for litigation to resolve difficulties in applying the general provisions of the Act to specific transport issues.

The Department worked closely with a consultative group throughout the development of the standards and amendments to the Act.

Cooperative legislation schemes

The Office of Legal Services Coordination provided assistance to the Attorney-General in the Commonwealth's continuing response to the High Court's constitutional decisions on cooperative legislative schemes in Re Wakim (1999) and Hughes (2000).

Family law

The Attorney-General and the Minister for Family and Community Services launched the report of the Family Law Pathways Advisory Group, Out of the Maze - Pathways to the future for families experiencing separation in August 2001. Since then, the Family Law and Legal Assistance Division has been working with other agencies and consulting stakeholders on the development of the Government's response to the report.

In the past year, 39 regional projects have resulted in enhanced primary dispute resolution services in 33 high need areas. Seven community-based conciliation services have been established in metropolitan areas to replace voluntary mediation in six major Family Court registries.

In addition, the Department provided funding to State and Territory legal aid commissions to expand primary dispute resolution services provided by the commissions for their clients.

These initiatives are directed to one of the Government's key priorities - to keep families out of the courts where possible and to ensure that separating families are provided with support that best meets their needs.

International conventions

The Office of International Law drafted Australia's new declarations concerning its acceptance of the jurisdiction of the International Court of Justice and accepting the Court and the International Tribunal for the Law of the Sea as forums for dispute settlement under the United Nations Convention on the Law of the Sea.

Officers from the Office of International Law were members of the Australian delegation negotiating the Timor Sea Treaty. They provided extensive legal advice on issues that arose during the course of those negotiations.

Law and justice portal

A law and justice portal is being developed by the Information and Knowledge Services Group. The portal will allow users accessing the website to transparently search and browse information on a number of Australian legal Internet sites, including Commonwealth court and tribunal websites. This project is part of the Government Online strategy.

Privacy

The Information and Security Law Division held a conference in Melbourne in August 2001 to assist business to prepare for the commencement of the Privacy Amendment (Private Sector) Act 2000 on 21 December. From that date, private sector organisations with an annual turnover of over $3 million and those that provide a health service and hold health information became subject to the National Privacy Principles in the Privacy Act.

Native title

In line with the Government's priority of resolving native title matters by agreement, the Department has been working to promote the use of Indigenous Land Use Agreements and consent determinations rather than litigation.

The Department provided guidance and assistance on land use agreement processes to Commonwealth agencies. It was also directly involved in the negotiation of a number of those agreements.

To facilitate the Commonwealth's involvement in negotiating consent determinations of native title, the Department advised the Attorney-General on consent determination principles which would promote certainty for all parties, consistency with the common law, compliance with the provisions of the Native Title Act 1993 and transparency.

The Department advised the Attorney-General on modifications to the conditions for the offer of financial assistance for native title compensation to the States and Territories to provide greater flexibility.

Criminal law

The Criminal Justice Division managed a large legislative program during the year which dealt with people smuggling, terrorist financing and international money laundering, cybercrime and other measures to combat serious and organised crime.

The Division also supported the Attorney-General in the debate to attain Australia's ratification of the Statute of the International Criminal Court.

Emergency management

Emergency Management Australia played an integral role in the response to the bushfires that ravaged the ACT and NSW over the 2001 Christmas holiday period. EMA coordinated Commonwealth assistance provided by the Australian Defence Force, including helicopter support, helicopter refuelling support and access to ADF bases for firefighters and evacuees.

Technology

The Department continued to enhance its information technology during the year.

The Information and Knowledge Services Group is implementing a program to update the Department's information management infrastructure, including replacement of the existing records management and ministerial support systems. The new structure will provide these key functions:

• electronic document management

• widely available, comprehensive information search and retrieval

• integrated support for collaboration and workflow

• web content management

• applications development support, and

• web-enabled access to all of the Department's functions.

The Department installed the Aurion software application for payroll and human resources information to better manage its personnel data.

Archives

The Department was the first department to complete a project using the National Archives' new DIRKS methodology.

That project has created a solid base for the Department's future record keeping and produced a records disposal authority that sets out the arrangements for the retention of records that date from the Department's commencement on Federation in 1901 to the present.

Legislative drafting

The Office of Legislative Drafting completed some significant drafting tasks during the year. They included the Family Law Superannuation Regulations 2001 and amendments to the Superannuation Industry (Supervision) Regulations 1994 and the Retirement Savings Accounts Regulations 1997 relating to payment splits under the Family Law Act 1975.

