PART C - AGENCY BUDGET STATEMENTS -DEPARTMENT OF VETERANS' AFFAIRS

SECTION 2 - OUTCOMES AND OUTPUTS INFORMATION

RESOURCING FOR OUTCOMES AND OUTPUTS

Department of Veterans' Affairs	$'000
Total Price of Outputs	274,806
Dept Outcomes Appropriation	259,755
Total Administered Appropriation	9,697,419

	$'000			$'000
Outcome 1 - Eligible veterans, their war widows and widowers and dependants have access to appropriate Compensation and income support in recognition of the effects of war service.			Output 1.1 - Deliver a means tested income support pension and allowances to veterans and dependants.
Total Price	109,284		Total Price	36,390
Departmental Outputs Appropriation	107,620
Administered Appropriation	5,654,453		Output 1.2 - Deliver compensation pensions, Allowances and special purpose assistance to eligible veterans and war widows and widowers.
			Total Price	43,247
			Output 1.3 - Independent merits review by the Veterans' Review Board (VRB) of certain primary decisions made by delegates of the Repatriation Commission on claims for pension.
			Total Price	8,778
			Output 1.4 - Provide financial assistance through the Defence Service Home Loans Scheme.
			Total Price .	2,473
			Output Group 6 - Provision of services to the Parliament, Ministerial services and the development of policy and internal operating regulations - attributed to Outcome 1.
			Total Price	18,396
Outcome 2 - Eligible veterans, their war widows and widowers and dependants have access to health and other care services that promote and maintain self-sufficiency wellbeing and quality of life.			Output 2.1 - Arrangements for delivery of services.
			Total Price	75,308
Total Price	97,400
Departmental Outputs Appropriation	96,979		Output 2.2 - Provide counselling and referral services for veterans and their families.
Administered Appropriation	4,013,728
			Total Price	9,470
			Output Group 6 - Provision of services to the Parliament, Ministerial services and the development of policy and internal operating regulations - attributed to Outcome 2.
			Total Price	12,622
Outcome 3 - The service and sacrifice of the men and women who served Australia and its allies in wars, conflicts and peace operations are acknowledged and commemorated.			Output 3.1 - Implement commemorative initiatives and provide support and funding to acknowledge Australia's servicemen and women from wars, Conflicts and peace operations.
Total Price	9,106		Total Price	4,735
Departmental Outputs Appropriation	9,060
Administered Appropriations	23,216		Output 3.2 - Maintenance, construction and Refurbishment of war graves, war cemeteries, gardens of remembrance and post war commemorations.Provide and maintain national memorials overseas. Process claims for, and provision of, official post war Commemorations.
			Total Price	4,188
			Output Group 6 - Provision of services to the Parliament, Ministerial services and the development of policy and internal operating regulations - attributed to Outcome 3.
			Total Price	183
Outcome 4 - The needs of the veteran community are identified, they are well informed of community and specific services and they are able to access such services.			Output 4.1 - Provide communication and community support and development services to the provider and veteran community including veterans local support groups.
Total Price	46,306		Total Price	45,168
Departmental Outputs Appropriation	46,096
Administered Appropriations	6,022		Output Group 6 - Provision of services to the Parliament, Ministerial services and the development of policy and internal operating regulations - attributed to Outcome 4.
			Total Price	1,138
Outcome 5 - Current and former members of the Australian Defence Force who suffer an injury or disease which is causally related to employment in the ADF are provided with compensation and rehabilitation benefits and services.			Output 5.1 - Provide incapacity payments, non-economic lump sums for injuries resulting in permanent impairment and payments to dependants of deceased employees.
Total Price (Section 31 Revenue)	12,710		Total Price	7,844
Departmental Outputs Appropriation	0
Administered Appropriations	0		Output 5.2 - Arrange for the delivery of medical, Rehabilitation and other related services.
			Total Price	3,218
			Output 5.3 - Administer Individual Merits Review.
			Total Price	426
			Output 5.4 - Deliver advisory and information services.
			Total Price	1,222

Note: Output Group 6 relates to the provision of services to the Commission, the Minister and the Parliament in the development of new policy, ministerial correspondence, the preparation of the Budget and annual report, and programme guidance for the management or contracting of DVA services.

