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Annual Report 2003 - 2004
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Annual Report 2003 - 2004
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Home > Contents > Chapter 7 - Governance and Accountability Chapter 7 - Governance and AccountabilityOverviewThe department has in place an overall structure or framework of governance which aims to ensure it can fulfil its responsibilities with due diligence and accountability. Efficient and dynamic management structures, planning and reporting processes and internal controls enable:
Figure 2.2 provides details of the structure of the department at 30 June 2004 and the names and responsibilities of the senior executives. The relationship between the way the department is structured and the outcome and output structure is demonstrated in Figure 2.3. Senior Management Committee SystemA senior management committee system (see Figure 7.1) provides advice and support to the department’s senior executive. The committees reflect the department’s strategic approach to its business. Three key committees report directly to the Executive team:
Four strategic committees provide advice and support to the Executive, through the Corporate Leadership Group, in setting the department’s agenda and direction on:
Figure 7.1: Senior management committee system
The department’s Corporate Leadership Group Back-Row: Mr Colin Walters, Mr Steve Irwin, Mr Shane Williams, Ms Linda Staite, Mr Tony Kwan, Dr Evan Arthur, Mr Tony Greer, Mr Bill Burmester, Mr Ewen McDonald, Mr Craig Storen, Mr George Kriz, Mr Chris Evans; Front Row: Ms Mary Johnston, Ms Fiona Buffinton, Dr Jeff Harmer, Dr Wendy Jarvie, Ms Anne Baly; Absent: Ms Lisa Paul, Mr Grahame Cook, Prof Graham Durant, Ms Aurora Andruska, Ms Jessie Borthwick. Performance Management FrameworkThe department integrates corporate planning processes through its performance management framework (see Figure 7.2). The framework combines the department’s business priorities with enabling strategies such as people management, collaboration with stakeholders, research and evaluation, risk management and information technology. It is directly aligned with the Outcomes and Outputs in the Portfolio Budget Statements as follows.
Figure 7.2: DEST Performance Management Framework
Ethical StandardsThe Public Service Act 1999 sets the framework for ethical standards within the department. Ethical standards govern how we do business in terms of:
A commitment to ethical standards is firmly embedded in the department’s ‘Open for Business’ principles. Through this and promotion of the Australian Public Service Values and Code of Conduct, ethical standards are an integral part of the department’s core leadership behaviours. Leadership expectations are described in the leadership protocol. Values and expected standards of behaviour are incorporated into employee Performance and Development Plans. Information on the department’s ethical standards, and expectations of individuals or companies who are contracted to provide services to the department, is included in standard contracts and provided to all new employees during induction sessions. The department’s leadership protocol articulates leadership expectations. DEST Senior Executive employees are expected to:
Individual performance assessment for Senior Executive and Executive Level 2 staff is based on how well these expectations are met. Procurement, Assurance and Legal ServicesThe Procurement, Assurance and Legal Group provides high quality legal and legislative services, risk management, continuity management, corporate contract management and procurement management for the department. The Group focuses on providing high quality and timely legal services to the Ministers, the Executive and the department. It discharges the department’s Freedom of Information, Privacy, Human Rights and Equal Opportunity Commission and Ombudsman obligations including compliance and reporting. It also manages the department’s portfolio legislation programme. The Group is responsible for developing and promulgating a risk management approach (including continuity management planning) into the department’s business units. Achievements in 2003-04 were:
Risk ManagementThe department has in place appropriate mechanisms to manage general business risk as well as fraud risk. General business riskThe department’s risk management processes and policies have been developing and operating for more than five years and with strong executive support a risk awareness culture has evolved. The department has developed a number of policies, procedures and tools to promote effective risk management. The principal aim of applying risk management in the department is to achieve better outcomes for the Ministers, staff, services, programmes and clients. Formalised risk management is central to being able to demonstrate the ‘efficient, effective and ethical’ use of resources required by the Financial Management and Accountability Act 1997. Risk identification in the department occurs at several levels.
