Corporate Governance

Table of Contents

Corporate governance practices in place
Senior Management Committees and their Roles
Senior Executives and their Responsibilities (as at 30 June 2003)
Senior executive remuneration
Maintenance of Ethical Standards
Risk Management

Corporate governance practices in place

The department’s governance framework – its structures, decision-making processes, planning and performance reporting framework and control systems – deliver policy objectives effectively, heighten organisational performance and ensure that the department meets all statutory requirements. Key structural and systems elements covering the governance continuum, from conformance to performance, give effect to the framework.

These elements include interlinking executive committees that give a structured and integrated approach to decision-making with committees that advise and support the Secretary so that all responsibilities under the Financial Management and Accountability Act 1997, the Public Service Act 1999 and other legislative obligations are met. The key executive committees are: 

• Executive Management Team
• Audit Committee and Finance Sub-Committee
• Security Committee
• People Strategies Policy Committee
• Executive Budget Committee

Other elements within the corporate governance framework include:

• a robust internal audit program, driving improved business processes and outcomes
• a Fraud Control Plan through which fraud and ethics education and awareness programs are delivered and rigorous controls and monitoring are activated
• an active Security Plan and program that provide a safe and secure work environment for staff, protect our physical and intellectual assets, drive an enhanced compliance culture, and address systems deficiencies
• systems to support appropriate decision-making and controls such as principle-based Chief Executive Instructions and easily accessible delegations under relevant Acts, Regulations and Orders
• risk management integrated into business processes and culture through the department’s risk management framework, which incorporates the three levels of risk management – project, business and corporate
• communications from executive committees to departmental businesses and staff on key management decisions and organisational priorities
• a strategic human resources policy framework that establishes the policy direction for many human resource management issues
• an integrated approach to monitoring the application of good governance principles in the context of broader performance management through the existing business planning framework, quarterly project performance reviews and individual performance agreements and appraisals.

The department continually reviews and refines its governance framework to take account of emerging needs and better practice models.

Senior Management Committees and their Roles

Executive Management Team
The Executive Management Team (EMT) is the department’s primary leadership and governance decision-making body. Its main role is to provide advice and support to the Secretary and leadership to businesses and staff on administrative and operational aspects. 

The EMT meets monthly and comprises: 

• the Secretary
• three Deputy Secretaries (one of whom is the Executive Director, Australian Quarantine and Inspection Service)
• Executive Director, Australian Bureau of Agricultural and Resource Economics/Security Executive
• Executive Director, Bureau of Rural Sciences
• Executive Director, Product Integrity Animal and Plant Health/Australian Chief Veterinary Officer
• Chief Operating Officer (COO)
• General Manager, Corporate Governance (GMCG).

Audit Committee
The Audit Committee advises the Secretary on managing possible risks to the department’s structures, processes and practices so as to minimise financial and non-financial risk. The committee oversees audit, accounting and corporate control systems and assesses the governance continuum, from conformance to performance. It also advises businesses on measures to improve business practices encompassing broader organisational performance and good practice. An evaluation of the committee’s effectiveness undertaken during the year identified the need for further activities designed to increase the general awareness of staff about the role of the Audit Committee and its relevance to their business outcomes.

The committee consists of a Deputy Secretary (chair), two senior executives nominated by the Secretary and two external/non-government members. The COO, GMCG, Chief Finance Officer (CFO) and a senior Australian National Audit Office (ANAO) representative have observer status. The Secretary attends meetings as appropriate. The committee met seven times during 2002-03.

Finance Sub-Committee
The Audit Committee has a Finance Sub-Committee to oversee the production of the department’s financial statements and to ensure that any changes to accounting standards and policies have been appropriately actioned. The sub-committee consists of an external member of the Audit Committee (chair), an additional external member, the CFO and one senior executive officer. The Director of Internal Audit and an ANAO officer hold observer positions on the committee. The sub-committee reports to the Audit Committee and met 10 times during 2002-03.

Security Committee
The Security Committee advises the Secretary and the EMT on security policy and oversees, monitors and reports on the department’s overall framework and management of security issues. Its charter includes security policy, planning and security risk management to enable the department’s security obligations to be met. The committee has senior representation from a cross-section of businesses. The executive director, ABARE, fulfils the role of Security Executive as prescribed in the Protective Security Manual, and chairs the committee. The committee reports regularly to the Secretary and EMT on security issues affecting the department. The committee met six times during 2002-03.

