CASA’s governance framework provides the context within which the organisation operates to achieve its objectives, ensuring transparent, ethical and accountable evidence-based decision-making, and effectively managing risk and key stakeholder relationships.
CASA’s governance system is firmly aligned with the Civil Aviation Act 1988 and fully reflects all Commonwealth legislation and policies directly affecting CASA. The system incorporates governance and management arrangements; policy settings; internal and external communication; risk management and auditing arrangements; quality assurance; and the appointment and management of delegates and authorised persons.
CASA was established on 6 July 1995 as an independent statutory authority by an amendment to the Civil Aviation Act.
Under section 9 of the Civil Aviation Act, CASA’s primary function is to regulate the safety of civil air operations in Australia and the operation of Australian aircraft overseas.
CASA’s other safety-related functions include encouraging a greater acceptance by the aviation industry of its obligation to maintain high standards of aviation safety by providing comprehensive safety education and training and accurate and timely advice, and by fostering awareness of the importance of aviation safety and compliance with relevant legislation.
CASA also has the functions of cooperating with the Australian Transport Safety Bureau (ATSB), implementing aspects of the Australia–New Zealand mutual recognition agreements, and administering elements of the insurance and financial arrangements required under the Civil Aviation (Carriers’ Liability) Act 1959.
CASA exercises its powers under the Civil Aviation Act and through the Civil Aviation Regulations 1988, Civil Aviation Safety Regulations 1998, Civil Aviation Orders, Manuals of Standards and other legislative instruments. CASA also publishes advisory and guidance materials related to air safety.
CASA has specified obligations under the Airspace Act 2007, the Transport Safety Investigation Act 2003 and the Aviation Transport Security Act 2004.
CASA is accountable as a corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
CASA has annual reporting responsibilities under section 46 of the PGPA Act and sections 44 and 49 of the Civil Aviation Act. CASA also has a range of reporting and other responsibilities under legislation generally applicable to Commonwealth authorities.
Portfolio structure and responsible minister
CASA is a statutory authority within the Infrastructure, Transport, Cities and Regional Development portfolio.
During the reporting period, the Hon Michael McCormack MP was the minister responsible for CASA, in his capacities as Minister for Infrastructure and Transport (from 1 July 2018 to 28 August 2018) and Minister for Infrastructure, Transport and Regional Development (from 28 August 2018 to 30 June 2019).
On 21 March 2017, the Minister for Infrastructure and Transport issued a notice of strategic direction under section 12A of the Civil Aviation Act, in the form of a Statement of Expectations for the Board of CASA. The Statement of Expectations is the formal and public written expression of the Minister’s expectations concerning the operations and performance of CASA for the period from 27 March 2017 to 30 June 2019.
The Minister’s expectations are reflected in the corporate plan for 2018–19, which was endorsed by the Board in line with its functions under section 53 of the Civil Aviation Act.
Under section 19 of the PGPA Act, CASA is required to give reports, documents and information on its activities to the minister responsible for CASA or the Finance Minister. In 2018–19, this included a report on CASA’s compliance with the requirements of the public governance, performance and accountability framework and regular reports on CASA’s performance.
The CASA Board was established under Part VII of the Civil Aviation Act. The functions of the Board are to:
decide CASA’s objectives, strategies and policies
ensure that CASA performs its functions in a proper, efficient and effective manner
ensure that CASA complies with specified ministerial directions.
The Board puts in place strategies, policies and directions to guide the Chief Executive Officer/Director of Aviation Safety (CEO/DAS) and staff in their conduct of CASA’s day-to-day business.
The Board is the accountable authority of CASA under section 12 of the PGPA Act, with duties as described in Part 2-2 of that Act.
The Board comprises a Chair; a Deputy Chair; the Director of Aviation Safety, as an executive member; and up to four other members.
The Director of Aviation Safety is appointed under Part VIIA of the Civil Aviation Act, to manage CASA subject to the directions of, and in accordance with policies determined by, the Board. After consulting the Minister, the Board appoints the Director on a full-time basis for a term of up to five years, subject to possible reappointment. Mr Shane Carmody occupied the role of Director of Aviation Safety throughout 2018–19.
All other Board members are appointed on a part-time basis by the Minister for terms of up to three years, subject to possible reappointment. In appointing Board members, the Minister must ensure that there is an appropriate balance of professional expertise and experience but need not ensure that particular sectors of the aviation industry are represented.
At 30 June 2019, the Board comprised the maximum seven members, although no Deputy Chair was appointed during the reporting period.
