Statement by the accountable authority

I, as the accountable authority of the Department of Veterans’ Affairs, present the 2018–19 annual performance statements of the Department, as required under section 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In my opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the Department, and comply with section 39(2) of the PGPA Act.

Liz Cosson AM CSC
Secretary
Department of Veterans’ Affairs

September 2019

Our purposes

To support those who serve or have served in the defence of our nation and commemorate their service and sacrifice through:

1. Compensation and support: Maintaining and enhancing the quality of life of clients by improving their financial wellbeing and self-sufficiency.
2. Health and wellbeing: Maintaining and enhancing the quality of life of clients by improving their physical and mental wellbeing.
3. Commemorations: Acknowledging and commemorating veterans’ service and sacrifice, and promoting an increased understanding of Australia’s wartime history.

Overview of our purposes, programs and activities

There is a direct relationship between the DVA’s three outcomes in the Portfolio Budget Statements 2018–19 and the department’s three purposes in the DVA Corporate Plan 2018–2022. DVA achieves its three purposes through the programs shown below.

Purpose 1: Compensation and Support

Maintain and enhance the quality of life of clients by improving their financial wellbeing and self-sufficiency.

Purpose 1 is about the way we assist veterans and their families to access payments and services. The success of our work under Purpose 1 is measured by our achievements in two categories: timeliness and quality. Our timeliness and quality targets are set out in our Portfolio Budget Statements and Corporate Plan (see Table 1 below).

Performance criteria and results

Table 1: Purpose 1 performance criteria and results

Change in the calculation methodology for timeliness measures

In 2018–19 we changed the calculation methodology for timeliness measures.

In previous years we measured the median time taken to process claims using number of claims finalised—this included claims that had been determined as well as those that had been merged or withdrawn.

In 2018–19 we made changes to DVA’s digital platform so that, when multiple claims are lodged by a client on the same day, they are bundled into one claim to streamline the investigation and finalisation of the claim. As a result of this bundling process, a significant number of claims appear to have been withdrawn, when in fact they have been bundled with other claims. This potentially affects the accuracy of our reporting of timeliness.

Therefore, the calculation methodology for median time taken to process compensation claims is now based on determined claims only and does not include withdrawn claims.

Performance criterion categories and further information

Table 2: Purpose 1 performance criterion categories and further information

Analysis of performance against Purpose 1

Timeliness

DVA’s transformation agenda has had a positive impact on compensation claims lodgement by veterans, with a particularly strong focus on:

• utilising MyService
• early intervention supports
• completing comprehensive Needs Assessments for clients
• providing access to mental health treatment (particularly via expanded Non-Liability Health Care provisions).

In 2018–19, as a result of our work on promoting our services to veterans and streamlining claiming processes, we received an increased number of compensation claims. In some instances, because of those increases in claim numbers (under programs 1.2 and 1.6), the time taken to process claims also increased. In particular, timeliness targets were not met for liability claims that fall under performance criterion 1.2.1 (disability support under the Veterans’ Entitlements Act 1986 (VEA)); and performance criterion 1.6.1 (claims under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA)).

We achieved our timeliness target for new income support claims (under program 1.1) in 2018–19. A critical factor in this success was the electronic link with Department of Defence records, which allows us to almost instantaneously confirm qualifying service. In the past this has been a barrier to achieving timeliness targets for new claims. Work is underway to develop new pension processing systems which, once fully implemented, should provide further processing and client service improvements.

We also achieved our timeliness target for processing pensioner-initiated reviews (PIRs) in 2018–19. This is especially notable given the increasing complexity of clients’ personal circumstances and sophistication of their financial affairs, as well as the fluctuating economic climate, all contributing to a need for a greater level of investigation for PIRs. Additional time taken during the investigation process helps to ensure clients continue to receive their correct entitlements.

We processed all Defence Service Homes loan subsidies (program 1.4) well within our target of 18 days. Defence Service Homes clients continue to receive an excellent level of service, reflected in the fact that we received no complaints about timeliness of processing. Half of the requests we received were finalised within five days—this greatly assisted veterans and their families to meet their housing needs.

