3.1 - Corporate Governance in the Department

The Department’s governance framework provides the structure for informed decision making, efficient and effective program management, risk management and accountability.

The Executive introduced a new governance structure in April 2007 which will provide the Department with rigorous and robust capacity for effective governance. Factors that motivated the review included the Australian National Audit Office’s growing focus on governance structures for projects and systems within departments and an increased emphasis within the public sector on risk management. A divisional restructure to accommodate an injection of administered funding and major additional work and responsibility was also a factor.

Departmental Committees

Executive Management Committee

In 2006–07, the Executive Management Committee was the Department’s peak decision-making body. It provided leadership and strategic guidance for the Department and considered recommendations from the Policy Strategy Committee, the Risk and Security Committee and the Planning and Performance Committee. The Executive Management Committee made all major decisions on departmental policy, financial and operational issues. It also assessed all expenditure proposals involving major investment and was responsible for strategic people management. This included the development of the Collective Agreement and remuneration policy for departmental staff. The committee also implemented the broad policy agenda and direction set by the Government and approved the Department’s research agenda.

Policy Strategy Committee

The Policy Strategy Committee provided advice to the Executive Management Committee on major policy issues, including policy priorities and gaps. It developed future policy initiatives and provided advice and recommendations about priorities for the Department’s research agenda. The committee also commissioned specific research projects and suggested major and long term policy positions for endorsement and consideration by the Government. In addition, the committee acted as a forum for discussions of major policy issues.

Planning and Performance Committee

The Planning and Performance Committee provided advice to the Executive Management Committee on major strategic resourcing issues. It was responsible for the performance of administered programs and capital expenditure. IT systems and applications proposals, and funding priorities and pressures were also priority areas.

The committee developed resource management strategies for submission to the Executive and ensured departmental capital investment and other expenditure plans and proposals were achievable. This was to ensure they were in line with departmental priorities and were appropriate in terms of the budget outlook.

Some of the Planning and Performance Committee’s work was undertaken by the former Business Management Committee, which was responsible for providing strategic guidance and oversight of corporate change in the Department.

Risk and Security Committee

In 2006–07, the Risk and Security Steering Committee was responsible for risk management, security, business continuity and insurance frameworks. The committee encouraged awareness of these frameworks and supported compliance through monitoring and evaluation activities.

During 2006–07, the committee continued to work on the Enterprise Risk Management Plan which incorporated strong linkages to business planning. It commenced further enhancement of the Agency Security Plan and took part in the annual Comcover risk management benchmarking survey. The Department improved its rating against all key result areas.

The committee tested the Department’s Business Continuity Plan, which included a desktop test involving the National Incident Room and a partial live test of critical communications to government and the public. These tests resulted in better preparedness for the Department as well as whole-of-government business continuity.

Audit Committee

The Audit Committee provided independent assurance and advice to the Secretary on the Department’s risk control and compliance framework, and its external accountability responsibilities. This included reviewing the Department’s financial statements and advising the Secretary regarding their signing. The committee also reviewed the internal audit coverage and annual work plans and provided input and feedback on the financial statement and performance audit coverage afforded by the Australian National Audit Office.

Discussion relating to the Audit Committee’s achievements in 2006–07 can be found in Part 3.5 – Internal Audit Arrangements.

Ethical Standards

In 2006–07, the Department continued its commitment to maintaining high ethical standards. This is reflected in the Department’s 2006–09 Corporate Plan, which guides team leaders and staff on how to approach their work. These principles are underpinned by the Australian Public Service Values.

The Department provided all new staff with a copy of the Australian Public Services Values and Code of Conduct. Each new staff member was made aware of his or her responsibilities under the Public Service Act 1999 during their orientation and induction sessions. This information was available to all staff on the Department’s intranet site. Staff could also access related practical information through the Understanding your Accountabilities training course.

The Secretary launched the Respect campaign on 18 October 2006 to reinforce the Department’s disapproval of harassment. The campaign raised staff awareness of the importance of treating others with respect and courtesy at all times.

On 3 May 2007, the Department reminded all staff of their individual obligations under the Australian Public Services Values and Code of Conduct to manage real and perceived conflict of interest (with links to a range of information on the practical application of the Australian Public Services Values and Code of Conduct).

The Department will review its conflict of interest policy framework to reflect the Australian Public Service Commission’s advice of June 2007, regarding the management of declarations of financial and other interests, and post separation employment arrangements.

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