Provide efficient, effective and viable services.
Declining revenue, increased costs, reduced availability of affordable housing and an increased demand for services – particularly from clients with special needs – have had a substantial impact on the Department’s capacity to provide housing assistance to people in need.
In this context it has been necessary for us to enhance our operational efficiency and effectiveness, improve the management of our assets, strengthen the community housing sector, and focus on management reforms and organisational capacity.
Enhancing Operational Efficiency and Effectiveness
Reshaping Public Housing
As part of the focus on ensuring public housing is provided to those in greatest need, the NSW government announcement of a series of reforms to public housing in April 2005 included changes to rents paid by tenants. Under these changes existing tenants on moderate incomes will be charged from 25% to 30% of income in rent (or market rent, whichever is lower). The large majority of tenants on low-income will continue to pay only 25% of income in rent (or market rent whichever is the lower). These changes to rents for moderate income earners may encourage tenants with a greater capacity to find affordable housing in the private market to move out of public housing and therefore enable more housing to be provided to those in greater need.
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Business Process Streamlining
The Business Process Streamlining (BPS) project commenced in 2003-04. The project identified a number of strategies to simplify key business processes within the Department in order to improve service delivery to our clients. In 2004-05 the following initiatives were progressed:
- a policy user group was established to test new policy and provide a mechanism for staff feedback;
- three nuisance and annoyance pilots involving improved management processes and staff training commenced in Lismore, Hurstville/Riverwood/Miranda and Wollongong North; and
- an initial assessment of application procedures, multi-channel service delivery and rules-based software was undertaken.
Housing Contact Centre
The Housing Contact Centre provides a 24 hour/seven days per week contact service for the Department’s clients for queries by telephone, e-mail, fax or letter. During the year, the Centre received 580,000 telephone inquiries from clients and the general public. A number of service improvements and initiatives were also effected. These included:
- reducing the time to answer maintenance calls by 30 seconds to an average of one minute 30 seconds;
- improving the handling of client feedback from an average turnaround of 14 days to 24 hours;
- conducting the first satisfaction survey of clients regarding maintenance, in support of the Sutherland maintenance pilot; and
- developing quality systems and documentation regarding operational practices and standards, training and business continuity.
During 2005-06 the Contact Centre will play an integral role in delivering service to support the new maintenance regime and the Reshaping Public Housing reforms.
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Reducing Insurance Costs
The total cost to the Department of insurance premiums in 2003-04 was $23.37 million. During 2004-05, the total cost of premiums, including all charges and fees was $11.74 million. In addition, a $2 million refund has been received on the cancellation of a policy. This represents a total gross saving of almost 50% (excluding Workers’ Compensation Insurance).
The central focus this year has been on achieving savings in the areas of property and liability insurance. Direct negotiation with Australian and international insurance underwriters has been key to this success.
The Department is focused on a practical approach to the management of insurance and risk to ensure that affordable cover will continue to be made available, reducing the cyclical effects of the insurance markets.
Water Charging
For the first time, public housing tenants will be asked to contribute to water usage charges. The Department will continue to pay for sewerage and connection. The contribution will be fair and equitable.
It is expected that legislation will be passed to introduce a tenant billing system for water usage in 2005-06.
The agreement between the Department and the Sydney Water Corporation to retrofit water saving devices in Department dwellings continues to be successful. By the end of June 2005 in excess of 5,655 properties had been fitted with water saving devices, with a further 1,438 jobs assigned.
Sydney Water has progressively completed presentations to tenancy groups to make them aware of the program and has mailed out over 21,000 letters offering the free retrofit. Out of the 21,000 letters sent out approximately 6,300 households have applied to have the retrofit done.
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Linking Service Providers
The Human Services Better Service Delivery Program links government and non-government human service agencies in NSW. The primary objective of the Program is to improve the co-ordination of client services and referrals, in particular for clients with complex needs.
Using internet technology, the program is delivering a comprehensive electronic directory of human services (ServiceLink) and an electronic client referral tool (ReferralLink) through a secure human services network, HSNet.