We processed Veterans' Children Education Scheme claims (program 1.5) well within our target of 28 days.

Currently, DVA reports on timeliness performance by reporting the median number of days it takes to process claims within a target time frame. To simplify timeliness reporting from 2019–20, reporting will move to the percentage of claims processed within the target time frame.

Table 3: Percentage of claims completed within target days, 2018–19

Quality

In 2018–19 we continued to achieve our quality targets for new income support claims and PIRs (program 1.1) as well as for funeral benefits (program 1.4).

We achieved a 100 per cent correctness rate for the Defence Service Homes loans scheme (program 1.4), maintaining its reputation as a well-administered scheme and ensuring that clients receive the highest standard of service. Clients can be confident they are receiving their correct entitlements under the Defence Service Homes loan scheme.

DVA continues to improve the quality of work across all programs under Purpose 1 by using issues and trends identified in the quality assurance program to manage resource allocation, improve training and development packages, target policy and procedural support, improve information technology support, and engage in performance management. As a result, we have improved the quality of decision-making under programs 1.2, 1.3 and 1.6, and we intend to continue to focus on quality into future years.

Under the Veterans’ Children Education Scheme and the Military Rehabilitation and Compensation Act Education and Training Scheme, education allowances are paid to eligible children of Australian Defence Force (ADF) members who have died or been severely injured as a result of service. The schemes also provide for special assistance, student support services and guidance and counselling for eligible students undertaking primary, secondary and tertiary full-time study within Australia.

The Veterans’ Children Education Scheme claims (program 1.5) achieved 100 per cent correctness rates.

The results from the 2019 Education Schemes Satisfaction Survey demonstrate that a very high percentage of recipients believe that the support they received under the schemes was effective or very effective in helping them to reach their academic potential.

Summary

The increased number of compensation claims this year had a significant impact on our timeliness targets for liability claims under the VEA and DRCA. To address this, we are adjusting our staffing to better align with demand.

We are introducing combined benefits processing to further streamline assessment and determination of claims to reduce time taken to process and improve overall productivity. We are also making information and communications technology improvements that will result in more efficient processing. Our continued focus on quality improvement will ensure that clients are receiving the benefits and entitlements to which they are entitled.

Purpose 2: Health and Wellbeing

Maintain and enhance the quality of life of clients by improving their physical and mental wellbeing.

Purpose 2 is about the way we assist in supporting veterans’ and their families’ quality of life by providing access to services that enhance their physical and mental wellbeing. The success of our work under Purpose 2 is measured by our achievements in four categories: access to health services, travel, counselling and rehabilitation. Our targets in these categories are set out in our Portfolio Budget Statements and Corporate Plan (see Table 4 below).

Performance criteria and results

Table 4: Purpose 2 performance criteria and results

Performance criterion categories and further information

Analysis of performance against Purpose 2

Access to health services

The number of clients making a complaint about unmet access or quality is very low considering the overall number of health services under Purpose 2 programs that DVA clients access. This is an indication that there is currently no widespread issue affecting DVA clients’ ability to access clinically necessary treatment.

Travel

DVA records all compliments and complaints in the Client Feedback Management System (CFMS). The CFMS helps us to identify inconsistencies in service delivery and target improvement activities.

The performance target of 100 per cent for reimbursement of travel claims within 28 days (performance criterion 2.5.3) was not met. However, we improved our performance in this area in 2018–19: the processing figure of 99.93 per cent was higher than the processing figure of 99.5 per cent for 2017–18.

In 2018–19 the number of complaints about arranged travel (performance criterion 2.5.4) relative to the quantity of bookings was again less than the target of 0.05 per cent. This indicates a high level of satisfaction with the program.

The consolidation of processing for clients under all three Acts continues to provide improved results.

Counselling

Open Arms—Veterans & Families Counselling (Open Arms) records the period of time between a client’s initial intake assessment and their allocation to care with a clinician (centre-based or outreach). This continues to track within the target of 65 per cent. Levels of client satisfaction within Open Arms continue to track well above the target of 80 per cent.

