Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Aged Care Quality and Safety Commission—Report for 2019-20


Download PDF Download PDF

1 agedcarequality.gov.au Annual Report 2019-20

2019-20 Annual Report

2 agedcarequality.gov.au Annual Report 2019-20

Aged Care Quality and Safety Commission

ABN 80 246 994 451

ISSN 2652-3507 (Print)

ISSN 2652-3515 (Online)

This report has been prepared in accordance with the Australian Government Department of Finance’s Resource Management Guide No. 135: Annual report for non-corporate Commonwealth entities.

Copyright

The Aged Care Quality and Safety Commission encourages the dissemination and exchange of information.

All material presented within this report and on our website is provided under a Creative Commons Attribution 4.0 International, with the exception of:

• the Coat of Arms

• the Aged Care Quality and Safety Commission's logo, and

• content supplied by third parties.

The details of the relevant licence conditions are available on the Creative Commons website, as is the full legal code for the CC BY 4.0 International license.

Contact

Enquiries about the content of this report should be directed to:

The Editor Aged Care Quality and Safety Commission PO Box 773 Parramatta NSW 2124

Tel: (02) 9633 1711 Fax: (02) 9633 2422

Email: editor@agedcarequality.gov.au

Online versions are available at agedcarequality.gov.au and transparency.gov.au

The Commission acknowledges the Traditional Owners of Country throughout Australia and recognises their continuing connection to land, sea, culture and community. We pay our respects to their Elders past, present and emerging.

3 agedcarequality.gov.au Annual Report 2019-20

Engage Empower Safeguard

1800 951 822 agedcarequality.gov.au

J3260 - ACQSC_Letterhead_blank_PRESS.indd 1 J3260 - ACQSC_Letterhead_blank_PRESS.indd 1 19/8/20 10:25 am 19/8/20 10:25 am

Senator the Hon Richard Colbeck Minister for Aged Care and Senior Australians Minister for Youth and Sport Parliament House Canberra ACT 2600

Dear Minister

I am pleased to present the annual report for the Aged Care Quality and Safety Commission, prepared in accordance with the requirements of the Aged Care Quality and Safety Commission Act 2018 (ACQSC Act) and section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

This report includes information related to the functions of the Commissioner of the Aged Care Quality and Safety Commission, from 1 July 2019 until the end of the reporting period on 30 June 2020.

As required by section 10 of the Public Governance, Performance and Accountability Rule 2014, I certify that:

• the Commission has prepared appropriate fraud risk assessments and fraud control plans

• the Commission has in place appropriate fraud prevention, detection, investigation and reporting mechanisms that meet its specific needs

• I have taken all reasonable measures to minimise the incidence, and to investigate and recover the proceeds of fraud.

Yours sincerely

Janet Anderson PSM Commissioner 25 September 2020

4 agedcarequality.gov.au Annual Report 2019-20

About this report 2

Letter of transmittal 3

List of tables 6

Message from the Commissioner 8

Annual performance statements

Introduction 78

Report on performance 80

Outcome and program structure 81

Corporate plan 84

Overview

About the Commission 12

The sector at a glance 19

The year in review 20

Our regulatory strategy 34

Becoming an approved provider: entry to the system 36

Accreditation of residential aged care services 37

Home services 42

National Aboriginal and Torres Strait Islander Flexible Aged Care Program services 44

Contents

Short-term restorative care 45

Assessment contacts 46

Continuous improvement 48

Managing non-compliance 49

Complaints resolution 62

Education and engagement 68

Consumer engagement 74

Communications activities 75

5 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

Corporate governance 102

Executive Leadership Group (ELG) 103

Risk and Audit Committee 104

Fraud control 106

Organisational chart 107

Enabling legislation 108

Our leadership team 109

Aged Care Quality and Safety Advisory Council 119

Management of human resources 121

External scrutiny 147

Assessment of effectiveness of assets management 149

Purchasing 149

Consultancies 150

Australian National Audit Office access clauses 152

Exempt contracts 152

Procurement initiatives to support small business 152

Other accountability reporting

ISQua accreditation 154

Freedom of Information 155

Complaints about our service 156

Advertising campaigns 156

Corrections 156

Financial statements

Table of contents - notes 158

Independent auditor’s report 159

Accountable authority statement 161

Financial statements 162

References and appendices

Glossary 202

Alphabetical Index 204

List of requirements - non-corporate Commonwealth entities 209

Act requirements index 218

Contents

6 agedcarequality.gov.au Annual Report 2019-20

List of tables

Overview Annual performance statements

Table 1: Details of Accountable Authority during 2019-20 18

Table 2: Provider applications 36

Table 3: Number of site audits by state for 2019-20, relating to decisions following the site audit to re-accredit or not to re-accredit 39

Table 4: Number of review audits by state for 2019-20, relating to decisions following the review audit to revoke, vary or not to revoke accreditation 41

Table 5: Enforceable regulatory activity 50

Table 6: Timetable for improvement (TFI) statistics 1 July to 31 December 2019 51

Table 7: Decisions of finding serious risks 1 July 2019 to 31 December 2019 52

Table 8: 2018-19 APCS assessments 54

Table 9: Source of referrals for 2019-20 56

Table 10: Summary of feedback received from the confidential site visit feedback form, 2019-20 61

Table 11: Results against performance criteria 83

Table 12: Priority one results 85

Table 13: Priority two results 88

Table 14: Priority three results 90

Table 15: Priority four results 92

Table 16: Priority five results 94

Table 17: Priority six results 97

Table 18: Entity resource statement for the period ended 30 June 2020 100

7 agedcarequality.gov.au Annual Report 2019-20

List of tables

Management and accountability

Table 19: Membership of the Risk and Audit Committee 105

Table 20: All ongoing employees current report period (2019-20) 122

Table 21: All non-ongoing employees current report period (2019-20) 123

Table 22: All ongoing employees previous report period (2018-19) 124

Table 23: All non-ongoing employees previous report period (2018-19) 125

Table 24: Australian Public Service Act ongoing employees current report period (2019-20) 126

Table 25: Australian Public Service Act non-ongoing employees current report period (2019-20) 127

Table 26: Australian Public Service Act ongoing employees previous Report period (2018-19) 128

Table 27: Australian Public Service Act non-ongoing employees previous report period (2018-19) 129

Table 28: Australian Public Service Act employees by full-time and part-time status current report period (2019-20) 130

Table 29: Australian Public Service Act employees by full-time and part-time status previous report period (2018-19) 131

Table 30: Australian Public Service Act employment type by location current report period (2019-20) 132

Table 31: Australian Public Service Act employment type by location previous report period (2018-19) 133

Table 32: Australian Public Service Act indigenous employment current report period (2019-20) 134

Table 33: Australian Public Service Act indigenous employment previous report period (2018-19) 134

Table 34: Australian Public Service Act employment arrangements current report period (2019-20) 135

Table 35: Australian Public Service Act employment salary ranges by classification level (minimum/ maximum) current report period (2019-20) 136

Table 36: Executive remuneration for key management personnel current reporting period (2019-20) 138

Table 37: Executive remuneration for other highly paid staff current reporting period (2019-20) 139

Table 38: Information about remuneration for senior executives current reporting period (2019-20) 140

Table 39: Recruitment per state (2019-20) 142

Table 40: Consultancies 2019-20 150

Table 41: Consultancy trend data 151

8 agedcarequality.gov.au Annual Report 2019-20

I am pleased to present the Annual Report for the Aged Care Quality and Safety Commission (the Commission) for the period 1 July 2019 to 30 June 2020.

Following the establishment of the Commission on 1 January 2019, this year has been marked by continuing significant transition and change, and in the second half of the year, the major challenges of the COVID-19 pandemic.

The year started with the introduction of the Aged Care Quality Standards and a new Charter of Aged Care Rights on 1 July 2019.

The new Quality Standards signalled a transformative reorientation in thinking and practice for the aged care sector. The Quality Standards place older Australians receiving aged care squarely at the centre of all care planning and decision-making and ensure providers’ accountability not only for the quality and safety of care they deliver, but also for their consumers’ experiences and outcomes of care. The Charter operates alongside the Quality Standards, making it easier for consumers, their families, carers and representatives to understand what they can expect from an aged care service.

In November, the Commission undertook a significant program of work to support the introduction of regulations to minimise chemical and physical restrictions, with the aim of building awareness and creating sustainable cultural change across the sector. These regulations place explicit obligations on providers to minimise use of restraints in residential care settings, thereby reducing the potential harm to the health and well-being of older people.

Message from the Commissioner

9 agedcarequality.gov.au Annual Report 2019-20

Message from the Commissioner

We have continued to give a high priority to cooperating with, and supporting the important work of, the Royal Commission into Aged Care Quality and Safety. Following the release of the Royal Commission’s interim report in October 2019, we responded to key themes including through developing and promoting best practice models by providers, improving the transparency of information about provider performance, and further developing the sharing of information with other key agencies to lift the quality of aged care services.

The impact of COVID-19 in the second half of the year has presented many challenges for older Australians, for the aged care sector and its delivery of services, and for the Commission. The disruptive effects of the pandemic on everyday life and work cannot be overstated, and the loss of life among individuals receiving aged care has been tragic and distressing, most especially for family members.

At the onset of the pandemic, the Commission moved quickly to adjust our regulatory approach in line with the latest health advice so as to minimise infection risks and ensure that providers were doing everything possible to keep consumers safe while continuing to deliver care and services consistent with the Quality Standards.

On 1 January 2020, the aged care regulatory functions of the Department of Health, including approval of providers, aged care compliance (relating to both the Quality and Prudential Standards), and compulsory reporting were transferred to the Commission. This consolidation of regulatory functions in the Commission marked our transition into the role of national end-to-end regulator of aged care services in Australia. Being an integrated regulator provides clarity and transparency for consumers, the aged care sector and the broader community. It also reduces complexity and duplication and enables the Commission to more effectively identify and address poor performance by providers.

We have developed information, education and resources to support and engage with the sector and consumers to help with understanding these changes and what they mean for high quality aged care services.

The transfer of functions to the Commission was accompanied by a Regulatory Integration Project aimed at building a comprehensive and effective whole-of-Commission approach to gathering, analysing, risk-assessing, and determining the treatment of regulatory intelligence at the level of individual services, approved providers and sector-wide. We also launched our new aged care online learning platform Alis, expanding the range of education services to the sector.

10 agedcarequality.gov.au Annual Report 2019-20

Message from the Commissioner

While we achieved a number of our performance indicators, our results also reflect the impact of the pandemic on the Commission’s work. In the coming year, we anticipate that there will be ongoing challenges for aged care in managing the risk of COVID-19. We will continue to adapt our regulatory approach so that it remains risk-based and proportionate, and we will maintain proactive engagement with consumers, providers and other stakeholders to provide guidance and information that reflects current health advice.

The Government’s engagement with the final report of the Royal Commission, due in February 2021, is likely to have direct implications for the Commission’s future directions, and we keenly await those next steps in our journey. In the meantime, we will continue to work hard on realising the full benefits for senior Australians of having a single national regulator of aged care.

I want to thank Commission staff for their commitment and readiness to adapt to new regulatory and work practices, and their focused determination to continue holding providers to account for ensuring the safety and well-being of older Australians in their care. This work has never been more important.

Finally, I want to express my thanks to the Minister for Aged Care and Senior Australians, Senator the Hon Richard Colbeck for his ongoing support and guidance. I am also grateful to Ms Andrea Coote, Chair of the Aged Care Quality and Safety Advisory Council and to all members of the Council for their advice and support.

Janet Anderson PSM Commissioner September 2020

11 agedcarequality.gov.au Annual Report 2019-20

Overview

Overview

12 agedcarequality.gov.au Annual Report 2019-20

About the Commission

Overview

The responsible minister is Senator the Hon Richard Colbeck, Minister for Aged Care and Senior Australians and Minister for Youth and Sport.

The Commission is the national regulator of aged care services, and the primary point of contact for consumers and providers in relation to quality and safety.

The Commission operates independently and objectively in performing its functions and exercising its powers as set out in the Aged Care Quality and Safety Commission Act 2018 (ACQSC Act) and the Aged Care Quality and Safety Commission Rules 2018 (the Rules).

The Commission is responsible for the following outcome in the 2019-20 Portfolio Budget Statements:

Protect and enhance the safety, health, well-being and quality of life of aged care consumers including through effective engagement with them, regulation and education of Commonwealth-funded aged care service providers and resolution of aged care complaints.

Under this outcome the Commission is responsible for deliverables in Program 1.1, Quality Aged Care Services.

Read more about our functions under Risk-based regulation from page 34.

The Aged Care Quality and Safety Commission (the Commission) is an Australian Government statutory authority within the Health portfolio.

13 agedcarequality.gov.au Annual Report 2019-20

Our priorities Our capability

Leadership and culture

Change management

Innovation

Governance

Stakeholder engagement

Information technology

Workforce

Risk

management

1.

Continue building the Commission as a trusted and effective regulator

2.

Promote the provision of quality care and services

5.

Deliver effective risk-based regulation against the Aged Care Quality Standards

4.

Deliver effective complaints resolution for aged care consumers 

3.

Enhance engagement of aged care consumers

6.

Deliver timely information and education to promote the Commission’s

functions

Our purpose To protect and enhance the safety, health, well-being and quality of life of aged care

consumers

Overview About the Commission

14 agedcarequality.gov.au Annual Report 2019-20

Overview About the Commission

Our purpose

To protect and enhance the safety, health, well-being and quality of life of aged care consumers.

Our vision

Older Australians trust and have confidence that aged care services protect and enhance their safety, health, well-being

and quality of life.

15 agedcarequality.gov.au Annual Report 2019-20

We undertake our work consistent with the Australian Public Service (APS) values, outlined in the Public Service Act 1999.

Impartial

We are apolitical and provide the government with advice that is frank, honest, timely and based on the best available evidence.

Committed to service

We are professional, objective, innovative and efficient, and work collaboratively to achieve the best results for the Australian community and the government.

Accountable

We are open and accountable to the Australian community under the law and within the framework of Ministerial responsibility.

Respectful

We respect all people, including their rights and their heritage.

Ethical

We demonstrate leadership, are trustworthy, and act with integrity in all that we do.

Our values Our role

As the national regulator of aged care services subsidised by the Australian Government, our role is to approve providers’ entry to the aged care system, to accredit, assess and monitor aged care services against requirements, and to hold services to account for meeting their obligations. We seek to resolve complaints about aged care services and to provide education and information about our functions. We also engage with consumers to understand their experiences and to provide advice to providers about working with consumers in designing and delivering best practice care.

Overview About the Commission

16 agedcarequality.gov.au Annual Report 2019-20

1 Key legislative changes from 1 January 2020 included the transfer of functions 2, 3 and 4 from the Department of Health to the Commission.

Our functions

Our functions, as set out in the ACQSC Act and Rules are:

1. Protecting and enhancing the safety, health, well-being and quality of life of aged care consumers.

2. Approving providers of aged care.

3. Imposing sanctions on approved providers and lifting sanctions.

4. Ensuring compliance with the aged care responsibilities of approved providers. 1

5. Promoting the provision of quality care and services by:

a. approved providers of aged care services

b. service providers of Commonwealth-funded aged care services.

6. Developing, in consultation with aged care consumers and their representatives, best practice models for the engagement of providers with their aged care consumers and promoting those models to providers.

7. Dealing with complaints made, or information given to the Commissioner in accordance with the Rules about an approved provider’s responsibilities under the Aged Care Act 1997 or funding agreement.

8. Regulating aged care services according to the Rules by accrediting, conducting quality reviews, monitoring the quality of care and services, and registering quality assessors.

9. Providing education and information about matters relating to one or more of the Commissioner’s functions to consumers and their representatives, providers of aged care services and the public.

Overview About the Commission

17 agedcarequality.gov.au Annual Report 2019-20

Overview About the Commission

Our approach

We carry out our functions in a way that supports improved consumer outcomes, more effective complaints resolution, effective risk-based regulation, better engagement with stakeholders and greater accountability and transparency.

This approach includes:

• supporting the government’s broader policy framework including its consumer-centred and quality improvement aged care agenda

• giving a high priority to cooperating with and responding to requests from the Royal Commission into Aged Care Quality and Safety

• speaking with one voice and making it easy for people to access our services

• being innovative and open to new ways of working to improve outcomes for aged care consumers

• developing and maintaining productive working relationships with aged care consumers, providers and other key stakeholders

• investing in our workforce culture and staff capability to achieve our priorities

• being transparent and joined up in the way we work

• being accountable and seeking feedback to improve our practices and performance.

Our priorities

1. Continue building the Commission as a trusted and effective regulator.

A Commission that is trusted by consumers, providers and the community as a fair and effective regulator of aged care services.

2. Promote the provision of quality care and services.

Increased confidence and trust in the quality and safety of aged care services and commitment from providers to continuous improvement.

3. Enhance engagement of aged care consumers.

Consumers are engaged in the planning and delivery of their aged care services.

4. Deliver effective complaints resolution for aged care consumers.

Consumers trust that making a complaint leads to better outcomes.

5. Deliver effective risk-based regulation against the Aged Care Quality Standards.

Improved consumer experience through more effective regulation against the Aged Care Quality Standards.

18 agedcarequality.gov.au Annual Report 2019-20

Overview About the Commission

Table 1: Details of Accountable Authority during 2019-20

Period as the accountable authority or member within the reporting period

Name Position title/Position held Date of commencement Date of cessation

Janet Anderson PSM

Commissioner

1 July 2019

Organisational structure

Read more about our organisation, structure, governance and leadership in Management and Accountability from page 101.

19 agedcarequality.gov.au Annual Report 2019-20

The sector at a glance

Overview

QLD 1,016

NSW 1,638

SA 444

NT 103

WA 385

ACT 58 VIC 1,243

TAS 148

The aged care sector funded by the Commonwealth consists of three main service types of residential aged care, home services and flexible services.

At 30 June 2020, there were 2,728 residential aged care services, 2,272 home services and 35 National Aboriginal and Torres Strait Islander Flexible Aged Care program services.

Aged care services

2,728 Residential care

Home services

Flexible care

2,272

35

5,035

20 agedcarequality.gov.au Annual Report 2019-20

Aged Care Quality Standards introduced The Aged Care Quality Standards (the Quality Standards) were introduced on 1 July 2019. The Quality Standards replace the former:

• Accreditation Standards

• Home Care Standards

• National Aboriginal and Torres Strait Islander Flexible Aged Care Program Quality Standards

• Flexible Care Standards for short-term restorative care.

The Quality Standards apply to all aged care services including residential care, home care, short-term restorative care, as well as services under the Commonwealth Home Support Programme (CHSP) and National Aboriginal and Torres Strait Islander Flexible Aged Care Program.

This section provides an overview of the key legislative changes and events that directed and shaped our work in 2019-20. It also highlights some of the initiatives and projects we undertook to improve the effectiveness of our regulatory functions and respond to risks and events.

The year in review

Overview

The Quality Standards focus on outcomes for consumers and shift the regulatory focus for providers from process to outcomes. They represent transformational change for Australians receiving aged care services, putting consumers at the heart of aged care, requiring evidence of their experience and outcomes, and increasing transparency and accountability.

We continued the work (which commenced in 2018-19) to support the sector and consumers in preparation for the new Quality Standards through production of a range of guidance and resources including videos and online learning modules.

C o n sumer dignity and c

h o ic

e

Human resources

O rg a n isational governance O

n g o

in g a

s s e s s

m e n

t a n

d

p l a n

n in g

w it

h c o

n s u

m e r

s

Pe rso na

l ca re

an d c lin

ica l ca re

Services and supports for daily living

O rg a n is a t io n ’s s e r v i c e e

n v ir o n m e n t

Fe ed ba

ck a nd

c om

p la in

ts

21 agedcarequality.gov.au Annual Report 2019-20

New Charter of Aged Care Rights introduced On 1 July 2019, a single Charter of Aged Care Rights came into effect. It replaced previous charters of care recipients’ rights and responsibilities, and underpins the Quality Standards.

The comprehensive and concise new charter sets out the same rights for all consumers, regardless of the type of subsidised care and services they receive.

The charter focuses on 14 high-level consumer rights, making it easier for consumers, their families, carers and representatives to understand what they can expect from an aged care service. Providers have responsibilities to support consumers to understand the new charter.

Overview The year in review

The charter is available in a range of languages. We supported its introduction through resources for providers and consumers including posters and booklets. A charter template for providers and consumers to co-sign was developed as one way to demonstrate that the provider has assisted the consumer to understand their rights under the charter.

A new assessment methodology introduced The Commission developed and introduced an updated assessment methodology, which guides the Commission’s overall approach to assessing aged care provider performance against the Quality Standards.

The assessment methodology supports quality assessors to use a consistent approach to assessing a provider’s performance against the Quality Standards within the broader assessment program and the Regulatory Strategy. It aims to support quality assessors to reach similar conclusions about performance against the Quality Standards in similar circumstances and provides clarity for stakeholders about the conduct of performance assessments.

The Commission’s assessment methodology is supported by training and resources for quality assessors.

22 agedcarequality.gov.au Annual Report 2019-20

Overview The year in review

Regulations to minimise chemical and physical restrictions Legislative requirements regarding the use of physical and chemical restraints are contained in the Quality of Care Principles 2014 (Principles). The restraint requirements were first introduced to the Principles from 1 July 2019, with amendments strengthening the legislation applicable from 29 November 2019. These amendments place explicit obligations on providers to minimise chemical and physical restraints in residential care settings.

The Commission published a Regulatory Bulletin, ‘Regulation of physical and chemical restraint’ outlining the requirements that must be met before and during any use of restraint. The Bulletin outlined how the Commission will assess the use of restraint in the context of the Quality Standards and the Principles.

The Commission’s program of work on minimising the use of restraints has been included in broader work to minimise inappropriate use of medications in residential aged care more generally, initially focusing on psychotropic medication. The goal is to increase knowledge and awareness of how to ensure that any medication use is appropriate and minimised where it constitutes a restrictive practice, and to create sustainable cultural change. Aged care consumers and their representatives were involved in developing a range of print, electronic and other resources which are published on the Commission’s website, including:

• Clinical advice and guidance materials for providers and consumers about informed consent and restraint.

• Scenarios illustrating physical and chemical restraint, showing the complexity of the issue and the need for providers to be mindful of the requirements of the Principles.

23 agedcarequality.gov.au Annual Report 2019-20

Overview The year in review

• Tools and fact sheets to help providers make decisions, manage, record and monitor the use of psychotropic medications.

• Commissioning a suite of works with the Older Persons Advocacy Network (OPAN) for consumers and their representatives and decision-makers.

The resources for consumers, providers, care workers and Commission staff reflect our shared responsibility to address this issue and the multiple individuals, influences and processes involved in medication management and use of restraint.

The Pharmacy Project reducing inappropriate use of medication

The Commission was allocated funding in the 2019-20 budget to run a project aimed at reducing the inappropriate use of medication in residential aged care, with a particular focus on psychotropic and antimicrobial medicines.

The project introduced a pharmacy outreach program focusing on medication management and chemical restraint, the latter of which has the potential to do great harm to the health and quality of life of elderly people.

Pharmacists gather information on the challenges and barriers to safe prescribing and medication management and provide tailored information, education and ongoing support on any aspect of medication management in residential aged care facilities.

The project targets residential services in areas designated ‘remote’ and ‘very remote’. The Commission contracted 10 experienced and accredited clinical pharmacists who undertook the RedUSe train-the-trainer program that promotes quality and appropriate use of sedatives. A key program strength was the promotion of communication between consumers and their families, nurses, care staff, GPs and pharmacists.

Services in the regional target areas were offered a pharmacist visit, which included training for nominated staff on deprescribing medications, who would then have responsibility for sustaining the program in their services.

Prior to the COVID-19 pandemic, it was intended that the pharmacists would continue to deliver the training to services in more than 60 remote and very remote locations. However, the pandemic resulted in this program of visits being put on hold and consideration is being given to alternative means of continuing to engage with the sector on reducing the inappropriate use of medication, such as trialling a pharmacy advice telephone line. A pilot of the Aged Care Pharmacy Advice Line (Aged Care PAL) commenced operation on 11 May 2020. Pharmacists are rostered to answer pharmacy related queries from aged care providers, services and consumers in remote and very remote locations. The works mentioned above, commissioned with OPAN, are part of this project.

24 agedcarequality.gov.au Annual Report 2019-20

Overview The year in review

Transfer of regulatory functions On 1 January 2020, the aged care regulatory functions of the Secretary of the Department of Health were transferred to the Aged Care Quality and Safety Commissioner, establishing a new regulatory framework for the Commission. The Commission is now responsible for approval of providers, where appropriate to do so, aged care compliance (including with Prudential Standards) and compulsory reporting.

Consolidating these regulatory functions and powers within a single regulator provides greater clarity of the regulatory model for providers and consumers of care and ensures that the Commissioner has the full suite of regulatory functions from entry, quality monitoring and compliance to exit (if required) for providers of aged care services. It supports more effective triage of poor performance into voluntary and enforceable compliance pathways, allowing the Commission to shift to enforceable regulatory responses when risks are unresolved or escalate.

Commission Rules amendments Amendments to the Rules were implemented from 1 January 2020 to support the transfer of regulatory functions. The amendments focused on:

• integration and removal of duplication in the management of non-compliance with the Quality Standards

• establishment of a regulatory framework with graduated and escalating responses to non-compliance

• streamlining existing performance assessment processes, providing greater clarity to consumers and transparency of decision-making for providers.

A summary of the key changes for providers from 1 January 2020 is available on the Commission’s website. Our Regulatory Strategy, initially published in June 2019, was also updated to reflect the new regulatory powers.

25 agedcarequality.gov.au Annual Report 2019-20

Regulatory Integration Project commenced In 2019-20 the Commission commenced a Regulatory Integration Project to streamline our functions, achieve consistent regulatory practice, and support the transfer of regulatory functions from the Department of Health on 1 January 2020. The more streamlined end-to-end regulation and consistency of approaches are expected to reduce duplication and complexity, and benefit consumers and providers. The whole-of-Commission integration process includes new operating models to support four pillars of work:

• Risk Assessment and Escalation

• Case Coordination

• Intelligence and Analysis

• Managing Non-Compliance.

This includes development of a Regulatory Risk Management Framework, which supports implementation of a standardised approach to the trend analysis, escalation and treatment of risk, and improved capabilities through changes to organisational design and training.

The project will continue throughout 2020-21 to enable a fully integrated Commission.

New IT infrastructure to support regulatory functions The Commission is progressing a single IT platform for Commission staff, including development of a single cloud platform called the ‘Aged Care Case Management Information System’. Single IT infrastructure will support integration of regulatory functions, work on risk profiling, and analysis of home services including at market entry.

Home services regulation strengthened The Home Services Regulation Project aims to facilitate the effective and ef ficient regulation of home services across the range of Commission functions through the utilisation of revised regulatory practices, risk methodologies and operational processes in a coherent model.

The project complements the Commission’s regulatory strategy and current regulatory integration and compliance framework development. It also builds on the Commission’s strong focus on home services in complaints handling and home care investigation and compliance, and will continue to be progressed in 2020-21.

Overview The year in review

26 agedcarequality.gov.au Annual Report 2019-20

Overview The year in review

Royal Commission into Aged Care Quality and Safety Engagement with the Royal Commission into Aged Care Quality and Safety has been a significant priority for the Commission during 2019-20. In response to specific requests and to offer proactive support, we provided numerous documents, witnesses and submissions, and closely followed hearings and other activities to learn from the initial findings. Supporting the important work of the Royal Commission will continue to be our priority.

Following the release of the Royal Commission’s Interim Report on 31 October 2019 and addressing some of the key themes in the report, the Commission has:

• established a project (described above) specifically focusing on strengthening the regulation of home services

• continued its focus on working with providers, consumers and key stakeholders on minimising the use of restraints, as outlined earlier

• worked to raise provider awareness and encourage the use of best practice models including, during unannounced visits, looking for evidence that services are applying best practice

• conducted a project to research and develop best practice models for engagement between providers, consumers and their representatives (as outlined in consumer engagement activities below)

• reviewed information published on the Commission’s website to improve transparency and depth of information about provider performance, including naming providers who are issued directions 2, the actions to be met and the timeframes for meeting them

• improved the sharing of information with other key agencies including the Australian Health Practitioner Regulation Agency (AHPRA). A memorandum of understanding signed with AHPRA will support the Commission to raise concerns with AHPRA about the health, performance or conduct of registered health practitioners working in aged care. The agreement will also enable AHPRA to disclose information to the Commission if it has concerns about the care and safety of someone receiving Commonwealth-funded aged care services.

2 If the Commission is not satisfied that a service provider is meeting its responsibilities, a direction may be given to address the issues raised through a complaint. A direction will require the service provider to demonstrate how they have met or will meet their responsibilities under the Aged Care Act 1997 or their funding agreement with the Australian Government.

27 agedcarequality.gov.au Annual Report 2019-20

Overview The year in review

Aged Care Quality and Safety Council The Aged Care Quality and Safety Advisory Council (Advisory Council) is established under section 37 of the ACQSC Act.