As Output Group 6 resources are utilised across Outcomes 1 to 4, they have been attributed to those outcomes and are shown in the table above for transparency

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CHANGES TO OUTCOMES AND OUTPUTS

There has been a change to the description for the Department's Outcome 3, Output 3.1 and Output 3.2.

Details of both the previous and new wording is set out below with the relevant changes highlighted.

Previous wording for Outcome 3	NEW WORDING FOR OUTCOME 3
The achievements and sacrifice of those men and women who served Australia and its allies in war, defence and peacekeeping services are acknowledged and commemorated.	The service and sacrifice of the men and women who served Australia and its allies in wars, conflicts and peace operations are acknowledged and commemorated.
Previous wording for Outcome 3.1	NEW WORDING FOR OUTPUT 3.1
Provide funding and support for commemorative activities and grants in recognition of Australia's veterans, and promote community awareness about their service.	Implement commemorative initiatives and provide support and funding to acknowledge Australia's servicemen and women from wars, conflicts and peace operations.
Previous wording for Outcome 3.2	NEW WORDING FOR OUTPUT 3.2
Maintenance, construction and refurbishment of war cemeteries, gardens of remembrance, post war commemorations and construction of overseas memorials. Process claims for post war commemorations.	Maintenance, construction and refurbishment of war graves, war cemeteries, gardens of remembrance and post war commemorations. Provide and maintain national memorials overseas. Process claims for, and provision of, official post war commemorations.

The changes have been made so that the description more accurately reflects current terminology and practices in relation to the delivery of services under this Outcome.

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OUTPUT COST ATTRIBUTION

Outputs are comprised of a range of Activities. Activities are defined as units of work or tasks that result in a specified product or that have a particular purpose (eg new claims processing - service pensions).

Expenses are charged to one or more cost centres as they are incurred. The department allocates expenses in each cost centre to a range of Activities according to the estimated extent to which individual cost centres contribute to each Activity.

The cost attribution model does not take account of the Defence Service Homes Insurance Scheme's operations as they are not funded as an output.

TRENDS IN RESOURCING OVER FIVE YEARS

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TRENDS IN RESOURCING ACROSS OUTCOMES

Note: Comparison is of 2002-03 Estimated Actual to 2003-04 Budget Estimate

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OUTCOME 1

Eligible veterans, their war widows and widowers and dependants have access to appropriate compensation and income support in recognition of the effects of war service.

DESCRIPTION

The Department will continue to work with the veteran community to ensure that easily understandable and timely information about compensation and income support is readily available to those entitled and that veterans, widows and their organisations are supported in the claims process. The Department will work to ensure fair and just determination of claims for benefits and will facilitate access to appeal. The Department will continue to work with the veteran community and the Repatriation Commission to ensure the compensation and income support needs of veterans and their dependants are met through appropriate programmes and that such programmes are soundly administered. The Department will ensure that pensions and allowances are adjusted in line with legislation.

The Department will continue to recognise the impact of housing circumstances on the general health and well-being of the veteran community, and particularly the elderly through Defence Service Homes and targeted housing related projects.

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MEASURES AFFECTING OUTCOME 1

Title: Holocaust payments - extension of means test exemptions

Outcome	Outputs Affected	Appropriations	2003-04 $m	2004-05 $m	2005-06 $m	2006-07 $m
1	1.1	Departmental Impact	0.000	0.000	0.000	0.000
1	1.1	Administered Impact	0.015	0.016	0.018	0.019
		Measure Total	0.015	0.016	0.018	0.019

Explanation
The Government will provide $0.6 million over four years to extend the exemption from social security income testing to all restitution payments made to Holocaust victims regardless of the payment's country of origin. Previously only payments from German and Austrian Governments were income test exempt. The measure will ensure consistent treatment, under the social security income test, of all income support recipients who receive restitution payments in relation to Nazi persecution.

Title: Enhanced compliance programme

Outcome	Outputs Affected	Appropriations	2003-04 $m	2004-05 $m	2005-06 $m	2006-07 $m
1	1.1	Departmental Impact	0.935	1.357	1.207	1.233
1	1.1	Administered Impact	0.000	-2.679	-6.073	-8.361
		Measure Total	0.935	-1.322	-4.866	-7.128

Explanation
The Government will provide funding of $4.7 million over four years to introduce an enhanced compliance programme to review the circumstances of income support pensioners in the Veterans' Affairs portfolio who have not recently been reviewed. The programme is aimed at updating client details to ensure that these clients are receiving the correct level of benefit. The reviews are anticipated to result in changes to the payments of a significant number of pensioners, both upwards and downwards.

