Part 3: Report on performance

Statement of preparation

I, Penny McKay, as the accountable authority of the Office of the Commonwealth Ombudsman, present the 2020–21 Annual Performance Statement of the Office, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In my opinion, this annual performance statement is based on properly maintained records, accurately reflects the performance of the entity and complies with subsection 39(2) of the PGPA Act.

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Penny McKay

Acting Commonwealth Ombudsman

2020–21 Performance Analysis

This annual performance statement outlines the Office of the Commonwealth Ombudsman’s (the Office) performance against the 2020–21 Portfolio Budget Statement Outcome: ‘Fair and accountable administrative action by Australian Government entities and prescribed private sector organisations, by investigating complaints, reviewing administrative action and statutory compliance inspections and reporting’.

Our 2020–21 Corporate Plan outlined how we would deliver our outcome by:

• providing assurance that the Australian Government entities and prescribed private sector organisations that the Office oversights act with integrity and treat people fairly
• influencing enduring systemic improvement in public administration in Australia and the region.

We measured our 2020–21 success against our outcome, using a performance framework with 5 objectives underpinned by 7 specific performance criteria. The following diagram describes the alignment of our outcome, our objectives and the targets against which we measured ourselves.

In 2020–21, the Office performed strongly in achieving our purpose by meeting or exceeding the majority of our key performance targets as set out in our Corporate Plan and Portfolio Budget Statement.

This year, the effects of COVID-19 across the Australian Public Service (APS) and broader community continued to be felt. Local restrictions and intermittent lockdowns were experienced in most states and territories. While the direct effects of COVID-19 upon the Office’s business-as-usual activities were limited, there were consequential effects for 2 of our performance measures – 2a Complaint resolution and 6a Australian Aid arrangements.

Despite these challenges, we adjusted our work practices and enhanced our use of remote and virtual technology to provide our most critical functions with minimal disruption. Pleasingly, this effort is visible in the Office’s 2020–21 performance results, which compare favourably against our performance last financial year.

Figure 2 below provides a comparison of our performance over the last 2 financial years.

FIGURE 2: PERFORMANCE CRITERIA RESULTS YEAR ON YEAR COMPARISON

*Note that performance criteria 3a, 7a and 7c are not included in this graph, as they are based on volume rather than percentage targets.