The legislated functions of the Advisory Council are:

• On its own initiative or at the request of the Commissioner, to provide advice to the Commissioner in relation to the Commissioner’s functions.

• At the request of the Minister, to provide advice to the Minister about matters arising in relation to the performance of the Commissioner’s functions.

In 2019-20 the Advisory Council was requested to provide advice to the Minister for Aged Care and Senior Australians, Senator the Hon Richard Colbeck, on additional powers that the Aged Care Quality and Safety Commission should have to achieve its objectives.

As requested by the Minister, the development of the options paper considered the Interim Report of the Royal Commission into Aged Care Quality and Safety and recommendations of the Carnell Inquiry into events at Earle Haven in identifying and developing priorities for change.

The Minister subsequently notified the Advisory Council that he had shared the options paper with the Royal Commission to assist with its consideration of quality and safety regulation and in April 2020, senior staff from the Royal Commission met with the Advisory Council to discuss the contents of the options paper.

The Advisory Council continues to consider the options outlined for reform and provide advice to the Commissioner and the Minister on a range of strategic issues. The options paper is published on the Commission’s website.

Response to the bushfire crisis The 2019-20 summer season was characterised by devastating bushfires in many parts of the country, affecting a number of aged care services.

The Commission closely monitored the situation through information provided to us by the Department of Health and established operations to monitor evacuations of consumers affected by bushfires.

Based on geospatial mapping of fire movement, we made decisions about any adjustments required to our schedule of performance assessment and monitoring activities for affected services.

Our messages to the sector emphasised the critical importance of effective emergency risk management and planning, and of good communication with aged care consumers and their representatives during the bushfire season. Services operating in fire-affected areas and those impacted were encouraged to contact the Commission to discuss their circumstances if needed, and to access the information and resources about bushfire preparedness on our website.

28 agedcarequality.gov.au Annual Report 2019-20

Overview The year in review

Greater transparency in performance reporting The Commission is integrating and enhancing the information it makes publicly available about the performance of providers and regulatory actions and outcomes. This includes publishing a range of sector performance measures including regulatory activities and findings, the volume of complaints received, and the issues most frequently raised in complaints.

Sector performance data is shared on the Commission’s website to help providers understand sector-wide performance and the areas of high prevalence or high impact risk to the safety, health or well-being of consumers. It supports providers to identify and examine their own management of these risks. The Sector Performance Report for the January to March 2020 quarter integrated a range of compliance decisions that transferred to the Commission on 1 January 2020.

The Commission and the Department of Health worked closely with consumer and industry stakeholders on the development of residential service compliance ratings which are now available on the My Aged Care website. The facility and service rating information was released on 1 July 2020.

The rating will allow consumers to access and compare easy-to-understand information on the quality of residential aged care services, supporting more informed decision-making.

The service compliance rating signifies a service’s current compliance status. It is based on the outcomes of compliance activity, such as performance assessments, by the Commission and whether a service is meeting its obligations to provide safe, quality care and services to aged care consumers.

Aged Care Learning Information Solution launched The Commission’s Aged Care Learning Information Solution (Alis) was launched on 20 February 2020 and provides access to the Commission’s education programs anywhere and anytime via interactive online learning.

The initial program included in the launch focused on implementation of the Quality Standards and supporting providers in the delivery of quality aged care services and their continued improvement. The program includes nine modules. In addition to an introductory module called ‘Getting to know the Standards’, there is a separate module for each of the individual Quality Standards.

At 30 June 2020, 3,544 users were registered within Alis and user numbers were continuing to grow weekly.

Administrators have access to a dashboard and reporting functions, which provide a real time picture of their staff engagement with and completion of the modules.

29 agedcarequality.gov.au Annual Report 2019-20

Engaging with consumers An important function of the Commission is consumer engagement. It enables us to develop, in consultation with aged care consumers and their representatives, best practice models for the engagement of providers with their aged care consumers and to promote those models to providers.

In 2019-20 we conducted a consumer engagement project overseen by a steering group of key stakeholders. A number of resources produced by the project were published on the Commission’s website in January 2020. The resources are designed to support aged care providers in improving the way they engage with their consumers and includes the ‘Care that is right for me’ resource. This resource highlights that placing consumers at the centre of their care is fundamental to quality care outcomes. It focuses on assisting providers to deepen their engagement and develop a partnership with consumers in all aspects of planning, delivery and evaluation of care and services.

The Commission also conducts consumer experience interviews. From December 2019 we changed the collection of consumer experiences from a randomised sample during site audits of residential aged care services to a risk-based approach across all visits.

There has been continued interest in consumer experience in the home services sector and consumer experience interviews for home services are continuing to be trialled. From 1 July 2019, consumers were provided the opportunity to participate in a face-to-face consumer experience interview or the same interview by telephone with plans to add an online option in 2020-21.

Overview The year in review

30 agedcarequality.gov.au Annual Report 2019-20

Effective complaints resolution We continued to promote our complaints resolution processes and to support people to resolve concerns with their service providers. Our focus is on resolving concerns in the best interest of the person receiving care. Complaints can be made about Commonwealth-subsidised aged care services received at home or in an aged care facility.

We have reviewed and improved our complaints resolution processes in relation to intake, initial and ongoing engagement with complainants, risk assessment and escalation. These improvements have been supported through additional guidance and training provided to complaints officers.

Each complaint we receive is risk-assessed and dealt with accordingly. We use flexible approaches depending on the circumstances of each case. For instance, we may support people to resolve their concerns directly with their service provider, we may raise concerns with the service provider ourselves, we may bring the parties together to seek a resolution, or we may undertake an investigation process.

Overview The year in review

Overall contacts increased from 17,579 in 2018-19 to 19,782 in 2019-20 (13 per cent increase). From these contacts, the number of complaints lodged with the Commission increased from 7,828 in 2018-19 to 8,539 in 2019-20 (nine per cent increase). Public awareness of the Commission’s establishment and a broader community focus on the aged care sector are likely to have contributed to this increase, in addition to the COVID-19 pandemic as outlined below.

Complaints related to COVID-19

The impact of COVID-19 was clearly demonstrated by a dramatic increase in complaints about providers made to the Commission as public awareness of the pandemic and its effect on people living and working in aged care settings grew.

We received 2,613 contacts related to COVID-19 this year. Of these, 1,269 were complaints. The main themes raised in contacts were:

• visitor restrictions

• concerns about preparedness for and prevention of outbreaks

• impact of a COVID-19 outbreak or of visitor restrictions on the quality of care.

31 agedcarequality.gov.au Annual Report 2019-20

Overview The year in review

Rapid response to the COVID-19 pandemic As the COVID-19 pandemic began to impact Australia and specifically the aged care sector, the Commission moved quickly to adjust its regulatory approach and prioritise the safety, health and well-being of consumers in services affected by, or at risk of being affected by, COVID-19.

We adjusted our regulatory approach in line with latest public health and clinical advice about preventative measures to minimise infection risks to aged care consumers, staff and our own employees. We established a COVID-19 Executive Steering Committee and Taskforce to provide oversight and coordination of the Commission’s response to the pandemic. We adopted a risk-based proportionate approach that is sensitive to the challenges faced by providers during this time.

Our approach has included:

• Undertaking site visits based on assessment of risk including short notice site visits and unannounced infection control monitoring visits. Up to 30 June 2020, 157 infection control monitoring visits were undertaken; 36 were unannounced and 121 were short notice.

• Undertaking 2,503 assessment contacts with services by telephone to monitor and support the quality of care to consumers. The focus of assessment contacts has been on supporting providers’ infection control program and outbreak preparedness, and providing advice on tools and resources available to providers to assess their readiness

for COVID-19. These contacts were made to approved providers of residential services and providers of home services.

• Provision of online self-assessment survey to support providers to evaluate their infection control preparedness. Residential services completed 2,638 responses, and 1,416 responses were completed by home service providers.

• Partnering with public health responders to support the management of suspected and confirmed outbreaks of COVID-19 at aged care services and sharing information on the performance of providers to support the Commonwealth and state responses to the pandemic.

• Working closely with the Department of Health and other stakeholders to develop practical tools to assist providers as information became available.

Infection control visits

Unannounced

Short notice

36

121

157

32 agedcarequality.gov.au Annual Report 2019-20

We provided information, guidance and education to support providers and consumers during the pandemic, including:

• Posting regular updates from the Commissioner on our website about latest information on the pandemic and the Commission’s regulatory responses.

• Providing education, support and advice from the Commission’s Chief Clinical Advisor.

• Maintaining a frequently updated section of the Commission’s website to ensure provider access to the latest information and tools to protect and enhance the safety and well-being of consumers, and to ensure that consumers could access information about COVID-19 and what to expect from their services.

• Providing webinars to providers in Victorian residential services to support their preparation and preparedness for a COVID-19 outbreak.

• Supporting compassionate application of visitor restrictions, by:

- coordinating a problem-solving roundtable with representatives from a number of providers to understand issues around implementation of visitor restrictions imposed during COVID-19 and to share ideas for managing the issues

- coordinating a roundtable with consumer peak bodies to share and problem-solve issues in relation to visitor restrictions

- developing resources that support good decision-making in relation to visitor restrictions

- issuing advice to the sector on actions providers could take while applying visitor restrictions in line with state/ territory orders, and issuing guidance on how to implement entry screening procedures for staff and visitors to services.

• Resolving complaints about the impact of visitor restrictions on the care and well-being of residents.

• Introducing a consumer engagement survey for home care consumers to better understand the quality of care being provided and how services could be improved. The survey included a number of questions related to COVID-19 including whether services have been changed or cancelled and whether precautions were being taken to prevent the spread of COVID-19. The survey will continue into the next financial year, with the aim to contact more than 5,000 consumers.

• Providing good practice examples of how services across the country are exploring new ways of promoting consumer well-being and helping them to stay connected to family, friends and carers during the pandemic.

Overview The year in review

33 agedcarequality.gov.au Annual Report 2019-20

Overview The year in review

We have adjusted our work practices to keep our staff safe, with our staff quickly adapting to working remotely using new technologies, and practices and innovative solutions to support our regulatory responsibilities. We are continuing to strengthen our IT infrastructure as a critical component of our intelligence-led, risk-based regulatory strategy and to support our communication and inclusion as we maintain elements of our work in virtual environments and home-based of fices. The pandemic has sharpened our focus on business continuity planning so we are well-positioned for potential future business disruptions.

Learning from experience

We continue to study and reflect on experiences of outbreaks in aged care and to apply learnings in our regulatory approach. We have engaged with regulators in other countries to share experiences and lessons.

Our close working relationship with the Department of Health is ongoing, and we are also engaging with health authorities and clinical experts in all jurisdictions.

The following sections outline our regulatory functions and key activities in 2019-20 in more detail.

34 agedcarequality.gov.au Annual Report 2019-20

Overview

Our regulatory strategy

The Commission’s regulatory strategy sets out our approach to delivering regulatory functions under the ACQSC Act, in accordance with the Rules.

The regulatory strategy, initially published in June 2019, was updated in February 2020 to reflect the transfer to the Commission from 1 January 2020, and integration of specific aged care regulatory powers previously exercised by the Department of Health.

It provides clarity and transparency about our approach to regulation and outlines the way in which we use a proportionate, risk-based approach to achieving our regulatory objectives.

We provide a single point of contact about aged care quality and safety issues for consumers and providers of aged care, facilitating a responsive regulatory, compliance and complaints system informed by both consumers and aged care providers.

How we manage regulatory functions Our complementary functions enable us to help manage risks in the aged care sector and respond appropriately to incidents and departures from expected performance or outcomes.

We work with providers not only to encourage compliance but to go beyond the minimum standards and strive for best practice within the aged care sector. The compliance and enforcement actions that we take are designed to:

• promote sector-wide compliance through deterrence and clearly establish the boundaries of the law

• hold providers who have not or are not complying to account to meet their responsibilities

• respond to non-compliance that poses an immediate and severe risk to the safety, health or well-being of consumers

• return non-compliant providers to compliance as quickly as possible

• revoke the approval of providers who are no longer suitable to provide aged care

• assure the community that government will respond to non-compliance that poses a risk to the safety, health, well-being or quality of life of consumers, and that there are consequences for providers who do not take action to meet quality and safety expectations.

35 agedcarequality.gov.au Annual Report 2019-20

The range of actions the Commission may apply includes:

• monitoring the compliance of aged care providers

• publishing information about performance and non-compliance

• directing the provider to address areas for improvement in order that they comply

• requiring approved providers to give undertakings to remedy non-compliance

• requiring approved providers to agree to actions to protect consumers

• suspending or revoking the approval of approved providers.

The action we may take where a provider demonstrates they are willing and able to comply will be different from action taken where a provider’s non-compliance is deliberate and/or calls into question their suitability to provide care, especially where the provider’s actions place consumers at risk of harm.

Regulation is necessary but not enough to drive sustainable improvement in aged care. Other stakeholders who also exercise significant influence on the quality and safety of care include:

• consumers who use services alongside their representatives, family and carers

• care staff and visiting health practitioners who provide care for consumers

• aged care providers, particularly at the board, executive and management levels

• the Department of Health through its policy and funding responsibilities

• researchers and universities

• the broader community and media.

The Commission recognises that action is required by all these stakeholders to make lasting, positive changes in aged care.

Higher-level intervention

Lower-level intervention

Willing to do

Repeated/ wilful non-compliance

Try but do not always succeed

Commission’s compliance

strategy

Provider’s compliance

posture

Revocation of provider approval

Enforceable regulatory action including imposing sanctions, Non-Compliance Notice,

Undertaking to Remedy, revocation or variation of accreditation

Administrative actions including frequency of performance assessment or monitoring, directions to revise plan for continuous improvement, requests for

information

Education and Engagement Provider approval for market entry Complaints resolution

Overview Our regulatory strategy

36 agedcarequality.gov.au Annual Report 2019-20

Becoming an approved provider: entry to the system

Overview

To receive funding from the Australian Government under the Aged Care Act 1997, an aged care service must be operated by an approved organisation, and, for residential and flexible aged care services, hold an allocation of places. Approval is gained through an application and assessment process that determines whether the applicant is suitable to provide aged care.

The Department of Health was responsible for granting provider approvals for residential, home and/or flexible care before the function was transferred to the Commission on 1 January 2020.

Prior to the transfer of this function, the Department of Health carried over 79 applications for approval from 2018-19 and received 53 applications for approval from 1 July to 31 December 2019.

From 1 January 2020, the Commission received 88 applications for approval to provide aged care. There were 53 applications carried over to 2020-21. The results are shown in Table 2.

Table 2: Provider applications

† Data for the period July - December 2019 relates to when this function was the responsibility of the Department of Health.

# Includes approvals and deemed approvals. A state, territory or local government authority may seek to be deemed as an approved provider of aged care services provided by them in accordance with section 63F of the ACQSC Act.

* An application may not proceed because it is either incomplete, withdrawn by the applicant, or the applicant failed to provide the requested information within legislated timeframes.

Application outcomes Jul - Dec 2019 † Jan - Jun 2020 2019-20

Applications received 39 88 127

Applications approved # 15 5 20

Applications not approved 54 19 73

Applications that did not proceed * 25 59 84

Reconsiderations received 4 2 6

Applications carried over to 2020-21 53

37 agedcarequality.gov.au Annual Report 2019-20

Accreditation of residential aged care services

Overview

The following information is based on data available as at 24 August 2020.

Accreditation Residential aged care services provide a range of care options and accommodation for older people who are unable to continue living independently in their own homes.

Established by the Aged Care Act 1997, accreditation is a key component of the aged care regulatory environment.

Accreditation seeks to assess the quality of care and services delivered by approved providers against the Quality Standards and contributes to improved safety, quality and continuous improvement of services.

Residential aged care services must be accredited to receive Australian Government subsidies.

An approved provider of a commencing or re-commencing service may apply to the Commission for accreditation or re-accreditation of the service. The Commission considers the application and other relevant matters in making a decision about whether to accredit the service for a period of one year.

In 2019-20, 29 commencing services were accredited and two re-commencing services were re-accredited.

Subsequent re-accreditation of a service requires:

• the submission of an application for accreditation of a service

• a site audit conducted by an assessment team consisting of registered quality assessors

• a decision about whether a service will be re-accredited and the period of accreditation.

Accreditation is supported by monitoring the quality of care and services of accredited services through assessment contacts and review audits.

Flexible care services delivering short-term restorative care in a residential care setting are accredited in accordance with the Rules or are taken to be an accredited service.

38 agedcarequality.gov.au Annual Report 2019-20

Site audits

Site audits involve an assessment team carrying out a comprehensive assessment of a provider’s performance against each of the eight Quality Standards in relation to a service. Site audits occur without notice to the approved provider.

In the lead up to accreditation, the provider must inform consumers and their representatives:

• that a site audit is expected to be conducted

• the anticipated period in which the site audit could occur

• that they may meet with members of the assessment team in private or contact the Commission by other means such as telephone or online survey.

The Commission gives providers the form of words to be used to tell consumers and their representatives about the site audit and a poster to display at the service.

Consumers and their representatives are able to contact the Commission if they have any feedback about the quality of care and services provided to them prior to the site audit. This feedback is then considered and followed up by the assessment team during the site audit.

The assessment team must interview at least 10 per cent of consumers and/or their representatives. It is frequently the case that a larger proportion than this is interviewed.

The assessment team also interviews key staff, management and other relevant people, observes the environment and practices of the service, and reviews documented evidence to assess the performance of the service.

The assessment team prepares a site audit report for consideration by a delegated officer of the Commissioner. The provider of the service is given a copy of the site audit report so that they have the opportunity to understand the reasons, evidence and facts that the delegate is to rely on in making their decision; and to respond to the matters identified in the report.

COVID-19 impact

During the COVID-19 pandemic the Commission modified its regulatory program and deferred conducting site audits. Exceptional circumstance provisions were applied by the Department of Health to ensure the ongoing accreditation of services whose accreditation was due to expire from 16 March to 30 June. The Commission provided advice to the sector about this issue in its Quality Bulletins.

Other forms of monitoring continued over this period.

Overview Accreditation of residential aged care services

39 agedcarequality.gov.au Annual Report 2019-20

Accreditation decisions following site audit

A delegated officer will consider the site audit report, any response made by the provider of the service and any other relevant matters to prepare a performance report and make an accreditation decision.

The decision is either to re-accredit the service or not to re-accredit the service.

If a decision is made not to re-accredit an accredited service, the delegated officer may also decide to revoke accreditation of the service.

The provider is notified of the decision along with the reasons for the decision with a copy of the delegate’s performance report.

The accreditation decision and the performance report are published on our website.

In 2019-20 we conducted 497 site audits. We found non-compliance against the Quality Standards in 209 of these audits. We also made a decision to not re-accredit one service as a result of these audits.

In the event that a performance report identifies non-compliance with the Quality Standards, the Commission’s response will be risk-based and proportionate to ensure the service returns to compliance and addresses any risks to the safety, health and well-being of consumers.

Overview Accreditation of residential aged care services

NSW VIC QLD SA WA TAS NT ACT AUS

Re-accreditation decisions

Not to accredit 1 - - - - - - - 1

Accredit 149 132 84 61 46 13 4 7 496

Table 3: Number of site audits by state for 2019-20, relating to decisions following the site audit to re-accredit or not to re-accredit

40 agedcarequality.gov.au Annual Report 2019-20

Review audits

A review audit may be conducted with a residential aged care service if we consider, on reasonable grounds, that the approved provider of the service may not be complying with the Quality Standards.

A review audit is a full audit of the performance of a provider of a residential aged care service against all requirements of the Quality Standards. Review audits may be announced but are typically conducted unannounced and without notice to the provider of the service.

A review audit may also be conducted if the Commissioner becomes aware that the approved provider:

• has had a change in circumstances

• has had a transfer of allocated places

• has changed premises since the service was last accredited.

At a review audit, the assessment team interviews at least 10 per cent of consumers and their representatives, staff, and other relevant people, observes the environment and practices of the service, and reviews documented evidence to assess the performance of the service.

The assessment team prepares a review audit report about the audit for consideration by a delegated officer of the Commissioner. The provider is given a copy of the report so that they have the opportunity to understand the reasons, evidence and facts that the delegate is to rely on in making a compliance decision; and to respond to the matters identified in the report.

Accreditation decisions following review audit

A delegated officer will consider the review audit report, any response made by the provider of the service and any other relevant matters to prepare a performance report and make an accreditation decision.

The decision is either to revoke or not to revoke accreditation of the service. If accreditation is not revoked, there is a further decision whether to vary the period of accreditation.

The provider is notified of a review audit decision along with the reasons for the decision with a copy of the delegate's performance report.

The review audit decision and the performance report are also published on our website.

In 2019-20 we conducted 33 review audits. We found non-compliance against the Quality Standards in 32 of these audits. We also made a decision to revoke accreditation on two services as a result of these audits.

In the event that a performance report identifies non-compliance with the Quality Standards, the Commission’s response will be risk-based and proportionate to ensure the service returns to compliance and addresses any risks to the safety, health and well-being of consumers.

Overview Accreditation of residential aged care services

41 agedcarequality.gov.au Annual Report 2019-20

NSW VIC QLD SA WA TAS NT ACT AUS

Review audit decisions

Not to revoke or vary 3 1 1 3 3 0 0 - 11

Revoke 1 0 1 0 0 0 0 0 2

Vary 11 0 6 1 2 0 0 0 20

Table 4: Number of review audits by state for 2019-20, relating to decisions following the review audit to revoke, vary or not to revoke accreditation

Reconsideration of accreditation decisions

The Commission Rules make provisions for reconsideration and review of certain decisions made by us.

A provider may request reconsideration of a Commission decision to:

• not accredit a commencing service

• not re-accredit a recommencing service

• not re-accredit a residential service

• determine the further period for which a residential service is to be accredited

• revoke the accreditation of an accredited service following a re-accreditation site audit or a review audit

• vary the period of accreditation of an accredited service following a review audit.

The Commissioner may reconsider a decision referred to above if satisfied that there is sufficient reason to do so.

A reconsideration decision will either:

• affirm the decision

• vary the decision

• set aside the decision and substitute a new decision.

In 2019-20, we made 665 reviewable decisions and were requested to reconsider 14 decisions by the relevant providers. Of the 14 requests, 11 decisions were affirmed and three decisions were varied.

Applications may be made to the Administrative Appeals Tribunal for review of reconsidered decisions.

At times, the Commission may also review a decision on our own initiative. No decisions in 2019-20 were reviewed on our own initiative.

Overview Accreditation of residential aged care services

42 agedcarequality.gov.au Annual Report 2019-20

Home services

Home services provide support to help people stay at home and be more independent with their day-to-day activities and in the community. This includes home care, flexible care providing short-term restorative care at home or home support.

Quality audits We conduct quality reviews of home services to assess whether a provider delivers services in accordance with the Quality Standards, and monitor the quality of care and services through assessment contacts.

As part of a quality review, home services undergo a quality audit at least once every three years to demonstrate their performance against the Quality Standards. More frequent quality audits are undertaken if risks to the safety, health, well-being or quality of life of aged care consumers are identified.

Overview

43 agedcarequality.gov.au Annual Report 2019-20

Quality audits were introduced through amendments to the Rules on 1 January 2020. The quality audit process is more closely aligned to the process for site audits and increases consistency in the assessment process between residential services and home services, while recognising that some differences remain in the context of a home service.

If the provider is advised of the date of the quality audit, they must advise consumers and their representatives that they will have an opportunity to speak to the assessment team.

During a quality audit, the assessment team reviews a sample of consumer records and other documents such as policies, procedures, agreements and registers. Interviews are conducted with consumers or representatives as well as staff and management about their systems, processes and practices. Quality assessors observe any activities in progress at the service and any interaction with consumers or representatives.

The assessment team develops a quality audit report that assesses the provider’s performance in relation to the service, against the Quality Standards. The provider is invited to respond to the information in the quality audit report before a performance report is prepared.

We then make a decision about the provider’s performance against the Quality Standards. A performance report is given to the provider, which sets out the decision and, where there has been non-compliance with the Quality Standards, any areas for improvement that should be made.

Where there is non-compliance with the Quality Standards, the Commission's response will be risk-based and proportionate to ensure the service returns to compliance and addresses any risks to the safety, health, well-being and quality of life of consumers.

In 2019-20, 76 quality audits were conducted on home services.

The Commission is committed to making more information from regulatory activities available and will publish performance reports following quality reviews from 1 July 2020.

Overview Home services

44 agedcarequality.gov.au Annual Report 2019-20

National Aboriginal and Torres Strait Islander Flexible Aged Care Program services

Services delivered under the National Aboriginal and Torres Strait Islander Flexible Aged Care Program are designed to deliver a flexible mix of residential, day care, respite care and community-based aged care.

Overview

Quality audits We aim to conduct a quality review of each National Aboriginal and Torres Strait Islander Flexible Aged Care Program service at least once every two years to assess performance against the Quality Standards.

The audit process is similar to the home services quality audit process.

There were 35 National Aboriginal and Torres Strait Islander Flexible Aged Care Program services at 30 June 2020 and five of these services had a quality audit in 2019-20.

45 agedcarequality.gov.au Annual Report 2019-20

Short-term restorative care

The short-term restorative care program is an early intervention program that aims to reverse and/or slow functional decline in older people and improve overall well-being.

The program provides a variety of care and services for consumers for up to eight weeks, to help prevent or reduce difficulties that older people may be having with completing everyday tasks.

Short-term restorative care services may be delivered in a home care setting, a residential care setting, or a combination of both.

Overview

46 agedcarequality.gov.au Annual Report 2019-20

Monitoring the quality of care and services of aged care services is undertaken through assessment contacts. We use data and intelligence to accurately assess the risk of non-compliance with the Quality Standards and undertake assessment contacts where there is the greatest risk. We have the regulatory discretion to determine the arrangements for assessment contacts, including when an assessment contact will be conducted and for what purpose.

Assessment contacts are any form of contact (other than a site audit, a review audit or a quality audit) between a regulatory official or registered quality assessor and the provider for either or both of the following purposes:

• to assess the provider’s performance, in relation to the service, against the Quality Standards

• to monitor the quality of care and services provided by the provider through the service.

The Commission is able to undertake an assessment contact with any provider of any service, including a previously accredited service. This means that, from 1 January 2020, the Commission monitors approved providers whose accreditation has been revoked but where they are still delivering care.

Assessment contacts

Overview

Assessment contacts can be conducted in several ways, depending on the risk profile of the service and the reason or purpose of the assessment contact. We may conduct an assessment contact by:

• phone or email

• participation in a survey

• conducting a visit at the service announced or unannounced

• attending a management meeting or board meeting to seek or provide information on the accreditation process and requirements or to discuss issues relating to non-compliance.

For providers operating a residential service and a home service, a single assessment contact covering all those services may be conducted at the same time.

In 2019-20 the Commission increased the number of assessment contacts at home services to ensure greater oversight of home service providers against the Quality Standards.

Assessment contacts may occur with or without notice, with the majority being undertaken without notice. Assessment contacts conducted without notice (unannounced) provide increased assurance to the public that approved providers are held to account for meeting the Quality Standards at all times.

47 agedcarequality.gov.au Annual Report 2019-20

Unannounced assessment contacts focus on risk-based compliance monitoring. For example, we may assess the requirements of the Quality Standards that had the highest incidence of non-compliance across the sector in the previous financial year, or focus on one risk factor across all or part of the sector.

Risk-based responsive assessment contacts may be conducted where issues are identified in information provided by consumers or their representatives, the public, or if regulatory intelligence about the service or provider (for example, complaints or compulsory reporting information) identifies risk of harm to consumers or issues with the quality of care and services.

If a provider has been found non-compliant with one or more requirements of the Quality Standards, an assessment contact can also be used to monitor a provider’s progress against a plan for continuous improvement or assess the provider’s performance against the Quality Standards to determine if the provider has remedied the non-compliance.

Targeted assessment contacts may also be used as a quality and monitoring component of a Commission-wide regulatory campaign, or in response to certain areas of potential non-compliance or risk identified through regulatory intelligence.

Where there are reasonable grounds to form a view during an assessment contact that a provider of a service is not complying with the Quality Standards, we may escalate to a review audit for residential care services or a quality review for home services.

Where there is non-compliance with the Quality Standards, the Commission’s response will be risk-based and proportionate to ensure the service returns to compliance and addresses any risks to the safety, health and well-being of consumers.

In 2019-20, we conducted:

• 5,188 assessment contacts at residential aged care services

• 3,273 assessment contacts at home services

• 41 assessment contacts at National Aboriginal and Torres Strait Islander Flexible Aged Care Program services.

The Commission is committed to making more information from regulatory activities available and will publish performance reports following assessment contacts (performance assessments) from 1 July 2020.

Overview Assessment contacts

Assessment contacts

5,188 Residential care

Home services

Flexible care

3,273

41

8,502

48 agedcarequality.gov.au Annual Report 2019-20

Continuous improvement

Continuous improvement is a systematic, ongoing effort to improve the quality of care and services for aged care consumers.