The measure is expected to result in savings commencing in 2004-05 of $17.2 million over three years.

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Table 2.1.1 - TOTAL RESOURCES FOR PLANNED OUTCOME 1

Outcome 1 - Eligible veterans, their war widows and widowers and dependants have access to appropriate compensation and income support in recognition of the effects of war service.
Administered Expenses (including third party outputs)		Estimated Actual 2002-03 $'000		Budget 2003-04 $'000
Special Appropriations
Papua New Guinea (Members of the Forces Benefits) Act 1957
Papua New Guinea Pensions		118		120
Veterans' Entitlements Act 1986
Disability Pensions and allowances for veterans and their dependants		1,247,295		1,312,898
Pensions and allowances for war and defence widows and other dependants		1,371,853		1,445,070
Income Support Pensions		2,796,696		2,815,632
Loss of earnings allowances		366		282
Funeral benefits		6,498		6,941
Telephone allowance		20,350		20,525
Recreation transport allowance		4,931		5,356
Payments to former Prisoners of War of the Japanese and their widows		1,000		150
Compensation (Japanese Internment) Act 2001		100		0
Payments to former detainees
Defence Service Homes Act 1918
Interest subsidy to be paid to Westpac		10,800		9,800
Total Special Appropriations		5,460,007		5,616,774
Annual Appropriations Bill 1
Payments under section 33 of the Financial Management and Accountability Act 1997		56		34
Medical examinations, fares and expenses of veterans and dependants		14,798		15,703
Payments under subsections 3(6) and (8) of the Repatriation Amendment Act 1982 and similar payments		400		158
Compensation for detriment caused by defective administration		500		60
Veterans' children education scheme		19,878		20,724
Vehicle assistance scheme		911		1,000
Total Appropriation Bill 1		36,543		37,679
Annual Appropriations Bill 2		0		0
Total Appropriation Bill 2		0		0
Total Annual Appropriations		36,543		37,679
Total Administered Expenses		5,496,550		5,654,453
Price of Departmental Outputs
Output Group 1.1 - Deliver a means tested income support pension and allowances to veterans and dependants.		35,563		36,390
Output Group 1.2 - Deliver compensation pensions, allowances and special purpose assistance to eligible veterans and war widows and widowers.		42,715		43,247
Output Group 1.3 - Independent merits review by Veterans' Review Board (VRB) of certain primary decisions made by delegates of the Repatriation Commission on claims for pension.		8,642		8,778
Output Group 1.4 - Provide financial assistance through the Defence Service Home Loans Scheme.		2,441		2,473
Attribution of Output Group 6		22,385		18,396
Total Price of Outputs		111,746		109,284
Revenue from Government (Appropriation) for Departmental Outputs		107,481		107,620
Revenue from other Sources		4,265		1,664
Total Price of Outputs		111,746		109,284
TOTAL FOR OUTCOME 1 (Total Price of Outputs and Administered Appropriations)1		5,608,296		5,763,737
1 This total does not include Departmental Special Account outflows
From Special Accounts (estimated payments from Special Account balances)
Defence Service Homes Insurance (Defence Service Homes Act 1918)		28,151		26,930
Total Departmental Special Account outflows		28,151		26,930
Average Staffing Level		958		949

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Refer also to Table 1.2.1, p21(Comparison of Estimated Actual 2002-03 to Budget 2003-04)

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CONTRIBUTIONS OF OUTPUTS TO OUTCOME 1

The delivery by the Department of Veterans' Affairs of compensation and income support pensions and associated benefits is in accordance with the Government's commitment to provide financial compensation and income support to veterans and their dependants on an equitable basis.