The Office also finalised detailed instruments under the Social Security Act 1991 and the Veterans' Entitlements Act 1986 setting out extensive new means testing criteria and formulas.

Certified agreement

Another very pleasing outcome during the year was the finalisation of the Department's new, two-year certified agreement under section 170LK of the Workplace Relations Act 1996. The existing agreement nominally expired on 30 June 2002.

Of the 495 votes cast by staff members, 441 (or 89 per cent) were in favour of the proposed agreement. This very positive endorsement by staff reflects credit on the efforts made by members of the Workplace Relations Committee and the Department's Human Resources Branch to develop a fair and attractive package of terms and conditions.

The agreement was certified by the Australian Industrial Relations Committee on 4 July 2002. Payment of the new rates of pay commenced on 18 July 2002 with effect from 1 July 2002.

Thanks

This year's extraordinary events placed extraordinary demands on the staff of the Department. All of its officers have responded willingly and well. This annual report sets out a record of achievement of which they can justly be proud.

ROBERT CORNALL
Secretary
Attorney-General's Department

PORTFOLIO OVERVIEW

Portfolio Ministers

cThe Honourable Daryl Williams AM QC MP

Attorney-General

Senator the Honourable Chris Ellison

Minister for Justice and Customs

Portfolio structure

The Attorney-General's Department is the central policy and coordinating element of the portfolio. The portfolio also includes the statutory office of the Solicitor-General, Second Law Officer of the Commonwealth (the Attorney-General being the First Law Officer). The Attorney-General and Minister for Justice and Customs have a range of responsibilities. They include responsibility for the following bodies that are grouped by subject matter or function for ease of reference:

Administrative law

Administrative Review Council

Bankruptcy

Insolvency and Trustee Service Australia

Censorship

Office of Film and Literature Classification
Classification Board

Courts and tribunals

High Court of Australia
Federal Court of Australia
Family Court of Australia
Federal Magistrates Service
Administrative Appeals Tribunal
Copyright Tribunal
Defence Force Discipline Appeal Tribunal
Federal Police Disciplinary Tribunal
National Native Title Tribunal

Common Police Services

Australian Bureau of Criminal Intelligence
Australasian Centre for Policing Research
Australian Institute of Police Management
CrimTrac
National Crime Statistics Unit
National Institute of Forensic Science

Criminal law and law enforcement

Australian Federal Police
Australian Transaction Reports and Analysis Centre
Australian Institute of Criminology
Commonwealth Law Enforcement Board
Criminology Research Council
National Crime Authority
Office of the Director of Public Prosecutions

Customs

Australian Customs Service

Drafting and other legislative services

Office of Parliamentary Counsel

Human rights

Human Rights and Equal Opportunity Commission

Law reform

Australian Law Reform Commission

Legal services

Australian Government Solicitor

Marriage and family law

Family Law Council

National security, counter-terrorism and protective security policy and coordination

Australian Security Intelligence Organisation
Standing Advisory Committee on Commonwealth-State Cooperation for Protection Against Violence

Privacy

Office of the Federal Privacy Commissioner

Annual reporting requirements and arrangements for portfolio elements not covered by this report are set out at Appendix 1.

DEPARTMENTAL OVERVIEW

MANAGEMENT AND ACCOUNTABILITY

Corporate governance

Corporate governance refers to the processes by which organisations are directed, controlled and held to account. It encompasses authority, accountability, leadership, direction and control exercised in the organisation.

The Governance framework

The Executive

The departmental Executive, comprising the Secretary, four General Managers, the Executive Adviser and an Executive member, sets strategic direction and maintains a general oversight of performance. The Executive considers and decides on matters of corporate and governmental significance subject to any specific legal obligations imposed on the Secretary.

Executive appointments

Mr Robert Cornall, Secretary. Appointed 24 January 2000.
Mr Ian Govey, General Manager, Civil Justice and Legal Services. Appointed 17 May 2000.
Mr Ian Carnell, General Manager, Criminal Justice and Security. Appointed 17 May 2000.
Mr Peter LeRoy, General Manager, Information and Knowledge Services. Appointed 19 June 2000.
Mr Richard Oliver, General Manager, Corporate Services. Appointed 29 July 2002.
Mr Geoff Hine, General Manager, Corporate Services. Appointed 4 December 1997. Resigned 5 May 2002.

Mr Mike Fish, Acting General Manager, Corporate Services. 6 May 2002 to 28 July 2002.

