Corporate governance
Corporate governance framework
We set our objectives, ensure compliance with relevant legislation, and monitor and improve our performance efficiently, effectively and ethically through mechanisms that are established as part of our corporate governance framework.
The framework is based on well–defined lines of responsibility, an executive committee structure and a set of assurance arrangements that together underpin:
- clear leadership and direction
- sound planning
- strong financial management
- accountability, transparency and integrity
- robust performance management
- effective internal communication
- business improvement
- integrated risk management
- appropriate controls.
Executive committees
The following high-level committees provide leadership and executive management of DAFF’s performance:
Executive Management Team and its subcommittees:
- Business Improvement Committee
- Information and Communication Technology Committee
- Legislation and Deregulation Committee
- People Management Committee
- Investment Committee.
Audit Committee and its subcommittee:
- Financial Statements Subcommittee.
Two changes were made to the executive committee structure during the year. As part of our ongoing commitment to improve governance and decision-making, we established a separate Investment Committee to oversee capital investments in line with a robust and transparent internal budget process. In light of the decision by government that management of the biosecurity function would remain within the department, the Biosecurity Management Group ceased to operate.
The roles and responsibilities of executive committees are set out below.
Executive Management Team
The Executive Management Team (EMT) advises the secretary on strategic policy, budgets and performance reporting. Its members are the secretary; the three deputy secretaries; the chief operating officer; the chief finance officer; the Executive Manager, Corporate Policy; the Executive Manager, Biosecurity Regional and Business Services; and two rotational members. The team met 10 times during 2010–11.
The roles and responsibilities of the committees that report to the EMT are set out in Table 34.
| Committee | Role | Membership |
|---|---|---|
| Business Improvement Committee | Provides strategic advice to the secretary through the EMT on matters such as business improvement processes and the governance framework Makes decisions about routine matters related to the committee’s work The committee met eight times in 2010–11 |
Deputy secretary (chair) Chief operating officer Chief finance officer Chief information officer Six SES representatives General Manager, Program and Project Management Office One divisional representative |
| Information and Communication Technology Committee | Provides strategic advice to the secretary through the EMT on matters relating to strategic information and communication technology direction, performance and investment Oversees implementation of DAFF’s information and communications technology plans The committee meets monthly |
Deputy secretary (chair) Chief operating officer Chief information officer Chief finance officer Biosecurity executive representative Biosecurity regional representative Two non-biosecurity division representatives |
| Legislation and Deregulation Committee | Provides strategic advice to the secretary through the EMT on the portfolio’s legislation program and priorities Coordinates DAFF’s action to implement the government’s deregulation agenda The committee met four times in 2010–11 |
Deputy secretary (chair) Executive Manager, Corporate Policy Five other SES representatives |
| People Management Committee | Provides strategic advice to the secretary through the EMT on human resources policies, programs and approaches Monitors and reviews implementation of human resource initiatives, including DAFF’s People Strategy The committee met eight times in 2010–11 |
Deputy secretary (chair) Chief operating officer Three biosecurity representatives, including a regional representative Five other SES representatives |
| Investment Committee | Provides strategic and tactical investment policy and advice to the secretary through the EMT The committee is responsible for advising on DAFF’s capital and non-capital corporate investment policies and priorities The committee met three times in 2010–11 |
Deputy secretaries (one as chair) Chief finance officer Chief operating officer Executive Manager, Biosecurity Regional and Business Services |
Audit Committee
DAFF’s Audit Committee provides assurance and advice to the secretary on the department’s risk, control and assurance framework, including its external compliance and accountability responsibilities. Its remit includes financial management and reporting, internal control structures, risk management, internal and external audit activities, and fraud control. At 30 June 2011, the members of the Audit Committee were:
- Ms Jenny Morison, independent member (chair)
- Mr Will Laurie, independent member
- Ms Rona Mellor, Deputy Secretary, Biosecurity
- Mr Tim Chapman, Executive Manager, Biosecurity Quarantine Operations
- Mr Allen Grant, Executive Manager, Agricultural Productivity.
Membership changed during the year, with Dr Dickson leaving DAFF in May 2011. Mr Laurie joined the committee in August 2010, replacing Mr Michael Harris. The committee met five times in 2010–11.
