Putting you first at the centre of what we do. Keeping you healthy and safe at work. Supporting you when you are harmed at work. Ensuring your scheme works and is sustainable.

 

Corporate governance

Comcare’s role is defined in the Safety, Rehabilitation and Compensation Act 1988 (SRC Act) and the Occupational Health and Safety (Commonwealth Employment) Act 1991 (OHS(CE) Act). Comcare is a statutory authority with body corporate status, managed under the provisions of the Commonwealth Authorities and Companies Act 1997 (CAC Act). Comcare’s corporate governance framework is directed at supporting the achievement of organisational goals and ensuring that all legal and regulatory requirements are met.

Diagram 4: Corporate governance framework

Comcare Executive and Director’s meeting

For the purposes of the Commonwealth Authorities and Companies Act 1997 (CAC Act) the Chief Executive Officer is the sole ‘director’ of Comcare. He is assisted in his corporate governance functions by Comcare’s Executive team. The team consists of the CEO, Deputy CEO and General Managers and meets fortnightly. In particular the team oversees the corporate and strategic direction of Comcare.

A Comcare Director’s meeting is held every three months. This meeting includes the independent chair of the Audit Committee, members of Comcare’s Executive team and Comcare’s legal adviser and financial adviser. These meetings focus attention on the three areas of Comcare’s governance obligations

• Accountability (Stewardship)
• Performance (Leadership)
• Conformance (Control).

These meetings establish and maintain frameworks for management in these areas and allow monitoring and review by management.

The Executive Leadership Team (ELT) meets monthly to evaluate the progress of strategic initiatives, and forecast and respond to emerging issues.

Three committees provide strategic and operational advice to Comcare Executive in relation to claims management, regulatory services and corporate management activities. These committees meet at least monthly and consist of the Executive Level 2 and General Managers in the various Divisions.

Audit Committee

Comcare’s Audit Committee and its charter were revised in 2003 – 04 with a number of changes implemented including

• revision of Audit Committee and Internal Audit charters
• enhancement of the Audit Committee’s role to include specific responsibilities related to risk management and fraud
• appointment of an independent chair to the Audit Committee, and changes to its membership
• appointment of a new internal audit provider following a selective tender process.

These initiatives reflect the evolution of audit and its role within Comcare’s overall corporate governance framework. Participation in the ANAO Business Support Process Audit Management
of Internal Audit in Commonwealth Organisations provided reassurance that the approach adopted
in managing the internal audit function is sound.

In 2003 – 04, KPMG provided internal audit services to Comcare and Ernst and Young conducted external audits on behalf of the ANAO.

Prior to arrangements put in place in 2003 – 04, the Audit Committee was chaired by the CEO with other members of the Committee being the full Comcare Executive and representatives from the internal audit provider and the ANAO.

The Committee now comprises the independent chair (Ms Christine Goode, former CEO of ComSuper) together with two General Managers and the General Manager Corporate Management Division.
The internal audit provider and the ANAO attend as observers.

There were five meetings during 2003 – 04. All members or their nominees attended.

Comcare participated in and provided significant input to the following ANAO audits which
were either reported or had commenced at year’s end

• Business Support Process Audit on Management of Insurance and Risk
• Performance Audit of Performance Management in the APS
• Business Support Process Audit report on Management of Internal Audit
  in Commonwealth Organisations
• Performance Audit on Financial Management and Reporting of Special Appropriations.

Internal audit

A three year internal audit plan was prepared, taking into consideration

• Comcare’s strategic plan
• the strategic risks identified and agreed by Comcare Executive
• previous audit programs
• the Audit Committee Chair’s consultations with management including assessment of current risk management assurance measures.

The plan was developed using a risk-based approach to identify focus areas for inclusion in the audit work program. Audits were undertaken in the following areas

• financial compliance
• Management Systems Review and Improvement Program
• data robustness
• information systems support for claims management activities
• claims management reviews associated with initial liability determinations, reconsideration
  of decisions, and quality management systems
• privacy
• OHS investigations.

Risk management

Comcare’s business planning framework provides for linkages to the outcomes of the strategic risk assessment that was undertaken in 2002 – 03 and for risk management to be incorporated into business planning activities.

Ongoing risk management is the responsibility of all Comcare Executive members as part of their normal operations. It is reviewed by the Audit Committee and monitored quarterly by the Director’s Meeting.

Fraud Control Plan

Comcare is committed to the fraud control policy of the Commonwealth. The Attorney General’s Department issued the Commonwealth Fraud Control Guidelines in 2002 to replace the Commonwealth’s Fraud Control Policy. This new policy takes into account developments in corporate governance, business practices and fraud control. The Commonwealth Fraud Control Guidelines of 2002 require agencies to continue to undertake fraud risk assessments and prepare fraud control plans. During 2003 – 04 Comcare conducted a review of its previous Fraud Control Plan to ensure consistency with Commonwealth requirements in the field of fraud prevention and detection.