Mr Geoffrey Dabb, Executive Adviser. Appointed 17 May 2000. Retired 11 January 2002.
Dr James Popple, Executive Adviser. Appointed 3 September 2001.

Ms Philippa Lynch, Executive Member. 5 March 2001 to 29 August 2001.

Ms Helen Daniels, Executive Member. 3 September 2001 to 30 April 2002.

Ms Sandra Power, Executive Member. From 14 May 2002.

Audit Committee

The Attorney-General's Department Audit Committee is appointed by and is responsible to the Secretary for the provision of advice relating to:

• the departmental system of internal control;

• management of financial risk;

• review of financial reporting;

• control of public money and assets;

• regulatory compliance.

The Audit Committee comprises a Chair who is external to the Department and three members, one of whom is external to the Department. In addition there is a standing invitation to the Australian National Audit Office (ANAO) to observe Committee meetings. The Secretary may attend meetings as an observer and, at the discretion of the Chair, the Department's Chief Financial Officer is invited to appear before the Committee.

Activities of the Audit Committee

The Audit Committee convened on five occasions during the financial year and the Secretary was present at three of those meetings. Its actions and deliberations included:

• consideration of the departmental fraud risk assessment;

• review of a risk-based assessment of future audit coverage;

• the review of audit reports where appropriate, including the identification and dissemination of information relating to good practice;

• where relevant, the provision of advice to the Secretary on follow up action to be taken on matters raised in a report of the internal auditors or in any external report concerning the Agency;

• consideration of internal audit coverage provided by Audit and Evaluation in annual and strategic work programs on a risk assessment basis;

• provision of advice to the Secretary on the preparation and review of the departmental Financial Statements;

• overseeing the coordination of audit programs conducted by internal auditors and the programs conducted by the ANAO.

From 1 July 2002, the audit and evaluation function will be performed by Deloitte Touche Tohmatsu under an outsourced arrangement, overseen by the Audit Committee.

Accountability framework - integrated performance management

The Department has adopted an integrated approach to performance management that combines planning, accountability, reporting and evaluation activity. The model links individual performance with corporate goals, and incorporates a regime of performance review from the level of individual staff members through to broad organisational elements.

The Department's budgeting, accountability and reporting mechanisms are aligned to the Government's accrual-based budgeting outcomes and outputs framework. The Executive and managers are supported by financial and human resource management systems and Ministerial and Parliamentary support systems.

Strategic planning

Under the integrated performance management model, the Executive sets the broad strategic direction for the Department. The broad strategic plan is underpinned by operational plans for each organisational element within the Department that detail activities and associated resourcing and performance information. All activities and tasks identified by operational plans are ranked according to priority. Each is related to an output within the outcomes and outputs framework. Area workplans, subordinate to the operational plans, are developed as appropriate.

Links to individual performance

Individual performance agreements are linked to the operational plan or area workplan performance targets. Individual performance is reviewed biannually against the performance agreement as part of the Program for Performance Improvement.

Performance review

Performance reviews are conducted biannually by the departmental Executive. These reviews focus on organisational performance against operational plan performance measures or, in relation to routine activities, departmental performance standards.

Performance information and reporting

The strategic direction is reflected in the Department's Statement in the Portfolio Budget Statements, which follows the accrual-based budgeting outcomes and outputs framework. In addition to detailing appropriations, the Portfolio Budget Statements contain performance information for each item of administered expenditure and each output within the framework. The annual report outlines performance against measures contained in the Portfolio Budget Statements.

The departmental annual report complies with the Requirements for Annual Reportsfor Departments, Executive Agencies and FMA Act Bodies issued by the Department of the Prime Minister and Cabinet and approved by the Joint Committee of Public Accounts and Audit. A separate compliance index identifies the location in this report of the information specified in the Requirements.

Establishment and maintenance of appropriate ethical standards

The Department's Certified Agreement and Australian Workplace Agreements contain a commitment from employees to uphold the Australian Public Service (APS) Values and to comply with the Code of Conduct.

In addition, the Department has taken a number of steps to establish and maintain appropriate ethical standards and to incorporate openness, transparency and accountability into its corporate governance.

The APS Values and Code of Conduct contained in the Public Service Act 1999 and Public Service Commissioner Directions made under the Act apply to all employees of the Attorney-General's Department and articulate the operating ethos of the Australian Public Service and the standards of behaviour and conduct expected of employees of the Australian Public Service.