People Strategies Policy Committee
The People Strategies Policy Committee focuses on people management issues and supports the Secretary and the EMT to further the department’s objectives in developing and managing staff. The committee provides advice to the EMT on policy direction and helps integrate policies and strategies into business practices, with an emphasis on business input and information sharing. Membership consists of the Executive Director, BRS (chair), all other executive directors, executive managers, the COO, GMCG, General Manager People and Strategies, and General Manager HR Services, UnitedKFPW.

Executive Budget Committee
The Executive Budget Committee (EBC) determines budget strategy, priorities and allocations in line with EMT priorities. The committee was established in 2001-02 as the key decision-making body on the department’s budget allocations and to oversee the lodgement of the portfolio budget submission. The EBC meet quarterly to review the performance of each business and the department as a whole. The EBC comprises the Secretary and three Deputy Secretaries, and is supported by the COO, CFO and General Manager, Planning and Communications.

Senior Executives and their Responsibilities (as at 30 June 2003)

Secretary

Michael J Taylor
Responsibilities

• Efficient and effective operation of the department
• Chair of the EMT
• Chair of the Primary Industries Standing Committee (PISC)
• Co-chair of the Standing Committee on Natural Resource Management
• Chair of the National Emergency Animal Disease Management Group
• Ex-officio member, Quarantine and Exports Advisory Council
• Member of the Australian Centre for International Agricultural Research
• Member of the Food Regulation Standing Committee of the Australia and New Zealand Food Regulation Ministerial Council
• Chair of the EBC
• Director of Animal and Plant Quarantine.

Deputy Secretary

Bernard Wonder
 Responsibilities

• Assistance to the
• Secretary across a broad range of issues and functions
• Chair of the Audit Committee
• Member of the EMT
• Australian Government Commissioner, Murray-Darling Basin Commission (MDBC)
• Joint Chair, Australian Government Regional Natural Resource Management Forum
• Departmental representative on the National Land and Water Resources Audit Advisory Council
• Member of the Australian Aquaculture Industry Action Agenda Implementation Committee
• Member of the EBC.

Deputy Secretary

Don Banfield
Responsibilities

• Assistance to the Secretary across a broad range of issues and functions
• Member of the EMT
• Member of the EBC
• Chair PISC Product Safety Integrity Committee
• Australian Government representative on several PISC Committees and Taskforces
• Member of the National Food Industry Strategy Food Trade Advisory Committee

Deputy Secretary

Meryl Stanton
Responsibilities

• Assistance to the Secretary across a broad range of issues and functions
• Member of the EMT
• Member of the Audit Committee
• Member of EBC
• Executive Director, AQIS.

Management Services

Bill Pahl
Chief Operating Officer

Responsibilities

• Efficient and effective operation of Management Services
• Member of the EMT
• Member of the People Strategies Policy Committee (PSPC)
• Member of the Finance Sub-Committee
• Observer to the Audit Committee.

Corporate Governance 

Bill Handke
General Manager, Corporate Governance

Responsibilities

• Support and advice to the Secretary on the departmental governance framework
• Efficient and effective operation of the Corporate Governance Team
• Secretariat to a number of executive committees.

Natural Resource Management Business

Ian Thompson
Executive Manager, Natural Resource Management Business

Responsibilities

• Efficient and effective operation of the Natural Resource Management Business
• Development and implementation of natural resource management policies and portfolio interest in greenhouse issues
• Management of natural resource management programs including the Trust, the Action Plan, the National Landcare Program, the Great Artesian Basin Sustainability Initiative and Australian Government Contribution to the Murray-Darling Basin Initiative
• Deputy Australian Government Commissioner, MDBC
• Director, Landcare Australia Limited
• Member of the PSPC.

Rural Policy and Innovation Business

Cliff Samson
Executive Manager, Rural Policy and Innovation Business

Responsibilities

• Efficient and effective operation of the Rural Policy and Innovation Business
• Development and implementation of policies and programs for the rural industries, research and development, innovation, biotechnology and rural industries leadership
• Government member, National Rural Advisory Council
• Member of the PSPC.

Fisheries and Forestry Business

Daryl Quinlivan
Executive Manager, Fisheries and Forestry Business

Responsibilities

• Efficient and effective operation of the Fisheries and Forestry Business
• Development and implementation of policies and programs for the fisheries and forestry industries
• Government director of the Forest and Wood Products R&D Corporation
• Government director of Australian Fisheries Management Authority
• Member of the departmental Security Committee
• Member of the PSPC. 