Under the Rules, the provider of an aged care service must have a written Plan for Continuous Improvement (PCI) for the service that explains how they will assess, monitor and improve their quality of care and services. Further, Standard 8 of the Quality Standards requires the organisation’s governing body to be accountable for the delivery of safe and quality care and services. This includes having effective organisation-wide governance systems relating to continuous improvement. In practice this means that organisations must have a PCI and check their progress against this plan to improve the quality and safety of care and services. This has increased the focus on self-assessment as a core component of the continuous improvement process.

We may request a copy of a service’s PCI at any time. If there are circumstances where the Commissioner reasonably believes it is necessary for a service’s PCI to be revised to ensure compliance with the Quality Standards, a Direction to revise a PCI may be issued. Where there are areas in which improvements in relation to the service are needed to ensure the Quality Standards are complied with, the PCI should set out how the provider of the service will make those improvements. The Commission then monitors the provider to ensure that the necessary improvements are made.

Overview

49 agedcarequality.gov.au Annual Report 2019-20

Managing non-compliance

If we find a provider has failed to meet their responsibilities under the Aged Care Act 1997 and relevant principles, ACQSC Act, the Rules, or its funding agreement with the Australian Government, we apply a risk-based proportionate approach including monitoring and managing the compliance of approved providers to bring them back into compliance as quickly as possible. Action taken may include administrative or enforceable regulatory action.

Administrative action may be considered where risk to consumers is assessed as low or medium. This approach reflects the level of trust and confidence the Commission has in the provider’s motivation and capacity to manage the risk, and return to compliance. It signals to the provider where there has been a failure to meet responsibilities and encourages the provider to rectify the non-compliance and take action to sustain improvements.

In cases where the risk to consumers is medium to immediate and severe, where a provider has failed to remedy non-compliance, or failed to give or comply with an undertaking to remedy, the Commission may respond with enforceable regulatory action. This level of regulation reflects the Commission’s reduced confidence in the provider’s motivation or capacity to address the non-compliance.

Overview

50 agedcarequality.gov.au Annual Report 2019-20

Table 5: Enforceable regulatory activity

Type of enforceable regulatory activity Jul - Dec 2019 † Jan - Jun 2020 Total 2019-20

Sanctions 11 5 16

Notices to agree 0 5 5

Non-compliance notices 79 31 110

3 Sanctions: A penalty imposed by the Commission on operators of aged care services in cases of serious non-compliance with their responsibilities. Sanctions can include revocation of approved provider status, loss of Australian Government subsidies for new persons receiving care or revocation of allocated places.

4 Notice to Agree: Notice sent to an approved provider when the Commission is considering revocation of its approval to deliver aged care, after identified non-compliance.

5 Non-compliance Notice: A formal regulatory notice from the Commissioner to a provider stating the provider has been found non-compliant with the Quality Standards or Prudential Standards.

* Figures are for January to June 2020.

† For the period July to December 2019, the regulatory powers were a responsibility of the Department of Health.

Overview Managing non-compliance

Enforceable regulatory action is intended to oblige the provider to take action to address quality and safety risks and to comply with their responsibilities as quickly as possible. Enforceable regulatory action also acts to deter the provider from future non-compliance. In the event there is unwillingness or inability by the provider to address non-compliance, the Commission may consider revoking the provider's approval to deliver aged care. Enforceable regulatory action includes Non-compliance Notices, Notices to Agree and sanctions.

Since January 2020, when the Commission became responsible for these regulatory powers, the Commission has issued:

• five sanctions 3

• five Notices to Agree 4

• 31 Non-compliance Notices 5.

Regulatory actions *

5 Sanctions

Notices to agree

Non-compliance notices

5

31

41

51 agedcarequality.gov.au Annual Report 2019-20

Timetable for improvement Prior to 1 January 2020, where there was failure by a provider of a service to comply with the Quality Standards, the Commission was required to notify the provider of any areas for improvements to ensure compliance with the Quality Standards, and the timetable for making the improvements.

Overview Managing non-compliance

From 1 January 2020, the provision has been removed from the Rules as the Commission has new powers for monitoring and enforcing compliance under the ACQSC Act.

Accordingly, no timetables for improvement were issued in the second half of 2019-20.

In relation to timetables for improvement from 1 July to 31 December 2019, the following table describes the outcomes for services placed on a timetable for improvement (TFI).

Table 6: Timetable for improvement (TFI) statistics 1 July to 31 December 2019

Residential services

Number of services on TFIs at the beginning of the period 162

Number of services placed on TFIs during the period (includes services with not met expected outcomes that were not immediately placed on a TFI) 272

Number of services did resolve all not met expected outcomes by the end of TFI 209

Number of services did not resolve all not met expected outcomes by end of the TFI 32

Number of services with another TFI during the period 67

Number of services on continuing TFI at the end of the period 193

Home services

Number of home care services on TFIs at the beginning of the period 123

Number of services placed on TFIs during the period (includes services with not met expected outcomes that were not immediately placed on a TFI) 47

Number of services did resolve all not met expected outcomes by the end of TFI 20

Number of services did not resolve all not met expected outcomes by end of the TFI 8

Number of services with another TFI during the period 22

Number of services on continuing TFI at the end of the period 142

52 agedcarequality.gov.au Annual Report 2019-20

Serious risk Prior to 1 January 2020, if we found that a provider of a residential aged care service or a service delivering home care packages had failed to comply with the Quality Standards, a decision had to be made as to whether there was evidence that the failure had placed, or may have placed, the safety, health or well-being of a consumer of the service at serious risk.

The serious risk provisions have been removed from the Rules as the Commission has new powers for monitoring and enforcing compliance under the ACQSC Act. These new powers include identifying where there is immediate and severe risk to consumers and considering whether to impose sanctions. This removes duplication in considering evidence of potential harm to consumers.

Assessment teams continue to be alert to potential failure in the quality of care and services and risk of harm to consumers. Any evidence of risk to consumers is referred to a delegate of the Commissioner and may result in a risk assessment and escalation for consideration of immediate and severe risk and enforceable regulatory actions.

From 1 July 2019 to 31 December 2019, there were 64 findings of serious risk in residential aged care services and six in home services.

Overview Managing non-compliance

NSW VIC QLD SA WA TAS NT ACT AUS

Residential 27 8 16 6 5 2 0 0 64

Home services 1 0 4 0 0 0 1 0 6

Table 7: Decisions of finding Serious Risks 1 July 2019 to 31 December 2019

53 agedcarequality.gov.au Annual Report 2019-20

Strengthening home care compliance and responding to non-compliance We continued to enhance our integrated compliance and investigation capability as an end-to-end regulator of home services. We monitor the compliance of home care approved provider responsibilities, including the requirement to provide accurate and timely information to consumers, and appropriately manage home care package funds. We take compliance action against approved providers identified through complaints, quality reviews and audits, and other external sources where information received indicates potential or actual non-compliance.

Since January 2020, we have developed an action plan of regulatory activity to target home care, which focuses on information and education to assist regulatory compliance and mitigate risk through proportionate compliance action.

Overview Managing non-compliance

Prudential compliance and non-compliance in residential aged care The Prudential Standards outline how providers must manage the refundable accommodation payments of their residents. The Prudential Standards aim to protect the Refundable Accommodation Deposits (RAD) paid to providers by recipients of aged care services.

The four Prudential Standards (Liquidity, Records, Disclosure, and Governance) seek to reduce the risk of providers defaulting on their RAD balance refund obligations to care recipients, by requiring providers to:

• systematically assess their future obligations with RADs and the associated funding implications to ensure that they are able to meet their refund obligations as they fall due

• establish and maintain a register that records information about RADs and the care recipients who pay them

• establish and document governance arrangements for the management and expenditure of RADs (only for permitted uses)

• promote transparency of their financial management by disclosing information to care recipients, prospective care recipients and the Department of Health about their financial information and prudential compliance, and how they manage the RADs. 6

6 As part of its Aged Care Financial Report, an approved provider submits its Annual Prudential Compliance Statement (APCS) to the Secretary of the Department of Health. The provider’s prudential compliance is assessed by the Commission.

54 agedcarequality.gov.au Annual Report 2019-20

Overview Managing non-compliance

Providers who have charged RADs are required to complete and submit an Annual Prudential Compliance Statement (APCS) within four months of the end of their financial year (31 October for most providers), disclosing RAD holdings and compliance with charging, managing and refunding RADs against the prudential requirements.

7 Providers are required to submit an APCS within four months of the end of the financial year, hence 2019-20 data will not be available until after 31 October 2020.

* Figures include reported instances of non-compliance with late refunds and applicable interest.

Table 8: 2018-19 APCS assessments 7

Annual Prudential Compliance Statement Reported Non-Compliance 2018-19

Reported instances of non-compliance with the Records Standard 8

Reported instances of non-compliance with the Disclosure Standard 55

Reported instances of non-compliance with the Liquidity Standard 12

Reported instances of non-compliance with the Governance Standard 9

Reported instances of non-compliance with the Refunding Responsibilities * 98

In 2018-19, 849 providers lodged an APCS as they held one or more RADs for the financial year. See Table 8 for a high level overview of the APCS outcomes for this period.

We apply a responsive risk-based approach to regulation of prudential compliance to focus our activities on the areas of greatest potential harm to safety, finances, health and well-being of consumers.

55 agedcarequality.gov.au Annual Report 2019-20

Transparency of performance We are committed to providing transparency of performance information about providers to support consumer choice, promote continuous improvement and performance benchmarking with providers, and to give visibility to the Commission’s work.

We publish information about a provider’s performance in relation to their responsibilities as an aged care provider on our website. In addition, certain information is also published on the My Aged Care website.

The Rules require the Commission to publish certain information including site audit and review audit performance reports, accreditation and re-accreditation decisions, reconsideration decisions and Administrative Appeals Tribunal decisions.

We also publish other information about the outcomes of our regulatory and complaints functions such as:

• regulatory actions taken in response to provider non-compliance

• complaints directions

• sector performance data.

Publication of the outcomes of the Commission’s regulatory and complaints functions ensures transparency and visibility to:

• help consumers make informed choices about aged care services

• drive improvements in the quality and safety of aged care services

• enable providers to benchmark their performance and manage risks and continuous improvement

• inform the public about the Commission’s work.

Refer to the Regulatory Bulletin RB 2020-11 Publication of provider performance information on our website for further information.

Performance reports

From 1 January 2020, the Commission prepares a performance report following all performance assessments. The performance report:

• includes an assessment of the provider’s performance, in relation to a service, against the Quality Standards (compliant/ non-compliant decision for each assessed Standard and requirement level, where applicable)

• may specify any areas in which improvements must be made to ensure the Quality Standards are complied with

• may include any other relevant matters.

The new performance report allows for clear delineation between the report developed by the assessment team and the final performance report developed by the Commissioner.

In future years the performance reports following performance assessments will be published on the Commission’s website.

Overview Managing non-compliance

56 agedcarequality.gov.au Annual Report 2019-20

Overview Managing non-compliance

Intelligence-led regulation The Commission’s intelligence-led regulation is based on understanding and responding to both systemic risk and individual provider risk. Sector-wide risk is identified through research, sector trend analysis, and strategic conversations with consumers and providers. We use a variety of performance information and work with other regulators and stakeholders to identify and understand individual provider risk. Referrals also inform our understanding of risks.

From 1 July 2019 to 30 June 2020, the Commission received 15,662 internal and external referrals from a variety of sources. This included case intelligence from complaints, compliance and quality activities, and referrals from the public, the media and other organisations.

In 2019-20, we received 1,260 intelligence reports from state and territory government public health units; some in relation to outbreaks of infections.

Table 9: Source of referrals for 2019-20

Source of referrals Number of referrals, 2019-20

Internal (Complaints) 2,164

Internal (Quality Assessment & Monitoring) 8 7,355

Department including Compliance 874

State Government Public Health Units 1,260

Public, media, Royal Commission, other 4,009

Total 15,662

8 Includes referrals from consumer experience interviews and other surveys.

Risk-based targeting and information sharing

Leading up to 1 July 2020, the Commission supported the ‘More Choices for a Longer Life’ budget measure to strengthen regulation through risk-based targeting and information sharing. During 2019-20, the Commission worked with the Department of Health to co-develop risk profiling and information sharing tools. The tools will enable us to have a broader, integrated view of the aged care sector to improve identification of risk and protection of consumers’ health, safety and well-being. During 2020-21 we will integrate these tools into operational processes, as well undertaking further development to improve the predictive power and scope of risk areas of the targeting tools, to improve regulatory decision-making based on broader ranges of intelligence.

57 agedcarequality.gov.au Annual Report 2019-20

Overview Managing non-compliance

Compulsory reporting

To help protect aged care residents, the Aged Care Act 1997 has compulsory reporting provisions. The responsibility for receiving, assessing, and managing compulsory reporting transferred from the Department of Health to the Commission on 1 January 2020.

This means that approved providers of residential aged care services are responsible for ensuring that suspicions or allegations of reportable assaults occurring at their services are reported within 24 hours to both local police and the Commission.

The Act also requires approved providers to report if a consumer is absent from the service without explanation and the absence has been reported to the police. The Commission requests approved providers to advise if that consumer has returned to the service. If the consumer is still absent at the time of the report, the Commission will follow up with the provider until they have been located. In addition, the Commission may also follow up to ensure that appropriate actions have been put in place to prevent reoccurrence.

These requirements ensure that those affected receive timely help and support, and that operational and organisational strategies are put in place to prevent the situation from occurring again. Such strategies help to maintain a safe and secure environment for residents.

From 1 January 2020 to 30 June 2020, the Commission received 2,650 notifications  † in relation to assaults reported under the Act. There were 561 notifications of unexplained absences of residents.

In March 2020, the government provided additional funding to the Commission to expand its processes in relation to responding to compulsory reports. This has resulted in more detailed and timely risk assessments, and increased follow up with individual approved providers to determine the outcome of internal investigations and seek additional information where necessary.

Compulsory reporting *

Reportable assaults

Missing residents

2,650

561

3,211

* Figures are for 1 January to 30 June 2020.

† Includes three sub-categories of serious physical assault, sexual assault, and a combination of serious physical and sexual assault.

58 agedcarequality.gov.au Annual Report 2019-20

Overview Managing non-compliance

Consumer experience reporting Consumer experience interviews are one way that the Commission seeks to understand the consumer sentiment about the aged care sector. Consumer Experience Reports (CERs) commenced in 2017 in residential aged care services during site audits. From December 2019, the Commission changed the consumer experience collection from a routine randomised sample during site audits to a risk-based approach across all visits.

Given interest in the consumer experience of the home services sector, we continued to trial consumer experience interviews for home services. The interview questions were based on work in collaboration with the Australian Institute for Primary Care and Ageing from La Trobe University with testing by Dementia Australia. From 1 July 2019, consumers were provided the opportunity to participate in a face-to-face consumer experience interview or the same interview by telephone. An online option will be added in 2020-21.

From May 2020, a random sample of over 5,500 consumers of Home Care Packages (HCP) was invited to participate in a telephone survey about their experience of their HCP services. The telephone survey was a final trial to evaluate the feasibility of implementing an ongoing consumer survey of this kind for home services.

The Commission uses the feedback and results from these interviews with consumers to assist in gathering evidence to assess performance of the service. Accordingly, we may use the structured interview tool at any time when we have contact with service providers or consumers.

Delegation of decision-making Under the ACQSC Act and Rules, the Commissioner may delegate functions or powers to a member of the Commission’s staff. The delegations must be in writing and the delegate must comply with any written directions of the Commissioner.

The ACQSC Act and Rules provide the framework for our statutory decisions, including matters that must be taken into account when making a decision.

When making statutory decisions, delegates outline the reasons for the decision and evidence considered in making the decision. Decisions are clearly communicated to providers and may be published on our website.

Delegated decision-makers monitor statutory and internal decision-making timeframes to ensure that all timeframes are consistently met.

59 agedcarequality.gov.au Annual Report 2019-20

Overview Managing non-compliance

Workforce

Quality assessors

Registration of quality assessors

Our performance assessments are undertaken by registered quality assessors who have:

• completed an approved course delivered by the Commission about aged care quality assessment

• satisfied a range of other requirements as specified in the Rules.

At 30 June 2020, there were 207 registered quality assessors nationally, where:

• 136 (66 per cent) were employed by the Commission on a full-time, part-time or casual basis

• 12 (six per cent) were external assessors engaged on a contract basis

• 34 (16 per cent) were external assessors engaged on a contract basis through a labour hire agency

• 25 (12 per cent) had current registration but may have ceased employment or were no longer contracted by the Commission to conduct assessment activities.

In 2019-20 we made two decisions to refuse re-registration of a quality assessor and cancelled the registrations of three quality assessors upon their request.

Of the 207 registered quality assessors, 92 (44 per cent) had nursing qualifications and experience.

Allied health professionals are among the other registered quality assessors.

A person whose registration as a quality assessor has been refused or cancelled may request reconsideration of the decision to refuse or cancel the registration. In 2019-2020 there were no requests for reconsideration of a registration decision.

Read more about our workforce in Management and Accountability from page 101.

Continuing professional development

Quality assessors are required to undertake a minimum of 15 hours of relevant training each year they are registered. At least 10 of the 15 hours must be training developed, delivered or approved by the Commission.

The Continuing Professional Development (CPD) program aims to:

• develop quality assessor skills and knowledge, and maintain currency related to the industry environment and government policy agenda

• contribute to the annual 15 hours of professional development required to be undertaken by all quality assessors to maintain their registration.

In 2019-20, we made available six hours of face-to-face training to each quality assessor through CPD workshops held in October and November 2019. Further training and reading options identified as suitable CPD by other providers were also approved by the Commission and made available to quality assessors to contribute towards the CPD requirements to maintain their registration.

60 agedcarequality.gov.au Annual Report 2019-20

Overview Managing non-compliance

Seeking provider feedback

We regularly seek feedback from providers on assessment and monitoring visits conducted by our quality assessors.

At the conclusion of a site visit, providers are invited to complete a confidential feedback form about the visit. The responses inform the Commission’s continuous improvement processes.

Collection of all feedback is completed by an independent third party, Datatime Services.

During 2019-20, the confidential site visit feedback form was revised to reflect the implementation of the Quality Standards, and to better align with our assessment methodology and quality assessor code of conduct. Data is collected from visits to residential aged care services, home services and National Aboriginal and Torres Strait Islander Flexible Aged Care Program services.

During 2019-20, 617 of the revised site visit feedback forms were received, and the summary of responses are outlined in Table 10. The majority of visits were assessment contacts (56 per cent) followed by site audits (36 per cent). Overall sentiment was positive, with 78 per cent of the core questions returning positive responses (strongly agree or agree) and 97 per cent of the focus questions returning positive responses.

61 agedcarequality.gov.au Annual Report 2019-20

Table 10: Summary of feedback received from the confidential site visit feedback form, 2019-20

Questions

% positive responses % neutral responses

% negative responses

1. On arrival, the assessment team members introduced themselves to you and gave you a written notice about their authority for the visit 97.2% 1.0% 1.8%

2. The assessment team explained how the assessment would be conducted 97.7% 1.0% 1.3%

3. The assessment team communicated effectively with you and your staff during the visit 93.0% 2.3% 4.7%

4. The assessment team spoke with consumers and their representatives to discuss the care and services they are receiving 97.4% 1.1% 1.5%

5. The assessment team were respectful during the visit 94.3% 2.3% 3.4%

6. The assessment team took reasonable steps to minimise the impact of their visit on the operation of the service 92.0% 4.7% 3.2%

7. The assessment team helped you and your staff to understand the information they were seeking 91.4% 4.6% 4.1%

8. The assessment team were fair in their approach 90.4% 5.1% 4.6%

9. A member of the assessment team met with you on the last day of the visit to discuss the key issues that the team identified during the visit 93.7% 3.3% 3.0%

Focus question: My service engages consumers as partners in the design and delivery of care 97.2% 1.8% 1.0%

Overview Managing non-compliance

62 agedcarequality.gov.au Annual Report 2019-20

Complaints resolution

Overview

We continue to promote our complaints resolution processes and to support people to resolve concerns with their service providers.

Our focus is on resolving concerns in the best interest of the person receiving care. Anyone can raise a concern with the Commission. People who make a complaint can choose to remain anonymous or request that we keep details about themselves or the person receiving care confidential. Our complaints service is free.

63 agedcarequality.gov.au Annual Report 2019-20

Overview Complaints resolution

We examine concerns raised about services that provide Australian Government funded:

• residential or respite care

• home care packages

• Commonwealth Home Support Program (CHSP) services

• flexible care, including transition care, innovative care or multi-purpose services and the National Aboriginal and Torres Strait Islander Flexible Aged Care Program.

We examine concerns about a service provider’s responsibilities under the Aged Care Act 1997 and associated principles, or under a government funding agreement. These responsibilities include complying with the Quality Standards, which provide an essential reference point when we work with service providers and consumers to resolve complaints.

We assess each complaint to determine the level of risk it presents to aged care consumers. We take a proportionate approach and aim to resolve complaints informally and cooperatively with the parties, where it is appropriate. Higher risk and more complex complaints are managed through a more formal process, which may include conciliation and investigation. Where necessary, the Commission can direct a service provider to demonstrate that it is meeting its responsibilities under the Act or its agreement.

Complaints are an important source of intelligence to inform how the Commission assesses risk and decides what regulatory approach is taken. Where a complaint indicates a risk to consumers, we will take immediate action. This may include an immediate discussion with the service provider, a site visit, or other activities to monitor or assess the service against the Quality Standards. We also consider complaints when determining whether formal regulatory action is taken.

Public awareness of the Commission’s establishment, a broader community focus on the aged care sector and the impact of the COVID-19 pandemic are likely to have contributed to an increase in the number of contacts and complaints in 2019-20 as outlined below.

64 agedcarequality.gov.au Annual Report 2019-20

Contacts We received 19,782 contacts in 2019-20, a 13 per cent increase on the 17,579 contacts received in 2018-19. Of these, 5,002 (25 per cent) related to matters about non-Australian Government funded aged care services that we could not directly assist with. With such contacts, we provide limited assistance and suggest other avenues be pursued or suggest other organisations to contact.

The remaining 14,780 contacts were within our scope and included 6,164 (31 per cent of the total) enquiries. Enquiries that are in scope can include matters such as requests for information from people who want to better understand the responsibilities of a provider or how to raise a concern directly with a service provider. We provide information to the person who has contacted us and invite them to contact us again if they require further assistance. We also managed 56 own initiative resolution processes and 21 new resolution processes as the result of requests for review (see below for explanation of these processes).

The remaining 8,539 contacts (43 per cent) were classified as complaints.

Complaints received The number of complaints lodged with the Commission increased from 7,828 in 2018-19 to 8,539 in 2019-20 (a nine per cent increase). Of the 8,539 complaints received in 2019-20:

• 6,335 were about residential care (74 per cent)

• 1,790 were about home care packages (21 per cent)

• 340 were about CHSP (four per cent)

• 74 were about flexible and community care (one per cent).

In 2019-20, more than half of all complaints (53 per cent) were raised by a representative or family member of the consumer (4,507). Consumers raised 20 per cent of complaints (1,686) on their own behalf, other interested person(s) raised seven per cent (602) and other complainant types including external agencies and service providers accounted for two per cent (175) of complaints. The remaining 18 per cent were raised anonymously (1,569).

Overview Complaints resolution

Who complains to us

Representative or family 4,507 Consumers 1,686

Anonymous 1,569

Other interested person(s) 602 External agencies & providers 175

65 agedcarequality.gov.au Annual Report 2019-20

Overview Complaints resolution

Issues included in complaints Each complaint can include more than one issue and we may resolve them in different ways. We received 19,625 complaint issues during 2019-20, comprising 15,667 for residential care, 3,265 for home care packages, 525 for CHSP and 168 for flexible and community care.

The most common issues raised in complaints about residential aged care were:

• medication administration and management

• personnel number/sufficiency

• falls prevention and post-fall management

• infectious diseases/infection control

• representative/family consultation and communication.

For home care packages, the most common complaint issues were:

• fees and charges

• lack of consultation/communication

• consistent client care and coordination

• management of finances

• communication about fees and charges.

For CHSP, the most common complaint issues were:

• lack of consultation/communication

• fees and charges

• domestic assistance

• consistent client care and coordination

• management of finances.

For flexible and community care, there were too few issues to be able to report on common categories.

We received 74 requests for a review of a complaint decision. We commenced 21 new resolution processes, as a result of requests for review.

Complaints finalised We finalised 8,087 complaints in 2019-20. We aim to resolve complaints as quickly as the circumstances permit. Our stated key performance indicator is that we resolve 80 per cent of complaints within 60 days. We finalised 6,053 complaints (75 per cent) within 60 days.

Complaints are resolved in different ways depending on the risk and complexity of the issues raised. When we receive a complaint, assessment of risk to aged care consumers determines how quickly we need to act. Where a complaint suggests a higher level of risk, we will commence a process within 24 hours, while we may take longer to begin a process when a complaint indicates a lower risk. Early in the process, we may collect information from the parties involved in the complaint, including the person who raised the complaint, the consumer or their representative, and the service provider. We assess this information and decide how to address the concern. Where a risk to consumers has been identified, we also determine if further assessment and monitoring actions, such as an unannounced site visit, are required.

66 agedcarequality.gov.au Annual Report 2019-20

Early resolution

Where possible, we support the complainant to resolve their concerns directly with the service provider using an early resolution process. In this phase, we may facilitate conversations between the complainant and the service provider and we may ask the service to provide information to us to show how they have addressed the complainant’s concerns. While the process is relatively informal, it can still take some time to achieve a resolution. Throughout this process, we provide updates to the complainant about how the complaint is progressing and we assess new information as it is received to identify any change to the risk to consumers. A total of 7,701 of the 8,087 complaints that were finalised this year (95 per cent) were finalised using early resolution. Of the 18,678 complaint issues we finalised in 2019-20, 17,264 (92 per cent) were finalised during early resolution.

During early resolution we may decide to take no further action about a complaint or some of the issues within a complaint. This includes where:

• we refer a particular issue to another area or organisation that is better placed to assist

• the issue is withdrawn by the complainant

• we are satisfied that the provider has taken sufficient action to address the concerns.

Of the issues finalised during early resolution, 7,511 issues (44 per cent) required no further action.

Formal resolution approaches

Where early resolution is not possible or appropriate because of the risk to consumers or the complexity of the issues, we employ more formal approaches to resolve issues. Different issues within a complaint may be approached differently so that more than one approach can be used in a single complaint.

There were 386 complaints resolved using these more intensive methods. These complaints were addressed using the three approaches of investigation (used in 325 complaints), provider resolution (66) and conciliation (17). These complaints comprised 1,414 issues. Complaints that require more intensive approaches may also need advice from the Commission’s clinical advisors or legal team, and this can increase the time required to resolve the complaint.

Overview Complaints resolution

67 agedcarequality.gov.au Annual Report 2019-20

Notices of intention to give directions (notices) and directions During a resolution process, the Commission may decide to direct a service provider to take action to comply with its responsibilities under the Act and the Aged Care Principles or under an agreement. Before giving a direction, we must give a notice to the service provider that we intend to give a direction. The notice explains the preliminary findings on any issues of concern and gives the service provider the opportunity to respond to the concerns by identifying how it has addressed, or will address the issues identified. If the response to the notice is inadequate, we must direct the service provider to take certain action to comply with its responsibilities. Service providers are required to comply with such a direction. If we are not satisfied with the service provider’s response, we may take compliance action against the provider.

The Commission sent six notices during the period. All six notices did not result in a direction being issued because the services satisfactorily addressed the concerns that were raised, or the service had not yet responded by 30 June 2020, or we were still considering the service’s response.

We issued five directions in 2019-20, which were all based on notices that were issued in 2018-19.

External referrals In certain circumstances the Commission releases information to other organisations such as the Department of Health, state and territory governments, Public Health Units, the police, coroners, the Australian Health Practitioner Regulation Agency, and health care complaints bodies. We do this when the other organisation is better placed to assist or to act on the information.

We made 77 referrals to external organisations, including 41 to the Department of Health where matters were out of scope for the Commission or were of a nature that the Department was the more appropriate agency to deal with them. The matters referred to the Secretary of the Department were about management of finances, and fees and charges.

The other 36 referrals were to other external agencies such as state and territory governments, advocacy organisations and coroners.

Own initiative resolution processes The Commission can also initiate a resolution process based on information received from a source other than a complaint. During 2019-20, we commenced 56 processes on our own initiative. The issues were diverse but most related to change of clinical status/deterioration, physical abuse, falls prevention and post-fall management, and fees and charges. We finalised 46 own initiative resolution processes.

Overview Complaints resolution

68 agedcarequality.gov.au Annual Report 2019-20

Education and engagement

Overview

Our education and engagement function directly contributes to supporting the sector to improve performance against the Quality Standards and outcomes for consumers. Through our engagement and education activities, we aim to build confidence and trust in the aged care system, empower consumers, support providers to comply with the Quality Standards, and promote best practice service provision.