The Secretary has established formal procedures for determining breaches of the Code of Conduct as required by s.15(3) of the Act. Procedures for dealing with 'whistleblowers' reports, required to be established by the Agency Head by Public Service Regulation 2.4, have also been developed.

The Chief Executive's Instructions under the Financial Management and Accountability Act 1997 were reviewed during the year and apply to all employees. The Instructions detail, among other things, departmental arrangements for ensuring the proper use and management of public money, public property and other resources of the Commonwealth, and the proper accountability for the use and management of these resources.

Because the Public Service Act 1999 does not contain the high level of prescription that applied under the former Public Service Act in respect of issues related to the management of suspected misconduct, the Department has developed a comprehensive policy and procedures document, Managing AGD Employee Conduct and Whistleblower Reports. The document sets out the legislative requirements and procedures to be followed when determining whether an employee has breached the Code of Conduct, and provides detailed guidance and advice on managing the process. This document also refers to, and makes available to employees, the Australian Public Service Commission (APSC) publication Guidelines on Official Conduct of Australian Public Servants.

All people who are to become employees of the Department are provided with a copy of the APS Values and Code of Conduct and elements of the Crimes Act 1914, and are required to sign a statement to the effect that they have read and understand these provisions before commencing employment with the Department.

The APS Values, Code of Conduct, Chief Executive's Instructions and other material relevant to ethical conduct are incorporated, as appropriate, into relevant departmental policies, guidelines and instructions.

The Department, in recognition of the fact that there is an increasing number of employees involved in contract management, or who are working alongside outsourced providers, has reviewed its policy concerning the acceptance of gifts and benefits to provide further guidance and instructions to employees in relation to this issue.

External scrutiny

The Department also works within a strong accountability framework, which includes Parliamentary scrutiny primarily through various parliamentary committees. It also includes:

• external audit by the Australian National Audit Office;

• the Administrative Decisions (Judicial Review) Act 1977;

• the Freedom of Information Act 1982;

• the Ombudsman Act 1976;

• the Review of Actions provisions of the Public Service Act 1999 (in respect of actions taken concerning departmental employees).

In addition, the Department's service charter articulates the nature and level of services provided to its clients and provides a reference point against which those clients can comment on organisational performance.

The Auditor-General issued no reports that were specific to the Department (other than the report on financial statements) in 2001-02. Further information on external scrutiny activity appears at Appendix 4.

Risk management

Following development, agreement and promulgation of the Department's risk management policy last year, work at the strategic level has continued during the reporting period. This has concentrated on further refinement of strategic risks and analysis of their potential impact on critical business operations.

Formal training programs were developed and conducted that informed Senior Executive Service and relevant Executive level staff about the theory and practice of risk management. This training initiative will continue in the coming reporting period with an emphasis on the practical application of risk management techniques. Introductory training for all staff will be completed in the coming year.

An examination of the Department's professional indemnity insurance cover was conducted toward the latter part of the period and a decision on the optimum level of coverage, based on the results of the risk analysis conducted, will be made early in the coming reporting period.

Business continuity management

Business continuity management, which is designed to maintain critical departmental operations should a disaster or major disruption arise, is an integral element of the Department's corporate governance and risk management framework. The Department's business continuity strategy encompasses:

• identified business critical functions and the essential resources required to support their delivery;

• a contingency coordination centre to be activated in the event of a disaster or disruption to coordinate the recovery of business critical activities and return to normal operations;

• contingency plans for the maintenance of key business services.

• The business continuity strategy was subject to ongoing review and updating during the reporting period including the development of revised contingency planning templates and guidelines for staff.

Service charters

The Attorney-General's Department Service Charter outlines the Department's commitment to providing quality service in its dealings with clients. The Charter is supplemented by charters covering the activities of the International Family Law Section of the Family Law and Legal Assistance Division and the Trade Measures Review Secretariat. The Service Charter also refers clients to information about how to make complaints or comment on performance. Although the Department's complaints handling policy covers all departmental areas, the Australian Protective Service has in place additional instructions which take into account its specific role and client dealings. The Department's Service Charter is available on the Attorney-General's Department website www.ag.gov.au. A report of service charter operations, which includes details of complaints and comments received and addressed by the Department, is at Appendix 5.

Corrections to material contained in previous annual report

Departmental areas were consulted to ascertain whether the previous annual report contained any significant statement on a matter of fact that has since proved to be incorrect in a material respect. Details of identified corrections follow.

