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

Annual Report 2002-03 - Part 1

Attorney-General's Department

table of contents

Reader's Guide

In producing this report we have endeavoured to meet our formal reporting obligations as well as inform readers of the role the Department plays to fulfil its mission of achieving a just and secure society.

Broadly, the report comprises three parts.

Part 1 contains:

. the Secretary's Review
. introductory information and overview statements for the Department and portfolio
. corporate governance and other management and accountability information, and
. the report of performance against agreed performance measures.

Part 2 (the shaded section) comprises the appendixes.

Part 3 contains the financial statements and the indexes.

The Secretary's Review highlights 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. (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.)

Performance is reported against the framework of planned outcomes and related outputs published in the 2002-03 Portfolio Additional Estimates Statements. This varied slightly from the framework published in the 2002-03 Portfolio Budget Statements. Explanations of those variations appear in the Departmental Overview and at Appendix 2.

In order to assist readers to access the report, additional features have been incorporated in the Indexes. As well as the alphabetical index and a list of abbreviations and acronyms, there is a glossary of terms and a compliance index. The compliance index shows the location in the report of the mandatory information specified by the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies (the Requirements).

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 <mailto:corpperf.coord@ag.gov.au>.

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

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SECRETARY'S REVIEW

The Australian Government's broad strategic directions are grouped under the three collective headings of national security, economic strength and social stability. The Attorney-General's Department made major contributions to the development and implementation of the Government's policies in each of those strategic groupings in 2002-03.

National security

The central role of the Attorney-General's portfolio can be seen most clearly in the area of national security.

The Department provided advice to Government on some of the most significant issues it faced during the year. Those issues included the decision to join the international coalition to disarm Iraq. The advice given by the Department's Office of International Law in conjunction with the Department of Foreign Affairs and Trade was tabled in Parliament by the Prime Minister.

The Department also advised on the decision to send police and defence forces to restore order in Solomon Islands. The Department's Office of Legislative Drafting drafted the bill which was subsequently passed by the Solomon Islands legislature authorising international intervention.

In addition to providing advice, the Department developed some key legislation during the year, such as the legislation to increase the powers of the Australian Security Intelligence Organisation to obtain intelligence about possible terrorist activity in Australia. The Australian Security Intelligence Organisation Legislation Amendment (Terrorism) Act 2003 was passed by Parliament in June 2003.

Another example was the urgent legislation introduced after the Bali bombing making it an offence to kill or injure an Australian overseas. That legislation will facilitate the extradition and trial of terrorists in Australia, if that becomes necessary. The legislation was passed within a month of the Bali bombing with effect from 1 October 2002.

The Department played a central role in negotiating the referral of constitutional power over terrorism from the States to the Commonwealth. The agreement to refer this power was one of the major outcomes of the Leaders' Summit on Terrorism and Multi-Jurisdictional Crime held in Canberra on 5 April 2002. The Department was responsible for developing the new terrorism legislation that was subsequently enacted relying on the referred power.

The Department was also responsible for policy implementation and operational activities.

One significant task of policy implementation was the establishment of the Australian Crime Commission as successor to the National Crime Authority. This was another major outcome from the Leaders' Summit. The ACC has a strengthened mandate from all Australian governments to fight serious crime and terrorism. It commenced operation on schedule on 1 January 2003.

But it is in the operational area that the Department's activities have really expanded in the heightened security environment that has existed since 11 September 2001.

The Protective Security Coordination Centre (a division of the Department) extended its Watch Office operation to 24 hours a day, seven days a week. The Watch Office is the central point of contact for the Australian Government and the States and Territories for all protective security matters.

The PSCC set up the National Security Hotline in a three week period before Christmas 2002 so it was ready to come into operation as soon as the national security public information campaign started. The PSCC organised the diplomatic guarding services provided by the Australian Government through the Australian Protective Service. It made a major contribution to the work of the National Counter-Terrorism Committee, including the preparation of a new national counter-terrorism plan.

Emergency Management Australia (which is also a division of the Department) coordinated the repatriation of Australians injured in the Bali bombing to hospitals around the nation. It also coordinated the Australian Government's participation in the response to the devastating Canberra bushfires in January 2003.

The Department's Public Affairs Unit seconded staff to the national security public information campaign. The Department's Information and Knowledge Services Group undertook the upgrade of the ASNET secure electronic network to distribute information between the agencies that make up the National Counter-Terrorism Committee.

The Department's Corporate Services Group coordinated a large cross-portfolio budget submission seeking funding for a wide range of enhanced counter-terrorism measures in 2003-04. The submission resulted in additional funding of more than $400 million over four years for the agencies included in the submission. Of that sum, more than $160 million was allocated to agencies and programs within the Attorney-General's portfolio.

On top of these activities, the Department provided advice and assistance to portfolio agencies which had vital roles in the Government's national security policies and operational response. Those agencies include the Australian Federal Police, ASIO, the Australian Customs Service, the Australian Crime Commission and the Australian Transaction Reports and Analysis Centre.

Economic strength

The Department made a number of significant contributions to this key policy area as well.

It supported the Royal Commissions into the HIH collapse and the Building and Construction Industry. The first of those inquiries made recommendations aimed at improving prudential standards in the insurance industry. The second put forward proposals to reform the building and construction industry, which is a major force in national economic growth.

The Department participated in inter-departmental committees on insurance and tort law reforms and was a leader in the Australia-wide moves to establish a national legal profession under the auspices of the Standing Committee of Attorneys-General.

The Department developed legislation to prohibit age discrimination which is a major component of the Government's policy to encourage older citizens to participate in the workforce beyond 55, following on from the Intergenerational Report. The Age Discrimination Bill was introduced into Parliament in June 2003.

The Legislative Instruments Bill, which was also introduced in June, will improve access by business and the community generally to regulations and other legislative instruments that govern their activities.

Social stability

The Department was very active in the broad policy area of social stability.

The Attorney-General's Department is the lead Australian Government agency for critical infrastructure protection. While protection of critical infrastructure is a vital part of Australia's counter-terrorism strategy, critical infrastructure can also be damaged or destroyed - with serious economic and social consequences - by criminals, by vandals, by accident and, in the case of electronic networks, by computer hacking. Protecting this infrastructure from any form of damage is important to Australia's social stability and to its economy.

During the year, the Department arranged for the Australian Computer Emergency Response Team (known as AusCERT) to provide alerts and warnings about computer problems to any business or individual who wants to take advantage of this free service. It finalised arrangements to set up the Critical Infrastructure Advisory Council and a number of specialist sub-groups made up of government, private sector and essential utility representatives to cover the banking and finance, communications, water services, food chain, energy, health, transport and emergency services sectors.

The Department managed the implementation of the hand gun buyback scheme which commenced on 1 July 2003. This national scheme is expected to remove up to 65 000 hand guns from the Australian community.

The Criminal Justice Division continued to provide important operational services in extradition and international mutual assistance in criminal matters.

A very significant reform in relation to the distribution of property on marriage breakdown came into force on 28 December 2002. Now, superannuation interests held by the separating spouses can be treated as property and divided between them.

The Civil Justice Division developed disability standards for accessible public transport and is involved in the formulation of standards for assess to premises.

The Department's Native Title Division continued to implement the Native Title Act 1993 and sought wherever possible to obtain successful native title outcomes by agreement rather than litigation in accordance with the Government's preferred approach.

Summary

Many more activities were undertaken, more legislation developed and more ongoing responsibilities discharged than can be covered in this short introduction.

Because of the breadth and cooperative nature of the Department's responsibilities - often working hand-in-hand with other agencies - the Department's role is not always apparent. While initiatives implemented by portfolio agencies or other departments can be supported by advice or assistance provided by staff from this Department, their contribution may not be visible to others. One example is the Department's participation in Defence's preparations for Australia's engagement in the war in Iraq.