In 2004-05 the program provided information technology solutions, internet connections and training to over 1,200 non-government organisations. The Department participated in the program through:
- supporting the continued development of ServiceLink and ReferralLink; and
- developing detailed plans for the implementation of the Program within the Department’s operations.
In the year ahead, ReferralLink will be rolled out via targeted implementation projects that focus on improving client referral practices between the Department and our human service partners.
Shared Corporate Services
In 2002-03, NSW businesslink was established to provide shared corporate services to the Government’s major human services departments: the Departments of Ageing, Disability and Home Care; Community Services; and Housing. NSW businesslink provides finance, human resources, records management and information technology services.
The Department of Housing was the host agency for NSW businesslink until 1 July 2004, when it ceased to be a division of the Department. Two closely linked entities were created. NSW Businesslink Pty Ltd is a NSW Government-owned company established under the Commonwealth Corporations Act 2001 and its shareholders are the Treasurer and the Ministers for the three participating human services Departments. The Board comprises the Directors-General of the three client departments. NSW Businesslink Department employs staff under the Public Sector Management Act 2002 including the 495 permanent and 95 temporary staff transferred from the Department of Housing.
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Housing Appeals Committee 10th Anniversary
2005 marks 10 years of achievement by the Housing Appeals Committee (HAC). Currently, the HAC consists of 17 Committee members and five Secretariat staff, and is based at its own office in Burwood.
In late 1994, the Minister for Housing introduced a two-tier appeals system for public housing clients. The HAC was established as the external and independent second-tier appeal process and commenced its first hearings in June 1995.
The HAC has received more than 4,000 appeal applications since its inception. In dealing with these, the HAC conducted hearings for 3,490 appeals. Over 55% of these appeals related to priority housing, while 36% related to requests for transfers. An average of 62% of all appellants have been from non-English speaking backgrounds.
The HAC’s jurisdiction has recently expanded to include appeals from NSW community housing clients.
The Committee remains committed to providing a high-quality independent appeals service, free of charge, to all NSW social housing clients. It also endeavours to provide more accountable and transparent social housing policies, procedures and decisions.
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Improving Asset Management
Key recommendations from the Asset Management Review which commenced in 2002-03, continued to be implemented in 2004-05. This included the development of an Asset Portfolio Strategy and the development and piloting of a new maintenance regime.
Asset Portfolio Strategy
An Asset Portfolio Strategy was prepared to guide realignment of the Department’s social housing stock over the next 10 years to best meet the needs of the changing client profile. The 10 year new supply program will deliver 12,000 newly built or acquired homes.
Realignment involves the replacement and upgrading of outdated dwellings across the State. The strategy provides indicative targets and budgets for local planning and programming of asset projects.
As well as pursuing realignment in terms of dwelling type and location to reflect demand, the strategy is geared to meeting a range of objectives including:
- improving residential amenity;
- promoting estate regeneration;
- providing a platform for cost-effective asset maintenance; and
- unlocking portfolio value through partnerships with the private sector and other groups.
A project plan is in preparation for implementation of the Portfolio Strategy in association with the Department’s business planning cycle. The strategy will be reviewed on a regular basis and targets adjusted as required in the context of local planning and project implementation.
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Maintenance Reform Program
The Government has committed $1 billion to address the long-term maintenance backlog across the portfolio. Over the past three years, the Government has reduced the maintenance backlog by 13%.
A maintenance reform program is being piloted in the Sutherland Shire, shifting from a mainly responsive to a planned and systematic maintenance program. Properties will be visited annually to assess the condition, identify faults that require repair, and schedule maintenance. The new maintenance regime consists of:
- an annual dwelling service and inspection;
- backlog repairs;
- programmed works; and
- responsive repairs.
The pilot areas will be extended to include 16 other metropolitan and regional locations from July 2005 for a 12 month period.
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Property Upgrading and Planned Maintenance
Under existing maintenance arrangements properties have been brought up to a consistent defined standard under the Department’s Accelerated Improvement Program (AIP). In 2004-05, the Department spent $99.92 million bringing 5,932 properties up to standard. (see Figure 4.1)
Other planned maintenance and special projects totalled $48.63 million during the year. This included cyclical painting programs, fencing, upgrading kitchens and bathrooms, the provision of new floor coverings and improved security and design in estates.
