Annual Report 2005–06
Corporate governance
Corporate governance mechanisms
The department’s operations are governed by the Parliamentary Service Act 1999 and the Financial Management and Accountability Act 1997 and are subject to provisions of the Workplace Relations Act 1996 and other legislation.
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 Senate Management Advisory Group, assists the Program Managers’ Group.
The Workplace Consultative Committee, formerly the Workplace Relations Committee, is the principal forum for formal consultations with staff and union representatives on workplace relations matters.
The role and membership of each group are described in Figure 23.
| Program Managers’ Group | Role Coordinating corporate governance matters, including:
The department’s three Clerks Assistant and the Usher of the Black Rod Chair The Usher of the Black Rod |
|---|---|
| Audit and Evaluation Committee | Role 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 Members Program managers, the Chief Finance Officer (as an observer) and an independent membe Includes representatives from the Australian National Audit Office and from KPMG (internal auditor) as observers Chair The Deputy Clerk |
| Senate Management Advisory Group | Role Formulating and providing advice to program managers on departmental and managerial issues Members All Senate Parliamentary Executive Level 2 staff Chair Chosen annually by the group |
| Workplace Consultative Committee | Role Serving as the principal forum for formal consultations with staff and union representatives on workplace relations matters, including negotiation of workplace agreements Members The Usher of the Black Rod, the Clerk Assistant (Committees), up to 10 elected staff representatives and union representatives Chair The Usher of the Black Rod |
Program Managers’ Group
The Program Managers’ Group met regularly during 2005–06 to discuss corporate governance and other departmental management issues, including:
- justification of the May 2006 pay increase based on the achievement of productivity improvements and cost reduction goals as set out in the certified agreement
- policies relating to attendance, code of conduct relating to activities outside the workplace, performance communication scheme, managing underperformance, official hospitality and the use of frequent flyer points
- staff development programs
- communications strategy for workplace agreement negotiations
- development of a business continuity management framework.
Senate Management Advisory Group
The Senate Management Advisory Group (SMAG) met on eight occasions in 2005–06 to discuss departmental proposals, policy initiatives and changes, and to advise the Program Managers’ Group on leadership and corporate matters.
SMAG assisted the Program Managers’ Group with advice and recommendations on proposals for the 2006–10 collective agreement.
At the beginning of 2006, SMAG reviewed its terms of reference to ensure that the group continued to be an effective senior management body. As a result, the group now meets monthly rather than quarterly so that it discusses key issues in a timely manner and working groups are able to report on their assigned tasks in time to meet deadlines set by the Program Managers’ Group.
All meetings of SMAG now include a management and leadership development component. In July 2005, the Parliamentary Service Merit Protection Commissioner, Mr Jeff Lamond, provided SMAG with an overview of the Merit Commissioner’s role, the process that takes place when staff request a review of action, and effective handling of grievances and complaints.
Audit and Evaluation Committee
One of the primary mechanisms for testing departmental frameworks and controls is the internal audit program overseen by the Audit and Evaluation Committee.
The department’s contracted internal auditor is KPMG. The following audits and reviews were conducted by KPMG during 2005–06 and reviewed by the committee:
- GST/FBT/salary sacrifice
- financial controls review
- implementation review of the department’s new human resource management information system
- contingency planning review
- review of information security
- review of procurement processes
- contract management review
- fraud control plan and risk assessment
- security of credit card transactions
- key performance indicators systems review.
While the audits made a number of recommendations aimed at meeting ‘better practice’ principles, they identified no serious problems. The committee monitors implementation of all recommendations.
During the year the Deputy Clerk, who has no direct line responsibility for a departmental program, was appointed chair of the committee to reduce the risk of real or perceived lack of independence and any potential conflict of interest. This change is consistent with a recommendation from the Australian National Audit Office’s Better practice guide on public sector audit committees.
Workplace Consultative Committee
During 2005–06 the Workplace Consultative Committee’s terms of reference were revised to broaden staff representation on the committee. The number of staff representatives on the committee increased from four to 10, with all offices now represented.
Broader staff representation on the committee has improved communication and consultation with all staff and work groups in the department. This was evident during negotiations for a replacement employee collective agreement.
The committee successfully negotiated the content of the agreement, which took account of the government’s new industrial relations legislation (Work Choices). The agreement, which replaces the 2003–06 certified agreement, will operate from July 2006 until June 2010.