Embedding the APS Values: Case studies and other supporting material

Please note: These documents are for reference purposes only and are no longer considered by the APS Commission to be current. They may contain good practice advice and/or advice on the transitional arrangements between the 1922 and 1999 Public Service Acts.

globe Useful references

Case study 16:
Insolvency and Trustee Service Australia:
Personal insolvency national standards and best practice statements

Background

The Insolvency and Trustee Service Australia (ITSA) is an executive agency within the Attorney-General's portfolio with responsibility for administering and regulating the personal insolvency system. One of ITSA's responsibilities is to administer bankrupt estates on behalf of the Official Trustee. Another is to regulate private bankruptcy trustees and the Official Trustee. These two responsibilities are managed and fulfilled independently of each other.

In 1998 ITSA and the professional body representing private bankruptcy trustees, the Insolvency Practitioners Association of Australia (IPAA) jointly developed national standards, which are known as the personal insolvency national standards (PINS). They are reviewed periodically (being reviewed in 2003).

ITSA has also developed best practice statements (BPS), which provide guidance to ITSA staff on common activities relating to the administration of bankruptcy. They were introduced as previous manuals had proved to be unwieldy and not easily updated.

PINS are a good illustration of an agency working in partnership with industry to develop national standards of administration which embrace ethical decision making and accountability applying beyond the public service. The development of internal BPS supports the arrangements.

Description

Personal insolvency national standards

The PINS apply to both private sector trustees and ITSA. They aim to:

ensure that personal insolvency administrations are maintained at a consistently high level by the Official Trustee and registered trustees
ensure that a level playing field applies to the regulation of all trustees, both the Official Trustee and registered trustees, by applying agreed national standards
increase the confidence of clients and stakeholders as to the level of consistency in the application of bankruptcy law and practice
encourage the identification and application of best practice in estate administration to the work conducted by all trustees.

There are thirteen individual 'standards' and each contains the following common elements: timeliness, decision making, documentation and ethical practices and conduct.

The PINS provide the minimum standard for good bankruptcy administration practice. They are applied by ITSA's Bankruptcy Regulation investigators when assessing performance of bankruptcy trustees and give private bankruptcy trustees an understanding of the expectations under ITSA's bankruptcy regulation annual inspection program when a sample of each private trustees' administrations are inspected.

Private trustees who either continually fail to comply with the accepted standards, or whose failure to comply has a serious impact on an administration, can expect to be called to explain before a disciplinary committee established under the Bankruptcy Act 1966 (the Act) by the Inspector-General in Bankruptcy to determine whether their registration should be cancelled or conditions imposed upon their entitlement to practise.

The fact that the PINS are not embodied in the Act or Regulations does not detract from their importance as the accepted industry standard.

Best practice statements

BPS have been developed by ITSA as guides to promote greater clarity and consistency in the process of administering bankruptcies. They have not been designed as prescriptive processes but provide a framework for better decision making, including among other things, helping to ensure that reasons for decisions are given and recorded properly.

The BPS range across practice issues such as investigating the circumstances of the bankruptcy and potentially available assets, assessing income and contributions payable by the bankrupt, dealing with and realising assets, the impact of the GST on bankruptcies and payment of fees and charges from the estate.

The BPS are used by managers in the supervision of case officers. The BPS are not overly prescriptive and are directed largely at the process aspects of bankruptcy administration, thus providing flexibility for case officers to decide on the most efficient and cost effective approach to a particular situation.

The BPS assist ITSA employees to deliver services fairly, effectively and ethically to their clients.

Key APS Values

The APS is openly accountable for its actions, within the framework of Ministerial responsibility to the Government, the Parliament and the Australian public. (s. 10(1)(e) of the PS Act)

The APS delivers services fairly, effectively, impartially and courteously to the Australian public and is sensitive to the diversity of the Australian public. (s. 10(1)(g) of the PS Act)

The APS is apolitical, performing its functions in an impartial and professional manner. (s. 10(1)(a) of the PS Act)

The APS focuses on achieving results and managing performance. (s. 10(1)(k) of the PS Act)

The APS has the highest ethical standards. (s. 10(1)(d) of the PS Act)

For more information please contact:

PETER LOWE
PHONE 02 6270 3404
peter.lowe@itsa.gov.au