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Fire Upgrading Programs
The Department’s Fire Safety Upgrading Program was developed to improve the fire safety of the Department’s multi-unit and attached accommodation. This builds on the existing fire safety program which has seen hard-wired smoke detectors installed and serviced annually in every Departmental property.
The challenge for the Department is to determine a process to identify the cost-effective and appropriate fire safety upgrading solution for each building, with upgrading requirements dependent on the building regulations in place at the time of construction. In this regard, the Department has been trialing new fire upgrading processes as part of its Maintenance Reform pilot.
Major achievements for 2004-05 include:
- fire upgrading works worth $17.80 million completed on public housing dwellings with a further $17.00 million committed for completion in 2005-06;
- formulation of a program of works for 2005-06 that will improve the fire safety of a further 20,000 dwellings; and
- development of a manual that sets business rules and processes to ensure that all buildings will be upgraded to the Building Code of Australia standards.
In addition to the above, the Office of Community Housing surveyed its crisis accommodation properties this year, including 120 refuges, to determine the extent of work needed to comply with current Fire Safety Standards.
A further program of property inspections in community housing is to be carried out in 2005-06, with priority upgrade work to more than 1,000 properties to be completed over the next three years of the program.
Responsive Maintenance
In addition to property upgrading and planned maintenance, the Department spent $174.74 million on responsive maintenance and service contracts in 2004-05.
The new model of maintenance contracting that was implemented in 2002-03 continued into 2004-05. The extension of the current multi-trade contractors into the third year of the contract has seen fourteen contractors entering their final year of contract.
A number of key initiatives undertaken in 2004-05 include:
- all contractors were reviewed against the international Quality Management System standard ISO 9001. These audits identified risks to the Department and were undertaken in a collaborative manner to assist the contractors in providing better services for the Department and its tenants; and
- devolution of some asset management functions to Area teams to ensure the contractors are effectively and timely progressing maintenance work.
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Community Housing Planned Maintenance
The Office of Community Housing’s Planned Maintenance Program continues to be an important initiative. It will assist community housing providers move towards sustainable maintenance by reducing deferred liabilities through a strengthened focus on planned maintenance.
Planned maintenance is being undertaken for both Crisis Accommodation Program (CAP) and Community Housing Assistance Program (CHAP) properties with the focus on bringing dwellings up to a maintained standard. In this regard, a total of 355 properties were completed by June 2005, at a total cost of $4.30 million, including 124 properties upgraded by housing providers with an expenditure of approximately $300,000.
Divesting Assets
While the Department invests in property to help meet housing need, it also divests property in circumstances where there is a need to realign the asset portfolio to meet client needs. In particular, the Department has targeted:
- poorly performing assets with high maintenance liabilities;
- dwellings in low demand areas; and
- properties on housing estates to achieve a better mix of tenants.
After taking into account selling expenses, the net proceeds of asset sales this year totalled $62.24 million, including $3.66 million from non-social housing stock. Of this total, $43.76 million was received from the sale of 314 public housing dwellings, while nearly $440,000 was received from the sale of 2 community housing dwellings. Of the 314 public housing properties sold, 56 (or 18%) were sold to tenants.
Additionally, $6.42 million was obtained from the sale of land, $1.86 million from the sale of commercial properties, while $4.66 million was raised by the sale of motor vehicles and $925,000 from office furniture & equipment.
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Strengthening the Community Housing Sector
Community Housing Inquiry
The Legislative Council Standing Committee on Social Issues conducted an Inquiry into community housing from 2001 to 2003. Its report was released in November 2003 and many of the recommendations have already been implemented.
Priority areas for 2004-05 were preliminary planning of a comprehensive Five-Year Strategic Policy Framework to guide the future development of the community housing sector, and the commencement of a project to scope legislative requirements to recognise and support community housing. Both of these areas of work will be priorities for the Office of Community Housing in 2005-06. Consultation with the community housing sector and other stakeholders on the legislative framework will commence in early 2005-06.
Community Housing Accreditation
The Office of Community Housing’s Standards and Accreditation Unit (SAU) manages the NSW community housing accreditation system. The unit reports to the NSW Accreditation Committee, which has an independent chair and is made up of experts including community housing sector and tenant representatives.
