The Official Secretary, in his role as Chief Executive Officer, is responsible for managing the Office in a way that promotes the proper use of Commonwealth resources. Details of this role and the key elements of the governance framework that applies to the Official Secretary are specified in the Financial Management and Accountability Act 1997. The Official Secretary fulfils this role through a range of management processes, including by chairing fortnightly management committee meetings (involving the Official Secretary and the heads of the Executive, Honours Secretariat and Corporate Management branches) and chairing meetings of the Office's Audit Committee, which are held three times each year.

As shown above in Figure 1, the Office is structured into three functional branches that have responsibility for executive support and the household, corporate management and property, and administration of the Australian honours system. Branch managers are responsible for establishing operational priorities within the Office's business plan, using resources efficiently and effectively to achieve agreed outcomes, and monitoring and reporting on team and individual performance through the Office's performance development scheme.

In November 2002, the former Household and Property branch was abolished, with the household functions moving to the Executive branch and the management of the official properties moving to the Corporate Management branch. This restructuring was undertaken to realign functional arrangements and to reduce costs.

Corporate Management branch supports the Official Secretary's overall governance responsibilities by facilitating the development of business plans, establishing policy and accountability frameworks, managing risk, fraud and security planning, setting frameworks for and advising on people management issues, managing industrial relations issues, and overseeing the total budget management of the Office.

The Audit Committee endorses the annual audit programme for the Office, considers the recommendations contained in individual reports, and monitors the implementation of any changes in policies and practices flowing from such recommendations. The committee also receives and approves the Office's annual Financial Statements and associated audit report.

The Office has a Workplace Consultative Committee, chaired by the corporate manager, which provides a forum for consultation on pay and employment conditions and for monitoring the implementation of employment policies and practices. The Office also has an Occupational Health and Safety Committee, chaired by the corporate manager, which meets regularly to monitor health and safety issues in the Office.

The Office is expected to realise some productivity gains through the improvement of the accounting and operational environment, the implementation of the recommendations outlined in the review of the Honours Secretariat, further enhancements to the information technology infrastructure, the reorganisation of the Office and in the further development of staff skills and knowledge. These gains will mostly be in the form of improved processing, timeliness and quality.

The Office sought tenders for the provision of its internal audit services in August 2002. WalterTurnbull, the firm which has been the Office's internal auditor since 1999, was successful in retaining the contract. The contract is for a three-year period ending on 30 June 2005.

The Office's Audit Committee comprises the Official Secretary, as chairman, the corporate manager, and one other branch manager on rotation. Representatives of the Australian National Audit Office and the Office's internal audit contractors, WalterTurnbull, also attend committee meetings as observers. The Audit Committee met three times in 2002-03.

In accordance with the agreed audit programme, WalterTurnbull conducted reviews into the following areas during 2002-03:

The findings of the compliance audits showed that the Office was essentially compliant with its policies and procedures while adopting an appropriate risk-aware approach relating to its operations in these areas. At the end of the reporting period some minor matters in regard to recommendations made in the reports were in the process of being implemented.

The performance audits raised a number of issues for the Office to consider. The review of the correspondence and registry systems concluded that there was a need to develop a documented policy and that the software being used should be upgraded to better support the needs of the Office. The Office is seeking software that will better suit its needs over the coming months, and will endeavour to implement a new solution before the end of 2003-04. The information security review concluded that, overall, the policies and procedures surrounding information security were managed adequately and appropriately. The Office's procurement policy will be reviewed to take account of the recommendations for best practice arising from the review of contract management.

In September 2003, the Auditor-General provided an unqualified audit opinion on the Office's 2002-03 Financial Statements. The Office was not the subject of any agency-specific audits, investigations or reviews during the financial year.

Standards of appropriate behaviour for employees of the Office are set out in the Office's code of conduct, which was endorsed in its 2002-05 certified agreement, as well as in the previous agreements. The code of conduct reflects the Australian Public Service Code of Conduct and Values as set out in the Public Service Act 1999. To ensure that staff are aware of the standards, the certified agreement is made readily accessible on the Office's intranet. New starters with the Office are required to sign a statement saying that they have read and understand the Office's code of conduct.