In 2019-20, the Commission’s education program continued to focus on the Quality Standards, with specific emphasis on ensuring aged care providers could confidently assess their performance. The education program included:

• the establishment of the Aged Care Learning Information Solution (Alis)

• delivery of workshops for the sector on the Quality Standards

• providing support and information to the sector via the website and aged care provider webinar sessions.

Aged Care Learning Information Solution The Commission launched the online Alis program to the sector on 20 February 2020.

Alis provides the sector with access to the Commission’s educational programs anywhere and at any time. The initial modules have been designed to focus on the Quality Standards. These modules are consistent with the information in guidance and resources. However, the information is delivered as an interactive online learning experience through the use of infographics, case studies and knowledge checks.

69 agedcarequality.gov.au Annual Report 2019-20

Users who complete the Quality Standards learning program will understand:

• the intent and application of each of the Quality Standards

• some of the key concepts within the Quality Standards and what these mean in practice

• the steps they can take to prepare their organisation for performance assessment against the Quality Standards.

The program includes nine modules. In addition to an introductory module called ‘Getting to know the Standards’, there is a separate module for each of the individual Standards. The modules can be completed in any order and are designed to support staff of aged care providers in the delivery of quality aged care services.

Each aged care service was offered up to four free licences to access the learning content within Alis. At 30 June 2020, 3,544 users were registered with Alis.

Of these users, 1,338 represent active learners, with the remaining users representing the management accounts held by service providers. Of the 1,338 learners, the average completion rate for the Standards modules is 66 per cent. User and completion numbers continue to grow weekly.

Learners are encouraged to provide a review of each module as they are completed. The current reviews rate each of the Standards modules as four out of five stars.

Overview Education and engagement

Alis users

Active learners

Management accounts

1,338

2,206

3,544

70 agedcarequality.gov.au Annual Report 2019-20

Courses and workshops The Commission’s courses and workshops help us engage with the sector in relation to performance assessment and continuous improvement. In 2019-20, our courses and workshops focused on the assessment of performance against the Quality Standards and were well received nationwide.

The education sessions held by the Commission during 2019-20 were attended by more than 620 participants. While the number of face-to-face courses and workshops were lower than anticipated due to COVID-19, service providers were encouraged to take up their four free licences within Alis to access educational content in relation to the Quality Standards. Prior to the deferral of our face-to-face workshops, the following took place:

• During the previous financial year, 73 one-day ‘Preparing for the new Standards’ workshops were conducted during February and June 2019. These sessions were concluded in July 2019 with an additional six workshops attended by 72 participants.

• New workshops, ‘Assessing the Standards’ were launched in January 2020. Two versions of this workshop were available - one tailored to staff of residential aged care facilities and the other to staff from home services. Prior to the deferral of these workshops due to COVID-19, a total of 18 residential workshops were attended by 263 participants. In addition, 17 home services workshops were delivered to 263 participants.

Information and resources In addition to the content within Alis and the educational courses and workshops, aged care providers accessed a variety of educational resources through the Commission’s website. A number of resources were published in 2019-20.

Storyboards

Aged Care Quality Standards storyboards were designed to provide a pictorial representation of how each of the Quality Standards apply. They were developed to support consumers, staff and others interacting with aged care services. Imagery was tailored to those in a rural and remote context.

The initial suite of storyboard resources was published in December 2019 and included 11 topics - an introduction to the Quality Standards, a separate explanation of each individual Quality Standard, dignity of risk and open disclosure. The storyboards were accompanied by a detailed user guide providing further context on the background to each story. This user guide was intended to support facilitators who might incorporate these resources into training for their aged care staff.

Overview Education and engagement

71 agedcarequality.gov.au Annual Report 2019-20

Consumer engagement resource

The Commission published a resource that identifies and develops a range of best practice strategies and tools for providers of aged care when they engage with consumers and their representatives.

In addition to these resources, a ‘design your care’ activity was developed to raise awareness of the importance of individual identity, culture and diversity.

More information about our consumer engagement activities and development of the consumer engagement resource is available in the Consumer engagement section.

Webinars/videos

More than 370 representatives from aged care organisations registered to attend the webinar ‘Accountabilities of governing bodies in aged care’ in November 2019. A recording of this webinar was made available following the session and has had over 3,400 views.

A webinar was offered to providers in Victorian residential services to support their preparation and preparedness for a COVID-19 outbreak, which was attended by 487 participants.

The Commission expanded the range of video resources on the website, including:

• a recording of the ‘Accountabilities of governing bodies in aged care’ webinar, which was tailored for members of governing bodies and senior executives of aged care services and included governing bodies’ accountabilities under Standard 8 - Organisational Governance and the main components of clinical governance

• a short video providing information about open disclosure, developed in collaboration with online training services provider, Altura Learning.

Overview Education and engagement

72 agedcarequality.gov.au Annual Report 2019-20

Translated resources

The Commission translated resources to provide support to both providers and consumers from culturally and linguistically diverse communities. The translated resources added in 2019-20 included:

• the consumer video, ‘What the new Aged Care Quality Standards mean for you’

• the poster, ‘Aged Care Quality Standards Consumer Outcomes’.

These resources have been translated into 25 languages.

Complaints education

Complaints officers regularly provide education sessions to service providers, consumers and their representatives, and the public, about the Commission’s complaints resolution functions.

These sessions typically include information about:

• who we are and what we do

• raising concerns

• what happens when a complaint is raised with us

• how our complaints process works

• top complaint issues in both residential and home care settings

• tips for consumers on how to raise a complaint.

In 2019-20, we delivered 36 sessions to service providers and four sessions to consumer groups.

The Commission presented at a series of Inclusive Approach to Service Delivery in Aged Care workshops across the country, organised by the Partners in Culturally Appropriate Aged Care (PICAC). These workshops were aimed at service providers and discussed how culturally inclusive care and cultural safety are fundamental concepts in the Quality Standards, the Charter of Aged Care Rights, and the Aged Care Act 1997. Aged care and services are expected to be responsive, inclusive and sensitive to consumers from culturally and linguistically diverse communities, Aboriginal and Torres Strait Islander peoples, and LGBTI communities.

We also presented at the 4th National LGBTI Ageing and Aged Care Conference in June, where similar concepts were discussed.

Overview Education and engagement

Complaints education sessions

Service providers

Consumer groups

36

4

40

73 agedcarequality.gov.au Annual Report 2019-20

New resources and tools A range of resources and tools were made available on the Commission’s website to support the implementation of the Quality Standards from 1 July 2019:

• A new language glossary to reflect the work of every member of staff in the Commission and support our goal of one voice and one culture.

• A reviewed and updated quality assessor training program, assessment methodology and other procedures to optimise quality assurance checks and balances.

• Guidance on Clinical Governance in the form of tailored fact sheets to support performance under Standard 8 Organisational Governance, and guidance on open disclosure to support providers to practice open disclosure with consumers when things go wrong.

• A range of resources, self-assessment tools and case studies of different scenarios to promote better practice in minimising the use of physical and chemical restraints. The Commission is participating in the review of the restraints principles, managed by the Department of Health.

Overview Education and engagement

An interim review of the Quality Standards Guidance and Resources was completed in early 2020. Outcomes from the interim review indicate broader stakeholder engagement will be valuable to support our learnings and inform the next stage of evaluation. We have committed to review the Standards Guidance and Resources to ensure it remains contemporary and reflects best practice.

The Commission’s Chief Clinical Advisor is establishing themed Expert Advisory Groups and developing resources in some high-risk clinical areas, initially around nutrition in aged care.

74 agedcarequality.gov.au Annual Report 2019-20

Overview

Consumer engagement

An important function of the Commission is consumer engagement, where we develop, in consultation with aged care consumers and their representatives, best practice models for the engagement of providers with their aged care consumers and to promote those models to providers.

A key initiative of consumer engagement in 2019-20 was the Consumer Engagement Project, overseen by a steering group of key stakeholders. The project included:

• a literature review of successful  co-design models and practices across a range of industry sectors both in Australia and internationally, which could have relevance to the Australian aged care sector

• a survey report providing views of consumers and providers about existing successful models of co-design of aged care services

• a discussion paper that outlines the goals, objectives and desired outcomes of best practice consumer engagement by service providers, proposes core characteristics of best practice models and strategies, and offers criteria for use by providers in assessing existing consumer engagement practices

• a forum of key stakeholders to inform the development of contemporary, practical guidance to aged care providers on best practice consumer engagement in the planning and delivery of their aged care services

• development of a range of initial best practice consumer engagement models and strategies across different care settings, and implementation tips for aged care providers

• a plan to promote these initial best practice models through the Commission’s education and information functions

• strategies to continue the development and improvement of models and strategies of consumer engagement and co-design to develop a sustainable model for accepted best practice into the future.

As an outcome of this project, a number of resources were published on the Commission’s website in January 2020. These resources were designed to support aged care providers in improving the way they engage with their consumers and included the ‘Care that is right for me’ resource, a literature review and a report of the survey findings.

75 agedcarequality.gov.au Annual Report 2019-20

Communications activities

Overview

The Commission’s communications activities support the promotion and provision of information to aged care providers, consumers and the general community. The activities support and enhance our consumer engagement, education and engagement functions. We have a number of methods for communicating with our audiences.

Media relations The Commission receives requests for information and comment from media outlets including television, radio, newspaper and online. In 2019-20, the Commission received more than 300 media enquiries.

Website We continue to use the Commission’s website as the key source of information for the sector and community. During the COVID-19 pandemic, the Commission established a dedicated COVID-19 section with a direct link from the homepage to a collection of resources and information from a range of reliable sources that was regularly updated.

During 2019-20, we prepared for the publishing of performance reports resulting from assessment contacts. These will provide greater transparency of information about provider performance. The functionality is due to go live in July 2020.

Quality Standards app In November 2019, the Commission launched its Quality Standards mobile app. The app gives users instant, on-the-go access to information on the Quality Standards via a mobile device. It includes all the key information about each of the Quality Standards, including the consumer outcome and organisation statement, and the requirements that underpin the Quality Standards. As well as a glossary, the app has links to further information, guidance and resources on the Commission’s website.

S tandard 6Standard 5

Standard 2 S ta n d a r d 3 Stand ard 1Stan d

a r d 7

St an da

rd 8

St an da

rd 4

S

t a

n d a r d 1 Standard 1

Aged Care Quality Standards

Select a Standard to learn more

76 agedcarequality.gov.au Annual Report 2019-20

The app is available from the App Store (for Apple devices) or Google Play (for android devices). At 30 June 2020, the app had 4,579 downloads on the Apple App Store and 1,654 downloads on Google Play.

Installed on a total of 6,233 devices in seven countries (Australia, UK, US, India, Ethiopia, China and New Zealand), the app is overwhelmingly used on mobile phones more than larger screen devices like tablets or iPads.

Over time, the app will be further developed to include more information for providers and consumers to ensure that anyone needing Quality Standards content will be able to access it anywhere, anytime.

Aged Care Quality Bulletin Our newsletter, the Aged Care Quality Bulletin, is distributed monthly via email and is also available on the Commission’s website. During the COVID-19 pandemic, the Bulletin moved to a fortnightly edition. At 30 June 2020, the Quality Bulletin had more than 12,000 subscribers. The Bulletin is for people with an interest in aged care including providers, consumers and other members of the sector.

Regulatory Bulletins Regulatory Bulletins provide targeted communication to assist providers to understand how specific requirements and processes fit into the overarching aged care regulatory framework - articulating expectations and underlying reasons for the Commission’s approach.

Regulatory Bulletins are published on our website. Providers can subscribe to our newsletter to be notified of the release of Regulatory Bulletins.

Regulatory Bulletins published or updated in 2019-20:

• Issue no. 2020-11 - Publication of provider performance information

• Issue no. 2020-10 - Quality assessor registration

• Issue no. 2020-09 - Assessment Contacts in residential and home services

• Issue no. 2019-08 - Regulation of physical and chemical restraint

• Issue no 2019-07 - Reconsideration of regulatory decisions

• Issue no. 2019-06 - Regulatory decision-making

• Issue no. 2019-05 - Aged Care Quality Standards performance assessment methodology

• Issue no. 2019-04 - Responding to non-compliance with the Aged Care Quality Standards

Regulatory Bulletins superseded in 2019-20:

• Issue no. 2019-02 - Assessment contacts in residential services (superseded by issue no. 2020-09)

Rescinded Regulatory Bulletin:

• Issue no 2019-01 - Serious risk (made obsolete due to the removal of the serious risk provisions from the Aged Care Quality and Safety Commission Rules from 1 January 2020).

Overview Communications activities

77 agedcarequality.gov.au Annual Report 2019-20

Annual

performance statements

Annual performance statements

78 agedcarequality.gov.au Annual Report 2019-20

Introduction

Annual performance statements

I, Janet Anderson, as the accountable authority of the Aged Care Quality and Safety Commission, present the 2019-20 annual performance statements of the Commission, as required under section 39(1)(a) of the PGPA Act. In my opinion these annual performance statements accurately reflect the performance of the Commission and comply with section 39(2) of the PGPA Act.

The annual performance statements include:

• an outline of our performance against the outcome and program framework and performance information set out in the Portfolio Budget Statements 2019-20

• a report against the performance measures included in our 2019-20 Corporate Plan.

• a report on the Commission’s financial performance including a summary of the total resources of the Commission and total payments made during 2019-20 (entity resource statement)

Figure 6 on the following page shows the link between the Commission’s Portfolio Budget Statements, the purpose set out in our Corporate Plan, and our annual performance statements.

79 agedcarequality.gov.au Annual Report 2019-20

Figure 6: Relationship between Portfolio Budget Statements, Corporate Plan and Annual Performance Statements

Annual performance statements Outcome and program structure

,

Portfolio Budget Statements

Corporate Plan Purpose

Annual Performance Statements (Annual report)

To protect and enhance the safety, health, well-being and quality of life of aged care consumers

Report against Portfolio Budget Statements performance criteria and Corporate Plan performance measures

Program 1.1 Quality aged care services

Outcome 1

To protect and enhance the safety, health, well-being and quality of life of aged care consumers including through effective engagement with them, regulation and education of Commonwealth-funded aged care service providers and resolution of aged care complaints

80 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements

The Aged Care Quality and Safety Commission commenced operations on 1 January 2019 as a result of a Machinery of Government change. The functions, people and net assets of the Australian Aged Care Quality Agency and the Aged Care Complaints Commissioner, were transferred to the Commission.

On 1 January 2020, the Commission became responsible for approval of providers, aged care compliance (including Prudential Standards) and compulsory reporting, which were previously the responsibility of the Department of Health.

The report on performance covers the year ended 30 June 2020.

The Commission’s performance was impacted by:

• full year effect of the Machinery of Government movement of 1 January 2019

• incorporating policies and procedures throughout the new organisation

• significant investment in ICT services and systems

• investment in operation systems in further enhancing safety and quality in residential and home care aged services

• making a significant contribution to the Royal Commission into Aged Care Quality and Safety

• integrating additional regulatory functions into the Commission from 1 January 2020

• impacts of COVID-19 on our monitoring, regulatory and corporate functions

• introducing the new AASB 16 Leasing accounting standard.

Report on performance

81 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements

This section covers our performance against the outcome and program’s performance information set out in the Portfolio Budget Statements 2019-20.

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government entities achieve the intended results of their outcome statements.

Entities are required to identify the programs that contribute to government outcomes over the Budget and forward years.

The Commission is responsible for a single government outcome as described below with its related program and the performance indicators and targets used to assess and monitor its performance in achieving the outcome.

Deliverables for the 2019-20 Portfolio Budget Statements for the Commission are under Outcome 1, Program 1.1 Quality Aged Care Services.

Outcome and program structure

Outcome 1 Protect and enhance the safety, health, well-being and quality of life of aged care consumers, including through effective engagement with them, regulation and education of Commonwealth-funded aged care services providers and resolution of aged care complaints.

Program objective The objective of Program 1.1 Quality Aged Care Services is to protect and enhance the safety, health, well-being and quality of life of aged care consumers through the accreditation, assessment and monitoring of aged care services that are subsidised by the Australian Government, and the timely and effective resolution of complaints about these services. The Commission aims to build confidence and trust in the provision of aged care services, empower consumers, advise providers on compliance with Quality Standards, and promote best practice service provision through engagement and education activities.

82 agedcarequality.gov.au Annual Report 2019-20

Program delivery How the program is delivered:

• Consult with consumers to develop and promote best practice models for provider engagement with consumers.

• Effectively assess and monitor aged care services against aged care standards.

• Provide information and education to consumers, providers and the public to support the Commission’s functions.

• Provide timely and effective resolution of complaints about aged care services.

Annual performance statements Outcome and program structure

Results The Commission has 39 performance measures in its 2019-20 Corporate Plan. The majority (27) were achieved and 10 were partially achieved and most of these are ongoing in the 2020-21 year. Two were not achieved, mainly due to activities impacted by COVID-19 and the need to divert resources to monitoring activities and areas of high risk.

The Commission’s regulatory program was adjusted in March 2020 to focus additional effort on risks arising from the COVID-19 pandemic and to ensure that providers were doing everything possible to keep aged care consumers safe. The Commission’s modified regulatory program increased the frequency of assessment contacts with providers, replaced unannounced site visits with ‘short-notice’ visits on a risk basis, deferred residential re-accreditation audits and reprioritised home services quality audits. Unannounced site visits were resumed in June 2020.

We also prioritised provision of information, guidance and education programs for providers and consumers in line with latest public health and clinical advice.

More information about our response to the COVID-19 pandemic is included in the Year in review section. Other factors that impacted on the Commission’s performance are outlined in the Report on performance section.

83 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Outcome and program structure

Table 11: Results against performance criteria

Portfolio Budget Statement performance criteria 2019-20 target Result Reference in

Corporate Plan

Consult with consumers to develop and promote best practice models for provider engagement with consumers

Develop and promote best practice models for provider engagement with consumers

Achieved

A range of best practice models were developed in consultation with consumers and ongoing promotion of models and strategies is in place using resources developed

Priority three: Enhance engagement of aged care consumers

Focus area 3.1: Consumer engagement project

Assess and monitor aged care services’ compliance with the Aged Care Quality Standards

Services are assessed against the aged care standards in accordance with the Rules and compliance monitoring is targeted to areas of identified risk

Not achieved

Some statutory timeframes and activity levels not met for site and quality audits due to diversion of resources to areas of high risk, including COVID-19 related risks

Priority five: Deliver effective risk-based regulation against the Aged Care Quality Standards

Focus area 5.2: Regulatory program

Complaints are resolved within 60 days

80 per cent Not achieved

75 per cent of the 8,087 complaints resolved were resolved within 60 days compared with 83 per cent of the 7,329 complaints resolved in 2018-19. The performance criterion was not met due to increase in complaint numbers and complexity, and a surge in complaints arising from COVID-19

Priority four: Deliver effective complaints resolution for aged care consumers

Focus area 4.1: Management of complaints

84 agedcarequality.gov.au Annual Report 2019-20

Corporate plan

Annual performance statements Corporate plan

Our purpose

To protect and enhance the safety, health, well-being and quality of life of aged care consumers.

The following tables report on the Commission’s results against the performance measures for the six priorities in the 2019-20 Corporate Plan and the associated focus areas for each priority.

Comments have been included to explain results in which performance measures have been partially achieved or not achieved and to provide information about work that is continuing during the period of the 2020-21 Corporate Plan.

85 agedcarequality.gov.au Annual Report 2019-20

Table 12: Priority one results

Focus area Aim Performance measure Result

1.1

Corporate governance

To ensure that the Commissioner and Minister have access to valued, strategic advice

The Aged Care Quality and Safety Advisory Council is supported to provide timely and strategic advice to the Commissioner, and to the Minister on request

Achieved

To implement a corporate governance framework to manage risk and support continuous improvement of the Commission’s operation

Risk register and quality assurance framework in place and monitored

Partially achieved

Regulatory risk management framework developed and Regulatory Integration Project ongoing.

With transfer of additional regulatory functions in January 2020, further work underway to develop organisation-wide quality assurance framework.

To fully operationalise the Chief Clinical Advisor’s role and support structures

A model established to support the role of the Chief Clinical Advisor

Achieved

Annual performance statements Corporate plan

Priority one: Continue building the Commission as a trusted and effective regulator

Intended result

A Commission that is trusted by consumers, providers and the community as a fair and effective regulator of aged care services

‘Partially achieved’ is used to describe aims which have commenced, are not complete and are continuing at the end of the period. ‘Not achieved’ is used to describe aims that have either not commenced or where quantitative targets have not been achieved.

86 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Focus area Aim Performance measure Result

1.2

Integrated compliance functions

To build an end-to-end, effective regulatory framework

Compliance and other regulatory functions successfully transitioned to the Commission from January 2020

Achieved

1.3

Royal Commission into Aged Care Quality and Safety

To ensure the Commission is supporting and informing the work of the Royal Commission into Aged Care Quality and Safety

100% of requests from the Royal Commission responded to within requested timeframes

Achieved

To be responsive to the findings and recommendations of the Royal Commission

Work with government to respond to findings and recommendations of the Royal Commission within established timeframes

Proactively communicate changes implemented as part of the government’s response to the Royal Commission’s findings and recommendations

Achieved

Responded to Interim Report.

Royal Commission extended and responsiveness ongoing.

87 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Focus area Aim Performance measure Result

1.4

Corporate capability and resources

To ensure the Commission’s workforce is capable, skilled and engaged to deliver its functions

A strategic workforce plan in place to support contemporary recruitment, training and performance management of staff

Partially achieved

Delayed to December 2020 due to diversion of resources to COVID-19 response.

To implement an improved performance development framework and learning strategy to build staff capability

A contemporary performance development framework and learning strategy implemented

Achieved

To ensure staff have appropriate IT equipment, access to technology and business system improvements

Devices, technology and business systems continue to meet changing business needs

Partially achieved

Ongoing improvement to business systems.

To provide advice to government on resource requirements and ensure efficient utilisation of resources to meet the Commission’s priorities

Expenditure is within allocated budget Achieved

To review and enhance internal communication and engagement strategies

Improved staff engagement and satisfaction with the Commission’s internal communication strategies

Achieved

Results of Pulse survey demonstrated improved satisfaction and engagement.

88 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Priority two: Promote the provision of quality care and services

Table 13: Priority two results

Focus area Aim Performance measure Result

2.1

Risk-based regulation

To develop and apply a regulatory strategy which supports the Commission’s risk-based approach

The Commission’s Regulatory Strategy published and operationalised and regulatory bulletins published on a regular basis

Achieved

2.2

Manage risk-based intelligence

To apply risk-based intelligence to the delivery of the Commission’s regulatory functions in a timely way

Improvements made to processes for internal information sharing

Achieved

Regulatory Integration Project ongoing including communication protocols for sharing of intelligence.

To ensure the appropriate referral of information and exchange of risk-based intelligence and data with other key regulatory bodies

The Commission has protocols in place to share risk-based intelligence and data with the Department of Health and relevant regulators

Achieved

Improvements to risk-based intelligence and data sharing ongoing.

Intended result

Increased confidence and trust in the quality and safety of aged care services and commitment from providers to continuous improvement

89 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Focus area Aim Performance measure Result

2.3

Regulatory performance

To implement quarterly reporting of regulatory performance data to provide greater visibility and transparency of sector-wide risks and promote continuous improvement across the sector

Publication of quarterly data reports and provider performance on the Commission’s website

Achieved

2.4

Engagement on aged care quality regulation

To provide leadership on key issues relating to aged care quality and safety through industry and consumer engagement and communication

The Commission’s engagement and communication activities promote better practice and improved aged care quality and safety

Achieved

To work with the Department of Health to develop and implement the next phase of aged care reforms

Milestones for key policy reforms and budget measures achieved

Partially achieved

Some milestones delayed. Collaborative work with Department of Health ongoing.

2.5

Regulatory performance framework

To be accountable for our own regulatory performance

Regulatory performance framework targets assessed and published

Partially achieved

Reporting delayed due to transition of functions into the Commission.

90 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Priority three: Enhance engagement of aged care consumers

Table 14: Priority three results

Focus area Aim Performance measure Result

3.1

Consumer engagement project

To understand the successful application of consumer-centred care and to provide initial guidance to the sector and to consumers on best practice consumer engagement and co-design

Promotion of best practice models

Achieved

3.2

Consumer information

To ensure consumers find it easy to contact the Commission and to have their concerns dealt with appropriately

Improvements made to information intake and handling to improve consumer experiences

Partially achieved

Analysis of current processes completed and options for a single contact centre being explored.

To work with peak consumer bodies to support consumers’ awareness of the Aged Care Quality Standards and the Charter of Aged Care Rights

Information developed and accessible to support consumer awareness of the Aged Care Quality Standards and the Charter of Aged Care Rights

Achieved

Intended result

Consumers are engaged in the planning and delivery of their aged care services

91 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Focus area Aim Performance measure Result

To ensure that consumers understand their rights and are aware of avenues for assistance in resolving concerns and complaints about aged care services

Promote awareness of the Commission’s functions in relation to resolving complaints about aged care providers

Achieved

3.3

Consumer experience reporting

To implement new consumer experience reporting (CER) questions and methodology in home services from 1 July 2019 to better inform consumers of our regulatory approach

Promote and conduct CER interviews in home services from 1 July 2019 and develop options for publication

Achieved

92 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Priority four: Deliver effective complaints resolution for aged care consumers

Table 15: Priority four results

Focus area Aim Performance measure Result

4.1

Management of complaints

To ensure that consumers are confident that a complaint to the Commission will lead to improvements in care

To ensure efficient, effective, impartial and fair resolution of complaints

>85% of people who complete the complaint feedback survey express satisfaction with the Commission’s approach, fairness, impartiality, and transparency of the process

>80% of complaints closed within 60 days and >90% within 90 days

A plan in place to mitigate risk to performance targets resulting from increase in volume of complaints

Not achieved

79% of 1,479 complainants and service providers who completed the feedback survey expressed satisfaction. This was below the target of greater than 85% but it was an improvement from the 2018-19 result of 77% of 1,392 complainants and service providers who completed the survey.

75% of the 8,087 complaints resolved were resolved within 60 days (compared with 83% of the 7,329 complaints resolved in 2018-19) and 85% were resolved within 90 days (compared with 91% in 2018-19).

Intended result

Consumers trust that making a complaint leads to better outcomes

93 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Focus area Aim Performance measure Result

Target not met due to increase in complaint numbers and complexity, and surge in complaints due to COVID-19.

Nationally consistent processes put in place to improve the complaints process for complainants and escalation to manage risk to consumers.

To ensure the resolution of complaint supports the implementation of the Aged Care Quality Standards and the continuous improvement of providers

Complaints processes revised to align with the Aged Care Quality Standards

Achieved

4.2

Joined up processes

To ensure that the complaints and regulatory functions are aligned to support the implementation of the Aged Care Quality Standards

Enhanced capability and complaints processes that interact with and support the Aged Care Quality Standards and Charter of Aged Care Rights

Achieved

94 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Priority five: Deliver effective risk-based regulation against the Aged Care Quality Standards

Table 16: Priority five results

Focus area Aim Performance measure Result

5.1

Aged Care Quality Standards

To monitor and evaluate the implementation of the Aged Care Quality Standards and ensure a proportionate approach to regulation

Data on trends in compliance, serious risk and regulatory responses monitored

Partially achieved

Evaluation of the implementation of the Quality Standards is ongoing as is continuous improvement of data and monitoring

5.2

Regulatory program

To deliver a program of regulatory work that ensures adequate and appropriate oversight of risk and that supports continuous improvement

A program of regulatory activity in place that meets statutory requirements and supports continuous improvement

Not achieved

Regulatory program adjusted to ensure adequate and risk-based oversight of aged care providers.

Activities impacted by COVID-19 and need to divert resources to monitoring activities and areas of high risk.

The Commission conducted 497 site audits on residential aged care services and 76 quality audits on home service providers.

Intended result

Improved consumer experience through more effective regulation against the Aged Care Quality Standards

95 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Focus area Aim Performance measure Result

These audits were supplemented with 8,502 assessment contacts (both on site and non-site) to support sector continuous improvement.

Statutory timeframes met in 34% of site audits and quality audits.

53% of commencing home or recommencing home applications completed within statutory timeframes.

To implement enhanced risk profiling and increased information sharing to inform our risk-based approach

Streamlined triage and collection of information to inform timely risk-based regulatory monitoring

Partially achieved

Integration of information and analysis across the Commission commenced and informed regulatory activities in the second half of the year.

Collaborative work with Department of Health underway for risk profiling model and IT systems for operationalising in 2020-21.

5.3

Regulatory policies and practices

To implement a new Regulatory Decisions Policy and Assessment Methodology to support sound, consistent decisions and quality assessments under the Aged Care Quality Standards

A framework developed to quality assure the soundness and consistency of assessment outcomes and decisions

Partially achieved

Decision-maker training implemented and further development of the framework ongoing.