The Financial Statements Subcommittee supports the Audit Committee. The roles and responsibilities of the committee are set out in Table 35.
| Committee | Role | Membership |
|---|---|---|
| Financial Statements Subcommittee | Reviews the preparation of the annual financial statements Considers accounting standards and policies relevant to the preparation of financial statements and DAFF’s implementation of these policies Meets as needed |
External member of the Audit Committee (chair) An additional member of the Audit Committee with financial qualifications Chief finance officer Deputy chief finance officer |
Building strategic capacity
The Business Improvement Committee guides development of DAFF’s organisational capability, agility and effectiveness. Among the committee’s responsibilities are fulfilling whole-of-government requirements to improve agency capability by applying the portfolio, program and project management maturity model (P3M3), and initiatives relating to 'Ahead of the game: blueprint for the reform of Australian Government administration'.
In August 2010, the committee introduced a project management framework. In DAFF’s Capability Improvement Plan we have committed to further develop this framework as well as program and portfolio management frameworks, particularly those with organisational governance and management control.
We ran a series of executive workshops to look at what might be ahead for agriculture, food, fisheries and forestry over the next five to ten years, how DAFF might contribute and what would be required to enable that. We have now developed the foundations for a new strategic plan and begun a consultation process. This strategic planning and an initiative to realign the organisation’s role and focus resulted in measures to build strategic capacity. This is reflected in the budget for the coming year.
Above: Bufo marinus (cane toad)—Northern Australian menace
(Photo: Mikaela Griffiths, Annual Report Photo Competition winner)
Planning and reporting
Our departmental plan for 2010–11 set out high-level priorities and strategies, challenges to be met and what we intended to achieve. Cascading divisional business plans translated program objectives and deliverables into specific activities for the year and identified the associated risks. These divisional plans were reflected in the detailed planning at branch level and in individual work plans and learning agreements required by our collective agreements.
Biannual business performance reviews (in November and June) for each division reported on risks and achievements against the Portfolio Budget Statement’s performance indicators and government priorities. Two formal performance feedback discussions with individual staff coincided with these reviews. We monitored our financial position through year-to-date and end-of-year financial reports, and reviewed projections against budget at each EMT meeting.
During the year, we developed a web-based tool, E-Plan, which has enabled us to fully integrate our business planning, risk and performance reporting functions onto one platform. E-Plan uses current departmental technology, and guides the user in the development of business plans while automatically populating the risk assessment and reporting modules.
Financial management
During 2010–11, DAFF continued to strengthen its financial management framework.
Key efforts included revised cost recovery arrangements for the Levies Revenue Service (LRS), links between internal and external budget practices, and projects to streamline business processes and remove internal red tape. We have also benchmarked the costs of the finance function and found it to be commensurate with better practice industry indicators in Australia and worldwide.
With a complex departmental budget that is 65 per cent cost-recovered from industry for services primarily related to biosecurity, careful attention is given to managing the DAFF’s cash reserves. This includes looking at where capital is allocated and how operating budgets are managed over the forward estimates. A newly created investment committee has improved the way in which investments are prioritised.
Capability improvement training was made available for Senior Executive Service (SES) and Executive Level 2 officers to support this change.
Assets management
To achieve departmental objectives and business requirements, we control acquisition of and enhancements to assets under a capital investment framework approved by executive management. Capital budget proposals are submitted to an investment committee for consideration and agreement. Business cases for investment, either in new or existing assets, are also assessed by the committee. Throughout 2010–11, a capital management plan, as well as comprehensive information technology (IT) and property investment plans, supported the investment committee with capital management.
Our asset register is centrally managed to ensure the integrity of our asset data and reporting procedures. We have specialist team members to provide guidance on the management and disposal of assets. Our land, buildings and leased assets are managed by third parties under outsourcing contracts.
At 30 June 2011, our asset base was independently valued at just over $94 million. In 2010–11, we started renewing our IT infrastructure including investing significantly in software to ensure sustainability of operations reliant upon IT. The government also funded DAFF to carry out urgent upgrade works at our five quarantine stations and approved a proposal to build a new quarantine station.
Our major investments are in land, buildings, IT and intangibles. We manage approximately 1180 building, leasehold improvement, property, plant and equipment assets at 77 locations throughout Australia, 35 of which are considered to be remote. We have more than 5000 IT-related assets under a leasing arrangement, also found in many locations across Australia.