Following the departure of Mr Jeff Boyd on 30 June 2018, on the expiry of his term as Chair of the Board, CASA welcomed Mr Anthony Mathews to the role of Chair from 20 August 2018. On 30 September 2018, Ms Philippa Stone departed on the expiry of her three-year term as a Board member. Mr Michael Bridge joined the Board on 1 October 2018.
Table 2 CASA Board members in 2018-19
Members at 30 June 2019
Mr Anthony Mathews
20 August 2018
Mr Anthony Mathews has more than 45 years experience in the aviation industry.
Mr Mathews holds an air transport pilot licence. He worked as General Manager Aviation for the Royal Flying Doctor Service of Australia and as General Manager and Chief Pilot for Qantas regional subsidiary Southern Australia Airlines. His extensive work in regional aviation also included chairing the board of the Regional Aviation Association of Australia.
Beyond aviation, Mr Mathews has worked with a number of companies and community organisations in the Mildura region of Victoria, including as a board member of the Mildura Co-operative Fruit Company. He is a director and Deputy Chair of Mildura Health Fund, a Paul Harris Fellow of the Rotary Foundation and a Fellow of the Australian Institute of Company Directors.
Mr Mathews also served on the Board of Airservices Australia, the national civil provider of air traffic control and aviation rescue firefighting services at Australia’s major airports. He was a member of the board between June 2012 and September 2017, served as deputy chairman from July 2014, and led the board’s safety committee.
Ms Anita Taylor
3 December 2014
18 December 2017
Ms Anita Taylor is a chartered accountant with mediation, psychology and governance qualifications. She has a Bachelor of Science (Psychology) and a Bachelor of Commerce (Accounting). Ms Taylor is also a glider pilot.
Ms Taylor is an experienced company director and chairperson, having previously served on financial, education, sports administration, agricultural and development boards. She has also served on committees of community and not-for-profit organisations, and public and listed companies.
Ms Taylor and her husband run a superfine merino and Angus cattle property in regional New South Wales.
Ms Cheryl Cartwright
17 April 2017
Ms Cheryl Cartwright has more than three decades experience in media, politics and industry associations, including senior management roles. She is a graduate member of the Australian Institute of Company Directors and has a strong focus on strategy and governance, including not-for-profit boards, and has held multiple non-executive director roles.
Ms Cartwright’s media experience covers print, radio and television. She has been a political and media advisor and was chief of staff to a senior cabinet minister.
From 2005 to 2017, Ms Cartwright was Chief Executive of the Australian Pipelines and Gas Association. She worked closely with the board to redefine and energise the association, dramatically increasing its size and influence and raising its profile.
Ms Cartwright brings comprehensive experience in communications, messaging, strategic planning and corporate governance to the CASA Board.
Ms Jane McAloon
2 January 2018
Ms Jane McAloon has a Bachelor of Laws and a Bachelor of Economics (Hons) from Monash University, and a Graduate Diploma in Corporate Governance. She is a fellow of the Australian Institute of Company Directors and of the Governance Institute of Australia.
Ms McAloon is a non-executive director of EnergyAustralia, Viva Energy and Port of Melbourne.
Ms McAloon has been in the natural resources, energy, infrastructure and utility industries for over 25 years. She was an executive at BHP Billiton for nine years, working on key strategic issues, corporate transactions, and market, regulatory and reputational matters. Before joining BHP Billiton she was an executive at AGL, held leadership roles in the New South Wales Government Cabinet Office and various departments, was in private legal practice and worked in the Economics Department at Monash University.
Ms McAloon has been a safety regulator in the energy sector and worked with safety management systems as a fundamental principle in successful business. Ms McAloon is Chair of the CASA Board Audit and Risk Committee.
Mr Mark Rindfleish
16 April 2018
Mr Mark Rindfleish has over 45 years experience as an airline pilot and senior operations manager with airlines in Australia and overseas. Mr Rindfleish has been Director Flight Operations Ansett Australia, Vice President Flight Operations Air New Zealand, Executive General Manager Operations Ansett, General Manager Safety Jetstar Airways and Head of Flying Operations and Chief Pilot Jetstar Australia and New Zealand. He holds an air transport pilot licence.
In addition, Mr Rindfleish has served in a number of advisory roles, including as safety advisor to Jetstar Airways boards, Chairman Flight Operations and Safety Working Group of Asia Pacific Airlines and Chairman Flight Operations Committee of Star Alliance.
