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Annual Report 06–07
Output 3: CRS Australia—Management and accountability
Corporate governance
This section reports on aspects of CRS Australia’s corporate governance arrangements that function within the whole-of-department measures and the Secretary’s overall responsibility described in the Overview chapter.
The names and responsibilities of the senior executives of CRS Australia are shown in Figure 13.
Governance framework
Committees
A number of committees assist in the effective governance of CRS Australia, as described in Table 11.
Accountability
The General Manager of CRS Australia is accountable to the Secretary of DHS for the overall performance of the agency, including its financial and risk management. The General Manager and Secretary meet regularly to ensure effective oversight and early identification of strategic issues. The General Manager attends meetings of the DHS Audit Committee.
The CRS Australia Executive meets with the Secretary of DHS each month to review CRS Australia’s performance from a governance perspective, including financial performance and strategic issues.
| Members | Functions | Meetings | |
| Executive Committee | |||
| General Manager (Chair) |
Margaret Carmody | Develops and implements CRS Australia’s Monitors, reviews and manages progress Seeks and responds to staff, job seeker and Actively identifies and manages risks Approves national policies Monitors financial performance and |
Fortnightly |
| Deputy General Manager Corporate |
Michael Callan | ||
| Deputy General Managers Service Delivery |
Carl PrincehornSusan Kable | ||
| Strategic and Business Group | |||
| General Manager (Chair) | Margaret Carmody | Makes decisions on national issues where Considers substantial issues relating to business operations Monitors and provides input to national projects, Communities of Practice (Networks of Excellence) |
Every six weeks |
| Deputy General Managers | Michael Callan Susan Kable Carl Princehorn |
||
| National Managers | Jeremy Gregson Chris Harvey Gabriel Herr Alison Lane Geoff McInnes Patricia McAlpine |
||
| Divisional Managers | Ademola Bojuwoye Jan Byers Peter Davies Rowena Hodgson Ian McInnes Trevor Wilkins Jacci Young |
||
| Chief Financial Officer | Peter Hausknecht | ||
| Information Technology Investment Board | |||
| General Manager (Chair) |
Margaret Carmody | Plays a key role in information technology (IT) Has a strategic, high-level and financial Ensures that IT is strategically aligned to Oversees the IT asset replacement strategy Provides leadership in the evaluation and prioritisation of IT projects |
Quarterly |
| Deputy General Managers | Michael Callan Susan Kable Carl Princehorn |
||
| National Manager Information Technology |
Jeremy Gregson | ||
| Chief Financial Officer | Peter Hausknecht | ||
| An external representative | Vipan Mahajan | ||
| Risk Management Committee | |||
| Deputy General Manager Corporate (Chair) |
Michael Callan | Sets the direction of, monitors and reviews the risk management, fraud, audit and protective security control environments Reviews the risk register on a quarterly basis Develops the forward audit programme for Executive consideration Oversees business continuity management plans and activities Develops and monitors risk management, fraud, audit and protective security policies and programmes of work Provides advice and guidance on risk management issues as required |
Quarterly |
| National Manager Information Technology |
Jeremy Gregson | ||
| National Risk Manager (Agency Security Adviser) |
Adam Smith | ||
| IT Security Adviser | Chris Brookes | ||
| A divisional manager | Jacci Young | ||
| A regional manager | Vacant | ||
| Independent representatives from the Core Department and CSA |
Ray Gunning Tony Hanrahan |
||
| An independent observer | Tony Hoff | ||
| Occupational Health and Safety Committee | |||
| Divisional Manager (Chair) | Peter Davies | Oversees the development of OH&S policies Oversees the implementation, operation and Promotes the concept of a healthy workforce, safe Reviews statistics on hazardous incidents, injuries and illnesses related to the work environment and system of work Promotes efficiency through the reduction of workplace hazards, accidents and injuries and minimising personal and organisational losses Oversees the application of Commonwealth and national OH&S regulations, standards and codes of practice |
Quarterly |
| National OH&S Advisor | Andrew Lott | ||
| Management representative | Janelle Graham | ||
| National Injury Prevention Coordinator | Sharon Leahy | ||
| Health and safety representatives | Annie Moller Sandina Bailey Sandra Samarin Krysten Bury Jaspreet Cowley |
||
Note: Details of the Audit Committee for the Core Department, CSA and CRS Australia are shown in Table 4.
Internal scrutiny
Internal audit
CRS Australia’s internal audit and quality assurance processes are used strategically to identify learning and development opportunities, undertake improvements to overall effectiveness and provide assurance of consistency in decision making, in particular as it applies to decisions under the Disability Services Act 1986 and the Financial Management and Accountability Act 1997 (FMA Act).
In 2006–07, extensive work was completed to ensure CRS Australia met new certificate of compliance requirements under the FMA Act. The work included education of managers and delegates, additional audit processes and certification by managers that processes under their control had been reviewed for compliance. A breach register was established for reporting purposes.
CRS Australia also conducted a number of internal audits and participated in a variety of cross-agency audits, including audits of financial statements.
CRS Australia was again certified through the annual surveillance and certification audit conducted against the Disability Service Standards on behalf of the Department of Families, Community Services and Indigenous Affairs. No major non-conformities were identified during the audit.
CRS Australia maintains client files and other files that contain a range of personal information, some of which can be of a sensitive nature. CRS Australia has well-developed systems and processes to ensure an appropriate level of privacy is maintained. An internal review conducted in 2006–07 identified scope to improve compliance with privacy best practice, and its recommendations are being implemented.
