Management and Accountability

3. Management and Accountability

Corporate governance

Senior management committees and their roles

The governance structure of the Department of the Environment and Energy is designed to reinforce the Department’s strategy relating to people, policy, budget and risk. Endorsed by the Executive Board, the structure includes four departmental committees: the People Committee, the Governance and Performance Committee, the Information and Communications Technology Committee and the Departmental Health and Safety Committee (see Figure 3.1). The committees report directly to the Executive Board. A fifth committee, thePortfolio Audit Committee, reports directly to the Secretary.

A key objective of the structure is to enable an outward-looking strategic focus across the Department’s leadership team, recognising the critical role our Senior Executive Service (SES) members play in delivering our purposes.

Each committee has a clear set of responsibilities and a decision-making role for issues within their area. Consideration of matters which previously occurred at the Executive Board now occur in detail at the departmental committee level and then go to the Executive Board fordecision.

Each committee comprises people from both SES Band 2 and Band 1 cohorts and is regarded as an important part of an SES officer’s corporate contribution. Members are not representatives of their own work areas but consider the organisation as a whole.

Ms Barbara Belcher’s independent 2015 Review of whole-of-government internal regulation highlighted the Department’s introduction of its four governance committees as an example of good practice in the Australian Public Service. Establishment of these committees will address the culture of risk aversion and embed a strategic focus in the Department’s decision‑making.

Figure 3.1: Key departmental governance committees

Corporate planning and evaluation

In August 2015, the Department published its Corporate Plan 2015–16, the first required under the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule). The plan includes our purposes and activities for 2015–16 and what we want to achieve over the four-year planning period 2015–16 to 2018–19. It sets out our role, operational context, capability and risk oversight and management.

During 2015–16, the Department developed the Evaluation Policy 2015–2020, which sets out our approach to evaluation to support consistent and transparent assessment of government policies and inform decision-making. The policy is designed to support our implementation of the enhanced Australian Government performance framework under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Risk management

The Department is progressing to a more principles-based approach to risk management, consistent with the direction set by the Belcher review and the Shergold review (seepage95). InNovember2015, the Department appointed a Chief Risk Officer to deepen our understanding of and engagement with risk and to help divisions with their risk management. The Chief Risk Officer identifies and monitors the most significant long-term risks facing the Department and drives cultural change through training, mentoring and shared learning.

The Department’s internal Risk Management Framework comprises policy, guidelines, tools and templates. It informs staff of responsibilities and expectations and helps them identify, analyse and manage risk.

The Chief Risk Officer oversees the framework and in 2015–16 has:

• implemented a new approach to enterprise risk reporting that captures emerging risks and opportunities alongside current enterprise risk
• engaged with other Australian Government Chief Risk Officers to share and gatherinformation
• begun a review of the internal controls framework
• improved the templates for risk assessment and major project reporting
• established an internal network to drive change across divisions
• integrated the current policy and guidelines into one practical document for launch in early2016–17.

The framework will be supported by quarterly activities. These include risk workshops, setting and communicating tolerance levels and providing a clear line of sight between the executive and divisions.

In 2016, the Department performed well in the annual Comcover Risk Management Benchmarking Survey, which measures the appropriateness of an entity’s risk management framework, processes and systems. We received an overall maturity level of ‘Advanced’ and an optimal maturity level for six of the nine elements.

Internal audit

The internal audit program improves the operation of the Department by evaluating and improving the effectiveness of risk management, controls and governance processes within and across each division.

In 2015, the Department, the Director of National Parks and the Sydney Harbor Federation Trust agreed to jointly establish a single audit committee, the Portfolio Audit Committee. Thiscommittee provides independent assurance and advice to the three organisations. Thejoint committee arrangement is better able to address cross-entity issues and facilitate sharing of information between the three entities. In 2015–16, the Department completed and tabled six internal audit reports to the Portfolio Audit Committee.

The committee met six times in total. Two of these meetings, both in August2015, were under the terms of the former Departmental Audit Committee, the first to consider the 2014–15 financial statements of the Department and the Natural Heritage Trust of Australia and the second to consider the 2014–15 financial statement of the National Water Commission.

Mr Geoff Knuckey, Mr Michael Roche, Ms Vicki Middleton and Dr Diana Wright were reappointed to the Portfolio Audit Committee, from the Departmental Audit Committee, in their respective capacities as the chair and members. One new appointment was made to the committee in February2016 when MrDeanKnudson replaced MrDavidParker as a departmental member and Deputy Chair (see Table 3.1).

Table 3.1: Departmental Audit Committee and Portfolio Audit Committee membership and meeting attendance, 2015–16

Fraud control

The Department’s Fraud Control Plan 2014–16 promotes a culture that prevents, detects and deters fraud. It:

• makes a statement of zero tolerance for fraud
• sets out how we manage our fraud risks
• describes employees’ fraud control responsibilities
• describes our fraud prevention, detection and investigation arrangements
• sets out our fraud reporting obligations.

