Integrity Commission Annual Report 2016-17
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2016 2017 ANNUAL REPORT ESSENTIAL TO ENSURING TRUST IN GOVERNMENT The objectives of the Integrity Commission are to - improve the standard of conduct, propriety and ethics in public authorities in Tasmania; enhance public confidence that misconduct by public officers will be appropriately investigated and dealt with; and enhance the quality of, and commitment to, ethical conduct by adopting a strong, educative, preventative and advisory role. © Integrity Commission 2017 This report and further information about the Commission can be found on the website www.integrity.tas.gov.au GPO Box 822, Hobart Tasmania 7001 Phone: 1300 720 289 Email: [email protected] ISSN: 2204-6100 (printed copy) ISSN: 2204-6119 (electronic copy) President Speaker Legislative House of Council Assembly Parliament House Parliament House HOBART TAS HOBART TAS Dear Mr President Dear Mr Speaker Annual Report for 1 July 2016 to 30 June 2017 The Integrity Commission Annual Report is presented to Parliament in accordance with the Integrity Commission Act 2009, sections 11(1) and 11(2). The report covers the Commission’s activities and financial statements from 1 July 2016 to 30 June 2017. Yours sincerely, Greg Melick AO RFD SC Chief Commissioner On behalf of the Board Richard Bingham Chief Executive Officer October 2017 Copy to Minister for Justice Hon Elise Archer MP Minister for Arts Minister for Corrections Minister for Environment and Parks Minister for Justice Parliament House HOBART TAS Dear Minister Annual Report for 1 July 2016 to 30 June 2017 In accordance with section 36 of the State Service Act 2000 and section 27 of the Financial Management and Audit Act 1990, I am pleased to present the Integrity Commission Annual Report for the financial year ended 30 June 2017. Yours sincerely, Richard Bingham Chief Executive Officer October 2017 Contents Message from the Chief Commissioner 7 Message from the Chief Executive Officer 9 Snapshot of the Integrity Commission 11 Our role 12 How we work 12 Governance 13 Our budget 14 Our people 14 The year at a glance 14 Organisation chart as at 30 June 2017 16 Board of the Integrity Commission 18 Reporting 21 Reporting against Tasmanian Budget initiatives 21 Goal one - Improved standard of propriety and ethics in public authorities 22 Goal two - Enhanced public confidence that misconduct will be appropriately investigated and dealt with 38 Goal three - A best practice agency that is valued by the community 56 Other reporting 64 Superannuation certificate 67 Financial report 68 Statement of Certification 69 Financial statements 70 Notes to statements 74 Independent Auditor's Report 104 Appendix 107 Annual Report of the Integrity Commission 2016 / 2017 6 7 Essential to ensuring trust in government Message from the Chief Commissioner The Integrity Commission continues to play an influential role in supporting public authorities to improve the standard of ethics and propriety in the Greg Melick AO RFD SC Tasmanian public sector. Chief Commissioner of the Integrity Commission It has achieved its successes to date through a combination of the actions of its operations (investigations) and misconduct prevention (research and education) teams. Significant achievements by the Commission during It is also important to acknowledge the role of the 2016–17 included: Commission’s corporate team which manages the Commission’s administration and office functions. • the tabling in Parliament of reports, including monitoring the parliamentary disclosure of interest The 2016–17 period was my first full year as Chief register; and an investigation into a complaint Commissioner and the Commission continued of an alleged conflict of interest against senior under an Acting CEO Michael Easton. I am grateful executive officers at TasTAFE. to Michael in continuing the excellent work of the Commission and encouraging our continuing • hosting a board forum which launched the progression towards a more cooperative approach Commission’s new board education package – with government agencies. Managing Ethical Risks on a Board. • strong progress with the public sector, including I was very ably supported by the Commission’s Board local government councils and elected members, who continue to provide the Commission’s strategic state service agencies and government direction and excellent advice, drawing upon their businesses; raising awareness of ethical risks and considerable experience. associated conduct. • commencing implementation of recommendations of the Independent Five Year Review of the Commission. I wish to acknowledge the contributions of both the Ombudsman, Richard Connock, and the Auditor- General, Rod Whitehead, both of whom left the Commission Board in May as part of governance changes but with whom we continue to work with as part of our normal operations. Annual Report of the Integrity Commission 2016 / 2017 6 7 Essential to ensuring trust in government In addition to the key matters outlined above, the Board considered major investigations (including Operation Black), Tasmania Police audit, financial management, and misconduct prevention, education The Commission continues to operate in a fiscally and research initiatives. constrained environment which has a direct impact on the scope and timeliness of the Commission's activities in supporting the public sector to establish The Board oversaw the performance of the Acting and maintain a high standard of ethical conduct, CEO and staff of the Commission to ensure they and in enhancing the public’s confidence that any performed their functions and exercised their powers misconduct with be dealt with in a timely and in accordance with the Integrity Commission Act 2009. appropriate manner. All staff performed at a high level and demonstrated commitment and dedication to the achievement of the Commission’s objectives. The Board recognises and Despite these constraints and challenges, the commends the Acting CEO for his strong leadership Commission continues to make important and exemplary work performance during an important contributions to the public sector in supporting public period in the organisation’s evolution. authorities to build awareness of misconduct risks and capability to effectively manage them and where required, investigating misconduct complaints. Our small and dedicated team of education and prevention officers continues to research misconduct risks and deliver high quality education products, I believe that subsequent to the five-year review services and advice to the public sector comprising and selection of a new CEO, that the Commission more than 43,000 employees. The team has is entering a period of stability which will further developed strong relationships with stakeholders enhance its ability to engage with public authorities which have proven essential to its effectiveness in and produce real change in the public sector. supporting public sector organisations to meet their obligations under the Integrity Commission Act. In a similar tone, our investigative and research officers work to deal with complaints about misconduct and deliver research findings on specific issues. However, to maximise their effectiveness they Greg Melick AO RFD SC need to be monitoring new risk areas and identifying Chief Commissioner opportunities to undertake own motion investigations into relevant policies, practices and procedures to support positive change and build capability in the public sector. Annual Report of the Integrity Commission 2016 / 2017 8 9 Essential to ensuring trust in government Message from the Chief Executive Officer As the incoming Chief Executive Officer, I have been impressed by the Commission’s status within the Tasmanian public sector. Richard Bingham Chief Executive Officer of the The Chief Commissioner, the Board and the Integrity Commission Commission’s officers, have established the Commission as a positive influence and an agent for change. As required by our legislation, the Commission aims to improve the standard and quality of ethical conduct, This year the Commission released an educational and to ensure that alleged misconduct is appropriately package for boards of public authorities, with the dealt with. We seek to enhance public confidence in aim of ensuring that ethical conduct is implemented Tasmanian public authorities and their employees. at the top of an organisation and sets the tone for all employees. Being transparent about what we do means that the public – and public officials – understand our work One measure of the Commission’s success in and how we do it. An important element of this is our enhancing public confidence is its Community regular newsletter, Integrity Matters, that includes Perceptions Survey, undertaken every two years case studies and information on our investigative since 2011. processes, and educational material relating to potential misconduct risks. The newsletter is available The latest survey (carried out in June 2017) indicates on our website and is distributed to an extensive list a pleasing increase in public awareness of the of subscribers. Commission’s role (82% of respondents compared with 73% in 2015), and the fact that that a majority of In addition, our website contains a wealth of the respondents (59%) indicated that the Commission educational material for public authorities and had increased the level of accountability across the their employees. In particular, the Commission has public sector since being established in 2010. developed real-world video scenarios that can