Corporate Governance

The Department supports the delivery of its outcomes, outputs and business priorities through its accountability and related management frameworks.

Key elements of DVA's corporate governance arrangements are outlined below.

Corporate governance is concerned with the structures and processes for decision-making and with the controls and behaviour that support effective accountability for performance outcomes and results.

DVA's integrated corporate governance consists of:

• the legislative framework within which DVA operates;
• a corporate plan;
• the APS Code of Conduct;
• the Annual Report;
• the Portfolio Budget and Additional Estimates Statements;
• a corporate and business planning framework;
• a set of Chief Executive Instructions;
• the DVA Manager's Guide;
• a Risk Management policy together with guidelines on risk assessment;
• the DVA Fraud Control Plan;
• the Service Charter focusing on delivering efficient and effective service to the veteran community;
• a range of performance information (the DVA 'Balanced Scorecard'), produced quarterly, focusing on quantity, cost, timeliness, quality, and outcome measures;
• strategic issues and exception reports;
• financial reporting;
• business reporting;
• a strategic audit and review program supported by ad hoc audits as required;
• a set of management principles describing how business is to be conducted;a people management strategy;
• an IT Strategic Planning Framework; and
• management, audit and fraud control committees that provide executive involvement in operational review and strategic decision making.

Corporate governance committee structures and roles

Executive Management Group

The Executive Management Group (EMG) is concerned with the internal management of the Department and determines and evaluates progress on its agreed strategic directions. Membership of the committee comprises the Secretary (Chair), the Deputy President and the Services Member of the Repatriation Commission, the Deputy Commissioners from each State, the three Division Heads from National Office, the Principal Medical Adviser and the Department's Chief Information Officer. The EMG met four times during the year.

Standing agenda items include:

• scrutiny of the quarterly report on departmental performance;
• review of departmental running costs for the current financial year; and
• progress against strategic issues impacting on the Department's business.

Some other issues dealt with during the year included:

• progress on Defence and DVA Links activities, including records management, the new military rehabilitation and compensation legislation and a review of Military Compensation and Rehabilitation Scheme processing arrangements;
• information technology outsourcing and transition;
• corporate governance issues, including business planning and the Service Charter;
• issues related to people management, including the national learning strategy, workforce planning and staff usage of Internet/email facilities;
• the impact on service delivery resulting from the closure of the Department during the Christmas/New Year period;
• matters related to the provision of medical services, including the impact of GST on services, management of the Veterans' Home Care program, review of hospital purchasing arrangements and Local Medical Officer issues; and
• progress on the Records and Mail Management Project.

Sub-Committees of the EMG

People Initiatives Committee

The People Initiatives Committee develops and promotes DVA's strategic people priorities. The committee comprises the Division Head Corporate Development (Chair), the other Division Heads, the Branch Head People Services and the Deputy Commissioners of New South Wales, Queensland and South Australia. The committee met four times during the year.

There was significant progress in the four priority areas identified by the committee for 2002–03:

• workforce planning;
• the National Learning Strategy;
• internal communications; and
• leadership development.

Business areas worked with human resource (HR) practitioners nationally to develop the HR Strategic Priorities 2002—2006, including workforce planning, learning and development, and change management (See Our People for further information).

Veterans' Service Delivery Steering Committee

The Veterans' Service Delivery Steering Committee provides advice on developments in service delivery and guidance on community-wide service delivery innovations and external communication issues. The committee comprises the Division Head Corporate Development (Chair), Deputy Commissioners and Division Heads, the Branch Head Strategic Support, and the Chief Information Officer. The committee met three times during the year.

This year, the committee reviewed matters relating to the Service Charter 2003, Centrelink agency arrangements, the electronic forms lodgement trials in Tasmania, the introduction of Internet Protocol telephones, and the DVA Online Policy and web protocols. The committee also monitored Veterans' Satisfaction Survey developments. Australian government initiatives including the More Accessible Government program being coordinated by the Department of Transport and Regional Services were also reported to the committee.

Other corporate committees

National Audit and Fraud Committee

The National Audit and Fraud Committee (NAFCOM) objectives are to:

• review and endorse overall internal review, risk management, fraud control, protective security and DVA's other corporate governance strategies and policies to ensure that they are efficient, effective and add value;
• approve strategic plans and tactical work programs;
• provide the Secretary with assurance that the Department is complying with all legislative and other obligations;
• improve the objectivity and reliability of externally-published financial information;
• maintain a forum for communication with external bodies providing corporate governance review activities; and
• ensure that a professional working relationship is maintained with the Australian National Audit Office.