Page 92 under the heading 'Intellectual Property' - the statement -The Department represented Australia at the sixth session of the WIPO Standing Committee on Copyright and Related Rights in Geneva in May 2001' should have read 'fifth session'.

Page 191 in Appendix 6 titled 'Advertising and Market Research' - the entry for 'Tall Poppies Research' for the 'Evaluation and focus group testing of burglary prevention material' at a cost of '$44 311' is the total of two other entries, and is therefore a duplication of information.

Page 192 in Appendix 7 titled 'Discretionary Grants Program' - it was reported that discretionary grants had been made to the following organisations:

• Communications Law Centre;

• Victorian Court Support Network;

• Rural Community Legal Service;

• University of Canberra.

The payments made to the above organisations were not discretionary grants within the specified criteria for reporting in the annual report.

Financial Management

Analysis of financial performance

Section 57 of the Financial Management and Accountability Act 1997 (the FMA Act) requires a copy of the audited financial statements and the Auditor-General's report to be included in each departmental annual report tabled in Parliament. The financial statements at page 235 have been prepared on an accrual basis in accordance with Australian Accounting Standards.

The Department, as a consolidated entity for financial reporting purposes, comprises the core department, the Australian Protective Service and CrimTrac. The Australian Protective Service and CrimTrac prepared separate audited financial statements for 2001-02. Transactions between the core department, the Australian Protective Service and CrimTrac are eliminated on consolidation.

Performance is reported separately for administered items and departmental outputs. Administered items are those items that are controlled by the Government and managed by the Department on behalf of the Government. These items include grants, subsidies, fees, fines and loans to other governments and related payments. Departmental outputs are the goods and services that the Department provides for, or on behalf of, the Government.

The major external events affecting the Department's financial operations in 2001-02 were the transfer of Emergency Management Australia and royal commissions to the Department, and the Government's response to the 11 September 2001 terrorist attacks in the United States. These events resulted in increased appropriation and other revenues in the Department and associated increases in expenses in comparison to the previous financial year.

Departmental outputs

In 2001-02, departmental output revenues rose by $89.9 million, or 51 per cent, to $265.7 million and expenses increased by $36.9 million, or 23 per cent, to $198.4 million. The operating surplus from ordinary activities was $67.3 million compared to an operating surplus of $14.4 million for the previous financial year.

The major factors resulting in increases in revenues in 2001-02 in comparison to the previous financial year were:

• additional counter-terrorism appropriation funding of $29.2 million;

• appropriations deferred from 2000-01 totalling $22.7 million primarily in relation to CrimTrac and the National Crime Prevention program;

• the last year of CrimTrac funding of $10 million;

• the transfer of EMA to the Department resulting in an increase in appropriation revenue of
  $9 million;

• an increase in sales of goods and services revenue in the Australian Protective Service and CrimTrac totalling $11.7 million (after intra-departmental eliminations);

• an increase of $7.3 million in interest and other revenues due primarily to bringing to account internally developed software for the first time.

• The major one-off factors contributing to the operating surplus were:

• deferrals of expenditures on major programs in the core Department totalling $32.2 million (primarily in relation to CrimTrac and the National Crime Prevention program);

• unavoidable delays in recruiting and training officers for the implementation of the Government's enhanced aviation security initiatives resulting in an underspend of some $11.5 million;

• bringing to account internally developed software for the first time totalling $16.2 million.

As at 30 June 2002, the Department's net assets were $115.3 million compared to $41.4 million at 30 June 2001. The increase of $73.9 million was due to the operating surplus in 2001-02, revaluation of assets and the transfer of assets to the Department for EMA.

Administered expenses

Administered expenses in 2001-02 were $292.5 million compared to $224.9 million for the previous financial year. The major factor contributing to the increase in expenses in 2001-02 was the transfer of the Royal Commissions to the Department.

Events occurring after balance date

On 30 June 2002, the Australian Protective Service became a statutory agency headed by the Australian Federal Police Commissioner. In addition, on 1 July 2002, CrimTrac was established as a prescribed agency under the FMA Act.

Competitive tendering and contracting

Requests for Tender for the provision of internal audit services were released in early 2002 and resulted in the receipt and evaluation of seven tenders.

A contract was negotiated with the successful tenderer, Deloitte Touche Tohmatsu, to commence delivery of the services on 1 July 2002. The contract covers the next three years to 30 June 2005, with two options to extend for one year each. The total cost of providing the internal audit service under an outsourced arrangement will be comparable to the cost of the in-house service. However, the awarding of the contract will facilitate access to a wider skill-base than could be achieved in-house and provide access to professional advice on an as-required basis.