Mr Rindfleish has maintained a keen interest in sport and general aviation throughout his career, and regularly flies light aircraft. He is a fellow of the Royal Aeronautical Society, a Master Air Pilot and a member of the Australian Institute of Company Directors.
Mr Michael Bridge
1 October 2018
Mr Michael Bridge holds an air transport pilot licence. He was Regular Public Transport (Airline) Manager and later Group Operations Manager for Skyport Group. Mr Bridge became a member of the Board of Airnorth when Skyport Group and Airnorth merged operations, forming Capiteq Limited, and was CEO of Capiteq Limited for 17 years.
Mr Bridge recently stepped down from the Board of the Regional Aviation Association of Australia, which he joined in 1998 and chaired for seven years. He has held numerous board positions, including on the Board of Trustees of The Aviation Industry Superannuation Trust and the AustralianSuper – Aviation Division Advisory Board, and has been Chair of the Board of Commissioners of Tourism NT since 2012. Mr Bridge is a director and former chair of the Northern Territory Major Events Company and is currently Chairman of CGH Group, an international specialist labour hire and recruitment company.
Mr Bridge has sat on Embraer advisory boards and is an ambassador for the Australian Aviation Hall of Fame, Business Events Northern Territory and the Museum and Art Gallery of the Northern Territory. He was awarded the National Australia Bank’s Medal for Management Innovation in 2004, and named the Australian Aviation Personality of the Year in 2008 for his work on creating The Australian Aviation Associations Forum, Australian aviation’s premier consulting body.
Mr Shane Carmody
Director of Aviation Safety
10 October 2016
Mr Shane Carmody commenced as Chief Executive Officer and Director of Aviation Safety on 7 June 2017, having acted in the position since 10 October 2016.
Mr Carmody has a Bachelor of Arts and a Masters of Business Administration, is a graduate member of the Australian Institute of Company Directors, and is a fellow of the Royal Aeronautical Society.
Mr Carmody’s previous appointment was as Deputy Secretary, Department of Infrastructure and Regional Development, where his areas of responsibility included local government and territories, the Office of Transport Security and aviation and airports.
A former Deputy Chief Executive of CASA, Mr Carmody has extensive experience at senior levels in the Australian Public Service. His roles have included Deputy Secretary/Chief Operating Officer at the Department of Veterans’ Affairs, Deputy President of the Repatriation Commission, and Deputy Secretary Intelligence and Security and Deputy Secretary Strategy in the Department of Defence. He has significant policy, regulatory and business management experience.
Mr Carmody joined the Australian Public Service in 1989, after a 15-year career as an Army officer serving in Australia and overseas.
Member departed before 30 June 2019
Ms Philippa Stone
1 October 2015
30 September 2018
Ms Philippa Stone has honours degrees in Arts and Law from the University of Sydney. She is a partner of Herbert Smith Freehills, a major international law firm, and is Joint Global Head of the firm’s Capital Markets group, where she specialises in equity raisings and mergers and acquisitions, including a number of major transactions in the aviation sector.
Ms Stone has been a guest lecturer at the University of New South Wales on corporate control transactions and at Sydney University on capital markets transactions. She is on the Law Council of Australia’s Corporations Law Committee. Ms Stone was a member of the Commonwealth Government’s Business Regulation Advisory Group on the CLERP 9 reforms and other Corporations Law simplification changes, and a member of the Australian Securities Exchange’s Appeals Tribunal.
Ms Stone has been a member of the International Air Services Commission, and prior to that was a non-executive director of Airservices Australia.
Table 2 summarises the qualifications and experience of the members of the Board.
CASA Board Back row L to R: Michael Bridge, Mark Rindfleish, Shane Carmody, Cheryl Cartwright
Front Row L to R: Anita Taylor, Anthony Mathews, Jane McAloon
Six scheduled Board meetings were held during 2018–19, on 24 August, 19 October,
14 December, 27 February, 30 April and 19 June. A special meeting was held with the Civil Aviation Authority of New Zealand on 26 March 2019. All Board members attended the meetings that they were eligible to attend.
In December 2018, the CASA Board undertook a joint strategic planning day with the CASA executive management team.
Board Audit and Risk Committee
The Board appoints an audit committee in accordance with section 45 of the PGPA Act. The committee’s role is to provide independent assurance and assist the Board to discharge its responsibilities under the Civil Aviation Act and the PGPA Act in respect of financial reporting, performance reporting, the system of risk oversight and management, the system of internal controls, and compliance with relevant laws and policies.
