Part 5-Management and accountability

• Senior management
• Corporate and operational plans
• Ethical standards
• Risk management
• Implementation of Australian National Audit Office recommendations
• External scrutiny
• Human resources
• Members
• Member professional development and performance
• Staff
• Workforce planning
• Training and development
• Executive remuneration
• Australian Workplace Agreements
• Certified Agreement
• Occupational health and safety
• Workplace diversity
• Disability strategy
• Ecologically sustainable development and environmental performance
• Purchasing
• Assets management
• Consultancy services
• Purchaser/provider arrangements
• Discretionary grants
• Advertising and market research
• Correction of material errors in previous Annual Reports

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 is the Principal Member of the Tribunals. He was appointed from 3 September 2007 for a term to 30 June 2012. Mrs Mary Urquhart is the Deputy Principal Member of the RRT and is also appointed as an acting Senior Member of the MRT.

Sections 397 and 460 of the Migration Act 1958 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.

Senior Members of the Tribunals provide leadership and guidance to full-time and part-time Members. The Senior Members are Ms Rea Hearn Mackinnon (Vic), Mr Bruce MacCarthy (NSW), Dr Irene O'Connell (NSW) (Acting) and Mr Giles Short (NSW).

Sections 407 and 472 of the 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 other duties and functions as the Principal Member directs. Mr John Lynch is the Registrar and Mr Rhys Jones is the Deputy Registrar.

As at 30 June 2008, the administrative framework for the Tribunals was as follows:

• A Joint Management Board (JMB), consisting of the Principal Member, the Deputy Principal Member of the RRT, the Registrar and the Senior Members. The JMB meets monthly.
• A Senior Management Group (SMG), comprising the Registrar, the Deputy Registrar and the Executive Level 2 managers. The SMG meets monthly and deals with management and planning issues. It reports to the JMB and proposes matters for JMB decision.
• The Registrar is the general manager of the Tribunals' operations and also the chief financial officer. He is assisted by the Deputy Registrar.
• The District Registrars (NSW and Victoria) manage their respective registries and report to the Registrar.
• An Audit and Risk Management Committee, which normally meets every quarter, includes a representative of the Australian National Audit Office (ANAO), and oversees the engagement and work program of the Tribunals' internal auditors.
• A Joint Security Committee (JSC) responsible for reviewing security risk exposure and security risk management measures. The JSC meets every six months, or more frequently, if circumstances
  warrant it.
• A Joint Consultative Committee (JCC) established under the staff Certified Agreement provides a forum for consultation on matters including the Certified Agreement and HR policies. The JCC consists of management, staff and union representatives.
• A Member Professional Development Committee (MPDC), comprising the Principal Member, the Deputy Principal Member of the RRT, the Senior Members and two Member representatives. The MPDC is chaired by the Deputy Principal Member of the RRT and normally meets bimonthly.
• A Learning and Development Steering Committee (LDSC) comprising managers and staff and union representatives. The LDSC identifies learning and development priorities and activities for staff.
• A service delivery agreement with the Administrative Appeals Tribunal (the AAT) for the AAT to provide accommodation and support services to part-time Members who are based in Adelaide, Brisbane and Perth.

The Joint Management Board.
From left to right, Giles Short, Senior Member; Rea Hearn Mackinnon,
Senior Member; Denis O'Brien, Principal Member; Irene O'Connell,
Senior Member; Mary Urquhart, Deputy Principal Member RRT and A/g Senior Member MRT;
John Lynch, Registrar; Bruce MacCarthy, Senior Member.

Corporate and operational plans

The structure, jurisdiction and powers of the MRT and the RRT are set out in the Migration Act 1958.

The operations of the Tribunals are funded through annual appropriations made by the Australian Parliament. Agency Budget Statements are prepared bi-annually and set out the proposed appropriations to Government outcomes. The budget statements state that the MRT-RRT is expected to provide visa applicants and sponsors with fair, just, economical, informal and quick reviews of migration and refugee decisions. The budget statements include performance indicators, and a report against these is set out in Part 4 of this Report.

The Tribunals' Plan 2007-2010 states that we want to be known among other things for being highly competent Tribunals delivering fair, just and timely reviews, for our fairness and professionalism, for the quality, integrity and consistency of our decisions, and for being courteous and respectful. The Tribunals' Plan is at Appendix 1.

