Department of Sustainability, Environment, Water, Population and Communities

Corporate Outcome: ORGANISATIONAL EFFECTIVENESS

Improve the effectiveness and efficiency of our department.

Main responsibilities for this outcome

High-level strategic advice and support services to the minister, secretary and executive on cross-portfolio matters. Strategic planning. Secretariat services. Legal advice. Communication and stakeholder relations. Ministerial and parliamentary business. Program, project, risk, compliance and fraud services.	Policy and Communications Division
Human resources. Financial management and reporting. Office accommodation. Environmental management systems. Information communications technology.	Corporate Strategies Division

The department’s corporate outcome is to improve organisational effectiveness and efficiency through strengthening governance and accountability frameworks, including better management of projects and risks, strengthening whole-of-agency financial management capability; effective coordination of cross-cutting issues, best practice workforce management, strategic and innovative policy and technical advice, and greater use of knowledge, information and technology.

Corporate governance

The department’s governance framework assists the department in delivering policy, program and regulatory objectives efficiently, effectively and ethically.

Corporate and operational planning

The department’s Strategic Plan provides a high-level statement of the department’s mission, outcome structure and strategic priorities over the next four years. The plan is a public document and is reviewed annually to reflect the government’s policies and priorities. During 2012–13 the Strategic Plan was reviewed and a revised Strategic Plan 2013–2017 was released in June 2013.

The department also prepares an Annual Operational Plan, which details how the outcomes and priorities identified in the Strategic Plan and the Portfolio Budget Statements will be achieved. The Annual Operational Plan guides the development of division, branch and section planning documents, on which the performance agreements of individual staff are based.

Collectively, these elements provide the framework for the department’s corporate and operational planning.

Oversight of corporate and operational planning is aided by monthly reporting to the Executive Board. This reporting outlines the significant developments and risks associated with all major external and internal projects.

Table 1: Senior management committees and their roles

Name of committee	Role
Executive Board	To provide assistance and advice to the Secretary in meeting responsibilities under the Public Service Act 1999 to manage the department and meet accountability obligations to the parliament. As the central governance mechanism for the department, the Executive Board fulfils a leadership role in cross-cutting issues and decisions.
Workforce Management Committee	To oversee the department’s achievement of best practice workforce management and to provide the Executive Board with recommendations on workforce policy.
Departmental Audit Committee	To provide independent assurance to the Secretary on the integrity and reliability of the department’s management of financial processes, risk and fraud control.
Departmental Consultative Committee	To promote good workplace relations in the department by providing a forum for consultation and exchange of information between management, staff and their representatives.
Departmental Environmental Performance Committee	To strengthen whole-of-department environmental performance and management and contribute to reducing any negative environmental impact of the department’s operations.
Departmental Health and Safety Committee	To develop and maintain a partnership between management and workers to strategically manage the health, safety and welfare of all workers, visitors and third parties to the department.
Graduate Steering Committee	To oversee the quality, appropriateness and operation of the department’s Graduate Program and provide guidance in relation to policy and direction.
Reconciliation Action Plan (RAP) Steering Committee	To oversee the development and implementation of the department’s RAP. Members champion the RAP and Indigenous issues within their division.
Regulatory Compliance Executive Committee	To promote and guide consistent and effective regulatory compliance and enforcement work by the portfolio.
Incident Management Steering Committee	To provide assurance and assistance to the Secretary on the operation and management of the department’s incident management framework. The committee is chaired by the Chief Operating Officer and reports to the Executive Board.

Internal audit

The department has a dedicated Internal Audit Section which was supported by PricewaterhouseCoopers, the appointed internal audit service provider to the department. During 2012–13 the internal audit program was delivered in line with the approved Internal Audit Work Plan. The internal audit function provides the secretary, through the Departmental Audit Committee, independent assurance that internal controls designed to manage organisational risks and achieve the department’s objectives are operating in an efficient, effective and ethical manner. Internal audit achieves this largely by communicating best practices and lessons learnt while monitoring implementation of audit recommendations.