In August 2018, the Board agreed to change the name of the committee to Board Audit and Risk Committee to reflect the committee’s oversight responsibility toward CASA’s risk management framework. The responsibilities of the committee are detailed in the Board Audit and Risk Committee Charter and Governance Arrangements.
The Board Audit and Risk Committee normally consists of four members appointed by the Board, including a Board member as Chair. The Board appointed Ms Jane McAloon as Chair of the committee from 18 March 2019, replacing Ms Anita Taylor, who remained as Deputy Chair. Ms Taylor had served as Chair since December 2014.
Mr Michael Roche was reappointed in December 2018 for an additional term of one year, and Ms Donna Hardman joined the committee on 1 April 2019 for a two-year term.
The Board Audit and Risk Committee held six meetings during 2018–19, on 22 August,
14 September, 9 November, 7 February, 20 May and 17 June.
Table 3 summarises the relevant experience of the Board Audit and Risk Committee members at 30 June 2019.
Table 3 Board Audit and Risk Committee members at 30 June 2019
Ms Jane McAloon
18 March 2019
Ms Jane McAloon has been in the natural resources, energy, infrastructure and utility industries for over 25 years. She was recently an executive at BHP Billiton for nine years, was an executive at AGL and spent 10 years in leadership roles with the New South Wales Government in the Cabinet Office and various departments.
Ms McAloon serves on multiple boards and councils. She has been a safety regulator in the energy sector and worked with safety management systems as a fundamental principle in successful business.
Ms McAloon holds a Bachelor of Laws and Bachelor of Economics (Hons) from Monash University and a Graduate Diploma in Corporate Governance. She is a fellow of the Australian Institute of Company Directors and of the Governance Institute of Australia.
Ms Anita Taylor
12 December 2014
18 December 2017
Ms Anita Taylor is a chartered accountant with mediation, psychology and governance qualifications. She has a Bachelor of Science (Psychology) and a Bachelor of Commerce (Accounting). Ms Taylor is also a glider pilot.
She is an experienced company director and chairperson, having previously served on financial, education, sports administration, agricultural and development boards. She has also served on committees of community and not-for-profit organisations, and on public and listed companies.
Ms Taylor and her husband run a superfine merino and Angus cattle property in regional New South Wales.
Mr Michael Roche AM
20 February 2010
Mr Michael Roche has qualifications in accounting and information technology systems. He is a fellow of the Australian Society of Certified Practising Accountants and a member of the Australian Computer Society.
Mr Roche has extensive experience at senior levels in the Australian Government in corporate and financial management and policy development. He is the director of two not-for-profit companies as well as a member of a number of audit committees and governance boards.
Ms Donna Hardman
1 April 2019
Ms Donna Hardman had a successful 15-year executive career in the financial services sector where she designed, built, managed and transformed business operations in Australia, New Zealand, Singapore and the United Kingdom. She also spent 12 years delivering large, complex projects with Accenture in Asia and through her own start-up consultancy.
Ms Hardman brings a wealth of experience as a non-executive director on boards and committees and provides strong professional, government and community links and
well-established networks in relevant sectors and industry groups.
She holds a Bachelor of Commerce and a Master of Business Administration and is a graduate member of the Australian Institute of Company Directors.
CASA’s structure is designed to ensure that resources are aligned to core functions, providing for clear lines of reporting.
Figure 10 shows the elements and relationships of CASA’s organisational structure at 30 June 2019. CASA has no subsidiaries
Figure 10 Organisational structure at 30 June 2019
CASA’s structure remained largely unchanged in 2018–19.
To support its national focus on effectiveness, efficiency, standardisation and consistency, the Aviation Group implemented shared services and established the Regulatory Services and Surveillance Transformation team.
Shared services provide the Aviation Group with the flexibility to share and redistribute tasks during times when demand is high, staff availability is low, or priorities change significantly. The Aviation Group consolidated its business administration and technical administration staff into a national team and provided extensive training to facilitate increased flexibility, capacity and job enrichment. The shared services function resides in the Coordination and Safety Systems Branch.
The Regulatory Services and Surveillance Transformation team was established to lead and coordinate the transformation to a new operating model for the regulatory services and surveillance activities currently conducted by the regional offices and sector branches within the Aviation Group. This initiative will allow CASA to leverage its national resources in a more effective and efficient way while utilising standardised processes to deliver consistent outcomes.