96 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Focus area Aim Performance measure Result

>90% of appeals escalated to the Administrative Appeals Tribunal are found to uphold the Commission’s decision

Achieved

5.4

Improve regulation of home services

To implement end-to-end improvements to strengthen regulation of home services

A program of quality reviews and assessment contacts in place that provides appropriate oversight of risk and promotes continuous improvement in home services

Partially achieved

Work has commenced on home services Quality Standards assessment approach.

Increased use of CERs and intelligence to inform regulation of home services

Achieved

97 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Priority six: Deliver timely information and education to promote the Commission’s functions

Table 17: Priority six results

Focus area Aim Performance measure Result

6.1

Effective education programs

To enhance the relevance and effectiveness of education programs to support performance consistent with the Aged Care Quality Standards

Best practice models of consumer-centred care promoted through our education programs

>90% of people who complete our education program feedback survey are satisfied with the Commission’s education and engagement activities

Achieved

Achieved

To ensure our compliance assistance is targeted to areas of risk including in home services

A program of targeted compliance assistance in place including for home services

Achieved

6.2

Sector engagement and communication

To improve sector engagement and communication to support the Commission’s functions

A strategy developed and operationalised to support sector engagement and communication of the Commission’s functions and priorities

Achieved

Intended result

Consumers are empowered and providers informed through access to information and education about the Commission’s functions

98 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Corporate plan

Focus area Aim Performance measure Result

6.3

Enhanced information and communication

To seek feedback from key stakeholders and continue enhancement of information and communication for consumers, providers and the public

Enhanced information and communication for consumers, providers and the public including through our website and social media

Achieved

To improve provider access to information on best practice clinical care

Enhanced information and communication to providers on best practice clinical care including clinical governance

Achieved

99 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Financial performance

Financial activities

Operating results

The Commission returned a surplus of $1,341,245 before depreciation of assets other than lease right-of-use assets and a total net deficit of $733,816 against a budgeted deficit of $1,775,000. After allowing for the impact of AASB 16 on operating leases, the Commission’s net surplus is $1,406,867 against a budget net deficit of $0.

Operating revenue

The total operating income was $90,933,912 and consisted of the following:

• government appropriations of $83,431,035

• sales of goods and rendering of services of $7,091,487

• other revenue of $411,390.

Operating expenses

Total operating expenses were $91,667,788 and consisted of:

• employee benefits of $54,654,800

• supplier expenses of $33,293,074

• finance costs on right-of-use assets $40,926

• depreciation and amortisation of $2,075,061

• depreciation of right-of-use assets of $1,603,535

• losses from asset sales of $392.

Balance sheet

Net asset position

The net assets at 30 June 2020 were $17,477,365.

Total assets

Total assets at 30 June 2020 were $53,574,920, which is represented by:

• cash $11,006,008

• trade and other receivables (including undrawn appropriations) $35,869,763

• non-financial assets $6,699,149.

Total liabilities

Total liabilities at 30 June 2020 were $36,097,555, which is represented by:

• supplier payables $5,915,640

• unearned revenues $7,063,214

• other payables $954,717

• lease liabilities for right-of-use assets $3,389,504

• employee provisions $17,447,520

• other provisions $1,326,960.

Net assets

Total assets

Total liabilities

$53,574,920

$36,097,555

$17,477,365

100 agedcarequality.gov.au Annual Report 2019-20

Annual performance statements Financial performance

Table 18: Entity resource statement for the period ended 30 June 2020

Actual available appropriation 2019-20 $'000

(A)

Payments made 2019-20 $'000 (B)

Balance remaining 2019-20 $'000 (A)-(B)

Departmental

Prior year appropriation available 11,565 (11,565) -

Annual appropriations

Ordinary annual services

Departmental appropriation 85,607 (64,931) 20,676

S74 retained revenue receipts 12,358 (12,358) -

Departmental capital budget 1,692 (1,692) -

Other services

Equity injection 17,738 (3,738) 14,000

Total departmental annual appropriations 117,395 (82,719) 34,676

Total resourcing for the Commission 128,960 (94,284) 34,676

101 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

Management and accountability

102 agedcarequality.gov.au Annual Report 2019-20

Corporate governance

Management and accountability

Our governance framework provides the context within which we operate to achieve our objectives, ensuring transparent, ethical and accountable evidence-based decision-making, and to effectively manage risk and stakeholder relationships.

We are governed under the ACQSC Act. Under the Act, the Commissioner has the power to do all things necessary or convenient to be done for, or in connection with, the performance of the Commissioner’s functions. The functions of the Commissioner are described in the Act.

The Commissioner has the power to delegate all or any of the Commissioner’s functions and powers to a member of the staff of the Commission. The Commissioner has established the Executive Leadership Group to assist in ensuring effective operational governance.

103 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

The ELG provides strategic, whole-of-organisation leadership to the Commission. The ELG meets weekly and ensures effective decision-making, management and oversight of the Commission’s operations and performance.

The ELG is chaired by the Commissioner and comprises:

• Chief Clinical Advisor

• Executive Director, Performance, Education and Policy - Complaints Resolution Group

• Executive Director, Quality Assessment and Monitoring Operations

• Executive Director, Regulatory Policy and Performance

• Executive Director, Industry Engagement and Communications

• Executive Director, Provider Approvals and Compliance

• National Manager, Complaints Operations

• National Manager, Organisational Development

• Chief Operating Officer.

The biographies of the Commissioner and Executive Directors can be found at Our leadership team.

Executive Leadership Group (ELG)

104 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

In accordance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act) the Commission has a Risk and Audit Committee which operates independently of management.

The Committee’s function is to report to the Commissioner on matters relating to compliance with obligations under the PGPA Act, any regulations and Finance Minister’s Orders and provide a forum of communication between the Commissioner, senior managers, internal auditors and the Auditor-General. The Risk and Audit Committee provides independent advice to the Commissioner on the Commission’s financial and performance reporting, risk oversight and management and system of internal control.

Risk and Audit Committee

Membership of the Risk and Audit Committee comprises an external Chair and three external members with diverse backgrounds and specialist capabilities to deliver on its functions.

We engage an external professional services firm to conduct internal audits. They undertake reviews of systems and internal controls to ensure they are in place and are working efficiently and effectively in order to satisfy the compliance requirements of the PGPA Act and associated regulations. The internal auditor reports their findings and recommendations to the Risk and Audit Committee.

A copy of the Risk and Audit Committee charter is available at agedcarequality.gov. au/media/88590.

105 agedcarequality.gov.au Annual Report 2019-20

Member name Qualifications, knowledge, skills or experience

Number of meetings attended / total number

of meetings

Total annual remuneration (GST exclusive)

Geoffrey Applebee (Chair)

CA ANZ, FAICD. Retired Senior partner of EY and previous registered company auditor. Experienced Company Director and audit committee chair for companies and agencies in private and public sectors over many years.

6 / 6

$16,000

Carol Lilley (Deputy Chair) FCA ANZ. Retired partner of PwC and previous registered company auditor. Experienced

independent Company Director and audit committee member. Undertakes QA of financial statements for many government entities as part of audit committee work.

6 / 6 $14,000

Chris Champ FCPA Australia, 30 years senior financial and regulatory roles with APRA. Prior experience with the Commission’s predecessor organisations on audit committees and as CFO for five years.

6 / 6 $14,000

Peter Rayner FCPA Australia, FAICD. Experienced Company Director & Trustee - audit, risk and investment committees. Extensive private equity, company valuation, COO and CFO experience. 20+ years domestic and international senior funds management roles (inc. as CEO Allianz Global Investors). Former manager at EY and Nelson Parkhill.

6 / 6 $14,000

Table 19: Membership of the Risk and Audit Committee

Management and accountability

106 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

Our fraud control plan is designed to prevent, detect, deter and deal with fraud in accordance with the requirements of section 10 of the PGPA Rule.

Fraud control

It includes a:

• statement of the Commission’s policy on, and approach to, fraud risks

• description of our fraud control responsibilities and strategies

• direction for fraud control, fraud response and fraud awareness

• description of fraud reporting obligations within the Commission.

Our fraud control policy encompasses staff training in minimising the risk of fraud and corruption from both internal and external threats. Fraud awareness and security training is provided to staff as they join the Commission and on an ongoing basis, as required.

107 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

Organisational chart

Dr Melanie Wroth Chief Clinical Advisor

Ann Wunsch Executive Director, Quality Assessment and Monitoring Operations

Nicola Dunbar National Manager, Organisational Development

Emma Jobson Chief Operating Officer (interim), Corporate Services

Anthony Speed Executive Director, Provider Approvals and Compliance

Shona Reid Executive Director, Performance, Education and Policy - Complaints Resolution Group

Pam Christie Executive Director, Industry, Engagement and Communications

Christina Bolger Executive Director, Regulatory Policy and Performance

Sally Ross Acting National Manager Complaints Operations

Janet Anderson PSM Aged Care Quality and Safety Commissioner

Members of leadership team who served for part of the reporting period include: Charles Grady, General Manager, Corporate Services (position now titled Chief Operating Officer) July to December 2019; Viv Daniels, National Manager, Complaints Operations, July 2019 to February 2020.

108 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

The Commission operates independently and objectively in performing its functions and exercising its powers as set out in the Aged Care Quality and Safety Commission Act 2018 (ACQSC Act) and the Aged Care Quality and Safety Commission Rules 2018 (the Rules).

Enabling legislation

We are an Australian Public Service (APS) agency that engages staff under the Public Service Act 1999 and is subject to the PGPA Act.

109 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Janet Anderson PSM

Janet Anderson has held executive positions at Commonwealth, state and regional levels in the public service for the last 20 years, working in the areas of health and aged care policy, strategy and planning.

After tenures in the NSW Department of Health, the Australian Government Department of Veterans’ Affairs and the Australian Government Department of Health, Janet took up the position of Deputy CEO, and then acting CEO, of the Northern Territory Department of Health. While in the Northern Territory, she was also in charge of leading the government’s response to the Royal Commission into Child Protection and Youth Justice.

Role

The Commissioner is the statutory head of the Commission and is governed by the ACQSC Act and Rules.

The Commissioner reports directly to the Minister for Aged Care and Senior Australians, and has the power to delegate to a member of staff any of the Commissioner’s functions or powers under the Act or the Rules. The Commissioner is responsible for the performance of the functions set out in sections 16-20 of the Act, which include:

• protect and enhance the safety, health, well-being and quality of life of aged care consumers

• promote the provision of quality care and services

• consumer engagement, education and complaints resolution

• regulatory requirements of accreditation, quality assessment, monitoring, compliance and enforcement.

Aged Care Quality and Safety Commissioner

Our leadership team 11

11 Members of leadership team who served for part of the reporting period include: Charles Grady, General Manager, Corporate Services (position now titled Chief Operating Officer) July to December 2019; Viv Daniels, National Manager, Complaints Operations, July 2019 to February 2020.

110 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Christina Bolger

Christina Bolger has held leadership roles in the APS across policy, regulation and service delivery, with experience in a range of program areas including health, rehabilitation, quality and safety.

Previous roles include Director Scheme Design at Comcare (the Commonwealth statutory authority for Work Health and Safety and Workers’ Compensation), Manager of the Workplace Injury Prevention Program, ACT Government (Chief Minister’s Department), and Senior Professional Officer, Staff Health and Injury Prevention at Calvary Health Care (ACT).

Christina has a strong history of collaboration with others to understand problems and deliver innovative solutions that can improve outcomes for the community.

Christina holds a Bachelor of Applied Science (Physiotherapy) (CCHS), a Bachelor of Arts (ANU), a Graduate Certificate in Ergonomics (La Trobe), an Executive Masters in Public Administration (ANZSOG, ANU) and is a graduate of the Australian Institute of Company Directors (GAICD).

Role

The Regulatory Policy and Performance Branch is responsible for the Commission’s programs to support a risk-based approach and effective performance of its regulatory functions through:

• policy framework for regulatory operations and statutory decisions

• quality assurance and registration of quality assessors

• sector performance reporting and information for consumers on the quality of care and services

• supporting improvement in regulatory design and leading the Commission’s involvement in regulatory reforms.

Executive Director, Regulatory Policy and Performance

111 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Pam Christie

Pam Christie has extensive experience working across a range of government, statutory and senior executive roles in the areas of regulation and vocational education and training.

Prior to her role with the Commission, Pam worked as Executive Director, Regulatory Operations at the Australian Skills Quality Authority with responsibility for leading student-centred reforms to the national regulatory model.

Throughout her career, Pam has maintained a passion for changing lives and improving outcomes for individuals by accessing the best quality services to meet their needs.

She is a member of the Australian Institute of Company Directors, an Honorary Senior Fellow, L H Martin Institute, University of Melbourne, and a graduate of the ANZSOG Executive Fellows Program. Ms Christie holds a Bachelor of Arts (Macquarie University), Diploma of Education (University of Sydney) and Graduate Diploma of Special Education (University of Wollongong).

Role

The Industry Engagement and Communications Branch is responsible for the Commission’s communication and engagement with key internal and external stakeholders, including peak bodies and other representative groups to ensure the best possible outcomes for people accessing aged care.

Functions include delivery of education and engagement activities, management of communications and media engagement, support for staff engagement and change management, provision of secretariat support for the Aged Care Quality and Safety Advisory Council and the Commission Consultative Forum, and a range of corporate affairs and planning functions.

Executive Director, Industry Engagement and Communications

112 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Emma Jobson

Emma Jobson has over 20 years experience working across health and social services in policy design, program implementation and service delivery.

Prior to joining the Commission Emma undertook senior executive roles in the Australian Government Department of Health, including as State Manager of the NSW/ACT Of fice where she led the implementation of aged care regulation, and health care programs. She later held national roles leading the design and implementation of regulation in aged care compliance. Emma has also held corporate leadership roles and brings expertise in organisational redesign, capacity building and change management.

Emma has a Bachelor of Social Work (Hons) from the University of NSW.

Role

The Corporate Services Branch is responsible for ensuring the Commission has effective capability to undertake its mandated legislative responsibilities and that it also acts as an accountable APS agency.

Chief Operating Officer (interim)

113 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Shona Reid

Shona Reid has had a public sector career spanning 20 years, including a period of time consulting in the private sector. Shona has bachelor qualifications in education and has worked at the senior executive level in a number of small and large Commonwealth government departments.

In 2015, Shona led the transition of the Aged Care Complaints Scheme from the Department of Health to an independent Aged Care Complaints Commissioner, and for three years held the position of Assistant Aged Care Complaints Commissioner.

Role

The Performance, Education and Policy Branch of the Complaints Resolution Group is responsible for the business support of the Complaints Operations Branch, reviewing complaints decisions, providing clinical advice and managing FOI requests for the Commission. The branch engages with consumer groups and service providers to ensure people know where and how they can make a complaint about aged care services.

Executive Director, Performance, Education and Policy - Complaints Resolution Group

114 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Anthony Speed

Anthony has over 25 years’ experience in health and social services policy design, program delivery and regulatory roles.

Prior to joining the Commission, Anthony worked in senior executive roles in the Australian Government Department of Health, where he most recently led the Aged Care Compliance functions before transitioning to the Commission on 1 January 2020. He previously worked across the Health portfolio in a National Health Reform executive role, and as state manager with a primary focus on stakeholder engagement and policy delivery in several states. Prior to the APS, Anthony worked in health promotion roles in the community sector and has served as a board member for several not-for-profit organisations.

Anthony holds a Bachelor of Arts (Hons) and a Master of Public Administration (ANZSOG, Monash).

Role

The Provider Approvals and Compliance Group (PACG) undertakes compliance and enforcement activities. The PACG monitors provider compliance through a range of mechanisms, including information received from performance assessments against the Quality Standards, compulsory reporting and complaints. This information is assessed to determine the Commission’s response based on the identified risks to care recipients.

The PACG also reviews the financial operations of both residential and home care providers to ensure they are appropriately managing all fees and payments including refundable deposit balances, accommodation bond balances, home care budgets and unspent home care funds. The PACG has powers to undertake detailed investigations of providers where necessary including requesting documentation and undertaking site visits. The PACG also assesses and determines the suitability of incorporated organisations that apply to become an approved provider of home, flexible or residential aged care.

Acting Executive Director, Provider Approvals and Compliance

115 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Dr Melanie Wroth

Dr Melanie Wroth graduated from the University of Sydney in 1981 and became a Fellow of the Royal Australasian College of Physicians in 1992. She began her longstanding involvement in medical care for older Australians in 1990.

Dr Wroth is a Senior Staff Specialist in Geriatric Medicine at Royal Prince Alfred Hospital. She has been extensively engaged in clinical teaching, especially in Geriatric Medicine, and is a Clinical Senior Lecturer in the Faculty of Medicine and Health, University of Sydney. She has been a consultant to the NSW Medical Council and is a senior member of the Guardianship Division of the NSW Civil and Administrative Tribunal.

Role

The Chief Clinical Advisor is responsible for providing high level expert clinical advice to Commission staff and assisting aged care providers to source and access guidance on best practice clinical care for people receiving aged care services. The role also works on a sector-wide basis to help raise awareness of clinical issues in aged care that includes leading and supporting engagement with key stakeholders, with a particular focus on communicating with aged care providers, consumers, health professionals, and peak bodies representing both providers and consumers. Dr Wroth’s role at the Commission is 0.8 full-time equivalent (FTE).

Chief Clinical Advisor

116 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Ann Wunsch

Ann Wunsch transitioned into her current role from her position as Executive Director of the Operations Branch in the Quality Agency. Prior to that, she held various roles in the Quality Agency’s predecessor, the Accreditation Agency.

Before joining the Accreditation Agency in 2005, Ann worked in the NSW disability sector in a range of roles from service management through to serving on boards of management. Ann has also worked in the NSW regulatory environment at the Community Services Commission and in a policy role at NSW Health.

Ann served as a part-time member of the NSW Administrative Decisions Tribunal for 10 years in the Guardianship and Protected Estates Division where she heard appeals on guardianship matters.

Ann has been a surveyor for the International Society for Quality in Health Care (ISQua) since 2010 and currently represents the Commission on the ISQua Accreditation Council.

Role

The Quality Assessment and Monitoring Operations Group is responsible for the accreditation program for residential aged care services and the quality review program for home care services across Australia. It also manages the program of assessment contacts with all aged care services. Operations provides the overall leadership and management of approximately 244 staff including regional directors.

Executive Director, Quality Assessment and Monitoring Operations

117 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Nicola Dunbar

Nicola Dunbar has a background in health research, program management and policy development and has worked for government, universities and non-government organisations at local, state and national levels. She has a PhD in neuropsychology and HIV infection, and a Master in Policy.

Prior to joining the Commission in February 2019, she spent 12 years at the Australian Commission on Safety and Quality in Health Care as its Director of Strategy.

Role

The National Manager Organisational Development works across the Commission to optimise organisational performance. The National Manager works closely with the Executive and National Leadership Groups and teams across the Commission to make improvements in areas such as well-being, workplace culture, communication and quality.

National Manager, Organisational Development

118 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Our leadership team

Sally Ross

Sally Ross has extensive experience in public administration in health and community services including in complaints resolution, program management and delivery and human resources management. Prior to taking on the acting role of National Manager Complaints Operations Sally was Director Complaints Operations for NSW/ACT for five years. Sally holds a Bachelor of Arts (Hons) and a Graduate Diploma in Communications.

Role

The Complaints Operations team is responsible for receiving and resolving complaints about Australian Government funded aged care services. Complaints Operations has staff in every capital city except Darwin. Complaints Officers work with consumers, their representatives and service providers to resolve complaints using a range of approaches including less formal early resolution approaches through to more formal approaches such as conciliation and investigation.

Acting National Manager, Complaints Operations

119 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

The Aged Care Quality and Safety Advisory Council (Advisory Council) is established under Section 37 of the ACQSC Act. Council members have a wealth of knowledge and experience in aged care, with diverse backgrounds in areas including clinical care, service delivery and consumer representation.

The legislated functions of the Advisory Council are:

• On its own initiative or at the request of the Commissioner, to provide advice to the Commissioner in relation to the Commissioner’s functions.

• At the request of the Minister, to provide advice to the Minister about matters arising in relation to the performance of the Commissioner’s functions.

The Advisory Council met six times in 2019-20.

The Advisory Council members are:

• Ms Andrea Coote (Chair)

• Ms Carolanne Barkla

• Dr Matthew Cullen

• Ms Sally Evans

• Dr Dorothy Jones

• Dr Stephen Judd 12

• Professor Susan Kurrle

• Ms Maree McCabe

• Mr Paul Sadler

• Mr Ian Yates AM

• Ms Janet Anderson PSM, Commissioner (ex-officio)

• Dr Melanie Wroth, Chief Clinical Advisor (ex-officio)

• Ms Amy Laffan, Department of Health (ex-officio).

In December 2019 the Advisory Council provided advice, at the request of the Minister for Aged Care and Senior Australians, Senator the Hon Richard Colbeck, on additional powers that the Commission should have to achieve its objectives, further to those transferred to the Commission from the Department of Health on 1 January 2020.

Aged Care Quality and Safety Advisory Council

12 Dr Judd was a member of the Advisory Council until 18 May 2020.

120 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Aged Care Quality and Safety Advisory Council

The advice provided was in the form of an options paper framed around eight areas identified for change. The advice included work already underway, as well as options which would require consideration of legislative change and resourcing.

As requested by the Minister, the development of the options paper considered the Interim Report of the Royal Commission into Aged Care Quality and Safety and recommendations of the Carnell Inquiry into events at Earle Haven in identifying and developing priorities for change.

In January 2020, the Minister notified the Advisory Council that he had shared the options paper with the Royal Commission to assist with its consideration of quality and safety regulation. In April 2020, senior staff from the Royal Commission met with the Advisory Council to discuss the contents of the options paper.

The Advisory Council continues to consider the options outlined for reform and provide advice to the Commissioner and the Minister.

Other strategic issues on which the Advisory Council provided advice in 2019-20 included:

• performance ratings of providers

• other issues arising from the hearings of the Royal Commission into Aged Care Quality and Safety

• meeting the needs of people from diverse communities

• managing provider prudential risk in the sector

• responding to the COVID-19 pandemic

• the preparation of the Commission’s 2020-21 Corporate Plan.

121 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

Our staff are our greatest asset and we continually develop and build their capabilities.

The following sections provide key workforce statistics and other key indicators of effectiveness in managing and developing employees to achieve our objectives, including:

• workplace arrangements

• our approach to learning and development

• staff engagement

• work health and safety

• diversity.

Workforce planning, staff retention and turnover At 30 June 2020, our headcount was 516.

Of the Commission’s 516 headcount:

• 84 per cent are full-time employees

• 97 per cent are ongoing employees

• 74 per cent of staff are female

• leadership roles range from EL 1 to SES level and are held by 149 staff, of which 69 per cent are female and 31 per cent male

• 25 per cent are APS-employed quality assessors

• 24 per cent are complaints officers.

There was a total of 72 separations during the reporting period, of which:

• five were non -ongoing employees

• 12 were executive level employees

• 34 were quality assessors (includes 11 casuals)

• six were complaints officers.

Management of human resources

122 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 20: All ongoing employees current report period (2019-20)

Male Female Indeterminate Total

Fulltime Part time Total male Fulltime Part time Total female Fulltime Part time

Total

indeterminate

NSW

47

3

50

95

21

116 - -

- 166

QLD 12 1 13 43 15 58 - - - 71

SA 9 - 9 35 7 42 - - - 51

TAS 4 - 4 12 - 12 - - - 16

VIC 24 1 25 53 13 66 - - - 91

WA 7 - 7 20 6 26 - - - 33

ACT 19 3 22 42 7 49 - - - 71

NT - - - - - - - - - -

External territories - - - - - - - - - -

OS - - - - - - - - - -

Total 122 8 130 300 69 369 - - - 499

Workforce statistics

123 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 21: All non-ongoing employees current report period (2019-20)

Male Female Indeterminate Total

Fulltime Part time Total male Fulltime Part time Total female Fulltime Part time

Total

indeterminate

NSW 2 2 3 1 4

-

-

- 6

QLD - - - 2 1 3 - - - 3

SA - - - - - - - - - -

TAS 1 - 1 - - - - - - 1

VIC - - - - 1 1 - - - 1

WA - - - 1 - 1 - - - 1

ACT - - - 4 1 5 - - - 5

NT - - - - - - - - - -

External territories - - - - - - - - - -

OS - - - - - - - - - -

Total 3 - 3 10 4 14 - - - 17

124 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 22: All ongoing employees previous report period (2018-19)

Male Female Indeterminate Total

Fulltime Part time Total male Fulltime Part time Total female Fulltime Part time

Total

indeterminate

NSW 37 3 40 96 15 111

-

-

- 151

QLD 12 2 14 43 17 60 - - - 74

SA 6 - 6 34 5 39 - - - 45

TAS 3 - 3 4 - 4 - - - 7

VIC 26 2 28 51 13 64 - - - 92

WA 5 - 5 18 5 23 - - - 28

ACT 11 1 12 21 6 27 - - - 39

NT - - - - - - - - - -

External territories - - - - - - - - - -

OS - - - - - - - - - -

Total 100 8 108 267 61 328 - - - 436

125 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 23: All non-ongoing employees previous report period (2018-19)

Male Female Indeterminate Total

Fulltime Part time Total male Fulltime Part time Total female Fulltime Part time

Total

indeterminate

NSW 3 1 4 1 10 11 - - - 15

QLD - 1 1 3 1 4 - - - 5

SA 1 - 1 2 - 2 - - - 3

TAS 1 - 1 - - - - - - 1

VIC - 1 1 3 2 5 - - - 6

WA - - - - - - - - - -

ACT 1 - 1 5 - 5 - - - 6

NT - - - - - - - - - -

External territories - - - - - - - - - -

OS - - - - - - - - - -

Total 6 3 9 14 13 27 - - - 36

126 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 24: Australian Public Service Act ongoing employees current report period (2019-20)

Male Female Indeterminate Total

Fulltime Part time Total male Fulltime Part time Total female Fulltime Part time

Total

indeterminate

SES 3 - - - - - - - - - -

SES 2 - - - - - - - - - -

SES 1 1 - 1 6 - 6 - - - 7

EL 2 9 - 9 26 1 27 - - - 36

EL 1 33 2 35 56 11 67 - - - 102

APS 6 69 4 73 168 45 213 - - - 286

APS 5 5 - 5 18 3 21 - - - 26

APS 4 3 1 4 14 3 17 - - - 21

APS 3 2 1 3 12 6 18 - - - 21

APS 2 - - - - - - - - - -

APS 1 - - - - - - - - - -

Other - - - - - - - - - -

Total 122 8 130 300 69 369 - - - 499

Australian Public Sector (APS) classification and gender

127 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 25: Australian Public Service Act non-ongoing employees current report period (2019-20)

Male Female Indeterminate Total

Fulltime Part time Total male Fulltime Part time Total female Fulltime Part time

Total

indeterminate

SES 3 - - - 1 - 1 - - - 1

SES 2 - - - - - - - - - -

SES 1 - - - - 1 1 - - - 1

EL 2 1 - 1 1 - 1 - - - 2

EL 1 - - - - - - - - - -

APS 6 1 - 1 5 3 8 - - - 9

APS 5 - - - 2 - 2 - - - 2

APS 4 - - - 1 - 1 - - - 1

APS 3 1 - 1 - - - - - - 1

APS 2 - - - - - - - - - -

APS 1 - - - - - - - - - -

Other - - - - - - - - - -

Total 3 - 3 10 4 14 - - - 17

128 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 26: Australian Public Service Act ongoing employees previous report period (2018-19)

Male Female Indeterminate Total

Fulltime Part time Total male Fulltime Part time Total female Fulltime Part time

Total

indeterminate

SES 3 - - - - - - - - - -

SES 2 - - - - - - - - - -

SES 1 - - - 4 - 4 - - - 4

EL 2 6 1 7 19 2 21 - - - 28

EL 1 25 - 25 49 6 55 - - - 80

APS 6 52 5 57 152 45 197 - - - 254

APS 5 9 1 10 14 3 17 - - - 27

APS 4 4 - 4 12 2 14 - - - 18

APS 3 4 1 5 17 3 20 - - - 25

APS 2 - - - - - - - - - -

APS 1 - - - - - - - - - -

Other - - - - - - - - - -

Total 100 8 108 267 61 328 - - - 436

129 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 27: Australian Public Service Act non-ongoing employees previous report period (2018-19)

Male Female Indeterminate Total

Fulltime Part time Total male Fulltime Part time Total female Fulltime Part time

Total

indeterminate

SES 3 - - - 1 - 1 - - - 1

SES 2 - - - - - - - - - -

SES 1 - - - - 1 1 - - - 1

EL 2 1 - 1 1 - 1 - - - 2

EL 1 - - - 1 - 1 - - - 1

APS 6 2 3 5 2 12 14 - - - 19

APS 5 2 - 2 7 - 7 - - - 9

APS 4 - - - 2 - 2 - - - 2

APS 3 1 - 1 - - - - - - 1

APS 2 - - - - - - - - - -

APS 1 - - - - - - - - - -

Other - - - - - - - - - -

Total 6 3 9 14 13 27 - - - 36

130 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 28: Australian Public Service Act employees by full-time and part-time status current report period (2019-20)

Employment type by full-time and part-time status

Ongoing Non-Ongoing Total

Fulltime Part Time Total ongoing Fulltime Part Time Total non-ongoing

SES 3 - - - - -

1

1

SES 2 - - - - - - -

SES 1 7 - 7 - 1 1 8

EL 2 35 1 36 2 - 2 38

EL 1 89 13 102 - - - 102

APS 6 237 49 286 6 3 9 295

APS 5 23 3 26 2 - 2 28

APS 4 17 4 21 1 - 1 22

APS 3 14 7 21 1 - 1 22

APS 2 - - - - - - -

APS 1 - - - - - - -

Other - - - - - - -

Total 422 77 499 13 4 17 516

131 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 29: Australian Public Service Act employees by full-time and part-time status Previous report period (2018-19)

Ongoing Non-Ongoing Total

Fulltime Part Time Total ongoing Fulltime Part Time Total non-ongoing

SES 3 - - - 1 -

1

1

SES 2 - - - - - - -

SES 1 4 - 4 - 1 1 5

EL 2 25 3 28 2 - 2 30

EL 1 74 6 80 1 - 1 81

APS 6 204 50 254 4 15 19 273

APS 5 23 4 27 9 - 9 36

APS 4 16 2 18 2 - 2 20

APS 3 21 4 25 1 - 1 26

APS 2 - - - - - - -

APS 1 - - - - - - -

Other - - - - - - -

Total 367 69 436 20 16 36 472

132 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 30: Australian Public Service Act employment type by location current report period (2019-20)

Employment by location

Ongoing Non-Ongoing Total

NSW

166

6

172

QLD 71 3 74

SA 51 - 51

TAS 16 1 17

VIC 91 1 92

WA 33 1 34

ACT 71 5 76

NT - - -

External Territories - - -

Overseas - - -

Total 499 17 516

133 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 31: Australian Public Service Act employment type by location previous report period (2018-19)

Ongoing Non-Ongoing Total

NSW

151

15

166

QLD 74 5 79

SA 45 3 48

TAS 7 1 8

VIC 92 6 98

WA 28 - 28

ACT 39 6 45

NT - - -

External Territories - - -

Overseas - - -

Total 436 36 472

134 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 32: Australian Public Service Act indigenous employment current report period (2019-20)

Indigenous employment

Table 33: Australian Public Service Act indigenous employment previous report period (2018-19)

Total

Ongoing

3

Non-ongoing 1

Total 4

Total

Ongoing

3

Non-ongoing 1

Total 4

135 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 34: Australian Public Service Act employment arrangements current report period (2019-20)

Employment arrangements of SES and non-SES employees

SES Non-SES Total

Individual flexibility agreement

-

4

4

Total - 4 4

136 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Salary ranges by classification level

Table 35: Australian Public Service Act employment salary ranges by classification level (minimum/maximum) current report period (2019-20)

Minimum salary $ Maximum salary $

SES 3 -

-

SES 2 - -

SES 1 - -

EL 2 122,306 144,804

EL 1 102,512 116,916

APS 6 83,420 94,110

APS 5 74,518 80,588

APS 4 69,523 73,459

APS 3 61,364 68,017

APS 2 53,100 57,946

APS 1 45,434 51,026

Other - -

Minimum/maximum range - -

137 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Key management personnel

The Commission provides the following information about remuneration for senior executives.