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PERFORMANCE INFORMATION FOR OUTCOME 1

Table 2.1.2 - Performance Information and Planned Level of Achievement 2003-04

Effectiveness - overall achievement of the Outcome
Veteran satisfaction with the efficiency and effectiveness of the processing of claims, and their access to information about their entitlements and reviews.
Performance information for administered items
Quality: High level of veteran satisfaction with the fairness, efficiency and effectiveness of the Department and the Veterans' Review Board. Quantity: Is determined by demand for claims for, and review of, pensions in accordance with the legislation.
Performance information for Output Group 1 (Income support, compensation and special purpose assistance for veterans and their dependants)
Output 1.1 - Deliver a means-tested income support pension and other allowances to veterans and dependants.	Quantity: 363,940 income support beneficiaries Timeliness: Target of 32 days to process a new claim Timeliness: Target of 14 days to process a pensioner-initiated review Price: $100 per income support pensioner Quality: Less than 5% critical error
Output 1.2 - Deliver compensation pensions, allowances and special purpose assistance to eligible veterans and war widows and widowers.	Quantity: 312,929 disability and war widows/widowers pensioners Timeliness: Target of 75 days to process a primary claim Timeliness: Target of 30 days to process a section 31 claim Price: $138 per disability and war widow/widower pensioner Quality: Less than 5% critical error
Output 1.3 - Independent merits review by the Veterans' Review Board (VRB) of certain primary decisions made by delegates of the Repatriation Commission on claims for pension.	Quantity: The number of VRB applications finalised is estimated to be 6,500 Price: $1,350 per application
Output 1.4 - Provide financial assistance through the Defence Service Home Loans Scheme.	Quantity: 50,000 housing loans Price: $49 per housing loan Timeliness: 95% of certificates of entitlements issued within 21 days Quality: Less than 5% critical errors

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EVALUATIONS

Building Excellence in Support and Training (BEST)

The Department undertook an independent evaluation of the Building Excellence in Support and Training (BEST) programme. The report was distributed to all stake-holders, including those practitioners from ex-services organisations who participated in the evaluation. BEST provides monetary support and IT equipment to ex-services organisation practitioners involved in helping veterans and their dependants in making claims and pursuing applications for review.

Networked On-line Veterans Electronic Lodgement (NOVEL)

NOVEL was a joint project between the Department and the Trials of Innovative Government Electronic Regional Services group to trial a system that would enable the electronic completion and secure lodgement of selected compensation and income support forms over the Internet for ex-service organisations, veterans and their families. The trial was conducted in Tasmania between September 2002 and January 2003. The evaluation of the trial and the future direction for this technology is being considered.

Clarke Report

In February 2002, the Government established an independent Review Committee, chaired by the Hon John Clarke QC, to consider perceived anomalies in access to veterans' entitlements and levels of benefits and support provided to veteran disability pensioners.

The Committee held public meetings around Australia and received more than 3000 submissions from individual veterans, ex-service organisations and other interested parties.

The Committee's report, consisting of over 900 pages, printed in three volumes and containing 109 recommendations, was presented to the Minister in January 2003. These recommendations remain under consideration by the Government.

Health studies which have been, or are expected to be, published in the 2002/03 financial year:

The Persian Gulf War Study has recently been published (April 2003). Monash University, Melbourne has conducted the Health Study to examine if veterans of the Persian Gulf War suffered certain conditions more frequently than a comparison group.

The Water Contamination Project report was published in a variety of international journals and conferences. The Project was conducted by the National Research Centre for Environmental Toxicology to examine if it was possible that Australian service personnel were exposed to toxic chemicals via evaporative distillation.

The Study of Health Outcomes in Aircraft Maintenance Personnel (SHOAMP) Cancer Incidence Study is expected to be completed in stages with the intention to release two reports in 2002-03. The Study is being undertaken by the University of Newcastle to determine if there are health effects related to F-111 aircraft maintenance.

The Korean Veterans Pilot Health Study is due to be published in 2002-03. The pilot health study is serving as a model for a full health study of Korean War veterans to be undertaken by staff at the Monash University in Melbourne.

The following Health studies are expected to be published in the 2003/04 financial year:

The 3^rd Vietnam Veterans Cancer Incidence and Mortality Study is intended to ascertain if Vietnam veterans have died or have suffered from cancer at a rate greater than expected. The Study is being undertaken by the Australian Institute of Health and Welfare.

The Korean Veterans' Cancer Incidence Study is being undertaken by the Australian Institute of Health and Welfare to ascertain whether the rates of cancer differ from the Australian norm.

