Part 4 – Management and accountability

Contents

The tribunals' policies, practices and structure have been designed with sound corporate governance principles in mind. This part sets out what the tribunals have done to ensure that appropriate management and planning processes are in place.

Senior management

Mr Denis O'Brien was the Principal Member of the tribunals from 3 September 2007 until 30 June 2012. On 29 June 2012, the Minister announced the appointment of a new Principal Member Ms Kay Ransome from August 2012 for a term of five years. Deputy Principal Member Ms Amanda MacDonald acted as Principal Member until Ms Ransome commenced on 20 August.

Sections 397 and 460 of the Migration Act provide that the Principal Member is 'the executive officer' of the tribunals and is responsible for their overall operation and administration, including 'monitoring the operations' of the tribunals 'to ensure that those operations are as fair, just, economical, informal and quick as practicable'. Sections 353A and 420A provide that the Principal Member may give written directions as to the operation of the tribunals and the conduct of reviews by the tribunals.

Ms Amanda MacDonald is the Deputy Principal Member of the MRT and RRT. The Deputy Principal Member's responsibilities include member professional development and community liaison arrangements.

Senior members of the tribunals provide leadership and guidance to members. The senior members as at 30 June 2012 were Mr John Billings (Vic), Mr John Cipolla (NSW), Ms Linda Kirk (Vic), Mr Peter Murphy (Vic), Ms Kira Raif (NSW), Mr Shahyar Roushan (NSW), Mr Giles Short (NSW) and Mr Don Smyth (Qld). Ms Sue Raymond (SA), Ms Miriam Holmes (Vic) and Ms Louise Nicholls (NSW) were appointed as senior members from 1 July 2012.

Sections 407 and 472 of the Migration Act provide that the Registrar, the Deputy Registrar and other officers of the tribunals have such duties, powers and functions as are provided by the legislation, and such duties and functions as the Principal Member directs. Mr Colin Plowman is the Registrar and Mr Rhys Jones is the Deputy Registrar.

The governance framework for the tribunals includes:

A Management Board, consisting of the Principal Member, the Deputy Principal Member, the Registrar, the senior members and the Deputy Registrar. The board meets monthly and is supported by governance committees
A Senior Management Group, comprising the Registrar, the Deputy Registrar and senior managers. The group meets monthly and deals with management and planning issues
The Registrar is the general manager of the tribunals' operations and also the chief financial officer. He is assisted by the Deputy Registrar
An Audit and Risk Management Committee (ARMC) oversees the engagement and work program of the tribunals' internal auditors and considers issues relating to risk management.

The 2011–12 Management Board. From left to right, standing, Deputy Principal Member Ms Amanda MacDonald, Senior Member Mr John Cipolla, Registrar Mr Colin Plowman, Senior Member Mr Peter Murphy, Senior Member Mr Don Smyth, Senior Member Ms Linda Kirk, and seated, Deputy Registrar Mr Rhys Jones, Senior Member Mr Giles Short, Principal Member Mr Denis O'Brien, Senior Member Ms Kira Raif and Senior Member Mr Shahyar Roushan. Senior Member Mr John Billings was interstate on the day the photograph was taken.

Corporate and operational plans

The operations of the tribunals are funded through annual appropriations made by the Commonwealth Parliament. Portfolio Budget Statements are prepared bi-annually and set out the proposed appropriations to government outcomes. The statements identify a single outcome for the tribunals:

To provide correct and preferable decisions for visa applicants and sponsors through independent, fair, just, economical, informal and quick merits reviews of migration and refugee decisions.

The statements include performance indicators, and a report against them, is set out in part 3.

The Tribunals' Plan 2011-13 states that the tribunals' reputation depends on professional, effective and courteous dealings with applicants and their representatives, and on the quality, integrity, consistency and timeliness of decision-making. The independence of members in decision-making, the quality of decision-making and the publication of decisions and other information are vital to retaining respect and credibility in relation to tribunal review processes and decisions.

The tribunals strive to maintain a culture that is respectful of people with whom we deal, and to make decisions which achieve the correct or preferable outcome irrespective of representation or language, cultural or other barriers. Maintaining a reputation for delivering consistent, high quality and timely reviews continues to be fundamental to the tribunals' success. The tribunals' plan is available on the tribunals' website.

