DIMIA Annual Report 2001-02
MANAGEMENT AND ACCOUNTABILITY
CORPORATE GOVERNANCE
The department has continued to refine and strengthen its management, planning and reporting frameworks, including the management of risk.
The senior executive and committee structure directly supports the effective and efficient delivery of outputs.
The department has pursued significant process improvement and productivity gains in the service delivery area.
Major gains were made with the extension of the electronic lodgement of visa applications offshore.
The department's global working strategy, involving the selective repatriation of caseloads from offshore, has delivered efficiencies in processing, reduced backlogs and delivered improvements both in client service and the integrity of decision making.
In addition, the Translating and Interpreting Service was centralised in the department's Melbourne office producing cost savings and allowing the department to reap the full benefits of an investment in technology to enhance efficiency.
Improvements in corporate information processes have also contributed to productivity including the Activity Based Costing methodology which has provided a comprehensive understanding of the cost of the department's operations resulting in better management and target setting capacity.
The department is well advanced in the investigation of appropriate models of service delivery for corporate services, including competitive tendering and contracting, in line with achieving its corporate objectives.
RISK MANAGEMENT
DIMIA is committed to a comprehensive and systematic risk management approach to its operations.
The developing risk management framework aims to support better outcomes for the department by providing a systematic way to make informed decisions and a visible assurance that risks have been recognised and managed.
DEPARTMENTAL RISK MANAGEMENT FRAMEWORK
Building on the detailed analysis of risks undertaken in 2001, a number of risk management initiatives have been implemented in 2001-02, including
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participating in Comcover's Benchmarking Risk Management Program
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the establishment of a Risk Management Working Group responsible for the implementation of the new risk management framework
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developing the necessary policies, training and guidelines to assist staff in conducting risk assessments
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assessing current risk activity in DIMIA and building a risk profile for the department
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conducting risk assessments in key risk areas and identifying the controls and strategies in place to manage and mitigate the major risks
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evaluating software options for implementing a permanent risk register to support the management and reporting of risk.
AUDIT COMMITTEE
The Departmental Audit and Evaluation committee (DAEC) provides regular ongoing assurance to the Secretary on the efficiency, effectiveness and probity of the department's activities.
The DAEC provides high level strategic guidance on governance issues such as risk management and evaluation processes.
The DAEC also contributes to risk management and corporate assurance processes in the department through developing and approving a risk based internal audit program and ensuring that the recommendations flowing from the individual audits are appropriately actioned and implemented expeditiously.
INTERNAL AUDIT
A dedicated Internal Audit and Risk Management Section undertakes the ongoing review of identified key risk areas throughout the department with the aim of providing the DAEC, the Secretary and the Management Board with independent assurance that departmental outputs and activities are operating effectively, efficiently and lawfully.
Internal Audit operates under the auspices of the Internal Audit Charter which outlines its authority, the responsibilities of both auditors and auditees and the reporting framework.
It is directly accountable to the DAEC and is not subject to line management control, thus ensuring independence is maintained.
DIMIA cooperates with the Australian National Audit Office (ANAO) to coordinate overall audit activity within the department.
This is intended to contribute to better value for money auditing for both organisations and can lead to greater audit coverage with consequent risk reduction.
The ANAO is invited to all DAEC meetings and sits on the Financial Statements Sub-Committee.
Internal Audit is integrally involved in developing the Annual Audit Plan (AAP), based on identified risk areas, following extensive consultation with a wide cross section of departmental senior executives and managers.
The AAP is established after consideration of departmental risks, priority areas within the department, and other performance management tools in place to assist in delivering quality outputs. The AAP for 2001-02 had the following underlying themes:
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assurance in respect of the reliability of systems, controls and results for financial and other key processes
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assurance that significant change is being managed effectively and efficiently while maintaining or improving the quality of the resulting product
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identifying critical elements (including sources of information) of the visa decision making process and development of associated quality assurance mechanisms
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audits to assist in future decision making
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examination of business planning processes.
During 2001-02, 34 audits were completed, 22 of which were carried forward from the 2000-01 AAP.
OTHER RISK MITIGATING STRATEGIES
Evaluation programs are in place throughout the DIMIA output groups to review progress towards providing required outputs, including an examination of their continuing validity and achievement of outcomes.
Twenty-five evaluations have been completed or are nearing completion in 2001-02.
The major purpose of most of these evaluations was performance improvement through the review of specific programs to assess the effectiveness of program delivery.
Other evaluations focused on the impact of the program on the clients to which they were directed.
DIMIA staff conduct 75 per cent of evaluations, with 25 per cent sourced externally.
Self-assessment tools continue to be a feature of DIMIA's quality control and risk management regime.
The Financial Accountability and Control Tools have been in use for some years and are complemented with a suite of decision-making self assessment tools known as Quality Control Codes (QCCs) which are progressively being expanded in appropriate areas.
Both are onshore tools aimed at assuring management of compliance with procedures and the effectiveness of built in controls. Residence Processing and Business Centre QCCs commenced in 2000-01, with Citizenship and Protection Visa QCCs coming on stream during 2001-02.
The Overseas Audit and Security Checklist serves a similar purpose offshore. The DAEC receives regular reports on all of these quality assurance activities, particularly in regard to completion of the checks and any emerging trends and issues that may arise.