This review gives some idea of the range, scope and value of Department's activities during the year. It illustrates the important part the Attorney-General's Department plays in helping the Australian Government implement its agenda across a very wide range of policy and operational areas.

I thank each member of the Department's staff for their contribution to the successful outcomes we achieved during the year.

Robert Cornall
Secretary
Attorney-General's Department

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PORTFOLIO OVERVIEW

Portfolio Ministers

The Honourable Daryl Williams AM QC MP
Attorney-General

Senator the Honourable Chris Ellison
Minister for Justice and Customs

As well as having overall portfolio control, the Attorney-General's responsibilities include constitutional matters, royal commissions, courts and tribunals, law reform, alternative dispute resolution, international law, administrative and family law, human rights, legal aid, legal services, legislative drafting, censorship, intellectual property and information law, bankruptcy, e-commerce, native title, national security and counter-terrorism, prosecution policy and emergency management.

The Minister for Justice and Customs is responsible for criminal law and crime prevention, criminal intelligence and criminology research, policing, airport physical security, including air security, and customs, including Coastwatch.

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 bodies within the Attorney-General's portfolio are grouped below by subject matter or function for ease of reference. Annual reporting requirements and arrangements for portfolio elements not covered by this report are set out at Appendix 1.

Administrative law
. Administrative Review Council

Bankruptcy
. Insolvency and Trustee Service Australia

Censorship and classification
. Office of Film and Literature Classification
. Classification Board
. Classification Review Board

Courts and tribunals
. High Court of Australia
. Federal Court of Australia
. Family Co urt 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
. 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 Crime Commission
. Australian Federal Police
. Australian Transaction Reports and Analysis Centre
. Australian Institute of Criminology
. Commonwealth Law Enforcement Board
. Criminology Research Council
. 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
. National Counter-terrorism Committee

Privacy
. Office of the Federal Privacy Commissioner

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DEPARTMENTAL OVERVIEW

The Attorney-General's Department serves the people of Australia by providing essential expert support to the Government in the maintenance and improvement of Australia's system of law and justice.

The Department is the central policy and coordinating element of the Attorney-General's portfolio, for which the Attorney-General and Minister for Justice and Customs are responsible.

The mission of the Attorney-General's Department is achieving a just and secure society. In pursuing this mission, the Department is focused on achieving two outcomes:

An equitable and accessible system of federal civil justice.

Coordinated federal criminal justice, security and emergency management activity, for a safer Australia.

These outcomes have been formulated in line with the Australian Government's accrual-based outcomes and outputs framework. In the context of this framework, outcomes are the results, impacts or consequences of actions by the Government on the Australian community. Outputs are the goods and services produced by agencies on behalf of the Government, and include goods and services produced for other areas of Government external to the agency. Since its adoption in 1999-2000, the framework has had several revisions to accommodate Administrative Arrangements Order changes and to accurately reflect the nature of outcomes and outputs.

The Department's outcomes and outputs structure and associated performance information, as depicted in the Portfolio Budget Statements (PBS), is the basis for reporting in the corresponding annual report. The PBS 2002-03 included Output 2.6- facilitation of the delivery of high quality national policing information services. This output has been removed from the structure, as CrimTrac became a prescribed agency on 1 July 2002. The change was reflected in the 2002-03 Portfolio Additional Estimates Statements.

The outcomes and outputs structure forming the basis of the 2002-03 annual report is set out in the chart below. The chart also shows the organisational elements responsible for administering each output. It should be noted that the Office of Legal Services Coordination and the Native Title Division were amalgamated to form the Legal Services and Native Title Division on 30 June 2003. Most references in the annual report will be to the separate elements, to reflect their status for the bulk of the reporting period.

Attorney-General's Department Outcomes and Outputs framework

* The Legal Services and Native Title Division was formed on 30 June 2003 with the amalgamation of the Office of Legal Services Coordination and the Native Title Division.

The Department's organisational structure is aligned as closely as possible to the outcomes and outputs structure. The following chart represents the structure at 30 June 2003.

Attorney-General's Department organisational structure at 30 June 2003

* Division formed as a result of the amalgamation of the Office of Legal Services Coordination and the Native Title Division on 30 June 2003

The General Manager, Civil Justice and Legal Services Group has primary responsibility for outputs within Outcome 1 with the exception of Output 1.6. The General Manager, Criminal Justice and Security Group is responsible for outputs falling under Outcome 2 and Output 1.6, which is administered by the Information and Security Law Division. (It should be noted that at the time of publication these General Manager positions have been redesignated Deputy Secretary positions.)

The General Manager, Information and Knowledge Services Group and the General Manager, Corporate Services Group support the other General Managers in producing all the Department's outputs.

Division and Office functional responsibilities

The following paragraphs describe the functions of the divisions and offices, within broad structural groupings. The statements reflect the Department's structure at 30 June 2003.

Civil Justice and Legal Services Group

The Civil Justice Division (CJD) administers Output 1.1. The Division is responsible for legal and policy advice on laws concerning human rights, administrative law, evidence, service and execution of process, legal practice and procedure, and courts and tribunals. It is also responsible for promoting international cooperation on civil legal procedures. Staff of the Division also constitute the secretariats for the Administrative Review Council and the National Alternative Dispute Resolution Advisory Council.

The Legal Services and Native Title Division (LSNTD) administers Output 1.2 and Output 1.7. The Division supports the Attorney-General in the performance of his role as First Law Officer, providing advice on litigation policy and guidance on outsourcing of the Commonwealth's legal work. The Division is also responsible for advising the Attorney-General on constitutional policy issues, and, with the relevant portfolio agency, on censorship and bankruptcy. The Division coordinates Departmental support for the Standing Committee of Attorneys-General and provides the International Legal Services Advisory Council with a secretariat and with advice on international trade in legal services.

The Division is also responsible for the formulation and provision of policy advice on native title, and for assisting the Attorney-General in the administration of the Native Title Act 1993. This includes advising on the operation of the Native Title Act, working with State and Territory governments on the implementation of alternative native title regimes, developing agreed conditions for the provision of financial assistance to States and Territories, and managing Commonwealth involvement in native title litigation.

The Family Law and Legal Assistance Division (FLLAD) administers Output 1.3. FLLAD is responsible for the development, coordination and implementation of Commonwealth policy on family law and legal aid, for primary dispute resolution and other support services for separating families, and for the coordination of the provision of legal assistance services nationally. The Division also provides research and support services to the Family Law Council and the Family Law Pathways Taskforce.

The Office of International Law (OIL) administers Output 1.4. The Office provides legal advice and advocacy services on issues involving international law, and assists with the development and implementation of international law projects. OIL also undertakes international human rights report writing and complaints work.

The Office of Legislative Drafting (OLD) administers Output 1.5. The Office is responsible for drafting regulations and other legislative instruments and for giving advice about drafting and interpreting legislative instruments to the Attorney-General, Ministers, and to departments and agencies. OLD is also responsible for managing the publication of the Australian Government Notices Gazette, the consolidation of Commonwealth legislation and the management and operation of the SCALEplus and Legislative Instruments databases.

Criminal Justice and Security Group

The Criminal Justice Division (CrJD) administers Output 2.1. The Division is responsible for policy advice, and for the administration and improvement of legislation and international arrangements (bilateral and multilateral) relating to criminal law and the criminal justice process. CrJD is also responsible for policy matters relating to operational law enforcement agencies, the National Firearms program and administration of the National Crime Prevention program. It also provides secretariat support to the Ministerial Council on the Administration of Justice.