Rehabilitation

In 2018–19 we exceeded our target for Veterans’ Vocational Rehabilitation Scheme, with the majority of clients successfully returning to work. This is an improvement against the 2017–18 results.

In 2017–18 we reviewed our performance criteria for rehabilitation (program 2.6); however, data quality issues made accurate reporting on the rehabilitation program performance indicators (PPIs) difficult. In 2018–19 we engaged a data analyst to give us a better understanding of the structure and technical links between rehabilitation data fields in the new ICT system and create a rehabilitation data dictionary. As a result, DVA can report on rehabilitation data for 2018–19.

In 2018–19 we consistently met our targets for the number of rehabilitation assessments made within 30 days of referral; and for the number of rehabilitation clients who have met or exceeded their goals. DVA commenced a satisfaction survey of rehabilitation clients after the closure of their rehabilitation program. This has established a baseline for the new qualitative performance indicator.

Summary

DVA remains committed to ensuring that clients have timely access to high-quality health care and rehabilitation services and to maintaining and developing services that support a level of independence. DVA continues to review and improve business practices to ensure that programs are delivered efficiently and effectively.

Purpose 3: Commemorations

Acknowledge and commemorate veterans’ services and sacrifice, and promote an increased understanding of Australia’s wartime history.

Purpose 3 is about ensuring that our veterans’ service and sacrifice are acknowledged, understood and commemorated. The success of our work under Purpose 3 is measured by our achievements in two categories: war graves and commemorations. Our targets in these two categories are set out in our Portfolio Budget Statements and Corporate Plan (see Table 6 below).

Performance criteria and results

Table 6: Purpose 3 performance criteria and results

Performance criterion categories and further information

Table 7: Purpose 3 performance criterion categories and further information

Analysis of performance against Purpose 3

War graves

The DVA Office of Australian War Graves (OAWG) is the agent of the Commonwealth War Graves Commission (CWGC). It manages 75 war cemeteries and war plots commemorating our war dead in Australia, Papua New Guinea and the Solomon Islands, who are amongst the 1.7 million men and women of the Commonwealth forces who died in the First and Second World Wars and who are at rest in 150 countries around the world. The OAWG also cares for the more than 324,000 other final resting places of post-war dead, and other eligible veterans of wars, conflicts, peace and other operations to which Australia has been committed, in over 2,330 locations.

The OAWG welcomes feedback on the standards of maintenance and presentation of war cemeteries, graves, official commemoration plaques and monuments. In 2018–19 we received fewer than 10 complaints about the maintenance standards, and all issues identified in these complaints were rectified as a priority. This is an excellent result, especially when taking into account the large number of commemorative assets that the OAWG maintains. The OAWG also receives consistent acknowledgement and compliments from clients, their families and the broader Australian community about the high standards of commemorations maintenance.

Commemorations

In 2018–19 DVA delivered four international and three domestic national commemorative services attended by almost 7,000 people. All commemorative services were broadcast nationally to a broad Australian audience and livestreamed over the internet.

All commemorative services were conducted on time with no safety incidents occurring. Feedback from the public and Government on the delivery of the commemorative services was overwhelmingly positive.

There was a 17 per cent underspend for the total budget allocation for the delivery of these commemorative services (program 3.2). There were a number of reasons for this, including lower than predicted attendance numbers, in part due to changes in the security environment for the overseas commemorations; and enhancements in the service delivery model, which led to cost efficiencies in the planning and delivery phases.

Education and awareness

DVA produces educational resources and gathers images and veterans’ stories to educate the community about Australian service men and women in wars, conflicts and peace operations.

In 2018–19 DVA continued to deliver community engagement projects to increase the public’s awareness of Australia’s wartime service and raise the profile of our veteran community. We connected with over 19,000 stakeholders through our biannual mail-outs and produced a number of new educational and commemorative resources. Our products received positive feedback from stakeholders such as school teachers and researchers.

Also, the online community awareness platform, The Anzac Portal (www.anzacportal.dva.gov.au), was updated with new content and features to enhance user experience. The portal will continue to be updated with fresh and more inclusive content in future years.