Tenders were sought for banking and related services and contracts were let in April 2002 with the Reserve Bank of Australia for transactional banking services and the Commonwealth Bank for provision of credit cards and merchant facilities.

Consultancy services

Consultancy services are one particular type of service delivered under a contract for services, and are distinguished from other contracts for services by the nature of the work performed. The Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies defines a consultant as an entity, whether an individual, a partnership or a corporation, engaged to provide professional independent and expert advice or services. In this context the consultancy services would involve the application of expert professional skills to investigate or diagnose a defined issue or problem; carry out defined research, reviews or evaluations; or provide independent advice, information or creative solutions to assist the Department in management decision-making. Consultancy services do not include fees paid to solicitors or counsel for legal services.

During 2001-02, the number of consultancy services contracts let by the Department was 45 and the total expenditure on consultancy services during the year was $3 770 793. This expenditure relates to continuing consultancies as well as new consultancy contracts let during the year and includes the Australian Protective Service. Further information in relation to consultancy services appears at Appendix 6. It includes a summary of the Department's policy on the selection and engagement of consultants, and details of consultancy contracts let to the value of $10 000 or more.

Advertising and market research

In addition to the requirement to disclose expenditure on consultancies, the Department is required to disclose payments to specific types of organisations under s.311A of the Commonwealth Electoral Act 1918. The categories of organisation are advertising agencies, market research organisations, polling organisations, direct mail organisations and media advertising organisations. Details of payments to media advertising organisations, market research organisations and a direct mail organisation are provided at Appendix 7.

Discretionary grants

The annual report must contain a list of discretionary grant programs administered by the Department. Discretionary grants are payments where the Portfolio Minister or paying agency has discretion in determining whether a particular applicant receives funding, and may or may not impose conditions in return for the grant. The Department has only one such program, Grants to Australian Organisations.

This year grants were made to the Australian Institute of Judicial Administration (AIJA), Red Cross and the National Committee for Human Rights Education (NCHRE). The AIJA and NCHRE contribute to achieving an equitable and accessible justice system through education and research programs, and the Red Cross disseminates information on international law to our servicemen and women as well as aid volunteers and the general public.

Purchasing

The Department undertakes a variety of purchasing activities that range in complexity and value. The Commonwealth Procurement Guidelines and Best Practice Guidance, which are reflected in the Department's Chief Executive Instructions, must be adhered to by all staff when undertaking purchasing activities. Staff involved in procurement activities now have access to an Intranet site which was specifically developed to assist staff with their responsibilities in relation to Commonwealth Procurement policy, and to provide easy reference to purchasing documentation and links.

Stores and stationery items are purchased centrally, enabling the Department to reduce costs through the bulk purchase of day-to-day stores and stationery items. In accordance with the Commonwealth Electronic Procurement Strategy, measures have been taken to maximise the efficiency of the centralised stores and stationery arrangement by entering into a single supplier arrangement and trading electronically with the preferred supplier.

Cost benefits and efficiency gains continue to be realised as a result of department-wide contracts for the provision of travel services, building maintenance, the supply of copy and laser printer paper, and the collection of recyclable waste material.

Assets management

The Department's major assets are accommodation fitout, internally developed and purchased software, library materials and the Emergency Management Australia facility in Mt Macedon, Victoria. Asset stocktakes were conducted during the year to maintain the accuracy of asset records. Assets are revalued on a three-year cycle.

Human Resource Management

Staff profile

The Department employed 1666.1 staff (full-time equivalent basis) at 30 June 2002. This represents an increase of 36.5 per cent over 30 June 2001 staffing numbers (1219.4). Tables showing a detailed breakdown of these numbers by location, broad-banded classification and gender are presented at Appendix 8. The tables also show staffing details at 30 June 2001 for comparison.

In respect of the core department (that is, excluding the Australian Protective Service) staff figures rose approximately 20 per cent to a total of 644.6 (up from 542). This was mainly because the Department acquired responsibility for the administration of royal commissions (formerly with the Department of Finance and Administration) and Emergency Management Australia (EMA) (formerly with the Department of Defence) as a consequence of machinery of government changes. If the total number of employees of EMA and the secretariats to the two current royal commissions (118) are discounted from the core department figures, staffing numbers reduced by about 3 per cent over the year. The Emergency Management Australia Institute at Mount Macedon in Victoria accounts for all staffing figures for the core department in that State.