The Information and Security Law Division (ISLD) administers Output 1.6 and Output 2.2. The Division is responsible for developing policy and providing advice on law relating to privacy, freedom of information, parliamentary privilege, defamation, intellectual property rights, electronic commerce, telecommunications interception, counter-terrorism and national security. ISLD also coordinates the national critical infrastructure protection program.

Emergency Management Australia (EMA) administers Output 2.3. In conjunction with a wide range of Commonwealth authorities, State and Territory agencies, local government and industry bodies, EMA develops strategic emergency management initiatives, sponsors partnerships between emergency management and other sector stakeholders, develops State and Territory capability in the emergency management sector in order to protect life and property, and facilitates the process of developing resilient and sustainable communities. EMA coordinates Australian Government physical assistance to States and Territories, upon request, during major disasters and delivers senior level emergency management education and training programs. As an agent of AusAID, EMA has a significant relationship with the countries of the South Pacific region.

The Protective Security Coordination Centre (PSCC) administers Output 2.4 and Output 2.5. PSCC is responsible for policy advice on protective security and related national security matters, including counter-terrorism, and administers the Australian Security Vetting Service. It coordinates protection arrangements for high-risk persons, premises and facilities, including Ministers and their staff, visiting foreign dignitaries and foreign diplomats, and services the 24 hour a day, seven day a week crisis coordination Watch Office and National Security Hotline.

Information and Knowledge Services Group

The Information and Knowledge Services Group (IKS) provides services and support in the areas of information technology, information systems development and information management services and practices (including knowledge management, records and information management and archival services). The Group is also responsible for library services, voice and data communications, ASNET, IT security matters (including technical support to ASNET), Internet and intranet services (including Australian Law Online, <www.ag.gov.au/alo>, and the Attorney-General's Department website, <www.ag.gov.au>), and IT contract management.

Corporate Services Group

Corporate Services Group (CSG) provides administrative advice and services to the Attorney-General and the Minister for Justice and Customs. It also provides general support to the Department including advice and services relating to human, financial, and physical resources, ministerial and parliamentary matters, public affairs, freedom of information, and corporate performance.

CSG also provides secretariat support for the Trade Measures Review Officer that is integral in executing the statutory function of conducting administrative reviews of decisions to do with anti-dumping and countervailing matters. The Trade Measures Review Secretariat also provides policy advice on issues relating to the WTO Anti-Dumping Agreement and the Agreement on Subsidies and Countervailing Measures and the Customs Act 1901.

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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 comprises the Secretary, four General Managers, the Executive Adviser and an Executive member. Its role is to set strategic direction and maintain 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 Mike Fish, Acting General Manager, Corporate Services. 6 May 2002 to 28 July 2002.
Dr James Popple, Executive Adviser. Appointed 3 September 2001.
Ms Philippa Lynch, Executive Member. 5 March 2001 to 29 August 2001.
Mr Andrew Henderson, Acting Executive Advisor. From 17 June 2003.
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, and
. 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, General Manager Corporate Services, and Assistant Secretary Financial Management Branch, are invited to attend meetings as observers at the discretion of the Chair.

Activities of the Audit Committee

Since 1 July 2002, the audit and evaluation function has been performed by Deloitte Touche Tohmatsu, under an outsourced arrangement that is overseen by the Audit Committee.

The Audit Committee met on four occasions during the financial year and the Secretary was present at all of those meetings. Its actions and deliberations included, amongst others:

. approving the internal audit program of reviews, and overseeing its conduct
. a review of the exercise of Commonwealth superannuation authorisations
. a review of IT governance
. a review of IT security
. a review of the Department's administration of the Goods and Services Tax and Fringe Benefits Tax
. providing advice to the Secretary on the preparation and review of the Departmental Financial Statements, and
. providing advice to the ANAO on those aspects of its audit program relating to the Department and the Attorney-General's portfolio.

IT Governance

The Departmental Executive adopted a formal IT governance framework, based on the internationally recognised CobiT standard. This resulted in the establishment of the Information Technology Executive Committee (ITEC) to monitor IT activities from a business perspective. Among other matters ITEC will advise the Executive on the prioritising of resources for IT projects.

Accountability framework - integrated performance management

The Department's approach to performance management integrates planning, accountability, reporting and evaluation activity. The approach links individual performance with corporate goals, and includes a system of performance review at several levels- from 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

As part of the integrated performance management approach, the Executive's role is to set the broad strategic direction for the Department. This broad strategic direction is supported by operational plans for each organisational element within the Department that detail activities and associated resource and performance information. All activities are related to an output within the outcomes and outputs framework. Area work plans are developed as appropriate, in line with the operational plans.

Links to individual performance

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

Executive Performance review

The Departmental Executive conducts biannual performance reviews of organisational elements. 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 entry in the Portfolio Budget Statements (PBS) that follows the accrual-based budgeting outcomes and outputs framework. In addition to detailing appropriations, the PBS contains performance information for each item of administered expenditure and each output within the framework. The annual report outlines performance against measures contained in the PBS.

The Departmental annual report complies with the Requirements for Annual Reports for 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.

Review of corporate performance management framework

During the reporting period, the Department commenced a review of its corporate performance management framework. The aim is to develop a framework and performance information that contributes to sound decision making in the Department and enables stronger assessments of the Department's success in achieving its outcomes. The review will also help identify areas for improvement in planning, monitoring and reporting systems, thereby strengthening the Department's corporate governance and risk management practices.

Establishment and maintenance of appropriate ethical standards

The Australian Public Service (APS) Values and Code of Conduct contained in the Public Service Act 1999 (the Act) and Public Service Commissioner Directions made under the Act, express the moral philosophy of the Australian Public Service and the standards of behaviour and conduct expected of its employees.

A commitment from all employees to uphold the APS Values and to comply with the Code of Conduct is contained in the Department's Certified Agreement and Australian Workplace Agreements. 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.

Formal procedures have been established for determining breaches of the Code of Conduct as required by sub-section 15(3) of the Act, and for dealing with whistleblowers' reports, in accordance with Public Service Regulation 2.4.

During the year, the Chief Executive's Instructions under the Financial Management and Accountability Act 1997, which apply to all employees, were reviewed. The Instructions include Departmental arrangements for ensuring the proper use and management of public money, public property and other resources of the Commonwealth, and proper accountability for their use and management.

The Department has a comprehensive policy and procedures document Managing AGD Employee Conduct and Whistleblower Reports that sets out the legislative requirements and procedures to be followed when determining whether an employee has breached the Code of Conduct. It also provides detailed guidance and advice on managing the process. This document also refers to, and makes available to employees, the Australian Public Service Commission publication Guidelines on Official Conduct of Australian Public Servants.

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. 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.

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

During the reporting period, the Secretary was a member of a reference group established by the Australian Public Service Commission to guide an examination of how agencies are promoting the Values and ensuring compliance with the Code of Conduct. The aim of the examination was to provide material from which the Commission could develop a good practice guide. The Department participated in the study and several of our policies and processes have been included in the good practice guide as case study material. The case studies demonstrate how agencies can embed the Values and Code of Conduct into management arrangements. The case studies are:

. AGD Generic Capabilities
. development of the AGD Certified Agreement 2002
. the Department's Induction program
. the Department's Chief Executive's Instructions, and
. Employee Relations Advice on Management of AGD Employee Conduct and Whistleblower Reports.

The Department also works within a strong accountability framework, which includes scrutiny through various parliamentary committees and other means, internal audit overseen by an independently chaired Audit Committee, and external audit by the Australian National Audit Office. The framework also includes particular legislation, namely:

. Administrative Decisions (Judicial Review) Act 1977
. Freedom of Information Act 1982
. Ombudsman Act 1976, and
. Review of Actions provisions of the Public Service Act 1999 (in respect of ac tions taken concerning Departmental employees).

