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Risk and Compliance

Communiqué – OATSIH Risk Assessments and National Compliance Framework

Letter to stakeholders thanking them for their cooperation and participation, and an update on progress on two major components of Taskforce activities.

PDF version: Communiqué – OATSIH Risk Assessments and National Compliance Framework (PDF 31 KB)

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Dear Stakeholder,

First of all I’d like to say thank you for your cooperation and participation so far on the integration of OATSIH compliance, risk and corporate governance practices. I am very pleased with the level of collaboration, understanding and willingness to support improved processes that ultimately lead to improved service delivery through a nationally consistent approach.

Two major components of the Taskforce’s activities; outsourcing OATSIH Risk Assessments (RAs) and development of a National Compliance Framework (NCF), have been progressing well and are on track with significant milestones recently being achieved.

Risk Assessments by Cogent and initial findings

Cogent Business Solutions Pty Ltd (Cogent) have begun undertaking the scheduled OATSIH Risk Assessments (RAs), from 6 February 2012. Fifteen of these scheduled assessments will be of organisations, randomly selected using stratified sampling, for an additional detailed financial assessment.

All organisations due for an OATSIH RA during this scheduled period, should now have received a pre-visit notification by email and in hard copy, and where selected, were advised of the requirement for the additional financial assessment. Cogent has now locked in these visits accordingly to take place on-site at the premises of funded organisations in each State and Territory.

Preliminary findings from RAs conducted have identified a re-occurring issue in organisations’ ability to provide a suitable register of assets as per clause 12.1(d) of the Head-Agreement for Multi-project funding – Records that the Participant must keep. Organisational management of equipment and infrastructure is addressed in the OATSIH RA and a copy of the register of assets described in clause 12.1(d) is included as an evidentiary requirement for funded organisations that have an OATSIH RA conducted.

If you do not have an assets register, I strongly encourage you to develop and implement one in order to comply with your funding conditions and to enable mitigation of this particular risk indicator. An example of an appropriate assets register has been provided for information and is available from the OATSIH Reporting Webpage titled Assets Management Register Template (Example). However, it should be noted that this is an example only and organisations will need to decide if it is appropriate for their use or not.

The Taskforce is also currently developing a reporting tool, which when complete will provide data on trends such as particular indicators that are not met across jurisdictions or where by jurisdiction there has been changes in risk from high or extreme to low or medium. This allows us to examine the changes and best practice that is occurring. Once available, this information (on a de-identified jurisdictional basis) will be shared with organisations, NACCHO and its State and Territory Affiliates.

National Compliance Framework successful tenderer – Ernst and Young

The recent Request For Tender (RFT) advertised on AusTender to develop the National Compliance Framework (NCF) for OATSIH closed on 25 January 2012 and a contract has now been signed with Ernst and Young as the successful tenderer.

Ernst & Young has been appointed to work with OATSIH to develop and implement a national compliance framework. This framework will develop and improve processes used by the Department’s State and Territory offices to manage agreements with organisations engaged to deliver health services to Aboriginal and Torres Strait Islander people and communities.

The team from Ernst & Young bring experience in working with Aboriginal and Torres Strait Islander people and communities through recent projects such as the Australian Nurse Family Partnership Evaluation for the Department of Health and Ageing and the Cultural Security Audit for the Northern Territory Department of Health.

Ernst & Young are keen to get started on this important piece of work that will assist OATSIH, both in Central and State and Territory Offices, implement nationally consistent and rigorous frameworks and processes to assist in the integration of compliance, risk and corporate governance practices into everyday OATSIH business processes. This work is about ensuring OATSIH improve its practices and procedures which are to be implemented and followed consistently across all its offices.

The NCF will be implemented with the assistance of State and Territory Offices over the coming months and is scheduled to roll out from 1 July 2012.

Please email Governance.Taskforce@health.gov.au for all enquiries.