The Tribunals' caseload and constitution policy is reviewed annually and issued as a Principal Member Direction. The policy sets out operational strategies which take into account current and anticipated caseloads and the priorities to be given to cases. All Principal Member Directions are publicly available.

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 Australian Public Service (APS) Values and APS Code of Conduct.

All Members of the Tribunals sign a performance agreement. The first part of the agreement requires that they will act in their role as a Member of the Tribunals 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, staff and other persons with respect, courtesy and dignity. The Member Code of Conduct is available on the Tribunals' website.

The Tribunals promote adherence to the respective codes of conduct and take appropriate action if a suspected breach of the code occurs. Induction and training programs provide information on the codes and values, while performance and recruitment guidelines and documents identify expectations in relation to values and conduct.

Risk management

The Tribunals have an Audit and Risk Management Committee (ARMC) which generally meets every quarter. All ARMC meetings are attended by senior Tribunal management, representatives from the Australian National Audit Office (ANAO), and from Deloitte Touche Tohmatsu, in their capacity as the provider of internal audit services to the Tribunals. 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 Joint Management Board.

The Tribunals have a Fraud Control Plan which details the Tribunals' strategic approach to fraud prevention, detection, investigation and prosecution in accordance with the Commonwealth Fraud Control Guidelines. Annual fraud data is collected and reported to the Attorney-General's Department. The following certification is provided:

A Business Risk Assessment Internal Audit Plan review was conducted in 2007 with the assistance of the internal auditors, Deloitte Touche Tohmatsu. The review involved managers identifying and reassessing key business risks and risk management processes. This was used as a basis to develop a new three year strategic internal audit plan. Reviews of the Tribunals' Fraud Control and Security plans are scheduled for 2008-09.

The Tribunals' business continuity plan is supported by memoranda of understanding with DIAC and with other federal merits review tribunals (the AAT, the SSAT and the VRB) to provide assistance to each other in the event of a disruption to services or facilities.

Implementation of Australian National Audit Office recommendations

Between 2005 and 2007, the Australian National Audit Office (the ANAO) conducted a detailed performance audit on the management of the Tribunals' operations. The report of the audit was tabled in Parliament on 14 June 2007 - Audit Report No.44 of 2006-07: Management of Tribunal Operations - Migration Review Tribunal and Refugee Review Tribunal. The report concluded that the Tribunals' operations were effectively managed, that the Tribunals had successfully implemented a series of proposals to achieve operational efficiencies, and that the Tribunals had established sound governance arrangements.

The ANAO made 5 recommendations related to strengthening planning, reporting and communication with applicants, representatives and stakeholders. The Tribunals agreed with all 5 recommendations. Table 5.1 sets out the progress made in relation to each recommendation.

Table 5.1 - Implementation of ANAO recommendations

External scrutiny

The Tribunals are subject to external scrutiny through the publication of decisions, appeals to the courts, Annual Reports to Parliament, appearances before Parliamentary Committees, complaints to and enquiries by the Commonwealth Ombudsman and reports and enquiries by the Australian National Audit Office (ANAO) and other bodies. The Tribunals interact with agencies like the ANAO on compliance issues, and closely monitor Parliamentary Committee reports and other reports across the public sector. Hearings of the MRT are generally open to the public.

Section 440A of the Migration Act requires the Principal Member to give the Minister for Immigration and Citizenship a report every 4 months on the conduct of RRT reviews not completed within 90 days and requires the Minister to table these reports in Parliament in a specified period. During the year reports were tabled in September (for March - June 2007), March (for July - October 2007) and May (for November
2007 - February 2008).

In August 2007 the Commonwealth Ombudsman published a report titled Lessons for public administration: Ombudsman investigation of referred immigration cases (Report No. 11, 2007). This report identified ten lessons that were relevant to all areas of government from the eight reports on referred immigration cases which were published by the Ombudsman in 2006 and 2007. It concluded that the administrative problems and errors it exposed were not unique to immigration administration but rather were a risk in all areas of administration. Tribunal staff attended seminars in Sydney and Melbourne in early 2008 on the ten lessons which were conducted by the Senior Assistant Commonwealth Ombudsman.