External scrutiny

As part of the overall accountability framework, the Department's operations are subject to external scrutiny from a variety of sources. This may include judicial decisions, decisions of administrative tribunals as well as reports of parliamentary committees, the Auditor-General and the Commonwealth Ombudsman. 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.

During the reporting period there were no judicial decisions or decisions of administrative tribunals that had a significant impact on the operations of the Department.
Reports of parliamentary committee inquiries can address a range of matters including:

. legislation proposals
. legal and policy work
. broad community-interest issues of both direct and indirect relevance to the Department, and
. operational infrastructure ie the support systems, processes and procedures which enable the Department to perform its functions efficiently and effectively.

During 2002-03 there were no reports by parliamentary committees directly related to the operations of the Department. Further information on parliamentary committee consideration of other matters impacting on the Department appears in the Report on Performance segment of this annual report, and is shown against relevant Departmental outputs.

During the reporting period, the Auditor-General did not issue any reports on the operations of the Department (other than the report on financial statements), nor did the Ombudsman raise any substantive issues.

Risk management

During the year, operational level plans involving analysis of the potential impact of risk events on critical business operations, were further refined. The operational risk planning process shaped the development of a complementary strategic plan, which was being considered by the Executive at the end of the reporting period. A consolidated Departmental risk management plan will be completed in 2003.

The period also saw further risk management capacity building and awareness-raising through targeted workshops and presentations. Formal training programs were conducted instructing SES and relevant Executive level officers in the theory and practice of risk management. This training initiative, which emphasised the practical application of risk management techniques, is continuing.

An examination of the Department's professional indemnity insurance cover was conducted in the latter part of 2001-02. As a result of that analysis and subsequent negotiations with ComCover, the premium for professional liability cover for 2002-03 was reduced from $202 004 to $20 000. This saving was offset by increases in premiums for other cover types. Overall, the Department's total premium for 2002-03 increased by $18 667 over the previous year with a minimum coverage of $100 million for general liability, product liability and directors, officers and professional indemnity.

In accordance with the requirements of the Commonwealth Fraud Control Guidelines, the Department has prepared fraud risk assessments and fraud control plans. It has in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the specific needs of the Department and comply with the Commonwealth Fraud Control Guidelines.

The risks to the Department's IT infrastructure have been formally reviewed by an internal audit. A disaster recovery plan has been developed and practical steps to mitigate risk have been adopted. The plan covers:

. regular and systematic backup of data, stored both on and off-site
. disaster recovery kits appropriately secured and stored at three separate offsite locations
. warm-site backup remote from the main computer centre in Robert Garran Offices
. validation of and training in the disaster recovery procedures through a series of rolling exercises
. AS/NZS 4360:1999 compliant risk management procedures and templates for ICT projects and activities, and
. enhanced power management for mission critical systems.

An integral element of the Department's corporate governance and risk management framework is business continuity management, which is designed to facilitate the continuance of critical Departmental operations in the event of a major disruption or a disaster. During the year, the Department continued to review its business continuity strategy, including the establishment of a prepared site for the contingency coordination centre, updating of contingency plans for business critical functions and broadcast of contingency planning information on its intranet.

Service charters

The Attorney-General's Department Service Charter, as well as supplementary charters covering the activities of the International Family Law Section of the Family Law and Legal Assistance Division and the Trade Measures Review Secretariat, continued to operate during the reporting period. The Service Charter outlines the Department's commitment to providing quality service in its dealings with clients. It also refers clients to information about how to make complaints or comment on performance. The Department's Service Charter is available on the AttorneyGeneral'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 4.

Trade Measures Review Officer

The Trade Measures Review Officer (TMRO) is a statutory office-holder with powers and responsibilities set out in the Customs Act 1901 (Divisions  8 and 9 of Part XVB). The TMRO functions as an independent review mechanism for parties affected by anti-dumping decisions by the Minister for Justice and Customs. During 2002-03, four reviews were completed following decisions by the Minister and the Chief Executive Officer of the Australian Customs Service concerning anti-dumping decisions:

. flexible slabstock polyols exported from Japan, Korea, Singapore and USA
. hot rolled structural steel sections from Korea, South Africa and Thailand
. Polyvinyl Chloride (PVC) from Indonesia and Israel, and
. dumping duty assessment in respect of tinplate from Taiwan.

All reviews were completed within the statutory timeframe.

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 49: In the 'International bodies- membership contributions' item, under the sub-heading 'The Hague Conference on Private International Law', there was an incorrect reference to the number of member countries of the Hague Conference. 'Forty-one countries ...' should have read as 'Sixty-one countries ...'.

Page 63: Under the sub-heading 'Legal Services Directions' it was correctly stated that the Office of Legal Services Coordination identified two breaches of model litigant obligations.  However, there was an incorrect conclusion that of eight written complaints received, 'six complaints were found not to constitute breaches of the model litigant obligations'.

There were two breaches of model litigant obligations by one agency identified in a single complaint.  No breaches were identified in the remaining seven complaints. The Senate Legal and Constitutional Legislation Committee (to which the Department's Annual Report is referred) was advised of the correction by letter in January 2003.

Page 257: In the Financial Statements under Note 6B - Receivables in the 2000-2001 column, the receivables 'Not Overdue' amount was recorded as $8 644 000. It should read $8 523 000. Also, the total receivables, 'Not Overdue' and 'Overdue by' was recorded as $11 711 000. This amount should read $11 590 000.

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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 department's annual report tabled in Parliament. The financial statements at page 171 have been prepared on an accrual basis in accordance with Australian Accounting Standards.

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.

In 2001-02, the Department's consolidated financial statements included the Australian Protective Service and CrimTrac. On 1 July 2002, both organisations separated from the Department-the Australian Protective Service was transferred to the Australian Federal Police and CrimTrac became a prescribed agency under the FMA Act. As a result, the financial statements for 2002-03 set out the financial performance and position of the Department only, whereas the comparative figures for 2001-02 include the Australian Protective Service and CrimTrac. The following analysis of the financial performance of the Department for 2002-03 in comparison to 2001-02 is for the Department only.

Departmental outputs

The operating result for the Department for 2002-03 was a deficit of $19.5 million, including the capital use charge, compared to a surplus of $37.1 million in 2001-02.

The deficit for 2002-03 comprises $9.4 million in expenses deferred from 2001-02 for CrimTrac and the National Crime Prevention program, $3.3 million in additional diplomatic guarding expenses and $6.8 million in additional expenditures in the Department.

The change from a surplus in 2001-02 to a deficit in 2002-03 was primarily due to the way in which appropriation revenues have been accounted for and the timing of program expenditures. In particular, this relates to payments to CrimTrac and the National Crime Prevention program where appropriations have been brought to account as revenue in one year and expenditure has occurred in the following year.

Total revenues decreased by $9.8 million to $151.6 million in 2002-03 compared to $161.4 million in 2001-02. The decrease comprises $4.7 million for non-appropriation revenues and $5.1 million for appropriation revenue. The decrease in non-appropriation revenues was due to a one-off boost to revenue in 2001-02 for assets brought to account for the first time. The decrease in appropriation revenue was due to changes in funding for budget measures across the two years.

Total expenses increased by $46.8 million to $171.1 million in 2002-03 compared to $124.3 million in 2001-02. The major factors that contributed to the increase in expenses were the implementation of additional domestic security measures, additional diplomatic guarding expenses, payments to CrimTrac, the full year effect of the transfer of Emergency Management Australia to the Department and the increase in the capital use charge paid for the financial year.

At 30 June 2003, the Department had net assets (assets less liabilities) of $46.1 million compared to $70.3 million for the previous year. The reduction in net assets was primarily due to the deficit of $19.5 million for 2002-03.

