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Corporate governance
Overview
Strengthening of the governance framework and procedures continued in 2005–06. Major achievements included:
- the release of the Practical Guide to Program Administration, which was developed in the previous year as a hands-on, interactive tool on the Department's intranet;
- the release/revision of 16 procedural rules, including key governance rules on management of conflict of interest and receipt of gifts, complaints handling and insurable risks;
- enhancement of business continuity planning through the commencement of work on a pandemic plan for the agency;
- commencement of a review of the Department's risk management policies and procedures to further integrate risk management principles into business processes; and
- incorporation of governance issues into the Department's new capability programs.
The organisation staff survey planned for 2005–06 was held over until 2006–07 to allow the new departmental structure, implemented on 1 July 2006, to be bedded down. One objective of this survey is to gauge staff awareness and understanding of corporate governance obligations and requirements. Feedback will be used to further refine corporate governance training courses and related products including publications.
The departmental restructure will also require the Department to review its output structure and corporate plan. This work is planned for early 2006–07.
Senior management and coordinating committees
Eight senior management and three cross-departmental coordinating committees operated during the reporting period. These committees provided advice and support to the Secretary and to the Department's executive on governance, compliance and future directions. The senior management committees are outlined in figure 3.1.
Figure 3.1 Senior management committees
| Committee name | Role and activities | Membership as at 30 June |
|---|---|---|
| Executive Group (meets about every three weeks) | The Executive Group considers matters affecting the overall operation and strategic direction of the Department. In 2005-06, the group discussed a range of organisational development matters such as succession planning, learning and development opportunities for departmental staff, and improving ways of working together with other government agencies. | The Secretary (chair), deputy secretaries and the Chief Operating Officer. |
| Executive Management Group (EMG) (meets weekly) | The EMG is the main forum in which the Department's governance and accountability needs are discussed by the senior executive. The group monitors the financial and non-financial performance of departmental and administered programs, shares information about major projects and activities in the Department and receives regular reports from the management subcommittees. | The Secretary (chair), deputy secretaries, General Counsel, all chief general managers, the Chief Operating Officer and the Chief Financial Officer. |
| Executive Management Group (EMG) (meets weekly) continued | In 2005-06, it contributed to the development of several departmental policies including a new recruitment and retention strategy, a portfolio emergency response guide, a workplace giving program and security policies. Towards the end of the year, the group worked on implantation of a new departmental structure while minimising disruptions to Government business. Throughout the year, it received regular reports on the progress of Indigenous policy and programs and a monthly Regional Network report covering activities, events and issues affecting departmental officers working in rural and regional areas. | |
| Audit, Risk and Evaluation Committee (meetings held 25 August 2005 [special], 15 September 2005, 8 December 2005, 9 March 2006, 5 May 2006 [special], 15 June 2006) |
The Audit, Risk and Evaluation Committee, in accordance with the FMA Act, provides independent advice to the Secretary on the Department's control frameworks, externally published financial information and compliance with statutory obligations. The committee considered a range of issues during the year, including the Department's 2005-06 Internal Audit Plan, fraud and risk plans for 2005-07, business continuity planning, and oversight of the ANAO and internal audit report recommendations. Special meetings of the committee were held on 25 August 2005 to approve the Department's 2004-05 financial statements and on 5 May 2006 to approve the appointment of a new internal auditor for the Department. |
The Deputy Secretary Communications (chair), Mr Peter Kennedy, external member (Integrity Adviser Australian Taxation Office), Chief Operating Officer, General Manager Public Broadcasting, General Manager Enterprise and Infrastructure, and General Manager Collections. Representatives from the Australian National Audit Office, the Department's internal auditors (KPMG), the Chief Financial Officer, General Counsel and General Manager Content and Programs Old Parliament House attend committee meetings as observers. |
| Workplace Consultative Committee (WCC) (meetings held 22 September 2005, 24 November 2005, 30 March 2006 and 22 June 2006) |
