CHAPTER 10 | accountability and management

Internal and external scrutiny

Audit Committee

The Audit Committee's role is to review, monitor and where necessary recommend improvements to:

• internal control
• financial reporting
• internal audit functions
• external audit processes
• the office process for monitoring compliance with legislation and government policy directives.

The Audit Committee comprises four members: Ron Brent, Deputy Ombudsman (Chair); Joe D'Angelo, Chief Finance Officer from the Department of the Senate; Philip Moss, Special Tax Adviser; and Natalie Humphry, Contract Manager. The Committee also has a standing position for the Australian National Audit Office.

Risk management

Risk management activities have been incorporated into the Ombudsman's planning and operations and the management of contractors. The office has developed a risk management policy and procedures to:

• create, maintain and continuously improve risk management standards
• establish, maintain and continuously improve a risk register
• help to prioritise and schedule risk control improvements in each of the Ombudsman's cost centres
• report to the Audit Committee and Executive on risk improvement and compliance
• raise awareness among staff about risk management.

An external consultant was engaged to review the existing risk management framework and assess the strategic business risks. It is expected that the Ombudsman will consider this matter early in 2004–05.

A review of occupational health and safety (OH&S) risks has been undertaken through a consultancy in relation to the Brisbane, Canberra and Melbourne offices. Security risks are also periodically reviewed.

Business continuity planning

Continuity management is an important issue for the office, allowing it to identify and assess risks that could disrupt services and functions, to predict likely problems, and to plan to avoid or minimise the impact of hazardous incidents.

We engaged a consultant during 2003–04 to assist in business continuity planning as part of our risk management strategy. The business continuity plan will:

• assess the impact on the Ombudsman's operations of a disaster which may render the Canberra office and central information technology facilities unusable for an extended period
• identify key components and provide recovery solutions for the Canberra computer systems and interstate voice and computer network
• create a complaint-handling solution for emergency operations
• establish a strategic plan for Canberra operations and the ability for the public to contact the Ombudsman in the immediate and medium-term period
• document a practical strategy for recovery, to include the office's strategic plan, key applications, essential procedural changes (if any) and team construction and responsibilities.

The plan will be finalised in 2004–05 and tested as part of the implementation.

Fraud control

The Ombudsman has adopted a fraud control policy in line with the government's Fraud Control Guidelines to reflect best practice in identifying and controlling fraud risks. This policy aims to:

• actively prevent, detect and investigate fraud
• refer offenders to appropriate agencies where necessary
• seek civil, administrative or disciplinary penalties where appropriate
• recover proceeds of fraudulent activity
• be accountable to Parliament and report to government
• maintain and improve appropriate fraud control standards
• train employees in ethical management, privacy and fraud awareness issues
• ensure that fraud control contractors have the required specialised training.

The office will review its fraud risks and controls in 2004–05, although the risks are considered to be low given the size of the office and a record of no fraud incidents.

Freedom of Information

The Freedom of Information Act 1982 (the FOI Act) requires each Australian Government agency to publish a statement setting out its role, functions, decision-making powers, consultative procedures, the documents available for public inspection, and access to such documents. This statement is available in Chapter 11.

Privacy legislation

The Ombudsman provides information as required to the Privacy Commissioner for inclusion in the Personal Information Digest. No reports by the Privacy Commission under s 30 of the Privacy Act 1988 concerning actions or practices by the office were received during 2003–04.

Litigation and legal issues

In July 2003, the Federal Magistrates Court made its decision on an application for review of the previous Commonwealth Ombudsman's decision to cease an investigation. The Court upheld the Ombudsman's decision, awarding costs. In another matter, the Federal Court dismissed an application for review of an Administrative Appeals Tribunal (AAT) decision. The AAT had previously dismissed the application for review of a decision made under the FOI Act. Court costs were again awarded to the Ombudsman.

The office is dealing with another application to the Court, which is listed for a preliminary hearing early in 2004–05.

