DIMIA Annual Report 2002-03
Management and accountability
CORPORATE GOVERNANCE
Senior Management Committees and their roles
The senior management responsibilities of the department are presented in the corporate structure chart.
The department's executive arrangements include a Management Board, Finance Committee, Audit and Evaluation Committee, People Management Committee and IT Governance Committee.
These bodies have reinforced the department's ability to deliver its outcomes and outputs cost effectively and to a high standard.
The Management Board is responsible for providing leadership and overall management of DIMIA through the development of strategies and plans.
The board monitors the achievement of departmental outputs centrally, in state and territory offices and overseas through an established reporting framework. The Management Board is supported by a number of specialised committees.
The Finance Committee provides advice to the Management Board on strategic financial management issues, planning and performance monitoring, and reporting.
The Finance Committee oversees and monitors budget, performance improvement and corporate governance processes, ensuring consistency with government objectives and the department's business directions.
The Departmental Audit and Evaluation Committee (DAEC) provides regular assurance to the Secretary and Management Board on the efficiency, effectiveness and probity of the department's activities.
The People Management Committee was established in 2001 to strengthen the department's focus on strategic human resource management with a view to achieving high performance outcomes and becoming an employer of choice.
The committee provides guidance to the Management Board on a wide range of strategic people management issues.
During 2002-03 the Management Board reviewed the department's governance structures including the membership and terms of reference of the Finance Committee, the DAEC and the People Management Committee.
The Management Board identified the need for, and established an Information Technology (IT) Governance Committee.
The role of this committee is to advise on the carriage of major technological matters and make recommendations on strategic directions for technology that are consistent with government objectives and the department's business strategies.
The department has a National Staff Consultative Forum (NSCF) established under its Certified Agreement.
The NSCF meets three times a year and provides an opportunity for senior management, employee representatives and representatives of employee organisations to consult on conditions of employment including the implications of legislative, funding, organisational, technological and procedural changes for employees.
The DIMIA Certified Agreement, which sets terms and conditions of employment, is a key expression of the partnership between management and staff.
A new Certified Agreement will be developed in 2003-04, which will aim to underpin future directions in human resource management.
Corporate and Operational Planning and Performance Reporting
The department's strategic plan, Business Directions 2002-2005, outlines DIMIA's strategic directions.
It provides high level guidance for DIMIA staff on the specific objectives relating to each of the three outcomes, on the provision of client service, and on issues of corporate governance. It was updated during 2002-03.
The companion document, Investing for 2005 and Beyond, is a more detailed picture of how the agency will work to achieve the objectives over the longer term.
It contains a series of specific projects to enhance business processes and to improve service delivery arrangements.
The plan is structured to emphasise the linkages between various activities and to promote integrated planning at all levels.
During 2002-03 DIMIA's people management strategy, Investing in People, was formally incorporated into the Corporate Planning Framework.
Focussing on the objective to be an employer of choice, it is central to the achievement of DIMIA's business directions.
It provides a framework for linking key people management initiatives to broader business direction setting.
The Portfolio Budget Statements (PBS) describe the department's principal business activities for the year ahead and the level of resources available.
Business areas develop plans that support the delivery of the strategic priorities outlined in the Business Directions 2002-05 and the PBS.
In 2002-03 DIMIA's Business Planning Principles were adopted and published.
They aim to promote high quality and integrated business planning while allowing flexibility in operational planning processes.
The principles were used to assess high level business plans across the agency.
This assessment identified some areas for improvement and also a noticeable improvement in the extent and quality of business planning across DIMIA in the past two years.
External performance reporting is prepared on an outcomes, outputs and output-components basis.
The department's activities deliver 10 outputs:
- Output 1.1 Non-Humanitarian Entry and Stay
- Output 1.2 Refugee and Humanitarian Entry and Stay
- Output 1.3 Enforcement of Immigration Law
- Output 1.4 Safe Haven
- Output 1.5 Offshore Asylum Seeker Management
- Output 2.1 Settlement Services
- Output 2.2 Translating and Interpreting Services
- Output 2.3 Australian Citizenship
- Output 2.4 Appreciation of Cultural Diversity
- Output 3.1 Indigenous Policy.