The Korean Veterans' Mortality Study is being undertaken by the Australian Institute of Health and Welfare to establish whether the death of veterans following the end of the Korean War differ from the expected rate.

The Chemical Confirmation Project is being undertaken by the University of Sydney to examine the toxic effects of combinations of certain chemicals.

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OUTCOME 2

Eligible veterans, their war widows and widowers and dependants have access to health and other care services that promote and maintain self-sufficiency, wellbeing and quality of life.

DESCRIPTION

The Department will continue to work with providers and the veteran community to ensure that programmes meet the needs of veterans. In particular, recent research has identified segments within the veteran community with specific needs that can now be addressed by better directed policies. These segments include, for example, carers, the socially isolated, those in rural communities and those without access to transport. Innovation in bringing services to veterans in the community will continue as will the work of ensuring access for veterans to high quality hospitals, residential care facilities and other forms of care.

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MEASUREs AFFECTING OUTCOME 2

Title: Commonwealth Hearing Services Programme - indexation of charges

Outcome	Outputs Affected	Appropriations	2003-04 $m	2004-05 $m	2005-06 $m	2006-07 $m
2	2.1	Departmental Impact	0.000	0.000	0.000	0.000
2	2.1	Administered Impact	0.065	0.139	0.221	0.312
		Measure Total	0.065	0.139	0.221	0.312

Explanation

The Commonwealth Hearing Services Programme provides subsidised hearing assessments and hearing aids for people under the age of 21 and pensioner concession cardholders. After receiving hearing devices, programme participants may choose to enter into an agreement with their hearing service provider by paying an annual maintenance fee to cover battery supply, maintenance and repair services. The Commonwealth subsidises this agreement with a payment to hearing service providers of $59.85 for participants with one hearing aid or $152.25 for participants with two.

From 1 July 2003 the annual maintenance fee for programme participants will move in line with Consumer Price Index movements, rising from $31.50 to $32.30 at 1 July 2003.

This is a cross portfolio measure between the Health and Ageing and the Veterans' Affairs portfolios. The Department of Veterans' Affairs will continue to pay the full maintenance fee for veteran clients of the Commonwealth Hearing Services Programme.

Title: A Fairer Medicare - veteran access fee for Local Medical Officers

Outcome	Outputs Affected	Appropriations	2003-04 $m	2004-05 $m	2005-06 $m	2006-07 $m
2	2.1	Departmental Impact	2.600	1.097	1.041	1.125
2	2.1	Administered Impact	13.039	13.646	14.293	14.898
		Measure Total	15.639	14.743	15.334	16.023

Explanation

The Government will provide funding of $61.7 million over four years to provide greater certainty and continued access to GPs for members of the veteran community who are entitled to health care at the Commonwealth's expense through their Gold or White Repatriation Health Cards. Local Medical Officers will be eligible for an additional veteran access fee of $3 for each service provided to an eligible veteran or war widow, to be paid quarterly in arrears. The fee will be indexed annually by the Consumer Price Index.

Title: Multidisciplinary case conferencing

Outcome	Outputs Affected	Appropriations	2003-04 $m	2004-05 $m	2005-06 $m	2006-07 $m
2	2.1	Departmental Impact	0.000	0.000	0.000	0.000
2	2.1	Administered Impact	0.000	0.000	0.000	0.000
		Measure Total	0.000	0.000	0.000	0.000

Explanation

The Government will provide continued funding of $5.4 million over four years, through the Medicare Benefits Schedule, for GPs to work with other health professionals to undertake multi-disciplinary case conferencing. Case conferencing is used to determine the best treatments for people with chronic conditions and complex care needs. Involving GPs and other care providers helps ensure the right health care providers are providing the most appropriate services at the right time. This initiative is part of the Enhanced Primary Care (EPC) package first announced in the 1999-2000 Budget.

This measure will involve funding of $1.3 million in 2003-04, $1.3 million in 2004-05, $1.4 million in 2005-06 and $1.5 million in 2006-07. Provision for this funding has already been made in the forward estimates.

Title: Voluntary annual health assessments for older Australians.