The MRT and RRT were among 7 tribunals scrutinised by Commonwealth Ombudsman Report No. 12, 2007 (August 2007) Commonwealth courts and tribunals: Complaint-handling processes and the Ombudsman's jurisdiction. This report, which contains a summary of the Tribunals' complaint-handling processes and some comments on common themes, concluded the Ombudsman does have jurisdiction over the administrative actions of the MRT and RRT, but not over merits review decision making.

Commonwealth Ombudsman Report No. 06, 2008 (June 2008) Timeliness of decision making under the Freedom of Information Act 1982 examined difficulties faced by DIAC in administering the FOI Act, the strategies it had developed to address these, areas for further reform, and issues of broader relevance to government. The report noted that DIAC and the Tribunals had been cooperating to improve document transfer processes, including the use of electronic documents, to speed up processing of FOI requests. The recommendations included a recommendation that DIAC and the Tribunals explore and implement strategies aimed at streamlining access to information for clients.

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:

• encourages good workplace behaviour;
• values diversity;
• identifies and addresses health and safety issues; and
• assists Members and staff to balance work, family, community 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 for Immigration and Citizenship. The Remuneration Tribunal's determinations are available on its website at www.remtribunal.gov.au.

As at 30 June 2008 the membership of the Tribunals comprised 92 Members. All Members are appointed to both Tribunals.

The membership as at 30 June 2008 is set out in Table 5.2, and a full list of Members and their appointment periods is available in Appendix 3 of this Report. Approximately 40% of Members are men, and 60% are women.

Table 5.2 - Membership as at 30 June 2008

* The Deputy Principal Member of the RRT is also appointed an acting Senior Member of the MRT.

Persons appointed as Members of the Tribunals have typically worked in a profession or have had extensive experience at senior levels in the private or public sectors. More than 86% of Members work on a part-time basis.

Member professional development and performance

The Tribunals have a highly competent and professional membership supported by continuing professional development and legal, research and administrative staff. All Members take part in the professional development program and have a performance agreement, with appraisals conducted by Senior Members. The quality of decisions, the timeliness of reviews, productivity expectations and participation in professional development and mentoring activities are all factors that are taken into account in performance appraisals.

Although experienced in other fields Members on appointment do not necessarily have detailed knowledge of migration and refugee law, or experience in the conduct of hearings or working with interpreters, or in the preparation of statements of decisions and reasons. For this reason, induction courses for new Members provide a thorough grounding, supported by a program of mentoring and further training over several months.

Even those Members who are proficient and experienced, need continuing education. Members are called upon to determine a wide range of different cases and issues, some of which may arise only occasionally. While there is an obligation upon each Member to be properly informed and prepared when dealing with a case, participation in continuing professional development supports the self-directed research and learning which is part of a Member's work. Most importantly professional development provides the opportunity for knowledge to be shared and built on with colleagues.

The scope of professional development covers legal knowledge and decision-making, but also includes dealing with applicants, representatives and interpreters; understanding gender and cultural differences; effective case management, and dealing with the stress and demands of conducting hearings and writing decisions. Participation in appropriate external conferences also forms part of the program. Members are expected to participate in professional development and training activities on a regular basis and to undertake any development and training requirements identified through the performance appraisal process.

A Member Professional Development Committee is chaired by the Deputy Principal Member of the RRT and comprises the Principal Member, all Senior Members and two other Members. The focus for the Committee over 2007-08 was on strengthening a culture of continuing professional development, and on ensuring that the professional development program met the needs of Members in a way which was consistent with the role and independence of Members. This is fundamental not only to the quality of reviews and consistency of decision making, but also to maintaining Member efficiency and morale and enhancing confidence among stakeholders in Tribunal decision making.

The Tribunals consider it important to include perspectives from inside and outside the Tribunals in relation to these topics. For this reason, external speakers including academics, lawyers and journalists regularly present in the professional development program.

Internal professional development sessions are held monthly. These sessions are coordinated by the Legal Services Section. Seminars, workshops and focus groups aimed at providing Members with an opportunity to address specific topics are scheduled on an ad hoc basis. Members are encouraged through their Senior Members to identify and attend courses, conferences or seminars of relevance to their individual development needs.