Administered expenses

Administered expenses increased by $53.6 million to $346.1 million in 2002-03 compared to $292.5 million in 2001-02. The major factor contributing to the rise in expenses in 2002-03 was the increase in personal benefits expenses of $42.4 million. The increase in personal benefits expenses reflects the increase in the estimate of the judges' pensions liability following an actuarial assessment undertaken for the Department in July 2003. Actuarial valuations of the judges' pensions liability are undertaken every three years.

Events occurring after balance date

No significant events have occurred after balance date that would have an effect on the ongoing structure and financial activities of the Department.

Competitive tendering and contracting

The Department's annual report must include a statement in relation to competitive tendering and contracting (CTC) undertaken during the reporting period, that has resulted in a contract being let. The Requirements for Annual Reports defines CTC activity in this context as the contracting out of the delivery of government activities, previously performed by a Commonwealth agency, to another organisation. It may be undertaken for the provision of either goods or services. During the reporting period, the Department did not undertake any competitive tendering and contracting activities.

Consultancy services

Consultancy services are one particular type of service delivered under a contract for services. They are distinguished from other contracts for services by the nature of the work performed. The Requirements for Annual Reports 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 2002-03, the number of consultancy services contracts let by the Department was 48 and the total expenditure on consultancy services during the year was $3 245 851. This expenditure relates to continuing consultancies as well as new consultancy contracts let during the year. Further information in relation to consultancy services appears at Appendix 5, and 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

The Department is required to disclose expenditure, in addition to consultancies, made to specific types of organisations under section 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 are provided at Appendix 6.

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. Details of grant recipients during 2002-03 appear at page 48.

Purchasing

The Department undertakes a variety of purchasing activities that range in complexity and value. The Commonwealth Procurement Guidelines and Best Practice Guidance, reflected in the Department's Chief Executive's Instructions, must be adhered to by all staff when undertaking purchasing activities. Staff involved in procurement activities have access to an intranet site specifically developed to assist them 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, and computer equipment. Asset stocktakes were conducted during the year to maintain the accuracy of asset records. Assets are revalued on a three-year cycle.

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Human Resource Management

Staff profile

The Department employed 712.6 staff (full-time equivalent basis) at 30 June 2003. This represents an increase of 10.5 per cent over 30 June 2002 staffing numbers (644.6). Tables showing a detailed breakdown of these numbers by location, broad-banded classification and gender are presented at Appendix 7. The tables also show staffing details at 30 June 2002 for comparison.

Emergency Management Australia representation at Mount Macedon in Victoria accounts for all staffing figures for the Department in that State.

The Department also employed 33 casual staff as at 30 June 2003. These staff were employed to work in the area responsible for the National Security Hotline.

Workforce planning, staff retention and turnover

Under the AGD Certified Agreement 2002, the Department made a commitment to implement a workforce planning strategy during the life of the Agreement.

Workforce planning is a continuous process of shaping the workforce to ensure that it is capable of delivering organisational objectives now and in the future. The Department's Executive Committee approved a six-phase planning cycle coinciding with the Department's business planning cycle. The six phases are:

1. Determine future needs
2. Know you current workforce
3. Gap analysis
4. Planning
5. Implement strategies
6. Monitor and evaluate.

The initial workforce planning cycle will be piloted in four Divisions within the Civil Justice and Legal Services Group and the Criminal Justice and Security Group. These Divisions are:

. Civil Justice Division
. Family Law and Legal Assistance Division
. Criminal Justice Division, and
. Emergency Management Australia.

The Department has completed Phase 1 - Determine Future Needs. The key outcomes of this phase were:

. identification of the strategic direction of the Department, looking at the next one to five years
. identification and agreement on future workforce capabilities required over the next three to five years
. identification of the need for workforce planning, and
. engaging the support and commitment of the Senior Executive Service in the workforce planning process.

Phase 2 - Data Collection, has commenced for the pilot Divisions. This will establish the Department's workforce "supply". Following the completion of these steps, Phase 3 - Gap Analysis, will assist the Department to identify human resource strategies to reduce the gap between workforce supply and demand.

Key phases requiring staff involvement are:

. Phase 3 - Employee Relations Section will meet with Division heads and small groups of staff within the Division to discuss future needs.
. Phase 4 - As staff should be involved in the business planning process, staff focus groups will be conducted to assess possible new initiatives to close the 'gap'.
. Phase 6 - Staff will be asked to provide feedback on planning outcomes.

Staff recognition

The Department has a rewards and recognition program that acknowledges and celebrates the outstanding efforts and contributions of employees. This program includes a policy on non-salary reward and recognition. The annual Secretary's Award recognises individuals or teams who have demonstrated excellence in achieving outcomes above and beyond general expectations. General Managers may also present each year an 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 addresses the formal recognition of achievement as well as 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, such as the Order of Australia or Public Service Medal.

The recipients of awards during 2002-03 are listed at Appendix 8.

Workplace diversity

The Department's Workplace Diversity Program 2001-03 is due to be reviewed.

The Workplace Diversity Program aims to give staff a better understanding of diversity concepts. It identifies the responsibilities we all have to implement diversity principles on a day-to-day basis as we go about our work.

The priorities for the current program are to:

. build awareness and understanding of workplace diversity issues
. improve consultation and communication within Groups/Divisions/Offices
. improve the Department's approach to performance management and individual development
. improve recruitment and selection processes, and
. enable employees to balance their work and personal lives.

The Department's Certified Agreement 2002 also has several initiatives aimed at enabling employees to balance their work and family lives, including:

. flextime provisions
. carer's leave provisions
. variable leave provisions
. homebased work policy, and
. parttime work policy.

The Department's People Development Strategy (PDS) is also relevant when considering the Department's commitment to workplace diversity.

Occupational health and safety

The Department is committed to promoting and maintaining a high standard of health, safety and well-being, 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, and
. provision of advice to managers and staff on their responsibilities for promoting a safe and healthy work environment that is free of hazards.

The Department's occupational health and safety performance, in particular details required under the Occupational Health and Safety (Commonwealth Employment) Act 1991, can be found in Appendix 9.

Certified agreement and Australian Workplace Agreements

Senior Executive Service employees

All Senior Executive Service (SES) employees of the Department have their remuneration and other conditions of employment established by Australian Workplace Agreements (AWA's) made under the Workplace Relations Act 1996. All AWAs are consistent with the Department's SES Remuneration Policy. The Policy contains a set of principles on which remuneration is based and includes accountability, flexibility, equity, reward for excellence and encouragement of individual growth.

For each SES classification there is a salary band, with progress through the salary band and performance pay linked to performance appraisal outcomes under the Department's Program for Performance Improvement.

The SES Remuneration Package includes salary and possible performance pay, as outlined in the Department's SES Remuneration Policy, as well as:

. 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, and
. access to flexible remuneration packaging on a salary sacrifice basis.

The SES AWAs were renegotiated during the reporting year and have a nominal expiry date of 30 June 2004.

Non-SES employees

Non-SES employees of the Department are generally covered by the Attorney-General's Department Agreement 2002 (Agreement 2002), a certified agreement made under section 170LK of the Workplace Relations Act 1996.

Agreement 2002 was certified on 4 July 2002 with a nominal expiry date of 30 June 2004.

Developments regarding agreement making and impact of making agreements

The current Certified Agreement was developed during the last reporting period. Key activities this year targeted implementation and monitoring of established initiatives.

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, and
. the promotion of environmental management by supporting initiatives that will reduce energy and goods consumption and waste generation.

Information on Certified Agreement and AWA's

At 30 June 2003, Agreement 2002 covered 727 employees. A small number (eight plus 33 casual staff) of non-SES employees are covered by AWAs. The 62 SES employees are covered by AWAs. The salary ranges for employees under a certified agreement and AWA are reflected in the following table.