One hundred investigations of suspected fraud were completed during the year achieving estimated savings of $1,082,322. Potential future savings of $4 million have also been identified from those matters finalised at the investigation stage but awaiting a final outcome.

Four cases were forwarded to the Commonwealth Director of Public Prosecution during the year
with three of these currently before the courts.

During 2003 – 04 Comcare also finalised contractual arrangements for the establishment of a panel
of fourteen providers for Investigation and Surveillance services for the period 1 November 2003
to 30 October 2006.

External review

There were no external reviews into the functions of Comcare during 2003 – 04.

Management of human resources

Table 24: Staffing overview

As at 30 June 2004 Comcare employed the equivalent of 313.6 full time operative staff Australia wide under the Public Service Act 1999.

Classification	Female	Male	Total
APS1	9.6	1.0	10.6
APS2	16.2	16.3	32.5
APS3	40.3	9.0	49.3
GRAD	2.0	1.0	3.0
APS4	29.5	13.8	43.3
APS5	29.4	16.0	45.4
APS6	29.2	27.6	56.8
LA	1.0	0.0	1.0
SLA	1.0	0.0	1.0
PLA	0.0	2.0	2.0
EL1	20.7	21.9	42.6
EL2	6.0	11.8	17.8
SES	2.0	5.0	7.0
CEO	0.0	1.0	1.0
Grand Total	187.1	126.5	313.6

Table 25: Salary ranges as at 30 June 2004

Level	Salary Range ($)
APS 1	18,049– 33,210
APS 2	33,995 – 37,661
APS 3	38,672 – 41,712
APS 4	43,061 – 49,724
APS 5	47,987 – 51,801
APS 6	53,080 – 59,451
EL 1	65,854 – 75,000
EL 2	75,800 – 94,925
Legal Advisors	39,835 – 51,801
Senior Legal Advisors	51,801 – 65,854
Principal Legal Advisor	71,118 – 80,100
SES	98,000 – 112,479

 

Table 26: Staffing by functional area

This table reports on full time equivalent operative staff employed under the Public Service Act 1999 as at 30 June 2004.

Division	Classification	Female	Male	Total
Office of the Chief Executive Officer	APS4	1.0		1
	CEO		1.0	1
Sub Total		1.0	1.0	2
Claims Management	APS1	9.6	1.0	10.6
	APS2	16.2	6.5	22.7
	GRAD	2.0		2.0
	APS3	31.8	9.0	40.8
	APS4	17.0	13.8	30.8
	APS5	22.5	14.0	36.5
	APS6	23.2	12.9	36.1
	EL1	6.6	6.0	12.6
	EL2	3.0	3.0	6.0
	SEB1		2.0	2.0
Sub Total		131.9	68.2	200.1
Regulatory Services	GRAD		1.0	1.0
	APS3	1.0		1.0
	APS4	7.0		7.0
	APS5	4.0		4.0
	APS6	5.0	8.8	13.8
	LA	1.0		1.0
	SLA	1.0		1.0
	PLA		2.0	2.0
	EL1	10.4	10.9	21.3
	EL2	2.0	5.0	7.0
	SEB1		2.0	2.0
Sub Total		31.4	29.7	61.1
Research and Strategy	APS5	1.0		1.0
	APS6		1.0	1.0
	EL1	0.8		0.8
	EL2	1.0	1.8	2.8
	SEB1	1.0		1.0
Sub Total		3.8	2.8	6.6
Corporate Management	APS2		9.8	9.8
	APS3	7.5		7.5
	APS4	4.5		4.5
	APS5	2.0	2.0	4.0
	APS6	1.0	5.0	6.0
	EL1	3.0	5.0	8.0
	EL2	1.0	2.0	3.0
	SEB1		1.0	1.0
Sub Total		19.0	24.8	43.8
Grand Total		187.1	126.5	313.6

Table 27: Staffing by location as at 30 June 2004

Location	No. staff	% total staff
Australian Capital Territory	272	76.8
New South Wales	7	2.0
Queensland	4	1.1
South Australia	4	1.1
Victoria	67	18.9

Table 28: Employment status by gender

The figures in this table reflect actual head count.

	30 June 2003			30 June 2004
	Female	Male	Total	Female	Male	Total
No. of full-time staff	175	131	306	183	126	309
No. of part-time staff	32	7	39	35	9	44
Total staff	207	138	345	218	135	353

Table 29: Staff retention and turnover

This table reports on movements into or out of Comcare during 2003 – 04, specifically the number of ongoing and non-ongoing employees who commenced in or separated from Comcare during the period.