The tribunals' Operational Plan 2011–12 outlined the key focus areas and activities that the tribunals sought to address. The operational plan reflects the broad strategic priorities in the tribunals' plan as well as operational priorities identified in the section business plans.

The tribunals' caseload and constitution policy is set out annually in a Principal Member direction. This direction sets out operational strategies which take into account current and anticipated caseloads and the priorities to be given to cases.

All tribunal sections have business plans.

Ethical standards

Members are required to act in accordance with a Member Code of Conduct and staff are required to act in accordance with the APS Values and APS Code of Conduct.

All members sign a performance agreement. The agreement requires that a member will act in accordance with the principles set out in the Member Code of Conduct. The code provides that members should behave with integrity, propriety and discretion, and should treat applicants, representatives, interpreters and other persons with respect, courtesy and dignity. The member code of conduct is available on the tribunals' website.

All staff participate in a performance agreement system. Performance management assists the tribunals and staff to: support the achievement of organisational goals and objectives; discuss and set performance goals and assess performance against these goals and objectives; engage in regular, participative and structured feedback on performance; recognise employees for their performance and achievement at work; support the ongoing capability development needs of employees; and identify and manage underperformance.

Risk management

The tribunals have in place an audit and risk management framework, including the ARMC and comprising an independent chair and senior tribunal representatives. Representatives from the ANAO and from Deloitte Touche Tohmatsu, in their capacity as the provider of internal audit services to the tribunals, assist the ARMC. The role of the ARMC is to consider matters that it deems appropriate and which relate to the financial affairs and risk management issues of the tribunals and matters referred to it by the board.

During the year, the tribunals reviewed and revised the ARMC's terms of reference and charter in line with the ANAO's Public Sector Audit Committees Best Practice Guide. Internal auditors concluded reviews of the payroll, finance, registry cash handling, case management allocation, stakeholder management and information technology security functions as part of a three year Internal Audit Plan.

During the year, the tribunals also developed a risk register as part of the operational plan and updated the financial delegations and Chief Executive Instructions (CEIs).

The tribunals' business continuity plan is supported by memoranda of understanding with the department and with other federal merits review tribunals (the AAT, the Social Security Appeals Tribunal and the Veterans' Review Board) to provide assistance to each other in the event of a disruption to services or facilities.

Fraud control

The tribunals will review its 2010–12 Fraud Control Plan in 2012, in accordance with the Commonwealth Fraud Control Guidelines.

External scrutiny

The tribunals are subject to external scrutiny through the publication of decisions and country advice, judicial review by the courts, annual reports to parliament, appearances before parliamentary committees, complaints to and enquiries by the Commonwealth Ombudsman, and reports and enquiries by the ANAO and other bodies. The tribunals interact with agencies including the ANAO on compliance issues, and closely monitor parliamentary committee reports and other reports across the public sector.

Section 440A of the Migration Act requires the Principal Member to give the Minister a report every four months on the conduct of RRT reviews not completed within 90 days and requires the Minister to table these reports in parliament.

Whole-of-government reforms

The tribunals undertook a range of activities to implement whole-of-government reforms during the year. Extensive work was undertaken on the Information and Communications Technology Review (the ICT review), which included identifying savings proposals, developing reinvestment proposals, identifying opportunities to reduce energy use and meeting detailed ICT reporting requirements. The tribunals also developed a P3M3™ Capability Improvement Plan.

In relation to whole-of-government procurement arrangements, the tribunals continue to source desktop licensing through the Microsoft Volume Sourcing Agreement, procure desktop and laptop computers through whole-of-government arrangements co-ordinated by the Australian Government Information Management Office and procure printers and multi-function devices through whole-of-government arrangements for major office machines coordinated by the Department of Finance and Deregulation (DoFD).

The tribunals have liaised with the assigned lead agency towards participation in the internet gateway reduction process. The tribunals have joined whole-of-government telecommunications arrangements for mobile carriage and are exploring arrangements for fixed voice and data in 2012–13.

The tribunals are included in a cluster arrangement covering travel, and travel is arranged in accordance with the government's Use of the Lowest Practical Fare for Official Air Travel policy. A whole-of-government stationery and office supplies panel arrangement was established on 7 March 2012. The tribunals are developing business requirements for the transition to this new arrangement.