A national Members' Conference is held every 12 to 18 months which all Members attend. The conferences are usually held over two days, and typically comprise a mixture of plenary sessions with external and internal speakers, and a number of parallel working sessions. The conference held in Melbourne in February 2008 had a practical and client-focused program. There were sessions on assessing and evaluating mental health expert evidence, listening to the evidence given at hearing and understanding cultural diversity.
A decision writing workshop conducted by the Principal Member at the conference resulted in the development and publication of a Guideline setting out guiding principles for quality decision-making which is now available on the Tribunals' website.

Members also attend external conferences, seminars and courses. Priority is given to opportunities which meet the ongoing development and training needs of Members and which are of direct benefit to the Tribunals.

Staff

An important role of staff is the provision of Member and client services. Professional staff support to Members is vital to the efficient and lawful conduct of reviews. Staff are the point of contact when applicants or their representatives lodge review applications or deal with the Tribunals on issues in relation to the progress of reviews. Efficient and effective dealings by staff 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.

Staff are employed under the Public Service Act and are appointed as Tribunal officers under the Migration Act. As at 30 June 2008, the Tribunals employed 283 APS employees comprising:

• 237 ongoing full-time employees;
• 33 ongoing part-time employees;
• 12 non-ongoing full-time employees; and
• 1 casual employee.

Table 5.3 sets out the number of staff employed as at 30 June 2008. Approximately 37% of employees are men, and 63% are women. These proportions remain consistent for Executive Level 1 officers and above.

Table 5.3 - Staff as at 30 June 2008

Further staffing statistics are set out in Appendix 4.

Workforce planning

The Tribunals continue to review strategies to attract and retain quality staff. A wide range of skills and expertise is required, from general administrative staff, to lawyers, to accountants, to IT professionals. Staff are employed across 11 sections: the Executive Support Section, the Policy and Procedures Section, the Legal Services Section, the Research and Information Services Section, the Caseload Management Section, the NSW Registry, the Victorian Registry, the Human Resources Section, the Technology Services Section, the Finance Section and the Business Services Section.

The Tribunals participate and take a close interest in the annual State of the Service survey conducted on behalf of the Australian Public Service Commission. This survey across APS agencies and employees 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 our approach and expectations. The ways in which vacancies are advertised, the nature of the work, the workplace environment, training, personal development and advancement, and remuneration and flexibility of conditions are all factors which affect our capacity to attract and retain quality staff.

Training 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 focus for training during this year was on expanding the knowledge of the Registry staff in relation to the legislative framework, jurisdiction issues, performance management, management and supervisory skills, cross cultural communication, fair decision making, security and time management.

Individual development and training needs are identified through a 'plan on a page' 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.

The Tribunals have a studies assistance scheme. A total of 35 staff undertook approved courses of study, taking a total of 236 days study leave and being reimbursed $75,639 in course fees.

Executive remuneration

The Tribunals have one Senior Executive Service (SES) officer. Remuneration and conditions were determined through an Australian Workplace Agreement (AWA), taking into account current APS remuneration levels and the market demand for the skills of the particular officer. The AWA made provision for performance pay at a level consistent with other similarly qualified officers in the APS.

Australian Workplace Agreements

Seven non-SES employees have AWAs. The terms and conditions of the AWAs were determined taking into account APS remuneration levels and the skills of the particular employees. Six AWAs provide a responsibility allowance and one provides for the use of an agency-leased car. One AWA provides a retention allowance. The AWAs are comprehensive agreements which provide a similar range of non-salary benefits to those that are set out below in relation to the Tribunals' Certified Agreement.

Seven agreements provide for performance-linked bonuses. These were in respect of one SES officer, one Principal Legal Officer and 5 Executive Level 2 officers. An aggregate amount of $98,189 was paid in performance-linked bonuses during 2007-08 in respect of performance in calendar year 2007 (compared to an aggregate amount of $64,103 in respect of performance in calendar year 2006).

Certified Agreement

The current Certified Agreement covers all other non-SES employees and was certified by the Australian Industrial Relations Commission on 29 November 2005 and the nominal expiry date is 29 November 2008. Negotiations are underway to vary and extend the current Certified Agreement for a period of up to 3 years.

The objectives set out in the Agreement are:

• to attract and retain quality people by having an affordable and attractive package of pay and conditions;
• to ensure our employment conditions continue to meet the needs of the Tribunals and our employees;
• to contribute to the achievement of, and be consistent with, the Tribunals' corporate objectives; and
• to improve productivity through greater efficiency and flexibility in the way that the Tribunals implement Government policy.

