Section 4 - Corporate Governance
Corporate Governance
The Mint’s independent Advisory Board assists in providing strategic advice on good corporate governance practices, advising on corporate strategy and providing guidance to the Mint’s Senior Management Committee.
The Audit Committee is the other independent body that ensures accountability. Amongst dealing with a range of other matters during the year the Committee also reviews or endorses the Mint’s Risk and Fraud Control Plans.
The Mint Senior Management Committee meets regularly to discuss a wide range of policy issues including matters related to corporate governance. The Committee reviews audit, security, procurement, financial and other practices within the Mint to enhance our understanding and compliance with the governance framework.
The Mint continues to monitor the committee structures which it operates within to ensure alignment with corporate objectives including a stronger governance framework. A review was undertaken of the Strategic Plan to ensure that governance objectives were given a high priority. A range of staff and contractor courses have been developed to increase awareness and understanding of these requirements.
Risk Management
The Mint’s Risk Management Framework continues to be used as a guiding principal for staff and Managers in their decision making processes. Risk and assurance policies and procedures identify, plan for and help manage the risks associated with the business of manufacturing circulating and numismatic coin for Australia.
These policies and procedures are consistent with our strategic directions and align with the Mint’s CEIs.
The Mint’s framework for managing risk has four key elements:
- The Fraud Control Plan complies with Australian Government Fraud Control Guidelines
- The CEIs put into effect the Financial Management and Accountability (FMA) Act 1997 requirements which set out responsibilities and procedures and provide an overarching framework for financial management. They also contain topics relating to risk management, accountability and corporate governance practices
- The internal audit plan identifies individual services and functions requiring audit. The plan incorporates issues raised by the ANAO in its review of the Mint’s financial statements and also ANAO reports on cross-agency matters, previous internal audits, evaluations, emerging issues and more strategic risk management issues and
- Risk management and insurable risks are aligned through Comcover and Comcare.
The Mint attends Comcover and other related forums to improve on its knowledge and awareness of risk management strategies and initiatives throughout the Commonwealth.
Internal and External Scrutiny
Audit
The Audit Committee convened four times during 2007–08. Its primary focus included reviewing the Mint’s financial statements and a range of internal and external audit reports.
The Mint’s Audit Committee is independently chaired by Mr Michael Burton, General Manager, Department of Finance and Deregulation. Mr Vipan Mahajan, Assistant Secretary, Department of Employment and Workplace Relations also acts as an independent member. The two remaining Mint member positions are filled by Mr Graham Smith, Deputy CEO and Mr Michael Ellery, Manager, Facilities Management.
The Mint utilised the services of independent internal auditors Ernst & Young and Walter Turnbull to undertake the range of internal activity identified by the Mint in their internal audit plan. A range of specialist advice was also sought during the year on related topics.
The Audit Committee has a continuous improvement approach to audit services and regularly reviews the Mint’s audit program and scrutinises recommendations from completed internal audits, as well as relevant ANAO reviews and best practice guidelines.
The Internal Audit Plan identifies services and functions for auditing. It incorporates issues raised by the ANAO in its audit of the Mint’s financial statements, recent ANAO reports on cross-agency matters, upcoming management issues, policy evaluations, previous internal audits and strategic risk management issues. In addition, a watching brief is maintained throughout the year on emerging or topical issues which may impact on the Mint.
Internal Audits
The Mint completed four audits during the 2007–08 program. Additionally assistance was provided to IT Systems and Fraud on specialist project issues.
The audits completed were:
- Records Management Arrangements – the review focused on the records management policies and procedures adopted within the Mint and conducted analysis and testing to determine if the control environment was appropriate.
- Collection Management – the review determined whether the national coin collection managed by the Mint was operating in an efficient and effective manner.
- Marketing Arrangements – the review determined whether the Mint marketing arrangements were adequately managed and were operating efficiently.
- Asset Management Procedures – the purpose of this review was to test whether asset management policies and procedures sufficiently met the requirements of the Mint.
Significant Developments in External Scrutiny
There were no significant developments in external scrutiny relating to judicial decisions and administrative decisions of administrative tribunals impacting on the Mint.
Similarly, there were no reports by the Auditor-General, a Parliamentary Committee or the Commonwealth Ombudsman significantly or directly impacting on the Mint.
Ethical Standards and Accountability
The Mint’s people values are very much aligned with the Australian Public Service values and are embedded in the Mint Agency Agreement and Performance Development System. These values are also communicated and supported by members of the Mint Senior Management Committee whenever an opportunity arises.
The Mint maintains ethical standards through a range of mechanisms including developing policies such as the Fraud Control Plan, the CEIs, IT acceptable use policies and contractor and consultant guidelines.
The Mint continues to provide mandatory fraud and ethics awareness training courses during the year to all staff and contractors to supplement the existing framework. Additionally, a security education and awareness program continues to be improved on with one of those elements being a focus on ethical behaviours. IT security elements are now also included in the awareness program. Staff induction training has been reviewed with more of a focus on Mint and APS values and ethical standards.
Freedom of Information
Under subsection 8 (1) of the Freedom of Information Act 1982, the Mint must report on its activities. In 2007–08 the Mint did not receive any requests for information under the Freedom of Information Act 1982.
Organisation of the Mint
Details of the Mint’s organisational and management structures are set out in this report. The Mint’s functions and decision making powers exercised in carrying out those functions are described in the Chief Executive’s Review and the Corporate Governance sections of this report.
Arrangements for outside participation
People or organisations outside the Australian Government administration may participate in forming policy or relating to aspects of the Mint’s responsibility. They can do this by writing to Treasury portfolio ministers, the Secretary of the Treasury, or the Chief Executive Officer of the Mint. In addition, the Mint website includes details of how the public can access information held within the Mint.
Categories of documents held by the Mint
The Mint holds a wide range of correspondence, analysis and policy advice by Mint officers, including comments on cabinet submissions and drafts of these and other documents. The Mint stores correspondence to and from Treasury ministers on matters falling within the Mint’s portfolio responsibilities.
The Mint also holds documents relating to its organisation and operations including personnel records, staffing records, financial and expenditure records and internal operations such as office procedures and instructions.
Freedom of information applications and initial contact points
The Mint Executive coordinates requests under the Freedom of Information Act 1982.
Applicants seeking access under the Act to Mint documents should apply in writing to:
The Chief Executive Officer
Royal Australian Mint
Denison Street
DEAKIN ACT 2600
Attention: Freedom of Information Coordinator
Telephone enquiries should be directed to the Chief Executive Officer, telephone (02) 6202 6826, between 9:00am and 5:00pm Monday to Friday (except public or public service holidays).
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