Policies and practices

Under Section 24 of the ACQSC Act, the Minister for Senior Australians and Aged Care appointed the Commissioner of the Commission. The terms and conditions of this appointment are determined in accordance with the Remuneration Tribunal Amendment Determination (No. 4) 2018.

Senior executives (SES employees) are employed under section 22 of the PS Act. Remuneration of SES employees is determined by the Commissioner in accordance with the Commission’s SES employees’ remuneration, conditions and performance policy and the APS Executive Remuneration Policy. Their terms and conditions of employment are provided through a section 24(1) determination under the PS Act.

The section 24(1) determination includes:

• annual salary

• superannuation arrangements

• provision for parking of the employee’s vehicle

• leave, of ficial travel and other entitlements in accordance with the Commission’s applicable policies and guidelines

• flexible working arrangements (where applicable).

Other highly paid staff are remunerated under the terms and conditions of the Commission’s Enterprise Agreement 2019-2022, which may be varied by an Individual Flexibility Arrangement (IFA) as per the provisions of Schedule 2.2 of the Fair Work Regulations 2009, if approved by the Commissioner. An IFA needs to meet the genuine needs of the Commission and the employee, is mutually agreed between the two, and is based on capability, experience and qualifications of the employee.

138 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Executive remuneration

Table 36: Executive remuneration for key management personnel current reporting period (2019-20)

Key management personnel Short-term benefits

Post-employment benefits Other long-term benefits

Termination benefits Total remuneration

Name and position title Base salary

Other benefits and allowances Superannuation Long service leave

$’000 $’000 $’000 $’000 $’000 $’000

Janet Anderson Aged Care Quality and Safety Commissioner 419 - 65 9 - 492

Christina Bolger Executive Director, Regulatory Policy and Performance 217 - 42 7 - 266

Pam Christie Executive Director, Industry Engagement and Communications 246 - 38 6 - 291

Emma Jobson Chief Operating Officer (interim) 187 25 33 5 - 249

Shona Reid Executive Director, Performance, Education and Policy - Complaints Resolution Group 192 26 35 5 - 258

Anthony Speed * Executive Director, Provider Approvals and Compliance 84 12 18 2 - 116

Dr Melanie Wroth Chief Clinical Advisor 225 27 36 5 - 293

Ann Wunsch Executive Director, Quality Assessment and Monitoring Operations 229 - 34 6 - 269

Totals 1,799 90 301 45 - 2,234

Note: Key management personnel are the senior executive within the Commission, so only one data template is included.

* For the period 1 January 2020 - 30 June 2020, as the position transferred to the Commission on 1 January 2020.

139 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 37: Executive remuneration for other highly paid staff current reporting period (2019-20)

Other highly paid staff Short-term benefits

Post-employment benefits Other long-term benefits

Termination benefits Total remuneration

Remuneration Band

Number of other highly paid staff Base salary

Other benefits and allowances Superannuation Long service leave

$’000 $’000 $’000 $’000 $’000 $’000

$0-$220,000

0

0

0

0

0

0

0

140 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Executive remuneration

Table 38: Information about remuneration for senior executives current reporting period (2019-20)

Remuneration bands Short-term benefits

Post-

employment benefits Other long-term benefits Termination benefits

Total

remuneration

Number of senior executives Average base

salary

Average bonuses

Average other benefits and allowances

Average super-annuation contributions Average long

service leave

Average other long-term benefits

Average termination benefits Average total

remuneration

$0 - $220,000 1 84 - 12 18 2 - - 116

$220,001 - $245,000 - - - - - - - - -

$245,001 - $270,000 4 206 - 26 36 6 - - 261

$270,001 - $295,000 2 236 - 27 37 6 - - 292

$295,001 - $320,000 - - - - - - - - -

$320,001 - $345,000 - - - - - - - - -

$345,001 - $370,000 - - - - - - - - -

$370,001 - $395,000 - - - - - - - - -

$395,001 - $420,000 - - - - - - - - -

$420,001 - $445,000 - - - - - - - - -

$445,001 - $470,000 - - - - - - - - -

$470,001 - $495,000 1 419 - - 65 9 - - 492

141 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Governance arrangements

The Commissioner has the authority to determine the remuneration for key management personnel, senior executives and other highly paid employees under section 24(1) of the PS Act.

Basis of determining remuneration

The Commissioner determines executive remuneration individually for each executive level employee under the Commission’s section 24(1) determination, considering the APS Executive Remuneration Management Policy and other guidance provided by the Australian Public Service Commission.

The SES employees’ remuneration, conditions and performance policy does not allow for any bonus component related to performance. Progression to a higher salary is based on an annual performance assessment conducted in July under the Performance Development Scheme (PDS) in place for all SES employees. Salary progression is not automatic.

The preceding tables provide disaggregated information related to Commission executive remuneration for the reporting period (2019-20).

Workplace arrangements

Recruitment

Applicants are assessed on their demonstrated ability, skills, knowledge, experience and qualifications to perform the role. These requirements are in line with the APS Work Level Standards.

We have undertaken three quality assessor recruitment rounds in 2019-20. As a result we have engaged 27 quality assessors nationally as ongoing employees. We also engaged nine complaints officers and five compliance officers.

We have advertised and filled eight other nationwide vacancies through APS Jobs.

142 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Table 39: Recruitment per state (2019-20)

* This function transferred to the Commission on 1 January 2020.

Snr/Quality assessor (1 July 2019 - 30 June 2020) Complaints officer (1 July 2019 - 30 June 2020)

Compliance officer * (1 Jan 2020 - 30 June 2020)

NSW

6

2

-

QLD 6 1 -

SA 3 1 -

TAS - 1 1

VIC 10 2 -

WA 1 1 1

ACT 1 1 3

NT - - -

Total 27 9 5

143 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Salary ranges and advancement

The Commission’s Enterprise Agreement 2019-2022 details our classification structure and salaries.

The opportunity for salary advancement for employees occurred in the first full pay period in August 2019.

The Commission does not pay performance pay.

Our approach to learning and development We identify individual job capabilities, functions and roles to effectively manage the Commission’s business. Our aim is to have a dynamic and educated workforce that meets our capability requirements now and into the future.

We have continued to provide a wide range of learning and development opportunities to all staff. We use Learnhub as a core learning platform for the induction of new starters. All staff are required to complete mandatory learning modules and we continually add and update modules to ensure we are compliant with regulation.

To support diversity in the Commission, the ‘Core Cultural Learning: Aboriginal and Torres Strait Islander Australia’ module has been added for all staff to access.

Skillsoft has also been added to our Learnhub platform, which allows all Commission employees to access a suite of 40,000 multi-modal courses, videos, books and micro-learning modules in six key business skills solution areas; created and procured by Skillsoft to support staff.

To support building and sustaining strong leadership throughout the Commission, we have implemented the Leadership and Management Development Program. The program balances the relationship between leadership, management and technical skills required for our APS 6 emerging leaders and EL 1 current leaders. So far, 30 participants have undertaken the first module: ‘Building and Leading High Performing Teams’.

Employee pursuit of professional qualifications continues to be supported.

In 2019-20, six staff accessed study assistance and/or study leave, and 24 days of study leave was approved. There were 19 requests approved by HR Services for individuals to participate in external learning events including workshops, courses and conferences.

Staff engagement Engagement with staff continued to be an important focus for the Commission with new ways of informing, consulting and engaging teams throughout the year.

In 2019, extensive face-to-face engagement occurred at team meetings, and visits by the Commissioner and Executive Leadership Group to each of the Commission’s 11 offices. These engagement processes then successfully moved online due to the COVID-19 pandemic. In May 2020, more than half of our staff participated in discussions about the strategic direction of the Commission and these insights contributed to the development of our 2020-21 Corporate Plan.

144 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

During the COVID-19 pandemic, our workforce largely moved to working remotely. While offices remained open for those staff who could not work remotely, we conducted regular pulse surveys with staff to understand levels of engagement, emerging issues and to identify new ways to keep staff feeling connected to the workplace.

Monthly webinars

A new monthly all-staff webinar initiative commenced in April 2020. During the webinars, staff hear from the Commissioner and other members of the National Leadership Group about important issues, strategic updates and innovative initiatives from across the Commission.

Feedback from staff has been positive with many valuing the opportunity to hear directly from the Commissioner in this online format.

National Leadership Group

The National Leadership Group consists of the ELG as well as EL 2 of ficers. The group met monthly, via video conference, to discuss strategic issues impacting the Commission, and to share information, insights and innovation.

Staff Participation Forum

The Commission established a Staff Participation Forum as its peak employee consultation mechanism. The forum provides a means for consulting with employees about the enterprise agreement, proposed changes to workplace policies, and issues and events of significance to the whole of the Commission.

The forum comprised staff, management and union representatives, and met quarterly via an electronic platform.

Work Health and Safety (WHS) The workers’ compensation scheme contained in the Safety, Rehabilitation and Compensation Act 1988 (SRC Act) governs employees of Commonwealth and ACT statutory authorities. The SRC Act provides rehabilitation and workers’ compensation to employees covered by the scheme for a work-related injury or illness. The Commission is covered by Comcare for the management of its workers’ compensation liability.

We are committed to providing and maintaining a safe and healthy workplace and meeting our responsibilities under the SRC Act. We have an early intervention program in place that provides support and injury management assistance for injured or ill employees as soon as possible after an injury or illness occurs. The injury or illness could have been sustained at work, or be a non-work-related condition, which is impacting the employee’s ability to remain at or be engaged in work.

145 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

There were 77 early intervention cases lodged during 2019-20 and six workers’ compensation claims submitted, two of which were accepted. A total of 439 days were lost due to compensable injuries. The early intervention strategy has allowed us to manage cases without them requiring lodgement as workers’ compensation claims, which has provided us with a considerable saving in our workers’ compensation premium.

Each case was managed in a timely manner and, more importantly, facilitated an early return to work for our employees.

There has been an increase in uptake of early intervention assistance, particularly since the commencement of the Commission, assisting employees to work safely with rehabilitation assessments and ergonomic equipment being supplied as part of the early intervention strategy.

We offered a flu vaccination program this year for all employees, including contractors, across each state, as well as reimbursement of flu vaccinations from employees’ local treating doctor or pharmacy outlet. This program continues to work well and there has been an increased uptake compared with last year, with this year’s participation rate being 80 per cent.

Diversity We value the diversity of our staff. Our Respectful Workplace Framework was established to embrace and value differences in our workplace, such as age, gender and race. The framework is a part of our commitment to fostering a diverse and inclusive workplace and to reduce the risk of discrimination.

We welcome and actively encourage applications from people with disability, people from multicultural communities, and people from Aboriginal and Torres Strait Islander backgrounds. We recognise the richness of diversity and the unique knowledge all employees can bring to our workplace, policy development and service delivery.

All our employees are required to complete a mandatory online course about Diversity and Discrimination, which is part of the induction for new starters.

A diversity strategy working party is collaborating with employees across the Commission to develop a robust and inclusive approach.

Events have been organised to celebrate diversity including NAIDOC Week and International Women’s Day. Further events usually held across the Commission were suspended due to working from home arrangements implemented in March 2020 in response to COVID-19.

146 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Management of human resources

Staff with carer responsibilities Through the Carer Recognition Act 2010 (the Carers Act) and the Carer Recognition Act 2010 Guidelines April 2016, the Australian Government recognises the contribution made by unpaid carers.

The aim of the Carers Act is to increase recognition and awareness of the role carers play in providing daily care and support to people with disability, a medical condition, mental illness or who are frail and aged. The Commission recognises the need of some of its employees to provide care, support and assistance in the role of carer.

We support access to personal/carers leave for all employees. Our enterprise agreement has provisions for personal/ carers leave and flexible working hours to manage carer responsibilities.

In 2019-20, 12 staff (2 per cent), of whom three (0.6 per cent) were males, accessed carers leave. There was a total of 243 days taken as carers leave, and 39 of those days were taken by males. We will continue to foster an organisational culture in which carers are encouraged and supported.

Indigenous staff In March 2015, the government announced a new target of three per cent Aboriginal and Torres Strait Islander representation in the Commonwealth public sector by 2018. To monitor progress against the target, Aboriginal and Torres Strait Islander representation is to be reported.

Our staff can nominate as being either of Aboriginal or Torres Strait Islander origin and four staff members have done so in the reporting period.

Reporting on disability The Commonwealth Disability Strategy 2010-20 sets out a 10-year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. Reports tracking progress against each of the six outcome areas of the strategy are available at dss.gov.au.

We offer employees reasonable adjustment in the workplace and accessible workplaces.

147 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

External scrutiny

Office of the Australian Information Commissioner decisions We were notified of three new review applications before the Office of the Australian Information Commissioner in the period from 1 July 2019 to 30 June 2020. All three of these new review applications were withdrawn following the release of additional information to the FOI applicant, prior to a decision being made by the Information Commissioner.

We carried over three Information Commissioner reviews of FOI decisions made by the Aged Care Complaints Commissioner. Two of these were finalised in the period. In one case, the Information Commissioner affirmed the Commission’s decision, while the other was finalised by the Information Commissioner after receipt of the Commission’s initial submissions. The outstanding review is awaiting a decision by the Information Commissioner.

Commonwealth Ombudsman The Commonwealth Ombudsman commenced two investigations under section 8 of the Ombudsman Act 1976 and made three section 7A preliminary inquiries about how we handle specific complaints. We provided information in response to all five matters, and were subsequently advised by the Ombudsman that no further action was required in relation to any of the five cases.

Regulator performance framework The Commission is accountable to the government for our performance as a regulator. The Australian Government’s Regulator Performance Framework (RPF) sets out the government’s expectations of Commonwealth regulators. The RPF encourages regulators to undertake their functions with minimum impact to achieve regulatory objectives and give businesses and the community confidence that regulators effectively and flexibly manage risk.

Under the terms of the RPF, we are required to monitor and self-assess our performance and report against six key performance indicators each financial year. The Commission’s self-assessment report to 30 June 2020 is currently being prepared.

148 agedcarequality.gov.au Annual Report 2019-20

Management and accountability External scrutiny

Parliamentary accountability On 23 October 2019, the Commission attended the Community Affairs Legislation Committee supplementary budget estimates hearing. On 4 March 2020, the Commission attended the Community Affairs Legislation Committee additional estimates hearing.

During the reporting period, we responded to 23 questions on notice from estimates hearings and contributed to the Department of Health portfolio questions on notice as requested.

Additionally, the Commissioner appeared before the Senate Select Committee on COVID-19 on 26 May 2020. The Committee was established to inquire into the Australian Government’s response to the COVID-19 pandemic. The Commission responded to 21 questions on notice from the Committee and contributed to the Department of Health portfolio questions as requested.

Royal Commission into Aged Care Quality and Safety The Royal Commission into Aged Care Quality and Safety is examining the full extent of issues in aged care now and into the future. We have given a high priority to cooperating with and responding in a timely way to requests from the Royal Commission. Supporting and informing its work has been a key focus area in our 2019-20 Corporate Plan. As outlined in the report on performance against our Corporate Plan, all performance measures in relation to responsiveness to the Royal Commission have been met.

Administrative Appeals Tribunal (AAT) There were four active matters during the 2019-20 financial year.

All four were under review at the AAT when regulatory functions were transferred from the Department of Health to the Commission on 1 January 2020. Of these, one was finalised during the period with the decision previously made by the Department of Health upheld. The other three matters are still in progress at 30 June 2020.

149 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

Assessment of effectiveness of assets management This item is not applicable because assets management is not a significant aspect of the strategic business of the Commission and none of the asset base has a life of 50 years or greater.

Purchasing

All purchasing is carried out in line with the requirements of the Commonwealth Procurement Rules and financial policies and procedures, and in keeping with the core principles of value for money, ethical, efficient, effective and economical conduct. Templates covering all aspects of purchasing and approval are maintained and used consistently.

All procurements in excess of $10,000 are reported in AusTender.

150 agedcarequality.gov.au Annual Report 2019-20

During 2019-20, three new consultancy contracts were entered into involving total actual expenditure of $123,129. In addition, one ongoing consultancy contract was active during the period involving total actual expenditure of $7,700.

Management and accountability

Consultancies

Number

Expenditure

$'000s (GST inclusive)

New consultancies let in the current year

3

123.1

Ongoing active consultancies 1 7.7

Table 40: Consultancies 2019-20

The Commission contracts providers of professional services after considering the skills and resources required for the task, internal capacity, and the cost effectiveness of contracting an external service provider. The decision to engage a consultant is made in accordance with the PGPA Act and related regulations.

151 agedcarequality.gov.au Annual Report 2019-20

Management and accountability Consultancies

2018-19 2019-20

New contracts

Number of new contracts 4 3

Consultancy expenditure $'000s 147.1 123.1

Ongoing contracts

Number of ongoing contracts - 1

Consultancy expenditure $'000s - 7.7

Table 41: Consultancy trend data

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the Austender website at tenders.gov.au

152 agedcarequality.gov.au Annual Report 2019-20

Management and accountability

Australian National Audit Office access clauses

Departments must provide details of any contract let during the reporting period of $100,000 or more (inclusive of GST) that does not provide for the Auditor-General to have access to the contractor’s premises.

During 2019-20, no contracts were let that did not require the Auditor-General to have access to the contractor’s premises.

Procurement initiatives to support small business

We support small business participation in the Australian Government procurement market wherever possible.

Where whole-of-government travel requirements cannot be met due to remote locations, we seek to book accommodation with local small business accommodation venues.

Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website.

Exempt contracts

If any contract in excess of $10,000 (inclusive of GST) or a standing offer has been exempted by the Commissioner from being published in AusTender on the basis that it would disclose exempt matters under the Freedom of Information Act 1982, the fact the contract has been exempted and the value of the contract or standing offer must be reported to the extent that doing so does not in itself disclose the exempt matters.

During 2019-20, there were no contracts considered exempt from publication in AusTender.

153 agedcarequality.gov.au Annual Report 2019-20

Other

accountability reporting

Other accountability reporting

154 agedcarequality.gov.au Annual Report 2019-20

ISQua accreditation

Other accountability reporting

We strive to be a best practice regulator and ensure our accreditation framework is consistent with internationally recognised accreditation frameworks.

We are accredited by the International Society for Quality in Health Care (ISQua) under its Guidelines and Standards for External Evaluation Organisations, 4th edition. ISQua assesses the standards of organisations that set the benchmarks in healthcare safety and quality.

It is the only international organisation that specifically uses health and social care standards.

Our Quality Assessor Training Program is accredited by ISQua against its Guidelines and Standards for Surveyor Training Programmes, 2nd edition.

We participate in the ISQua International Accreditation Program as members of survey teams, surveying other accreditation organisations, standards and surveyor training programs.

As active members of the ISQua Accreditation Council, we promote quality improvement in external evaluation programs through sharing and discussion with accreditation bodies across Australia and internationally, and researching evidence-based external evaluation practice.

155 agedcarequality.gov.au Annual Report 2019-20

Freedom of Information

Other accountability reporting

The Aged Care Quality and Safety Commission had five Freedom of Information (FOI) requests on hand at 1 July 2019.

We received 46 new FOI applications in the reporting period. Of these, 35 requests were finalised during the same period, and nine requests were withdrawn. Six requests have been carried over to the new financial year.

Of the 35 decisions made, in 29 cases we gave the FOI applicant partial or full access to the documents they sought. Five requests were refused in full under s 38(1) of the Freedom of Information Act 1982 (FOI Act) because of the extent of protected information in the documents. One request was refused under s 24A(1) of the FOI Act as no documents relating to the request existed in our records.

In the same period, we received four requests for internal review of FOI decisions. We affirmed the original decision for one of the requests and varied the original decisions for three of the requests in order to release more information to the applicant.

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

The Aged Care Quality and Safety Commission’s plan can be found at agedcarequality.gov.au/about-us/ access-information/information-publication-scheme-ips.

156 agedcarequality.gov.au Annual Report 2019-20

We are committed to the continuous improvement of our own processes and use the feedback provided by our stakeholders, including complaints about our service, to guide improvements.

When we receive a service complaint, we respond with information that may include: an outline of our complaints process, expected timeframes, the progress of the complaint and reasons for any delay, the complainant’s involvement in the process, and the possible or likely outcome of the complaint.

We advise the complainant as soon as possible when we are unable to deal with any part of the complaint and provide advice about where such issues and/or complaints may be directed.

We received 67 complaints during the year, compared with 158 the previous financial year.

Complaints are analysed to identify process improvement opportunities and to inform our learning and development programs.

Complaints about our service

Other accountability reporting

Advertising campaigns

During 2019-20, the Commission did not conduct any advertising campaigns.

Corrections There are no corrections to report from 2018-19.

157 agedcarequality.gov.au Annual Report 2019-20

Financial statements

Financial statements

158 agedcarequality.gov.au Annual Report 2019-20

Notes to the financial statements

Financial performance

Note 1: Impact of transition to AASB 16 170

Note 2: Departmental budget commentary 171

Note 3: Expenses 172

Note 4: Own-source income 175

Financial position

Note 5: Financial assets 178

Note 6: Non-financial assets 180

Note 7: Payables 185

Note 8: Interest bearing liabilities 186

Note 9: Provisions 187

Funding

Note 10: Annual appropriations 188

Note 11: Unspent appropriations 190

Note 12: Net cash appropriation arrangements 191

People and relationships

Note 13: Employee provisions 192

Note 14: Key management personnel remuneration 194

Note 15: Related party disclosures 195

Managing uncertainties

Note 16: Contingent assets and liabilities 196

Note 17: Financial instruments 197

Other information

Note 18: Departmental restructuring 199

Note 19: Aggregate assets and liabilities 200

Financial statements Contents

Certification

Independent auditor's report 159

Accountable authority statement 161

Overview

Primary financial statements

Statement of Comprehensive Income 162

Statement of Financial Position 163

Statement of Changes in Equity 164

Cash Flow Statement 165

166

159 agedcarequality.gov.au Annual Report 2019-20

Financial statements Independent auditor's report

GPO Box 707 CANBERRA ACT 2601 38 Sydney Avenue FORREST ACT 2603 Phone (02) 6203 7300 Fax (02) 6203 7777

INDEPENDENT AUDITOR’S REPORT

To the Minister for Aged Care and Senior Australians

Opinion

In my opinion, the financial statements of the Aged Care Quality and Safety Commission for the year ended 30 June 2020:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and

(b) present fairly the financial position of the Entity as at 30 June 2020 and its financial performance and cash flows for the year then ended.

The financial statements of the Aged Care Quality and Safety Commission, which I have audited, comprise the following as at 30 June 2020 and for the year then ended:

• Statement by the Accountable Authority and Chief Financial Officer; • Statement of Comprehensive Income; • Statement of Financial Position; • Statement of Changes in Equity; • Cash Flow Statement; and • Notes to the financial statements, comprising a summary of significant accounting policies and other

explanatory information.

Basis for opinion

I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Entity in accordance with the relevant ethical requirements for financial statement audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Accountable Authority’s responsibility for the financial statements

As the Accountable Authority of the Aged Care Quality and Safety Commission, the Commissioner is responsible under the Public Governance, Performance and Accountability Act 2013 (the Act) for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards - Reduced Disclosure Requirements and the rules made under the Act. The Commissioner is also responsible for such internal control as the Commissioner determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Commissioner is responsible for assessing the ability of the Aged Care Quality and Safety Commission to continue as a going concern, taking into account whether the Aged Care Quality and Safety Commission’s operations will cease as a result of an administrative restructure or for any other reason. The Commissioner is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.

160 agedcarequality.gov.au Annual Report 2019-20

Financial statements Independent auditor's report

Auditor’s responsibilities for the audit of the financial statements

My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control; • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority; • conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern; and • evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Commissioner regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Australian National Audit Office

Josephine Bushell Senior Director

Delegate of the Auditor-General

Canberra

21 September 2020

161 agedcarequality.gov.au Annual Report 2019-20

Financial statements Accountable authority statement

Engage Empower Safeguard

1800 951 822 agedcarequality.gov.au

J3260 - ACQSC_Letterhead_blank_PRESS.indd 1 J3260 - ACQSC_Letterhead_blank_PRESS.indd 1 19/8/20 10:25 am 19/8/20 10:25 am

162 agedcarequality.gov.au Annual Report 2019-20

Financial statements

Statement of Comprehensive Income For the year ended 30 June 2020

Notes

2020 $'000

6 Months to 30 June 2019 $'000

PBS $'000

Net cost of services

Expenses

Employee benefits 3A 54,655 24,915 50,264

Suppliers 3B 33,293 17,462 26,834

Depreciation and amortisation 6A-6C 3,679 902 1,775

Finance costs 3C 41 - 16

Total expenses 91,668 43,279 78,889

Own-Source Income

Revenue from contracts with customers 4A 7,092 7,268 7,754

Other revenue 4B 411 924 38

Total own-source income 7,503 8,192 7,792

Net cost of services 84,165 35,087 71,097

Revenue from Government 4C 83,431 34,190 69,322

Total comprehensive deficit (734) (897) (1,775)

The above statement should be read in conjunction with the accompanying notes.