The committee is chaired by the Deputy President of the Repatriation Commission and comprises all the Division Heads, representatives from two State offices and an independent member. The National Audit and Fraud Committee met on five occasions during the year. During 2002–03, the Committee reviewed the adequacy of its terms of reference and decided to widen its purview by receiving reports on the Department's dealings with the Privacy Commissioner and the Commonwealth Ombudsman.

Sub-Committee of NAFCOM

Protective Security Committee

The Protective Security Committee reports to NAFCOM. The committee held its inaugural meeting on 29 July 2002.

The PSC objectives are to:

• oversee the development, implementation and review of security and privacy policy and procedures;
• ensure DVA security and privacy policy and procedures have due regard to regulatory requirements and developments within the Australian Government arena; and
• evaluate changes to DVA's operational environment to assess any changes to security and privacy exposure and recommend cost effective amendments to DVA policy and procedures
  to manage the new or changed risks.

The PSC met on four occasions during the year. It is chaired by the Division Head Corporate Development and includes the other Division Heads, the Deputy Commissioners of Queensland and Western Australia, the Branch Head Strategic Support, and the Chief Information Officer. The Agency Security Adviser and the Information Technology Security Adviser provide technical support.

The protective security function has:

• introduced the DVA Protective Security Policy & Manual, which articulates the policy statements applicable to all:
  • DVA staff and contractors within all DVA facilities and in every location where DVA is responsible for the protection of assets, including information;
  • external persons and entities who have been given authorised access to assets that are the responsibility of DVA; and
  • home-based and other locations where access to DVA assets has been authorised.

• developed and provided protective security awareness training sessions so that staff would be made aware of:
  • the need for adequate physical security controls;
  • the requirements for maintaining the confidentiality and integrity of information; and
  • the impact of providing official information to a third party without authorisation.
• developed performance measures for protective security, that have been incorporated into the functional business planning process; and
• facilitated the review and increase of physical security measures to:
  • meet the duty of care to people who perform the agency's functions and to those who use its services;
  • provide staff with a safe and secure environment;
  • facilitate the identification of employees, contractors, and visitors; and
  • control the access to buildings and facilities.

Information Management Steering Committee

The Information Management Steering Committee (IMSC) is chaired by the Secretary and met four times during the year. The committee includes the Deputy President, Division Heads, Deputy Commissioners from three State offices, and the Chief Information Officer.

The IMSC provides a cohesive, corporate-wide overview and direction for information
management through:

• ensuring information management and technology strategies are developed in conjunction with the development of corporate strategies;
• ensuring the information technology plan is driven by priorities of the corporate strategic business plan;
• ensuring the development of the information strategic plan is properly carried out;
• considering the importance of information as a strategic resource;
• adjudicating on information management priorities recommended by the Information Management Project Review Committee (IMPRC);
• considering recommendations of the IMPRC regarding strategic projects;
• monitoring performance of IT systems in accordance with business priorities;
• agreeing on an information management budget for the Department; and providing directions and approvals between meetings.

The first two meetings of the year were the final stages of the renegotiation process for the outsourced contract with IBM GSA. The last two meetings reviewed the IT Audit Proposed Infrastructure Architecture Risk Assessment draft report and progress of work on the IT Strategic Plan. The IMSC considered a strategic approach to mainframe utilisation and potential IT areas
for future attention such as the Internet.

Information Management Project Review Committee

The Information Management Project Review Committee met three times during the year. This committee is chaired by the Deputy President and comprises the Chief Finance Officer, the Chief Information Officer and other project sponsors as required.

The IMPRC is responsible for:

• detailed evaluation of business cases submitted by business units;ensuring significant and worthwhile business benefits are achievable;
• ensuring adequate costing estimates are provided in business cases;
• ensuring the effective management of projects by project steering committees;
• monitoring performance of IT systems in accordance with business priorities;
• recommending corporate priorities for proposals to the IMSC;
• determining information management priorities and recommending approval by the IMSC;
• overseeing progress of existing projects against time and funding requirements; and
• reviewing information management principles for use across all business units.