Outcome	Outputs Affected	Appropriations	2003-04 $m	2004-05 $m	2005-06 $m	2006-07 $m
2	2.1	Departmental Impact	0.000	0.000	0.000	0.000
2	2.1	Administered Impact	0.000	0.000	0.000	0.000
		Measure Total	0.000	0.000	0.000	0.000

Explanation

The Government will provide continued funding of $108.1 million over four years, through the Medicare Benefits Schedule, for voluntary annual health assessments in order to identify and prevent ill-health for those aged 75 and over and for Aboriginal and Torres Strait Islander people aged 55 and over. This initiative is part of the Enhanced Primary Care (EPC) package first announced in the 1999-2000 Budget.

This preventive measure involves assessments which check a patient's health, physical, psychological and social functioning, and assess whether preventive health care and education should be offered to the patient to improve their health and wellbeing. Annual health assessments provide a valuable means of early detection of problems associated with ageing.

This measure involves funding of $24.1 million in 2003-04, $26.2 million in 2004-05, $28.0 million in 2005-06 and $29.9 million in 2006-07. Provision for this funding has already been included in the forward estimates.

Title: Pre-1 October 1997 nursing home residents - maintain funding

Outcome	Outputs Affected	Appropriations	2003-04 $m	2004-05 $m	2005-06 $m	2006-07 $m
2	2.1	Departmental Impact	0.000	0.000	0.000	0.000
2	2.1	Administered Impact	0.000	0.000	0.000	0.000
		Measure Total	0.000	0.000	0.000	0.000

Explanation

The Government will provide funding of $11.7 million over four years to ensure that residents who were living in a nursing home since before 1 October 1997 and who move to another aged care home, will not pay the accommodation charge. Providers are compensated for these residents to ensure they are not financially disadvantaged by pre-1 October 1997 residents.

This measure involves funding of $3 million in 2003-04, $3 million in 2004-05, $2.9 million in 2005-06, and $2.8 million in 2006-07. Provision for this funding has already been included in the forward estimates.

This is a cross portfolio measure between the Department of Health and Ageing and the Department of Veterans' Affairs.

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Table 2.2.1 - Total Resources for Planned Outcome 2

Outcome 2 - Eligible veterans, their war widows and widowers and dependants have access to health and other care services that promote and maintain self-sufficiency, wellbeing and quality of life.
Administered Expenses (including third party outputs)	Estimated Actual 2002-03 $'000	Budget 2003-04 $'000
Special Appropriations
Veterans' Entitlements Act 1986
Subsistence	6,980	7,285
Veterans' hospital and health services
Consultations and services by medical practitioners	654,908	694,631
Treatment in public and private hospitals	1,482,600	1,627,064
Other health care expenses	423,136	459,111
Total Veterans' hospital and health services	2,560,644	2,780,806
Veterans' pharmaceutical services	424,474	455,091
Residential Care	644,448	682,978
Veterans' Home Care	67,508	76,073
Total Special Appropriations	3,704,054	4,002,233
Annual Appropriations Bill 1
Medical examinations, fares and expenses of veterans and dependants	259	280
Compensation and legal expenses	1,156	1,184
Health and medical research for veterans' health care	2,204	2,093
Veterans' employment and training scheme	1,144	1,112
Total Appropriation Bill 1	4,763	4,669
Annual Appropriations Bill 2
Transfer of Repatriation General Hospitals	13,838	6,826
Total Appropriation Bill 2	13,838	6,826
Total Annual Appropriations	18,601	11,495
Total Administered Expenses	3,722,655	4,013,728
Price of Departmental Outputs
Output Group 2.1 - Arrangements for delivery of services.	70,441	75,308
Output Group 2.2 - Provide counselling and referral services veterans and their families.	9,282	9,470
Attribution of Output Group 6	14,775	12,622
Total Price of Outputs	94,498	97,400
Revenue from Government (Appropriation) for Departmental Outputs	93,079	96,979
Revenue from other sources	1,419	421
Total Price of Outputs	94,498	97,400
TOTAL FOR OUTCOME 2 (Total Price of Outputs and Administered Appropriations)1	3,817,153	4,111,128
1 This total does not include Departmental Special Account outflows
From Special Accounts (estimated payments from Special Account balances)
Other Trust Moneys Account (Finance Management and Accountability Act 1997)	697	0
Total Administered Special Account outflows	697	0
Average Staffing Level	713	712

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Refer also to Table 1.2.1, p21(Comparison of Estimated Actual 2002-03 & Budget 2003-04)

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CONTRIBUTION OF OUTPUTS TO OUTCOME 2

The Department of Veterans' Affairs arranges service delivery of health care and related services for eligible veterans and dependants, together with counselling services for Vietnam and other veterans and their families, in accordance with the Government's commitment to ensure that veterans, their war widows and widowers, and dependants have access to health and other health care services that promote and maintain self-sufficiency, wellbeing and quality of life.