Results

We influence improvements in public administration and practices of the agencies and organisations we oversee.
Measure – 1a	Percentage of people who contacted the Office providing a rating of ‘satisfied’ (or better) with our services in response to complainant satisfaction surveys
Target	65%
Result	This survey is conducted every 2 years. The result from 2019–20 was 66 per cent.
Analysis	A Customer Satisfaction Survey will be conducted every 2 years; results for this criterion will be available in 2021–22.
Objectives	2 and 4
Measure – 1b	Percentage of complainant satisfaction survey responses with a rating of ‘satisfied’ (or better) evaluating our independence
Target	65%
Result	This survey is conducted every 2 years. The result from 2019–20 was 76 per cent.
Analysis	A Customer Satisfaction Survey will be conducted every 2 years; results for this criterion will be available in 2021–22.
Objectives	2 and 4
Measure – 1c	User satisfaction with the privatehealth.gov.au website
Target	75%
Result	77%
Analysis	We received feedback that 77 per cent of users were satisfied with the quality of the information provided by privatehealth.gov.au.
Objectives	2 and 4
We are responsive to the public  when they contact our Office.
Measure – 2a	Complaints with the Office will be finalised within our service standards
Target	90%
Result	72%
Analysis	This year we met our service standards 72 per cent of the time, against a target of 90 per cent. The effects of COVID-19 are a significant contributor to this result. We take our complaint-handling responsibilities seriously and evolved our work practices throughout 2020–21. We will continue to have a strong focus on this measure and expect that processes implemented in 2020–21 will have a positive effect on the 2021–22 results.
Objectives	2 and 4
We improve public awareness of our role in influencing public administration and industry practice.
Measure – 3a	Increase contact with the Office
Target	37,896 contacts
Result	There has been a 25 per cent reduction in enquiries and complaints received by the Office from 50,808 in 2019–20 to 36,731 in 2020–21.
Analysis	External factors are likely to be the most significant contributor to this change. We expect changes in how agencies operated due to COVID-19 are likely to have contributed to the reduced complaint load.
Objectives	2 and 4
Measure – 3b	Increase website visits
Target	Total number of website hits across all the Office’s websites
Result	There has been a 10 per cent reduction to our overall website visits.
Analysis	We expect that changes in how agencies operated due to COVID-19 are likely to have contributed to the reduced visits to our website.
Objectives	2 and 4
We influence improvements in public administration and practices of the agencies and organisations we oversee.
Measure – 4a	Percentage of recommendations in public reports accepted by the agency or organisation
Target	75%
Result	89%
Analysis	In our oversight role with agencies and organisations, we are satisfied we were able to influence improvements and systemic change in public administration, and exceeding this measure supports this.
Objectives	1 and 3
Measure – 4b	Percentage of recommendations accepted for Defence abuse reparation payments and VET Student Loan re-credits
Target	95%
Result	100%
Analysis	This is a positive result for the members of the public who contacted our Office in relation to these functions and shows the confidence these agencies have in our work and the recommendations we provide.
Objectives	1 and 3
We are responsive in our dealings with agencies.
Measure – 5a	Percentage of satisfaction survey responses from agencies demonstrating a rating of ‘satisfied’ (or better) with the quality of our work
Target	80%
Result	100%
Analysis	The survey sought feedback from 12 agencies that regularly interact with our Office. It sought to assess satisfaction levels against operational and strategic factors and identify potential areas for improvement. Of the agencies interviewed 6 were ‘very satisfied’ and 6 were ‘quite satisfied’. More broadly, COVID-19 effects were said to be well managed by the Office, and the service provided to the agencies was considered to continue seamlessly.
Objectives	1 and 3
Measure – 5b	Percentage of feedback responses from participants in educational or other events demonstrating a rating of ‘satisfied’ (or better)
Target	90%
Result	91%
Analysis	The Office’s education and stakeholder engagement activities were predominantly delivered online in 2020–21 due to the effects of COVID-19. We sought feedback from participants through formal surveys on participant satisfaction. We achieved a 91 per cent satisfaction rating among participants attending our education or outreach events. The Office plans to continue delivering education and engagement activities online in 2021–22 while also running face-to-face sessions where possible and safe.
Objectives	1 and 3
We effectively deliver our capacity-building programs for the Ombudsman and allied  integrity bodies under the Australian Aid arrangements.
Measure – 6a	Percentage of outputs delivered under the Australian Aid arrangements
Target	80%
Result	73%
Analysis	During 2020–21, we reviewed all program work plans in consultation with our international partners and the Department of Foreign Affairs and Trade to address the unique challenges presented by COVID-19. We were able to deliver many activities across our programs by shifting to virtual and online delivery. This included training courses and workshops. We deferred or cancelled other activities that required international travel, such as internships, professional development placements and face-to-face training, which meant we could not meet some of our outputs. As international travel is unlikely to recommence soon, we will continue to find new and innovative ways to engage and provide support to our international partners
Objective	5
We maintain the confidence of the parliament.
Measure – 7a	Number of reports published
Target	COUNT
Result	52
Analysis	In 2020–21, the Office published 52 reports covering a breadth of topics. These reports included investigation and oversight reports, quarterly updates on various functions and reports on our inspections of immigration detention and law enforcement powers. Our websites provide more information on the reports we published during the 2020–21 performance period.
Objectives	1, 3 and 5
Measure – 7b	Number of submissions made to, and appearances before, parliamentary committee processes
Target	COUNT
Result	32
Analysis	These appearances and submissions speak to both our enduring role and the value parliamentarians place on our impartial advice across a diverse array of subject matter.
Objectives	1, 3 and 5
Measure – 7c	Percentage of reports within statutory timeframes
Target	100%
Result	100%
Analysis	As an oversight agency, we understand the importance of timely advice and recommendations. Despite the challenges caused by COVID-19, we delivered all statutory reports to the relevant Minister and parliament within statutory timeframes.
Objectives	1, 3 and 5

Commentary on results

2a – Complaints within service standards

The ability of our staff to manage complaints in 2020–21 was changed by COVID-19 related lockdowns across all states, in some instances on multiple occasions. The practical effects of the restrictions meant a reduction in staff availability to support all channels of service delivery, particularly by phone, with staff working from home. The lockdowns reduced the Office’s complaint-handling capacity, as staff working from home could not connect with complainants in the same way they would when in the office.