Financial risk in the department is managed in accordance with the overall risk management framework. There are:
Risk management policy is maintained and promulgated by the Chief Lawyer. This strongly links risk management, procurement policy and legal advice, and maintains an emphasis on applying risk management principles to all departmental programmes and support activities. Our regular risk assessment processes indicate the department is a relatively low risk organisation. Our risk assessments have identified that the department’s main sources of risk, in decreasing order of importance, arise from:
Monitoring of risk management occurs through:
During 2003-04 the department started a project to upgrade its emergency and continuity management planning. The Corporate Leadership Group has endorsed a new National Office Emergency and Continuity Management Plan. Fraud riskThe department is required to assess fraud risk against sources of risk identified in the Commonwealth Fraud Control Guidelines. The department has in place a fraud control plan with fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the needs of the department and comply with the Commonwealth Fraud Control Guidelines. The plan is periodically updated and available to staff through the Risk Management Helpshop on the department’s intranet site. Audit and InvestigationsAudit and Investigations contributes to and promotes integrity, accountability and strong governance arrangements across the department’s activities. It:
Audit and Investigations works under the broad direction of the independent Audit and Business Assurance Committee. The committee is chaired by the Deputy Secretary responsible for audit and has two other external members appointed by the Secretary. The committee provides the Secretary with assurance in relation to his responsibilities for financial reporting, maintaining an effective system of internal controls, ensuring strong performance and accountability, and reviewing specific matters (internal or external) that may arise for audit processes. In line with the Financial Management and Accountability Act 1997, Audit and Investigations focuses on the efficient, effective and ethical use of resources in its audit, compliance and investigation activities. In undertaking its work, Audit and Investigations works closely with the Australian National Audit Office and other key external stakeholders. Internally, they work closely with line managers including those in state offices. Financial ManagementFinance Branch provides advice on, and performs tasks associated with, the management of Administered and Departmental resources and related policy. The department has a strong record in financial management. An appraisal of the financial performance of the department over 2003-04 follows. Detailed financial statements are provided at Appendix 9. Asset ManagementThe department’s non-financial assets are predominantly the computer hardware and software needed to deliver the department’s outputs. As a result of assuming responsibility for Questacon on 1 July 2003 from the Department of Communications, Information Technology and the Arts, the department acquired assets with a net book value of $36.8 million. The significant assets are Questacon’s building and exhibits housed in the Centre in Canberra and those available for touring exhibits. A separate Questacon report is in Chapter 6. The department’s asset replacement strategy ensures adequate budget and planning is in place for replacing assets as they come to the end of their useful lives. The department’s land, buildings, plant and equipment were revalued to fair value at 30 June 2004. Revaluations undertaken in the past were performed in accordance with the deprival basis of valuation. The change in accounting policy to fair value is required by Australian Accounting Standard AASB 1041—-Revaluation of Non-current Assets. PurchasingThe Procurement, Assurance and Legal Group implements business rules and systems that enhance the efficiency and integrity of the department’s procurement processes. It ensures the department’s external reporting obligations concerning procurement are met. It also manages the department’s main corporate contracts.
The department’s Financial Management Manual and Procurement Manual detail processes for procuring goods and services that comply with Commonwealth Procurement Guidelines. The business processes outlined in these manuals, in conjunction with the department’s Procurement Management Systems (PROMISe and BUYiT), ensure the department’s procurement activities are effectively monitored and accurately reported. In addition, the department’s complex or high value procurements (over $100 000) require additional internal clearance to provide further assurance that core purchasing policies and principles (including industry development) are met. The department introduced BUYiT on 1 March 2004, and began phasing out the previous procurement system, PROMISe. BUYiT was developed with direct links to the department’s Financial Management System (SAPfihre). This will further enhance the department’s procurement process, performance management and reporting capacity. ConsultantsIn 2003-04, the department undertook 274 consultancies with expenditure of $17.3 million, including 160 new consultancies let in 2003-04 with a total contract value of $14.5 million. Details of consultancies let in 2003-04 are listed in Appendix 4. Payments to advertising and market research organisationsIn 2003-04, the department made payments to market research and polling and media advertising organisations to assist in achieving business outcomes. Details of payments made are listed in Appendix 3. Competitive tendering and contractingNo new competitive tendering and contracting activities were carried out during 2003-04. During the previous reporting period (to June 2003), the department exercised its option to extend the existing panel arrangement for external legal services until June 2005. The total cost for external legal services in 2003-04 was $2.3 million. This panel arrangement has continued to enable the department to get the best value for money in the legal services market place, as well as retaining its ability to call on a broad range of expertise. External scrutinyExternal scrutiny of the department is ongoing and comes from many sources including