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Annual Report 06–07

Output 1: Core Department—Management and accountability

Corporate governance

This section reports on aspects of the Core Department’s corporate governance arrangements that function in addition to the whole-of-department measures described in the Overview chapter.

The names and responsibilities of the senior executives of the Core Department are shown in Figure 6.

Governance framework

The Secretary made changes to the corporate governance framework in May 2007. The changes took effect immediately, except for changes to the Audit Committee membership, which took effect from 1 July 2007.

Figure 11 shows the relationships between the committees that made up the Core Department’s corporate governance framework in 2006–07. Details of those committees and their functions are shown in Table 4.

Table 4 Core Department—governance committees as at 30 June 2007

Members	Name	Functions	Administration
Leadership Group
Secretary (Chair)	Helen Williams	Advises on operational matters and facilitates communication between SES staff across the Core Department	Secretariat Executive Officer to the Secretary Meetings Weekly
All SES officers
Executive Management Committee
Secretary (Chair)	Helen Williams	Provides advice on policy, management issues and priorities Reviews reports from the Chief Financial Officer (monthly financial report), AS Portfolio Coordination and Corporate (organisational performance report) and other governance committees	Secretariat AS Portfolio Coordination and Corporate Meetings Weekly
Deputy Secretaries	Jeff Popple a/gKerri HartlandRona Mellor
First Assistant Secretaries
Audit Committeea
Deputy Secretary Core Department (Chair)	Jeff Popple a/g	Monitors and, where necessary, recommends improvements to: risk management identification and amelioration; internal control processes (including fraud control); the financial reporting process; the functioning of the Internal Audit Unit; the external audit process; and processes for monitoring compliance with legislation, regulations and government policy Maintains an effective working relationship with the ANAO	Secretariat Director Portfolio Coordination (with Internal Audit) Meetings: Quarterly
FAS Financial Analysis and Corporate	Chris Dainer
General Manager CRS Australia	Margaret Carmody
General Manager Child Support Agency	Matt Miller
Two independent members
AS Portfolio Coordination and Corporate (observer)
Chief Financial Officer (observer)
Chief Internal Auditor (observer)
ANAO Observer
Information Management Committee
FAS Financial Analysis and Corporate (Chair)	Chris Dainer	Provides advice to the Executive Management Committee on: strategies and policies for the effective use of information resources; and the development of information infrastructure and services that support business outcomes Oversees the development and maintenance of knowledge management and sharing Reviews the effectiveness of internal and external communications	Secretariat Director Information Technology Services Meetings Quarterly
FAS Service Delivery Operations	Alex Dolan
AS Portfolio Coordination and Corporate	Neil Skill
AS Agency Integration, OAC	Drew Baker
General Counsel	Kathryn Johnson
Executive Officer to the Secretary	Felicity Woods/ Kristine Schultz
People and Leadership Committee
FAS Policy and Strategy (Chair)	Jenny Thomson a/g	Develops capability, with particular emphasis on: corporate culture and values; succession planning, workforce planning and staff development; links between the strategic framework, business outcomes, people management strategies, and people’s day-to-day work; people management and leadership initiatives, particularly in career development, support and training; flexible workplace practices that help people to balance their work and personal lives; and high-level strategic people management and leadership needs	Secretariat Director People Strategies Meetings Quarterly
FAS Financial Analysis and Corporate	Chris Dainer
AS Portfolio Coordination and Corporate	Neil Skill
AS Access Card Communications	Barbara Flett
AS Marketing and Communication	Jenny Barbour a/g
AS Compliance and Development	Di White
Executive Officer to the Secretary	Felicity Woods/ Kristine Schultz
Security and Business Continuity Committee
FAS Service Delivery Operations (Chair)	Alex Dolan	Oversees, monitors and reports on the overall management of security risks and business continuity management Prepares responses to the Australian Government Annual Protective Security Survey Implements security education and training Instigates new distribution controls, where appropriate Reviews the protective security environment against the requirements of the Protective Security Manual Annually reviews the Protective Security Plan Maintains a robust Business Continuity Management Plan, including a pandemic influenza supplement Maintains a Business Continuity Procedure Manual for members of the DHS Business Continuity Management Central Coordination Team Maintains Business Continuity Quick Roadmaps for managers and staff Maintains the Emergency Management Plan	Secretariat Agency Security Adviser Meetings Quarterly
Chief Technology Architect, OAC	Marie Johnson
FAS Financial Analysis and Corporate	Chris Dainer
AS Portfolio Coordination and Corporate	Neil Skill
Executive Officer to the Secretary	Felicity Woods/ Kristine Schultz
Chief Internal Auditor (observer)