Financial management and accountability requirements for the Office are laid down in Chief Executive Instructions (CEIs), which are issued by the Official Secretary under the Financial Management and Accountability Act 1997. The CEIs are cross-referenced to relevant parts of the Act to ensure that staff with delegated responsibilities are fully aware of their legal obligations. The CEIs for the Office are available to all staff on the Office's intranet.

New Performance Support Framework

In December 2002, the Office introduced a new Performance Support Framework (PSF) for the management of individual performance and the identification of learning and development needs to assist in improving individuals' knowledge and skills. Each staff member's PSF cycle is based on his or her contract employment date and includes both six-monthly and annual reviews. There is a four-point assessment scale for rating individual staff members' performance.

As part of the PSF development and implementation process, a number of workshops were conducted to outline the new scheme and to seek staff feedback on the proposed policy and operating arrangements. A further workshop was conducted for supervisors, addressing their roles and responsibilities in relation to the new scheme.

The PSF replaces the Performance Development Scheme which had operated in the Office since 1998 and which, following an audit of its operations, was found to be not meeting the needs of the Office or of individual staff members.

In response to the Government's request that all agencies develop an environmental management system, the Office engaged DASCEM Holdings Proprietary Limited to assist with the development of a formal management system to allow the Office to identify and manage environmental risks and improve environmental performance. At the same time, an environmental audit was conducted at both Government House in Canberra and Admiralty House in Sydney. The audit found a high level of awareness and commitment to environmental management across the Office.

The major environmental issue identified during the audit was the presence of unused underground fuel storage tanks at both residences. By the end of the reporting period the Office had commissioned an investigation of the underground fuel storage tank at Government House and was working with the National Capital Authority and the Australian Heritage Commission towards the tanks being removed or filled with sand or concrete. Other recommendations from the audit will be progressively implemented over the coming twelve months.

During the year the Office developed and implemented a 'connectivity' project aimed at improving the physical and network connections between communication systems at Government House and other communication networks. The project required the laying of optical-fibre cabling along Dunrossil Drive and the establishment of connections to the Icon and Ministerial Communications networks. The level of connectivity resulting from this work has greatly improved the Office's technology infrastructure. The next stage of the project is to put in place enhanced internet service provider and security arrangements.

A number of other improved information technology outcomes were achieved during the year in accordance with the Office's strategic plan. These initiatives included:

In July 2003 the Office commissioned Infront Systems Proprietary Limited to work with the Office to develop the 2003-06 Technology Strategic Plan, to identify those business outcomes in relation to which investments in technology will provide the greatest return for the Office. The plan will be used as the guide for the Office's information technology operations for the next three years, with annual reviews to measure achievement and identify any change in requirements.

In January 2003 the Office conducted a review of its Risk, Fraud and Security Plans and established 2002-03 operational plans for each of these areas. The plans, integral components of the Office's operating environment, are linked to the Office's 2002-05 Business Plan and used as avenues for continuous improvement. Performance against the various operational plans was reviewed on a quarterly basis and at the end of the financial year. Considerable achievements were made against the plans, and items remaining incomplete at the end of the financial year were rolled over into the 2003-04 operational plans.

Physical security arrangements were enhanced during the year with the introduction of identity cards for staff and visitors. The Office is continuing to work closely with the Protective Security Coordination Centre (PSCC) and Australian Protective Services (APS) to best manage the physical security environments at both Government House and Admiralty House. The Office has commenced discussions with PSCC and APS on the development of a memorandum of understanding to clearly set out the roles and responsibilities of all parties involved in security control and operations at the official residences.

In December 2002 WalterTurnbull conducted fraud and risk awareness workshops for all Office staff. The workshops covered the identification of fraud, ways to deal with concerns about fraudulent behaviour, and the Office's code of conduct and fraud reporting arrangements.

The Office has complied with the requirements of the Commonwealth Fraud Control Guidelines through preparing fraud risk assessments and fraud control plans, and through developing procedures and processes for the detection, investigation and reporting on fraud.

Significant achievements

The Office recorded a number of significant achievements in the management of human resources during the 2002-03 financial year, such as the:

Senior executive remuneration

The Office employs no Senior Executive Service (or equivalent level) officers. The remuneration of the Official Secretary is determined by the Remuneration Tribunal.