The accreditation process evaluates community housing organisations against National Community Housing Standards to identify both areas of good practice and areas where performance needs to improve. The evaluation is undertaken by an evaluation team consisting of a staff member from the Office of Community Housing and a peer evaluator from the sector. The system promotes a culture of continuous improvement in the sector through a three-year cycle of self-evaluation, improvement, external evaluation and certification.
During 2004-05, the Standards and Accreditation Unit:
- successfully implemented the revised accreditation evaluation process under the National Community Housing Standards;
- conducted training workshops for peer evaluators, housing providers and members of the Accreditation Committee on the revised evaluation process, tools and scoring methodology; and
- completed ten evaluations of which three organisations were being evaluated for the first time and seven organisations were being re-evaluated. This brings the total number of accredited organisations to 32 (13 of which have been awarded full accreditation) since the accreditation system began in 1999.
An external evaluation of the NSW accreditation system has supported the usefulness of this system in improving the professionalism and management practices of providers who were accredited.
The challenge for the future is to explore and develop new approaches to make the accreditation system more accessible to smaller housing providers to meet their specific needs.
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Performance-Based Registration
The performance-based registration system is a significant step in the development of best practice in community housing. It is based on the recognition of good outcomes and is designed to create a culture of performance, not merely one of compliance. Participation in the performance-based registration system is compulsory for all community housing providers who wish to do business with the Department. The system commenced in December 2004 and will be implemented over a three-year period.
A major focus for 2004-05 has been consulting with the sector on the performance-based registration system. This included workshops, briefings and presentations to community housing providers.
Funding was provided to the NSW Federation of Housing Associations and the Association to Resource Co-operative Housing to conduct training workshops on the performance-based registration system. A total of 19 training sessions, attended by 310 community housing providers, were conducted in February/March 2005.
Training was also provided in November 2004, along with the dissemination of a guide to data reports.
In addition, the development of an improved information technology system has been a major project in 2004-05. The new system will be web-based and capture a broader range of information to inform the conduct of registration assessments and ongoing performance monitoring. This system will be used by all community housing providers, not just those receiving recurrent funding, as is currently the case.
During 2004-05, the Performance Management and Registration Team completed the first round of registration assessments, with 26 organisations participating. Preliminary results suggest that the sector is achieving the provision of quality service to their clients.
By the end of 2005, the Performance Management and Registration Team will have completed registration assessments on all housing associations in receipt of recurrent funding. Housing associations will undergo an annual reassessment of performance on the anniversary of their initial registration.
During 2006-07, the Performance Management and Registration Team will roll out registration assessments to housing co-operatives and other non-government housing providers.
Consultation with the Department of Community Services will also commence in 2005-06 around engaging SAAP providers in the performance-based registration system.
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Community Housing Resourcing Grants
During 2004-05, recurrent funding of close to $2.2 million was allocated to resource a range of community housing programs. The majority of these funds supported three community housing resourcing agencies: the NSW Federation of Housing Associations (FHA), the Association to Resource Co-operative Housing (ARCH) and Churches Community Housing (CCH). The remaining funds were expended on initiatives designed to improve performance and efficiency in the sector.
Provider Development Fund
The Provider Development Fund is designed to support community housing organisations develop their services, staff and/or skills and promote best practice.
During 2004-05, the North Coast Community Housing Company was approved funding for the development and implementation of an innovative computer-networking project. The project has been so successful that the company’s initiative is now being used to develop similar solutions in other areas of the rural and regional community housing market where multi-office organisations exist.
Community Housing Insurance Scheme
Since 1998, the Office of Community Housing has facilitated the delivery of the Community Housing Insurance Scheme, which provides affordable insurance products to community housing organisations. Additionally, the Office covers its Crisis Accommodation Program properties through the Scheme and delivers public liability cover to providers of crisis accommodation at no cost to those organisations.
A planned expansion in 2004-05 has seen the addition of an optional extra special contingency contents policy in response to requests from mainly crisis accommodation services and from some general housing organisations.
