Management and accountability activities focus on continually improving how the FRDC operates and manages its organisation. A large part of the activities undertaken align and respond to legislative and financial requirements. These also align with the corporate governance section starting on page 111.

The FRDC strategic planning and reporting documents (comprising RD&E plan, annual operational plan and annual report) were completed and presented within their legislated timeframes to the Minister for Agriculture and his department. These documents aim to identify the key issues that face the FRDC, and outline strategies to take advantage of opportunities, and to minimise or mitigate against negative threats.

Principal inputs

During 2019–20, there was $5.5 million or around 16 per cent of total FRDC expenditure.

Performance indicators

Since the management and accountability outputs contribute to the planned outcome of the FRDC’s RD&E programs, they are crucial to the FRDC’s effectiveness and efficiency. These outputs are outlined below.

Staffing

The FRDC is governed by a board of directors (see page 118) appointed for their expertise and is led by a Managing Director who manages the day-to-day operations of the organisation.

In 2019–20, the FRDC employed 20 people (four staff are part time) across its operations with an average staffing level of 19.3. FRDC’s staff are one of its most important resource, and are key to the Corporation’s ongoing success.

Equal employment opportunity

The FRDC promotes a work environment that is free from discrimination on the basis of race, colour, sex, sexual preference, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion, political opinion, national extraction or social origin, or on the basis that an individual either is, or is not, a member of a union of employees, or of a particular union of employees.

The FRDC has a policy of equal employment opportunity. Merit-based principles are applied in recruitment and promotion to ensure discrimination does not occur.

Industrial democracy

The FRDC’s staff members work as a team in which all contribute freely. This process is strongly reinforced by the FRDC’s total quality management philosophy and the attendant emphasis on continual improvement. Staff members are provided with the opportunity at regular meetings to raise issues and discuss options to resolve how they are handled.

Disability and accessibility

The FRDC’s employment policies and procedures align with the Disability Discrimination Act 1992 in the broader context of the National Disability Strategy 2010–2020. The FRDC’s recruitment and staff development practices seek to eliminate disadvantage that may be contributed to by disabilities. Consultation with people with a disability and when required, with appropriate specialist organisations, is a component of the FRDC’s policies and practices, recognising the effect of a disability differs widely between individuals and that often a little thought makes a big difference in meeting a person’s needs.

Final report requirements

Under the Disability Discrimination Act 1992, Australian Government agencies are required to ensure information and services are provided in a non-discriminatory accessible manner — the FRDC aims to make all project reports meet these requirements. Where information is not accessible, the FRDC ensures that it is made available in a suitable format.

Behaviour

Corporate governance practices are evolving rapidly, both in Australia and overseas. The FRDC is proactive in adopting better practices, including those governing ethical behaviour, into its own processes. The FRDC has a code of conduct that is appropriate to its structure and activities. New directors and staff are briefed and sign off agreeing to comply with the code during induction training.

Records management

The National Archives of Australia undertakes an annual assessment (Check-up PLUS) looking at maturity and performance in information and data management. Check-up PLUS is structured to align with the National Archives’ Information Management Standard. The survey assesses agencies maturity and performance in information and data management, in line with the Digital Continuity 2020 Policy.

A total of 166 agencies completed the 2019 Check-up PLUS survey. The FRDC scored an overall maturity score of 3.81 out of 5, an increase from 2019. This is 0.56 above the Australian Government average of 3.25.

Risk management

There was no incidence of fraud detected at the FRDC during the year.

Risk management is incorporated into FRDC’s activities in accordance with its risk management policy, which is integrated into its quality management system and internal audit program. The risk policy also incorporates a fraud control framework in accordance with the Fraud Control Guidelines produced by the Attorney-General’s Department which seeks to minimise the likelihood and impact of fraud.

All staff participate in regular internal risk reviews which are used to update the FRDC’s risk register. Additionally, the board reviews the highest-ranked strategic risks at every meeting.

COVID-19 risks

Following the outbreak of COVID-19, the FRDC undertook a risk review looking at the impacts of the pandemic. A COVID-19 risks matrix was identified and is updated regularly. key risks identified were to staff, delivery of R&D and financial impacts (both on stakeholders and corporation).

Agreements and contracts

Each year the FRDC engages companies, research institutions and government agencies to undertake RD&E activities.

The process for applying for funding is outlined on the FRDC’s website. The FRDC engages each organisation using a contract or consultancy agreement that outlines the requirements and responsibilities associated with undertaking work for the FRDC.

This includes obligations around government policy and standards such as privacy, fraud, and work health and safety. A list of all active projects, including projects approved is available on the website — www.frdc.com.au.

Comcover Risk Management and Benchmarking Survey

The FRDC completed the Comcover Risk Management and benchmarking Survey, which is conducted every two years, and achieved a risk maturity of Optimal; noting that the average maturity level of all survey participants was integrated.