Remuneration arrangements

The remuneration arrangements for staff are set out in the Office of the Official Secretary to the Governor-General Certified Agreement 2002-05. As at
30 June 2003 there were 75 staff members covered by the certified agreement, and there were three Australian Workplace Agreements in place. The Office's certified agreement does not provide for the payment of bonuses under performance based pay arrangements.

Staffing changes and statistics

As mentioned above, in November 2002 a reorganisation of the Office occurred and the former Household and Property branch was abolished. The household function was moved to the Executive branch and the property function was moved to the Corporate Management branch.

In 2002-03, the Average Staffing Level for the Office was 75.6, slightly above the budget estimate of 75. During the year there were 26 cessations, which was 23 per cent more than in the previous financial year. The increase was mainly due to the cessation of staff temporarily brought on to assist in reducing the backlog of Honours nominations and reorganising the Office as noted above.

The Office's staffing statistics, including information on gender, part time and full time employment and classification levels, as well as information provided in accordance with workplace diversity principles, are at Appendix F.

Developing staff

During the year, training opportunities provided to staff included a variety of management training courses, personal efficiency programmes, courses on Microsoft computer applications, a range of specialist training workshops and seminars, fire safety training, and a turf nutrition seminar for the gardening staff. Three members of staff attended the Springboard development program conducted for women by the Australian Public Service Commission.

The broad range of training and development opportunities provided was aimed at improving staff members' skills and knowledge in the performance of their duties and providing for personal growth. The training and development that was provided was effective in meeting the needs of a range of staff.

In 2003-04 the Office will be developing a more integrated approach to staff development consistent with the new policy and PSF process. In addition, a middle management workshop will be conducted to increase the awareness of policy and operational matters among staff at this level on.

Details of staff training and expenditure by employment category are provided at Table 7.

The Office engages consultants mainly to provide professional and specialist services for works and administration projects, for strategic information technology support and systems development, and to facilitate organisational change and management reforms.

In selecting and engaging consultants, the Office balances the need for open and effective competition with the need to use procurement methods that are cost-effective and efficient. Value for money is always a primary consideration when selecting a consultant. The Office takes advice from the Official Establishments Trust and the National Capital Authority in relation to the choice of appropriately qualified consultants for the provision of professional services relating to the conservation and development of buildings and grounds.

In general, for projects with a value between $2000 and $30 000, the Office directly approaches a group of known suppliers in the market and consults with other relevant government agencies or professional bodies to develop short lists of consultants. Consultancy projects with a value of more than $30 000 usually involve requests for tenders or invitations to register interest.

There were 21 consultants engaged in 2002-03. The total amount paid by the Office for consultancy services was $235 975, showing a small increase when compared with expenditure of $215 696 in 2001-02.

Details of new consultancy contracts awarded in 2002-03 with a value of $10 000 or more are provided at Appendix G. Details of contracts awarded with a value greater than
$100 000 are shown on the Office's website here in accordance with guidelines issued by the Department of Finance and Administration.

In addition to these consultancies, the Office has ongoing contracts to provide a wide range of professional services, including in the areas of internal audit, information technology, temporary staffing arrangements, and property management.

Purchasing activities within the Office were conducted in accordance with Commonwealth procurement guidelines and the Office's CEIs. Work on reviewing the CEIs commenced in 2002-03, with the task to be completed in 2003-04, to ensure they add value to the Office's financial and management environment.

During 2003-04 the Office will establish a number of panels of contractors and suppliers to assist with the efficient and effective operations of the Office. Panels will be established to supply corporate printing services, electrical contractor services, plumbing services and contract staff. Tenders will be requested for the work identified for the first three years of the ten-year painting programme at Government House.

In accordance with the Office's accounting policy, there were a number of revaluations of assets undertaken in 2002-03, involving the land and buildings at both Government House and Admiralty House, fine art objects and antiques, and major items of household furniture and equipment. The Office's valuation policy is outlined in the Notes to and Forming Part of the Financial Statements. In 2002-03, a total of $187 683 was spent on items of plant, equipment and intangibles that each had an individual value greater than $3000. Significant outlays included $59 206 spent on gardening equipment, $70 000 spent on the purchase of replacement motor vehicles, and $54 986 spent on computer hardware. In accordance with the Office's assets policy, items with a value greater than $3000 were capitalised.

