Section C C.1 Risk Management and Internal Audit

Section C C.1 Risk Management and Internal Audit Internal Audit The Directorate’s Audit Committee oversees, on behalf of the Director-General, the Directorate’s governance, risk, compliance and internal control environments, and provides assurance as to their effectiveness. The Committee acts independently of management. The EDD Audit Committee Charter was reviewed and agreed (with only minor amendments) in November 2012. There were no changes to the membership of the Audit Committee during the financial year. Annual and forward audit programs are guided by governance, risk and compliance programs and are supported by an Audit Recommendations Implementation Register. The Directorate’s three-year internal audit program was agreed by the Senior Executive Committee and by the Audit Committee in November 2012, with the program including a balance of compliance and performance audits across the three years. A significant matter of interest for the EDD Audit Committee during this reporting year was the implementation of recommendations identified by the Auditor-General during the 2011-12 financial audit, to improve the control framework in place within the Directorate. By the end of the 2012-13 reporting year the majority of recommendations had been addressed and completed. The Audit Committee specifically congratulated the relevant areas of the Directorate on their work in documenting and improving governance and control processes. Four internal audits were completed during the reporting year, with a further three internal audits undertaken but not yet complete at the end of the year. The internal audits completed and presented to the EDD Audit Committee during the 2012-13 reporting year were: • Follow Up Audit – Territory Venues and Events – November 2012 • Review of credit card usage – May 2013 • Review of the payment of invoices – May 2013 • Review of salary acquittal reports – June 2013 The EDD Audit Committee met on six occasions during 2012-13. The number of meetings attended by Committee members and observers is as follows: Name of Member Position Duration Meetings attended John Thwaite Independent Chair Full year 6 Ian Hubbard External Member Full year 5 Cathy Hudson Member Full year 6 Shane O’Leary Member Full year 3 Anita Hargreaves Observer (EDD) Full year 5 234 ECONOMIC DEVELOPMENT DIRECTORATE Name of Member Position Duration Meetings attended Dermot Walsh Observer (EDD) Full year 5 Brett Stanton Observer (ACT Audit Office) Full year 2 Jordan Langford-Smith Observer (ACT Audit Office) Part year 3 David O’Toole Observer (ACT Audit Office) Part year 1 Section A Imogen Davis Secretariat Full year 6 Risk Management In accordance with the requirements of the ACT Government Enterprise-Wide Risk Management Framework, a risk management policy and framework is in place to support EDD to effectively achieve its objectives. The Director-General's Financial Instruction No 1.2 Risk Management details the primary responsibilities and accountabilities in relation to risk management and related reporting. Additionally, the EDD Risk Section B Management Framework and Policy Statement sets out the objectives, processes and accountabilities for the management of risk within EDD such that it is systematic, strategic and effective. The EDD Risk Register and Plan identifies the key Directorate risks, their causes, impacts and mitigation strategies. These documents were approved by the Senior Executive Committee in September 2012 (following a review of the June 2012 version of these documents) to ensure their robustness. Their availability via the EDD Intranet was highlighted to staff in a December 2012 all staff message from the Director-General. EDD’s risk management policy, framework and plans are formally reviewed at least every Section C three years. Processes have been implemented to ensure the EDD Risk Register is regularly monitored, updated as relevant by Executives and business units, and reviewed by the Senior Executive and Audit Committees. A review was completed in the second half of the reporting year to identify changes to recorded risks, identify new risks, and review risk treatments and the effectiveness of controls in place. The revised Register was approved in May 2013. Business units also include risks and treatments from the organisational risk management plan, and business-specific risks into business and/or project plans. EDD has recently reviewed its Intranet site to ensure it provides ready access to information to assist staff within the Directorate in relation to risk management including available training. A May 2013 all staff message from the Director-General encouraged all staff to attend risk management training as relevant to their work in EDD. Further information may be obtained from: Ms Anita Hargreaves Director Workforce and Governance Phone: +61 2 6205 9626 Email: [email protected] ANNUAL REPORT 2012-13 235 C.2 Fraud Prevention As required under the ACT Public Service (ACTPS) Integrity Policy, the Economic Development Directorate (EDD) has in place a Fraud and Corruption Prevention Plan and a Fraud Risk Register, approved by the Directorate’s Senior Executive Committee in September 2012 following review of the June 2012 version of these documents to ensure their robustness. Additionally, the Director-General’s Financial Instruction No 1.6 Integrity and Reporting details the primary responsibilities and accountabilities in relation to fraud, integrity, and related reporting. The main objective of the EDD Fraud and Corruption Prevention Plan 2012-2014 is to prevent, to the greatest extent possible, all incidents of fraud and corruption against the Directorate. The Plan provides the basis upon which EDD controls fraud and identifies those key activities undertaken by the Directorate that require the implementation of additional controls to reduce the likelihood of fraud occurring. Processes have been implemented to ensure the Fraud Risk Register is regularly monitored, updated as relevant by Executives and business units, and endorsed by the Senior Executive and Audit Committees. A review was completed and an updated Register endorsed in May 2013. Fraud and ethics training opportunities are available to staff through the Directorate’s training and development program. An Ethics and Fraud Awareness training session was delivered in May 2013. Fraud and corruption prevention and awareness is also delivered as a component of EDD’s quarterly Induction Program, along with presentations on the ACTPS Code of Conduct, values and signature behaviours. A training session for Managers Dealing with Misconduct and Inappropriate Behaviour in the Workplace, was delivered in July 2012, and is available through the ACTPS training calendar. The Senior Executive team demonstrates, promotes, instills and fosters high standards of professionalism, integrity and work ethics in all staff. In December 2012 the Director-General requested that staff familiarise themselves with key governance documents, including the EDD Fraud and Corruption Prevention Plan 2012-2014, available via the EDD Intranet. In the second half of 2012-13 the Director-General also reminded staff of their collective responsibilities to act ethically and with integrity in the work of the Directorate. EDD has recently reviewed its Intranet site to ensure it provides ready access to information to assist staff within the Directorate in relation to fraud and integrity. Documents available include the Purchase of Land from LDA Joint Venture and LDA Estates Policy and associated Fast Facts. This outlines expectations for staff and members of their immediate family taking part in purchases of land from the Land Development Agency. The policy advises of actions required to ensure there is no actual or perceived conflict of interest in the land purchase process. In October 2012, a Director-General message to all staff, and discussion at the EDD Senior Manager’s Forum in June 2013, reminded staff of this policy. 236 ECONOMIC DEVELOPMENT DIRECTORATE Senior Executive Responsible for Business Integrity Risk The Director, Workforce and Governance is the Directorate’s Senior Executive Responsible for Business Integrity Risk (SERBIR) and manages information pertaining to actual, alleged or suspected cases of fraud. The EDD Senior Executive Committee and Audit Committee receive regular reports from the SERBIR. During 2012-13 the instance of potential fraud identified and reported in EDD’s 2011-12 Annual Report was finalised, the matter rectified and a formal warning given. Section A One incident of suspected fraudulent behaviour relating to petty cash handling was reported and an investigation was completed during the 2012-13 period. As a result of the investigation, changes have been made to the processes followed and training provided to relevant staff. Further information may be obtained from: Ms Anita Hargreaves Director Workforce and Governance Section B Phone: +61 2 6205 9626 Email: [email protected] Section C ANNUAL REPORT 2012-13 237 C.3 Public Interest Disclosure Public Interest Disclosure (PID) Procedures During the 2012-13 reporting year, two different pieces of legislation were in place to regulate public interest disclosures (PIDs), also known as ‘whistle-blowing’. The Public Interest Disclosure Act 1994 provided a vehicle for any members of the public, including ACT public servants, to report wrongdoing in the ACT public sector, and provided rights and protection to persons who reported wrongdoing. Under that piece of legislation, in early

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