At the same time, the emotional effects of COVID-19 on the broader community are noticeable. There was an increase in complainants presenting with vulnerable circumstances and what we classify as ‘unreasonable conduct’, including aggression towards staff, threats of self-harm, threats of harm against others and unreasonable expectations in relation to the timeliness or influence of our Office.

We also noted an increase in the complexity of complaints the Office is receiving. The increase in complaint complexity was influenced by several factors, including:

• new programs or changes to current programs linked to COVID-19 requiring officers to undertake additional research and engagement with agencies to determine the best course of action
• campaign-style complaints, which sometimes included over 100 complaints on a single topic, with the same issues raised.

Our teams noted that an emerging challenge in 2021–22 will be meeting our performance measures while managing the existing backlog of work resulting from the increasing complexity of approaches, staff working from home and the presentation of complainants and their interaction with us.

With COVID-19 ongoing, we continue to work closely with our staff to support their wellbeing during this difficult time.

4a – Percentage of recommendations in public reports accepted by agencies and organisations

The Office looks to influence improvements in the agencies and organisations we oversee both formally and informally. We take care to ensure our recommendations are relevant, clear, achievable and worded in a way that reflects our intention to improve public administration. We continue to work with the agencies we oversee by being transparent, prompt and taking a ‘no surprises’ approach.

During 2020–21, the Office published several reports relating to our activities. These are available at ombudsman.gov.au/publications/reports

This financial year, we exceeded our target of agencies and organisations accepting our recommendations in public reports by 14 per cent. We achieved an agencies and organisation acceptance rate of 89 per cent against a target of 75 per cent. We see this as an important measure of our ability to influence improvement.

4b – Percentage of recommendations for Defence abuse reparation payments and number of recommendations for VET Student Loan re-credits accepted

The Office makes recommendations to the Department of Defence for Defence Abuse Reparation payments and the Department of Education, Skills and Employment (DESE) for VET FEE-HELP re-credits.

In the 2020–21 performance period, we exceeded the target of 95 per cent of recommendations for Defence abuse reparation payments and VET FEE-HELP re-credits accepted by achieving 100 per cent acceptance.

That is, all recommendations made by our Office in relation to Defence abuse reparation payments and VET FEE-HELP re-credits were accepted across both agencies. This is a positive result for the members of the public who contacted the Office concerning these functions and demonstrates the confidence these agencies have in our work and the rigour and value of the recommendations we provide.

In addition to our recommendations on individual matters, we also supplied analysis and support for Secretary Initiated Actions (SIA), which allowed the Secretary of DESE to re-credit groups of students. During the 2020–21 performance period, approximately 273,438 units of study were re-credited through SIAs to 59,757 students.

5b – Agency Satisfaction survey

The Office has daily interactions with the agencies and organisations we oversee, so it is essential to understand their perspective on our performance.

In 2020–21, we commissioned a survey to be conducted with representatives of Australian Government entities and private sector organisations with which we regularly interact.

Respondents were asked a series of questions to assess their satisfaction levels with the quality of our work and recommend potential areas for improvement. The survey found that all respondents were ‘very satisfied’ or ‘quite satisfied’ with the service provided by our Office. This 100 per cent ‘satisfied’ rating exceeded our performance target of 80 per cent.

The survey outcomes show that the agencies and organisations we regularly deal with value our impartiality, our influence on systemic improvement across public administration and the collaborative relationships we develop with the agencies and organisations we oversee.

There are opportunities for improvement identified through the survey, and we are considering ways to improve in 2021–22.

6a – Australian Aid arrangements

International travel restrictions due to COVID-19 affected our ability to deliver our Australian Aid arrangements fully. In 2020–21, we delivered 22 out of 30 Australian Aid activities. While we did not meet our 80 per cent service standard, we only fell short by 7 per cent.

Throughout 2020–21, the Office worked closely with its international partners to re-design our aid delivery model from face to face to virtual. It took time for our international partners in developing nations to access the technology and capability needed for this type of engagement.

Our achievement of 73 per cent of international activities delivered during COVID-19 reflects our ability to provide innovative and agile support for our partners and the close and highly productive working relationships with our international partners that has made this possible.

