Contents
- Part 1 Overview
- Part 2 Performance reporting
- Part 3 Management and accountability
- Part 4 Appendices
- Part 5 Financial Statements
Annual Report 2005–2006
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Annual Report 2005–2006
Home » Annual Report 2005–2006 » Part 3: Management and accountability
FaCSIA has in place necessary governance and management arrangements to control and improve accountability of its operations.
When FaCSIA was created in January 2006, a review of governance arrangements occurred to ensure alignment with the business of the new department. New arrangements for committees were put in place in March 2006.
Before the machinery-of-government changes in January 2006, the department’s Executive Management Group comprised the secretary (chair), deputy secretaries and all group managers. Within the Office of Indigenous Policy Coordination (OIPC ), the Senior Governance Committee was the Management Committee, which comprised the associate secretary (chair), the secretary of the Department of Immigration, Multicultural and Indigenous Affairs, the deputy secretary, group managers, and the Registrar of Aboriginal Corporations.
The Executive Management Group has now become a smaller committee, consisting of the secretary (chair), the associate secretary, deputy secretaries, the chief financial officer, the group manager corporate support and the group manager with responsibility for the FaCSIA regional network. The Executive Management Group is the principal decision-making and advisory forum supporting the secretary’s governance obligations. It meets weekly and considers strategic issues, organisational performance, resource allocation, financial and resource management, accountability requirements, and monitors the progress of major projects.
The Risk Assessment and Audit Committee reports directly to the secretary. OIPC had a group manager representative on the Department of Immigration, Multicultural and Indigenous Affairs’ Departmental Audit and Evaluation Committee.
The FaCSIA Risk Assessment and Audit Committee plays a key role in the department’s corporate governance. It helps ensure effective and efficient use of resources by reviewing the performance and operation of internal controls and performance management systems. The committee approves FaCSIA’s Internal Audit Program and advises the executive on risk, fraud, compliance and performance. It also provides assurance to the secretary on preparing and reviewing financial statements.
The Risk Assessment and Audit Committee is chaired by a deputy secretary. Membership includes three group managers and two independent members external to the department. The committee keeps the Executive Management Group informed following each meeting.
The FaCSIA Finance Committee reviews the department’s financial policies and financial control framework. The chief financial officer chairs this committee, which meets and reports quarterly to the Executive Management Group.
FaCS did not have an ethics committee as the monitoring of systemic fraud was undertaken by the Risk Assessment and Audit Committee. The OIPC Ethics Committee reviewed allegations of fraud, misconduct, misbehaviour or impropriety, and oversighted responses to such allegations.
The new FaCSIA Ethics Committee determines the ethical position of the department in any governance situation of significance, doubt or difficulty. It determines and oversees remedial action, which may result from program operation or delivery, and oversees the department’s responses to allegations of fraud, misconduct, misbehaviour or impropriety. The committee is chaired by the associate secretary and meets quarterly. Three group managers and the senior Indigenous mentor are members of the committee.
Before January 2006, the department’s Business Information Technology Committee provided leadership on information technology and infrastructure. The OIPC systems committee had a similar role.
Within broad direction set by the FaCSIA Executive Management Group, the information technology committee is now the major decision-making body for long-term information technology infrastructure and project planning for the department. It is chaired by the associate secretary and meets quarterly. Its members include three group managers, two branch managers, and the chairs of any information technology sub-committees that are operating.
Before the changes to the portfolio structure, the department’s Indigenous Senior Reference Group’s role was to set the department’s strategic directions on Indigenous issues. OIPC’s policy forum focused on developing approaches to whole-of-government Indigenous policy.
The FaCSIA Indigenous Policy Forum now supports development of the department’s approaches to whole-of-government Indigenous policy and service delivery. It is chaired by a deputy secretary and meets monthly, or as required. Membership includes a range of group managers, the Registrar of Aboriginal Corporations, and the senior Indigenous mentor.
The FaCSIA Program Design Committee is in place for a transitional period to oversee business process re-engineering, strategies for improving the department’s engagement with community services organisations and the associated change processes. The committee is chaired by a deputy secretary and after initially meeting weekly, now meets monthly. There are 10 group managers and two branch managers on the committee.
under the department’s former structure, a research committee (a sub-committee of the FaCS Executive Management Group) advised on the direction and priorities of the department’s research effort. A data committee was responsible for an overall departmental approach to data management. OIPC did not have equivalent committees as line areas dealt with research and data matters.
