The audit objective was to assess the effectiveness of the Department of Health’s and the Department of Human Services’ management and administration of the Child Dental Benefits Schedule.

To form a conclusion against the audit objective, the ANAO adopted the following high-level audit criteria:

• Health and Human Services have effective governance and administrative arrangements to support the delivery of the Child Dental Benefits Schedule;
• Human Services has implemented systems and processes to administer payments to eligible clients in an accurate and timely manner; and
• Health and Human Services effectively monitor, evaluate and report on compliance and performance to inform delivery of the Child Dental Benefits Schedule.

Conclusion:

Health and Human Services’ day-to-day administration of the Child Dental Benefits Schedule has been largely effective. The ANAO identified scope for improvement in relation to Health’s risk management planning for the program and Human Services’ quality framework for the manual data matching process used to maintain the integrity of program data.

The policy design of the program has addressed some of the shortcomings of the previous Medicare Teen Dental Plan. In common with the previous program, the CDBS continues to attract relatively low customer uptake—around 30 per cent in the 2014 and 2015 calendar years—as compared to Health’s projections, resulting in a significant underspend of allocated funding. In the context of low program uptake, there should be a focus on improved communication with the target population and review activity to inform advice to government on the progress and future directions of the CDBS. The program’s second year of operation ends in December 2015 and is an appropriate point for Health to take stock.