Six changes in senior management occurred during the year:
Ms Philippa Crome was appointed as Executive Manager, Corporate Services Division, following the departure of Ms Tracey Frey
Mr Roger Crosthwaite was promoted to Branch Manager, Flight Standards
Ms Michelle Massey was transferred from Regional Manager, Southern, to Senior Manager, Regulatory Services and Surveillance Transformation
Mr Jason McHeyzer was transferred from Branch Manager, Regulation Implementation, to Senior Manager, Southern
Mr Chris Monahan was promoted to Executive Manager, National Operations and Standards.
The following sections summarise the qualifications, experience and responsibilities of CASA’s senior executives.
Group Executive Manager
Phone: 02 6217 1330
Email: graeme.crawford [at] casa.gov.au
Mr Graeme Crawford obtained his production and mechanical engineering and industrial management qualifications from Glasgow Caledonian University and is a former member of the Institution of Industrial Managers.
Mr Crawford began his aviation career in 1979 as a technical apprentice at Rolls-Royce in Scotland. He held a variety of engineering roles at Rolls-Royce and GE Caledonian, conducting defect investigations and test cell reject investigations and providing technical support to engine maintenance operations, as well as designing engine maintenance programs and providing technical advice and on-wing support to customer airlines and engine-leasing companies.
Mr Crawford joined CASA in May 2016. Prior to this appointment, he had over 20 years experience in senior executive roles at organisations such as Qantas, Pratt & Whitney, Goodrich Aerospace, Air Canada and General Electric. In those roles, he was responsible for maintenance businesses and led major business transformation programs delivering increased efficiencies and improved customer service. He has demonstrated the ability to motivate and mobilise people from different cultures while running aviation engineering and maintenance operations in Australia, Canada, Norway, Scotland and the United States. Mr Crawford is Chair of CASA’s Aviation Safety Committee.
The Aviation Group is CASA’s front line in maintaining aviation safety. The group uses aircraft incident and accident data to identify and proactively mitigate emerging safety issues, sets aviation standards through the development and implementation of regulations and supporting material, and performs entry control and surveillance of aviation organisations. Collaboration between branches in the Aviation Group, across CASA and with industry is essential to maintaining and improving Australia’s aviation safety record.
Stakeholder Engagement Division
Phone: 02 6217 1167
Email: rob.walker [at] casa.gov.au
Mr Rob Walker has over 30 years experience in stakeholder engagement and public affairs.
Mr Walker has led stakeholder engagement at CASA since April 2016. Prior to joining CASA, he worked at Airservices Australia in a similar senior management role.
Mr Walker is passionate about the aviation industry, is well known to many in the industry, and has significant experience in strategic stakeholder engagement, issues management and corporate communications.
Mr Walker is a management representative on the CASA Board Audit and Risk Committee, Chair of the Executive Sub-committee for Risk and Investment and a member of the Executive Sub-committee for Aviation Safety. He is a Fellow of the Royal Aeronautical Society and a private pilot.
The Stakeholder Engagement Division develops and delivers CASA’s safety promotion and education campaigns for the Australian aviation industry and is responsible for all corporate communication. The division manages CASA’s relationships with industry and other stakeholders, including by coordinating the Aviation Safety Advisory Panel and technical working groups; CASA’s relationships with government agencies, including the Minister’s office; and CASA’s strategic international engagement in policy, programs and International Civil Aviation Organization matters. The division also provides a range of regulatory service approvals and permissions to the aviation community, in close partnership with other parts of CASA.
Legal and Regulatory Affairs Division
Phone: 02 6217 1600
Email: jonathan.aleck [at] casa.gov.au
Dr Jonathan Aleck holds a Juris Doctor, a Bachelor of Arts in psychology, a Master of Arts in political science and a Doctor of Philosophy in law. He is a fellow of the Royal Aeronautical Society and the Australian Institute of Management. He is a member of the National Executive of the Australian Institute of Administrative Law, of which he served as President for two terms.
Dr Aleck joined what was then the Civil Aviation Authority as a legal officer in 1993, and subsequently served for several years as CASA’s Chief Legal Officer.
Dr Aleck has taught in the faculties of law, politics and public policy at universities in Australia, Canada, the United States and Papua New Guinea. He also worked as an independent consultant and specialist advisor in the United States. He continues to lecture regularly on contemporary international and regulatory issues relevant to the Australian aviation community, at the Australian National University, the University of New South Wales and the Australian Defence Force Academy.
Between 1998 and 2003, Dr Aleck served as Australia’s representative on the Council of the International Civil Aviation Organization (ICAO). He currently chairs ICAO’s Safety Information Protection Implementation Group and is Vice-chair of the Flight Safety Foundation’s Legal Advisory Committee. He has represented Australia at many international aviation meetings and conferences.
