Corporate Governance
Finance is committed to delivering its outcomes in a manner that is efficient, effective, ethical, open and transparent to the Parliament and the Australian public.
Finance’s governance framework and policies embody this commitment to effective governance. The framework includes the department’s senior management committees, business planning and reporting, policies to maintain the department’s high ethical standards, and risk management framework.
Senior Management Committees
Under the Public Service Act 1999 and the FMA Act, the Secretary is accountable for Finance’s performance and compliance with legal requirements. Although overall legal accountability rests with the Secretary, the size and complexity of the department is such that the widest range of experience and most detailed knowledge of Finance’s operations needs to be available when taking key decisions.
Accordingly, the Secretary has established an Executive Board with several committees (see Figure D) to provide oversight for Finance’s delivery of its outcomes.
Figure D: Finance Executive Board and its Sub-Committees
Text description of Figure D: Finance Executive Board and its sub-committees
Executive Board
The Executive Board is Finance’s peak governance and advisory body. The board’s role is to provide corporate leadership and strategic direction, set goals for the department and manage its overall performance. The Secretary chairs the board and all general managers are members. The board usually meets at least once a week in relation to its leadership and strategic functions.
Chief Audit Executive
The Chief Audit Executive oversees the internal audit function in the department, providing high level support and advice to the Secretary, Executive Board and the Audit Committee in relation to Finance’s internal audit program.
Audit Committee
The Finance Audit Committee reviews, monitors and recommends improvements to the department’s corporate governance framework, with a focus on risk management, internal controls, compliance and financial reporting. The committee provides oversight for Finance’s internal and external auditing, maintains a close working relationship with the Australian National Audit Office (ANAO), and ensures that internal audit and ANAO recommendations are implemented. The Audit Committee had an independent chair during 2008-09.
Budget Review Committee
The Budget Review Committee sets the department’s budgetary strategy and funding parameters, reviews departmental and group business plans, and considers resource allocation priorities across Finance. The Secretary chaired the Budget Review Committee during 2008-09.
Central Control Team
The Central Control Team is responsible for implementing business continuity procedures once a business interruption event is declared and the department’s Business Continuity Plan is activated. The team confirms the business interruption status, liaises with the Secretary, coordinates response and recovery within business groups, allocates resources and sets priorities for recovery to allow the normal business of the department to resume. The Division Manager of Corporate Services chaired the Central Control Team during 2008-09.
Ethics Committee
The Ethics Committee provides a forum for discussing and resolving high level ethical issues that may arise within the department. The Secretary chaired the Ethics Committee during 2008-09.
Information Technology Governance Committee
The Information Technology Governance Committee provides independent assurance and advice on ICT matters within Finance to the Secretary and Executive Board. The committee ensures that ICT initiatives undertaken by Finance include sound governance controls, support the department’s business strategy, are structured to deliver in a cost-effective and timely manner, and are consistent with whole-of-government initiatives. The committee had an independent chair during 2008-09.
Occupational Health and Safety Committee
The Occupational Health and Safety (OH&S) Committee oversees Finance’s work practices to ensure they are safe and align with workplace safety guidelines. It ensures Finance staff receive appropriate OH&S training and makes recommendations on OH&S matters to Finance’s Executive Board. The OH&S Committee includes both management and staff representatives from each of the department’s business groups and was chaired by the Division Manager of Corporate Services during 2008-09.
Remuneration Committee
The Remuneration Committee establishes and oversees the policies that govern remuneration for Finance staff, conducts annual remuneration reviews, and considers case-by-case remuneration proposals. The Secretary chaired the Remuneration Committee during 2008-09.
Security Committee
The Security Committee develops and implements security policies consistent with Finance’s business needs and the Australian Government Protective Security Manual. The committee provides leadership on physical, personnel, information and systems security within the department. The General Manager of Budget Group chaired the committee during 2008-09.
Staff Consultative Committee
The Staff Consultative Committee is a forum for staff to provide feedback on issues affecting or concerning them including: workplace culture, leading and managing in the department, the balance of work and family life, performance and recognition, and effective communications and planning. The committee consists of two staff members from each of Finance’s business groups, who present the views and opinions of their business group and report back to staff on committee outcomes. The Chief Audit Executive chaired the committee during 2008-09.
Other Committees
In addition to the Executive Board and its committees, Finance’s governance framework incorporates several steering committees and reference committees to oversee and manage particular issues.
The Australian Government Consolidated Financial Statements Audit Committee provides independent assurance to the Secretary that the Consolidated Financial Statements have been properly prepared. The committee has an independent chair who reports to the Secretary.
The Learning and Development Reference Committee provides oversight and leadership in relation to the department’s Learning and Development programs. The Division Manager of Corporate Services chairs the committee.
The Web Management Steering Committee provides oversight for Finance’s web management projects to help ensure they meet the department’s strategic goals and current business requirements. The Branch Manager of Knowledge Management and Information Services chairs the committee.