Several applications to the AAT for review of decisions made under the FOI Act were dealt with during the year, all but one from a single FOI applicant. One matter has been decided, with the AAT accepting the office's submission that a decision to transfer a request is not subject to internal or AAT review. The other matters relating to that applicant have been adjourned until early in 2004–05 at the request of the applicant.

The office has relied on its statutory non-compellability when required by subpoena or discovery to disclose documents in matters in which it was not a party.

Occupational health and safety

The office's OH&S Committee is made up of elected representatives from each regional office and chaired by the Human Resource Manager, who represents management. The Committee met three times during the year.

All new employees are made aware of the importance and responsibilities of both staff and management for health and safety in the workplace. New employees are encouraged to have workplace assessments conducted shortly after commencement.

There were no reportable incidents during the year.

During 2003–04, the office ensured that:

• obligations for Comcare premiums were met
• compensation cases were managed in accordance with approved guidelines
• health assessments were made available to employees, where necessary
• an influenza vaccination program was undertaken
• necessary eye examinations were undertaken
• workplace assessments were conducted for employees
• first aid supplies were made available.

The office provides an Employee Assistance Program to ensure that employees and their families have access to a confidential counselling service to assist with workplace problems and management of any work-related or personal stress.

Disability action plan

The Ombudsman recognises the importance of the Disability Discrimination Act 1992 in ensuring equality of access to the services of the Commonwealth Ombudsman for people with disabilities and eliminating discriminatory practices by staff. The office endeavours to meet its obligations under the Act through implementation of the Commonwealth Disability Strategy and its Disability Action Plan.

As an employer, the Ombudsman's employment policies and procedures comply with the requirements of the Disability Discrimination Act. The following processes are in place.

• A workplace diversity plan provides for measures to assist staff who have particular needs.
• All employment policies and procedures are communicated in a manner that is responsive to the needs of employees.
• Recruitment information for potential job applicants is available direct from the office's website in accessible formats.
• Employment policies and procedures are made available in a manner that is responsive to the needs of prospective employees. Appropriate material in hard copy is provided to prospective employees when they seek details of employment opportunities.
• Managers and recruiters apply 'reasonable adjustment' principles.
• The Workplace Diversity Program allows for a flexible approach to management of employees with special needs.
• Training and development programs consider and respond to the needs of people with disabilities and include information on disability issues where they relate to the content of the program.
• Complaints/grievance mechanisms, including access to external mechanisms, are in place to address issues and concerns raised by staff and the public.

Environmental matters

The Ombudsman is required to report on certain environmental matters by s 516A(5)(a) of the Environment Protection and Biodiversity Conservation Act 1999, detailing the office's environmental performance and its contribution to ecologically sustainable development.

The Ombudsman continued to encourage staff to manage all resources, including energy, prudently and in an ecologically responsible manner. Policy guidance is provided on conservation of energy in use of lighting and computer equipment. The office actively recycles paper and cardboard products.

Advertising and market research

In accordance with reporting requirements contained in s 311A of the Commonwealth Electoral Act 1918, the total payment by the Ombudsman to advertising and market research organisations in 2003–04 is reported as $64,410 (including GST). The payment comprised:

• Advertising—six ethnic newspapers promoting awareness of the office (total $3,580).
• Market research—ACNielsen Research Pty Ltd—client satisfaction survey of random selection of complainants to the office ($60,830).

Service charter

We are committed to providing the best service possible. The Commonwealth Ombudsman Service Charter is available on our website at www.ombudsman.gov.au. The charter outlines the service that can be expected from the office, ways to provide feedback and steps that can be taken if standards are not met. Where a complainant disagrees with our decision on a complaint, a more senior officer not previously involved in the matter conducts a review.

The Ombudsman's Service Charter and the mechanisms for monitoring, responding to and recording complaints about our service will be reviewed in 2004–05.

Feedback from complainants to the office is an effective way to identify where changes may need to be made. During the year, 26 comments were received from complainants regarding our services. Most of the feedback concerned service delivery and decisions reached, with 23 of the comments positive and three negative. The negative comments related to dissatisfaction about decisions made by government agencies.