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PERFORMANCE INFORMATION FOR OUTCOME 2

Table 2.2.2 - Performance Information and Planned Level of Achievement 2003-04

Effectiveness - overall achievement of the Outcome
Veteran satisfaction with the choices they have and the quality of the care they receive, as well as the lifestyle choices and levels of independence available to them.
Performance information for administered items
Target is a high percentage of cardholders who report satisfaction with the standard of health care received through DVA arrangements.
Performance information for Output Group 2 (Provide quality cost-effective health care and support services)
Output 2.1 - Arrangements for delivery of services.	Quantity: The treatment population (gold and white cards) is 333,797 Price: $226 per cardholder Quality: High level of veteran satisfaction
Hospitals	Price: $27 per cardholder Quality: High level of veteran satisfaction
Non-hospital care	Price: $199 per cardholder Quality: High level of veteran satisfaction
Output 2.2 - Provide counselling and referral services for veterans and their families.	Quantity: 16,000 clients in receipt of counselling services Price: $592 per client Timeliness: 95% of veterans and family presenting for services who receive attention within two weeks Quality: High level of veteran satisfaction

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EVALUATIONS

Veterans' Home Care

An evaluation of the Veterans' Home Care (VHC) programme commenced in November 2000 with the appointment of the University of New South Wales Evaluation consortium. The Evaluation provides for fieldwork including telephone interviews and focus groups with veterans and war widow(er)s, VHC agencies and service providers, and DVA national and state offices. The evaluation is due for completion in 2004 and will cover the implementation of the programme, veterans' satisfaction with services, and veterans' health status and their use of health services.

The Department commissioned Access Economics Pty Ltd in October 2002 to undertake a detailed analysis of DVA data on veterans to determine trends in health care expenditure. The Department has used this analysis to conclude that the VHC programme has achieved overall savings to the Government of the order budgeted and that the savings are growing over time.

Australian Institute of Health and Welfare

In early 2002 the Department commissioned the Australian Institute of Health and Welfare (AIHW) to undertake a study comparing veterans' use of health care services with the rest of the community. The report, Health care usage and costs - A comparison of veterans and war widows and widowers with the rest of the community, was released by the AIHW in December 2002. It found that veterans' use of health services is similar to the rest of the community once adjustments are made for age, service-related disability and widowhood.

Surveys

During 2003 the Department will be undertaking a survey of entitled veterans and war widows and their carers. Approximately 2,000 DVA health care cardholders will be surveyed to collect information to assist the Department in developing, reviewing and improving its health care services and programmes for veterans and war widow(er)s.

A survey of providers of health services to DVA entitled veterans and war widow(er)s is also being conducted in 2003. This survey will obtain providers' views on DVA policies and administrative procedures, determine their level of understanding of veterans' and war widow(er)s' entitlements and obtain information to help improve communications with providers.

Prescriber Intervention and Feedback Programme

The Prescriber Intervention and Feedback Programme analyses claims data of dispensed RPBS items to identify veterans and war widow/ers at risk of medication-related adverse events.

The programme commenced in 1999 and each quarter addresses one clinical issue related to the quality use of medicine, such as polypharmacy, drug interactions or medications with high risk for the elderly. The main prescribing doctor of an identified patient receives a feedback letter asking him/her to review the patient's medication in conjunction with relevant clinical guidelines. Typically between 8,000 and 12,000 Local Medical Officers are targeted in each module. Some modules include a direct mail out to veterans. A survey form enclosed in the doctor's material indicates that the programme is well received by doctors, and the 12 month follow-up indicates significant effects following the intervention and provision of best practice guidelines.

THE REVIEW OF THE REPATRIATION COMMISSION PURCHASING OF HOSPITAL SERVICES

In December 2002 the Repatriation Commission engaged TFG International Pty Ltd to conduct an independent review of its strategies for purchasing public and private hospital services for entitled veterans, war widow(er)s and dependants.