In 2002-03 the department reviewed its performance reporting arrangements.
A number of areas for improvement were identified and a strategy is in place to better focus reporting and to enhance data quality and accessibility during 2003-04.
A regime of exception reporting to the Management Board has been developed to assist in the identification of emerging performance issues.
The department is working to better link its reporting to business planning processes with a specific focus on ensuring its performance measures enable well articulated reporting on outputs and outcomes.
The Finance Committee, People Management Committee, IT Governance Committee and DAEC undertake detailed performance monitoring in the areas of resource allocation and performance improvement, human resource management, technology, and audit, evaluation and risk management respectively.
In addition, each division and state/territory office provides performance reports to the Management Board twice a year.
Statistical reports are routinely provided to line managers to enable continuous monitoring of operational performance.
The Performance and Learning (PAL) scheme, introduced in 1999-2000, continues to be a central mechanism to link individual performance to business priorities.
Internal Audit Arrangements and Risk Management
DIMIA is committed to a comprehensive and systematic approach to managing risk.
A risk management framework has been developed with the aim of supporting better outcomes for the department.
The framework provides a systematic way to make informed decisions and a visible assurance that risks have been recognised and managed.
A number of risk management initiatives were implemented in 2002-03, including:
- implementing and promoting risk management policies and guidelines
- providing training to assist staff in conducting risk assessments
- facilitating risk assessment exercises and contributing to the development of controls and strategies to manage and mitigate major risks
- assessing current risk activity in DIMIA and building a risk profile for the department.
The Internal Audit Program and a suite of control self-assessment tools are also important elements of the department's risk management strategy.
The audits, quality assurance checklists and built-in controls which flow from these processes have been developed after extensive risk-based analysis.
Audit Committee
The DAEC is a key feature of the department's corporate governance structure.
During the year changes were made to the composition of the Committee, including the appointment of the Director Evaluation and Audit, Aboriginal and Torres Straight Islander Commission as an external member.
The DAEC provides regular ongoing assurance to the Secretary and the Management Board on the efficiency, effectiveness and probity of the department's activities.
Mechanisms for delivering this assurance include the development and approval of a risk-based internal audit program and ensuring that the recommendations flowing from the audits are appropriate and implemented within agreed timeframes.
The DAEC's role also includes overseeing and monitoring the development of risk management processes and structures, and promoting a risk management culture within the department.
To facilitate progress with risk management planning, a comprehensive framework has been developed, and a toolkit of formal systematic processes distributed throughout the department.
Internal Audit
The department's internal audit function undertakes the ongoing review of identified key risk areas throughout the department with the aim of providing the Secretary and the Management Board with independent assurance that departmental outputs and activities are operating effectively, efficiently and lawfully.
The Internal Audit Unit, operating under the authority of the Internal Audit Charter, is directly accountable to the DAEC and retains independence by not being subject to line management control.
Ernst & Young is contracted to conduct the delivery of internal audit and related services on behalf of the department.
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 of DAEC.
The Internal Audit Unit, the audit contractor and the DAEC collaborate in identifying the department's high level risks and developing an Annual Audit Plan (AAP) following extensive consultation with a wide cross-section of departmental senior executives and managers.
The development of the AAP also takes into consideration other reviews and evaluations, priority areas within the department, and other performance management tools in place to assist in delivering quality outputs. The AAP for 2002-03 had three themes:
- assessing the effectiveness and efficiency of the processes which deliver the department's business outcomes, particularly the extent to which integrity objectives are being met
- reviewing the implementation of business process reforms such as the implementation of electronic visa processing
- providing assurance in regard to systems, controls and results, for both financial and other key processes.
During 2002-03, 26 audits were completed, 17 of which were agreed as part of the 2001-02 AAP and continued into 2002-03.
A further eight audits from the 2002-03 AAP are almost complete and will be issued early in 2003-04.