		Female		Male		Total
		On-going	Non-ongoing	On-going	Non-ongoing
SES
	Commencements					0
	Separations					0
EL 1-2
	Commencements	4	1	3		8
	Separations	6	1	5		12
APS 1–6
	Commencements	18	12	10	8	48
	Separations	13	7	13	3	36

Table 30: Workplace diversity profile

The figures in this table reflect actual head count of all employees (including inoperative staff) employed under the Public Service Act 1999 as at 30 June 2004.

Inclusion in the categories Indigenous Australians, People with a Disability and Non-English Speaking Background (NESB) is based on voluntary self-identification by employees.

	30 June 2003		30 June 2004
Diversity Group	No.	% total staff	No.	% total staff
Women	207	60.0	218	61.6
Indigenous Australians	1	0.3	1	0.3
People with a disability	11	3.2	13	3.7
NESB1*	23	6.7	22	6.2

*NESB1:
people born overseas whose first language was not English. NESB2 (a category that includes children of migrants, including those who were born overseas and arrived in Australia before the age of five and did not speak English as a first language, those who were Australian born but did not speak English as a first language and had at least one NESB parent, and those who were Australian born and had neither parent speaking English as a first language) has previously been reported in addition to NESB1. The Australian Public Service Commission (APSC) has reported that its analysis has found that the NESB2 group does not have a substantial employment disadvantage compared to other group of workers, and did therefore not report on this group in 2003 (APSC 2003, State of the Service Report 2002 – 03 p.115). Consistent with the APSC’s approach, Comcare has also discontinued reporting on the NESB2 group.

Senior Executive Service (SES) remuneration

The CEO of Comcare negotiates the nature and amount of remuneration for SES officers and the results of the negotiations are reflected in individual Australian Workplace Agreements made with
each SES staff member.

Performance pay and bonuses

No performance pay or bonuses were paid during 2003 – 04.

Table 31: Agreement making coverage

	30 June 2003			30 June 2004
	CA (% total staff)	AWA (% total staff)	Total	CA (% total staff)	AWA (% total staff)	Total
Non-SES	280 (82.6%)	59 (17.4%)	339 (100.0%)	284 (81.8%)	63 (18.2%)	347 (100.0%)
SES		5 (100.0%)	5 (100.0%)		6 (100.0%)	6 (100.0%)
Grand Total	280 (81.4%)	64 (18.6%)	344 (100.0%)	284 (80.5%)	69 (19.5%)	353 (100.0%)

Commonwealth disability strategy

Comcare recognises the importance of the Disability Discrimination Act 1992 in ensuring the identification and removal of barriers preventing people with disabilities from access to its programs and services and the elimination of discriminatory practices. Comcare endeavours to meet its obligations under the Act through implementation of the Commonwealth Disability Strategy.

Comcare recognises that people with disabilities have the right to participate in all aspects of its operations. At each stage of the development of programs and services, Comcare takes into account the needs of disabled people. Comcare provides an environment that recognises, values, and encourages the contribution of employees with different backgrounds and experiences as well
as physical and intellectual capabilities.

Details of Comcare’s performance during 2003 – 04 in implementing the Commonwealth Disability Strategy are set out in Appendix 9.

Purchasing and procurement

Comcare’s CEO Guideline on Purchasing and Procurement provides the basis for all purchasing decisions and contract management practices. This Guideline is consistent with Commonwealth Procurement Guidelines.

Summary of consultancies

Table 32 lists the consultancies valued at $10,000 or more that were let during 2003 – 04. This reflects the total value of contracts let irrespective of the proposed duration of the contract noting that some contract terms will be greater that one year. Total expenditure on consultancy services 2003 – 04 was $398,453.

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Table 32: Summary of consultancies

Consultancy	Purpose	Cost	Selection Process	Reason
Campbell Research & Consulting Pty Ltd	Survey for return to work monitor	$29,724	6	E
Hinds Workforce Research	Staff survey	$34,650	2	B
Saville and Holdsworth Australia Pty Ltd	Leadership capabilities assessment	$27,750	6	B
Pricewaterhouse Coopers Actuarial Pty Ltd	Review of self insurer licence fee setting methodology	$43,833	2	B
Walter Turnbull	Review of financial monitoring of self insurers	$34,341	2	E
Walter Turnbull	Financial viability assessment of 2 self insurer licence applicants	$13,117	2	A
Noel Arnold and Associates Pty Ltd	Develop information package for Commonwealth employees about occupational health and safety (OHS)	$16,800	2	E
Alphawest	Advice on record keeping systems	$41,610	6	B
Securelink	IT security risk assessment and advice	$123,956	2	B

Selection Process	Reason
1 Advertised publicly	A Specialised skills not available in Comcare in required timeframe
2 Selective tendering process	B Need to access high technological experience or expertise
3 Not advertised as a contract already exists	C Limitations on executive time
4 Sole supplier	D Lack of in-house resources
5 Under Commonwealth contract	E Need for an independent review
6 Sole quotation sought	F Need for an independent agent or facilitator
7 Ministerial direction

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