ASDA Annual Report 2004-05 (Adobe PDF | 173 pages | 4.4 MB)Business improvement
ASDA places significant emphasis on continuously enhancing all aspects of its operations.
During 2004–05 the Agency improved its business activities via initiatives related to:
- Board and Audit Committee functions
- Planning and reporting
- Financial and risk management arrangements
- IT infrastructure
- An extensive audit program
- Business development processes.
Effective corporate governance
ASDA seeks to effectively manage its business by ensuring it implements sound corporate governance practices.
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, the ASDA Board and Audit Committee.
ASDA Board
The ASDA Board reviews its charter each year and sets an annual work program, which is subject to regular review. The Board also conducts an annual assessment of governance practices in the organisation using a tool developed by the Australian National Audit Office (ANAO).
Photograph: ASDA Board members (Left to Right) Kim Terrell, Nicole Livingstone, Gabrielle Trainor, Brian Sando (Chair), Jennifer Clark (Deputy Chair), Andrew McLachlan.
Corporate governance best practice index — KPI
The Board measured ASDA’s corporate governance performance as recording an 85 percent result, well above the targeted 75 percent. This measurement process was developed by the ANAO to assess corporate governance arrangements in Commonwealth Government agencies.
ASDA Audit Committee
ASDA’s Audit Committee reviews its charter on an annual basis and sets a yearly work plan, including establishing an annual audit program. The Audit Committee reports to the Board each quarter on its progress against the work plan and the audit program.
Planning and performance reporting
ASDA’s planning and performance reporting framework consists of a four-year Strategic Plan and an annual Operational Plan supported by action and project plans. These plans are 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 J (Adobe PDF).
The Agency’s 2004–05 Operational Plan identified the programs ASDA would conduct during the year.
The Agency’s 2004–05 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.
Reviews of the Operational Plan were conducted throughout the year, with a major revision being submitted to the Minister for approval in December 2004. The revision arose from the announcement of additional funding for ASDA following the 2004 Federal election. The revised plan included changes to ASDA’s programs as a result of new Government initiatives and subsequent additions to the budget to fund these changes.
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 2005–06 Operational Plan for approval.
Performance results
ASDA’s Operational and Strategic Plans set out a series of deliverables and KPIs which define the Agency’s framework for measuring efficiency and effectiveness. Outputs and outcomes were monitored regularly across all Agency areas using these plans. The performance data developed through these measures was complemented by the auditing of key operational processes and functions.
ASDA returned another year of strong performance results. The Agency met or exceeded the majority of its performance targets across all areas of operation. Of particular note were the results for client satisfaction with ASDA’s services and the engagement of clients in ASDA’s activities. These results demonstrate Australian sport's strengthened support and commitment for ASDA’s programs and continued confidence in ASDA’s products and services.
A summary of ASDA’s performance against its KPIs is at Appendix A.
Financial management
ASDA faced an extremely tight financial situation at the beginning of 2004–05, with a significant reduction in non-government income and increasing costs associated with delivering its outputs. As a result, a great deal of emphasis was placed on effective financial management, including vigorous pursuit of cost control and reduction initiatives.
The reduction in non-government income was largely due to WADA commencing internal management of its worldwide OOC drug testing program at the beginning of 2004. Prior to this decision, management of the testing program had been outsourced to the DFSC which was a joint venture arrangement between ASDA and its Canadian and Norwegian equivalents.
The management of this program had generated significant FFS income for ASDA over a four year period. The 2004–05 financial year was the first year since the DFSC’s establishment that ASDA did not secure any FFS income from its operations. As a result the Agency secured lower levels of non-government income and commenced the year with a tight budget situation. ASDA’s financial management processes are designed to ensure the most efficient and effective use of resources to deliver on business priorities, in compliance with Commonwealth requirements.
The budget situation improved throughout the year with the receipt of additional Government appropriation through the Additional Estimates process.
The budget situation improved throughout the year with the receipt of additional Government appropriation through the Additional Estimates process. The additional appropriation recognised the Government’s strengthened commitment through the Tough on Drugs in Sport and the Building Australian Communities through Sport policies.
ASDA outsources its financial management and administration functions. These services were reviewed in 2004–05, with a business case being prepared to compare outsourcing options with in-house solutions. Outsourcing was identified as the best option for the Agency, and a request for tender was issued in December, with a contract to be signed with a service provider early in 2005–06.
ASDA undertakes monthly reviews of its budget and revises the allocation of financial resources on a quarterly basis.
ASDA’s financial management has focused on cost control and reduction initiatives. With a very significant increase in Government funding in 2005–06, ASDA will aim to maintain effective cost control, but also implement improvements to the way funding is tracked against ASDA’s outputs, to lend greater sophistication to the Agency’s budgeting and financial management.
ASDA’s 2004–05 financial statements are at Appendix I (Adobe PDF).
Financial outlook
On 23 June 2005 the Minister announced that the Government will establish a new independent body, ASADA, to continue the fight against drugs in sport in Australia.
This announcement will have significant implications for ASDA in 2005–06. During the year it is likely ASDA will cease its operations as ASDA and transfer them to ASADA.
ASADA will also be responsible for the investigation of doping allegations and the presentation of cases at hearings. This process will bring considerable work to define and establish the organisation in the Australian anti-doping environment.