Consistent with Commonwealth Property Management Guidelines, the tribunals provide detailed data for the Australian Government Property Data Collection and are developing a property management plan.

Freedom of information

Agencies subject to the Freedom of Information Act 1982 (FOI Act) are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report. Each agency must display on its website a plan showing what information it publishes in accordance with the IPS requirements. The tribunals' IPS information (including an IPS plan) is available from the tribunals' website.

Human resources

The tribunals comprise members appointed under the Migration Act and staff appointed under the Migration Act and employed under the Public Service Act 1999.

The tribunals recognise that it is through our members and staff that we achieve the tribunals' objectives and the outcomes expected by government. The tribunals seek to create an environment where members and staff are supported and encouraged to be professional and courteous, to deliver quality services, to uphold values and codes of conduct and to contribute to organisational improvements.

The tribunals are committed to providing a workplace that:

values diversity and the contributions made by people;
encourages ethical and good workplace behaviour;
is productive, professional and delivers quality and timely service;
actively identifies and addresses health and safety issues; and
supports members and staff to balance work with their family and community responsibilities and lifestyle choices.

The work of the tribunals is recognised as important, challenging and stimulating. Remuneration and conditions are commensurate with responsibilities.

Members

Members are appointed by the Governor-General for fixed terms on a full-time or part-time basis. The remuneration of members is determined by the Remuneration Tribunal, and their terms and conditions of employment are determined by the Minister. The Remuneration Tribunal's determinations are available on its website at www.remtribunal.gov.au.

Persons appointed as members have typically worked in a profession or have extensive experience at senior levels in the private or public sectors. The work is suited to working on a part-time basis and 56% of members are part-time.

Table 4.1 sets out the tribunals' membership as at 30 June 2012.

A list of members and their appointment periods as at 30 June 2012 is available in appendix 1 of this report. Member biographies are available on the tribunals' website.

Table 4.1 – Membership as at 30 June 2012

	Women	Men	Total
Principal Member	0	1	1
Deputy Principal Member	1	0	1
Senior members	3	6	9
Full-time members	15	21	36
Part-time members	48	17	65
Total	67	45	112

Member recruitment

Following a selection process undertaken during early 2012, an additional three senior members, 14 full-time members and 18 part-time members were appointed with effect from 1 July 2012, for terms of three or five years.

Table 4.2 sets out the membership as at 1 July 2012.

Table 4.2 – Membership as at 1 July 2012

	Women	Men	Total
Principal Member	0	0	0*
Deputy Principal Member	1	0	1
Senior members	6	6	12
Full-time members	22	28	48
Part-time members	59	23	84
Total	88	57	145

Note: Deputy Principal Member Ms Amanda MacDonald acted as Principal Member from the conclusion of Mr Denis O'Brien's appointment in June until Ms Kay Ransome commenced on 20 August 2012.

Member professional development and performance

To achieve the objective of having skilled, motivated and adaptable members, the tribunals conduct annual performance reviews for all members, with mid-year updates. The member performance review and assessment process is designed to ensure member performance is assessed fairly and equitably, and in a manner that does not compromise the member's decision-making independence.

Performance reviews provide direction for the member professional development program by identifying members' training and development needs. The process involves members reflecting on their own performance against a framework of competencies and identifying their learning needs, with senior members providing feedback and guidance.

Member Professional Development Committees are responsible for providing a consistent point of reference for the delivery of a quality professional development program. The committees are chaired by the Deputy Principal Member who has responsibility for the professional development of members.

The professional development program generally consists of two sessions per month covering legal issues, country of origin information, member forums on caseload issues, practice management and personal development skills, and information technology. Highlights for the year included a briefing on political and social developments in Egypt, and a briefing on Afghanistan cultural and social issues.

In February 2012, Professor Jane McAdam delivered training in complementary protection for members. Professor McAdam provided an overview of Australia's complementary protection regime, in an international context, and examined how similar terms have been interpreted in international and foreign jurisprudence.

A significant focus of professional development is new member induction, which assists new members to understand their role and to quickly acquire knowledge of relevant legislation, tribunal procedures, case issues and working arrangements.

Members also attended various external conferences and presentations in the areas of decision-making in a tribunal context, administrative and migration law.

