BUSINESS PLANNING AND PERFORMANCE REPORTING

Business planning and performance reporting process is a key component of Finance's ability to deliver for its customers. At the beginning of the financial year each Business Group prepares a business plan outlining their strategies for achieving desired outcomes and goals. Business Groups encourage staff to provide input to these plans during the drafting process. The plans are then discussed and finalised at Management Board and made available to staff on Finance's intranet site.

Business Groups report performance and progress against business plan initiatives throughout the year. Monthly management reports are prepared by each Business Group providing updates on achievements and future issues, as well as progress against financial and non-financial key performance indicators. Finance's business planning process also requires that external service providers produce annual business plans matching Finance's business requirements. These plans ensure that service provider activities are aligned with Finance's outputs and outcomes.

Finance is currently implementing an online human resources information system. The InfoHRM reporting system is considered to be leading edge internationally by both major software vendors and clients. An Australian product, it is widely used in North America.

InfoHRM benchmarking provides an integrated method of measuring the effectiveness of the human resources function within the organisation and comparing this with other organisations. These comparisons can be made nationally and internationally by industry type, company size and region.

During 2000–01, 20 internal audits were completed, with several more in progress at the end of the financial year. These internal audits are performed either at the request of the Audit Committee, as part of an agreed Internal Audit Plan, or at the request of management. In both cases, the purpose of the internal audit is to provide management with an independent assessment of Finance operations and controls, in terms of compliance and performance. In addition, internal audits seek to provide recommendations to management on ways to improve Finance's business processes. Internal audits either consider compliance issues or evaluate efficiency, effectiveness and consistency with a view to achieving better practice in the public and private sectors.

Risk Management

On 28 July 2000, Finance launched a new risk management policy framework. Its key components included:

• Chief Executive Instructions (CEIs), which are both policy and operational guidelines;
  
  
• risk management guidelines (based on the standard AS/NZS 4360:1999—Risk Management);
  
  
• Finance-wide awareness programmes;
  
  
• an intranet website and other supporting marketing tools;
  
  
• a Risk Management Skills Development Module;
  
  
• business risk assessments of Business Groups and fraud.

This risk management framework is an example of the Department's commitment to a forward-thinking and systematic approach to best practice. It helps Finance to capitalise on opportunities, manage risk and improve overall performance.

Individual Business Groups are responsible for integrating risk management into their everyday business practices. In line with this policy framework, the Department's Risk Management Unit within Corporate Group facilitates best practice in risk management.