Chapter 8: Organisational capability

Abbreviations

A list of the abbreviations used in this report is available in the Glossary

Record keeping

The maintenance of effective record keeping systems is a key part of overall organisational capability, as well as an important component in an agency’s governance arrangements. Effective record keeping assists agencies in achieving their business goals by ensuring the accessibility of required information and allowing employees to meet their obligations of accountability to the Government and the community. It allows agencies to demonstrate that due process has been followed in actions and decisions.

Record keeping has attracted substantial attention in recent years. Although there has been an increase in the transparency of record keeping, a number of reports have raised concerns about its quantity and quality, notably from the ANAO. Record keeping has also been raised in the context of specific cases of concern such as the Magnetic Resonance Imaging Services case¹⁵ and A Certain Maritime Incident.¹⁶ In part, this increased attention has arisen because record keeping in the APS has been affected by greater public scrutiny through administrative law reform and parliamentary oversight over the past few decades. However, it also reflects a greater emphasis on achieving results.

Last year’s State of the Service report noted that although administrative law reforms such as the Freedom of Information Act 1982, have generally led to improvements in public administration, there is a risk that these reforms may inhibit formal record keeping. The Ombudsman has undertaken a review of departments’ handling of freedom of information applications this year, with the results reported in Chapter 11.The Commission’s publication, Supporting Ministers, Upholding the Values, released in March 2006, provides a range of good practice suggestions as to how record keeping should be handled in public servants’ dealings with Ministers’ offices.¹⁷

Technology has also had a major impact on record keeping practices. The ANAO has previously identified limited controls over electronic records as a significant risk in the non-capture and unauthorised disposal of records.¹⁸ Electronic records that need to be captured effectively include important email messages, databases containing case records with long-term value, and records of online business.¹⁹ The ANAO recently published its third audit of record keeping, Recordkeeping including the Management of Electronic Records.²⁰ The findings of the audit, which focused on record keeping practices in three major agencies, were similar to its previous two audits. The audit noted that electronic environments pose particular problems for adequate record keeping, but that this should not impinge upon the obligation of the APS to effectively maintain records. The report indicated that work was required in each of the agencies examined to enable them to fully meet their record keeping responsibilities.

Based upon the findings of all three audits, the ANAO provided the following recommendations to assist organisations to meet their record keeping responsibilities: recognise record keeping as an integral part of ‘doing business’; undertake a record keeping needs analysis; develop medium to long term strategies to deal with increasing volumes of electronic records; ensure that policies address all systems, both paper-based and electronic; determine the information that needs to be created within each major area of activity; and supplement strategic and policy frameworks with ongoing training and advice to employees.

Another influence on record keeping, identified by the National Archives of Australia, is an increasing reliance on outsourcing, and contractors or consultants. This can have implications for corporate memory and mean that the organisation must depend more heavily on recorded information.²¹

Poor record keeping is also routinely raised by the Ombudsman as an impediment to the proper handling of complaints by members of the public (see Chapter 11 and previous State of the Service reports).

Last year, the Palmer Inquiry ²² and the Comrie Inquiry ²³ raised concerns about the integrity of the then DIMIA’s systems and processes, including systems for record keeping.

In response to the issues raised by Palmer and Comrie, DIMIA sought the NAA’s assistance in reviewing its record management training and practices. The NAA’s report, Recordkeeping in DIMIA: A Strategic Review,²⁴ recommended that the department build systematic record keeping into business processes and systems. DIMA’s response to the NAA’s recommendations was outlined, among other initiatives, in 12 Months after Palmer: On the Move to Improve.²⁵ The DIMA Plan 2006–07 ²⁶ also has a focus on improving information management.

DIMA’s experience, although based on its own particular circumstances, demonstrates what can go wrong when record keeping fails within agencies. It is likely that the issues raised are experienced to a greater or lesser degree across the APS, particularly as they relate to managing records in an electronic environment.

The importance of effective information management was highlighted in work prepared by the Commission for the Public Service Commissioners’ Conference, which drew together views across jurisdictions and from the relevant literature on the early detection of unhealthy symptoms in underperforming agencies. The review highlighted effective information management and good record keeping as one of the signs of a healthy agency. Conversely ineffective information management could be an early warning sign of an underperforming agency.

Agency measures to improve record keeping

Based on both the State of the Service surveys, it appears that many agencies are making record keepinga high priority. Almost all APS agencies took some measures to improve record keeping during 2005–06(90%). The level of activity increased with agency size, with all large agencies having adopted at least one measure.

The most common measure was a review or implementation of systems to support record keeping (see Figure 8.4). Measures involving staff training and reviews of record keeping policies and procedures were also common.

The review of record keeping capability of line-of-business systems and the introduction of a best practice guide to record keeping were less common, but were being developed in a substantial proportion of agencies.

Figure 8.4: Specific agency measures to improve record keeping, 2005–06

Source: Agency survey

Around one-fifth of agencies indicated that they had implemented measures other than those included in the agency survey. These included educational strategies, conformance reporting, intranet news items and dedicated record keeping project officers.