Staffing

Professional staff support to members is vital to efficient and lawful conduct of reviews. An important role of staff is the provision of member and client services. Registry staff are the point of contact when applicants or their representatives lodge review applications or deal with the tribunals on issues concerning the conduct of reviews. Efficient and effective staff dealings with all stakeholders are essential for good tribunal performance and are important to our professional reputation. Important values are understanding and responding to client needs and seeking to improve services for individuals, families, businesses and the community.

Country Advice and Information Services and Legal Services staff provide high quality advice and information to members to support the conduct of reviews. Caseload Strategy, Finance and Business Services, Human Resources, Policy and Coordination and Technology Services staff provide a range of enabling services to support the operation of the tribunals and the delivery of high quality decisions.

Staff are employed under the Public Service Act 1999 and are appointed as tribunal officers under the Migration Act. As at 30 June 2012, the tribunals employed 303 APS employees comprising:

255 ongoing full-time employees;
37 ongoing part-time employees;
10 non-ongoing full-time employees; and
One non-ongoing part-time employee.

Table 4.3 sets out the number of staff employed as at 30 June 2012. Approximately 39% of employees are men and 61% are women.

Further staffing statistics are set out in appendix 2.

Table 4.3 – Staff as at 30 June 2012

	New South Wales Registry		Victoria Registry		Total
APS Level	Women	Men	Women	Men
APS 1	1	0	0	0	1
APS 2	2	4	2	1	9
APS 3	25	10	18	9	62
APS 4	32	16	11	5	66
APS 5	23	11	12	6	52
APS 6	18	18	7	6	49
Legal Officer	5	4	2	4	15
Executive Level 1	11	11	4	2	28
Senior Legal Officer	3	2	2	2	8
Executive Level 2	4	2	2	1	9
Principal Legal Officer	1	0	0	0	1
SES B1	0	1	0	0	1
SES B2	0	1	0	0	1
Total	124	79	60	38	303

Workforce planning

The tribunals continue to review strategies to attract and retain quality staff. A wide range of skills and expertise are required, from general administrative staff, to lawyers, accountants, and technology professionals. Staff are employed across 10 sections: Caseload Strategy, Country Advice and Information Services, Executive, Finance and Business Services, Human Resources, Legal Services, the New South Wales Registry, Policy and Coordination, Technology Services and the Victoria Registry.

The tribunals participate in and take a close interest in the annual State of the Service survey conducted on behalf of the Australian Public Service Commission (APSC). This survey is conducted across APS agencies and employees, and provides valuable information on employees' views on a range of issues including attraction and retention. The survey results are available on the APSC website and identify areas where APS agencies perform well and areas where there is a need for improvement or review.

With changes in the availability of skills and changing expectations about the length of time a person may stay in one job, the tribunals are conscious of the need to be flexible in approach and expectations. The ways in which vacancies are advertised, the nature of the work, the workplace environment, training, personal development and advancement, remuneration and flexibility of conditions are all factors which impact on our capacity to attract and retain quality staff.

Learning and development

A changing work practice environment requires us to do our core business well, to define roles, standards and expectations clearly and to identify good performance. A major focus for the tribunals during the year was on leadership development with all executive level managers participating in a structured program. Other targeted training included client satisfaction workshops to help improve client service delivery for registry staff, selection committee training and team leadership training. Organisational-wide training focussed on workplace resilience, employee self-service information sessions and in-house sessions on the new complementary protection arrangements.

Individual development and training needs are identified through the performance agreement system. The objectives of the performance agreement system are:

providing a clear link between individual performance, and organisational priorities and plans;
improving communication between employees and supervisors;
determining learning and development needs and appropriate activities; and
defining supervisor and employee responsibilities and expectations.

An online centralised performance agreement system was introduced into the tribunals at the end of 2011. The system stores individual performance agreements and provides reporting and monitoring functionality.

The tribunals have a studies assistance scheme. A total of 21 staff undertook approved courses of study, taking a total of 86 days study leave and being reimbursed $56,109 in course fees.

Executive remuneration

The tribunals have two Senior Executive Service (SES) officers. Remuneration and conditions are set through determinations under section 24(1) of the Public Service Act 1999, taking into account current APS remuneration levels and the market demand for the skills of the officers.

Enterprise agreement

The tribunals' certified agreement was replaced by a new enterprise agreement on 16 May 2012, which covers all non-SES employees. The nominal expiry date is 30 June 2014.