The FaCSIA Research and Evaluation Committee assumed the responsibilities of the previous research and data committees following the machinery-of-government changes. The committee ensures research and evaluation is focused on FaCSIA’s strategic priorities, makes decisions on new investments in research and evaluation, and oversees major research and evaluation activities. It is chaired by the deputy secretary responsible for social policy and meets monthly. Three group managers and five branch managers are on the committee.
OIPC had a people committee, which was a sub-committee of the Management Committee. under the department’s previous structure, there was no active people committee as strategic workforce and human resource issues were considered by the Executive Management Group.
A new FaCSIA People Committee is now active to ensure human resources are aligned with the department’s strategic directions and business priorities. It is chaired by the group manager, corporate support and meets quarterly. The committee includes one deputy secretary, two group managers, two branch managers, the senior Indigenous mentor and two managers from the regional network.
The Remuneration Committee was established in 2005 to advise the secretary on the development and implementation of remuneration policy, and provide advice on Australian workplace agreement offer proposals. The OIPC did not have an equivalent committee. The committee is chaired by a deputy secretary and meets monthly or as required.
The FaCSIA Senior Management Group was established in January 2006. It comprises the secretary (chair), associate secretary, all deputy secretaries, all group managers, the Registrar of Aboriginal Corporations and the senior Indigenous mentor. The group, which meets monthly, is the primary forum for senior executive consultation with group managers and considers the alignment of policy with organisational strategy.
An associate secretary and three deputy secretaries assist the Secretary, Dr Jeff Harmer, in leading and managing the department.
Associate Secretary, Wayne Gibbons, has leadership responsibility for OIPC and the department’s Information Management and Technology Group.
Each deputy secretary works with group managers who are responsible for nominated strategic outcomes and for ensuring branches and state and territory offices in each group achieve their business results.
The deputy secretaries worked with the following group managers in 2005–06:
| Glenys Beauchamp | Stephen Hunter | Bernie Yates |
|---|---|---|
| Social Policy Robyn McKay |
Housing and Disability Robert Knapp |
Program Operations Roger Barson |
| Families David Hazlehurst |
Communities Cate McKenzie |
Performance Jenny Bryant |
| Children Liza Carroll |
Corporate Support Andrew Wood |
Policy Helen Hambling |
| Women and Youth Kerry Flanagan |
Business and Financial Services Tim Youngberry |
Land and Resources Peter Vaughan |
| Leadership Development Kerrie Tim |
Under the leadership of group managers, the department’s branch managers and state and territory office managers are responsible for delivering FaCSIA programs and services.
FaCSIA finalised 14 internal audits in 2005–06 and commenced work on 11 others. These audits were from the audit work plans approved by the FaCSIA Risk Assessment and Audit Committee in 2003–04, 2004–05 and 2005–06. Two audits were deferred from the 2005–06 work plan. Ernst and Young was the primary external provider of the internal audit function. The secondary external provider, KPMG, was called upon to undertake one audit this year.
Work on the following audits was completed during 2005–06:
Work on the following audits commenced during 2005–06:
Other major activities included:
The department continued work towards greater project management maturity and knowledge through Project Management Integration Office.
Project status reporting to the Executive Management Group recommenced in July 2005 for significant projects. A series of education initiatives, including project planning sessions, one-onone education, mentoring and coaching were also implemented for staff in national and state and territory offices.
FaCSIA continued to work closely with the Department of Prime Minister and Cabinet and other Australian Public Service agencies to support a whole-of-government approach to applying project management processes and methodologies to major initiatives.
Risk management is an important part of good corporate governance and in 2005–06 the department adopted the Australian and New Zealand risk management standard (AS/NZS 4360:2004) into its risk management policy.
The FaCSIA Risk Management unit has been working closely with the Executive Management Group, Risk Assessment and Audit Committee, and the Internal Audit unit to develop operational strategies to manage exposure to risk using an enterprise-wide approach.
Achievements this year include:
FaCSIA continues to commit resources to strengthen and maintain the department’s protective security framework.
The FaCSIA Security Action Plan contributes to achieving greater compliance with the Australian Government’s Protective Security Manual 2005. A focus on increasing staff awareness has been maintained including staff training and a range of other awareness raising initiatives.
In 2005–06, FaCSIA had no events that developed into major security incidents.
FaCSIA inherited assets of significant monetary and cultural value following the abolition of the Aboriginal and Torres Strait Islander Commission (ATSIC) and the Aboriginal and Torres Strait Islander Services (ATSIS). These are currently housed in a secure location and have been fully catalogued pending a decision on future ongoing arrangements.
