Annual Report 2001-02: Corporate Governance

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Ethical standards and accountability

Ethical standards
Freedom of Information
External scrutiny
Internal audit and fraud control

Ethical standards

The department continued to raise awareness of appropriate ethical standards and the legal requirements of the APS Values and Code of Conduct in its induction process, and via the intranet and the distribution of circulars and promotional material. The Australian Public Service Commission’s bookmark on the APS Values and Code of Conduct was distributed to all employees, as it is every year. All new employees were briefed on document security and handling by the Agency Security Adviser and relevant guides and handbooks were available on the intranet.

Freedom of Information

In 2001–02, the department received 27 requests – three more than in 2000–01 – for access to documents under the Freedom of Information Act 1982 (the FOI Act). The documents covered a range of administrative activities undertaken by the department. The department received three applications for internal review of an FOI decision. There were two applications for review made to the Administrative Appeals Tribunal in relation to departmental FOI decisions.

Information about the department’s FOI procedures and about access to departmental and archival records in various categories appears in appendix 2. More information on FOI activity is to be found in the Annual Report on the Operation of the FOI Act produced by the Attorney-General’s Department.

External scrutiny

There were a number of legal actions in 2001–02 affecting the Prime Minister and the department. They are discussed earlier in this report under Output 4.2, Machinery of Government.

There were no reports or inquiries by the Commonwealth Ombudsman’s Office in 2001–02 dealing directly with any of the department’s responsibilities.

The department participated in five major Australian National Audit Office (ANAO) cross-agency audits that were reported on during 2001–02; more information is provided below. Where relevant, we accepted and implemented the recommendations of the ANAO audit reports.

Report No. 5: Parliamentarians’ Entitlements, 1999–2000

This report dealt with whether expenditures and entitlements accruing to parliamentarians, including Ministers, in 1999–2000 were administered and controlled appropriately.

Report No. 11: Administration of the Federation Fund Programme

This report reviewed the extent to which the administration of the Federation Fund programme met identified better practice in relation to policy development and programme planning; the process of calling for, assessing, approving and announcing proposals; and ongoing programme and project management.

Report No. 12: Selection, Implementation and Management of Financial Management Information Systems in Commonwealth Agencies

This report considered the effectiveness of Financial Management Information Systems implementations, by evaluating the effectiveness of selection and implementation management and evaluating whether the systems implemented met the needs of agencies.

Report No. 19: Payroll Management

This report made an assessment of the payroll arrangements in Commonwealth agencies to determine whether effective internal control frameworks had been established and assess whether payment of salaries had been made in accordance with the relevant terms and conditions of employment.

Report No. 33: Senate Order of 20 June 2001

As required by the Senate Order of 20 June 2001, the Auditor-General, through a sample of a number of agencies, reviewed compliance with the order. The review examined the processes agencies used to ensure that their published lists of contracts were complete, and whether confidentiality was appropriately classified.

The ANAO expressed concern that, in general, claims of confidentiality in Commonwealth contracts were often inappropriate and unnecessary. In light of this finding, and to address any public perceptions of misplaced confidentiality in contracts, we reviewed our internal policy on confidentiality classification.

Internal audit and fraud control

In 2001–02, the department’s Audit Committee considered internal audit reports that ranged from simple compliance reviews to more complex comprehensive reviews (including both compliance and performance assessment). Significant audits conducted during the year were:

Procedures relating to Cabinet Documents – the Audit Committee agreed with the recommendations, including implementation of tighter internal controls and regular reconciliation of the locations of Cabinet documents
Fringe Benefits Tax (FBT) Arrangements – the report found that the department’s 2001 FBT return was substantially compliant with the Fringe Benefits Assessment Act 1986; the minor anomalies noted were taken into consideration for the 2002 FBT calculations
Procedures relating to Records Management – as a result of the findings, the Audit Committee agreed that the department would continue with the process of compliance with relevant legislation and National Archives of Australia requirements
End User Development Framework – the internal audit recommended, and the Audit Committee agreed, that the department should develop a formal policy and standards for developing software applications unique to specific divisions.

Most of the recommendations to improve the procedures and policies that govern these areas were accepted and, where the Audit Committee agreed, the department implemented the changes.

The internal audit programme also involved a number of reviews of the department’s information systems, including the CABNET system (used for the electronic delivery of Cabinet papers), the Congratulatory Message Service and the Government Communications Unit database. The systems were all considered effective and, where relevant, recommended improvements were implemented.

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