To reflect our activities, we review the plan every two years and whenever there is a change in our work. Fraud risk assessments underpin the plan. Appendix 1 provides the Secretary’s certification that:

• the Department has prepared fraud risk assessments and fraud control plans
• appropriate mechanisms that meet the Department’s specific needs are in place for preventing, detecting incidents of, investigating or otherwise dealing with and recording or reporting fraud
• we have taken all reasonable measures to deal appropriately with fraud relating to theDepartment.

Fraud risk assessment

The assessment process involves senior executives, program managers and subject matter experts. They evaluate existing and emerging fraud risks annually to ensure appropriate controls are in place to manage those risks.

Fraud awareness

Our fraud awareness strategy includes online fraud awareness training and regular fraud-related messages to staff. Online training tools, to satisfy the training needs for the Department’s diverse activities, are available to staff. Face-to-face tools are currently indevelopment.

Fraud investigation

Our Investigations and Intelligence Section and Behaviour and Conduct Unit investigated allegations of fraud and criminal behaviour that involved our staff and recipients of our funding. Risks identified through investigations were reported to relevant departmental governance committees. If appropriate, we submit briefs-of-evidence recommending prosecution to the Commonwealth Director of Public Prosecutions for consideration.

The Department’s investigations were conducted in line with the Australian Government Investigation Standards and all departmental investigators have at least the minimum qualifications defined in the standards.

Project management

The Department provided strategic guidance and support for project management to ensure that departmental programs and projects were managed professionally. This included providing staff training and reviewing individual programs and projects. The Project Management Framework continues to improve policy design and implementation across theDepartment.

Public Governance, Performance and Accountability Act compliance

Among other things, Section 19(1) of the PGPA Act requires accountable authorities of Commonwealth entities to notify their responsible minister, as soon as practicable, of any significant issue that has affected the entity. Such issues include significant non-compliance in relation to the finance law. Finance law includes the PGPA Act, the PGPA Rule, instruments made under the PGPA Act (including Accountable Authority Instructions) and appropriations Acts. During 2015–16, the Department had no significant breaches of the PGPA Act to report.

Compliance with the Government’s resource management framework is achieved by a combination of procedural and system-based controls that direct spending and resource‑related decisions. Face-to-face and online training is available to all staff to support their knowledge of the requirements concerning appropriate use of public resources. Continuous internal quality assurance and monitoring activities are in place.

Central policy support

Communications and engagement

The Department’s central communications and engagement teams advised staff on communication strategies; market research; corporate branding and media policy; managingtraining, liaison, events and issues; and communications content and products.

A multimedia Green Army information campaign, which was launched in August2015 and concluded in May2016, was successful in encouraging young people to participate in Green Army projects and environment and community organisations to host Green Army projects. For further information on the Green Army see Part 2, ‘Sustainable management of natural resources’, page 24.

We continue to develop our social media presence, using Twitter, Facebook, YouTube and Instagram to showcase a range of policies and programs.

Our Community Information Unit responded to requests from the public for information and feedback on our services. In 2015–16, the unit responded to 12,056 enquiries, of which:

• 42 per cent were about grant and funding programs
• 58 per cent were seeking general information about the Department and its programs.

In 2015–16, the Community Information Unit closed the Department’s publications shopfront and ended the contract for warehousing and distribution of publications. We have adopted a digital-by-design approach to our publications, with printing of hard copy publications now the exception.

International engagement activities

In 2015–16, the Department’s international engagement activities strengthened key bilateral and regional relationships and advanced our expertise in science and research. Additionallywe engaged with international organisations and forums that affect domestic policy, programsand legislation. We pursued outcomes in international forums related to:

• Antarctica and the Southern Ocean (see page 68)
• biodiversity and ecosystem services (see pages 24, 83 and below)
• climate change (see pages 56, 61)
• free trade agreements
• hazardous waste and chemicals (see page 40)
• the Pacific Regional Environment Programme (see page 40)
• protection of the ozone layer (see pages 49, 53)
• the United Nations Environment Programme (see below)
• the Organisation for Economic Cooperation and Development Environment Policy Committee (see below)
• wetlands of international importance (see page 76)
• whales and migratory species (see page 45)
• wildlife trade (see page 47)
• World Heritage (see page 41).

United Nations Environment Programme

The Department’s engagement with the United Nations Environment Programme included representation at the second session of the United Nations Environment Assembly in May2016 in Nairobi, Kenya. The assembly, to which all United Nations member states belong, is the world’s highest-level decision-making body on the environment.