During the year, the committee considered 10 business cases, including health initiatives and upgrading of the financial system DOLARS. The IMPRC also monitored thirty established projects across the Department covering corporate, health, disability compensation and income support systems.

Strategic Information Services Agreement Business Transition and Technical Transformation Steering Committee

The Strategic Information Services Agreement Business Transition and Technical Transformation Steering Committee was formed in September 2002 and met 12 times during the year. The committee is chaired by the Deputy President and comprises all Division Heads, the Deputy Commissioner of Victoria, the Chief Information Officer, the Chief Finance Officer, IBM GSA's Executive Project Officer and Delivery Officer and a representative from Ernst & Young.

The Transition Steering Committee is responsible for:

• giving business and financial direction to the transition project teams;
• ensuring adequate plans for the transition projects are prepared;
• monitoring performance of the transition project teams against agreed plans and allocated funds;
• approving completion of projects;
• giving direction in resolving disputes and removing impediments to progress when reported by the transition project's coordinators; and
• reporting on progress to the Department's Executive, when required.

The committee has considered a range of technical, administrative and financial impacts of the change to information technology in DVA. The committee has progressed many of the arrangements for the transition and expects to conclude its work in early 2004.

Corporate Resources Committee

This committee is chaired by the Deputy President of the Repatriation Commission and comprises the three Division Heads, Deputy Commissioners from three State offices, one Branch Head from National office and the Chief Finance Officer. The committee met four times during 2002–03.

While DVA's overall governance arrangements recognise the responsibility of business entity managers to manage their resources, the Corporate Resources Committee takes a strategic focus on operating results, output costs and prices, cash flow and maintaining the Government's equity position. The committee reports directly to the Secretary.

For administered expenses its functions are to:

• oversee the preparation of robust estimates for the current and forward years;
• oversee the preparation of the Minister's Portfolio Budget Submission; and
• set and review performance against financial targets and strategies.

For departmental expenses its functions are to:

• oversee the preparation of robust estimates for the current and forward years;
• set and review performance against financial targets and strategies in the context of output prices and costs and equity position;
• oversee the Departmental Expenses Funding Framework, including reviewing carryovers to business entities and the allocation of resources to corporate priorities;
• oversee the management of a capital program (including IT, property and equipment); and
• maintain a continuous cycle of business entities' base funding.

Health Board of Management

The Health Board of Management has collective responsibility for the overall management and strategic direction of DVA's health program for the veteran community on behalf of the Repatriation Commission.

The Board comprises the Branch Heads and senior staff from the Health Division in National office and all State office Directors of Health. It is chaired by the Division Head Health and met four times during the year. Issues addressed included, rehabilitation, responses to a number of health and veteran-related reviews, and matters relating to the provision of medical and hospital services to entitled beneficiaries.

National Continuous Improvement Committee

The National Continuous Improvement Committee (NCIC) promotes and oversights small step continuous improvement (CI) within DVA, through regular reporting and the sharing of ideas and approaches. The NCIC also ensures effective consultation occurs with staff and union representatives and briefs the Executive Management Group on small step CI activities with a national application (see also Support Services, page 144).

The NCIC is chaired by the Secretary and comprises the Division Head Corporate Development, two Deputy Commissioners, the National Organiser for the Community and Public Sector Union (CPSU), and two CPSU work place representatives. Business representatives from each Division and State office attend each meeting and report on small step CI activities and projects in progress or recently completed within their business entity. Meetings are held twice a year, generally in May and November.

During the year the committee considered and approved revised terms of reference for the CI workshop. The workshop comprises CI business entity representatives and meets immediately before each NCIC meeting. Its role is to promote, support and progress small step CI activity as part of DVA's performance improvement and management framework. The workshop standardised and streamlined the reporting process and made significant in-roads in setting up a CI site on the Intranet.

DVA Human Research Ethics Committee

The DVA Human Research Ethics Committee (commonly referred to as the 'Ethics Committee') reports directly to the Repatriation Commission. It met six times during 2002–03. Dr Tony Ireland currently chairs the committee.

The committee must include among its membership:

• a chairperson;
• at least two lay people, including a man and a woman;
• at least one member with knowledge and current experience in areas of research regularly considered;
• at least one member with knowledge and current experience in professional care, counselling or treatment of people;
• at least one minister of religion; and
• at least one lawyer.

These members, many of whom are veterans themselves, come from within and outside the Department. In addition, DVA provides two ex officio members and secretariat support.