The staff numbers for the Australian Protective Service increased dramatically in 2001-02, from 677.4 to 1021.5. This increase of 51 per cent was mainly due to the Government's strategies in response to the September 11 attacks in the United States. Those strategies involved enhancement of Australian aviation security as represented by the following initiatives:

• the Air Security Officer Program;

• increased Advanced First Response presence at 11 major airports;

• increased Explosive Detection Canine capability at selected airports.

Workforce planning, staff retention and turnover

The Department is committed to developing a workforce planning strategy within the life of its next Certified Agreement (which was approved by employees on 20 June 2002). Development of the strategy commenced in July 2002 and will have a particular emphasis on:

• integrating business and people planning activities;

• recruitment and selection;

• retention;

• succession planning;

• training;

• the ageing workforce.

The strategy will assist the Department to ensure that its workforce is appropriately skilled and capable of delivering departmental objectives and business outcomes now and in the future.

A review of workforce planning and staff retention in the Australian Protective Service was scheduled to commence in the first half of 2002. This review has been deferred because of the integration of the Australian Protective Service with the Australian Federal Police. The rescheduled review will now commence in the last half of 2002. The staffing emphasis in Australian Protective Service during 2001-02 was on recruitment, retention and re-skilling of personnel to meet the increased security requirements of Government.

Staff recognition

Through its Certified Agreement, the Department has established a rewards and recognition program that acknowledges and celebrates the outstanding efforts and contributions of employees. This year the Department adopted a policy on non-salary reward and recognition. The policy provides for several categories of award. The annual Secretary's Award recognises individuals or teams who have demonstrated excellence in achieving outcomes above and beyond general expectations. Each year the General Managers may present a General Manager's award for excellence within their Group. The Secretary also presents annual academic achievement awards to employees who excel in an approved course of study.

The non-salary reward and recognition program not only addresses the formal recognition of achievement but also the importance of giving informal feedback on performance. Recognition awards can also be given throughout the year for achievement, innovation, outstanding service or leadership or consistently high performance.

In addition, the Department will from time to time nominate employees for awards in the Australian system of honours and awards.

The recipients of awards during 2001-02 are listed at Appendix 9.

Workplace diversity

The diversity of the people in the Attorney-General's Department is one of our greatest strengths. Through workplace diversity we acknowledge that each staff member is unique, and that the Department can benefit by finding ways to recognise, value and utilise these individual differences in achieving our goals and objectives. A key element of workplace diversity is the creation of a workplace free from discrimination, harassment and bullying, where all staff act in accordance with the APS Code of Conduct and demonstrate their commitment to the APS Values. It also promotes the principles of fairness and equity for all staff.

The Workplace Diversity Program introduced for 2001-03 aims to provide staff with a better understanding of diversity concepts, and identifies the responsibilities we all have in implementing diversity principles on a day-to-day basis. The priorities for the Program are:

• building awareness and understanding of workplace diversity issues;

• improving consultation and communication within departmental groups/divisions/offices;

• improving the Department's approach to performance management and individual development;

• improving recruitment and selection processes;

• enabling employees to balance their work and per sonal lives.

The Program saw the implementation of a number of initiatives during the reporting period.

The Workplace Diversity Program requires division heads to meet with the Equity and Diversity Adviser twice a year to discuss implementation of the program. Also, the Department's Recruitment and Selection Guidelines have been extensively reviewed and will be issued in the new reporting year.

The Department's Certified Agreement 2000, and replacement Certified Agreement 2002 also have several initiatives aimed at enabling employees to balance their work and family lives. Initiatives include:

• flextime provisions;

• carer's leave provisions;

• variable leave provisions;

• home-based work policy;

• part-time work policy.

The Department's People Development Strategy (PDS) is also relevant when considering the Department's commitment to workplace diversity. The PDS is prepared each financial year to provide a range of relevant learning and development opportunities for staff. It confirms the Department's commitment to valuing people by providing an avenue to address development needs identified on a Department-wide basis. The annual revision of the PDS allows the Department to manage both organisational and staff needs as well as providing a mechanism to enhance the skills, knowledge, professionalism and client service of all staff.

The Australian Protective Service Workplace Diversity Plan commenced in July 2001, and runs to July 2003, when it will be reviewed and evaluated. Prior to July 2001, the Australian Protective Service operated under the Attorney-General's Department Workplace Diversity Plan. However, it was decided that the Australian Protective Service should have its own Workplace Diversity Plan, as the specific work requirements of the Service were significantly different to those of the Department.