All managers completed the twice-yearly self-audit package, which assists them to ensure that the business units for which they are responsible comply with relevant statutory and internal policy requirements. Self-audits were undertaken in November 2006 and April 2007.
CRS Australia monitored the publication of new guidelines and whole-of-government Australian National Audit Office (ANAO) audit reports to ensure that compliance and best practice were maintained within the organisation.
Risk management
CRS Australia’s risk management plan is informed by risk assessments undertaken across all areas of the organisation, including staff management, business planning, continuity and management of major projects, change processes, and occupational health and safety (OH&S). During 2006–07, a strategic and operational risk assessment was conducted to determine the overall risk profile for CRS Australia and appropriate mitigation strategies were implemented.
As part of the organisation’s commitment to continuous improvement, CRS Australia participates in the annual Comcover risk management benchmarking survey to ensure that process and practices reflect relevant legislation and standards. In 2007, CRS Australia obtained an eight out of 10 benchmark rating, which placed the organisation in the top five out of 125 Australian Government agencies covered by Comcover.
The membership and functions of CRS Australia’s Risk Management Committee are outlined in Table 11.
Fraud prevention
As part of its responsibility to protect the public interest, CRS Australia maintains a fraud control programme that complies with the FMA Act and the Commonwealth Fraud Control Guidelines.
In 2006–07, the National Fraud Control Plan was reviewed and updated with the endorsement of the DHS Audit Committee. As part of the fraud control programme:
- fraud risk assessments and fraud control plans are prepared;
- appropriate fraud prevention, detection, correction, investigation and reporting procedures and processes are undertaken by qualified staff;
- data on fraud is collected and reported annually; and
- all processes and procedures are actively reviewed and, where appropriate, updated in accordance with CRS Australia’s continuous improvement strategies.
Ten matters of fraud were investigated during the year with two matters not yet resolved. The other matters involved five external and three internal allegations of fraudulent activity, all of which were thoroughly investigated and reported to the appropriate delegate. Recommendations on appropriate sanctions and prevention strategies were approved and implemented. Where required, the fraud control plan and risk register were also updated.
Security
CRS Australia’s protective security framework is based on detailed risk assessments, security reviews of offices, and assessments of other threats and weaknesses, as required by the Australian Government’s Protective Security Manual and the Australian Communications Security Instructions (ACSI 33).
Protective security activities in 2006–07 included a number of reviews of metropolitan and rural service delivery sites. Although no major control weaknesses or material risks were identified by the reviews, a number of recommended additional controls and remediation strategies were implemented.
Management of ethical standards
All new staff members of CRS Australia receive a copy of the Australian Public Service (APS) Values and Code of Conduct as part of their welcome kit when they begin work. The values and code are reinforced through staff induction training, which is conducted at a national level, and in local presentations to staff by managers.
Managers and other staff are required to follow the APS Values and Code of Conduct both in their delivery of services and in their interactions with each other. Policies and procedures relating to breaches of the code are available to all staff on the CRS Australia intranet—CRSNet.
During 2006–07, there were 10 investigations for breaches of the APS Code of Conduct. Nine staff members were found, on the balance of probabilities, to have breached the APS Code of Conduct and one investigation is still in progress. Some staff members were found to have multiple breaches or were given multiple sanctions. The sanctions imposed were two terminations of employment, five reprimands, and one deduction from salary by way of a fine. No sanction was applied in relation to two staff who were found to have breached the APS Code of Conduct; however, an "other" management action was applied to one of these staff members.
Resolution of complaints
CRS Australia’s complaints management process follows a three-tier resolution model. Complaints are made initially at the regional level, and escalated to divisional and national levels as required.
During 2006–07, there were five internal reviews of decisions. One related to a decision to close programmes, and four related to decisions not to waive programme costs. All requests for review were resolved.
The number of internal reviews was 40 per cent lower in 2006–07 than in the 2005–06 reporting period.
External scrutiny
Under the Disability Services Act 1986, a person affected by a decision, or failure to make a decision, of CRS Australia can appeal first to the Secretary of DEWR or their delegate, then to the Administrative Appeals Tribunal (AAT) if the matter is not resolved to their satisfaction. Amendments to the Act will change review and appeal processes from 1 July 2007.
Administrative Appeals Tribunal
Two clients lodged applications for the review of CRS Australia decisions with the AAT in 2006–07. One application was withdrawn and the other is continuing.
Australian National Audit Office
The Australian National Audit Office (ANAO) conducted one audit involving CRS Australia in 2006–07 in addition to the routine audits of the financial statements. This was a follow-up audit examining superannuation for independent contractors. CRS Australia also participated in the ANAO survey of labour hire arrangements.
One finding which arose from the audit of superannuation for independent contractors has been addressed and remediation action has been implemented to ensure best practice is achieved.
Commonwealth Ombudsman
The Commonwealth Ombudsman’s office received 31 inquiries about CRS Australia. Of these, two were investigated and resolved. No deficiencies were found in CRS Australia’s administration.
Human Rights and Equal Opportunity Commission
The Human Rights and Equal Opportunity Commission (HREOC) made one inquiry into a matter related to CRS Australia during 2006–07. The matter was terminated on the grounds that it was misconceived.
CRS Australia was advised by HREOC of a number of other complaints made by one individual, all of which were terminated as being misconceived and/or lacking in substance. The individual has filed applications in the Federal Magistrates Court, naming CRS Australia as one of a number of respondents, as a result of the termination of these complaints.