The primary role of the committee is to protect the welfare and rights of veterans approached to participate in research. The committee views research proposals from an ethical, moral and social perspective and considers all research proposals—irrespective of whether or not the proposals are funded by, or conducted on behalf of, the Department—that involve:

• a direct approach to members of the veteran community; and/or
• collecting personal information from veterans; and/or
• access to, and use of, DVA data (including data to be used for mail-outs).

The committee considered 62 submissions during 2002–03 (20 new submissions, 22 revised submissions, 20 protocol changes). The following studies are typical of proposals considered by the committee during the year:

• The Right Mix—a veteran-specific information package about managing alcohol consumption;
• 2003 Survey of veterans, war widows and their carers;
• Ageing men's nutrition: Implications for health, a study of retired veterans in South Australia;
• Secondary psychological stress and distress in Vietnam veterans' children: Measuring the effects of having a veteran parent;
• Psychological impact of medical discharge from service after acquiring an injury or disability;
• Development of an adolescent-specific Trauma Outcome Measure; and
• Secure Information Exchange Project (also known as the 'smart card trial').

Chief Executive Instructions

The Financial Management and Accountability Act 1997 (FMA Act) requires the Secretary to develop, tailor and improve financial management and accountability. In this task, the FMA Act authorises the Secretary to give Chief Executive's Instructions (CEIs), to officials in the Department to cover any matter necessary or convenient for carrying out or giving effect to the FMA Act.

The FMA Act requires the Secretary to spend public money efficiently, effectively and ethically. The Secretary is to ensure or to promote, through the CEIs, the proper use and management of public money, public property and other resources of the Australian Government.

The CEIs give particular emphasis to the following matters:

• handling, spending and accounting for public money;
• making commitments to spend public money;
• recovering amounts owing to the Australian Government;
• using, or disposing of, public property; and,
• acquiring property that is to be public property.

The Secretary has issued 75 CEIs that are subject to continuous review. Eleven CEIs were reissued during the year dealing with matters such as spending public moneys, payment of accounts, Australian Government credit cards, act of grace payments and waivers, compensation for detriment caused by defective administration, Comcover, Cabcharge, and official travel.

Strategic plans and business planning

Corporate Plan

DVA's Corporate Plan for 2003–04 was issued on 14 May 2003. The mission, vision, approach and values remained unchanged. The theme of the 2003–04 Corporate Plan is 'facing the challenges of the future—building on the strengths of the past'. It recognises the rapidly changing environment, including new conflicts and public scrutiny of support for our client communities. Partnerships and new legislation will require us to work closely with these communities and other providers.

Particular priorities include:

• developing and implementing the new Military Rehabilitation and Compensation Scheme;
• considering and responding to the findings of the Review of Veterans' Entitlements;
• continuing to strengthen Defence and DVA Links;
• maintaining our reputation for excellence and innovation in delivery of health and related services and strengthening our delivery of rehabilitation services;
• improving the quality and consistency of DVA's decision-making;
• recognising the different needs of our client groups, particularly in relation to younger veterans and serving members;
• continuing to ensure that the Australian public recognises and appreciates the services of our veterans;
• enhancing the way in which our corporate knowledge is maintained, shared and kept up-to-date to meet current and future business objectives;
• ensuring efficient corporate support and excellence in record management;
• harnessing efficiencies by improving our use of technology and e-business; and
• ensuring the successful transition to the new IT architecture.

The plan acknowledges the expertise and commitment of staff and the need to ensure that comprehensive training programs are provided to support DVA's people.

The Corporate Plan continues to promote a 'line of sight' between the work that DVA staff undertake and the overall corporate objectives, forming the basis for detailed work unit plans and individual performance agreements.

Information Technology Strategic Plan

The aim of the IT Strategic Plan is to articulate DVA's IT strategic directions, strategies, initiatives and objectives for a one to five-year timeframe in support of DVA's business priorities.

The IT Strategic Plan is updated annually and highlights the current year's initiatives while showing future out-year objectives. The plan is supported by key research documents which contain information from a variety of sources that cover DVA's IT, business and external environments. The IT Strategic Plan is used to provide a context and priority for IT business and infrastructure projects. A Strategic IT Planning Framework is being introduced to provide a more effective link between business priorities, the IT Strategic Plan, and IT projects. The Strategic IT Planning Framework will be updated on an on-going basis.

 

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