The objectives set out in the agreement aim to facilitate achievement of the goals and objectives of the tribunals by:

encouraging employees and managers to manage and prioritise workloads within reasonable working hours;
maintaining a strong performance-based culture;
increasing operational efficiency with streamlined administrative processes and working arrangements;
recognising and valuing the participation of employees;
attracting and retaining staff;
providing a positive working environment;
providing flexibility in working hours to assist employees balance their professional and personal lives; and
upholding the APS Values.

The agreement includes provision for:

access to an employee assistance program;
study assistance;
a public transport loan scheme;
influenza vaccination and eyesight testing;
allowances for first aid officers, fire wardens, health and safety representatives and harassment contact officers;
a period of five years for return to work, or access to part-time work, following the birth or adoption of a child;
a four-part performance rating scale;
access to unpaid career interval leave after five years of service;
contributions towards promoting good health; and
salary increases that provide 3% average annual wage increases over the life of the agreement.

Table 4.4 sets out the salary range as at 30 June 2012. This reflects the most recent salary increase in the agreement, which was 4.75% from 24 May 2012.

Table 4.4 – Salary range pay points

Level	Lowest	Highest
APS 1	$25,311	$46,588
APS 2	$47,698	$52,858
APS 3	$54,282	$58,559
APS 4	$60,459	$65,616
APS 5	$67,398	$72,773
APS 6	$74,584	$83,597
Information Technology (APS 4-5)	$60,459	$72,773
Legal Officer (APS4-6)	$60,459	$83,597
Executive Level 1	$93,201	$103,033
Senior Legal Officer	$93,201	$116,094
Executive Level 2	$112,835	$131,526
Principal Legal Officer	$126,975	$138,003

The agreement also includes an individual flexibility clause which provides for the supplementation of terms and conditions. As at 30 June 2012, supplementary agreements were in place with 11 employees in accordance with the flexibility clause.

Salary advancement through pay points at each classification level occurs where an employee is assessed as 'effective' or above in their most recent performance appraisal and if a broadband applies, meeting any requirements for advancement.

Five officers at the EL2/SES levels received performance pay. An aggregate amount of $30,361 was paid in performance-linked bonuses during 2011–12 in respect of performance in the 2011 calendar year. The average bonus payment was $6,072, and payments ranged from $3,247 to $8,238.

Work health and safety

The Work Health and Safety Act 2011 (WHS Act) came into effect on 1 January 2012. Consequently, the tribunals have commenced a process of reviewing all WHS-related policies, procedures and practices to ensure compliance with legislation and consistency with the model codes of practice.

The tribunals have an established health and safety management arrangement, which commits to ensuring the health and safety at work of members, staff, contractors and visitors through:

providing and maintaining a healthy and safe work environment;
providing financial and other resources to ensure that necessary WHS programs and activities are established and maintained;
providing a forum for consultation and cooperation on WHS matters;
complying with legislation as a minimum standard and implementing in full the requirements of the WHS Act in all aspects of the tribunals' business;
making all levels of management within the tribunals accountable for WHS; and
ensuring that all members and staff of the tribunals are aware of their obligations under the WHS Act.

The tribunals' health and safety representatives are elected as required under the WHS Act. All representatives attend a five day training course that covers their responsibilities under the WHS Act. WHS committees in Sydney and Melbourne meet regularly.

No investigations were conducted under the WHS Act during 2011–12, and there were no notifiable incidents, or any directions or notices given.

The tribunals' focus is on reducing the social and financial cost of workplace injury and illness through timely intervention, promoting preventative activities and improving WHS capability. WHS and preventative activities undertaken in the tribunals during the year included:

providing office and workstation assessments by professional occupational therapists and physiotherapists;
facilitating instruction and education by occupational therapists and physiotherapists of members and staff in correct ergonomic practices and injury prevention;
providing influenza vaccinations in the workplace;
improving awareness of health and safety issues of members and staff through improved WHS induction training and processes;
updating and improving general WHS information provision;
improving local purchasing procedures to ensure WHS risks are assessed prior to purchasing; and
reviewing and developing the tribunals' guidelines with WHS implications thereby improving consistency of responses across the tribunals and enhanced WHS practices relating to critical incidents.