The Legal and Regulatory Affairs Division is responsible for CASA’s legal services functions, including providing advice on regulatory and corporate matters; representing CASA in courts, tribunals and coronial proceedings; drafting legislative and legal instruments; administering aspects of CASA’s enforcement processes; conducting investigations of potential offences under the civil aviation legislation; and managing CASA’s alcohol and other drugs testing program. The division also manages CASA’s obligations under freedom of information, privacy and public interest disclosure legislation and aspects of the Civil Aviation (Carriers’ Liability) Act 1959, and administers CASA’s conflict of interest scheme.
The regulatory affairs function includes developing and applying regulatory policy and practice, implementing CASA’s regulatory philosophy, managing the policy of industry self-administration, facilitating the establishment of safety partnership arrangements for research and development, and overseeing other high-level strategic and policy-orientated matters.
Corporate Services Division
Phone: 02 6217 1058
Email: philippa.crome [at] casa.gov.au
Ms Philippa Crome has a Master of Strategic Human Resource Management, a Master of International Relations and a Bachelor of Arts (Hons). She joined CASA in January 2019.
Prior to joining CASA, Ms Crome acquired over 20 years experience working in roles in human resources, communications and governance in the public and private sectors. Ms Crome has also worked as a parliamentary advisor, at state and Commonwealth levels, and been responsible for developing and implementing whole-of-government policy and managing government service delivery panels.
Ms Crome worked with the Australian Federal Police before joining CASA. She has also worked for the Department of Defence, Department of the Prime Minister and Cabinet, Department of Infrastructure, Transport, Regional Development and Local Government and Department of Finance. Ms Crome is Chair of CASA’s People Committee and Deputy Chair of the Business Improvement Oversight Program Board.
The Corporate Services Division contributes to aviation safety by enhancing capability, capacity and service delivery across the organisation, through the development and continuous improvement of people, processes, technology and service offerings. The division’s responsibilities include people and culture, training, governance, business transformation and IT.
Chief Financial Officer
Phone: 02 6217 1190
Email: simon.frawley [at] casa.gov.au
Mr Simon Frawley has a Bachelor of Arts in accounting and is a member of Chartered Accountants Australia and New Zealand. Mr Frawley joined CASA in October 2010, as Manager Financial Services and Reporting, and was Acting Chief Financial Officer from April 2015 until his permanent appointment to the position on 1 July 2016.
Mr Frawley started his career as a graduate with the Australian National Audit Office. After almost 10 years with that organisation he moved to the United States, where he worked for a general insurance company as an internal auditor.
On returning to Australia, Mr Frawley worked as Business Analysis Manager for the Health Services Australia Group (HSA), a government business enterprise. When HSA was acquired by Medibank Private and became Medibank Health Solutions, Mr Frawley was appointed Finance Manager. In this executive role he had overall management responsibility for corporate finance functions.
The Finance Branch is responsible for financial accounting and financial transactional services, including accounts payable, accounts receivable and travel; management accounting; internal and external budgets; cost recovery; and financial performance reporting within CASA. It is also responsible for managing CASA’s office accommodation portfolio and physical security as well as maintaining CASA’s contracts and procurement policies and compliance.
CASA applies an enterprise-wide approach to risk management that provides the framework to enable CASA to achieve its vision of Safe skies for all and is consistent with the Commonwealth Risk Management Policy 2014 and the requirements outlined in the PGPA Act.
CASA undertook a full review of its risk management framework and policy in 2018–19 to ensure strong alignment with the Commonwealth legislative framework and international standards.
In fulfilling its regulatory obligations, CASA faces a variety of potential risks, such as failure to detect breaches of safety and maintenance standards; incorrect or inconsistent application of regulatory standards; ineffective stakeholder engagement; and failure to properly carry out statutory responsibilities. The identification, analysis, treatment, monitoring and review of risk are embedded into all CASA functions and contribute directly to the achievement of CASA’s corporate goals.
The CASA Board participates in an annual risk workshop to determine CASA’s strategic risk profile and risk appetite. In late 2018, the CASA Board determined six key risks for 2019–20, replacing the 10 strategic risks identified for 2018–19.
The six key risks are regulatory failure, inadequate capability, cyber security, funding shortfalls, technological change and industry capture.
The Board reaffirmed its acceptable tolerance of key organisational risk areas as a guide for all CASA staff.