We continue to work closely with our international partners to find practical ways to engage and support them while the effects of COVID-19 continue internationally. To that end, we entered into either new partnership agreements or no-cost extension agreements to create flexibility for us (and our partners) to deliver the remaining planned activities for 2020–21 as soon as practical.

7b – Percentage of reports delivered within statutory timeframes

COVID-19 created challenges for the Office in meeting this criterion. It was challenging to meet all statutory timeframes in an environment where we were unable to conduct inspections using traditional procedures, which involve mainly being onsite at an agency or facility.

The Office prioritised meeting all its statutory reporting timeframes by diverting resources and adjusting inspection practices, including the use of remote inspections when possible. As a result of our efforts, we exceeded our target of 95 per cent of reports delivered within statutory timeframes by achieving 100 per cent.

Future planning, lessons learned and challenges

The Office is implementing several strategies to address the challenges we experienced in 2020–21 to ensure we continue to work towards achieving all our service standards in 2021–22.

Our focus in 2021–22 will include a mix of internally and externally focused activities targeting improvements to our internal operating environment, as well as continuing our work with agencies and organisations we oversee to improve public administration systemically.

Although some of our activities and ways of working might continue to change during 2021–22, we will continue to adapt and adjust to deliver our diverse and enduring functions.

Financial reporting

In 2020–21 the Office recorded a net cash operating surplus of $0.838 million, compared to a net cash operating surplus of $0.799 million in 2019–20 (the net cash surplus excludes depreciation, amortisation and includes principal payments on leases).  The 2020-21 net cash operating surplus was broadly consistent with the balanced outcome estimate reported in the 2020–21 Portfolio Budget Statements.

Expenses

Total expenses decreased from $48 million in 2019–20 to $45 million in 2020–21.  This decrease was mainly due to reduced travel ($0.6 million) and appropriation reductions from prior year government decisions for the measures improving integrity of the Vocational and Education Training System (VET) ($1.5 million) and Defence Force Ombudsman abuse reporting ($1.0 million) that were funding contractor and associated support costs.

Income

Appropriation revenue decreased from $42.4 million in 2019–20 to $40.1 million in 2020–21, a decrease of $2.3 million. This was due mainly to the reduction in funding for:

• the VET Student Loan Ombudsman function, net decrease of $1.5 million, and
• Defence Force Ombudsman function, net decrease of $1.0 million

This was offset by increased funding for:

• Telecommunications and Other Legislation Amendment (Assistance and Access) Act 2018 and Other Cyber-Crime Law Enforcement Powers measure funding ($0.7 million)

Rendering of services revenue for 2020–21 of $3.5 million mainly consists of services delivered to the ACT Government ($3.0 million) and the Department of Foreign Affairs and Trade (DFAT) ($0.5 million).  This is a reduction of $0.6 million from 2019–20 due to the reduced activities for DFAT (2020: $0.7 million) and nil own motion activities (funded by other entities) being undertaken in 2020-21 (2020: $0.4 million).

Assets

Total assets decreased by $0.4 million, key movements include:

• an increase in trade and other receivables ($2.5 million), and
• a decrease in non-financial assets of $3.0 million.

The Trade and other receivables increase of $2.5 million was primarily due to the Appropriation receivable increase caused by the delay of capital activities to 2021–22 ($1.7 million) and the 2020–21 net cash surplus ($0.8 million).

For non-financial assets the decrease of $3.0 million is in line with depreciation and amortisation schedules ($4.4 million).  This has been offset by: the purchase of $1.0 million of new assets in 2020–21, funded through the departmental capital budget appropriation and prior year retained receipts and includes information communication and technology infrastructure and software for the Mobility and Productivity (MaP) project; and, an increase of right of use assets for a new lease in Perth ($0.5 million).

Assets were checked for impairment, a stock take undertaken during the year to ensure completeness and the asset class, leasehold improvements, was revalued as at the 30 June 2021.  Assets are maintained and kept in good working order by the Office.

Liabilities

Total liabilities decreased by $1.3 million, which was mainly due to the reduction in interest bearing liabilities for leases ($2.3 million), in accordance with the leasing schedule, offset by increases for Payables ($0.5 million) and Provisions ($0.6 million) primarily due to increases in employee related liabilities.

Further details can be found in Appendix 2.