Non-salary benefits provided by the Department to employees

The SES remuneration package includes the use of a fully maintained, privately plated vehicle (or monetary allowance in lieu), parking facilities at the workplace, and accompanied overseas travel (subject to eligibility guidelines).

All staff, including the SES, have membership of a comprehensive superannuation scheme as part of their remuneration entitlements and access to salary packaging.

Performance pay

Details of performance payments made in the reporting period, in respect of the performance cycle that ended on 30 June 2003, are set out below.

Note.
1. Non-SES and SES Band 1 classifications are grouped together to ensure payments to individuals cannot be identified.

The aggregate bonus payment for the Department as a whole was $313 697.

Notes.
1. Non-SES and SES Band 1 classifications are grouped together to ensure payments to individuals cannot be identified.
2. Two employees received performance pay for the 2001-02 and 2002-03 financial years in the reporting period. They have therefore been counted twice.

Training and development

Key training and development strategies and outcomes

The learning and development opportunities offered to staff are grouped in six key clusters, which individually and collectively reflect the key capabilities required at all levels:

. management and leadership
. client relationships
. policy, writing and language skill
. financial management
. organisational development, and
. personal development.

Programs within each cluster have been identified as most beneficial for broad groups within the organisation-the SES, middle management (EL1/EL2, SLO/PLO), APS 1-6/LO and the graduate cohort. This arrangement allows staff to see the key skills required at various levels and plan for the acquisition of such skill. It reinforces the message that learning is ongoing and that there are key skills and behaviours required not only at distinct levels within the organisation, but across all levels.

The program was developed following formal evaluation of past programs, informal feedback from staff at all levels, discussions held during certified agreement consultations and with reference to the last staff survey. Based on this data, the key themes for 2002-03 were people management, self management, written skills and opportunities for personal development. By highlighting these themes it was intended to communicate that staff are valued by the Department, to profile strategies to improve the level of comfort of managers with managing people and processes, and to provide the opportunity for individuals to develop skills important to them and their careers.

Information Technology (IT) training

IT training has been fundamental to the Department's strategy to maximise the use and benefits of technology. There were 1633 staff attendances at the Department's IT training centre. Training consisted of desktop applications, IT security awareness, IT for new starters, electronic document and records management, and Web authoring. Critical to delivering this volume of training was the establishment of the new IKS training and multi-media centre.

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Productivity

In addition to planned reviews of corporate operating systems, individual employees are encouraged to examine all facets of their work to identify where efficiencies might be realised through a culture of continuous improvement. During the reporting period various initiatives were implemented, aimed at achieving greater productivity.

Continuous improvement

The Department maintains a commitment to continuous improvement to enhance organisational efficiency, teamwork and cooperation to meet the needs of clients more effectively. This commitment is reflected in the Attorney-General's Department Agreement 2002 and Australian Workplace Agreements.

The development of a continuous improvement culture enables the Department to:

. encourage employees to be aware of and apply continuous improvement principles to all facets of their work
. integrate continuous improvement into corporate planning, workplace relations reforms, people management and daily work practices
. combine the efforts and resources of everyone in the Department to achieve greater efficiency and improve service delivery to the Department's internal and external clients
. improve employees' commitment, morale and pride in their enhanced contribution, and
. improve organisational efficiency and flexibility to enhance productivity.

An example is the review of media monitoring services which was initiated during the year. The Department's intent is to move to an electronic clipping service that will provide easy access to a comprehensive range of news clips at a reduced cost.

Information technology

A program to improve the Department's information management capability is being implemented, focusing on the introduction of the Electronic Data Management System (EDMS) and a new Ministerial Support System (MSS). The major benefits of this project are:

. the management of all electronic information created within the Department
. comprehensive information search and retrieval
. integrated support for collaboration and knowledge management, and
. document version control and security.

A key outcome is to promote information sharing and the efficient retrieval of previously stored information. The projects will be implemented in the 2003-04 financial year.

The Department's information technology training centre opened in September 2002. The centre reinforces the Department's commitment to provide staff with the necessary skills to maximise the benefits of the latest information and technology developments. Courses, which are tailored to meet the Department's specific requirements, were recognised by staff as important to their ongoing professional development and performance.

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Information and knowledge management

The Information and Knowledge Services Group (IKS) is responsible for providing all information technology (IT), communication systems, electronic information services and knowledge development and sharing. It was created to provide an impetus for improved use of technology and electronic service delivery to assist the operations of the Department.

The Group developed a structured and cohesive approach to support the Department's business requirements and strategic directions, including the development of an Information and Communications Technology (ICT) strategic plan, the creation of an IT project office and a framework for IT governance.

A Knowledge Management framework is being developed as part of the Information Services (IS) business plan. It will identify key strategies for the 2003-04 financial year.
There has been a strong focus on supporting national security requirements, various legal support systems, progressing the electronic documents and record management system (EDMS) and training staff in the effective use of technology.

IKS Strategic Framework

The Department is developing a single, integrated framework for the delivery of its information and knowledge management services.

A formal information management plan was developed in mid-2001 and has been progressively implemented, giving rise to projects such as EDMS, Web content publishing, intranet, Internet and portal developments and the replacement of the Library Management System (LMS). The Group provides policies and procedures for the management of the Department's numerous intranet and Internet sites, and portals.

The Department's Knowledge Management Strategy was completed and accepted by the Executive in April 2002, and an Information and Technology Training Plan is being progressively implemented.

The ICT strategic planning process was drafted and adopted by management in December 2002. A revised ICT Strategic Plan is nearing completion and is expected to be in place by October 2003.

Knowledge Management (KM) Strategy has been approved but is subject to continuous review. The KM Strategy will link with the other identified strategies to build a comprehensive KM framework for the Department.

The Intellectual Property (IP) Management Strategy will provide a management plan as a guide for staff in managing IP.

The Information Management Strategy will define the directions for structured and unstructured information management, including the Department's metadata definitions. Information management and archival policies, standards and procedures are being established.

The Online Publishing Strategy will identify a unified approach to publishing online information within the Department.

The new Memorandum of Understanding for the provision of library services between Attorney-General's Department and the Australian Government Solicitor was signed on 25 June 2003.

IT Governance

In an effort to consolidate and strengthen the links between ICT activities and the Department's outcomes, the Executive has adopted a formal IT Governance framework. The framework is based on the internationally recognised CobiT standard.

The following progress has been made:

. the Executive adopted the framework
. the internal auditor conducted a formal audit of the Department's IT activities against the CobiT control points
. the Executive established the Information Technology Executive Committee (ITEC) to oversee IT activities from a business perspective
. IKS established an IT Project Office to provide a point of coordination for IT and KM projects and procedures
. IKS developed and implemented an IT Risk Management procedure
. the IKS Project Office deployed a formal project management methodology based on the PRINCE 2 standard
. the IKS Project Office also deployed a draft IT quality management plan, and
. the IKS Project Office is developing Service Level Agreements for key IKS services.

IT Infrastructure

The Department's Wide Area Network (WAN) comprises links between five Canberra locations, the Emergency Management Australia facility in Mount Macedon (Victoria) and offices in Sydney and Perth.

An upgrade to the communications infrastructure was completed in December 2002, installing Avaya switches and CISCO routers. This project has provided substantial performance improvements and reduced costs.

The increased volume of secure information resulted in the Department upgrading and certifying its main network. This allows much of the material previously prepared and held on separate facilities to be processed on the main network, improving efficiency.

The certification of the main network has allowed the Department to further leverage its use of inter-departmental facilities, such as FedLink.

In line with the Department's rolling replacement strategy, 346 desktop PCs were replaced during the year. The retirement of this older equipment allowed the Department to upgrade its Standard Operating Environment (SOE) from Windows NT and Microsoft Office 97 to Windows 2000 and Microsoft Office XP.

