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Business improvement

• Business improvement
• Effective corporate governance
• Responding to business opportunities
• Employing best practice
• Managing community service obligations

Business improvement

A viable and socially responsible organisation

ASDA places significant emphasis on continuously enhancing all aspects of its operations.

The Agency improved its business activities via initiatives in:

• Board and Audit Committee functions
• Planning and reporting
• Financial and risk management arrangements
• IT infrastructure
• An extensive audit program
• Its business development processes.

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Effective corporate governance

ASDA seeks to effectively manage its business by ensuring it implements sound corporate governance practices. This includes providing effective and timely support to the Minister for the Arts and Sport and the ASDA Board and Audit Committee.

ASDA Board

The ASDA Board conducted a review of its operations with help from an external consultant. The review led to redrafting of the Board’s protocols, greater definition of roles and responsibilities, and changes to the operation of Board meetings.

ASDA Audit Committee

ASDA’s Audit Committee assessed its performance to identify areas for possible improvements. The improvements identified are being implemented.

Figure 8 – ASDA’s corporate governance assessment ratings 2002-03 versus 2003-04

Planning and performance reporting

ASDA’s planning and performance reporting framework consists of a four-year Strategic Plan and an annual Operational Plan supported, where appropriate, by relevant business plans and (major) project plans. These plans are all linked to individual staff performance agreements to ensure effective policy and priority deployment.

The then Minister for Tourism and Sport approved the ASDA 2001-05 Strategic Plan in 2001. The ASDA 2001-05 Strategic Plan is at Appendix H.

The Agency’s 2003-04 Operational Plan identified the programs ASDA would conduct during the year, how resources would be allocated, and how performance would be evaluated. The plan was a key tool in managing the Agency’s day-to-day business, with monthly and quarterly reporting based on performance indicators addressing outputs, process measures and outcomes.

ASDA reported to the Board on a quarterly basis regarding the progress against the Operational Plan outputs, KPIs and significant projects. The Agency also provided the Board with monthly financial reports.

In addition ASDA provided two six-monthly performance reports for the Minister’s consideration and prepared a draft 2004-05 Operational Plan for approval.

Financial management

ASDA continued to enhance its financial management by:

• Improving processes for budgeting, financial reporting and the management of income and expenditure including the introduction of additional reporting requirements for the Department of Finance and Administration
• Reviewing financial and personnel delegations, and training all staff in these changes
• Seeking to reduce expenditure across all business areas.

ASDA incurred a financial loss of $46,000, largely attributable to unforeseen changes in income from international sources. ASDA had received a commitment from WADA for approximately US$200,000 for the purchase of ASDA’s drug testing IT system Eugene and had budgeted accordingly. However, this income was not forthcoming due to decisions taken by WADA to go to tender. A resolution to the original commitment is outstanding.

ASDA’s 2003-04 financial statements are at Appendix G.

Since 2001-02, ASDA has faced increased overheads and income variations. To accommodate these changes, the Agency has decreased expenditure, identified efficiencies and secured additional income.

ASDA maintained a responsible net equity position of $593,000 as at 30 June 2004.

Contracting and purchasing

ASDA endeavours to implement a best-practice approach to its contracting and purchasing arrangements. ASDA’s processes are designed to ensure that purchasing and contract management procedures maximise cost efficiencies and identify risks.

Consultants and outsourcing

ASDA spent $101,727 on consultants, representing just 1.2 percent of the Agency’s total expenditure. Consultancy services provided to the Agency included a review of the ASDA Board’s corporate governance, an assessment of international business opportunities, financial management and IT management. Expenditure in this area was approximately $25,000 under budget. In recent years, ASDA has reduced its expenditure on consultants substantially.

In recent years, ASDA has reduced its expenditure on consultants substantially.

ASDA maintains preferred or contracted suppliers that are selected in accordance with appropriate business processes. As a small agency, ASDA outsources a number of its business functions including financial management, information technology and payroll. WalterTurnbull, InFront and Frontier provided these services respectively. Each outsourced provider met ASDA’s requirements. The contracts are subject to regular review and rigorous reporting arrangements.

ASDA spent $349,743 on outsourced services - four percent of the Agency’s total expenditure.

Asset management

ASDA’s business processes ensured effective asset management. These processes cover the purchase, management and disposal of assets. The Agency maintained a register to ensure its assets were effectively accounted for. The management of assets is assessed via ASDA’s internal audit program. An asset management audit identified some corrective actions, which the Agency will address in 2004-05.

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Responding to business opportunities

Business development

ASDA sought, where appropriate, to pursue anti-doping initiatives on a commercial basis with relevant sports organisations.

Twenty-five percent of ASDA’s income came from commercial clients such as WADA, some state and territory governments, professional sports and organisers of major events such as world championships and national tours. This compares with a peak in fee-for-service income of some 48 percent in 2001-02. The management of significant changes to the Agency’s income are challenging and may require re-assessment of employment and remuneration practices.

Despite ASDA maintaining reasonable levels of fee-for-service income in 2003-04, this income is expected to decline further in future years.

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Employing best practice

Risk management

ASDA reviewed and revised its fraud control framework and risk assessment strategy. ASDA’s Audit Committee approved this review.

The Agency will review all major risks and risk mitigation strategies bi-annually and report to the Audit Committee.

Audit program

ASDA implemented a comprehensive internal and external audit program that included audits of ASDA’s financial management, the drug testing process, information security, and a range of other corporate functions.

The audit of information security undertaken by Acumen initiated an information management project to ensure ASDA meets its obligations as a Commonwealth agency and implements better information management processes. This project will continue in 2004-05.

The ASDA Board and Audit Committee carefully monitored audit results to ensure appropriate and timely implementation of any required corrective actions. Acumen was retained for providing the internal audit function.

A challenge for 2004-05 will be to better integrate the ISO 9001:2000 audit program with other elements of the Agency’s audit program. Supporting the various audit programs places high resource demands on ASDA.

Auditing of ASDA’s programs helps ensure that its equipment and procedures remain at the cutting edge of doping control.

Information technology

ASDA uses an outsource service provider to deliver IT infrastructure advice, maintenance and administration.

Effective customer service

The Agency has processes in place that delivered effective customer service, including procedures for handling complaints.

ASDA did not collect data on the number of complaints received from its clients as these cases are rare, however procedures, including those for managing complaints, are regularly audited. ASDA plans to implement better data collection methods for complaints in 2004-05.

In the event of a client complaint, the matter is referred to the relevant officer for action, in accordance with Agency business processes.

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Managing community service obligations

ASDA continued to provide a range of services to the Australian community. ASDA continued replying to information requests from school students, tertiary education students and the general public. The upgrading and ongoing maintenance of the ASDA website ensures accurate, up-to-date information is readily available for a wide variety of audiences.

The upgrading and ongoing maintenance of the ASDA website ensures accurate, up-to-date information is readily available for a wide variety of audiences.

ASDA presented at workshops conducted by the Australian Public Sector Commission on developing human resource capability. ASDA also delivered presentations to the International Privacy Commissioners’ Conference and the Queensland University of Technology’s Public Health Summer School. These contributions to the development of public sector best practice and community education are examples of ASDA’s commitment to excellence and meeting community service obligations.

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