163 agedcarequality.gov.au Annual Report 2019-20

Financial statements

Statement of Financial Position For the year ended 30 June 2020

Notes

2020 $'000

2019 $'000

PBS $'000

Assets Financial assets

Cash and cash equivalents 5A 11,006 3,677 1,001

Trade and other receivables 5B 35,870 31,819 26,879

Total financial assets 46,876 35,496 27,880

Non-financial assets 1

Buildings 6A 2,912 - -

Property plant and equipment 6B 2,196 1,604 2,991

Computer software 6C 1,493 2,742 5,060

Prepayments 98 350 439

Total non-financial assets 6,699 4,696 8,490

Total assets 53,575 40,192 36,370

Liabilities Payables

Suppliers 5,916 5,605 2,388

Unearned income 7A 7,063 3,276 2,079

Other payables 7B 955 483 -

Total payables 13,934 9,364 4,467

Interest bearing liabilities

Lease liabilities 8 3,390 - -

Provisions

Employee provisions 13 17,447 13,127 12,642

Other provisions 9 1,327 1,299 346

Total provisions 18,774 14,426 12,988

Total Liabilities 36,098 23,790 17,455

Net assets 17,477 16,402 18,915

Equity Contributed equity 19,002 17,299 22,866

Accumulated deficit (1,525) (897) (3,951)

Total equity 17,477 16,402 18,915

1 Right-of-use assets are included in Buildings and Property plant and equipment.

The above statement should be read in conjunction with the accompanying notes.

164 agedcarequality.gov.au Annual Report 2019-20

Financial statements

Statement of Changes in Equity For the year ended 30 June 2020

2020 $'000

2019 $'000

PBS $'000

Contributed equity

Opening balance 17,299 - 21,174

Distributions to owners:

Return of capital (17,727) - -

Contributions by owners:

Equity injection 17,738 16,279 -

Departmental capital budget 1,692 1,020 1,692

Total transactions with owners 1,703 17,299 1,692

Closing balance as at 30 June 19,002 17,299 22,866

Accumulated deficit

Opening balance (897) - (2,176)

Adjustments for changes in accounting policy 106 - -

Adjusted opening balance (791) - (2,176)

Deficit for the period (734) (897) (1,775)

Closing balance as at 30 June (1,525) (897) (3,951)

Total equity 17,477 16,402 18,915

The above statement should be read in conjunction with the accompanying notes.

165 agedcarequality.gov.au Annual Report 2019-20

Financial statements

Cash Flow Statement For the year ended 30 June 2020

Notes

2020 $'000

6 Months to 30 June 2019 $'000

PBS $'000

Operating activities Cash received Appropriations 74,320 32,922 69,363

Sale of goods and rendering of services 10,911 6,759 8,392

Other 949 400 -

Net GST received 2,928 211 -

Total cash received 89,108 40,292 77,755

Cash used Employees (49,494) (23,517) (49,482)

Suppliers (35,141) (15,790) (27,895)

Interest payments on lease liabilities (41) - -

Total cash used (84,676) (39,307) (77,377)

Net cash from operating activities 4,432 985 378

Investing activities Cash received Proceeds from sale of property, plant and equipment 40 - -

Total cash received 40 - -

Cash used Purchase of property, plant and equipment (955) (885) (1,157)

Purchase of computer software (91) (1,001) (1,079)

Total cash used (1,046) (1,886) (2,236)

Net cash used by investing activities (1,006) (1,886) (2,236)

Financing activities Cash received Departmental capital budget 5,441 1,020 1,692

Other financing activity - 3,558 -

Total cash received 5,441 4,578 1,692

Cash used Principal repayments of lease liabilities (1,538) - -

Total cash used (1,538) - -

Net cash from financing activities 3,903 4,578 1,692

Net (decrease)/increase in cash held 7,329 3,677 (166)

Cash at the beginning of the period 3,677 - 1,167

Cash at the end of the period 5A 11,006 3,677 1,001

The above statement should be read in conjunction with the accompanying notes.

166 agedcarequality.gov.au Annual Report 2019-20

Objectives of the Aged Care Quality and Safety Commission The Aged Care Quality and Safety Commission (the Commission) is a non-corporate Commonwealth entity established by the Australian Aged Care Quality & Safety Commission Act 2018. The Commission is subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The Commission commenced operations on 1 January 2019, bringing together the functions of the Aged Care Quality Agency (which was abolished on 31 December 2018), the Aged Care Complaints Commissioner and, from 1 January 2020, the aged care regulatory functions previously performed by the Department of Health. The comparative numbers for the 2019 year are, accordingly, for a six-month period only.

The Commission's functions are:

• approving providers of aged care services;

• promoting the provision of quality care and services by approved providers;

• education functions;

• ensuring compliance of aged care services with the relevant legislation;

• regulatory functions including accreditation of residential aged care services;

• imposing and lifting sanctions on aged care providers;

• reconsidering and reviewing decisions;

• consumer engagement functions; and

• complaints functions.

There were no events after the reporting period that would significantly affect the ongoing structure and financial activities of the Commission.

Basis of preparation of the financial statements The financial statements are general purpose financial statements and are required by Section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

• Public Governance Performance and Accountability (Financial Reporting) Rule 2015 (FRR), incorporating amendments in the Public Governance, performance and Accountability (Financial Reporting) Amendments Rules 2019; and

• Australian Accounting Standards and Interpretations - Reduced Reporting Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis, and in accordance with the historical costs convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values.

Overview

Financial statements

167 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Significant accounting estimates and judgements Except where specifically identified and disclosed, the Commission has determined that no accounting assumptions and estimates have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

New accounting standards

Adoption of new Australian accounting standards requirements

No new, revised, amending statements and/or interpretations that were issued prior to the sign-off date and are applicable to the current reporting period had a material effect on the Commission's financial statements.

Application of AASB 16 Leases

The Commission adopted AASB 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under AASB 117 and related interpretations.

The Commission elected to apply the practical expediency of not reassessing whether a contract is, or contains a lease at the date of initial application. Contracts entered into before the transition date that were not identified as leases under AASB 117 were not reassessed. The definition of a lease under AASB 16 was applied only to contracts entered into or changed on or after 1 July 2019.

AASB 16 provides for certain optional practical expedients, including those related to the initial adoption of the standard. The Commission adopted the following practical expedients when applying AASB 16 to leases previously classified as operating leases under AASB 117:

• Applying a single discount rate to a portfolio of leases with reasonably similar characteristics;

• Excluding initial direct costs from the measurement of right-of-use assets at the date of initial application for leases where the right-of-use asset was determined as if AASB 16 had been applied since the commencement date;

• Relying on previous assessments on whether leases are onerous as opposed to preparing an impairment review under AASB 136 Impairment of assets as at the date of initial application; and

• Applying the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term remaining as of the date of initial application.

As a lessee, the Commission previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under AASB 16, the Commission recognises right-of-use assets and lease liabilities for most leases. However, the Commission has elected not to recognise right-of-use assets and lease liabilities for some leases of low value assets based on the value of the underlying asset when new or for short-term leases with a lease term of 12 months or less.

168 agedcarequality.gov.au Annual Report 2019-20

On adoption of AASB 16, the Commission recognised right-of-use assets and lease liabilities in relation to leases of office space and motor vehicles that had previously been classified as operating leases.

The lease liabilities were measured at the present value of the remaining lease payments, discounted using the Commission's incremental borrowing rate as at 1 July 2019. The Commission's incremental borrowing rate is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and conditions. The weighted-average rate applied was 1.0%.

The right-of-use assets were measured as follows:

a) Office space: measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.

b) All other leases: the carrying value that would have resulted from AASB 16 being applied from the commencement date of the leases, subject to the practical expedients noted above.

Impact on transition to AASB 16

The impact on transition is summarised in note 1.

Application of AASB 15 Revenue from contracts with Customers / AASB 1058 Income for Not-For-Profit-Entities. AASB 15 Revenue from Contracts with Customers and AASB 1058 Income for Not-For-Profit Entities became effective on 1 July 2019.

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 115 Construction Contracts, and Interpretation 13 Customer Loyalty Programmes. The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.

AASB 1058 is relevant in circumstances where AASB 15 does not apply. AASB 1058 replaces most of the Not-For-Profit (NFP) provisions of AASB 1004 Contributions, and applies to transactions where the consideration to acquire an asset principally to enable the entity to further its objectives is significantly less than its fair value, and where volunteer services are received.

Under the new income recognition model the Commission first determines whether an enforceable agreement exists and whether the promises to transfer goods or services to the customer are sufficiently specific.

In terms of AASB 1058, the Commission is required to recognise volunteer services at fair value if those services would have been purchased had they not been provided voluntarily, and if the fair value of those services can be measured reliably.

Impact on transition to AASB 15 and AASB 1058

The requirements of AASB 15 and AASB 1058 are consistent with the way in which the Commission is currently, and historically, has accounted for its revenue from third parties, hence there is no impact from the adoption of these standards.

Financial statements Notes to and forming part of the financial statements

169 agedcarequality.gov.au Annual Report 2019-20

Impact of COVID-19 The COVID-19 pandemic has impacted the Commission’s operations and required adjustments to some regulatory functions focusing additional effort where needed to monitor the wellbeing and safety of consumers. Additional resources were committed to developing alternative methodologies utilising remote computer technology.  The Commission's workforce was equipped to facilitate working from home arrangements and this involved an investment in portable computer devices and cloud-supported technology. The Commission’s workforce was realigned and enhanced where needed to support the response to COVID-19, including provision of education and advice to the sector.

Notwithstanding these revised work practices the Commission was not able to complete all of the revenue-generating audit assessments that it would have undertaken, with a number of them having to be deferred to the next financial year.

Taxation The Commission is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Financial statements Notes to and forming part of the financial statements

170 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

1 July 2019 $'000

Departmental

Right-of-use assets - buildings 4,388

Right-of-use assets - property plant & equipment 62

Lease liabilities (4,450)

Lease incentives 106

Retained earnings (106)

Impact on transition On transition to AASB 16, the Commission recognised additional right-of-use assets and additional lease liabilities, recognising the difference in retained earnings. The impact on transition is summarised below:

The following table reconciles the departmental minimum lease commitments disclosed in the Commission's 30 June 2019 annual financial statements to the amount of lease liabilities recognised on 1 July 2019: 1 July 2019

$'000

Minimum operating lease commitment at 30 June 2019 4,638

Less: short-term leases not recognised under AASB 16 (101)

Less: low-value leases not recognised under AASB 16 (17)

Undiscounted lease payments 4,520

Less: effect of discounting using the incremental borrowing rate as at the date of initial application (70)

Lease liability recognised on 1 July 2019 4,450

Note 1: Impact of transition to AASB 16

Financial performance This section analyses the financial performance of the Commission for the year ended 30 June 2020

171 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 2: Departmental budget commentary

Comments on significant variances between the Commission's original budget estimates, as published in the 2019-20 Portfolio Budget Statements, and the actual expenditure and the net assets for the year are provided in the table below.

Explanation of major variances Affected line item

Employee benefits Increased level of staffing to cope with greater demands for complaints resolution and compliance-based activities as well as enhancing safety, quality and integrity in the home care compliance through the home care compliance framework.

Employee benefits - Statement of Comprehensive Income

Employee provisions - Statement of Financial Position

Cash Used for Employees - Cash Flow Statement

Suppliers Greater level of contract assessors and casual administration staff due to increasing demands of compliance and monitoring to further enhance safety, quality & integrity in home care, ongoing aged care reforms including risk-based targeting and information sharing, regulatory integration and COVID-19 response; uncapitalised project costs related to integrating operational software.

Supplier costs - Statement of Comprehensive Income

Cash used for suppliers - Cash Flow Statement

Cash used for investing activities - Cash Flow Statement

Depreciation and amortisation Lower than expected capitalised costs relating to integration of operational software; Implementation of new AASB 116 Leases accounting standard.

Depreciation & amortisation

- Statement of Comprehensive Income

Non financial assets - Statement of Financial Position

Own source income Lower level of accreditation audits as a result of COVID-19.

Total own source revenue - Statement of Comprehensive Income

Unearned revenues from external parties - Statement of Financial Position

Cash from sale of goods and rendering of services - Cash Flow Statement

Revenue from Government Additional appropriation for ongoing aged care reforms with the transfer of compliance function to the Commission from 1 January 2020 as well as funding for COVID-19 response and response to the Royal Commission into Aged Care Quality and Safety.

Revenue from Government - Statement of Comprehensive Income

Trade and other receivables - Statement of Financial Position

Cash from appropriations - Cash Flow Statement

172 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 3: Expenses

Note 3A: Employee benefits

2020 $'000

6 months to 30 June 2019 $'000

Wages and salaries 44,725 20,482

Superannuation

Defined contribution plans 5,095 2,370

Defined benefit plans 2,115 938

Leave and other entitlements 2,659 1,125

Separation and redundancies 61 -

Total employee benefits 54,655 24,915

Accounting Policy Accounting policies for employee related expenses are contained in the People and Relationships section.

173 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 3B: Suppliers

2020 $'000

6 months to 30 June 2019 $'000

Goods and services provided

Communications 2,034 611

Consultants 119 134

Contractors 17,644 8,119

IT Services 1,353 760

Legal 1,654 1,377

Serviced facilities 4,170 1,149

Shared services fees 1,173 381

Travel 2,375 2,066

Other 2,313 1,610

Total goods and services provided 32,835 16,207

Other suppliers

Operating lease rentals 1 - 1,149

Short-term leases 195 -

Low-value leases 9 -

Workers compensation expenses 254 106

Total other suppliers 458 1,255

Total suppliers 33,293 17,462

1 The Commission has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117. The above lease disclosures should be read in conjunction with the accompanying notes. The Commission does not have any short-term lease commitments as at 30 June 2020.

Accounting Policy Short-term leases and low-value leases:

The Commission has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less and leases of low-value assets (less than $10,000). The entity recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

174 agedcarequality.gov.au Annual Report 2019-20

Note 3C: Finance costs

2020 $'000

6 months to 30 June 2019 $'000

Finance leases 41 -

Financial statements Notes to and forming part of the financial statements

The Commission has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

The above lease disclosures should be read in conjunction with the accompanying notes 1, 3B, 7B, 8 and 17.

Accounting Policy All borrowing costs are expensed as incurred.

Note 3D: Gain/(loss) from asset sales

2020 $'000

6 months to 30 June 2019 $'000

Property, plant and equipment

Proceeds from sale 40 -

Carrying value of assets sold (40) -

Net gain/(loss) from sale of assets - -

Accounting Policy Gains or losses from disposal of assets are recognised when control of the asset has passed to the buyer.

175 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 4: Own-source income

Note 4A: Revenue from contracts with customers

2020 $'000

6 months to 30 June 2019 $'000

Accreditation fees 6,915 6,726

Educational services 171 542

Licence fees 6 -

7,092 7,268

Accounting Policy Revenue from the sale of goods and services is recognised when control has been transferred to the buyer.

A contract is within the scope of AASB 15 when a contract gives rise to specific performance obligations which are sufficiently specific to enable the Commission to determine when they have been satisfied.

The following is a description of principal activities from which the Commission generates its revenue:

The Commission receives its main source of income from accreditation fees and providing educational activities. Accreditation fees are paid on application and held in unearned revenue in the Statement of Financial Position and brought to revenue, when the performance obligations are met, on completion of the accreditation audit.

Fees for educational services are paid in advance, at the time the customer reserves their place, and are held in unearned revenue in the Statement of Financial Position until the activity has been conducted.

Annual licence fees for the Commission's on-line learning platform are taken directly to revenue at the time of payment as customers are given immediate access at the time of payment.

The transaction price is the total amount of consideration to which the Commission expects to be entitled in exchange for transferring promised goods and services to a customer. The consideration promised in a contract with a contractor is a fixed amount.

176 agedcarequality.gov.au Annual Report 2019-20

Note 4B: Other revenue

2020 $'000

6 months to 30 June 2019 $'000

Assessor registration fees and guides 65 56

Revenue from joint development projects 292 830

Resources received free of charge

Remuneration of auditors 54 38

411 924

Accounting Policy Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Assessor registration fee income is recognised as revenue on receipt of the registration fees.

Revenue from joint development projects is recognised as revenue over time depending on the stage of completion of the services provided. Generally these agreements have specific time lines and deliverables for completion which informs the timing of the revenue recognition.

Financial statements Notes to and forming part of the financial statements

177 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 4C: Revenue from Government

2020 $'000

6 months to 30 June 2019 $'000

Departmental appropriations 83,431 34,190

Accounting Policy Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the entity gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Note 4D: Unsatisfied obligations

2020 $'000

6 months to 30 June 2019 $'000

Contracts with customers

1 year 6,140 3,276

The liability for unsatisfied obligations is represented on the Statement of Financial Position as unearned income and is disclosed in Note 7A.

The Commission expects to recognise as income any liability for unsatisfied obligations associated with contracts with customers within the following periods:

178 agedcarequality.gov.au Annual Report 2019-20

Financial position

The section analyses the Commission's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

Note 5: Financial assets

Note 5A: Cash and cash equivalents

2020 $'000

2019 $'000

Cash at bank 11,005 3,676

Cash on hand 1 1

Total cash and cash equivalents 11,006 3,677

Accounting Policy Cash is recognised at its nominal amount.

Financial statements Notes to and forming part of the financial statements

179 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 5B: Trade and other receivables

2020 $'000

2019 $'000

Receivables for goods and services 2 5

Receivables other - 538

Receivable employee entitlements 130 441

Departmental appropriations receivable 20,676 11,565

Equity injection receivable 14,000 17,738

GST receivable from the Australian Taxation Office 1,062 1,532

Total trade and other receivables (gross) 35,870 31,819

There are no trade or other receivables expected to be recovered in more than 12 months.

Accounting Policy Financial assets:

Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

180 agedcarequality.gov.au Annual Report 2019-20

Note 6A: Reconciliation of opening and closing balances of buildings

2020 $'000

2019 $'000

As at 1 July 2019

Recognition of right-of-use assets on initial application of AASB 16 4,388 -

Depreciation expense (1,476) -

Total as at 30 June 2020 2,912 -

Total as at 30 June 2020 represented by:

Gross book value 4,388 -

Accumulated depreciation (1,476) -

Total as at 30 June 2020 2,912 -

Financial statements Notes to and forming part of the financial statements

Note 6: Non-financial assets

181 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 6B: Reconciliation of opening and closing balances of property, plant and equipment

2020 $'000

2019 $'000

As at 1 July 2019

Gross book value 1,925 -

Accumulated depreciation and impairment (321) -

Opening balance 1,604 -

Recognition of right-of-use assets on initial application of AASB 16 62 -

Total as at 1 July 2019 1,666 -

Acquisition through administrative arrangements orders 1 - 1,041

Additions by right-of-use 478 -

Additions by purchase 955 885

Disposal (40) -

Depreciation expense (863) (322)

Total as at 30 June 2020 2,196 1,604

Total as at 30 June 2020 represented by:

Gross book value 3,250 1,925

Accumulated depreciation (1,054) (321)

Total as at 30 June 2020 2,196 1,604

1 Assets transferred from the Australian Aged Care Quality Agency at net book value.

182 agedcarequality.gov.au Annual Report 2019-20

Accounting Policy

Acquisition of assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to restructuring.

Depreciation

Depreciable property, plant and equipment assets are written down to their estimated residual values over their estimated useful lives to the Commission using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods as appropriate.

Impairment

All assets were assessed for impairment at 30 June 2020. Where indicators of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment is made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset's ability to generate future cash flows, and the asset would be replaced if the Commission were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Property, plant and equipment

1. Assets recognition threshold

Purchases of property, plant and equipment are initially recognised at cost in the Statement of Financial Position, except for purchases costing less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located.

Financial statements Notes to and forming part of the financial statements

183 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

2. Lease right-of-use assets

Lease right-of-use assets are capitalised at the commencement date of the lease and comprise the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned.

On initial adoption of AASB 16 the Commission has adjusted the right-of-use assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease right-of-use assets continue to be measured at cost after initial recognition.

3. Revaluation

Following initial recognition at cost, property, plant and equipment (excluding right-of-use assets) is carried at fair value (or an amount not materially different from fair value) less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to the asset revaluation reserve in equity except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the Statement of Comprehensive Income except to the extent that they reverse a previous revaluation increment for that class.

Revaluation decrements for a class of assets are recognised directly through the Statement of Comprehensive Income except to the extent that they reverse a previous revaluation increment for that class of asset. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

4. Depreciation

Property, plant and equipment is depreciated on a straight-line basis over its anticipated useful life. The useful lives of the Commission's property, plant and equipment are 3 to 5 years (2019: 3 to 5 years).

The depreciation rates for right-of-use assets are based on the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

5. Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

184 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 6C: Reconciliation of opening and closing balances of intangibles

2020 $'000

2019 $'000

As at 1 July 2019

Gross book value 3,322 -

Accumulated amortisation and impairment (580) -

Total as at 1 July 2019 2,742 -

Acquisition through administrative arrangements orders 1 - 2,321

Additions by purchase 91 1,001

Amortisation expense (1,340) (580)

Total as at 30 June 2020 1,493 2,742

Total as at 30 June 2020 represented by:

Gross book value 3,413 3,322

Accumulated amortisation and impairment (1,920) (580)

Total as at 30 June 2020 1,493 2,742

1 Assets transferred from the Australian Aged Care Quality Agency at net book value.

Accounting Policy

Intangibles

The Commission’s intangibles comprise purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Commission's software are 3 to 5 years (2019: 3 to 5 years).

All software assets were assessed for indicators of impairment at 30 June 2020.

185 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 7: Payables

Note 7A: Unearned income

2020 $'000

2019 $'000

Unearned revenue from customers 6,140 3,276

Unearned revenue from joint venture projects 923 -

7,063 3,276

Accounting Policy Unearned revenues from customers represent a liability for cash receipts for accreditation and education services that have been paid in advance. Revenue is recognised from the liability when the accreditation activities or education services have been provided.

Unearned other income represents funds received in advance from project sponsors to undertake specified activities under the project. Funds will be recognised as income once the specified outcomes have been completed.

186 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 7B: Other payables

2020 $'000

2019 $'000

Salaries and wages 866 336

Employee deductions 8 6

Superannuation 1 5

Accrued expense 80 30

Lease incentives 1 - 106

Total other payables 955 483

1 The Commission has applied AASB16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

The total cash outflow for leases for the year ended 30 June 2020 was $1,578,272 (2019: $2,297,478).

Note 8: Interest bearing liabilities

2020 $'000

2019 $'000

Lease liabilities

Buildings 2,977 -

Property plant and equipment 413 -

3,390 -

Current lease liabilities 1,259 -

Non-current lease liabilities 2,131 -

3,390 -

1 The Commission has applied AASB16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

187 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 9: Provisions

2020 $'000

2019 $'000

Other provisions

Make good 282 314

Contractor and employee entitlements 1,045 985

1,327 1,299

Reconciliation of provision for make good

Opening balance 314 314

Additional provisions made/(utilised) (32) -

Total as at 30 June 282 314

Reconciliation of provision for contractor and employee entitlements

Opening balance 985 985

Additional provisions made/(utilised) 60 -

Total as at 30 June 1,045 985

Provision for make good

The Commission currently has 4 (2019: 5) agreements for the leasing of premises that have provisions requiring the Commission to restore the premises to their original condition at the conclusion of the lease. The Commission has made a provision to reflect the present value of this obligation.

Provision for contractor and employee entitlements

The provision for contractor and employee entitlements covers additional entitlements that may accrue to certain contractors and employees under arrangements made by the Commission's predecessor, the Australian Aged Care Quality Agency. The provision reflects claims for those entitlements expected to be paid in future periods by the Commission.

188 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Funding

This section identifies the Commission's funding structure.

Note 10: Annual appropriations (recoverable GST exclusive)

Notes

2020 $'000

6 Months to 30 June 2019 $'000

Ordinary annual services

Appropriation Act ( No.1) 2019-20 41,819 -

Appropriation Act ( No.3) 2019-20 11,744 8,660

PGPA Act Section 74 Appropriation Act (No.1) 2019-20 8,212 7,448

PGPA Act Section 74 Supply Act (No. 1) 2019-20 4,146 -

PGPA Section 75 Appropriation Act (No.1) 2019-20 2,176 35,827

Supply Act (No. 1) 2019-20 27,143 -

Appropriation (COVID-19 Eco Response Pack) Act (No.1) 2019-20 2,725 -

Total ordinary annual services appropriation 97,965 51,935

Appropriation applied (current and prior years) (88,854) (40,370)

Variance Note 1 9,111 11,565

Capital budget

PGPA Act Section 75 (Appropriation Act (No.1) - DCB 2019 - 1,020

Supply Act (No.1) - DCB 2019-20 705 -

Appropriation Act (No.1) - DCB 2019-20 987 -

Total capital budget appropriation 1,692 1,020

Appropriation applied (current and prior years) (1,692) (1,020)

Variance Note 2 - -

189 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Notes

2020 $'000

6 Months to 30 June 2019 $'000

Equity injection

PGPA Act Section 75 (Appropriation Act (No.4) 2016-17 - 17,738

Appropriation Act (No.4) Equity Injection 2019-20 17,738 -

Total equity injection 17,738 17,738

Appropriation applied (current and prior years) (21,476) -

Variance Note 2 (3,738) 17,738

Total change in appropriation receivable 5,373 29,303

Notes

1. Ordinary annual services variance

The Commission receives S74 revenue in advance of performing services and this reduces the need to draw down the appropriation for ordinary annual services until the services have been rendered, which can be in a future financial year.

Additional cash resources were received from the Department of Health under a S75 arrangement to fund the employee entitlements of employees transferred and these have reduced the need to draw down on the appropriation for ordinary annual services. These will be drawn down as entitlements fall due.

2. Equity injection variance

The variance in the equity injection relates to undrawn funding for liabilities transferred from the Australian Aged Care Quality Agency, which will fall due in future periods.

Accounting policy Transactions with the Australian Government as owner:

Equity injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Restructuring of administrative arrangements

Net assets received from or relinquished to another Australian Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Other distributions to owners

The FRR requires that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.

190 agedcarequality.gov.au Annual Report 2019-20

Note 11: Unspent appropriations (recoverable GST exclusive)

2020 $'000

2019 $'000

Departmental annual appropriation

Appropriation Act 1 6,756 -

PGPA Act section 75 2,176 11,565

Appropriation Act 3 11,744 -

Cash at bank 11,006 3,677

Total unspent departmental annual appropriation 31,682 15,242

Equity injection appropriation

PGPA Act section 75 - 17,738

Appropriation Act (No.4) Equity Injection 2019-20 14,000 -

Total unspent equity injection appropriation 14,000 17,738

Total unspent appropriations 45,682 32,980

Financial statements Notes to and forming part of the financial statements

191 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 12: Net cash appropriation arrangements

2020 $'000

2019 $'000

Total comprehensive income less depreciation/amortisation expenses previously funded through revenue appropriations 1,407 5

Plus: depreciation/amortisation expenses previously funded through revenue appropriation (2,075) (902)

Plus: depreciation right-of-use assets (1,604) -

Less: principal repayments - leased assets 1,538 -

Total comprehensive income as per the Statement of Comprehensive Income (734) (897)

From 2010-11, the Government introduced net cash appropriation arrangements where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through entity appropriations. Capital budgets are appropriated in the period when cash payment for capital equipment is required.

The inclusion of depreciation/amortisation expenses related to right-of-use leased assets and lease liability principal repayment amounts reflects the cash impact on implementation of AASB 16 Leases, it does not directly reflect a change in appropriation arrangements.

192 agedcarequality.gov.au Annual Report 2019-20

People and relationships

This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

Note 13: Employee provisions

Financial statements Notes to and forming part of the financial statements

2020 $'000

2019 $'000

Leave 17,277 13,018

Separations and redundancies 170 109

Total employee provisions 17,447 13,127

Accounting Policy Liabilities for short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.

Other long-term employee benefits are measured as the net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

193 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the agency is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Commission’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the estimated future cash flows to be made in respect to all employees as at 30 June 2020. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy

Provision is made for separation and redundancy benefit payments. The Commission recognises a provision for termination when it has developed a detailed formal plan for the terminations or where the circumstances indicate that separations and redundancies are more likely to occur than not.

Superannuation

The majority of the staff of the Commission are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The Commission makes employer contributions to the CSS and PSS superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The entity accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the period for all staff.

194 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 14: Key management personnel remuneration

2020 $'000

6 months to 30 June 2019 $'000

Expenses recognised in relation to key management personnel

Short-term employee benefits

Salary 1,799 681

Other benefits and allowances 90 21

Total short-term employee benefits 1,889 702

Superannuation 301 112

Long-service leave 44 16

Total key management remuneration expenses 2,234 830

Key management personnel are those persons having authority and responsibility for planning, directing and controlling activities of the Commission, directly or indirectly, including any director (whether executive or otherwise) of the Commission. The Commission has determined the key management personnel to be the Commissioner and the Senior Executive Service staff as follows:

The total number of key management personnel that are included in the above table is 8 (2019: 6).

The above key management personnel remuneration excludes the remuneration and other benefits of the portfolio minister. The portfolio minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the Commission.

195 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 15: Related party disclosures

Related party relationships

The Commission is an Australian government controlled entity. Related parties to this entity are key management personnel including the portfolio minister and other Australian government entities.

Transactions with related parties

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans.

Significant transactions with related parties can include:

• the payments of grants or loans;

• purchases of goods and services;

• asset purchases, sales transfers or leases;

• debts forgiven; and

• guarantees.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the Commission, it has been determined that there are no related party transactions to be separately disclosed.