Assessing the effectiveness of this level of agency activity is more difficult. Employees are generally supportive of the general commitment of their agency to record keeping, with the large majority believing that their agency considers good record keeping practices to be very important (87%). This figure is the same as last year, but slightly higher than the result in 2002–03 (84%).There was generally high agreement with this question across large agencies, ranging from 72% to 97%.

Employees were less positive, however, about whether, in the last 12 months, record keeping practices in their agency had generally improved—45% of employees agreed and 10% disagreed. Many employees did not appear able to make a judgement, with 36% neither agreeing nor disagreeing. Agreement within large agencies varied from 18% to 59%. It seems that many of the initiatives undertaken by agencies have not yet had a real impact on employees on the ground, particularly in small agencies where employees are generally less positive about their agency’s efforts.

Employees inside the ACT were generally less positive than those outside the ACT across most record keeping issues, possibly reflecting differences in the nature of work performed by these employees. There are also continuing differences between EL and APS 1–6 employees. In particular EL employees were almost twice as likely to disagree (16%) that agency record keeping practices had generally improved than APS level employees (9%).

Communicating record keeping responsibilities

In reviewing DIMA’s record keeping practices, the NAA placed a strong emphasis on the provision of adequate training to employees, and encouraging employees to take their record keeping obligations seriously.

Agencies have put in place a range of measures to make employees aware of their responsibilities in relation to record keeping. The most commonly used measure was placing information on the Intranet. Circulars, operating instructions and outlining record keeping responsibilities to new staff as part of formal induction were also widely used. Around two-thirds of agencies had staff attend seminars and training provided by the NAA. Compliance assessments (i.e. audits) and information in Chief Executive’s Instructions were used by just over half of agencies. All measures were less used by small agencies than other agencies (see Figure 8.5).

Figure 8.5: Agency measures to ensure employees are aware of their record keeping by agency size, 2005–06

Source: Agency survey

Consistent with the high level of agency activity, the large majority of employees believed that they receive appropriate training and/or have access to information that enables them to meet their record keeping responsibilities. There was a higher level of agreement (72%) than last year (67%), with agreement showing a generally upward trend since 2003.

In line with results for the importance agencies place on record keeping, employees from inside the ACT and from small agencies were less likely to agree. This is a similar pattern to previous years.

Despite the generally good results overall, agreement within large agencies ranged widely from 42% to 83%. The agencies with agreement rates significantly above the APS average were ABS, AGD, CRS and Centrelink.

Most employees (75%) believed that their agency provides adequate equipment, facilities and/or storage to enable them to meet their record keeping responsibilities—results were similar to last year, although the level of disagreement was down slightly. Once again, those outside the ACT were more likely to agree than those inside the ACT. Agreement across large agencies ranged from 56% to 92%.

Employees were generally very positive about their own commitment to, and understanding of, record keeping. The vast majority agreed (90%) that they understand their responsibilities in relation to creating and maintaining records, although those from small agencies were less likely to agree. There was generally high agreement with this question across large agencies, with results ranging from 59% to 95%.

The majority also agreed (80%) that an important aspect of their job is meeting their record keeping responsibilities. Those from small agencies were again less likely to agree. Agreement across large agencies ranged from 75% to 96%.

Despite these positive results, employees seem to be struggling to find enough time to do their record keeping. Just over half of employees (59%) agreed that, considering their work demands, they have enough time to meet their record keeping responsibilities (22% disagreed). Agreement across large agencies ranged from 41% to 72%.This is consistent with the concern identified by the NAA that the pace of change and demands made of individuals in modern government puts great pressure on the capacity of people to make good records. The NAA has stressed that these pressures make it all the more importantthat good, easy-to-use systems are in place to help people achieve essential record keeping.²⁷

Classification again had a significant relationship to views about record keeping, with APS level employees showing higher levels of agreement than other employees for most items. The clearest difference related to whether, considering their work demands, employees feel they have enough time to meet their record keeping responsibilities. Sixty-four per cent of APS level, 41% of EL and 34% of SES agreed.

The high level of activity in relation to record keeping, and generally positive views about record keeping, need to be tempered somewhat by the reality of the deficiencies in record keeping identified by the ANAO, Palmer and Comrie and the Ombudsman. Although the understanding of employees of the importance of record keeping is encouraging, it needs to be translated into more effective procedures on a day-to-day basis. In this regard, the NAA’s recommendations to DIMA to integrate record keeping as apart of routine operations should have resonance for all APS agencies.

Electronic Business Systems (EBS) for record storage

The growing use of electronic records has been a major challenge for agencies’ record keeping systems. Agency survey results this year confirm that this is an area which many agencies are just beginning to address.

Table 8.3 shows that the use of a number of measures to deal effectively with electronic records are not yet widespread across APS agencies, with only approximately one third of agencies using each of the listed elements in their electronic business systems. Levels of interest are increasing with significant proportions of agencies reporting that they were developing each initiative.

