Publications
Publications
Private Health Insurance Administration Council
Report of Operations 2007-08
Agency Overview (Continued)
PHIAC Secretariat
Qualifications of the Secretariat personnel include law, commerce, accounting, economics, statistics modelling, education, business management and information technology.
PHIAC ascribes to the Australian Public Sector Values and Code of Conduct and actively encourages its staff to maintain an appropriate balance between work and family responsibilities.
The PHIAC office is located at:
Suite 16, Kingston Warehouse
71 Leichhardt Street
Kingston ACT
Secretariat personnel report to the Chief Executive Officer.
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Mr Shaun GathChief Executive OfficerMr Gath was appointed Chief Executive Officer of PHIAC on 2 June 2008 for a term of five years. Prior to joining PHIAC, Mr Gath was a partner in a national law firm where he worked with Government and health sector clients, focussing on governance and regulatory issues. In his earlier career he worked as a ministerial adviser and later spent four years as general counsel to a major Commonwealth agency operating in the health sector. He has a BA (Hons) and an LLB (Hons) from the Australian National University and completed his LLM from the same institution in 2001. Mr Gath is a member of the Institute of Public Affairs, Australia and of the Australian Institute of Administrative Law and has published a number of articles in his areas of professional interest. Formerly he was ACT President and National Vice-President of the Australian Corporate Lawyers Association. He has held office on the Public Law Committee of the International Bar Association. |
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Mr Mark LottCouncil SecretaryMr Lott provides guidance to Council on a part-time basis as Council Secretary advising Council on appropriate administrative compliance with legislation. Mr Lott has over 10 years government experience in reporting and human resource management areas including both policy and advisory experience. He also has private sector management experience and holds a degree in Philosophy with a focus on ethics and logic.
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Mr Al Tilse, the former Council Secretary, commenced work for PHIAC in July 1998 and retired in February 2008.
Performance Appraisals
PHIAC has a structured performance appraisal and management system. The PHIAC corporate plan identifies PHIAC’s strategic directions and individual staff member’s performance agreements are developed from the requirements of the business plan which arises from the corporate plan.
Performance agreements and a joint appraisal system measure and evaluate staff performance and identify areas for professional development and training. This system aims to create a culture of autonomy and an environment in which individual merit is rewarded.
At the end of each financial year, individual staff members and their respective supervisor jointly assess performance. All staff participate in annual performance appraisals and can earn performance bonuses. PHIAC’s staff is appointed on individual performance-based contracts.
The Chief Executive Officer has a performance agreement with the Commissioner and the Council. The Council undertakes a performance assessment of the Chief Executive Officer annually. The Chief Executive Officer is appointed under terms and conditions determined by the Remuneration Tribunal.
Access and Equity
PHIAC’s employment policy ascribes to the principles of access and equity (AE) and selection on merit. Table 4 lists the number of staff in AE target groups who were employed by PHIAC during the year.
Table 4. Access and Equity target groups as at 30 June 2008
Occupational Group |
NESB |
ATSI |
PWD |
Women |
Total Staff |
|
Total |
6 |
- |
- |
13 |
25 |
Key:
NESB: Non-English Speaking Background
ATSI: Aboriginal and Torres Strait Islander
PWD: People with a Disability
In 2007–08 PHIAC allocated $110,905 to training courses, conferences and seminars for staff training and professional development. The details of the programs undertaken are set out in Table 5.
Table 5. Training courses, conferences and seminars
2007-08
Topic |
Provider |
Attendance |
|
Accounting, Modelling |
CPA Australia, National Tax & Accountants’ Association Ltd, Palisade Asia-Pacific Ltd, Seminars Australia, Successful Alliance, Department of Education, Employment and Workplace Relations and the Institute of Chartered Accountants in Australia |
7 |
|
Computer Training |
Acorn Training & Consulting, Excom Education |
2 |
|
Corporate Governance |
Acorn Training & Consulting, Australian Institute of Company Directors, University of Sydney, Australasian Compliance Institute, Australian Government Solicitors, Chartered Secretaries Australia |
10 |
|
Health and First Aid |
St Johns Ambulance, Nutrition Australia |
20 |
|
Industry Knowledge |
Australian Health Insurance Association Ltd,
International Association of Insurance
Supervisors, Catholic Health, Australian
Financial Review Conference, Institute of |
8 |
|
Professional Development |
Australian Government Solicitors, Australian Institute of Management, Rushworth Consultancy, Skilpath Seminars, Australian Graduate School of Management, Australian National University, Australian Public Service Commission, Clinton Communications, Institute of Public Administration Australia, Kaplan Higher Education, Korda Mentha, Monash College, Southern Cross University, Rosetta Consulting, Reception Plus, Acorn Training & Consulting, ACTED Australia, Chartered Secretaries Australia, Workplace Training Advisory Australia, Institute of Actuaries Australia |
19 |
During the financial year to 30 June 2008, professional advice and services were sought externally where it was determined it would not be cost effective for permanent staff to provide such expertise.
Details of professional fees of more than $5,000 are set out in Table 6.
Table 6. Professional fees over $5,000 - 2007-08
Project |
Professional Fees |
Total Cost |
|
Legal Fees |
DLA Phillips Fox, Blake Dawson, Attorney General’s Department |
$351,795 |
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Actuarial Fees |
Australian Government Actuary, KPMG Actuaries Pty Ltd, Trowbridge Deloitte Limited, Ernst & Young |
$135,372 |
|
Recruitment |
Recruitment Solutions, Hudson Global Resources, Talent Partners |
$84,952 |
|
Public Relations |
Phillips Group, Media Monitors Pty Ltd |
$39,263 |
|
IT Support |
Platinum Management Consulting Pty Ltd, Infinite Networks, Seedling Business Development |
$29,364 |
|
Audit Fees |
Australian National Audit Office |
$12,200 |
|
Professional Development |
Blake Dawson |
$11,874 |
|
Fund Review Support |
Australian Prudential Regulation Authority |
$6,343 |
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Total |
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$671,163 |
Indemnities and Insurance Premiums for Officers
PHIAC has an insurance policy with Comcover for the indemnification of its directors and officers. The cost of the premium for this insurance in 2007–08 was $13,944. The policy is consistent with sections 27M and 27N of the CAC Act.
PHIAC Financial Statements
PHIAC reviews its budget annually to ensure that it maintains a balance between sufficient reserves to undertake its functions in accordance with the PHI Act and other legislation, while minimising the cost to PHIs.
The Council has formed the view that it is necessary for the regulator to have sufficient funds to allow it to take any necessary regulatory action in a timely manner. PHIAC continues to believe that its policy with respect to its reserves is appropriate.
PHIAC notes that its budgeted levy for 2007–08 of $4.435 million remains below 0.05% of contribution income. The amount of the levy has remained at the same level for the last four years.
Financial Statements of the Council’s operations are included with this report. The Council follows Schedule 1 of the CAC Act (Financial Statement 2007–08), which requires compliance with Statements of Accounting Concepts, Australian Accounting Standards and Accounting Interpretations, Accounting Guidance Notes, and other mandatory professional reporting requirements.
Major Investing and Financial Activities
PHIAC invests any excess funds in interest bearing accounts, in accordance with the requirements of the Department of Finance and Deregulation. All operational accounts that are currently utilised by PHIAC are compliant with section 18 of the CAC Act and section 39 of the Financial Management and Accountability Act 1997. PHIAC investment accounts are also compliant with section 18(3) of the CAC Act relating to ‘money on deposit with a bank’.
PHIAC remains fully compliant with Australian Equivalents to International Financial Reporting Standards (AEIFRS).