the Commonwealth Ombudsman, the Compensation for Detriment for Defective Administration Scheme, the courts, the Social Security Appeals Tribunal, the Administrative Appeals Tribunal, the Human Rights and Equal Opportunity Commission, the Federal Privacy Commissioner, freedom of information enquiries and the Auditor-General. Complaints to the Commonwealth OmbudsmanDuring 2003-04, the Commonwealth Ombudsman received 22 complaints about the department, two fewer than in the previous year. During the year, 23 complaints were finalised covering 24 issues. The Commonwealth Ombudsman investigated seven issues and made no finding of defective administration against the department. Compensation for Detriment for Defective Administration SchemeThis scheme allows people adversely affected by the maladministration of an Australian Government agency to receive compensation when they have no legal redress. The department received no claims and made no payments under this scheme in 2003-04. Settlement of legal claims against the CommonwealthIn accordance with the Legal Services Directions issued by the Attorney-General, and on the basis that there was a meaningful prospect of liability, the department made one payment of $120 000 in 2003-04, by way of settlement of legal proceedings concerning the alleged exposure of an ex-RAAF serviceman to ionising radiation in the early 1960s. Federal Court, Supreme Court of New South Wales, Supreme Court of QueenslandDuring 2003-04 the State of South Australia and a Native Title claimant instituted legal proceedings in the Federal Court claiming that the Commonwealth’s compulsory acquisition of land in South Australia for a low level nuclear waste repository was unlawful. The applications were unsuccessful in the first instance. Appeals were heard by the Full Court of the Federal Court in May 2004. On 24 June 2004 the Full Court handed down a unanimous decision upholding the appeals and deciding that the acquisition was unlawful. Further information on establishment of national radioactive waste management facilities can be found under Strategic Priority 14 in Outcome 3. In 2002-03 the University of Melbourne instituted proceedings in the Federal Court, challenging the Minister for Education, Science and Training’s 2003 funding allocation decision under the Research Training Scheme. This matter is still before the Court. During 2003-04, three Federal Court proceedings concerning alleged exposure to ionising radiation relating to the British nuclear tests at Maralinga and the Monte Bello Islands in the 1950s were discontinued. Legal proceedings against the Commonwealth, as represented by the department, and also against the Australian Institute of Marine Science, were instituted in the Supreme Court of Queensland in 1999-2000. The proceedings concerned allegations of negligence and/or breach of statutory duty arising out of a death by drowning. The plaintiffs discontinued their action against the Commonwealth during 2003-04. In the District Court at Mount Isa, Queensland, legal proceedings were instituted against the Commonwealth as represented by the department, in connection with alleged unpaid rent for premises. This matter has yet to go to trial. Social Security Appeals TribunalThe Social Security Appeals Tribunal is a first tier of external review of certain decisions made by Centrelink on behalf of the department about education payments. The Social Security Appeals Tribunal is an independent body and its role is to provide a mechanism of review that is fair, economical, informal and quick. Applicants dissatisfied with decisions of the Social Security Appeals Tribunal have a further right of appeal to the Administrative Appeals Tribunal. A total of 15 decisions were made by the Social Security Appeals Tribunal in 2003-04 relating to AUSTUDY, ABSTUDY and Assistance for Isolated Children. AUSTUDY During 2003-04, the Social Security Appeals Tribunal made three decisions relating to administration of AUSTUDY prior to 1 July 1998. Of these decisions:
ABSTUDY During 2003-04, the Social Security Appeals Tribunal made 11 decisions relating to ABSTUDY. Of these decisions:
Assistance for Isolated Children During 2003-04, the Social Security Appeals Tribunal made one decision relating to the Assistance for Isolated Children Scheme. The application was set aside. Administrative Appeals TribunalTwelve applications were lodged in 2003-04 with the Administrative Appeals Tribunal to review decisions relating to education payments made by the department. There was one application made by a registered provider of education to overseas students challenging a decision to cancel its registration. Twelve applications for the review of decisions were finalised in 2003-04. Open Learning Deferred Payment Scheme No applications for review of decisions relating to the remission of an open learning study period debt were lodged or finalised in 2003-04. AUSTUDY The following figures relate to applications for review of decisions under the Student Assistance Act 1973 relating to overpayments of AUSTUDY prior to 1 July 1998. No applications were lodged in 2003-04. Two applications were finalised in 2003-04. In both cases the applicants were individuals. The applications were finalised in the following manner:
ABSTUDY Three applications for review of decisions under the Student Assistance Act 1973 relating to overpayments of ABSTUDY were lodged in 2003-04. One application was finalised in 2003-04. The decision under review was set aside in accordance with terms of agreement lodged by the parties under s.42C(1) of the Administrative Appeals Tribunal Act 1975. Assistance for Isolated Children No applications for review of decisions under the Student Assistance Act 1973 relating to overpayments of assistance for isolated children were lodged or finalised in 2003-04. Higher Education Contribution Scheme (HECS) semester debt remission During 2003-04, nine applications for HECS debt remission were lodged. Nine applications were finalised in 2003-04 in the following manner:
