DownloadManagement accountability
Risk management
ASADA has in place appropriate mechanisms to manage general business risk as well as fraud risk.
General business risk
ASADA adopted ASDA’s risk management processes and policies that have been in development and operation for more than five years. With executive support, a risk awareness culture hasevolved. ASADA has developed a number of policies, procedures and tools to promote effective risk management.
Risk identification in ASADA occurs at several levels:
- The Executive team identifies strategic risks that apply to most areas of ASADA. These risks are considered in business plans.
- Group Directors and Business Unit Managers identify the main pressures, challenges and risks that may impact on their objectives in their annual business plans. This includes consideration of the strategic risks identified by the Executive Committee.
Financial risk in ASADA is managed through:
- Chief Executive Instructions, available to all staff
- monthly reports to the ASADA Members and oversight by the Audit Committee.
ASADA participated in the annual Comcover benchmarking survey. The results of this survey showed that ASADA can improve in implementing its risk management framework, communication, training and awareness.
During 2006–07 ASADA will continue to strengthen its risk management and business continuity framework as follows:
- a major review of business risks will be undertaken by an external consultant to identify all risks and to develop a revised risk management plan
- an IT security framework will be developed.
Fraud risk
ASADA has adopted the fraud control policy of ASDA. ASADA is currently reviewing this policy to ensure it meets the needs of ASADA and complies with the Commonwealth Fraud Control Guidelines. The fraud control policy will be updated in 2006–07 to account for the new functions that ASADA has responsibility for, and any outcomes of the current review.
Ethical standards
ASADA has its own values statement reflecting and supporting the way the Authority functions within the APS legislative framework. ASADA’s values are aligned with the APS Values and form part of the performance management system.
ASADA is committed to supporting and promoting the APS Values and Code of Conduct in accordance with the Public Service Act 1999.
Major achievements in this area during 2005–06 include:
- The APS Values and Code of Conduct were integrated into ASADA. Staff received copies of the APS Values and Code of Conduct and received an overview from the Australian Public Service Commission.
- New Chief Executive Instructions, which established the staff requirements in relation to the FMA Act and Regulations, were approved and disseminated in March 2006.
In 2006–07 ASADA will continue to develop further initiatives particularly in the development of procedural rules on a range of ethical issues.
Audit and investigations
Audits conducted by ASADA are undertaken with the aim of providing an effective, objective and independent assurance to the Executive and the Audit Committee that resources are being used efficiently, effectively and ethically by providing quality, timely and cost effective audit work.
Internal audit systems are conducted under the direction of the Audit Committee and the function is outsourced to Acumen Alliance.
The Audit committee provides the Chair with assurance in relation to the responsibilities for financial reporting, maintaining an effective system of internal controls, ensuring strong performance and accountability and reviewing specific matters (internal and external) that may arise from audit processes.
No internal audits were undertaken for ASADA in 2005–06.
A strategic internal audit plan will be developed for the 2006–07 financial year. The activities of the Internal Audit will be aligned with ASADA’s broader risk and control framework, including risks arising at a corporate level.
In undertaking its work, Internal Audit will work cooperatively with key external stakeholders and partners, especially the ANAO.
Effective customer service
The Authority has processes in place that deliver effective customer service, including procedures for handling complaints.
Hotline operators are trained to deal with sensitive issues.
Financial management
The financial management of ASADA is conducted internally, with the processing of accounts and the preparation of face statements outsourced to the accounting firm, Walter and Turnbull.
Internal budgeting processes have been enhanced to increase accountability at Business Unit level including a restructure of the Chart of Accounts.
In 2006–07 the timeliness, presentation and accuracy of internal reporting to the Executive and the Board will be a major focus, together with bringing the outsourced accounting functions in-house to improve efficiencies and enhance reporting and accountability. Part of this project will include the evaluation of an acceptable Financial Management Information System.
There will be increased focus on assisting staff in operational areas to improve information recording and reporting, and on upgrading their general understanding of financial management and the Government’s accountability framework.