196 agedcarequality.gov.au Annual Report 2019-20

Managing uncertainties

This section analyses how the Commission manages financial risks within its operating environment.

Note 16: Contingent assets and liabilities Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

Quantifiable contingencies

The Commission has two (2019: two) bank guarantees in respect of office lease guarantees with a total of $175,876 (2019: $175,876).

Unquantifiable contingencies

At 30 June 2020, the Commission has an unquantifiable contingency in relation to potential additional contractor entitlements arising from historical services provided by contractors to prior entities. An unquantifiable contingency has been disclosed because an obligation has not yet been determined and is not yet possible to estimate the amounts of any eventual payments that may be required in relation to these entitlement. Refer note 9 above.

Significant remote contingencies

The Commission had no significant remote contingencies.

Financial statements Notes to and forming part of the financial statements

197 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Note 17: Financial instruments

2020 $'000

2019 $'000

Categories of financial instruments

Financial assets

Financial assets at amortised cost

Cash and cash equivalents 11,006 3,677

Trade and other receivables 2 543

Total financial assets at amortised cost 11,008 4,220

Financial liabilities

Financial liabilities measured at amortised cost

Supplier payables 5,916 5,605

Unearned revenue 7,063 3,276

Other payables 955 483

Total financial liabilities measured at amortised cost 13,934 9,364

198 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Accounting Policy

Financial assets

With the implementation of AASB 9 Financial Instruments for the first time in 2019, the financial assets are classified in the following categories:

(a) financial assets at fair value through profit or loss;

(b) financial assets at fair value through other comprehensive income; and

(c) financial assets measured at amortised cost.

The classification depends on both the Commission's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the Commission becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash, and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Under AASB 9 Financial Instruments, the Commission classified its financial assets at amortised cost using the effective interest method.

Financial assets at amortised cost

Financial assets included in this category need to meet two criteria:

1. the financial asset is held in order to collect the contractual cash flows; and

2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

Effective interest method

Income is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost.

Impairment of financial assets

Financial assets are assessed for impairment at the end of each reporting period based on expected credit losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12-month expected credit losses if risk has not increased.

Financial liabilities

Financial liabilities are classified as either financial liabilities 'at fair value through profit or loss' or other  financial liabilities. Financial liabilities are recognised and derecognised upon 'trade date'.

The Commission categorises its financial liabilities at amortised cost.

Financial liabilities at amortised cost

Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective interest basis.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

199 agedcarequality.gov.au Annual Report 2019-20

Financial statements Notes to and forming part of the financial statements

Other information

Note 18: Departmental restructuring

Department of Health 1 $'000

Functions assumed

Assets recognised

Trade and other receivables 2,176

Total assets recognised 2,176

Liabilities recognised

Employee provisions (2,166)

Total liabilities recognised (2,166)

Net assets recognised 10

1 The functions of aged care compliance were transferred to the Commission from the Department of Health on 1 January 2020.

The net assets assumed from the Department of Health were $10,280.

200 agedcarequality.gov.au Annual Report 2019-20

Note 19: Aggregate assets and liabilities

Financial statements Notes to and forming part of the financial statements

2020 $'000

2019 $'000

Assets expected to be recovered in:

No more than 12 months 46,974 35,846

More than 12 months 6,601 4,346

Total assets 53,575 40,192

Liabilities expected to be settled in:

No more than 12 months 31,507 20,383

More than 12 months 4,591 3,407

Total liabilities 36,098 23,790

201 agedcarequality.gov.au Annual Report 2019-20

References and appendices

References and appendices

202 agedcarequality.gov.au Annual Report 2019-20

Glossary

References and appendices

Abbreviation Term

AASB

Australian Accounting Standards Board

AAT Administrative Appeals Tribunal

ACQSC Aged Care Quality and Safety Commission

ACQSC Act Aged Care Quality and Safety Commission Act 2018

AHPRA Australian Health Practitioner Regulation

ANAO Australian National Audit Office

APCS Annual Prudential Compliance Statement

APS Australian Public Service

AusTender The Australian Government procurement information system

CAAT Computer-Assisted Audit Tool

CEO Chief Executive Officer

CER Consumer Experience Report

CHSP Commonwealth Home Support Programme

Commissioner Aged Care Quality and Safety Commissioner

CPD Continuing Professional Development

CSS Commonwealth Superannuation Scheme

DCB Departmental Capital Budgets

Department Department of Health

EA Enterprise Agreement

ED Executive Director

EL Executive Level

ELG Executive Leadership Group

FBT Fringe Benefits Tax

FOI Freedom of Information

203 agedcarequality.gov.au Annual Report 2019-20

References and appendices Glossary

Abbreviation Term

FOI Act

Freedom of Information Act 1982

FRR Financial Reporting Rule

FTE Fulltime Equivalent

GST Goods and Services Tax

HCP Home Care Packages

ICT Information and Communication Technology

IFA Individual Flexibility Arrangement

IPS Information Publication Scheme

ISQua International Society for Quality in Health Care

MOU Memorandum of Understanding

NLG National Leadership Group

OPAN Older Persons Advocacy Network

PACG Provider Approvals and Compliance Group

PBS Portfolio Budget Statements

PCI Plan for Continuous Improvement

PDS Performance Development Scheme

PGPA Act Public Governance, Performance and Accountability Act 2013

PICAC Partners in Culturally Appropriate Aged Care

PMO Project Management Office

PSPF Protective Security Policy Framework

PSSap Public Sector Superannuation accumulation plan

RAD Refundable Accommodation Deposits

RPF Regulator Performance Framework

SES Senior Executive Service

204 agedcarequality.gov.au Annual Report 2019-20

References and appendices

Alphabetical index

A abbreviations, 202-203 Aboriginal and Torres Strait Islander people employees, 134, 146 services for see National Aboriginal and Torres Strait Islander Flexible Aged Care

program services accountable authority, 18 accountable authority statement, 78 accreditation quality assessors, 59 residential aged care services, 37-41 administrative action, 49 Administrative Appeals Tribunal, 148 advertising, 156 Aged Care Act 1997, 26, 36, 49, 72 Aged Care Learning Information Solution, 28, 68-69 Aged Care Quality and Safety Advisory Council, 27, 119-120 Aged Care Quality and Safety Commission Commissioner see Commissioner overview, 12-18 regulatory framework, 24 regulatory strategy, 34-35 role, responsibilities and functions, 12-16, 24 statutory decisions, 58 Aged Care Quality and Safety Commission Act 2018, 3, 12, 16, 27, 102, 108 Aged Care Quality and Safety Commission Rules 2018, 12, 24, 55, 108 Aged Care Quality Bulletins, 38, 76 Aged Care Quality Standards, 20, 72 app, 75-76 assessment methodology, 21 assessment processes, 37-48

education programs, 28, 68-69 non-compliance, 24, 49-61 regulation performance results, 94-96 aged care sector, 19 ANAO see Australian National Audit Of fice (ANAO) Anderson, Janet, 18, 107, 109, 119, see also Commissioner annual performance statements, 78-100 accountable authority statement, 78 corporate plan performance results, 84-98 financial activities, 99-100 outcome and program performance results, 81-83

report on performance, 80 annual report corrections, 156 apps Quality Standards mobile app, 75-76 assessment contacts with providers, 31, 46-47 assessment methodology, 21 asset management, 149 Auditor-General see Australian National Audit Office audits financial statements audit, 159-160 internal arrangements, 104 Risk and Audit Committee, 103-104 AusTender, 149 Australian Health Practitioner Regulation  Agency, 26 Australian Institute for Primary Care and Ageing, 58 Australian National Audit Of fice access clauses in contracts, 152 financial statements audit report, 159-160 Australian Public Service values, 15

205 agedcarequality.gov.au Annual Report 2019-20

References and appendices Alphabetical index

B Barkla, Carolanne, 119 Bolger, Christina, 107, 110 bushfire crisis response, 27

C capability, 13 carer responsibilities, staff with, 146 Charter of Aged Care Rights, 21, 72 chemical and physical restrictions, 22 Chief Clinical Advisor, 32, 107, 115 Chief Operating Officer, 112 Christie, Pam, 107, 111 code of conduct, 60 Colbeck, Senator the Hon Richard, 3,10, 12,27, 119 Commissioner, 18, 107, 109 decision making delegation, 58, 102 message from, 8-10 powers, 102 role, 109 Commonwealth Home Support Programme, 20, 63, 64-65 Commonwealth Ombudsman, 147 Commonwealth Procurement Rules, 149 communications activities, 75 complaints (about the Commission), 156 complaints (aged care services), 30, 62-66 complaints education and information sessions, 72 compliance monitoring, 37-48 consultancies, 150-151 consumer engagement, 29, 32, 74 consumer experience reporting, 58 consumer information, 32 continuing professional development for quality assessors, 59, see also learning and development continuous improvement, 48 Coote, Andrea, 119 corporate governance, 102 corporate plan, 79 performance results, 84-98

corrections to previous annual reports, 156 courses and workshops, 70 COVID-19 Executive Steering Committee and Taskforce, 31 COVID-19 pandemic complaints related to, 30 impact of, 23, 39, 63, 145 response to, 31-33, 144 Senate Select Committee on, 148 Cullen, Matthew, 119

D decision making delegation, 58, 102 Dementia Australia, 58 Department of Health, 28, 31, 33, 34, 39, 56, 148 directions and notices of intention to give directions, 67 disability reporting, 146 diversity in the workplace, 145 Dunbar, Nicola, 107, 117

E education and engagement, 68-73 employees see staff enabling legislation, 108 enforceable regulatory action, 49-50 enterprise agreement, 137, 143 entity resource statement, 100 ethical standards, 15, 60 Evans, Sally, 119 Executive Directors, 107, 110-111, 113-114, 116 Executive Leadership Group, 103 exempt contracts, 152 external referrals, 67 external scrutiny, 147-148

F financial management, 99-100 financial statements, 157-200 aggregate assets and liabilities, 200 departmental restructuring, 199 financial performance, 170-177

206 agedcarequality.gov.au Annual Report 2019-20

References and appendices Alphabetical index

financial position, 178-187 funding, 188-191 independent auditor’s report, 159-160 managing uncertainties, 196-198 overview, 166-169 people and relationships, 192-195 flexible care services, 19 fraud control, 3, 106 Freedom of Information Act 1982, 152, 155 functions see role, responsibilities and functions

G governance, 102

H health and safety see work health and safety home services, 19, 25, 42-43 complaints handling, 62-66 COVID-19 protocols and oversight, 31-32 provider feedback, 60-61 regulatory activity, 53 Home Services Regulation Project, 25 human resources management, 121-146, see also staff

I Indigenous Australians see Aboriginal and Torres Strait Islander people individual flexibility agreements, 135, 137 infection control visits, 31 Information Publication Scheme, 155 information resources, 70-73, see also websites information sharing, 26, 56 information technology, 25 intelligence-led regulation, 56-57 internal audit arrangements, 104 international engagement, 33, 154 International Society for Quality in Health Care accreditation, 154

J Jobson, Emma, 107, 112 Jones, Dr Dorothy, 119 Judd, Dr Stephen, 119

K Kurrle, Professor Susan, 119 key management personnel, 137-138 key performance indicators see performance

L La Trobe University, Australian Institute for Primary Care and Ageing, 58 Laffan, Amy, 119 Leadership and Management Development Program, 143 leadership team, 107, 109-118 learning and development, 28, 59, 143 legislative changes, 16 legislative framework, 108 letter of transmittal, 3

M McCabe, Maree, 119 management and accountability, 103-156 media relations, 75 medication, inappropriate use of, 23 Minister, 12, 27, 85, 109, 119, 120, 137, 194 My Aged Care website, 28, 55

N National Aboriginal and Torres Strait Islander Flexible Aged Care program services, 19, 44, 60 National Leadership Group, 144 National Managers, 107, 117-118 non-compliance notices see regulatory action non-salary benefits, 143, 145 notices of intention to give directions, 67 notices to agree see regulatory action

207 agedcarequality.gov.au Annual Report 2019-20

References and appendices Alphabetical index

O Of fice of the Australian Information Commissioner decisions, 147 Older Persons Advocacy Network (OPAN), 23 Ombudsman, 147 organisational structure, 18, 107 outcome and program, 12 performance results, 81-83 overview of Commission, 12-18 own initiative resolution processes, 67

P parliamentary accountability, 148 Partners in Culturally Appropriate Aged Care, 72 pay see remuneration performance (Commission) see annual performance statements performance pay, 143 pharmacy outreach program, 23 physical and chemical restrictions, 22 Plan for Continuous Improvement (PCI), 48 Portfolio Budget Statements, 12, 79 portfolio membership, 12 priorities, 13, 17 corporate plan performance results, 84-98 program see outcome and program provider applications, 36 provider compliance, 34-35 provider feedback, 60 provider performance reporting and transparency, 28, 55, 57 Prudential Standards, 53-54 Public Governance, Performance and Accountability Act 2013, 3, 78, 103, 150 Public Service Act 1999, 15, 108 section 24(1) determinations, 137, 141 publications, 70-72 Aged Care Quality Bulletins, 38, 76 Regulatory Bulletins, 22-23, 55, 76

see also websites purchasing and procurement, 149-152 purpose, 13, 14

Q quality assessors, 59, 121, 141 training, 154 quality audits home services, 42-43 National Aboriginal and Torres Strait Islander Flexible Aged Care program services, 44 Quality Bulletins, 38, 76 Quality of Care Principles 2014, 22 Quality Standards see Aged Care Quality Standards questions on notice, 148

R recruitment, 141-142 referrals (intelligence reports), 56 Refundable Accommodation Deposits, 53-54 Regulator Performance Framework, 147 regulatory action, 49-50 Regulatory Bulletins, 22-23, 76 regulatory framework, 24, 147 Regulatory Integration Project, 25 Regulatory Risk Management Framework, 25 Regulatory Strategy, 24, 34-35 Reid, Shona, 107, 113 remuneration, 136-141 basis for determining remuneration, 141 non-salary benefits, 143, 145 other highly paid staff, 137, 139 performance pay, 143 salary ranges, 136, 143 senior executives, 137-138, 140 residential aged care services, 19 accreditation, 37-41 complaints handling, 62-66 COVID-19 protocols and oversight, 31-32 provider feedback, 60-61 prudential compliance, 53-54 quality assessors, 59 reconsideration of accreditation decisions, 41 resources see information resources

208 agedcarequality.gov.au Annual Report 2019-20

References and appendices Alphabetical index

restorative care, short-term, 45 review audits, 40-41 Risk and Audit Committee, 103-104 risk management, 25 risk-based approach, 17, 29, 31, 33, 34, 39, 41, 43, 47, 54, 56, 58, 88 performance results, 94-96 role, responsibilities and functions Commission, 12-16, 24 Commissioner, 109 leadership team, 108-118 Ross, Sally, 107, 118 Royal Commission into Aged Care Quality and Safety, 26, 27, 148 Rules see Aged Care Quality and Safety Commission Rules 2018

S Sadler, Paul, 119 safety see work health and safety Safety, Rehabilitation and Compensation Act 1988, 144 salaries see remuneration sanctions see regulatory action Senate Select Committee on COVID-19, 148 Senior Executive Service (SES) of ficers employment arrangements, 137 remuneration, 126-130, 136-137 see also key management personnel serious risk, 51 short-term restorative care, 45 site audits, 38-39 site visits, 31 small business participation in procurement, 152 Speed, Anthony, 107, 114 staff with carer responsibilities, 146 consultative processes, 143-144 diversity, 134, 145, 146 employment arrangements, 135, 143

gender balance, 121 health and safety, 144-145 learning and development, 143 numbers and workforce composition, 121-134 pay see remuneration recruitment, 141-142 retention and turnover, 121 work practices during COVID-19 pandemic, 33, 144 see also human resources management; Senior Executive Service (SES) of ficers staff engagement, 143-144 stakeholder engagement, 31, 33 stakeholders in aged care, 35 standards see Aged Care Quality Standards; ethical standards; Prudential Standards statutory decisions, 58 study assistance, 143

T timetables for improvement, 51

V values, 15 vision, 14

W websites Commission, 22-23, 32, 26, 27, 28, 29, 32, 39, 40, 55, 70, 71, 73, 74, 75 My Aged Care, 28, 55 work health and safety, 144-145 workers’ compensation, 144-145 Wroth, Dr Melanie, 107, 115, 119 Wunsch, Ann, 107, 116

Y Yates AM, Ian, 119 year in review, 20-33

209 agedcarequality.gov.au Annual Report 2019-20

List of requirements - non-corporate Commonwealth entities

References and appendices

PGPA Rule Reference Part of Report Description Requirement

17AD(g)

Letter of transmittal

17AI Page 3 A copy of the letter of transmittal signed

and dated by accountable authority on date final text approved, with statement that the report has been prepared in accordance with section 46 of the Act and any enabling legislation that specifies additional requirements in relation to the annual report.

Mandatory

17AD(h) Aids to access

17AJ(a) Pages 4 - 7 Table of contents. Mandatory

17AJ(b) Pages 204 - 208 Alphabetical index. Mandatory

17AJ(c) Pages 202 - 203 Glossary of abbreviations and acronyms. Mandatory

17AJ(d) Pages 209 - 217 List of requirements. Mandatory

17AJ(e) Page 2 Details of contact officer. Mandatory

17AJ(f) Page 2 Entity's website address. Mandatory

17AJ(g) Page 2 Electronic address of report. Mandatory

17AD(a) Review by accountable authority

17AD(a) Pages 8 - 10 A review by the accountable authority

of the entity.

Mandatory

17AD(b) Overview of the entity

17AE(1)(a)(i) Pages 12 - 16 A description of the role and functions of the entity. Mandatory

17AE(1)(a)(ii) Page 18 A description of the organisational

structure of the entity.

Mandatory

17AE(1)(a)(iii) Page 81 A description of the outcomes and

programmes administered by the entity. Mandatory

210 agedcarequality.gov.au Annual Report 2019-20

References and appendices List of requirements - non-corporate Commonwealth entities

PGPA Rule Reference Part of Report Description Requirement

17AE(1)(a)(iv) Page 84 A description of the purposes of the entity

as included in corporate plan.

Mandatory

17AE(1)(aa)(i) Page 18 Name of the accountable authority or each member of the accountable authority. Mandatory

17AE(1)(aa)(ii) Page 18 Position of the accountable authority or each member of the accountable authority. Mandatory

17AE(1)(aa)(iii) Page 18 Period as the accountable authority or member of the accountable authority within the reporting period.

Mandatory

17AE(1)(b) n/a An outline of the structure of the portfolio

of the entity.

Portfolio

departments - mandatory

17AE(2) n/a Where the outcomes and programs

administered by the entity differ from any Portfolio Budget Statement, Portfolio Additional Estimates Statement or other portfolio estimates statement that was prepared for the entity for the period, include details of variation and reasons for change.

If applicable, Mandatory

17AD(c) Report on the

Performance of the entity

Annual performance Statements

17AD(c)(i); 16F Pages 78 - 98 Annual performance statement in accordance with paragraph 39(1)(b) of the Act and section 16F of the Rule.

Mandatory

17AD(c)(ii) Report on Financial Performance

17AF(1)(a) Page 99 A discussion and analysis of the entity’s

financial performance.

Mandatory

17AF(1)(b) Page 100 A table summarising the total resources

and total payments of the entity.

Mandatory

211 agedcarequality.gov.au Annual Report 2019-20

PGPA Rule Reference Part of Report Description Requirement

17AF(2) n/a If there may be significant changes

in the financial results during or after the previous or current reporting period, information on those changes, including: the cause of any operating loss of the entity; how the entity has responded to the loss and the actions that have been taken in relation to the loss; and any matter or circumstances that it can reasonably be anticipated will have a significant impact on the entity’s future operation or financial results.

If applicable, Mandatory.

17AD(d) Management and

Accountability

Corporate Governance

17AG(2)(a) Page 3 Information on compliance with section

10 (fraud systems).

Mandatory

17AG(2)(b)(i) Page 3 A certification by accountable authority

that fraud risk assessments and fraud control plans have been prepared.

Mandatory

17AG(2)(b)(ii) Page 3 A certification by accountable authority

that appropriate mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the entity are in place.

Mandatory

17AG(2)(b)(iii) Page 3 A certification by accountable authority

that all reasonable measures have been taken to deal appropriately with fraud relating to the entity.

Mandatory

17AG(2)(c) Page 3 An outline of structures and processes

in place for the entity to implement principles and objectives of corporate governance.

Mandatory

17AG(2)(d) - (e) n/a A statement of significant issues reported

to Minister under paragraph 19(1)(e) of the Act that relates to non-compliance with Finance law and action taken to remedy non-compliance.

If applicable, Mandatory

References and appendices List of requirements - non-corporate Commonwealth entities

212 agedcarequality.gov.au Annual Report 2019-20

PGPA Rule Reference Part of Report Description Requirement

Audit Committee

17AG(2A)(a) Page 104 A direct electronic address of the charter

determining the functions of the entity’s audit committee.

Mandatory

17AG(2A)(b) Page 105 The name of each member of the entity’s

audit committee.

Mandatory

17AG(2A)(c) Page 105 The qualifications, knowledge, skills

or experience of each member of the entity’s audit committee.

Mandatory

17AG(2A)(d) Page 105 Information about the attendance of each

member of the entity’s audit committee at committee meetings.

Mandatory

17AG(2A)(e) Page 105 The remuneration of each member

of the entity’s audit committee.

Mandatory

External Scrutiny

17AG(3) Page 147 Information on the most significant

developments in external scrutiny and the entity's response to the scrutiny.

Mandatory

17AG(3)(a) Page 147 Information on judicial decisions and

decisions of administrative tribunals and by the Australian Information Commissioner that may have a significant effect on the operations of the entity.

If applicable, Mandatory

17AG(3)(b) Page 147 Information on any reports on operations

of the entity by the Auditor-General (other than report under section 43 of the Act), a Parliamentary Committee, or the Commonwealth Ombudsman.

If applicable, Mandatory

17AG(3)(c) n/a Information on any capability reviews

on the entity that were released during the period.

If applicable, Mandatory

References and appendices List of requirements - non-corporate Commonwealth entities

213 agedcarequality.gov.au Annual Report 2019-20

References and appendices List of requirements - non-corporate Commonwealth entities

PGPA Rule Reference Part of Report Description Requirement

Management of Human Resources

17AG(4)(a) Page 143 An assessment of the entity’s effectiveness

in managing and developing employees to achieve entity objectives.

Mandatory

17AG(4)(aa) Pages 123 - 125 Statistics on the entity’s employees on an ongoing and non-ongoing basis, including the following:

(a) statistics on full-time employees;

(b) statistics on part-time employees;

(c) statistics on gender;

(d) statistics on staff location.

Mandatory

17AG(4)(b) Pages 126 - 134 Statistics on the entity’s APS employees on an ongoing and non-ongoing basis; including the following:

Statistics on staffing classification level;

Statistics on full-time employees;

Statistics on part-time employees;

Statistics on gender;

Statistics on staff location;

Statistics on employees who identify as Indigenous.

Mandatory

17AG(4)(c) Pages 137, 143 Information on any enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999.

Mandatory

17AG(4)(c)(i) Page 135 Information on the number of SES

and non-SES employees covered by agreements etc identified in paragraph 17AG(4)(c).

Mandatory

17AG(4)(c)(ii) Page 136 The salary ranges available for APS

employees by classification level.

Mandatory

17AG(4)(c)(iii) Pages 143 - 145 A description of non-salary benefits provided to employees. Mandatory

214 agedcarequality.gov.au Annual Report 2019-20

References and appendices List of requirements - non-corporate Commonwealth entities

PGPA Rule Reference Part of Report Description Requirement

17AG(4)(d)(i) n/a Information on the number of employees

at each classification level who received performance pay.

If applicable, Mandatory

17AG(4)(d)(ii) n/a Information on aggregate amounts

of performance pay at each classification level.

If applicable, Mandatory

17AG(4)(d)(iii) n/a Information on the average amount of

performance payment, and range of such payments, at each classification level.

If applicable, Mandatory

17AG(4)(d)(iv) n/a Information on aggregate amount

of performance payments.

If applicable, Mandatory

Assets Management

17AG(5) Page 149 An assessment of effectiveness of assets

management where asset management is a significant part of the entity’s activities.

If applicable, Mandatory

Purchasing

17AG(6) Page 149 An assessment of entity performance

against the Commonwealth Procurement Rules

Mandatory

Consultants

17AG(7)(a) Page 150 A summary statement detailing the

number of new contracts engaging consultants entered into during the period; the total actual expenditure on all new consultancy contracts entered into during the period (inclusive of GST); the number of ongoing consultancy contracts that were entered into during a previous reporting period; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST).

Mandatory

17AG(7)(b) Page 150 A statement that

“During [reporting period], [specified number] new consultancy contracts were entered into involving total actual expenditure of $[specified million]. In addition, [specified number] ongoing consultancy contracts were active during the period, involving total actual expenditure of $[specified million]”.

215 agedcarequality.gov.au Annual Report 2019-20

PGPA Rule Reference Part of Report Description Requirement

17AG(7)(c) Page 150 A summary of the policies and procedures

for selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged.

Mandatory

17AG(7)(d) Page 151 A statement that

"Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website."

Mandatory

Australian National Audit Office Access Clauses

17AG(8) Page 152 If an entity entered into a contract with

a value of more than $100 000 (inclusive of GST) and the contract did not provide the Auditor-General with access to the contractor’s premises, the report must include the name of the contractor, purpose and value of the contract, and the reason why a clause allowing access was not included in the contract.

If applicable, Mandatory

Exempt contracts

17AG(9) n/a If an entity entered into a contract or there

is a standing offer with a value greater than $10 000 (inclusive of GST) which has been exempted from being published in AusTender because it would disclose exempt matters under the FOI Act, the annual report must include a statement that the contract or standing offer has been exempted, and the value of the contract or standing offer, to the extent that doing so does not disclose the exempt matters.

If applicable, Mandatory

References and appendices List of requirements - non-corporate Commonwealth entities

216 agedcarequality.gov.au Annual Report 2019-20

PGPA Rule Reference Part of Report Description Requirement

Small business

17AG(10)(a) Page 152 A statement that

“[Name of entity] supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website.”

Mandatory

17AG(10)(b) Page 152 An outline of the ways in which the

procurement practices of the entity support small and medium enterprises.

Mandatory

17AG(10)(c) n/a If the entity is considered by the

Department administered by the Finance Minister as material in nature - a statement that

“[Name of entity] recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website.”

If applicable, Mandatory

Financial Statements

17AD(e) Pages 157 - 200 Inclusion of the annual financial

statements in accordance with subsection 43(4) of the Act.

Mandatory

Executive Remuneration

17AD(da) Pages 138 - 141 Information about executive remuneration in accordance with Subdivision C of Division 3A of Part 2-3 of the Rule.

Mandatory

References and appendices List of requirements - non-corporate Commonwealth entities

217 agedcarequality.gov.au Annual Report 2019-20

PGPA Rule Reference Part of Report Description Requirement

17AD(f) Other Mandatory

Information

17AH(1)(a)(i) n/a If the entity conducted advertising

campaigns, a statement that

“During [reporting period], the [name of entity] conducted the following advertising campaigns: [name of advertising campaigns undertaken]. Further information on those advertising campaigns is available at [address of entity’s website] and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.”

If applicable, Mandatory

17AH(1)(a)(ii) Page 156 If the entity did not conduct advertising

campaigns, a statement to that effect. If applicable, Mandatory

17AH(1)(b) n/a A statement that

“Information on grants awarded by [name of entity] during [reporting period] is available at [address of entity’s website].”

If applicable, Mandatory

17AH(1)(c) Page 146 Outline of mechanisms of disability

reporting, including reference to website for further information.

Mandatory

17AH(1)(d) Page 155 Website reference to where the entity’s

Information Publication Scheme statement pursuant to Part II of FOI Act can be found.

Mandatory

17AH(1)(e) n/a Correction of material errors in previous

annual report.

If applicable, mandatory

17AH(2) Pages 144 - 145 Information required by other legislation. Mandatory

References and appendices List of requirements - non-corporate Commonwealth entities

218 agedcarequality.gov.au Annual Report 2019-20

References and appendices

Reference S52 Part of Report Description Requirement

(a) Pages 84 - 100 An assessment of the extent to which the

Commission’s operations during the period have contributed to the priorities set out in the annual operational plan for the period.

Mandatory

(b) Pages 84 - 100 Particulars of any variations of the annual

operational plan during the period.

Mandatory

(c) Pages 84 - 100 An evaluation of the Commission’s overall

performance during the period against the performance indicators set out in the annual operational plan for the period.

Mandatory

(d) Page 50 Information about sanctions imposed under

Part 7B for noncompliance with aged care responsibilities, including the nature of the noncompliance and the sanctions imposed.

Mandatory

Act requirements index

Index of annual reporting requirements of the Aged Care Quality and Safety Commission Act 2018

219 agedcarequality.gov.au Annual Report 2019-20

1800 951 822 agedcarequality.gov.au

220 agedcarequality.gov.au Annual Report 2019-20