Appendix 5 Compliance matters
This appendix describes the Australian Institute of Health and Welfare’s (AIHW’s) compliance in 2017–18 with:
- Commonwealth Electoral Act 1918
- advertising and market research
- Equal Employment Opportunity (Commonwealth Authorities) Act 1987 (EEO Act)
- equal employment opportunity programs and reporting
- Legal Services Directions 2017
- legal services expenditure
- Public Governance, Performance and Accountability Rule 2014 (PGPA Rule)
- ministerial directions
- government policy orders
- significant issues relating to finance law non-compliance
- related entity transactions
- significant activities and changes affecting the entity
- judicial or tribunal decisions affecting the entity
- reports by third parties
- unobtainable information from subsidiaries
- indemnity applying to the entity and its officers.
See also ‘Compliance index’.
Advertising and market research
Section 311A of the Commonwealth Electoral Act 1918 requires that Commonwealth agencies report payments of $10,000 and above for advertising and market research, including those covered by the Public Service Act 1999.
In 2017–18, the AIHW did not undertake any advertising campaigns or make any individual payments for advertising that exceeded this threshold.
Equal employment opportunities
Section 5 of the EEO Act requires that the AIHW develop and implement an equal employment opportunity program. The program should ensure that, in relation to employment matters, appropriate action is taken to eliminate discrimination by the AIHW against women and persons in designated groups and promote equal opportunities for people in these groups.
Under section 9 of the EEO Act, the AIHW must report annually on the development and implementation of its program. The report may be submitted to the AIHW’s responsible minister through its annual report. A report should include:
- a detailed analysis of action taken to develop and implement its program
- an assessment of how well program implementation is monitored and evaluated
- an assessment of the effectiveness of the program
- details of each direction given by the minister about the AIHW’s performance obligations under the EEO Act.
The AIHW adopts equal employment opportunity practices common across the Australian Public Service (APS), including access to paid parental leave and maternity leave, and recruitment opportunities specifically for Indigenous people. The AIHW accommodates reasonable requests for flexible working arrangements so that staff can meet family commitments, and seeks to remove obstacles that might discourage people with disability or whose first language is not English from seeking employment at the AIHW.
The AIHW signed a memorandum of understanding (MoU) with the APS Commission in February 2018 to participate in the GradAccess program. GradAccess offers agencies the opportunity to recruit people with disability into graduate roles through a centrally coordinated program managed by the APS Commission. The recruitment process has been designed to encourage the broadest range of graduates to apply through a safe and supported entry point to the APS. The program is strategically aligned with As One: Making it Happen: the APS Disability Employment Strategy 2016–19, the National Disability Strategy 2010–20, the Australian Government’s diversity and inclusion policies, and broader APS reforms. The AIHW hopes to be able to engage at least 1 graduate through this process for its 2019 intake.
The AIHW monitors and evaluates its equal employment opportunity policies by comparing itself against other agencies that similarly contribute information on diversity to the APS Commission’s annual State of the service report to the Parliament of Australia. The AIHW is comparable with other APS agencies; however, notably in relation to equal employment opportunity, it has a higher than average proportion of female employees. Further details are in Chapter 5 Our people.
The AIHW has not received any ministerial directions about its performance obligations under the EEO Act.
Compliance with the Legal Services Directions 2017
The Attorney-General’s Legal Services Directions 2017 require the AIHW to provide— within 60 days of the end of the financial year—to the Office of Legal Services Coordination, Australian Government Attorney-General’s Department:
- a report of the AIHW’s legal services expenditure for the financial year
- a certificate about the service of any documents in respect of legal proceedings involving the Commonwealth (if any).
The AIHW complied with its obligations for 2017–18. The AIHW’s legal expenditure during the year was $141,593.30.
Reporting requirements under the PGPA Rule
The following information relates to specific reporting requirements under the PGPA Rule that must be included in this annual report and which are not covered elsewhere in the report.