The WCC is established under the Department's current certified agreement (CA) as a direct consultative mechanism with staff. WCC staff representatives provide advice to management on workplace issues and are involved in monitoring implementation of the certified agreement and progress toward achievement of the pre-conditional salary increase components specified in the CA. During the year, the committee considered a range of issues including development of the Regional CA, OH&S issues, the review of arrangements for rostered staff, introduction of the School Leavers Program, core training and development programs, the restructure of the Department, working arrangements for Executive Level staff and car parking. | The Secretary, (Chair), Chief Operating Officer, Chief Finance Officer, Manager HR Strategy, Manager HR Operations, elected staff representatives from each Division, Old Parliament House, the Regional Network, the Department's Graduate Program, and CPSU representation. |
| Occupational Health and Safety (OH&S) Committee (meetings held 5-Aug-05 4 November 2005, 3-Feb-06 and 30 June 2006) | The OH&S Committee reports to the WCC on the Department's progress in meeting its OH&S responsibilities. The Committee reviewed, discussed and made recommendations on a range of issues throughout the year. These included training for health and safety representatives, the Department's annual Health Week; continued incident and accident reports and actions, roll-out of a software tool to assist with the prevention and management of overuse injuries and the introduction of emergency procedures information for all staff. | General Manager, Research, Statistics and Technology (chair), Manager HR Operations and elected health and safety representatives from each designated work group (currently 12). |
| Information Management Committee (IMC) (meetings were held 7 September 2005, 17 November 2005, 1 March 2006 and 1 June 2006) | The IMC provides advice and strategic direction to the Executive Management Group on the management of the Department's information technology needs. The committee considered a range of issues during the year, including desktop hardware replacement, the electronic records management (TRIM) system uptake, the financial and budgeting system (SAP) upgrade, website and intranet infrastructure, and application development within new architecture. | Chief Operating Officer (Chair), General Manager Information Technology and Facilities, General Manager Access, Chief Financial Officer, General Manager Licensed Broadcasting, General Manager Film and Digital Content, General Manager ICT Industry, General Manager Broadband Infrastructure, Senior Advisor Legal Group and the Executive Coordinator. |
| Human Resource Management Committee (HRMC) (meetings held 1 September 2005, 14 November 2005, 1 December 2005, 16-Mar-06 and 8 June 2006) | The HRMC provides strategic advice and direction in the development and management of the Department's human resource initiatives. The HRMC guides the development of the HR strategies and is responsible for reporting to the Secretary and EMG on progress against the HR Strategic Directions 2006-10 and for monitoring the Department's progress against the Management Advisory Committee Report—Managing and Sustaining the APS Workforce. The committee considered a range of issues including management of a recruitment consultancy, review of entry-level recruitment (including the 2006 and 2007 graduate programs and development and implementation of a pilot recruitment program for school leavers for 2006), development and implementation of capability programs for staff at the APS 1-4 and APS 5-6 levels, management of the Department's compensation premium, various HR policies, the performance of the Department's payroll provider and consideration of workforce metrics and trends. | Chief Operating Officer (Chair), General Manager Arts, Regional and Governance, General Manager Broadband Infrastructure, Chief General Manager Information Economy, General Counsel Legal Group, Chief General Manager Broadcasting, General Manager Creators' Rights and Access, General Manager Corporate Finance, General Manager HR & Communications, Manager HR Strategy and the Executive Coordinator. |
| Workplace Diversity and Harassment Committee (WDHC) (meetings held 18 October 2005, 7-Feb-06 and 6 June 2006) | The WDHC promotes and supports the Department's commitments to workplace diversity and eliminating workplace harassment. The Committee monitors and reports on the implementation of the objectives of the Workplace Diversity and Eliminating Workplace Harassment (WD&H) plan. The Committee also reviewed, discussed and made recommendations on a range of issues throughout the year. These included undertaking a formal review of the WD&H plans, development of awareness raising posters and of activities associated with celebrating NAIDOC Week, Harmony Day and Reconciliation Week. | General Manager HR & Communications (Chair), Manager HR Operations, and General Manager Old Parliament House. There are also three staff representatives from the WDHC contact officers' network. |
Three cross-departmental coordinating committees operated during the reporting period: the International, Research and Connect Australia committees. The International committee (deputy secretaries, General Manager International) coordinates the Department's involvement in multilateral and bilateral forums. The Research committee (deputy secretaries, General Manager Research Statistics and Technology) focussed on the development of a departmental research program. The Connect Australia committee, chaired by the Secretary, was established in the 2005–06 reporting period to coordinate Connect Australia activities across the Department.