Audit reports flowing from the AAP are approved by the DAEC, and recommendations are monitored until they have been implemented or the committee agrees that no further action is required.
Through the outsourced audit contractor, the Internal Audit Unit also provides line managers with services outside the AAP process.
Such services range from full reviews to quick turnaround advice on specific accounting, procedural, operational or information technology issues.
Other Risk Mitigating Strategies
Control self-assessment tools allow management to actively monitor performance using checklists of significant financial and other business process requirements.
These tools continue to be a feature of DIMIA's quality control and risk management regime.
The financially based 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 which are progressively being expanded in appropriate areas.
Both are onshore tools aimed at assuring compliance with procedures and the effectiveness of built-in controls.
The Overseas Audit and Security Checklist serves similar purposes offshore.
The DAEC receives regular reports on all the above quality assurance activities, particularly in regard to the completion of the checks and any emerging trends and issues that may arise.
Establishment and Maintenance of Ethical Standards
The department's conduct guidelines and other related instructions are currently under review. The revised versions are expected to be available in 2003-04.
During 2002-03 the department delivered Code of Conduct training to approximately 985 staff.
This included training on minimising harassment in the workplace, and strategies for employees and managers in dealing with such behaviour.
The training also included segments on the appropriate use of the internet and e-mail.
Training was also provided to middle and senior management on workplace communication, conduct issues and effective management techniques.
Work commenced to develop Code of Conduct refresher training. The intent of this training will be to remind employees of their responsibilities and to bring them up to date on developments in conduct policy.
The department investigates all reports alleging criminal conduct by employees.
These investigations are overseen by an Internal Investigations Steering Committee, chaired by a Deputy Secretary.
A total of 162 allegations relating to the conduct of departmental staff were received during 2002-03 (compared to 187 in 2001-02).
One hundred and four investigations were finalised, of which 81 per cent were unfounded.
Two matters were found to involve a serious possibility of criminal behaviour and were referred to the Director of Public Prosecutions for criminal prosecution.
In addition, two locally engaged employees in overseas posts had their employment terminated for serious misconduct and two resigned while under investigation.
In relation to allegations that were found to involve a breach of the Code of Conduct, four employees in Australia had their employment terminated, two employees were either demoted or transferred at level, and two employees were reprimanded.
Two employees resigned during the investigation process.
Two former employees lodged appeals at the Australian Industrial Relations Commission against unfair dismissal.
Both appeals were resolved at the conciliation stage to the satisfaction of the department.
There was one application for a review of actions in relation to a decision on a conduct matter. The decision involved a sanction of demotion.
Senior Executive Service Remuneration
Members of the Senior Executive Service in the department are remunerated through Australian Workplace Agreements (AWAs), which provide for a base salary, a limited range of fringe benefits and performance pay (see Appendix 2).
In October 2002, the department participated in the ANAO survey of fraud control arrangements within Australian Public Service (APS) agencies.
The purpose of the survey was to assess key aspects of fraud control arrangements in place across the APS against the Commonwealth Fraud Control Guidelines (2002), in order to provide assurance to parliament on the preparedness of agencies to effectively prevent and deal with fraud.
The Commonwealth Fraud Control Guidelines require that from the 2002-03 reporting year, agency heads are to certify that they are satisfied that:
- fraud risk assessments and fraud control plans have been prepared that comply with the Commonwealth Fraud Control Guidelines
- appropriate fraud prevention, detection, investigation and reporting procedures and processes are in place
- annual fraud data has been collected and reported that complies with the Commonwealth Fraud Control Guidelines.
The department has had a fraud risk assessment and control plan in place since 1999. In late 2002, the department commissioned the preparation of a new fraud risk assessment and fraud control plan.
It is expected that the new plan will be in operation early in 2003-04.
The department has in place appropriate measures to prevent, detect, investigate and report on both internal and external fraud.
Annual fraud data that complies with the Commonwealth Fraud Control Guidelines has been collected and reported to the Attorney-General's Department.