The Review involved:

• examining the Department of Veterans' Affairs' arrangements for purchasing public and private hospital services for entitled veterans, war widow(er)s and dependants while taking account of the historical legacy of the Department's hospital services' arrangements; and
• developing a report with options and recommendations for improvement in future purchasing of hospital services to ensure veterans and dependants have effective access to quality and cost-effective hospital services.

The report is currently being finalised and is expected to be considered by the Repatriation Commission in June 2003.

Rehabilitation

A working party drawn from veteran organisations has undertaken a review of the Veterans Vocational Rehabilitation Scheme (VVRS). It has made recommendations in relation to the operation of the VVRS covering scheme provisions and policy issues, case management and operational issues and marketing. The evaluation report has yet to be considered by the Repatriation Commission.

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OUTCOME 3

The service and sacrifice of the men and women who served Australia and its allies in wars, conflicts and peace operations are acknowledged and commemorated.

DESCRIPTION

The Department's role in commemorating the service and sacrifice of Australian men and women will continue with specific commemorative events at international, national and local levels. These initiatives will provide opportunities for communities to recognise the unique role Australians have played in securing peace in times of conflict. This outcome will also enable the construction and maintenance of national memorials at significant locations where Australians have suffered and died. It will continue the construction, preservation, renovation and maintenance of war graves, war cemeteries and gardens of remembrance. It will continue in perpetuity to process and provide official post-war commemorations and maintain those commemorations.

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MEASURE AFFECTING OUTCOME 3

Title: Commemorative activities - increase funding

Outcome	Outputs Affected	Appropriations	2003-04 $m	2004-05 $m	2005-06 $m	2006-07 $m
3	3.2	Departmental Impact	0.294	0.180	0.185	0.190
3	3.1 & 3.2	Administered Impact	3.627	1.090	1.093	1.098
		Measure Total	3.921	1.270	1.278	1.288

Explanation

The Government will provide additional funding of $7.8 million over four years for commemorative activities. This funding includes $6.8 million for the maintenance of Australia's overseas war memorials and the construction of new overseas memorials by the Office of Australian War Graves. A further $1 million is for the commemorative mission associated with the dedication of the Australian Memorial in London, which honours those Australians who served and died alongside Britons in both World Wars.

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Table 2.3.1 - Total Resources for Planned Outcome 3

Outcome 3 - The service and sacrifice of the men and women who served Australia and its allies in wars, conflicts and peace operations are acknowledged and commemorated.
Administered Expenses (including third party outputs)	Estimated Actual 2002-03 $'000	Budget 2003-04 $'000
Special Appropriations	0	0
Total Special Appropriations	0	0
Annual Appropriations Bill 1
War Graves - Commemoration care and maintenance	13,540	15,395
Refurbishment, reconstruction and relocation of war graves and related facilities	713	1,700
Veterans' commemorative activities	5,366	6,121
Total Appropriation Bill 1	19,619	23,216
Annual Appropriations Bill 2	0	0
Total Appropriation Bill 2	0	0
Total Annual Appropriations	19,619	23,216
Total Administered Expenses	19,619	23,216
Price of Departmental Outputs
Output Group 3.1 - Implement commemorative initiatives and provide support and funding to acknowledge Australia's servicemen and women from wars, conflicts and peace operations.	4,561	4,735
Output Group 3.2 - Maintenance, construction and refurbishment of war graves, war cemeteries, gardens of remembrance and post war commemorations. Provide and maintain national memorials overseas. Process claims for, and provision of, official post war commemorations.	3,756	4,188
Attribution of Output Group 6	397	183
Total Price of Outputs	8,714	9,106
Revenue from Government (Appropriation) for Departmental Outputs	8,628	9,060
Revenue from other sources	86	46
Total Price of Outputs	8,714	9,106
TOTAL FOR OUTCOME 3 (Total Price of Outputs and Administered Appropriations)1	28,333	32,322
1 This total does not include Departmental Special Account outflows
From Special Accounts (estimated payments from Special Account balances)
Federation Fund Reserve Account (Finance Management and Accountability Act 1997)	2,000	0
Australians at War Account (Finance Management and Accountability Act 1997)	0	700
Total Administered Special Account outflows	2,000	700
Average Staffing Level	113	114

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