IT Sourcing

The Department adopted a selective sourcing model for IT in response to the adoption by Government of the Humphry Report. The project commenced in April 2002 and was completed in May 2003. The following functions were outsourced to varying extents: applications development and maintenance (KAZ Technology Group), telephone switchboard (Telstra), information and technology training (deakin KM), and data and communications (Northshore Communications). The local area network was retained in-house for security reasons. While all providers were selected on a "value for money basis", an Australian supplier was the successful tenderer in each case.

Knowledge Management

The Department continued to enhance its management of knowledge assets through the implementation of its Knowledge Management Strategy. The strategy aims to improve access to information for staff, promote a knowledge management culture and enhance the Department's capability, client service and professionalism.

Information Management

The Department is implementing new systems to more efficiently and effectively manage its records. A pilot of TRIM, and EDMS, was conducted in the Department during December 2002/January 2003. In the current phase, the EDMS has been introduced to create and manage both electronic and paper documents and registry files. In association with this initiative the MSS is also being implemented. These projects introduce new technology support for managing the Department's electronic and paper files and are expected to enhance workflow, collaboration and accountability within the Department.

The Department also collaborated with National Archives Australia to improve record-keeping and information management practices, including the Design and Implementation of new Record Keeping Systems (DIRKS). The DIRKS methodology is compliant with, and expands on, the Australian Standard for Records Management AS ISO 15489 - 2002. As part of this program, the Department has commenced a comprehensive project to review file holdings and clear sentencing backlogs.

During the year, the Library commenced implementation of a new library management system. This will take advantage of Internet technology to enable desktop access to the Library catalogue as well as to a variety of other legal research resources.

Law and Justice Portal

The portal is being developed as part of the National Office of Information Economy's Government Online Initiative. The Attorney-General's Department as a lead agency, held the first consortium meeting of portfolio agencies interested in developing the portal. Work is ongoing to redevelop the existing Internet site (<http://www.ag.gov.au>) to reflect the consortium's needs. It is intended that the existing Family Law Online Internet site will be incorporated into the wider law and justice portal. Currently, the existing sites are being upgraded to provide greater functionality and improved usability and accessibility.

Key Activities

. The implementation of the National Security Hotline infrastructure and database was delivered successfully in a very tight time-frame. The Group continues to provide ongoing support and maintenance for this facility.

. Of the other systems developed or enhanced, the most significant were the Federal Prisoners Database, National Visitors Media Card System, National Security Vetting System, National Infrastructure Contacts Database, Emergency Management Australia Training Database, Financial Assistance Database and the Telecommunications Statistics Application.

. An assessment for the upgrade to the Australian Secure Network (ASNET) was undertaken in 2003. The project's next phase will include the implementation of the upgrade and the development of a five-year strategic plan.

. The National Security Internet site was redeveloped in December 2002 and was an integral part of the Federal Government's National Security Information Campaign.

. As part of the Federal Government's handgun buyback project an Internet site is being developed. The site will provide a point of information and advice for handgun owners and State and Territory agencies involved in the handgun buyback.

. The website and database of marriage celebrants was redeveloped, greatly improving access to and usability of the register.

. A website has been developed in conjunction with the Office of Legislative Drafting to allow the publishing of the Government Gazettes on the Internet. The site contains all Government Notices and Special Gazettes produced by the Department since the responsibility for the publication transferred from the Department of Communication, Information Technology and the Arts in July 2002.

. The Library commenced negotiations to purchase a set of the UK Authorised Law Reports for the Supreme Court of Tonga. It is proposed to present the reports at the Pacific Island Law Officers Meeting (PILOM) in October 2003.

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Social equity and environment

Social Justice

The Attorney-General's Department works to an extensive social justice agenda founded on the principles of access and equity and the rights of all citizens to live in a just and secure society. The implementation of this agenda involves most areas of the Department and is consistent with the Charter of Public Service in a Culturally Diverse Society.

The Report on Performance segment of this annual report documents numerous initiatives that advance particular social justice objectives, however the functions of many elements of the Department are closely aligned to promoting social justice generally.

Access to legal services is made available to disadvantaged people who cannot afford the services of a private lawyer through the Commonwealth's contribution to the legal aid program. The Department provided funding of $120.6 million during the financial year to State and Territory legal aid commissions to provide assistance in matters arising under Commonwealth law. The Department provided legal aid commissions with a further $673 000 to fund expensive criminal cases arising under Commonwealth law and $1 million for primary dispute resolution projects approved by the Attorney-General as part of the Government's 'Keeping People out of Courts' initiative. Family law continues to be the main area of assistance funded by the Commonwealth.

Funding is also provided to legal aid commissions for primary dispute resolution in appropriate cases and to the Federal Magistrates Service to assist it to purchase primary dispute resolution services from community organisations. These interventions enable more people to resolve family law disputes as an alternative to litigation.

On 26 June 2003 the Age Discrimination Bill 2003 and the Age Discrimination (Consequential Provisions) Bill 2003 were introduced into Federal Parliament. The legislation prohibits age discrimination in a number of areas of public life including employment, education, accommodation and access to goods, services and facilities. The development of this legislation followed an extensive public consultation process throughout 2002 and 2003. The consultations involved over 90 peak bodies and community organisations representing business, employers and employees, older persons, children and young people. The Department also worked closely with other Government departments to ensure the legislation will operate appropriately in relation to Commonwealth laws and programs, and will complement relevant provisions in existing Commonwealth legislation.

The Commonwealth Community Legal Services Program aims to assist disadvantaged members of the community who are unable to afford a private lawyer or who have special needs. In 2002-03, $22.3 million was paid to more than 120 community legal centres across Australia. These centres provide a range of legal assistance, such as information and legal advice, casework and legal representation, preventive law through community legal education (through activities such as workshops and publications), and appropriate referrals to other services. To further assist those groups in the community with special needs, a number of community legal centres are funded specifically to provide services in relation to:

. the Disability Discrimination Act 1992
. welfare rights
. child support
. environmental law
. women
. indigenous women, and
. children and youth.

Family Law Online, which is part of the Government's Australian Law Online initiative, provides access to information on family law and family support services, including dispute resolution services. The Family Law Hotline complements Family Law Online by providing a free national telephone service to answer an individual's questions about the family law system and services. Also as part of Australian Law Online, legal advice and general legal information is available toll free through the Regional Law Hotline to people living in a number of rural and remote regions throughout Australia.

The Family Relationships Services Program contributes to the development of safe, supportive, nurturing family relationships and helps minimise the emotional and social costs associated with family separation. In 2002-03, funding was provided by the Department, under a Business Partnership Agreement with the Department of Family and Community Services, to 65 community organisations for services supporting families. These services included family and child counselling and mediation, children's contact services, conciliation services, primary dispute resolution services in 35 rural and regional locations, and a contact orders program. The Department also funded projects to improve dispute management skills among professionals and to increase earlier referrals to primary dispute resolution services.

The Department participated in meetings of the Copyright and Publishing Roundtable convened by the Human Rights and Equal Opportunity Commission as part of a broader project regarding the provision of tertiary materials in accessible formats for students with print disabilities. The Roundtable meets to discuss and address the impact on people with a print disability of legislation, procedures, protocols and technologies in the areas of copyright and publishing.

The Department also contributes to the further achievement of social justice by improving the standard of legislative instruments, making available printed copies of Commonwealth legislation and providing free public access to the legislation on the Internet through the SCALEplus system.

Commonwealth Disability Strategy

The Commonwealth Disability Strategy was introduced in 1994 and provides a planning framework to assist Commonwealth organisations to meet their obligations under the Disability Discrimination Act 1992.