In 2018–19, CASA continued to shape the risk narrative across the leadership cohort by including a module on risk and governance in the Manager Orientation Program. This is a principles-based module that discusses the need for positive risk engagement and good governance while reinforcing the behaviours expected of CASA’s management group. The module has been well received, and forms part of the broader strategy for raising the profile of risk and governance across CASA.
The CASA Board participated in a strategic planning and risk workshop in December 2018.
CASA has continued to incrementally improve its risk reporting. The governance committee structure has been used more effectively to bring to light the risk profile of CASA’s operational-level risks. Utilising risk intelligence from operational plans has led to an increased risk dialogue at all levels across CASA.
CASA participated in the annual Comcover Risk Management Benchmarking survey, achieving a maturity assessment rating of ‘Advanced’.
In 2019–20, CASA will:
continue to improve its enterprise-wide approach to risk management and reporting
facilitate a business continuity plan scenario test
improve the quality of its enterprise risk intelligence
conduct periodic reviews in relation to emergent and future risks.
Internal audit arrangements
CASA uses the services of external audit providers to complement CASA’s internal audit section.
CASA’s risk-based strategic audit plan and rolling three-year internal audit program provide a mix of performance, financial, IT and compliance audits across the organisation. The program is designed to align with CASA’s corporate plan, operating model, strategic goals and risks.
Audit activities are conducted in accordance with relevant professional standards including but not limited to:
the International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors
the Information Systems Audit and Assurance Standards issued by ISACA
standards issued by Standards Australia and the International Organization for Standardization.
As part of the 2018–19 internal audit program, 11 audits were completed and a three-year audit program was approved.
Internal audit will continue to focus on improving and streamlining audit processes, driving quality improvements in audit reports and facilitating stronger engagement with managers to improve the timing and scoping of audits and thus the usefulness of audit findings.
Recognition of CASA reporting
CASA’s Annual Report 2017–18 was recognised with a prestigious Gold award in the 2019 Australasian Reporting Awards, making 2019 the seventh consecutive year in which CASA has received gold in recognition of the quality of its reporting.
CASA’s governance committee structure comprises the Executive Committee and four supporting committees: Aviation Safety Committee, Risk and Investment Committee, People Committee and Business Improvement Oversight Program Board.
The committee structure provides assurance and transparency for critical decision-making. A number of sub-committees and working groups have been established to oversee critical decision-making, project management and the management of key strategic risks. During 2018–19, CASA assessed the effectiveness of the committee structure to identify aspects with potential for improvement.
The Executive Committee assists the CEO/DAS and the executive leadership team to drive the implementation of strategies as decided by the Board and the CEO/DAS, and to manage the operations of CASA.
The Executive Committee meets every eight weeks to discuss strategic issues and weekly to discuss operational matters.
Aviation Safety Committee
The Aviation Safety Committee is an advisory and monitoring committee which supports the CEO/DAS and the Executive Committee on matters related to regulatory and safety compliance, safety strategies, safety performance, international safety developments and emerging aviation safety risks.
The Aviation Safety Committee meets monthly.
Risk and Investment Committee
The Risk and Investment Committee provides impartial advice and makes recommendations to the Executive Committee and the CEO/DAS on risk, finance (including budget), investment management, implementation of investments, and project and program performance issues.
The committee also provides assurance on the implementation of risk management in accordance with direction and guidance from the Board and the Board Audit and Risk Committee, and complements the role of the Board and the Board Audit and Risk Committee by considering risk at the operational and tactical levels.
The Risk and Investment Committee meets monthly.
The People Committee oversees all strategic workforce-related matters that require collaboration across CASA functions. Key responsibilities include providing oversight of leadership, performance, recruitment, retention and staff training; and monitoring organisational health levels through unscheduled absence and staff turnover metrics.
The People Committee meets quarterly.
Business Improvement Oversight Program Board
The Business Improvement Oversight Program Board has overall oversight of CASA programs and projects. It provides strategic advice and direction across all business improvement projects, improves the alignment between CASA objectives and priorities, and provides a forum for the escalation of project and program risks for resolution.
The Business Improvement Oversight Program Board meets every two months.
Public interest disclosure policy
CASA’s policy and procedures on public interest disclosure are consistent with the requirements of the Public Interest Disclosure Act 2013. They enable confidential disclosure of matters and protect disclosers from fear or threats of reprisal for making a disclosure. CASA provides an annual report of the number and types of disclosures to the Commonwealth Ombudsman.
Code of Conduct
As a condition of employment, all employees must comply with CASA’s Code of Conduct. The Code of Conduct is aligned with the Australian Public Service (APS) Code of Conduct and reflects the values and behaviours expected of all CASA employees in the course of conducting their duties or otherwise representing CASA.
