Annual Report 2005–06
The department: Corporate governance
Page contents:
- Corporate goals and values
- The Executive
- Governance framework
- Risk management, internal audit and fraud control
- Ethical standards
- Social justice and equity
This section reports on corporate governance matters that are common to the core department, CSA and CRS Australia.
Corporate goals and values
The governance model supports the Secretary in the management of the department and in assisting the Minister for Human Services to fulfil his accountability obligations.
This in turn helps the department meet its obligations, including legislative requirements placed on the department as a part of the Australian Public Service (APS).
APS Values and Code of Conduct
The core department, CSA and CRS Australia all explicitly embrace the APS Values and Code of Conduct. Commitment to the Values and Code of Conduct is highlighted in the corporate plans, certified agreements, Australian Workplace Agreements (AWAs), client and service charters, Chief Executive Instructions and the core department’s own values and behaviour statements. Each entity provides training for staff in the APS Values and Code of Conduct.
The Executive
Executive responsibilities
The Secretary is directly responsible to the Minister for Human Services for the leadership, management and sound governance of DHS, and for shaping its future. She is responsible for delivering strong organisational performance by determining priorities and resource allocations.
Six committees operate to assist the Secretary to fulfil her responsibilities. The committees make recommendations but ultimate authority remains with the Secretary (for further information, see Table 2).
The General Manager of CSA is responsible for the leadership, sound management and performance of CSA within the delegations established by the Secretary. This position also holds the statutory office of the Child Support Registrar, which has legal responsibility for the administration of child support legislation.
The General Manager of CRS Australia is responsible for the leadership, sound management and performance of CRS Australia within the delegations established by the Secretary.
Executive remuneration
Salary ranges for executive employees are provided at Appendix 1.
Information on executive staff members who received, or were due to receive, total remuneration of $130,000 or more is set out in Note 14 to the financial statements in this report.
Governance framework
Agency Heads Meeting
The Agency Heads Meeting provides a forum to discuss and resolve matters relating to the six agencies and the core department. This is a monthly meeting chaired by the Secretary and attended by all heads of agencies. Table 1 shows the composition of the Agency Heads Meeting.
Audit Committee
The DHS Audit Committee has audit oversight for the core department, CSA and CRS Australia. The other agencies within Human Services—Centrelink, Medicare Australia, Australian Hearing and Health Services Australia—have their own audit committees.
The DHS Audit Committee reviews, monitors and recommends improvements in the corporate governance framework of the core department, CSA and CRS Australia. The Committee’s focus is on internal controls, risk management, compliance and financial reporting. This role includes oversight of internal and external audit processes within the department. Internal audit services to the core department, CSA and CRS Australia are provided through a contract.
The Committee has overseen the integration of the corporate governance frameworks of the core department, CSA and CRS Australia into a wider departmental governance framework consistent with the Australian National Audit Office (ANAO) better practice guide, Public Sector Audit Committees.
Mr Geoff Leeper, Deputy Secretary of the core department, chairs the Audit Committee and is supported by two independent members, Ms Jenny Morison and Mr Len Early, who have specialist skills in financial reporting, risk management and corporate governance, and the General Managers of CSA and CRS Australia. The DHS Chief Financial Officer is an attendee, as is a representative from the ANAO. Committee secretariat services are provided by the Chief Internal Auditor. Table 1 shows the composition of the Committee.
Membership of the Audit Committee is determined by the Secretary in consultation with the Executive Management Group and is for a fixed term, as determined by the Secretary. The Audit Committee meets every two months, and as required.
Risk management, internal audit and fraud control
The core department actively promotes risk management as an integral part of the DHS business planning process. In the year to 30 June 2006, the core department identified operational and strategic risks and is implementing action plans and strategies to manage these risks.
In a cooperative arrangement with Comcover, the core department has developed a phased approach to preparing its Fraud Control Plan, involving preparation of an Overarching Fraud Control Plan covering the significant fraud risks faced by the core department, CSA and CRS Australia.
The core department has taken a comprehensive approach to risk—business continuity, fraud, security, operational and audit—by integrating its management of these risks under its Strategic Internal Audit Plan for 2006–09. The core department has developed a suite of business continuity plans in preparation for any non-Information Technology disasters.
CSA and CRS Australia report on aspects of risk management, internal audit and fraud control specific to them in their respective ‘Management and accountability’ sections. All significant governance documents, including risk management, internal audit reports and fraud control plans, are reviewed by the DHS Audit Committee.
Ethical standards
All members of the core department, CSA and CRS Australia are required to uphold the ethical values embodied in the Public Service Act 1999 and the APS Values and Code of Conduct. This is clearly articulated in a number of the core department’s documents. Those documents include the core department’s people management policies and security plans; the Chief Executive Instructions; and the Declaration of Confidentiality, Security and Privacy.
The requirement to uphold the highest standards is reinforced on a regular basis at staff meetings and underpins the charters of the management committees.
Social justice and equity
The core department recognises the importance of ensuring that Australians have equitable access to the full range of social and health-related services, and that people are not disadvantaged by service delivery arrangements. This has been a key consideration in developing improved service delivery strategies.
The core department in developing communication strategies takes account of culture, language, disability and remote location requirements of Human Services’ customers and the wider community. The core department’s website, updated in June 2006, is compatible with browsers used by people with impaired vision.