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Community Housing Scholarships Program
The Community Housing Scholarships Program provides opportunities for people working in community housing to access appropriate training and education with scholarships of up to 80% of course costs covered by the Office for a range of tertiary and post-secondary courses.
Since its inception, the Community Housing Scholarship Program has helped more than 50 community housing workers to undertake study in housing-related courses.
In 2004-05, a total of nine scholarships were awarded under the program for study across a range of courses at tertiary level, and through the NSW Federation of Housing Associations.
A second round offer was also made mid-year to encourage newer workers in the community housing sector to undertake the Federation’s Certificate IV in Social Housing. Following a competitive assessment, 7 places were offered.
The Office of Community Housing is conscious that as the sector grows and changes, so do the needs of workers and organisations for new skills and learning opportunities. For this reason, the Office has initiated a process to review the Scholarship Program to make sure it stays responsive to the future needs of the sector.
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Community Development and Resourcing Grants
The Community Development and Resourcing Grants Program is a biennial program providing funds for small, one-off, short-term projects targeted at assisting community housing tenants to work together with tenant organisations, community housing providers and other agencies to address local housing issues.
Following an expression of interest process in 2004-05, 21 funding applications were received. Ten projects were ultimately approved. The tenant participation initiatives are spread over Sydney metropolitan, regional and rural areas of NSW.
They create opportunities for social housing tenants and community organisations to work collaboratively and build solid communities, as they strengthen ties between neighbours, service providers and local community groups.
It is planned that another round of funding allocation for the Community Development and Resourcing Grants will be conducted in 2006-07.
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Fisher Environment Group Project
The Fisher Environment Group Project aims to create a supportive and inclusive environment for the tenants at a community housing project at Fisher Road, Dee Why. The project is extending the existing community garden project and also erecting a pergola which will provide a meeting place for the tenants to have gatherings and craft activities. This project will help tenants, particularly some single mothers, to break social isolation.
Management Reforms
During 2004-05 the Department continued to develop structures and initiatives to support service delivery, strengthen governance arrangements and prevent fraud or corruption.
Business Continuity Planning
The Department has made significant progress in the development of an organisation-wide business continuity management system to facilitate the recovery of critical business operations in the event of a disaster affecting a client service office or other Departmental site.
A Business Continuity Management Strategy has been produced, which provides the context for business continuity planning for every Departmental office site. Business Continuity Plans (BCPs) for six pilot sites have been developed and tested, with the pilot BCPs forming the basis for the development of over 70 plans, to be rolled out during 2005-06.
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Governance
There has been a focus this year on strengthening governance across the Department. This includes clarifying accountability, ensuring that adequate controls are in place and developing a culture that is resistant to fraud and corruption.
In March 2005 the new Executive Team participated in an educational seminar on “Ethical Leadership in the Public Service”. This was presented by the Independent Commission Against Corruption and tailored specifically for the Department of Housing.
A draft Code of Governance Practices has also been prepared that details the decision-making responsibilities across the Department. It provides a charter for each significant committee and clarifies the reporting and review responsibilities. The Code of Governance Practices will be implemented across the Department in 2005-06.
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Organisational Improvement
A focus on organisational improvement has seen the following achievements:
- completion of a Human Resource Process and Practice Review to improve Departmental practices, particularly in relation to the ageing of the workforce, attraction and retention of staff and “family friendly” policies;
- a renewed focus on capability development through integrated learning solutions and an internal business partnering approach; and
- implementation of a consolidated performance management system across the Department, which incorporates both current and future capability requirements.
Business Assurance
The Department’s achievements for 2004-05 in the area of business assurance include:
- the ongoing delivery of the Code of Conduct training, with participation by a further 81 staff, some through the Department’s induction program;
- establishment of a regular schedule of meetings with ICAC to develop responses to systemic issues; and
- review and revision of the Departmental Corruption and Fraud Prevention policy.
The Department of Housing operates an 1800 fraud line through the Housing Contact Centre. Public access to the line is encouraged to bring forward instances of suspected corrupt behaviour, misconduct or fraudulent activity. In all, 170 allegations were made and investigated or actioned.
All instances of suspected corrupt behaviour were reported to the Independent Commission Against Corruption (ICAC), as required under section 11 of the Independent Commission Against Corruption Act 1988.
