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Corporate governance

Treasury’s corporate governance structures are designed to promote the achievement of our purpose, the proper use and management of public resources, our systems of risk and control, and the department’s financial sustainability.

Governance committees

Executive Board

The Executive Board comprises the Secretary and Deputy Secretaries. The Executive Board supports the Secretary to fulfil his obligations as the Accountable Authority under the Public Governance, Performance and Accountability Act 2013 and the Secretary remains the primary decision maker on all Executive Board considerations.

Health and Safety Committee

The Health and Safety Committee (HSC) assists the Secretary in carrying out his statutory obligations in accordance with the Work Health and Safety Act 2011. The HSC facilitates cooperation between Treasury management and employees to develop and review health and safety policies, procedures and initiatives, and manage health and safety risks in the workplace.

Workplace Relations Committee

The Workplace Relations Committee (WRC) is Treasury’s primary staff consultation body, convened in accordance with the Treasury Enterprise Agreement 2018-2021. The WRC undertakes consultation with our officials on issues affecting their working environment and employment conditions.

Inclusive Workplace Committee

The Inclusive Workplace Committee (IWC) is the key body for advancing inclusion and diversity in Treasury. The IWC supports the Executive Board to set and implement the department’s strategic direction for inclusion and diversity activities.

Information Strategy Committee

The Information Strategy Committee provides an enterprise view on information management and supports the department’s digital capability in line with the objectives in our corporate plan and ICT strategy.

Audit Committee

The Audit Committee provides independent advice to the Secretary on Treasury’s governance, risk, control and performance arrangements; including the department’s financial and annual performance statements. The Audit Committee Charter is available on the Treasury website at www.treasury.gov.au. The Audit Committee comprises five members — an independent chair, two independent members and two internal members.

The Audit Committee met six times in 2019-20 and received regular briefings from Treasury’s management on our priorities, operations and risks, as well as the outcomes of risk and audit activities. A Financial Statements Sub-Committee supports the Audit Committee by providing advice on the preparation of Treasury’s financial statements.

The table below provides details of the Audit Committee members, their qualifications, attendance and remuneration:

Name and Position

Qualifications and Experience

Date of Commencement

Date of Cessation

Attendance at Audit Committee Meetings

Remuneration

Mr Will Laurie

External Chair, Audit Committee

External Chair, Financial Statements Sub‑Committee

Qualifications

  • Bachelor of Economics
  • Graduate Diploma in Applied Finance and Investment

Experience

  • Managing Partner, Price Waterhouse and PWC, Canberra (30 years).
  • Chair of various audit and risk committees of the Commonwealth and ACT Governments, including Attorney‑General’s, Defence, ANAO, ACT Chief Minister’s and Treasury (20 years).
  • Private sector board experience in online retailing, property, professional services and not-for-profit education.

13 October 2014

30 September 2019

3 / 3

$6,468.00 (incl. GST)

Mr Rob Nicholl

External Member

Qualifications

  • Bachelor of Economics
  • Master of Economics
  • Research fellow in the Department of Economics, University of Tasmania

Experience

  • CEO, Australian Office of Financial Management (since January 2011).
  • Senior executive roles in public and financial policy, and commercial and regulatory experience.

13 July 2015

12 November 2019

3 / 3

$0

Ms Elizabeth Montano

External Member

Qualifications

  • Bachelor of Arts / Bachelor of Laws (UNSW)
  • Solicitor admitted NSW and Commonwealth
  • Fellow of the Australian Institute of Company Directors

Experience

  • Chair, Deputy Chair and member of boards and audit committees across a range of Government and not for profit entities (20 years).
  • Broad ranging experience in governance and the machinery of government, including in financial and performance reporting, risk, assurance, and program and project management and oversight.
  • Former CEO in the Commonwealth.
  • Senior financial services lawyer, King & Wood Mallesons.

1 October 2015

-

6 / 6

$14,041.76 (incl. GST)

Ms Lynn Kelly

Internal Member

Qualifications

  • Bachelor of Economics
  • Master of International Tax
  • Chartered Accountant, Chartered Accountants Australia/New Zealand
  • Chartered Tax Adviser, Tax Institute of Australia

Experience

  • State Director, NSW Treasury.
  • Interim CEO of the Board of Taxation.
  • Experience in taxation, spanning the public sector, corporate and advisory firms (25 years).

2 July 2019

-

6 / 6

$0

Ms Victoria Anderson

Internal Member

Qualifications

  • Bachelor of Arts / Bachelor of Laws (Hons)
  • Graduate Diploma of Legal Practice

Experience

  • Executive Director, Centre for Population, Treasury.
  • Senior positions in Treasury and the Department of Agriculture, including as Chief Risk Officer and head of the Corporate Governance Branch.