The assembly convened under the overarching theme of delivering on the environmental dimensions of the 2030 Agenda for Sustainable Development. The assembly agreed to 25resolutions, including three co-sponsored by Australia focusing on oceans and seas, marineplastic litter and microplastics and sustainable coral reef management.

Organisation for Economic Cooperation and Development Environment Policy Committee

During 2015–16, the Department participated in strategic meetings of the Organisation for Economic Cooperation and Development Environment Policy Committee. The committee plays a role in identifying effective and economically efficient responses to environmental challenges such as polluted air, municipal waste, water scarcity, ozone depletion, biodiversityloss and climate change.

Environmental Goods Agreement

The Department has engaged in multilateral negotiations of the Environmental Goods Agreement. The agreement will eliminate tariffs on environmental goods, making them cheaper and more accessible. Environmental goods include equipment for air pollution control, solid and hazardous waste management, environmental remediation, renewable energy, energy and resource efficiency, wastewater management and water treatment and noise and vibration abatement.

Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services

Under the auspices of the United Nations, the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) works to strengthen the role of science in public decision-making on biodiversity and ecosystem services. The Department led Australia’s delegation to the fourth session of the plenary of the IPBES in Kuala Lumpur, Malaysia, inFebruary2016. The plenary revised the platform’s first work program (2014–2018), adopteda revised budget for 2017, produced its first suite of final products, including a thematic assessment on pollinators, pollination and food production and elected new members to the IPBES Bureau for the next three years.

United Nations Convention to Combat Desertification

Australia has been a signatory since 2000 to the United Nations Convention to Combat Desertification which has been adopted by 195 parties. The convention’s objective is to reverse and prevent desertification and land degradation and to mitigate the effects of drought in affected areas to support poverty reduction and environmental sustainability.

Australia has substantial policy and technical expertise in sustainable management of land and water. We contribute to long-term integrated strategies of the convention that focus on improving land productivity and rehabilitating, conserving and sustainably managing land and water resources.

Innovation and behavioural insights

The Department’s innovation and behavioural insights activities support the implementation of new ideas. Innovation is an important way of improving our performance and productivity. Innovations allow us to deliver better environmental policies or programs that support the Government’s objectives.

In July 2015, the Department participated in the public service-wide Innovation month by holding events designed to encourage, inform and enable the public service to further embrace innovation. The theme in 2015 was 'Dream, Dare, Do'. The Department’s activities focused on sharing ideas, experience, techniques and challenges. In 2015-16, for the first time the Secretary’s awards for innovation included a new category ‘new ideas’ to encourage staff to step outside their day jobs and put forward innovative solutions to a problem facing the Department. The Secretary’s awards for innovation attracted 71 nominations received across the two categories: implemented ideas and new ideas.

Ongoing support for innovation within the Department is provided by the Innovation network. The group’s role is to build awareness of innovation through sharing information, ideas, case studies, and innovation success stories.

During 2015–16, the Department used behavioural insights to inform our work. Behavioural insights uses psychology, statistics and neuroscience to understand how we make decisions and to influence people's choices. We are investigating inexpensive improvements to our policies and programs that can increase positive outcomes for the environment. In February 2016, we became a foundational member of the Behavioural Economics Team of the Australian Government (BETA). BETA’s mission is to build behavioural economics capability across the public service and drive its use in policy design by testing what works, where and in whatcontext.

We have also run courses to increase our capability to use behavioural insights, including training to provide an understanding of the basic concepts underpinning behavioural insights and the use of randomised control trials.

Regulatory reform

The Department made another strong contribution to the Government’s objective of reducing red tape by achieving a net reduction of regulatory burden equal to $440.9 million in 2015. Thiswas a substantial contribution to the Australian Government’s total performance for 2015.

Visiting fellow program

In 2015–16, the Department introduced a visiting fellow program. The program aims to engage external experts to obtain their insights on the portfolio’s strategic priorities and build the capability of staff in the Department. Visiting fellows are invited to challenge existing policy settings through participating in strategic conversations, critiquing policy development and providing skills and guidance where relevant. The inaugural fellow, Dr Steve Hatfield-Dodds, isone of Australia’s leading researchers on sustainability and climate change policy.He is Chief Coordinating Scientist, Integration Science and Public Policy at the Commonwealth Scientific and Industrial Research Organisation and Honorary Professor of Public Policy at the Australian National University’s Crawford School of Public Policy.

External scrutiny

Royal commissions

Home Insulation Program

The Royal Commission into the Home Insulation Program started on 12December2013. Publichearings were held between March and May 2014. The report was tabled in Parliament on 1September2014.

On behalf of the former Minister for the Environment, the Hon Greg Hunt MP (now Minister for Industry, Innovation and Science), the Department coordinated the Government’s responses to the Royal Commission report. The interim and final responses were announced on 30September2014 and 23December2014 respectively. The former Minister provided his final update on the response on 5February2016.