Public Servants tend to refer to their own and other departments by acronym. Thus the (old) Department of Family and Community Services was referred to as "FaCS" (FACKS).
Now that they're Family and Community Services and Indigenous Affairs, one person I know insists on pronouncing FaCSIA as though it were spelled fascia (i.e., FAY-SHA), but most people still just call it FACKS, or FACK-SEE-A.
Whether or not the D -- for 'Department' -- is pronounced depends on whether or not it makes a good acronym. Social Security was always called "DSS", not just the "SS". If the D in FaCS had been pronounced, the acronym could well have sounded very much like "The effing Cs".
Still, the Department of Primary Industries and Energy has -- or at least had -- an acronym (DPIE) that is pronounced "Dopey", so not everyone thinks about the acronyms before naming the department.
And it shows. The Department of Immigration and Multicultural Affairs (DEE-MA) has changed name to the Department of Immigration and Citizenship. It won't stop them being dicks, though.