Table 5.4 sets out the salary range as at 30 June 2008. This reflects the last salary increase in the Certified Agreement, which was 4.3% from 1 September 2007.

Table 5.4 - Salary range pay points as at 30 June 2008

The Certified Agreement does not provide for performance pay. Salary advancement through pay points at each classification level occurs where an employee is assessed as satisfactory under the performance management system.

The Certified Agreement provides for a range of non-salary benefits, including:

• access to an employee assistance programme;
• study assistance;
• a public transport loan scheme;
• influenza vaccination and eyesight testing;
• contributions towards promoting good health; and
• additional family care costs.

Occupational health and safety

The Occupational Health and Safety (OHS) policies for the Tribunals have been developed through consultation and agreement with Members and staff. The policies will continue to be applied until consultation on and development of Health and Safety Management Arrangements (HSMA) is completed in accordance with the Occupational Health and Safety Act 1991 (the OHS Act).

The aims are to:

• provide and maintain a healthy and safe work environment;
• provide financial and other resources to ensure that necessary OHS programs and activities are established and maintained;
• provide a forum for consultation and co-operation on OHS matters;
• implement the requirements of the OHS legislation in all aspects of the Tribunals' business;
• make all levels of management within the Tribunals accountable for OHS; and
• ensure that all employees and Members are aware of their obligations and that they have the necessary skills to meet these obligations.

The Tribunals' Health and Safety Representatives are elected as required by the OHS Act. All Health and Safety Representatives attend a five day training course that covers their responsibilities under the OHS Act.

OHS Committees in Sydney and Melbourne meet quarterly. No investigations were conducted under the OHS Act, nor were any directions or notices given.

The Tribunals' focus is on reducing the social and financial cost of occupational injury and illness through timely intervention, promoting prevention activities and improving OHS capability. OHS and prevention activities undertaken in the Tribunals during 2007-08 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; and
• improving awareness of health and safety issues for managers and staff through training.

Workplace diversity

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

The Tribunals' Workplace Diversity Program was implemented in February 2006. The Program focuses on strategies to facilitate an understanding of workplace diversity (WD) principles and to ensure fairness and inclusiveness are applied in all business activities, and in human resource policies and practices.

The principles underlying the Program are:

• treating each other with respect and dignity;
• making judgments 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.

The WD Steering Committee, comprising management and staff representatives, undertook an evaluation of the WD Program and surveyed all staff in June 2007 to determine how effectively the Tribunals are performing in providing a fair and inclusive workplace. Overall, the responses to the survey reflected that a strong majority of staff considered that the principles of fairness and equity are well applied in the Tribunals. The outcome of the evaluation resulted in enhancements to the Workplace Diversity Program and other Tribunal policies.

Disability strategy

The Tribunals' Disability Action Plan sets out how the MRT and the RRT comply with the Disability Discrimination Act 1992 (the DD Act) and the Commonwealth Disability Strategy (CDS). The CDS provides a framework for identifying and developing strategies that will improve access to services and facilities.

The plan commits the Tribunals to ensuring that people with disabilities are not disadvantaged when accessing the services provided by the Tribunals. The plan encompasses the activities of the Tribunals as a service provider and purchaser. The plan is reviewed annually and is reinforced by other planning documents, including the Tribunals' Plan, the Service Charter and the Workplace Diversity Program.

In line with April 2008 advice from the Department of Families, Housing, Community Services and Indigenous Affairs, the Tribunals' activities as an employer are no longer reported in the plan. This data and performance information was included, as required, in the Tribunals' response to the Australian Public Service Commission's State of the Service agency survey.

The Tribunals' Disability Action Plan is set out in Table 5.5.

Table 5.5 - Disability Action Plan

Ecologically sustainable development and environmental performance

Section 3A of the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act) sets out the principles of ecologically sustainable development (ESD). The Tribunals review these principles in relation to Tribunal activities on an annual basis.

The Tribunals have office accommodation in Sydney and Melbourne. Although it is considered that the Tribunals' activities have a limited impact on the environment, Members and staff are encouraged to contribute to reducing this impact and this is reflected in a range of strategies including:

• establishment of a Green Committee;
• introduction of general waste recycling;
• recycling office waste paper;
• use of double-sided printing;
• promoting awareness about the use of electricity and water;
• use of energy compliant computer monitors;
• encouraging the use of E10 fuel in agency cars (11% of fuel purchased in 2007-08);
• participation in the 2008 Earth Hour initiative; and
• increasing the range of documents available electronically.