The goals in the Australian Protective Service Workplace Diversity Plan 2001-2003 are to improve the environment and practices of the organisation, and focus on the following key areas:

• the elimination of all forms of harassment and discrimination within the organisation with the emphasis on zero tolerance;

• opportunities for staff to balance their work and family or personal responsibilities;

• recognition and utilisation of employee diversity;

• recruitment and selection processes based on merit, fairness and equity principles.

Occupational health and safety

The Department is committed to optimising the health and well-being of staff and to providing a safe and healthy work place. This is achieved through:

• prevention of work-related injury and illness;

• provision of access to information, training and professional support and advice on occupational health and safety issues;

• advice to managers and staff on their responsibilities for promoting a safe and healthy work environment which is free of hazards.

Further information on the Department's occupational health and safety performance, in particular details required pursuant to the Occupational Health and Safety (Commonwealth Employment) Act 1991, can be found in Appendix 10. The Australian Protective Service operated on the same basis as the Attorney-General's Department and adhered to the relevant standards within the Act.

Certified agreements and Australian Workplace Agreements

Senior Executive Service employees

All Senior Executive Service (SES) employees of the Department have their remuneration and conditions determin ed by Australian Workplace Agreements (AWAs) made under the Workplace Relations Act 1996. All AWAs are developed within the framework of, and are consistent with, the Department's SES Remuneration Policy.

The SES Remuneration Policy provides for a salary band for each SES classification level. Progress through the salary band and performance pay are linked to performance appraisal outcomes under the Department's Program for Performance Improvement. The appraisal system is based on the Australian Public Service Commission's Senior Executive Leadership Capability Framework.

In addition to salary and possible performance pay, elements of the SES remuneration package include:

• superannuation coverage under the Superannuation Act 1990 or the Superannuation Act 1976;

• access to a Commonwealth-leased privately plated vehicle, or an allowance in lieu of a vehicle, in accordance with the Attorney-General's Department Executive Vehicle Scheme Guidelines;

• free vehicle parking space at the workplace;

• access to flexible remuneration packaging on a salary sacrifice basis.

During the year, the SES Remuneration Policy was reviewed and the revised policy was implemented from July 2002 prior to a new round of AWAs being offered to SES employees.

Non-SES employees

Non-SES employees of the Department, except employees of the Australian Protective Service, were generally covered by the Attorney-General's Department Agreement 2000 (Agreement 2000), a certified agreement made under s.170LK of the Workplace Relations Act 1996.

Agreement 2000 was certified on 6 December 2000 and expired on 30 June 2002. All initiatives under the Agreement were finalised and implemented during the year, in particular, a review of workloads and flextime management, a voluntary mobility scheme and a review of the Department's reward and recognition program.

Developments regarding agreement making and impact of making agreements

Between February and June 2002, the Department undertook an extensive consultation process directly with employees to develop a replacement agreement for Agreement 2000, which expired on 30 June 2002. The proposed Agreement was circulated for employee consideration on 23 May 2002 and was accepted by a strong majority of employees-89 per cent of those who voted-on 20 June 2002. The Agreement was certified on 4 July 2002.

The key initiatives of Agreement 2002 include:

• an eight per cent pay increase over two years paid in instalments of four per cent in July 2002 and four per cent in July 2003;

• the introduction of one week's paid parental leave for employees not covered by the Maternity Leave (Commonwealth Employees) Act 1973;

• a Health and Wellbeing Program, including reimbursement of up to $100 per annum for health and wellbeing activities;

• a commitment by the parties to the implementation of a number of records and knowledge management initiatives and new information technology systems;

• an extension of the bandwidth within which ordinary hours of duty are worked by one hour to 7:30am to 7:30pm;

• a commitment to develop a workforce planning strategy;

• the introduction of a rehabilitation program to facilitate the return to work of employees who have been absent on long-term sick leave with a non-compensable illness or injury over four weeks;

• promoting environmental management by supporting initiatives that will reduce energy and goods consumption and waste generation.

The focus of Agreement 2002 will help support the needs of the Department over the next two years and provide a sound basis for future years.

Information on Certified Agreement(s) and AWAs

At the time of certification, Agreement 2000 covered approximately 700 employees (which includes employees on leave without pay, as well as paid staff). The 47 Senior Executive Service employees are covered by AWAs. A small number of non-SES employees are covered by AWAs.

The salary ranges for employees under a certified agreement and AWA are reflected in the following table.

Non-s