A total of 21 internal audits were commenced and/or completed throughout the year through a program set out in the Department’s Internal Audit Plan and ad hoc reviews in response to risk assessment activities.
The unit will be maintaining its regular meetings with the ICAC, to improve the Department’s fraud and corruption prevention and management, as well as ongoing liaison with the Police on issues of fraudulent activity. A further focus will be on developing a closer relationship between current business risks and the internal audit program.
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Our Staff
Staffing Trends
The total number of staff has increased from 2,177 (excluding NSW businesslink) the previous year to 2,265 at the end of June, 2005. This brings staffing back to levels recorded for the end of 2000-01. Of these staff, 1,509, or 66.6% were client service staff, an increase from the previous year.
The Department’s performance in employing people from the major EEO target groups compares favourably with government benchmarks and targets. In particular, 61% of staff were women compared to targets of 50%, and 5.2% of staff were Aboriginal or Torres Strait Islander people against a benchmark of 2%. However, women and ATSI staff continue to have a high proportion employed at lower salary levels.
To improve the representation of EEO target groups and their associated distribution in the workforce, the Department has established a new people development team and is formulating a number of diversity strategies.
For further details on staffing trends and diversity see Appendices.
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Aboriginal Mentoring Program
One such strategy is the Mentoring Program for Aboriginal and Torres Strait Islander employees, which was launched in November 2004 and commenced in March 2005.
This Program aims to support the retention and career development of Aboriginal staff and support advancement for those identified as high performers and potential future leaders.
Eighteen mentorees commenced the program, each with a mentor from a senior role in the Department. All program participants attended an initial two-day training program and cultural awareness training was provided for the mentors, most of whom were from non-indigenous backgrounds. Quarterly training days are provided for the mentorees, tailored to meet their self-identified skills development needs. Mentors are encouraged to meet quarterly to share their experiences and ideas for program improvement.
A key indicator of success for the Aboriginal and Torres Strait Islander Mentoring Program is the achievement of career progression through identifying and implementing focused development opportunities for participants. Launched in November last year, the Program already has four success stories.
Brendan Moyle recently won a Senior Project Officer position in the Business Support Unit in the Department’s Queanbeyan office. His previous substantive position was Senior Project Officer, Aboriginal Housing. Brendan says, “My goal as an Aboriginal person was to win a mainstream position in the Department, which I have now done. I see the Indigenous Mentoring Program helping me get to the next level of management where I can positively influence service delivery as an Aboriginal person in a senior mainstream position.”
Coralie Smith, Client Service Officer at Bankstown, has been appointed on a three month secondment to Blacktown as a Senior Client Service Officer, Aboriginal and Torres Strait Islander Specialist. This is an opportunity for Coralie to develop her skills in the role of Specialist and will support her career development plans to move into a permanent specialist position. Coralie says: “I feel excited about the opportunity of undertaking this specialist position for three months and look forward to all the challenges this will offer me.”
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Certificate IV in Social Housing
During the year, implementation of the Certificate IV in Property Management (Public Housing), the national qualification associated with the Client Service Officer Traineeship, was evaluated. Using lessons learnt, a reference and a team leaders focus group developed arrangements to introduce a new qualification, the Certificate IV in Social Housing. The qualification better reflects the Client Service Officer role by providing a clear focus on assessment and support of clients with complex needs; working with other service providers to offer specialist support; effective asset and tenant management and working within a community development framework to build stronger communities. A total of 31 staff are undertaking the qualification by Recognition of Prior Learning and 11 Trainees have commenced the new two year Traineeship.
Occupational Health and Safety
The Department invested significantly in Occupational Health and Safety (OH&S) in 2004-05, commencing work on a comprehensive framework for the management of OH&S. A number of improvements were made, including:
- review of policies and safe work procedures, particularly focussing on the prevention of occupational violence;
- introduction of an on-line system for the reporting of hazards and incidents leading to improved monitoring of risks; and
- training of all line managers and front line staff in their responsibilities, legislative accountability and use of the on-line reporting system.
For further details on Occupational Health and Safety see Appendices.
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