A digital preservation plan was the least commonly used initiative. However, almost half of agencies had this plan in development.

Table 8.3: Elements of agency’s electronic business systems, 2005–06
	Yes %	Being developed %	No %
Formal mechanisms in place to ensure that record keeping requirements are addressed in the design and management of your agency’s electronic business systems	37	40	20
The use of a records disposal authority²⁸ to manage data as records within the agency’s electronic business systems	37	43	20
The use of a taxonomy²⁹ to manage data as record within the agency’s electronic business systems	35	30	35
The use of a thesaurus³⁰ to manage data as record within the agency’s electronic business systems	32	31	36
A digital preservation plan to ensure that corporate data of long term or ongoing value remains accessible	18	45	37
Other	2	7	27
Source: Agency survey. Note figures may not total 100% as some agencies did not provide responses to all items

In contrast to other record keeping policies, on average, medium-sized agencies were more likely to have these elements of their electronic business system currently in place, followed by small and large agencies.

Small (43%) and medium-sized agencies (46%) were far more likely than large agencies (17%) to have formal mechanisms in place to ensure that record keeping requirements are addressed in the design and management of their agency’s electronic business systems. However, the majority of large agencies (61%) had these mechanisms in development.

Reflecting the early stage that many agencies are at in dealing with electronic records, most agencies still use traditional forms of storage of corporate emails as the official corporate record, with by far the most common method being to print and file into registered paper correspondence files (93% of agencies).

The next most common methods were to save into personal email folders (65%) and save into shared drives (54%). Other methods used by less than half of agencies included saving into an email storage or email archiving system (39%), saving into personal drives (37%), and saving into a corporate Electronic Document and Records Management (EDRM) system (35%). The heavy concentration on printing off emails and saving on personal email folders is of concern, particularly given the warnings by the ANAO of the risk of the non-capture of electronic records.

Record keeping, both at an organisational and an individual staff level is clearly an area where many agencies need to improve their capability. With this in mind, MAC is undertaking a project on effective record keeping designed to enhance the understanding, capability and motivation of staff to make appropriate records. The MAC report, which will consolidate existing material and ensure that key messages and recommendations are practical and can be readily understood and applied by employees with record keeping responsibilities, is expected to be released in early 2007.

ANAO, Magnetic Resonance Imaging Services—Effectiveness and Probity of the Policy Development Process and Implementation, Performance Audit No. 42, May 2000, <http://www.anao.gov.au>
Senate Select Committee on a Certain Maritime Incident, A Certain Maritime Incident, October 2002, <http://www.senate.aph.gov.au>
Australian Public Service Commission, Supporting Ministers, Upholding the Values: a good practice guide, Commonwealth of Australia, Canberra, <http://www.apsc.gov.au/publications06/supportingministers.pdf>
ANAO, Recordkeeping in Large Commonwealth Organisations, Report No.7, September 2003, <http://www.anao.gov.au>
NAA, Recordkeeping: a new approach, <http://www.naa.gov.au/recordkeeping/overview/new_approach.html>
ANAO, Recordkeeping including the Management of Electronic Records, Audit Report No. 6, October 2006. <http://www.anao.gov.au> This audit was published late in the production cycle of the State of the Service Report 2005–06 and will be discussed in further detail in next year’s report.
NAA, Recordkeeping: a new approach, <http://www.naa.gov.au/recordkeeping/overview/new_approach.html>
M.J. Palmer, Inquiry into the Circumstances of the Immigration Detention of Cornelia Rau: Report, July 2005, <http://www.minister.immi.gov.au>
Commonwealth Ombudsman, Inquiry into the Circumstances of the Vivian Alvarez Matter, (Report by the Commonwealth Ombudsman of an inquiry undertaken by Mr Neil Comrie), September 2005, <http://www.ombudsman.gov.au>
NAA, Recordkeeping in DIMIA: A Strategic Review, February 2006, <http://www.immi.gov.au/about/department/perf-progress/dimaimprovements/>
DIMA, 12 Months After Palmer: On the Move to Improve, September 2006, <http://www.immi.gov.au/media/publications/department/_ pdf/palmer-progress-a5-booklet-web.pdf>
DIMA, The DIMA Plan 2006–07, July 2006, <http://www.immi.gov.au/about/department/dima-plan/dima-plan.pdf>
NAA, Recordkeeping: a new approach, <http://www.naa.gov.au/recordkeeping/overview/new_approach.html>
A legal document issued by the NAA to authorise the disposal of Commonwealth records in accordance with the Archives Act 1983.
A classification system applied to records in a particular business information system, within a particular organisational setting. It is a hierarchical system for classifying records based on the business activities that generate the records.
An alphabetical presentation of a controlled list of terms, linked together by semantic, hierarchical, associative or equivalence relationships. Such a tool acts as a guide to allocate classification terms to individual records.

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