In the context of the Commonwealth Disability Strategy, the Office's main responsibility as an employer is to provide an appropriate workplace and policies. In this regard the Office is an equal opportunity employer. Recruitment information is provided through newspaper advertisements and on the Office's website and applications can be made online. Special needs of applicants are catered for on request. Human resource management policies are currently being reviewed and the inclusion of the requirements of the Disability Discrimination Act 1992 will be taken into account in this process.

In respect of the Australian Honours and Awards System, Secretariat staff can assist people with disabilities to make nominations, as the need arises. The Office has developed a number of brochures providing information on the range of honours and awards that may be granted and how to make a nomination. This information is also available on the Office's website and on the website of the Department of the Prime Minister and Cabinet. The Secretariat may be contacted by telephone on 1800 552 275 or by email sent to honours@gg.gov.au to request nomination material. .

The Office's occupational health and safety (OH&S) policy aims to provide a safe working environment to protect the health and wellbeing of its employees from accidents, injury or illness arising in the workplace. The Office's OH&S Committee, which is made up of representatives from each workgroup at Government House and Admiralty House, monitors this policy. Staff elected representatives to the Committee undertake an accredited health and safety practitioners' course.

The OH&S Committee met three times during the year and discussed issues including the testing of microwave ovens and other electrical appliances, the implementation of an environmental management system, the Comcare 'planned investigation' and recommendations discussed below, workstation assessments, and regular feedback on hazards and injury reports.

In 2002-03, two incidents were reported to Comcare under the Occupational Health and Safety (Commonwealth Employment) Act 1991. The incidents, which did not result in major injury, involved a return air grill falling and striking a staff member, and a backpack vacuum cleaner sparking while in use.

In October 2002 Comcare conducted a 'planned investigation' into the Office's policy and operational activities in respect to OH&S. Among the 59 criteria investigated, Comcare identified thirteen areas where the Office's performance could be improved. The Office accepted the eleven recommendations Comcare made and by the end of the reporting period action associated with their implementation was well progressed.

A programme of flu vaccinations was again offered to all staff under the Office's health and welfare programme, with some 34 people taking up the offer. Workstation assessments continued to be conducted for new employees on their commencement at the Office and for employees who changed their physical location. During the year 34 such assessments were conducted and appropriate action was taken to ensure the wellbeing of office based staff.

An OH&S training programme was conducted for managers and supervisors in August 2002 and four nominated first aid officers completed refresher courses. Training in building emergency procedures was conducted at Government House in June 2003 for the Chief Fire Warden and wardens. Fire extinguisher training was conducted for relevant staff at the same time.

Section 8 of the Freedom of Information Act 1982 (FOI Act) requires each Commonwealth agency to publish information about the way it is organised and its functions, powers and arrangements for public participation in its work. Each agency must also provide details of documents that it holds and how members of the public can gain access to them.

Special arrangements apply to the Office. Section 6A of the Freedom of Information Act 1982 includes the following provisions:

The FOI Act does not apply to documents of the Council for the Order of Australia or the Australian Bravery Decorations Council, both of which were established by Letters Patent.

In last year's report, it was noted that one FOI request transferred from the Department of the Prime Minister and Cabinet in June was under consideration at the end of the reporting period. This request was responded to in July 2002 and the balance of costs was waived.

Four FOI Act requests for information were received during 2002-03. Two requests were denied and the application fees were retained; one request was denied and the application fee was returned. One request was accepted and the requested documents were released. There were no FOI requests outstanding at the end of the reporting period.

Further information in relation to the operation of the FOI Act is set out at
Appendix H.

In accordance with section 516A of the Environment Protection and Biodiversity Conservation Act 1999, the Office advises that it does not manage any legislation or processes that relate to the Commonwealth's policy on the environment.

In terms of management of the official residences, the Office has developed an environment management policy and system to enhance its efforts in reducing energy consumption, reducing water usage and adopting improvements in other areas of property management within the spirit of the requirements of the Act. The Office will continue to improve its performance in this area in the coming years.

During the financial year the Office placed recruitment advertisements with an aggregate value of $1408 through its advertising provider, hma Blaze.

The Office neither made nor administered any discretionary grants during the financial year.