Summary

Based on performance criteria and stakeholder feedback, in 2018–19 DVA continued to perform well in the areas of commemorations, community engagement and education activities. These activities directly support the acknowledgement of veterans’ service and sacrifice and promote greater community understanding of Australia’s wartime history and experiences.

Enabling services

Facilitate the delivery of services to business lines through innovative, seamless, efficient and effective use of resources to support organisational capability.

In addition to the three purposes described above, DVA has programs that support the services we offer and enable us to meet performance criteria under our three purposes. These cross-cutting programs are workforce management (program 4.1); financial management (program 4.2); digital services (program 4.3); partnerships with other agencies (program 4.4); stakeholder engagement (program 4.5); and research (program 4.6).

Performance criteria and results

Table 8: Enabling services performance criteria and results

Analysis of performance against Purposes 1 to 3

Workforce management

In 2018–19 DVA maintained an affordable workforce, thereby achieving its target under performance criterion 4.1.1.

DVA also launched our new workforce strategy in February 2019, achieving our target under performance criterion 4.1.2. The new strategy will ensure that DVA continues to adapt alongside our transformation program. The workforce strategy will be updated regularly to reflect the fact that DVA is continually working towards attracting, retaining and developing a workforce capable of delivering high-quality and connected services to veterans and their families.

DVA partially achieved performance criterion 4.1.3. The 2019 Australian Public Service (APS) State of the Service employee census recorded an employee engagement index of 72 per cent for DVA compared with the average for large operational agencies of 70 per cent and the APS average of 72 per cent. The DVA unscheduled absence rate increased in 2018–19 to an average of 15.5 days compared with an average of 14 days in the previous year. While DVA scored well in employee engagement, its unscheduled absence results were favourable in comparison to only one of the three similar agencies (Services Australia, Department of Health (Health) and Defence), so an overall performance rating of ‘partially achieved’ for criterion 4.1.3 is appropriate.

In 2018–19 participation in performance agreements under the Performance Feedback Scheme was 85 per cent, which means that we partially achieved performance criterion 4.1.4. The audit measure for achieving this criterion was >90 per cent with partially achieved set as being within 5 per cent of this target. This participation rate is based on data entered into the HR system as at 30 June 2019, noting that additional agreements may exist that were not recorded in the HR system at this date. Mandatory recording of agreements in the HR system will be reinforced with staff in the next performance agreement cycle.

Financial management

The Strategic Financial Plan was reviewed and updated in 2018–19. The plan outlined the financial management strategies, governance and control practices and investment initiatives to maintain DVA’S financial sustainability. It also assisted in meeting the services delivery requirements and the Government’s commitments identified in the DVA Corporate Plan 2018–2022.

The audit of DVA’s 2018–19 financial statements by the Australian National Audit Office resulted in an unmodified audit report.

A financial management report is prepared every month to help the Executive Management Board to monitor DVA’s financial performance. The DVA five-year budgeting and forecasting model is updated biannually to assess our financial sustainability and the average staffing level affordability.

In 2018–19 DVA regularly reviewed and identified any emerging risks that would have an impact on the department’s financial position. DVA then developed an effective governance process and treatment plans to mitigate these risks.

Digital services

MyService is DVA’s new digital channel. Performance criterion 4.3.1 tracks the uptake of MyService by the veteran community. The current measure captures the percentage of Military Rehabilitation and Compensation Act 2004 (MRCA) liability claims received through MyService in comparison with all MRCA liability claims received by DVA in 2018–19. As MyService expands its offering, this measure may change to cover more claim types/Acts. In 2018–19 our target for percentage of claims lodged through MyService was 40 per cent. We exceeded this target, scoring 45 per cent.

Performance criterion 4.3.2 is one of a number of data points that DVA uses to track client satisfaction with MyService. When a client completes a transaction, they provide a voluntary star rating (on a five-star rating scale) and feedback via a free text field. This information, along with ongoing user testing and research, is used to continuously improve the MyService product. In 2018–19 the MyService target for user satisfaction was 80 per cent. We exceeded this, scoring 90 per cent.

Levels of stability were high across DVA’s digital platforms, exceeding service targets in all months and showing improvements on 2018–19 figures for network and telephony availability.