CASA promotes the code to all new employees during their orientation. This affirms CASA’s expectations and approach regarding policy, regulatory philosophy and values. Online training for all employees covers content such as working with respect and applying equity and diversity principles.
During 2018–19, there were nine allegations of potential misconduct. Of those allegations, six were referred for further investigation and three were managed through informal mechanisms. In addition, one investigation was carried over from 2017–18.
Of the seven matters that were investigated in 2018–19, six were finalised, involving five employees. All employees involved were found to have breached the Code of Conduct. This resulted in one employee being terminated, two employees receiving
employment-related sanctions and two employees receiving formal reprimands. One investigation remains current and will be carried over into 2019–20.
The average time taken to investigate allegations of a contravention of the Code of Conduct during 2018–19 was 82 days, compared to 20 days taken in 2017–18. This is attributed to two claims processes that spanned the Christmas – New Year period and were affected by staff absences. Throughout 2018–19, CASA continued to focus on streamlining processes and making greater use of internal investigators.
Lower level workplace issues that were referred to managers are not captured in the statistics above. Managers resolved these matters at the local level through the Performance and Communication Scheme, alternative dispute resolution methods, or communication to raise staff awareness of appropriate behaviour in the workplace. Managers also used the Performance and Communication Scheme to raise staff awareness and, where required, establish performance and behaviour indicators in line with CASA’s values.
Table 4 provides details of investigations in the past five financial years.
Table 4 Code of Conduct investigations, 2014–15 to 2018–19
Investigations ongoing at 30 June
Employees who breached the Code of Conduct
Note: One investigation was carried over from the 2015–16 reporting period into 2016–17, one from the 2016–17 reporting period into 2017–18, and one from the 2017–18 reporting period into 2018–19.
Conflict of interest
Section 58 of the Civil Aviation Act provides that a Board member must not engage in any paid employment that, in the opinion of the Minister, conflicts with the proper performance of their duties as a member of CASA’s Board. Similarly, section 78 provides that the Director of Aviation Safety must not engage in any paid employment outside the duties of their office except with the Board’s approval.
The PGPA Act and the Public Governance, Performance and Accountability Rule 2014 provide that a Board member who has a material personal interest in a matter that relates to the affairs of CASA must disclose details of the interest to each of the other Board members. The notice must include details of the nature and extent of the Board member’s interest and how the interest relates to CASA’s affairs.
Disclosures must be made at a Board meeting, as soon as practicable after the Board member becomes aware of the interest or, if there is a change in the nature or extent of the interest, as soon as practicable after the Board member becomes aware of that change. The details of the notice given are recorded in the minutes of the next Board meeting.
Disclosures of airline lounge memberships are included in a Board member’s Standing Notice of Material Personal Interest, and the Board Secretary maintains a register of all information (records) concerning conflict of interest, hospitality and gifts.
CASA’s conflict of interest policy and procedures ensure that the knowledge and experience of the aviation industry brought to CASA by an employee do not improperly influence the employee’s performance of their duties and responsibilities. All employees complete a brief online training package which reminds them of key elements of CASA’s conflict of interest policy.
Every employee must complete conflict of interest declaration forms at various times during the course of their employment, including on commencement, following a change of circumstance (such as change of position) and during CASA’s annual conflict of interest survey.
These declarations require disclosure of a range of matters that could potentially give rise to a conflict of interest. Disclosures are assessed in terms of actual, potential and perceived risk of conflict. A mitigation strategy is established for any conflicts identified and reviewed and endorsed by the employee’s manager.
All conflict of interest management plans and associated declarations are reviewed by the Litigation, Investigations and Enforcement Branch to ensure that the proposed strategies adequately address the risks and CASA maintains a consistent approach to the management of conflicts of interest.
All CASA employees have completed online training on fraud, and new employees must complete the training within three months of commencing their employment.
CASA’s Fraud Control and Integrity Plan 2018–2020 was endorsed by the Board Audit and Risk Committee, expanding the focus of the program to cover issues including corruption and industry capture. The program remains aligned with the Commonwealth Fraud Control Framework.
CASA did not investigate any matters of alleged internal fraud in 2018–19. A small number of minor irregularities, primarily involving the use of CASA corporate travel cards, were identified and reviewed, and staff members were reminded of their obligations in relation to the use of the cards they hold. No fraud-related matters were referred to the Commonwealth Director of Public Prosecutions