As part of the departmental restructure, a review of the cross-department coordinating committees was undertaken which resulted in a framework of six coordinating committees to commence work from 1 July 2006 (figure 3.2).
Figure 3.2 Coordinating committees to commence on 1 July 2006
| Committee | Role and activities |
|---|---|
| Strategy and Research | Deals with longer term issues of significance to the Department as well as the Department's research and statistical requirements |
| International | Forward agenda and work to coordinate strategic aspects of Department's profile |
| Connect Australia | Cross-department coordination of Connect Australia programs, Broadband Blueprint, 3G/CDMA and other regional programs |
| Indigenous | Whole-of-department coordination on Indigenous policy and program issues |
| Intellectual Property (IP) | Department-wide IP issues including legal deposit, Indigenous IP |
| Digital Content | Digital media, online and related content issues, film, digital content action agenda |
Members of the Department’s Executive Management Group. Front row (L–R): Lynn Bean, Acting Deputy Secretary, Arts and Sport; Helen Williams, Secretary; Fay Holthuyzen, Deputy Secretary, Communications; Rod Badger, Deputy Secretary, Information Economy. Middle row (L–R): Jennifer Gale, Chief Financial Officer; Don Marcus, General Counsel; Jenny Anderson, Beverly Hart. Back row (L–R): Simon Pelling; Frank Nicholas, Chief Operating Officer; James Cameron, Colin Lyons; Rohan Buettel (attending on behalf of Keith Besgrove).
Corporate planning
The 2005–08 corporate plan provided the broad strategic directions and key priorities which the Department pursued in 2005–06 to achieve its outcomes relating to arts, sport, communications, information technology and the information economy.
The corporate plan is underpinned by divisional business plans detailing the key divisional outputs and activities to achieve the Department's objectives. These plans are in turn linked to the Department's performance management system, which guides the management of both individual and team performance.
A review of the Department's corporate plan is planned for early in 2006–07 to reflect the Department's restructure and new policy and program directions, such as the introduction of the Connect Australia program.
Audit, risk and evaluation
The Audit, Risk and Evaluation Committee met six times during the year and reported to the Secretary and the Executive Management Group after each meeting. The focus for 2005–06 was on the implementation of treatments identified in the fraud control and risk management plans, physical and personal security arrangements, the outcome of financial statement audits, monitoring of the evaluation framework, compliance with the Australian Equivalent International Financial Reporting Standards and monitoring progress with the implementation of Australian National Audit Office and internal audit report recommendations.
The process of committee self-assessment continued during 2005–06 and indicated that all performance indicators had been met.
Internal audit
The Department's internal audit services were provided by KPMG and monitored by the Audit, Risk and Evaluation Committee. The 2005–06 Internal Audit Plan was developed based on the Department's Strategic Audit Plan 2003–06, consideration of risk drivers in the Risk Management Plan 2005–06 and discussion with senior management.
Internal audits conducted during the year included:
- Contract Management Review;
- Corporate Credit Cards Review;
- Review of IT controls and security;
- Multi-year grant documentation; and
- Accounts Payable (partially completed).
The audit into the application of regulation 10 of the Financial Management and Accountability Regulations 1997, that was included in the 2004–05 internal audit plan, was also finalised in 2005–06.
While a number of recommendations were made in relation to the completed audits, no serious control breaches were identified. The Department's Audit, Risk and Evaluation Committee monitored the implementation of the reports through quarterly status reports.
A number of additional assignments were undertaken by the internal auditor during the reporting period, including probity advice for Round 2 of the Coordinated Communications Infrastructure Fund, a review of the Department's media monitoring needs and a review of Artbank operations.
With the expiry of the internal audit contract on 30 June 2006, a select tender process to implement a new audit contract was undertaken by the Corporate Governance Section. A new provider, Protiviti, was selected and an official order was signed on 31 March 2006 for two years with the option for a one-year extension.