2 July 2019

-

5 /6

$0

Mr Don Cross

External Member

External Chair, Audit Committee

External Chair, Financial Statements Sub‑Committee

Qualifications

  • Numerous qualifications and professional memberships in accounting, fraud control, business, and auditing.
  • Fellow of the Institute of Chartered Accountants and a Certified Practising Accountant.

Experience

  • Chair or member of several audit committees and sub‑committees.
  • Senior Partner at KPMG and Lead Partner for KPMG’s key strategic government accounts.
  • Experience in government program delivery and reform, financial statements audit and internal audit for policy, regulatory and service delivery agencies.

1 August 2019

1 October 2019

-

-

2 / 2

3 / 3

$8,020.79 (incl. GST)

$15,345.00 (incl. GST

Dr Philippa Ryan

External Member

Qualifications

  • PhD (Law)
  • Master of Education
  • Bachelor of Laws (Hons)
  • Bachelor of Arts

Experience

  • Barrister, NSW Bar.
  • Senior Lecturer in Law, College of Law, ANU.
  • Non-Executive Director, WAM Capital and Lander & Rogers
  • Member, ISO Technical Committees and Standards Australia Blockchain Technical Committee.
  • Experience in fiduciary obligations, governance, risk, privacy, technology and litigation.

1 November 2019

-

3 / 3

$15,000.00 (excl. GST)

* As employees of the Australian Public Service, remuneration was not applicable.

Risk management

Treasury has established frameworks, tools and plans to support risk management, including the development and delivery of annual communication and capability plans, targeting areas for improvement and identifying actions and measures against these areas.

During 2019-20, Treasury reviewed and updated our enterprise risks and tolerance statements. Treasury’s enterprise risks are framed around our purpose in designing and delivering advice that is underpinned by robust modelling, forecasting and engagement. They reflect the uncertainty associated with delivery of the Government’s economic agenda and legislative program, and in the activities to support the capability of Treasury’s people and systems, and embed a culture of accountability. The Chief Risk Officer (CRO), as part of Treasury’s leadership team, supports a strong risk culture where staff are encouraged to engage with risk and opportunity in developing and delivering on our purpose. The CRO is supported by a risk working group including representatives from key corporate and policy areas across the department. As at 30 June 2020, the CRO role was held by Ms Roxanne Kelley, Deputy Secretary, Corporate and Foreign Investment Group. Treasury is reviewing its risk management framework to ensure responsibility for managing risk is embedded across the department.

Fraud prevention and control

Treasury has a fraud and corruption control plan in place, as well as processes and systems for the prevention and detection of fraud and responding to and reporting incidents.

During 2019-20 Treasury, reviewed the fraud control and corruption plan and fraud and corruption risk assessment. This included analysis of risks across key business processes and the delivery of policy advice and the Budget. Treasury is using the outcomes of this work to continue to enhance our fraud and corruption control and awareness activities, to ensure our systems, processes and assets are resilient and safeguarded from misuse.

Treasury has actively considered integrity and fraud risks from the rapid implementation of the Government’s economic response to the COVID-19 pandemic, including whole-of-program risks for the Jobkeeper program.

Treasury reports fraud information data annually to the Treasurer and the Australian Institute of Criminology. Treasury’s 2019-20 fraud certification can be found in the Letter of Transmittal.

Internal audit arrangements

Internal audit provides independent advice and assurance to the Secretary on the effectiveness of the governance, risk, compliance and performance arrangements, and our financial and operational controls.

Internal audit prepares and delivers an annual internal audit plan. The plan is developed in consultation with the Executive Board and other key departmental stakeholders, so that it reflects our risk profile and assurance concerns. Delivery of the plan is viewed as an important mechanism to assist Treasury in the delivery of our purpose and priorities, and to support continuous improvement.

In 2019-20, our internal audit function delivered compliance, framework, performance and management initiated reviews with a focus on corporate performance reporting, governance arrangements, our management of service providers, sensitive information and data, and the design and implementation of controls for a new payments management system.

Ethical standards

As the Government’s pre-eminent economic adviser, Treasury expects the highest standard of behaviour and ethical conduct from our staff. We have policies and procedures in place to ensure appropriate ethical standards, including the APS Code of Conduct and Values, are upheld in accordance with the Public Service Act 1999.

SES remuneration

SES remuneration is determined under section 24(1) of the Public Service Act 1999. Further information is provided at Management of human resources in Part 3 - Management and accountability.

Significant non-compliance issues with relevant finance laws

There were no significant instances of non-compliance with the finance law reported to the responsible minister in 2019-20.