Education Services for Overseas Students During 2003-04, one registered provider of education to overseas students made an application to the Tribunal challenging a decision to cancel its registration. The tribunal upheld the department’s decision. Higher Education Contribution Scheme and Open Learning Deferred Payment Scheme—remission of debtsUnder the Higher Education Funding Act 1988, the Secretary, or a delegate of the Secretary, can remit debts relating to either of these schemes for students in special circumstances. These circumstances may involve illness, work or personal reasons. If remission is not granted, the student can seek a review and subsequently can appeal the matter to the Administrative Appeals Tribunal. The Secretary, or delegate, can reconsider an application to take into account any new information provided to the tribunal. Other information on HECS can be found under Strategic Priority 9 in Outcome 2. During 2003-04, 2947 applications for remission of debts relating to either scheme were received. The following list of outcomes shows cases that were finalised or are at the stage of processing (this list also includes 338 cases remaining from 2002-03):
During 2003-04, 223 applications for review of primary remission decisions were received. The following list of outcomes of these applications also includes 10 cases remaining from 2002-03:
Applications were made to the Administrative Appeals Tribunal for reviews of decisions relating to HECS. These are reported above (see above—Administrative Appeals Tribunal: Higher Education Contribution Scheme (HECS) semester debt remission). During 2003-04, two applications for reconsideration of review decisions made by the Secretary, or delegate, were received. Both cases were decided in favour of the applicants and were remitted. Education Services for Overseas StudentsUnder the Education Services for Overseas Students Act 2000, the Minister, or a delegate of the Minister, can impose a range of sanctions on registered providers of education to overseas students for breaches of the Act or the National Code of Practice for Registration Authorities and Providers of Education and Training for Overseas Students. These sanctions include cancelling or suspending a registered provider’s registration for any one or more courses for one or more states, and imposing conditions upon the registered provider’s registration generally or for one or more courses for one or more states. Information on the regulatory framework for the education and training export industry can be found under Strategic Priority 15 in Outcome 3. During 2003-04, three registered providers had their registration suspended for all courses in one state and two registered providers had their registration cancelled for all courses in one state. During 2003-04, 70 registered providers had their registration automatically suspended or cancelled. Of these:
Human Rights and Equal Opportunity CommissionThe Human Rights and Equal Opportunity Commission did not refer any complaints to the department in 2003-04. Federal Privacy CommissionerThe Federal Privacy Commissioner did not refer any complaints to the department during 2003-04. The privacy rights of individual clients are safeguarded in contracts entered into with service providers, for example, Jobs Pathway Providers and New Apprenticeships Centres. These contracts specifically prohibit providers from breaching the Information Privacy Principles contained in s.14 of the Privacy Act 1988. The Federal Privacy Commissioner made no reports to the Minister in accordance with s.30 of the Act and no determinations under s.52 of the Act. Freedom of informationIn 2003-04, the department handled 27 freedom of information requests. Of these:
Further data and information on the department’s freedom of information processes, including contact details for enquiries, are available in Appendix 2. Reports by the Auditor-GeneralIn 2003-04, the Australian National Audit Office did not table any reports in Parliament that directly referred to the department’s operations. The Australian National Audit Office did, however, table 16 reports that made recommendations relevant to the department’s operations. Those reports were: Audit Report No. 3, 2003-04 Management of Risk and Insurance; Audit Report No. 5, 2003-04 The Senate Order for Departmental and Agency Contracts (Autumn 2003); Audit Report No. 7, 2003-04 Recordkeeping in Large Commonwealth Organisations; Audit Report No. 11, 2003-04 Annual Performance Reporting; Audit Report No. 19, 2003-04 Property Management; Audit Report No. 22, 2003-04 Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2003; Audit Report No. 24, 2003-04 Agency Management of Special Accounts; Audit Report No. 25, 2003-04 Intellectual Property Policies and Practices in Commonwealth Agencies; Audit Report No. 30, 2003-04 Quality Internet Services for Government Clients—Monitoring and Evaluation by Government Agencies; Audit Report No. 31, 2003-04 The Senate Order for Departmental and Agency Contracts (Financial Year 2002-2003 Compliance); Audit Report No. 35, 2003-04 Compensation Payment and Debt Relief in Special Circumstances; Audit Report No. 42, 2003-04 Financial Delegations for the Expenditure of Public Monies in FMA Agencies; Audit Report No. 49, 2003-04 The Use and Management of HRIS in the Australian Public Service; Audit Report No. 55, 2003-04 Management of Protective Security; Audit Report No. 57, 2003-04 Administration of Freedom of Information Requests; and Audit Report No. 58, 2003-04 Control Structures as part of the Audit of Financial Statements of Major Australian Government Entities for the Year Ending 30 June 2004. Details of these reports can be found on the Australian
National Audit Office web site at <http://www.anao.gov.au Parliamentary CommitteesIn 2003-2004, the Joint Committee of Public Accounts and Audit tabled one report in Parliament that made recommendations relevant to the department’s operations: Report 399, Inquiry into the Management and Integrity of Electronic Information in the Commonwealth. Achievement of the department’s outcomes and key deliverables is supported by the work of enabling areas in the department. Enabling areas and cross-policy groups include the Corporate Strategy Group, Information Services Group, the Strategic Analysis and Evaluation Group, the Procurement, Assurance and Legal Group, Audit and Investigations, and Finance Branch. Details of the work carried out by these areas can be found in Chapter 7 and Chapter 8. For more information please email: |
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last updated on
Wednesday, 28 May 2008
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