NOPSEMA is strongly committed to an environment of corporate governance involving effective and robust internal controls and a highly ethical culture. It is the responsibility of all NOPSEMA staff to safeguard the organisation’s property against loss through fraud, corruption or negligence and to support fraud and corruption control efforts.
In 2018–19, NOPSEMA maintained a risk management framework that conforms to AS/NZS ISO 31 000:200 Risk management - Principles and guidelines and aligns with the Commonwealth Risk Management Policy. The framework facilitates the management of all reasonably foreseeable organisational risks (so far as reasonably practicable) so that NOPSEMA can continue to carry out its statutory functions and meet the expectations of the responsible Commonwealth minister and stakeholders.
NOPSEMA’s results in the 2019 Comcover risk management benchmarking survey were very positive and NOPSEMA achieved an overall advanced rating on its risk maturity model. The survey aligns with the nine elements of the Commonwealth risk management policy and all general government sector entities take part.
NOPSEMA’s fraud and corruption control plan reflects the organisation’s commitment to promoting ethical and honest behaviour in the workplace. The implementation of the plan seeks to reduce the overall risk of fraud and corruption and support the investigation of all suspected instances of fraud and corruption by NOPSEMA staff.
NOPSEMA’s risk committee has four members including the Risk, Planning and Improvement Manager; Chief Financial Officer (CFO); General Counsel, and the Technical Lead – Systems and Audit. The committee assists NOPSEMA in carrying out its duties and meeting its statutory obligations in relation to risk management and control systems as outlined under the PGPA Act.
NOPSEMA’s audit committee has three members including the Head of Division for Safety and Integrity and two independent committee members from an unrelated chartered accountancy practice and a company secretary. These independent members are appointed to act as Chair and Alternate Chair respectively. Advisers to the committee include NOPSEMA’s internal auditor, PricewaterhouseCoopers, and the external auditor, Ernst and Young (on behalf of the Australian National Audit Office).
NOPSEMA’s General Counsel; CFO and Risk, Planning and Improvement Manager also act as advisers to the committee. The committee provides independent assurance and advice to the NOPSEMA CEO about NOPSEMA’s internal control mechanisms, financial and business risks, and compliance with its statutory obligations under the PGPA Act, and rules and orders of the Minister for Finance. The committee provides an avenue for communication between NOPSEMA management and the organisation’s internal and external auditors.
Internal and external audits of NOPSEMA’s financial controls reported no significant weaknesses. No indemnity was applied during the reporting period.