Annual Report 2003–04
Corporate governance
Corporate governance mechanisms
At the strategic level, implementing and monitoring corporate governance principles is the responsibility of two key groups under the supervision of the Clerk’s Office—the Program Managers’ Group and the Audit and Evaluation Committee. An advisory group, the Senior Management Advisory Group (SMAG), assists the Program Managers’ Group. The Workplace Relations Committee (WRC) is the principal forum for formal consultations with staff and union representatives on workplace relations matters. The role and membership of each group is described in Figure 27.
| Program Managers’ Group | Audit and Evaluation Committee | Senior Management Advisory Group | Workplace Relations Committee |
|---|---|---|---|
| Role | Role | Role | Role |
Coordinating corporate governance
matters, including:
|
Ensuring that departmental operations
and expenditures meet external audit standards in relation to
best practice financial management and reporting, fraud control
and business risk monitoring Developing and supervising the annual internal audit program |
Formulating and providing advice to program managers on departmental and managerial issues | Serving as the principal forum for formal consultations with staff and union representatives on workplace relations matters, including negotiation of certified agreements |
| Members | Members | Members | Members |
| The department’s three Clerks Assistant and the Usher of the Black Rod | The department’s three
Clerks Assistant, the Usher of the Black Rod and the Chief Finance
Officer Includes representatives from the Australian National Audit Office and from KPMG (internal auditor) as observers |
All Senate Parliamentary Executive Level 2 staff | The Usher of the Black Rod, the Clerk Assistant (Committees), elected staff representatives and union representatives |
| Chair | Chair | Chair | Chair |
| The Usher of the Black Rod | The Usher of the Black Rod | Chosen annually by the group | The Usher of the Black Rod |
Program Managers’ Group
The Program Managers’ Group met regularly during 2003–04 to coordinate and discuss corporate governance matters and, where necessary, make recommendations to the Clerk. Topics on which recommendations were made to, and accepted by, the Clerk during the year included:
- a proposal for a new financial management information system
- performance productivity and cost reduction goals as set out in the new certified agreement
- individual and departmental performance outcomes contained in the new, collective Senior Executive Service Australian Workplace Agreement.
Senior Management Advisory Group
The SMAG met on six occasions in 2003–04. Three working groups were formed during the year to:
- provide broad management input into the financial management information system implementation project
- revise the department’s Disability Action Plan
- review the department’s work plans.
Each of these projects was completed within the planned timeframe. SMAG members also participated in two development exercises, both featuring internal and external experts on parliamentary, policy development and cabinet processes.
Audit and Evaluation Committee
The committee met on four occasions during the year, with secretariat support provided by the Financial Management Section.
In 2003–04, the provider of the department’s internal audit services, KPMG, completed the first year of its new two‑year contract, reviewing the following matters:
- protection of information
- corporate governance
- management of non-ongoing employees
- business and fraud risk
- the implementation and appropriateness of the new financial management information system.
The reviews provided useful assessments of the department’s performance in these areas and recommended some best practice improvements. Most recommendations were accepted by the department and are being implemented.
Workplace Relations Committee
During the second half of 2003 the WRC played an active role in negotiating a new certified agreement. Staff representatives on the committee surveyed all staff members at the beginning of the consultative process in order to obtain their views on current and future conditions of service. During the negotiating period, committee members held meetings with staff to consult them on the content of the agreement.
Since the new agreement was certified, in December 2003, the committee has monitored, and advised on, the implementation of strategies contained in the certified agreement, and policy changes arising from the new agreement.
Corporate and operational plans
Corporate Plan and work plans
The Corporate Plan outlines the department’s strategic direction in providing non‑partisan advice, support and information to senators, and providing information about the Senate and its committees to the public. Through this plan, and other planning mechanisms such as workplace agreements, managers and staff commit to providing high‑quality advice and support to the Senate and its committees and to senators.
As part of a review of the department’s planning framework, departmental work plans were examined by a working party of the SMAG. Work plans provide a link between the Corporate Plan and individual work objectives. At the end of the year, the revision by the working party was nearing completion.
Fraud control plan and business risk assessment
A fraud risk assessment was undertaken during 2003–04, culminating in the production of a new fraud control plan. It provides a robust framework for the management of fraud risk, with particular emphasis on the enunciation of management responsibilities and improved awareness. The fraud control plan can be accessed by all staff members through the department’s intranet.
Alongside this exercise, as another part of its risk management policy, the department reviewed its business risk assessment. The result of that review is also available on the department’s intranet.
Ethical standards
Parliamentary Service Values and departmental policies
The Parliamentary Service Values and Code of Conduct set out the behaviours and ethical standards expected of parliamentary staff. Underpinning the values and code of conduct are a number of departmental policies which describe specific standards and behaviours expected of staff.
The department met its legislative responsibility to promote the values and code of conduct. All new staff were provided with information on the ethical framework, and with a bookmark and brochure listing the Parliamentary Service Values and Code of Conduct. Information on the values and code of conduct, and associated policies, was published regularly in the weekly information bulletin, which is distributed to all staff.
One employee was found to have breached the Parliamentary Service Code of Conduct during 2003–04 and appropriate action was taken under the Parliamentary Service Act 1999.
Clerk’s Instructions
The Clerk’s Instructions represent a cornerstone of the department’s internal control, accountability and corporate governance frameworks. They are readily accessible to all staff via the department’s intranet. Changes to individual chapters are disseminated in a number of ways, including through specific purpose awareness sessions, SMAG meetings, Program Managers’ Group meetings and the staff bulletin.
No breaches of the Clerk’s Instructions were reported or detected during the year.
Social justice and equity impacts
The department does not administer public programs, and thus does not directly implement a social justice strategy. In terms of internal obligations, the department’s Workplace Diversity Program promotes equity, equality of opportunity and the value of a diverse workforce. The department is committed to making employment decisions based on merit and to staff consultation.