The Government will support the establishment of ASADA through the commitment of an additional $5.87million over four years, which will supplement ASDA’s existing appropriation. This will result in further budget increases and represents the largest funding amount ever directly contributed by Government to the fight against doping.
In 2005–06 there will be a further injection of income from the provision of services to the Melbourne 2006 Commonwealth Games. ASDA will implement a comprehensive anti-doping program at the Games which will consist of IC and OOC testing and an education program.
Return on investment — KPI
ASDA’s return on investment was 0.97 percent, which is below the target of 2 percent. This result reflects the Agency’s decision to invest in the development of new initiatives arising out of the Government’s election commitments. This allowed the Agency to make progress on key projects prior to receiving increased Government funding.
Budget variance — KPI
ASDA’s budget variance was –1.3 percent, which is well within the target of +/–3 percent. This is an excellent result and demonstrates the effective management of income and expenditure within the Agency.
Contracting and purchasing
Competitive tendering and contracting
ASDA endeavours to implement a best-practice approach to its contracting and purchasing arrangements.
ASDA endeavours to implement a best-practice approach to its contracting and purchasing arrangements. In the 2004–05 financial year ASDA implemented contracts from competitive tendering processes across a number of business areas. These processes were conducted in accordance with the Commonwealth Procurement Guidelines and the requirements of the Commonwealth Authorities and Companies Act 1997.
2004–05 has also seen ASDA undertake a review of its contract management processes to ensure compliance with Commonwealth requirements and guidelines. ASDA’s processes are designed to ensure that purchasing and contract management procedures maximise cost efficiencies, identify risks and meet all legislative and best practice requirements.
Consultants and outsourcing
As a small Agency, ASDA utilises a range of consultants and outsource service providers to support its business. In 2004–05 ASDA engaged consultants to support key business initiatives including a review of its compliance with the Code, learning and development activities, analysis of drug testing processes and the development of a range of IT initiatives. Total expenditure on consultants was $190,659, representing two percent of total expenditure.
ASDA also outsources corporate support functions including IT support, payroll and financial management. A review of arrangements for payroll and financial management was conducted, with a request for tender issued during the year. Contracts for these services will be finalised in 2005–06.
Total expenditure on outsourced services was $475,701, representing five percent of total expenditure.
Asset management
ASDA’s business processes ensured effective asset management. These processes cover the purchase, management and disposal of assets. The Agency maintains a register to ensure its assets are effectively accounted for. The management of assets is assessed via ASDA’s internal audit program.
Responding to business opportunities
Business development
ASDA sought, where appropriate, to pursue anti-doping initiatives on a commercial basis with relevant sporting organisations.
ASDA sought, where appropriate, to pursue anti-doping initiatives on a FFS basis with relevant sporting organisations. This included the development of a proposal for the provision of services to the Melbourne 2006 Commonwealth Games, the provision of services to a number of one-off events in Australia and changes to the testing programs undertaken by existing clients. This work is done on a cost recovery basis.
Employing best practice
Risk management
ASDA conducts a systematic review and documentation of risks at the beginning of each financial year. ASDA’s risk register is approved by the Board and is monitored on a quarterly basis to ensure its currency and that appropriate risk mitigation strategies are in place.
An audit and risk management group was established in 2004–05 to review relevant business processes and to enhance links between the risk management and audit programs. The work of this group will continue in 2005–06.
Indemnities and insurance premiums
ASDA has a range of insurance covers, consistent with Government requirements. Comcover provides public liability, product liability, directors and officers liability and professional indemnity insurance cover for ASDA. No claims were made during 2004–05.
Audit program
ASDA implemented a comprehensive internal and external audit program that included audits of ASDA’s financial management, the drug testing process, IT security, occupational health & safety (OH&S) and a range of other corporate functions.
The audit of IT security undertaken by Acumen resulted in the identification of a number of improvements that can be made. Some improvements have already been introduced, with further work to occur in 2005–06.
The ASDA Board and Audit Committee carefully monitored audit results to ensure appropriate and timely implementation of any required corrective actions.
Information technology
ASDA uses outsource service providers to deliver IT infrastructure advice, maintenance and administration. Key IT initiatives during the year included new desktop computers for all staff, the upgrading of some IT infrastructure and the conduct of an IT security audit. These initiatives were aimed at ensuring ASDA continues to make effective use of IT to support all aspects of its business.
Information and records management
ASDA has progressed work on the design and development of a recordkeeping system in accordance with the National Archives of Australia requirements. Further progress on this system is expected in the first half of 2005–06.
The Agency’s policies and procedures have been adjusted to reflect the move towards more efficient and effective records management.
Effective customer service
The Agency has processes in place that deliver 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.
In the event of a client complaint, the matter is referred to the relevant officer for action, in accordance with Agency business processes.
Managing community service obligations
ASDA continued to provide a range of services to the Australian community. ASDA replied to 260 information requests from school students, tertiary education students and the general public.
Anti-doping issues are becoming a required curriculum for many educational institutions. During 2004–05 ASDA provided advice on text book content.
ASDA provided assistance to two media organisations in the preparation of articles targeted at school aged children on anti-doping issues.
ASDA provided assistance to two media organisations in the preparation of articles aimed at school aged children on anti-doping issues.
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 continued to provide community service leave for staff undertaking relevant community service activities. This was accessed by staff for a range of purposes including regular blood donations.
ASDA also undertook a number of fundraising activities to allow individual staff members to make donations to appeals including various Christmas appeals and following the tsunami in Asia.