Section 4: Management and accountability
Corporate Governance
In 2008–09, the department established its own corporate governance structure and progressively divested itself of the corporate support provided by the Department of the Environment, Water, Heritage and the Arts. The department also developed its own policies and procedures.
Governance framework
In December 2008, the Secretary agreed to the department-specific governance and risk framework, launching it on the intranet and in the staff newsletter in March 2009.
The department’s governance framework reflects the role of the department as key advisor, policymaker and regulator in relation to climate change issues, and encompasses the following objectives:
- developing and implementing a sound governance framework that delivers on all of the principles agreed to by the Executive and meets the requirements of the Australian National Audit Office (ANAO)
- establishing processes to ensure that the governance requirements and issues facing the department are anticipated, understood and properly managed
- developing governance processes that contribute to overall performance and conformance by the department.
The core components of the framework are:
- the Governance Framework Guidelines
- the Corporate Plan
- the Risk Management Plan
- the Fraud Control Plan
- the Chief Executive Instructions
- division and section business plans
- the Financial Delegations
- the Annual Regulatory Plan
- the Annual Procurement Plan
- Financial Management and Accountability Act 1997 compliance reporting.
Since the framework’s launch in March 2009, the department has developed a 2009 fraud risk assessment and is drafting the Business Continuity Plan. A major project for the first half of 2009 was the review of the department’s Chief Executive Instructions and financial delegations.
Governance committees and their roles
Figure 6 shows the committees that implement the department’s corporate governance framework.
Figure 6: Governance committee structure
Executive committees
The Executive Committee and the Executive Board operate as the key decision-making committees for the department. The two committees are responsible for high-level strategic direction and operational issues, including corporate policy and program development; corporate governance; and resource management, development and planning.
The Executive Committee comprises the Secretary, the deputy secretaries and the Chief Financial Officer. Its function is to consider the department’s key strategic requirements. It meets on an ad hoc basis.
The Executive Board comprises the Secretary, the deputy secretaries, the Chief Financial Officer, the first assistant secretaries and the Chief Adviser International Division. The Executive Board meets weekly. Staff can access the minutes of the Executive Board’s meetings on the intranet.
Audit Committee
The Audit Committee was formed in January 2008. The committee provides independent assurance and assistance to the Secretary and the Executive Board on the department’s risk, control and compliance framework, and its external accountability responsibilities. The Audit Committee meets quarterly or more often as required. The chair of the committee reports to the Executive Board following each committee meeting. Minutes of the meetings are circulated to the Executive Board and posted on the intranet.
The Audit Committee comprises Mr Blair Comley, Deputy Secretary and committee chair; Mr Ian Carruthers, First Assistant Secretary, Adaptation and Land Management Division; and Mr Will Laurie, independent member. Mr Robert Twomey (Chief Financial Officer) and Ms Rebecca Reilly (Executive Director, Australian National Audit Office) attend each meeting as observers. The internal auditors attend by invitation.
The Audit Committee met on four occasions in 2008–09. Its work during the year included oversighting the department’s compliance and risk management; reviewing the financial statements; monitoring the audit program; and scrutinising internal and external audit recommendations as well as relevant Australian National Audit Office reviews.
Key activities of the Audit Committee in 2008–09 were the appointment of KPMG as the external provider of internal audit services to the department, the implementation of an internal audit program, and the review of risk and compliance reporting at each meeting.
Other governance committees
The Staff Consultative Committee improves mutual understanding and facilitates the exchange of information relating to workplace matters. The committee, which is chaired by the Assistant Secretary, Corporate Services, meets six times a year and reports to the Executive Board when necessary.
The Accommodation Committee oversights and manages the department’s accommodation needs and provides strategic advice and direction to the Executive Board on the department’s accommodation requirements. The committee is chaired by a First Assistant Secretary, and has representative membership from across the department. It meets monthly and reports to the Executive Board.
The Procurement Review Board oversights the department’s purchasing and procurement activities and monitors the department’s compliance against the Commonwealth Procurement Guidelines and the Financial Management and Accountability Act 1997. The board meets weekly and consists of the Chief Financial Officer and the General Counsel. The committee reports quarterly to the Executive Board, providing a summary of procurement submissions and commenting on emerging trends, recurring issues and any procurement risks that might affect the department’s risk profile.
The ICT Steering Committee oversights the department’s information and communication technology (ICT) investment decisions and strategic direction. The committee, which meets quarterly, is responsible for defining the department’s technology processes and practices and prioritising and approving ICT proposals. The committee is chaired by the Chief Financial Officer and head of Corporate Services, and includes members from across the department.
The Occupational Health and Safety Committee operates in accordance with section 34(1) of the Occupational Health and Safety Act 1991 and aims to promote an environment in which employer and employees work cooperatively to ensure the health and safety of employees at work. The committee, which meets quarterly, is chaired by a First Assistant Secretary. The department’s Health and Safety Management Arrangements, which were implemented in September 2008, provide the framework for occupational health and safety in the department.
The Graduate Committee operates as a source of strategic policy and direction for the departmental recruitment and training program. The committee is chaired by a First Assistant Secretary. Meetings are scheduled as required.
The Learning and Development Committeeprovides a central point to identify key staff learning and development needs. It also assists with the development and implementation of the department’s training program. The committee is chaired by a Deputy Secretary. Meetings are scheduled as required.
The Staffing Committee considers staffing issues relating to internal staff transfers and general recruitment strategies. It is chaired by a First Assistant Secretary, and meets as required.
The Remuneration Committee meets on an ad hoc basis to consider staff remuneration related issues. It is chaired by the Secretary.
The Australian Climate Change Regulatory Authority Integration Committee is the head committee of a number of committees that assist with the planning and governance arrangements for the proposed authority to ensure that delivery is aligned with government objectives. It is chaired by Mr Geoff Leeper, Deputy Secretary, and meets weekly.
Corporate planning
In 2008–09, the department’s internal planning included the preparation of a corporate plan, which sets out the department’s roles and responsibilities in relation to its outcome and outputs. The plan is available on the department’s website. Departmental divisions and Corporate Services developed annual business plans, which identified key priorities, performance information, risks, relationships and financial information. The Executive Committee reviewed and endorsed the plans.
Fraud prevention and control
In 2008–09, as part of its separation from the Department of the Environment, Water, Heritage and the Arts, the department developed its Fraud Control Plan and 2009 Fraud Risk Assessment. The Fraud Control Plan complies with the Commonwealth Fraud Control Guidelines issued under regulation 19 of the Financial Management and Accountability Act 1997 and is available to staff on the department’s intranet. The plan has in place appropriate fraud prevention, detection, reporting and data collection procedures and processes that meet the specific needs of the department.
No instance of fraud was reported in the department in 2008–09.
Ethical standards and accountability
The department’s values embrace the Australian Public Service Values and Code of Conduct and the behaviours of a high-performance workforce, as detailed in the ‘Departmental overview’ of this report.
In recognition of its move to a more secure ICT network, in 2008–09 the department undertook an extensive education process to ensure that all staff were fully briefed on their responsibilities in relation to security. In addition, the department offered concentrated training to all staff who are likely to be involved in procurement processes.
Over the course of the year, the department revised its Chief Executive Instructions, financial delegations and human resources delegations.
Following the launch of the Australian Public Service Commission’s Ethics Advisory Service, the department appointed the Director Human Resources as the ethics contact officer.