Food and Agriculture Business

David Mortimer
Executive Manager, Food and Agriculture Business

Responsibilities

• Efficient and effective operation of the Food and Agriculture Business
• Development and implementation of policies and programs for the agricultural, food and beverage industries
• Government member, Wheat Export Authority
• Government director, Rural Industries Research and Development Corporation
• Member of the PSPC.

Product Integrity, Animal (including aquatic animal) and Plant Health

Gardner Murray
Executive Director, Product Integrity, Animal and Plant Health Business

Australian Chief Veterinary Officer

Executive Director responsibilities

• Efficient and effective operation of the Product Integrity, Animal and Plant Health Business
• Provision of national and international leadership in the areas of plant health, food safety, residue management and emergency management
• Member of the EMT
• Member of the PSPC. 

Chief Veterinary Officer responsibilities

• Provision of national and international leadership in the areas of animal (including aquatic animal) health and welfare.

Graeme Hamilton
Australian Chief Plant Protection Officer

Responsibilities

• Provision of national and international leadership and coordination in the areas of plant health and plant protection.

Tim Roseby
Executive Manager 

Emergency Risk Management Unit and the National Residue Survey

Responsibilities

• Efficient and effective operation of the Emergency Risk Management Unit
• Efficient and effective operation of the National Residue Survey
• Completion of activities in relation to tasks commissioned by the Council of Australian Governments to improve national preparedness for a foot-and-mouth disease outbreak, including Exercise Minotaur report and follow-up
• Director on the boards of Animal Health Australia and Plant Health Australia.

Market Access and Biosecurity Business

Paul Morris
Executive Manager, Market Access and Biosecurity Business

Responsibilities

• Efficient and effective management of the Market Access and Biosecurity Business
• Provision of international agricultural market and biosecurity policy advice to government
• Management of departmental international operations and representation
• Member of the PSPC. 

Mary Harwood
Executive Manager, Biosecurity Australia

Responsibilities

• Efficient and effective management of Biosecurity Australia
• Provision of professional, timely and focused advice in a whole of government context on biosecurity and technical market access issues
• Delegate to the World Trade Organisation Sanitary and Phytosanitary (SPS) Committee.

Australian Quarantine and Inspection Service (AQIS)

Meryl Stanton
Executive Director, AQIS

Responsibilities

• Efficient and effective operation of AQIS
• Ex-officio member of the Quarantine and Exports Advisory Council
• Member of the PSPC.

Greg Read
Executive Manager, Exports

Responsibilities

• Efficient and effective operation of AQIS Export Services and delivery of AQIS business strategies
• Chair of the Live Animal Export Industry Consultative Committee
• Chair of the Export Meat Industry Advisory Committee

John Cahill
Executive Manager, Quarantine

Responsibilities

• Efficient and effective operation of AQIS Quarantine Services

Bureau of Rural Sciences (BRS)

Peter O’Brien
Executive Director, BRS

Responsibilities

• Efficient and effective operation of BRS
• Member of the EMT
• Chair of the PSPC.

Derek Staples
Deputy Executive Director

Responsibilities

• Leadership of BRS programs on Executive and Business Management, Fisheries and Marine Sciences and Rural Data Library and Information Sciences (part year)
• Member of the Audit Committee (part year).

Colin Grant
Deputy Executive Director

Responsibilities

• Leadership of BRS programs on salinity, landscape management sciences and water sciences
• Member of the Audit Committee (part year).

Michele Barson
Chief Scientist

Responsibilities

• Leadership of BRS programs on Executive and Business Management, Fisheries and Marine Sciences and Rural Data Library and Information Sciences (part year).

Melanie Fisher
Executive Manager

Responsibilities

• Leadership of BRS programs on social sciences, forest and vegetation sciences and food and agriculture sciences.

Australian Bureau of Agricultural and Resource Economics (ABARE)

Brian Fisher
Executive Director, ABARE

Responsibilities

• The efficient and effective operation of ABARE
• Member of the EMT
• Chair of the department’s Security Committee
• Associate Commissioner Productivity Commission Inquiry on Native Vegetation
• Member of the PSPC. 

Vivek Tulpulé
Deputy Executive Director

Responsibilities

• Lead ABARE research on agriculture, natural resources, international trade, minerals and energy
• Provide quality control for ABARE’s research output
• Coordinate ABARE’s research program development.

Steve Beare
Research Director

Responsibilities

• Lead ABARE’s project development group providing leading edge support to ABARE’s economic research program in agriculture, natural resource management and resource industries.

Senior executive remuneration

The department’s remuneration policy allows differential outcomes between individual jobs, based on market and work value considerations. This is critical to compete effectively in the employment market.