FIGURE 4: COMPARISON OF CURRENT AND TARGET MATURITY STATUS ACHIEVED ACROSS ELEMENTS 1–9 FOR YOUR ENTITY RELATIVE TO YOUR COMMUNITY OF PRACTICE

Element

1. Establishing a risk management policy
2. Establishing a risk management framework
3. Defining responsibility for managing risk
4. Embedding systemic risk management into business processes
5. Developing a positive risk culture
6. Communicating and consulting about risk
7. Understanding and managing shared risk
8. Maintaining risk management capability
9. Reviewing and continuously improving the management of risk

Industry contributions

At the core of FRDC’s finances is maintaining solid partnerships with those contributing stakeholders, namely the state and territory fisheries agencies and individual industry sectors. The FRDC currently has 12 IPAs.

These partnerships offer both parties a number of advantages. For industry, they provide more involvement in determining and undertaking RD&E. For the FRDC they provide a more certain flow of industry funds and ultimately a greater understanding of the fishing industry.

An overview of state and territory contributions against the maximum matchable contribution is shown in Table 8: Contributions, maximum matchable contributions by the Australian Government and returns on investment (page iii).

During the year, FRDC also held a share in Australian Seafood Co-products (ASCo) which is a company developed to look at alternate uses for fish processing waste. The company was closed on 30 june 2020 (see Note 2.1C in the financial statements, page 152).

Consultancy services and selection of suppliers

During the year, the FRDC engaged 11 consultancies which were valued at $10,000 or more (see tables below).

When selecting suppliers of goods and services, the FRDC follows its procurement policy procedure which seeks to achieve value for money and to deal fairly and impartially with its suppliers. Obtaining value for money does not necessarily require the cheapest supplier to be selected. Other factors considered are urgency, quality, ethical conduct of the supplier and whole-of-life costs.

The FRDC policies and procedures align with principles contained in the Commonwealth Procurement Rules and are available from the FRDC website.

Legal Services Directions Expenditure Report

On 9 August 2019, the FRDC submitted its signed Annual Compliance Certificate and Legal Services Directions Expenditure report to the Attorney-Generals Department.

Ministerial directions

During the year the FRDC received no ministerial directions or notifications.

The PIRD Act provides that the portfolio Minister may give direction to the Corporation with respect to the performance of its functions and the exercise of its powers. In addition, the Finance Minister, under the PGPA Act, may notify the board of any general Australian Government policies that apply to the FRDC.

Government policy

The FRDC complied with all relevant Australian Government policy requirements:

• Australian Government Cost Recovery Policy,
• Australian Government Commonwealth Procurement Rules,
• Australian Government Commonwealth Property Management Framework,
• Australian Government Public Sector Workplace bargaining Policy,
• Commonwealth Fraud Control Guidelines 2011,
• Foreign Exchange (Forex) Risk Management,
• National Code of Practice for the Construction Industry and the Commonwealth’s Implementation Guidelines.

See the compliance index starting on page 182.

Protective Security Policy Framework

The FRDC continues to align FRDC practices with the Protective Security Policy Framework. This year, a number of physical and system changes were implemented to not only meet the requirements of the framework but assist with staff safety during COVID. This included reducing access to external visitors and higher levels of access and entry. The FRDC continues to work on improving its security policies and procedures with regards to security risk management.

Judicial reviews and administrative tribunals

There were no judicial or administrative tribunal decisions during the year.

Freedom of information

During 2019–20, the FRDC received no requests pursuant to the Freedom of Information Act 1982

(FOI Act). The FRDC is required to comply with the FOI Act.

In many cases it may not be necessary to request the information under the FOI Act — the FRDC may simply provide it when asked. At all times, however, individuals have the option of applying under the FOI Act.

More information on freedom of information see Appendix E (pages 175–176) or the FRDC website to view the FOI Disclosure Log https://www.frdc.com.au/About/Freedom-of-information/Disclosure-Log.

Energy efficiency

The Commonwealth Government has established energy efficiency targets in its document Energy Efficiency in Government Operations Policy which seek to improve energy efficiency in relation to vehicles, equipment and building design.

The FRDC adheres to this policy. It is a minority tenant occupying part of an office building and does not own motor vehicles or large equipment. Prudent management of power consumption is followed within the FRDC’s premises. For example, energy efficient lighting has been installed and timer switches have been placed in offices to reduce the time lights are left on.

Work health and safety

The FRDC is committed to providing a safe and healthy environment for all staff, contractors and visitors to its workplace. The Corporation recognises that its people are its greatest asset and its most valuable resource. The FRDC’s ultimate goal is that its workplace is free of injury, illness and disease (including COVID-19). The FRDC complies with its legislative obligations under the work Health and Safety Act 2011 (WHS Act) and takes all reasonably practicable steps to ensure a safe working environment. Regular maintenance of equipment and testing of electrical cables is also undertaken.

The FRDC’s Workplace Health and Safety Policy and procedure has been developed in accordance with the requirements under the WHS Act in consultation with FRDC’s employees. The FRDC also recognises that continued reviewing and improvement of its health and safety management system makes good sense legally, morally and from a business perspective.

Comcare Australia is responsible for worker’s compensation insurance coverage within the FRDC. The insurance premiums are levied each year based on the level of salaries and wages costs and experience in claims made by employees.