Risk management
The 2005–07 Risk Management Plan, which commenced development in 2004–05, was approved on 10 August 2005. Following the release of the new plan, a review of the risk management policies and guidelines which support the Plan was commenced. The revised policies and guidelines are to be submitted to the Audit, Risk and Evaluation Committee and the Executive Management Group in early 2006–07.
The Department continued to educate and raise awareness and understanding of staff in relation to risk management as a vital element in the delivery of outcomes to the Government.
In March 2006, the Department participated in Comcover's risk profiling exercise to assist Comcover to understand the risk exposures of individual fund members and the whole Comcover fund. The exercise also provided the Department with a methodical process to identify and quantify its insurable risks and to assist in the overall management of risks.
The Department continued to participate in the annual Comcover benchmarking survey which measures performance in managing risk and assessing the extent of cultural change within agencies. The Department's overall results improved when compared with previous years reflecting the Department's competency in implementing an enterprise-wide risk management framework. As a result, the Department received a six per cent premium discount on the insurance renewal.
Fraud control
The Department continued to monitor and report on the treatment of risks identified in the 2005–07 Fraud Control Plan through the Audit, Risk and Evaluation Committee. A number of initiatives were commenced to mitigate these risks, including continuing with reviews aimed at strengthening audit and acquittal processes, strengthening interagency relationships and revising and updating acquisition policies.
The Department also continued to review its fraud prevention, detection, investigation and reporting procedures to ensure ongoing compliance with Commonwealth fraud control guidelines.
Evaluation
In June 2006, the rolling three year evaluation program for 2006–09 was approved by the Executive Management Group. The program includes 16 management initiated evaluations covering all policy divisions. It takes account of work being undertaken by external authorities such as the Australian National Audit Office and the Department of Finance and Administration's Office of Evaluation and Audit (Indigenous Programs).
The Audit, Risk and Evaluation Committee oversees the evaluation program and ensures that regular program evaluations take place and that the recommendations from these evaluations are implemented.
During the reporting period, the Department completed management evaluations covering the following:
- the Satellite Phone Subsidy Scheme and Community Phones program; and
- the operation of the Spam Act 2003 and the spam regulatory function.
Ethical standards
The Department is committed to supporting and promoting the Australian Public Service (APS) Values and Code of Conduct in accordance with the Public Service Act 1999. Major achievements in this area during the year included:
- the 27 September 2005 release of detailed departmental procedures for managing breaches of the Code of Conduct covering guidance for employees, managers and investigators involved in a code of conduct matter;
- the review of the Department's Workplace Diversity Plan 2004–05 and Eliminating Workplace Harassment Plan 2004–05 with new plans expected to be released early in 2006–07;
- the continuation of adherence to the APS Values and Code of Conduct as a mandatory assessment criterion under the Department's performance management system; and
- the approval of 14 new procedural rules introduced to operate alongside the Chief Executive Instructions and give guidance on a range of ethical issues including:
- asset management;
- care and custody of financial instruments;
- complaints handling;
- conflicts of interest andreceipt of gifts;
- insurable risk;
- loss and recovery of public property; – official bank accounts;
- payment of accounts;
- receiving public money;
- use of property;
- financial statements and reporting;
- financial accounts and records;
- official advances; and
- gifts of public property.
Courses on the APS Values and Code of Conduct and on raising cultural awareness also continued to be conducted. In this reporting period, 12 staff attended a one-week graduate induction course, eight staff recruited under the new School Leaver Program attended a three-day induction course, 64 staff attended five APS Values and Code of Conduct courses, and 39 staff attended three Indigenous cultural awareness training courses.
Further initiatives will be implemented in 2006–07 to improve awareness of ethical standards, including the release of new Workplace Diversity and Eliminating Workplace Harassment plans.
External scrutiny
The Australian National Audit Office issued a number of reports in 2005–06, some which involved the Department directly and others which were of special or general interest to the Department. A key responsibility of the Audit, Risk and Evaluation Committee is to oversee the implementation of the recommendations contained in these reports.
Details of the audits in which the Department was involved can be found at appendix 3.