A small number of business applications experienced instability during August and October 2018. However, improvements were made from that point on. To further assure system availability, we are implementing a Central Operating Facility, which will provide real-time performance and availability monitoring of DVA’s critical applications. We will also be making a number of collaborative improvements across Incident Management.

Partnering with other agencies

DVA’s partnership with Defence remains strong. DVA and Defence continue to work together to support current and former ADF members as they move out of service and into the next stage of their lives. DVA and Defence have expanded the remit of the Early Engagement Model (EEM), which identifies, engages and offers support to ADF members from the time they enlist. The EEM aims to reduce the time taken to claim and enables DVA to establish a relationship with members at the start of their military career. The EEM will continue to expand to include registration at important junctures, such as when a member has qualifying service or is seriously wounded, injured or ill.

Each agency’s role in providing care and support to current and former members of the ADF is defined under an established memorandum of understanding (MOU) in place between those agencies. Three formal committees continue to sit under the MOU to govern and implement the strategic direction: the Defence DVA Executive Committee, the Defence Links Steering Committee and the Information Management Working Group.

Under arrangements agreed between DVA and Health, both departments work closely to provide high-quality hearing and aged care services to DVA clients. Governance arrangements with Health for aged care services will be reviewed and refreshed in 2019–20 (performance criteria 4.4.1b).

DVA has a longstanding partnership with Services Australia for the delivery of services to clients, as well as a range of corporate and back-office services. These include:

• delivery of health and rehabilitation programs
• Services Australia staff serving DVA clients in Services Australia shopfronts
• myGov face-to-face services in myGov premises and online service authentication for clients through myGov
• data exchange services
• corporate back-office capabilities, including payroll processing
• ICT services, including infrastructure, desktop computing, telecommunications and business solutions.

These arrangements are documented in a DVA–DHS Statement of Intent (SOI) and a range of underpinning schedules.

During 2018–19 a review of these arrangements was undertaken and improvements were made to address:

• a Defence request for strengthening data security and privacy considerations
• an increased focus on cyber security considerations
• rationalisation of the schedules under the SOI
• updated governance arrangements.

The ICT Services Schedule was significantly redeveloped to reflect the completion of the transition of DVA’s ICT services to Services Australia and to clarify the roles and responsibilities of both DVA and Services Australia.

Stakeholder engagement

The department’s National Consultation Framework (NCF) facilitates communication between the veteran community, the Repatriation Commission, the Military Rehabilitation and Compensation Commission and DVA on issues that are significant to the veteran community.

The NCF comprises five fora:

• Ex-Service Organisation Round Table
• Operational Working Party
• Younger Veterans—Contemporary Needs Forum
• National Aged and Community Care Forum
• Female Veterans and Veterans’ Families Policy Forum.

Each forum has a different focus—for example, strategic issues for DVA and veterans and their families; systemic issues and ways to maintain policy improvements; the needs of younger veterans and their families, with a focus on mental health support; ways to assist veterans to access aged care services; and the unique needs of female veterans.

The NCF is reviewed every three years to ensure its ongoing effectiveness and relevance. The next review is commencing in August 2019.

In 2018 the Minister for Veterans and Defence Personnel announced the creation of a Council for Women and Families United by Defence Service. This will commence in August 2019 and will be included in the review of the NCF.

Research

In 2018–19 the Applied Research Program (ARP) was our primary mechanism for commissioning research. It has enabled our business areas to undertake research projects that contribute to DVA’s research priorities and outcomes. All ARP-funded research projects approved by the Research Board were undertaken in accordance with the ARP requirements and governance. From 2019–20 a new mechanism—the Strategic Research Framework—will guide departmental research and detail DVA’s analytical and research priorities.

Summary

DVA achieved or partially achieved all its enabling services targets in 2018–19. DVA delivered client services programs with the support of its professional and engaged workforce, sound financial management functions and reliable digital services platform. DVA continues to partner with key Commonwealth and stakeholder organisations to help design, implement and deliver effective programs and benefits that enhance the wellbeing of veterans and their families. We continue to focus on research and analytics that enable us to develop better client support and services.