Note: Table based on salary for superannuation purposes.

Corporate Functions

Corporate and Operational Planning and Reporting Framework
The department’s corporate and operational plans assist in its governance and associated reporting and review mechanisms. These include:

• Portfolio Budget Statements (PBS). These provide a statement of the portfolio’s Outcome goals, appropriations and revenue and the purpose of the portfolio budget measures.
• Corporate Plan. This aims to strengthen the department’s identity and relevance to our customers by communicating who we are, what we do, and how we do it.
• Departmental Business Plan. This documents how businesses will be managed to deliver their outcome and, building on the PBS, sets objectives, aligns and links efforts, and provides a basis for measuring performance.
• Business group plans. These document how each business group will deliver individual outputs through projects, building on the PBS and Business Plan.
• Performance reviews and reports. These are conducted for each business on a quarterly basis to provide information on performance and achievements throughout the year.
• Individual work plans and learning agreements. These document the work, and work standards, that individuals agree to undertake as their contribution to the projects they are working on. Learning agreements document the skills individuals will need and how they will improve those skills.
• Risk management planning. This is conducted at the corporate, business and project level. The department’s Risk Management Plan identifies the key risks to the organisation and the mitigation strategies and actions. The risk management framework is intended to underpin the whole planning process at the corporate, business and project level.
• Performance through People (PtP) Plan. This is the overarching strategic approach to people management. The PtP plan provides staff with a clear understanding of the business goals and what is expected of them, and empowers managers to lead and manage staff effectively while supporting and facilitating their professional development.
• Governance Plan. This outlines the department’s operating rules, internal audit, risk management, business ethics, fraud risk management and control, and security issues.
• Financial reporting. This is completed on a monthly basis.

Planning and Reporting Framework

 

 

Maintenance of Ethical Standards

The department – mainly through the CGT – progressed a number of initiatives during the year related to establishing and maintaining appropriate ethical standards. They included:

• promulgation of revised departmental security policy and guidelines, and security awareness brochures
• completion of a comprehensive fraud risk assessment across all of the department’s programs, administered items, and administrative activities towards production of a revised Fraud Control Plan – to meet the requirements of Commonwealth Fraud Control Policy and the Financial Management and Accountability Act 1997
• continued fraud, ethics, and security training through the new recruit induction process - which (in part) promotes the APS Values, Code of Conduct, fraud control and security issues
• continued implementation of the department’s 2000 Security Plan based on a comprehensive security risk assessment and commencement of preparation of Regional Office Security Plans to meet the requirements of the Commonwealth Protective Security Manual
• maintenance of a whistleblower reporting process to meet the requirements of the Public Service Regulations
• maintenance of a professional fraud and misconduct investigations function
• testing of a CD-based fraud and ethics e-learning project
• promulgation of new Chief Executive Instructions (CEIs), and continued redevelopment of the department's corporate rules (including CEIs and the delegation database)
• enhanced communication to business units and staff on governance aspects, including adoption of APS Values
• the use of the internal audit function to support and monitor business practices.

The outcomes of an Australian National Audit Office (ANAO) audit of the department's fraud control arrangements during the year are addressed under the External Scrutiny chapter of this report.

Risk Management

The department’s systematic and comprehensive approach to risk management targets risk at three separate levels: corporate (organisational), business and project. The department’s objective is to ensure that risk and opportunity are considerations in all decision-making and planning within the organisation and that risk management processes are fully integrated into all planning activities. The CGT assists risk management activity in the organisation.

The department believes that all staff should play an active role in managing risk. Staff responsibilities are set out in the department’s Risk Management Policy and its supporting set of comprehensive guidelines. 

The CGT undertook the following steps to ensure an integrated and consistent risk management approach:

• provided support to business and project staff in the development of their risk management plans
• consolidated all risk management assessment data into the overall Risk Management Plan
• developed a model for risk assessment including a generic risk management toolkit
• participated in the Department of Finance and Administration’s Comcover benchmarking surveys
• co-ordinated and delivered training to help businesses conduct risk assessments
• provided risk management and governance presentations at the departmental induction course
• developed the department’s risk management framework to integrate project and business risk assessments
• developed, in conjunction with the EMT, the Corporate Risk Register
• integrated risk management assessments with business planning processes
• developed the departmental action plan for the next steps in risk management.

The consolidated risk assessment of all businesses arising from the planning process provided input to the development of the 2003-04 internal audit plan.

Risk management activity is reported to and monitored by the Audit Committee.