The Strategy recognises that the Commonwealth has an impact on the lives of people with disabilities and obliges agencies to remove any barriers that prevent people with disabilities from having access to its many programs, services and facilities. This means ensuring that people with disabilities have the same access to buildings, services, information, employment, education, sport and recreational activities as everyone else in the community.

Ultimately the Strategy represents the Australian Government's commitment to providing a society in which people with a disability can participate fully as valued and equal citizens in the community.

A framework for the Strategy was developed, and comprises five key roles of government, ie policy adviser, regulator, purchaser, provider and employer. The Attorney-General's Department reports on its role as a policy adviser and employer, and that report appears at Appendix 10.

Ecologically sustainable development and environmental performance

The Attorney-General's Department is required to report on a number of matters under section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act). These matters relate to how the activities of the Department accord with the principles of ecologically sustainable development (ESD), how the Department's outcomes contribute to ESD, and the effect of the Department's activities on the environment.

The principles of ESD are identified in the EPBC Act as follows.

. Decision-making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations.
. If there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation.
. The principle of inter-generational equity-that the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefit of future generations.
. The conservation of biological diversity and ecological integrity should be a fundamental consideration in decision-making.
. Improved valuation, pricing and incentive mechanisms should be promoted.

The Department's principal function is to provide policy advice to Government. In developing policy, the Department takes into consideration a range of factors that are important to various stakeholders, eg economic (financial, business, consumer), social, equity, political, cultural, international and environmental considerations. On this basis, the Department's activities are consistent with the first of the ESD principles. The Department's activities have less direct relevance to the remaining principles.

The outcomes specified for the Department recognise and support the significance of ESD principles. Outcome 1, through the inclusion of the phrase 'equitable and accessible', acknowledges directly the importance of social, equity, and to some extent, economic considerations. Outcome 2 includes the phrase 'safer Australia', which can be seen as recognising social considerations, with any links to the other considerations being less direct.

The impact of the Department's activities, in terms of the effect on the environment, is confined to ensuring the efficient use of natural resources and effective waste management. In this regard, the Department is committed to looking at initiatives that will complement existing strategies.

A range of practical strategies are in place within the Department to address environmental management issues including educating staff in ways to reduce energy consumption, recycling paper and toner cartridges, turning equipment off after hours, down-rating florescent tubes as well as purchasing energy efficient equipment.

Buildings occupied by the Department are subject to energy audits and where energy inefficiencies are identified, action is taken to address the problems as soon as practicable. Further, in accordance with Government Energy Policy, action is being taken to develop and implement an Environmental Management System to identify ways of improving our environmental performance by setting environmental targets and taking a systematic approach to addressing these issues.

In recently completed refurbishment work, the broad-term key objectives were to upgrade and modify elements of the existing base building mechanical services to provide more consistent air conditioning performance and improve operational efficiencies in terms of energy consumption. When negotiating leases, due consideration is given to leasing energy efficient buildings. When renewing leases, building owners are canvassed in relation to improving the efficiency of buildings currently occupied by the Department.

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REPORT ON PERFORMANCE

Reporting basis and approach

Performance reporting in this annual report is based on the outcomes and outputs structure and performance information depicted in the 2002-03 Portfolio Additional Estimates Statements (PAES). The structure and performance information varies slightly from that shown in the 2002-03 Portfolio Budget Statements (PBS). Details of those changes are set out in Appendix 2.

The approach to the report on performance has been modified to take account of feedback on the previous annual report. An attempt has been made to achieve a balance between assessments of progress towards the Department's outcomes and descriptions of the diverse activities of the Department. This acknowledges the dual role of the annual report-it is both a key accountability document to Parliament as well as an informative record of the year's activities.

The Department's outcomes are expressed in relatively broad, societal terms. While the Department is the primary driver of its two stipulated outcomes, it does not work in isolation in realising its achievements. The report refers to the extensive cooperative and consultative networks with other organisations, along with external factors that can impact on the Department, including significant domestic and international events or trends.

Performance report structure

Each performance report for the Department's two outcomes contains a preliminary section giving an overview of the activities that contributed to that outcome, an overall assessment of the extent of progress towards the outcome, and significant issues for the year. Each outcome report also includes a resource summary table, a report on administered items, and separate reports on each of the departmental outputs contributing to the relevant outcome.

Each output report has an overview which aims to demonstrate the extent to which the Department fulfilled the output (and therefore achieved the related outcome in 2002-03), as well as present highlights for that output. Following the overview are comments that address the performance measures associated with the output. The results of evaluations or reviews undertaken during the year, especially those listed in the 2002-03 PBS, are included, as well as purchaser-provider arrangements where relevant. The output report concludes with an outlook statement that highlights particular activities or goals to be pursued next financial year and identifies areas for improvement.

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

Overview

The Attorney-General's Department provides a diverse range of legal services and policy advice to achieve Outcome 1. The Department's responsibilities cover the broad areas of courts and tribunals, alternative dispute resolution, administrative law, human rights, evidence and procedure, family law, legal assistance, international law, information law and native title. The Department also provides specialised support for the Attorney-General as First Law Officer, and administers legal assistance and family law related programs, promotes Australian legal services internationally, and drafts and publishes legislative materials.

The Department works in cooperation and consultation with many other organisations to achieve Outcome 1. These organisations can be government agencies (Commonwealth, State or Territory) as well as non-government. They include advisory bodies, task forces, professional associations and community interest groups. As well as the inter-relationships with other organisations, the Department must maintain the flexibility to adapt its operations to the impacts of domestic and international events or trends.

During 2002-03 the Department made substantial and significant progress toward achieving Outcome 1, with many successes drawing positive comments from stakeholders, including the Attorney-General. The performance reports for each output contributing to Outcome 1, presented further on in this section, expand on these aspects.

Highlights for 2002-03

. The Age Discrimination Bill 2003 was introduced into the House of Representative on 26 June 2003. This Bill aims to eliminate unfair age discrimination and thereby ensure that all Australians, regardless of age, have equal opportunity to participate in the social and economic life of our country. It will protect the interests of individuals. It will also protect the interests of business-stereotypical views about the capacity of older Australians prevent businesses from getting the best person for the job. The community as a whole will benefit from having a more equitable society and an economy strengthened by the contribution of all Australians regardless of age.

. The Department played a leading expert role in relation to international trade in legal services and legal education services in the negotiations leading to the finalisation of a Free Trade Agreement (FTA) with Singapore. The agreement was concluded in November 2002 and included significant market access concessions by Singapore for the export of Australian legal and legal education services into that market. This was the result of devoting significant resources to promoting the liberalisation of transnational trade in legal services. This FTA was Australia's first since the conclusion of the Australia-New Zealand Closer Economic Relations Agreement nearly 20 years ago.

. The Department played a major role, working with other departments and agencies, in providing advice to the Government on the implementation of the Family Law Advisory Group's Report Out of the Maze: Pathways to the future for families experiencing separation (the Pathways Report). The Government released its response to the Pathways Report on 13 May 2003, underpinned by $27.8 million in ongoing funding over four years that was announced in the 2003-04 Budget to support the response.

. On 28 December 2002, the package of reforms to family law, superannuation, tax, social security and veteran's affairs legislation, enabling superannuation entitlements to be divided on marriage breakdown, commenced operation. The reforms are the most significant made to Australian matrimonial property law since the commencement of the Family Law Act 1975.

. The provision of advice and other legal services on issues relating to Iraq and Solomon Islands were designed to ensure Australia's actions in those countries complied with both international and domestic law. For Solomon Islands, this included providing assistance in drafting that country's enabling law for the Australian actions.

. The Department supported the Government in the passage of copyright amendments (the Copyright Amendment (Parallel Importation) Act 2003) to enhance competition by removing the ability of copyrig