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CASA Annual Report 2003 04 Part 2: Operational Report

Operational Report

Performance overview

2003–04 was a year of solid achievement for CASA, in which it consolidated important work begun over the past few years and began moving in some new directions flowing from a new Charter Letter from the Minister and a new Chief Executive Officer.

Uncertain times continued for the aviation industry, with all sectors facing considerable economic and competitive pressures. These pressures and the availability of new technologies both prompted and provided the opportunity for change. There was ongoing rationalisation and restructuring of the industry in terms of operators, size of operation, types of aircraft used and routes flown. For CASA, this environment was reflected in continuing high demand for regulatory services, the need for new standards, and potentially increased safety risks that required extra vigilance.

This part of the report presents CASA’s progress towards its vision of Safe skies for all against the effectiveness indicators and performance measures contained in the Portfolio Budget Statement. As well as setting out what was achieved in 2003–04, the report outlines important steps CASA took during the year for better outcomes in the future.

Performance framework

The performance framework within which CASA operates is shown in Figure 2.

Figure 2: Performance framework

Figure 2: Performance framework

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Corporate planning process

The strategies and initiatives CASA pursued in 2003–04 were developed in the rolling three-year corporate planning process. This process focuses on the factors that CASA believes will be critical to success in:

  • meeting the challenge of leading the aviation community in providing Australia with a world-class air safety environment, which has public trust and confidence
  • achieving the vision of Safe skies for all
  • making an effective contribution to the portfolio outcome of ‘A better transport system for Australia’.

The four outputs shown in Figure 2 are closely interrelated in how well CASA achieves its vision and in the contribution CASA makes to the portfolio outcome. This interrelationship is reflected in the effectiveness indicators shown on the chart, each of which draws on the achievement of objectives across the outputs.

Achievement of CASA’s Corporate Plan for 2003–04 to 2005–06 was monitored during the year by way of quarterly performance reports, reviewed internally. The Minister, to whom the plan was submitted in June 2003, received a performance report with CASA’s submission of its new corporate plan for 2004–05 to 2006–07.

During the year, the Corporate Plan was supplemented by the issue of 15 formal Directives by the new CEO. These directives were advised to the Minister and made public on CASA’s web site.

As part of the October 2003 corporate governance changes, CASA’s corporate plans are now formally subject to the Minister’s approval under section 44 of the Civil Aviation Act. In addition, the Minister and the CEO enter into a yearly Performance Agreement under the new section 12C of the Act in relation to the performance of CASA’s functions.

Plans and agreements have a common foundation of goals, objectives and strategies, but the agreement focuses on near-term priorities and incorporates a formal review and feedback process. CASA submitted a corporate plan and performance agreement to the Minister at the end of June 2004.

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Output cost attribution

CASA has a fully integrated budget and costing framework, which has been in place for several years. This cost attribution model has been consistently applied to obtain the cost of outputs.

The general methodology of determining direct costs and controllable expenses to outputs is based on the daily capture of staff time against approved business activities, which aggregate to CASA’s four outputs. Accordingly, the direct costs of business activities are known and each business activity linked to an individual CASA output.

Overhead costs are attributed to CASA’s outputs based on the direct staff-hours being consumed in the delivery of CASA’s four outputs.

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Outcomes against budget

Figure 3: Output costs

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