Workplace diversity

The tribunals value a workplace free from discrimination and harassment, and seek to ensure that employment decisions are based on merit. Through the enterprise agreement, the tribunals emphasise flexibility and choice for employees to enable balance between work, family, community and lifestyle choices.

The tribunals' workplace diversity program focuses on strategies to facilitate an understanding of workplace diversity principles and to ensure fairness and inclusiveness are applied in all business activities, and in human resource policies and practices. The principles underlying the workplace diversity program are:

treating each other with respect and dignity;
making decisions based on equity and merit;
recognising people as individuals and valuing their diversity;
using the contributions that people can make to the tribunals;
taking appropriate action to identify and deal with discrimination and harassment; and
providing a safe, secure and healthy working environment.

In response to the government's commitment to increase the representation of indigenous employees in the APS to 2.7% by 2015, the tribunals increased efforts to recruit and retain indigenous employees. During the year, an indigenous cadet, recruited via the centralised APSC Indigenous Pathways to Employment program, continued a structured program of rotations through various sections of the tribunals.

The tribunals' Reconciliation Action Plan 2012 is being prepared for endorsement by Reconciliation Australia. As part of the tribunals' ongoing commitment and support to Aboriginal and Torres Strait Islander culture and heritage, a program of events in the tribunals' Sydney and Melbourne offices included the celebration of NAIDOC Week, National Sorry Day and Reconciliation Week. The tribunals' workplace diversity program includes the celebration of the UN International Day of the World's Indigenous People and Harmony Day.

The tribunals are committed to providing a workplace that is safe and free from behaviour that may reasonably be perceived as harassing, intimidating, overbearing, bullying, or physically or emotionally threatening and ensuring that all employees are treated with respect and courtesy. To ensure the safety, rights and obligations of members and staff, complaints handling is based on confidentiality, impartiality, procedural fairness and protection from victimisation.

Information is provided to all to staff and members in regard to workplace harassment prevention. Consistent with the tribunals' Workplace Harassment Prevention Guideline, workplace harassment contact officers were appointed and trained as required during 2011–12.

Disability reporting

The tribunals' disability reporting is through the APSC's annual State of the Service Report.

Changes to disability reporting in annual reports

Since 1994, Commonwealth departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007-08, reporting on the employer role was transferred to the APSC's State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010–11, departments and agencies have no longer been required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by a new National Disability Strategy which sets out a 10 year national policy framework for improving life for Australians with disability, their families and carers. A high level report to track progress for people with disability at a national level will be produced by the Standing Council on Community, Housing and Disability Services to the Council of Australian Governments and will be available at www.fahcsia.gov.au. The Social Inclusion Measurement and Reporting Strategy agreed to by the government in December 2009 will also include some reporting on disability matters in its regular How Australia is Faring report and, if appropriate, in strategic change indicators in agency annual reports. More detail on social inclusion matters can be found at www.socialinclusion.gov.au.

Ecologically sustainable development and environmental performance

The Environment Protection and Biodiversity Conservation Act 1999 sets out the principles of ecologically sustainable development. Members and staff are encouraged to contribute to reducing the tribunals' impact on the environment. The tribunals use 100% recycled A4 paper and lower energy computers, encourage the use of double-sided printing, promote awareness about the use of electricity and water, and are actively moving to the storage and use of electronic records and documents. Walk to Work and Ride to Work days have significant participation by members and staff, and support from management.

Green Committee

The tribunals' Green Committee identifies opportunities and develops proposals for more environmentally sustainable practices, processes, purchasing and disposals. The committee promotes an environmentally sustainable culture within the tribunals, consistent with the tribunals' environmental policy.

Purchasing

The tribunals' purchasing arrangements with suppliers include contracts and notified consultancies, interpreting services, communication services, rental of property, and other goods and services. All purchases over $10,000 are recorded on AusTender and the tribunals comply with the Senate Order on Departmental and Agency Contracts by publishing on the tribunals' website details of contracts exceeding $100,000 in value. The tribunals' Annual Procurement Plan is also published on its website.

All purchasing is conducted in accordance with the Commonwealth Procurement Guidelines and CEIs. In line with these policies, the tribunals conduct procurement with value for money as the core principle. This is achieved through encouraging competition, the efficient, effective, economical and ethical use of resources, and accountability and transparency in decision making. Official air travel is arranged consistently with the government's Use of the Lowest Practical Fare for Official Air Travel policy.