Purchasing

The Tribunals' purchasing arrangements with suppliers include contracts and purchase orders for the supply of consultancies, interpreting and translation services, communication services, rental of property and other goods and services. All purchases over $10,000 are gazetted and the Tribunals also ensure compliance with the Senate Order on Departmental and Agency Contracts by maintaining on the Tribunals' website a list of contracts exceeding $100,000 in value.

All purchasing is conducted in accordance with the Commonwealth Procurement Guidelines and Chief Executive Instructions. 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 and ethical use of resources;
• accountability and transparency in decision making; and
• consideration of the Commonwealth coordinated procurement contract framework.

No contracts or offers were exempted from publication in AusTender on the basis that publication would disclose exempt matters under the Freedom of Information Act 1982. The Tribunals use a standard contract proforma with provisions providing for access by the Auditor-General.

The Tribunals have not let any contract during 2007-08 of $100,000 or more (inclusive of GST) that does not provide for the Auditor-General to have access to the contractor's premises.

Assets management

The Tribunals manage over 900 assets with a combined value of $6.1 million. The major asset categories include fit-out, office machines, furniture and fittings, IT equipment and intangible assets (software). Assets are depreciated at rates applicable for each asset class.

The Finance Section prepares accrual-based monthly reports on the progress of purchases against capital plans and depreciation against the budget in order to achieve effective asset management.

An annual stock-take is performed to update and verify the accuracy of asset records. In line with international accounting standards, an independent valuation of plant and equipment was conducted in June 2008.

Consultancy services

Many individuals, partnerships and corporations provide services to agencies. However, not all such contractors are consultants. 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 fully considered.

In determining whether contracts are for consultancy or non-consultancy services, the Tribunals have regard to guidelines published by the Department of Finance and Deregulation.

During 2007-08, 9 new consultancy contracts were entered into involving total actual expenditure of $35,045. In addition, 1 ongoing consultancy contract was active during the 2007-08 year, involving total actual expenditure of $65,513.

Table 5.6 sets out the 1 new consultancy that the Tribunals entered into in 2007-08, where the contract price exceeded $10,000.

Table 5.6 - Consultancy services let during 2007-08 (of $10,000 or more)

1. Explanation of selection process terms: Open Tender: A procurement procedure in which a request for tender is published inviting all businesses that satisfy the conditions for participation to submit tenders. Public tenders are sought from the marketplace using national and major metropolitan newspaper advertising and the Australian Government AusTender internet site. Select Tender: A procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders. Tenders are invited from a short list of competent suppliers. Direct Sourcing: A form of restricted tendering, available only under certain defined circumstances, with a single potential supplier or suppliers being invited to bid because of their unique expertise and/or their special ability to supply the goods and/or services sought. Panel: An arrangement under which a number of suppliers, usually selected through a single procurement process, may each supply property or services to an agency as specified in the panel arrangements. Tenders are sought from suppliers that have pre-qualified on the agency panels to supply to the government. This category includes standing offers and supplier panels where the consultant offers to supply goods and services for a pre-determined length of time, usually at a pre-arranged price.
   
2. Justification for decision to use consultancy:
   A - skills currently unavailable within agency.
   B - need for specialised or professional skills.
   C - need for independent research or assessment.

The total annual expenditure on consultancy contracts over the last 3 years is set out in Table 5.7.

Table 5.7 - Annual expenditure on consultancy contracts

Information on expenditure on contracts and consultancies is also available on the AusTender website
www.tenders.gov.au.

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/Territory government or private sector bodies. The Tribunals have no purchaser/provider arrangements.

The MRT and RRT have a service delivery agreement with the Administrative Appeals Tribunal (the AAT) for the AAT to provide accommodation, registry and support services in Brisbane, Adelaide and Perth. The Tribunals have part-time Members based in each of those locations.

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 2007-08.

Advertising and market research

All agencies are required to report on advertising and market research. During 2007-08, the Tribunals spent $61,832 (inclusive of GST) on advertising services. The Tribunals did not engage any market research services.

Table 5.8 - Advertising services

Correction of material errors in previous Annual Reports

No material errors have been identified in last year's Annual Report.