Section 7 of the Australian Institute of Health and Welfare Act 1987 (AIHW Act) provides that the Minister for Health may give directions to the AIHW on the performance of its functions or the exercise of its powers. Before issuing such a direction, the minister must consult the AIHW Board Chair and relevant state and territory ministers. Clause 17BE(d) of the PGPA Rule requires that the AIHW provide details of any directions given to it by a minister under an Act; for example, under section 7 of the AIHW Act, or instrument of the Commonwealth.
No new ministerial directions were issued to the AIHW in 2017–18. No instances of non-compliance with current ministerial directions issued to the AIHW are known to have occurred in 2017–18.
Government policy orders
Under section 22 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), Australian Government policy orders can be applied to the AIHW by the Minister for Finance. The AIHW Board must ensure compliance with government policy orders that are applied. Clause 17BE(e) of the PGPA Rule requires that the AIHW provide details of any government policy orders that are applicable to it under section 22 of the PGPA Act. Particulars of any non-compliance must also be detailed.
No government policy orders were applicable to the AIHW during 2017–18.
Significant issues relating to finance law non-compliance
Paragraph 19(1)(e) of the PGPA Act requires the AIHW to notify the Minister for Health of significant issues that have affected it. Clause 17BE(h) of the PGPA Rule requires the AIHW to provide a statement of any such significant issue that relates to non-compliance with the finance law and an outline of the action that has been taken to remedy the non-compliance.
There were no significant issues relating to finance law non-compliance in 2017–18.
Related entity transactions
Clause 17BE(n) of the PGPA Rule requires the AIHW to disclose any related entity transactions. Related entity transactions are those where the AIHW Board approves payment for a good or service provided by another entity, or provides a grant to another entity; and a board member is also a director of that other entity; and a single transaction, or the aggregate value of transactions (if there is more than 1) to that entity in a reporting period exceeds $10,000. Where they have occurred, particulars of the decision-making process undertaken by the AIHW Board in relation to these transactions must also be reported.
There were no related entity transactions approved by the board in 2017–18.
Significant activities and changes affecting the entity
Under clause 17BE(p) of the PGPA Rule, the AIHW is required to provide details of significant activities and changes that affected the operations or structure of the entity during the period.
In the 2018 Federal Budget, the AIHW’s appropriation funding was increased by 25% to an ongoing total of $33 million a year. This increase will fund investment in information technology (IT) to improve data security and also fund new data development and analysis in several subject areas. In response to its increasing focus on appropriate management of data and privacy and, in recognition of the increasing volume of work related to primary health care and digital health, the AIHW will introduce a new organisational structure from 1 July 2018.
Judicial or tribunal decisions affecting the entity
Clause 17BE(q) of the PGPA Rule requires the AIHW to provide details of judicial decisions and decisions of administrative tribunals that have had, or may have, a significant effect on the AIHW’s operations.
In 2017–18, there were no legal actions lodged against the AIHW and no judicial decisions directly affecting the AIHW.
Reports by third parties
Clause 17BE(r) of the PGPA Rule requires the AIHW to provide details of reports made about the Institute by the Auditor-General, a Parliamentary committee, the Commonwealth Ombudsman or the Office of the Australian Information Commissioner.
There were no reports made by the above-named organisations or committees about the AIHW in 2017–18.
Unobtainable information from subsidiaries
The AIHW does not have any subsidiaries; therefore, clause 17BE(s) of the PGPA Rule, which requires the AIHW to detail information that was unable to be obtained from subsidiaries, does not apply.
Indemnity applying to the entity and its officers
Clause 17BE(t) of the PGPA Rule requires the AIHW to provide details of any indemnity that applied to the AIHW Board, any member of the AIHW Board or officer of the AIHW against a liability (including premiums paid, or agreed to be paid, for insurance against the AIHW Board, member or officer’s liability for legal costs).
The AIHW has insurance policies through Comcover and Comcare that cover a range of insurable risks, including property damage, general liability and business interruption.
In 2017–18, the Comcover insurance policy included coverage for directors and officers against various liabilities that may occur in their capacity as officers of the AIHW. Standard premiums were paid to Comcover, amounting to $20,025 excluding goods and services tax (GST), compared with $19,136 for 2016–17.
The AIHW made no claims against its directors and officers liability insurance policy in 2017–18.