ANAO = Australian National Audit Office, AS = Assistant Secretary, FAS = First Assistant Secretary, OAC = Office of Access Card,
SES = Senior Executive Service, a/g = acting

^a The Audit Committee is responsible for CSA and CRS Australia as well as the Core Department.

Internal scrutiny

Internal audit, risk management and fraud prevention

The Core Department has taken a comprehensive approach to risk management, including business continuity, fraud, security, operations and auditing, by integrating its management of these risks under its Strategic Internal Audit Plan 2006–09. The Core Department plans to test its business continuity plan in 2007–08.

In 2006–07, the Core Department identified operational and strategic risks through strategic risk assessments, and implemented action plans and strategies to manage these risks. Strategic risk assessments were updated in December 2006 and May 2007.

The Audit Committee provides assurance that risks are being identified and addressed across the whole of DHS.

Management of ethical standards

The Core Department explicitly embraces the Australian Public Service (APS) Values and Code of Conduct in all its corporate documents and practices, including performance assessments. Training in the APS Values and Code of Conduct is provided in the Core Department’s induction programmes for new staff and through other courses such as those run by the Australian Public Service Commission (APSC).

Throughout 2006–07, KPMG provided independent advice to government to ensure that the access card is implemented in an efficient and cost-effective manner. KPMG implemented an assurance framework for monitoring the Access Card Programme, reviewing the proposed programme implementation plan to ensure that it is comprehensive and has an effective control framework and performance reporting regime.

External scrutiny

Judicial or administrative decisions

In 2006–07, there were no judicial decisions or decisions of administrative tribunals that had a significant impact on the operations of the Core Department.

Audits of financial statements by the Australian National Audit Office

In the interim audit of the financial statements for 2006-07 (Audit Report No 51 2006-07) DHS received three B (or moderate) findings. This was an improvement on the four B findings received in the ANAU'S report for 2005-06. Of the three B findings, one–reconciliation processes—related to both the Core Department and CSA (the other two related to CSA only). The Core Department has addressed the issue, which related to sign-off procedures, and considers it resolved. See Output 2 for details of the other two B findings.

Reports by the Commonwealth Ombudsman or parliamentary committees

In 2006–07, no reports were made on the operations of the Core Department by the Commonwealth Ombudsman.

Both the Core Department and Centrelink provided responses to the Joint Committee of Public Accounts and Audit’s report No. 407, tabled in September 2006, which examined the implementation of findings from a number of previous audits on Centrelink systems conducted by the Australian National Audit Office.

On 7 February 2007, the Human Services (Enhanced Service Delivery) Bill 2007 was referred to the Senate Standing Committee on Finance and Public Administration to examine:

the intended scope and purposes of the card; the information to be included in the card register and card’s chip and on the card’s surface; and the range of offences aimed at prohibiting persons requiring an access card for identification purposes and prohibiting other improper uses of the card.

Public hearings were held in March 2007 in Sydney, Melbourne and Canberra. DHS appeared before the committee at its meetings in Sydney and Canberra.

DHS coordinated the Australian Government submission to the inquiry and provided it to the committee on 28 February 2007. On 9 March 2007, DHS submitted a supplementary submission on key issues raised in the public hearings.

The Senate committee report of 15 March 2007 included one recommendation:

that the bill be combined with the proposed second tranche of legislation for the access card system into a consolidated bill.

The Minister announced his support for this recommendation in a media release of 15 March 2007.

On 21 June 2007, exposure drafts of the consolidated access card legislation were released by the Minister.

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