The tribunals provided information and participated in activities related to scoping studies being conducted regarding whole-of-government procurement during the course of the year.

No contracts or offers were exempted from publication in AusTender. The tribunals use a standard contract pro forma with provisions providing for access by the Auditor-General.

The tribunals did not have any competitive tendering and contracting contracts during 2011–12 for the provision of services previously performed in-house.

Asset management

The tribunals manage over 1,000 assets with a combined value of $4.5 million. The major asset categories include fit-out, office machines, furniture and fittings, information technology equipment and intangible assets (software). Assets are depreciated at rates applicable for each asset class.

Accrual-based monthly reports are prepared on the progress of purchases against capital plans and depreciation against the budget in order to achieve effective asset management. Bi-annual stocktakes are performed to update and verify the accuracy of asset records. During the year, the tribunals engaged the Australian Valuation Office to revalue its fixed assets.

Consultancy services

A range of services are provided to the tribunals under contract, including consultancy services. Consultants are distinguished from other contractors by the nature of the work they perform. A consultant is an individual, a partnership or a corporation engaged to provide professional, independent and expert advice or services that will assist with agency decision making.

The tribunals engage the services of consultants when: there is a need for specialist knowledge or skills; an independent assessment or opinion is desirable; the proposed consultancy meets corporate objectives or will bring about productivity savings; and alternatives to the use of a consultant have been considered. In determining whether contracts are for consultancy or non-consultancy services, the tribunals have regard to the Guidance on Procurement Publishing Obligations published by DoFD.

During 2011–12, four new consultancy contracts were entered into involving total actual expenditure of $51,661 (there were no expenditures in 2011–12 on one contract). All contract values exceeded $10,000. No ongoing consultancy contracts were active during 2011–12. Information on expenditure on contracts and consultancies is also available on the AusTender website at www.tenders.gov.au.

Table 4.5 sets out the tribunals' annual expenditure on consultancy contracts.

Table 4.5 – Annual expenditure on consultancy contracts

Consultant name	Description	Expenditure	Selection process	Justification
Buchan Consulting	Stakeholder survey 2011–12 (started 6 December 2011, ended 30 June 2012)	$30,711	Open tender	Need for independent research or assessment
Property Control Group Pty Ltd	Property search and lease negotiations (started 17 April 2012, ended 1 July 2012)	$6,600	Direct source	Need for additional accommodation due to member and staff increases
Mine Development Services Pty Ltd	Records management and business analysis (started 23 November 2011, ended 30 June 2012)	$14,350	Direct source	Design records management plan to obtain a Certificate of Destruction Authority

Purchaser/provider arrangements

All agencies are required to report on purchaser/provider arrangements. Purchaser/provider arrangements relate to arrangements where the outputs of one agency are purchased by another agency to contribute to outcomes.

Purchaser/provider arrangements can occur between Commonwealth agencies or between Commonwealth agencies and state or territory government, or private sector bodies. The tribunals have no purchaser/provider arrangements.

The tribunals have a service delivery agreement with the AAT for the provision by the AAT of accommodation, registry and support services in Adelaide and Perth, and registry and support services in Brisbane. The tribunals have members based in each of those locations. The tribunals also have a service delivery agreement with the department, for the provision by the tribunals of country advice and legal services to the IPAO.

Discretionary grants

All agencies are required to report on discretionary grants. Discretionary grants are payments where discretion is used to determine whether or not a particular body receives a grant. The tribunals did not provide or receive any discretionary grants during 2011–12.

Advertising and market research

All agencies are required to report on advertising and market research. During 2011–12, the tribunals spent $19,959 (inclusive of GST) on advertising services. The tribunals did not engage any market research services.

Table 4.6 sets out the tribunals' expenditure on advertising services in 2011–12.

Table 4.6 – Expenditure on advertising services

Vendor	Amount	Description
Adcorp Australia Ltd	$19,959	Employment advertising
Total	$19,959

Correction of errors in previous annual report

An error in the MRT lodgements figure for 2009–10, and reported in the 2009–10 and 2010–11 annual reports, has been identified and corrected in this report. MRT lodgements for 2009–10 were 8,333 not 8,332.