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INTERNAL GOVERNANCE

The CEO oversees the day-to-day administration of IBA and is supported by the Executive, internal management committees, IBA employees, and consultants and contractors.

The organisational structure of IBA at 30 June 2020 is set out in FIGURE 12: ORGANISATIONAL STRUCTURE OF IBA AT 30 JUNE 2020

SIGNIFICANT ACTIVITIES AND CHANGES

This year IBA’s Board, supported by the Audit Risk and Performance Committee, approved a revised Fraud Control Plan and Fraud Control Register. Mandatory awareness training continued throughout 2019–20 to further support a zero-tolerance approach to fraud.

IBA’s 2016–2019 staff Enterprise Agreement (EA) expired during FY 2018–19. After taking account of staff sentiment, IBA utilised the determinations mechanism to allow the existing Enterprise Agreement to be extended. Staff remuneration was determined in accordance with APS Workplace Bargaining Policy 2018, while the balance of conditions in the previous staff EA were unchanged. Due to COVID-19 economic considerations, the IBA Board and Executive agreed to defer scheduled pay rises temporarily in step with the wider APS.

The Audit, Risk and Performance Committee provided valuable oversight, guidance and advice to management in the spirit of continuous improvement, in the area of risk management in 2019–20. A revised Risk Management Framework, coupled with an increased focus on risk acceptance and mitigation has resulted in stronger systems, process and people and an always evolving positive risk management culture in the organisation.

To further support and build on IBA’s due diligence, compliance and robust decision making, a Significant Project and Product Approval Framework, providing governance of significant transactions, was successfully launched in 2020.

IBA’s Customer Service Charter, which complements the complaints management system, is in the process of being updated to ensure we continue to act with integrity and that we deal with customers promptly and respectfully.

ETHICAL BEHAVIOUR AND FRAUD CONTROL

Standards of behaviour for IBA employees are specified in IBA’s Code of Conduct, Values and Behaviours Framework which includes guidance on managing conflicts of interest. The EA requires that staff comply with this to be eligible for salary advancement.

IBA’s fraud control plan is established in accordance with section 10 of the Public Governance, Performance and Accountability Rule 2014.

The Public Interest Disclosure Act 2013 provides public officials with certain protections when they make disclosures about alleged wrongdoing in the Commonwealth public sector. The term ‘public official’ includes a wide range of people such as former staff and contractors. IBA has systems and processes in place to ensure that public officials can make public interest disclosures about IBA.

INTERNAL AUDIT

The Audit, Risk and Performance Committee oversaw the 2019–20 Internal Audit Program. The program was conducted by an outsourced provider.

FIGURE 12: ORGANISATIONAL STRUCTURE OF IBA AT 30 JUNE 2020

Diagram showing the organisational structure of IBA.

RELATED PARTY TRANSACTIONS

IBA has a system of delegated powers that enables decisions to be made on a range of transactions at the appropriate organisational level.

The Board governance charter sets out the decision-making processes for managing related party transactions and broader conflicts of interest for IBA directors. The charter restricts an IBA director from entering into prohibited related party transactions.

Prohibited related party transactions include the provision of loans or business support to IBA directors, their spouses and dependent family members as well as entities where IBA directors hold a significant interest.

The Board governance instruction sets out the decision-making processes for key management personnel including the Executive Management Team on management of conflicts of interests and procurements. Board members and the Executive Management Team provide annual declarations of interest.

In 2019–20, there was one transaction in which IBA provided a grant to a company which was a related entity, as defined in the Public Governance, Performance and Accountability Rule 2014. The value of the grant provided was $80,000. That transaction was approved in accordance with IBA’s decision making framework described above.

There were 3 transactions where IBA paid other related entities for goods or services, with a combined value of $233,000. Those transactions were approved in accordance with IBA’s decision making framework above.

Note 12 to the financial statements sets out IBA’s related party disclosures for 2019–20.

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COMPLIANCE

IBA has a control framework to ensure compliance with relevant legislation.

In 2019–20, there were no significant issues reported to the responsible Minister under section 19 of the PGPA Act related to non- compliance by IBA with the Act or its Rules or an Appropriation Act.

COMPLAINTS HANDLING

IBA’s commitment to quality service is outlined in its customer charter which has detailed processes for receiving and handling complaints.

The complaint management process ensures that any concerns customers have in relation to IBA’s services or decisions, or IBA funded service providers, are taken seriously and dealt with promptly. IBA maintains a complaints register which is regularly reviewed by management.

By adhering to these processes, IBA can learn from mistakes and continuously improve its practices, ultimately improving customers’ experiences.

CONSULTANCIES

Consultants are distinguished from other contractors by the work they perform. A consultant is an individual, a partnership or a corporation engaged to provide professional, independent and expert advice or services.

Section 178 of the ATSI Act enables IBA to engage consultants who have suitable qualifications and experience.

IBA follows guidance issued by the Department of Finance when determining whether an arrangement should be classified as a consultancy.