The Departmental Audit Committee provided independent assurance to the secretary on the integrity and reliability of the department’s management of financial processes, risk and fraud control. Five meetings were held during 2012–13.

Ms Elizabeth Montano continued as Chair of the committee. In February 2013 the committee membership was reduced from six to five members with the expiry of Ms Evelyn Bosak’s appointment as an independent member.

Observers at the committee meetings include the Chief Operating Officer, First Assistant Secretary Policy and Communications Division, Assistant Secretary Governance and Legal Branch, the Chief Financial Officer, representatives of the Australian National Audit Office (ANAO) and the internal audit service provider.

Table 2: Departmental Audit Committee membership and meeting attendance 2012–13

Member	Role	No. of meetings member is eligible to attend	No. of meetings attended
Elizabeth Montano	Independent chair	5	5
Evelyn Bosak	Independent member	3	0
Geoff Knuckey	Independent member	5	5
Michael Roche	Independent member	5	4
David Parker	Member (Deputy chair)	5	4
Sean Sullivan	Member	5	4

Risk management

In 2012–13 the department has further refined and improved its approach to risk management, providing specialist risk management support to all divisions. Work is underway to update the risk management framework with new guidance material and tools. Engaging appropriately with risk and participating in the risk management process are pivotal themes for developing the risk management capability across
the department.

The department continues to support other portfolio agencies in their approach to risk management, including the Director of National Parks and the Great Barrier Reef Marine Park Authority.

The department’s 2011–12 annual report stated a vision to be a leader in risk management across government within three years. The recent 2013 Comcover Risk Management Benchmarking Survey results indicate that this journey is well established. The survey recorded a score of 8.4 for the department, which exceeded the total population score of 6.8 (143 Australian Government agencies).

Fraud control

In 2012–13 the department reviewed its fraud control plan, following a comprehensive department-wide fraud risk assessment. There is a focus on consideration of fraud risk as part of general risk assessment activities across the department’s operations.

Fraud awareness programs have been developed and are being delivered across the department to provide greater fraud awareness and a focus on fraud prevention.

The department provides guidance for staff on identifying suspected fraud. Where suspected fraud is identified, the department takes action or refers matters to appropriate enforcement agencies. Of 16 cases of suspected fraud identified during 2012–13, the Australian Federal Police has not accepted any for further investigation. All 16 cases related to instances of suspected fraud external to the department.

In accordance with the Commonwealth Fraud Control Guidelines, the department has prepared fraud risk assessments and fraud control plans. It has in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures to meet its needs and has taken all reasonable measures to minimise the incidence of fraud and to investigate and recover the proceeds of fraud.

Business continuity plan

The department’s Business Continuity Plan describes the arrangements to be used to ensure continuity of key services after a major, unexpected and disruptive incident. It details the management structure, staff roles, responsibilities and actions that would be implemented in the event of a major incident.

The Business Continuity Plan forms part of a broader Incident Management Structure that provides for an effective response Australia wide. The Incident Management Structure captures plans across the department, including the IT Disaster Recovery Plan, Crisis Communication Plan, Security Plan and Pandemic Plan.

The Business Continuity Plan is overseen by the recently formed Incident Management Steering Committee. Appropriate maintenance, training and testing regimes have been implemented on an ongoing basis.

Certificate of compliance

The department’s financial control framework includes the Certificate of Compliance. During the year the department implemented a new online real-time breach-recording system and moved to undertaking a self-assessment process twice a year. Results are provided to management and the Departmental Audit Committee. Other steps taken by the department to improve its performance include:

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  ongoing development of the finance portal to improve accessibility of
  guidance material
  
• 
  continual enhancements to the finance practice manual
  
• 
  ongoing commitment to training and education using a variety of approaches
  
• 
  rollout of system improvements to the department’s financial management information system
  
• 
  regular communication to all staff of any changes to the financial management framework
  
• 
  a continuation of risk-based substantive testing of financial transactions.