The department’s purchasing activities are consistent with the FaCSIA Chief Executive Instructions and internal procurement guidelines, which are in accordance with the Commonwealth Procurement Guidelines.
During 2005–06, 167 new consultancy contracts were agreed involving total actual expenditure of $12.5 million. In addition, 70 ongoing consultancy contracts were active during the year involving total actual expenditure of $27.2 million.
Summary information on consultancy services for FaCSIA and SSAT is set out below in tables 3.1 to 3.3.
| Number let | Expenditure in 2005–06 (GST-inclusive) |
|
|---|---|---|
| FaCSIA core | 167 | $12,355,036 |
| SSAT | 5 | $123,709 |
| Total | 172 | $12,478,745 |
Note: includes consultancies less than $10,000 in value
| Number ongoing | Expenditure in 2005–06 (GST-inclusive) |
|
|---|---|---|
| FaCSIA core | 68 | $27,039,137 |
| SSAT | 2 | $152,294 |
| Total | 70 | $27,191,431 |
(a) An ongoing consultancy is any consultancy let prior to 1 July 2005 that remained active in the 2005–06 financial year.
Note: includes consultancies less than $10,000 in value.
| 2003-04 | 2004-05 | 2005-06 |
|---|---|---|
| $19,819,980 (a) | $21,124,208 (b) | $39,670,176(b) |
(a) Expenditure in 2003–04 includes expenditure relating to consultancy contracts let prior to 2003–04 and consultancies less than $10,000 in value. Includes FaCS core, Child Support Agency and Social Security Appeals Tribunal.
(b) Expenditure in 2004–05 and 2005–06 includes expenditure relating to consultancy contracts let prior to 2004–05 and consultancies less than $10,000 in value. Includes FaCS core and Social Security Appeals Tribunal, but excludes expenditure related to the Child Support Agency, which has been included as part of the 2003–04 figures for historical purposes.
The Harm Prevention Charities Register was introduced on 1 July 2003 in response to the Inquiry into the Definition of Charities and Related Organisations.
Charitable institutions whose principal activity is to promote the prevention or control of behaviour that is harmful or abusive to humans can apply for entry to the register. Entry helps charities to attract public support by making donations and gifts to those charities tax deductible.
The department assessed 17 applications for the register during 2005–06 against eligibility criteria. Eligible applications were then submitted to the Minister for Families, Community Services and Indigenous Affairs and the Minister for Revenue and Assistant Treasurer for their consideration. There are currently 13 institutions listed on the register.
FaCSIA has a fraud control plan in place for the period 2005–07 that complies with the Commonwealth Fraud Control Guidelines.
During the year the department addressed its fraud control responsibilities mainly through the Audit and Fraud and Investigation Services Branches.
The Audit and Fraud Branch is responsible for providing fraud awareness training and advice on policy, guidelines and procedures to FaCSIA staff. The branch is also responsible for managing and coordinating all fraud and serious misconduct investigations.
The Investigation Services Branch is responsible for investigating matters relating to Indigenous programs and for coordinating those investigations requiring a whole-of-government response.
Certification of fraud control arrangements follows.
FaCSIA continues to promote the Australian Public Service (APS) Values and APS Code of Conduct to employees. They are complemented by FaCSIA-specific values and leadership behaviours that have immediate relevance and application to FaCSIA employees.
The APS Values and Code of Conduct together with FaCSIA’s values and leadership behaviours are published on the department’s intranet, used in orientation programs for new employees and in online courses for existing employees.
The FaCSIA Ethics Committee provides a strategic focus on the management of fraud and its prevention.
Two investigations into possible breaches of the APS Code of Conduct were completed during the year. In one matter, no breach was found. In the other, a breach was found relating to conflict of interest and inappropriate use of position and a sanction was applied.
The FaCSIA Service Charter sets out the standard of service that people who deal with the department can expect and the ways they can help it improve service to customers. The charter also helps FaCSIA staff develop a better understanding of their roles and responsibilities.
The FaCSIA Complaints Management Scheme is a component of the FaCSIA Service Charter and provides an effective means of resolving client concerns quickly and effectively, and identifying issues that require remedial action.
For 2005–06, FaCSIA registered 31 complaints. At 30 June 2006, 26 complaints had been resolved and five complaints were still being dealt with.
Of those complaints received, 24 were about service providers, three were related to government policy, three were related to service by FaCSIA and one to program design.
| Category | Total | ||||
|---|---|---|---|---|---|
| Service provider | Government policy | FaCSIA service | Program design | Received | Finalised |
| 24 | 3 | 3 | 1 | 31 | 26 |