MDBC Strategic Plan 2005–2010, Objective 3, Strategy 3.6: Ensure effective institutional and governance arrangements are in place

Ensuring effective governance

Senior management committees

Executive Committee

The Executive Committee of the Murray–Darling Basin Authority (MDBA) is chaired by the Chief Executive. Its membership is comprised of the executive directors of MDBA’s five divisions: Basin Plan; Natural Resource Management; River Murray; Engagement, Secretariat and Communications; and Corporate Services (also see page xiii).

The Executive Committee is the main forum in which governance requirements are discussed. The committee meets fortnightly and considers the positioning, safeguarding and enabling that is necessary for MDBA to achieve its business outcomes.

During 2008–09, the committee considered the following key issues: strategic and corporate planning and budgets; financial performance; water recovery issues; the risk management framework; provision of delegations under the Water Act 2007 (Cwlth); workforce planning; the employee Enterprise Agreement; the Project Management Framework; and the Certificate of Compliance framework.

Information Management Committee

The Information Management Committee is chaired by the Executive Director Natural Resource Management. Other members are the Executive Director Engagement, Secretariat and Communications; General Manager Assets; and the Chief Information Officer. The committee was established as a subcommittee of the Executive to provide advice and strategic direction in the management of MDBA’s information and communications technology (ICT) needs. It also discusses and endorses all projects with ICT components or impacts.

The committee meets monthly. During the year it considered the following key issues: the Enterprise Information Strategy, ICT security, and standardisation of software and hardware.

Occupational Health and Safety Committee

The Occupational Health and Safety Committee is a subcommittee of the Executive and is chaired by the General Manager Assets. Its membership is comprised of the health and safety representatives for MDBA’s two designated work groups; a representative of the Workplace Consultative Committee; the Director People, Planning and Performance; the Chief Fire Warden; and the Occupational Health and Safety Coordinator.

The committee is established in accordance with the Occupational Health and Safety Act 1991 (Cwlth) and meets quarterly. The committee is an integral part of MDBA’s Health and Safety Management Arrangements. In 2008–09 it considered a range of health and safety issues including the new Health and Safety Management Arrangements; reporting on workplace incidents and injuries; appointment of health and safety representatives; linking with first aid officers, fire wardens and harassment contact officers; and ensuring staff awareness of health and safety issues.

Human Resource Management Committee

The Murray–Darling Basin Commission’s Human Resources Committee was chaired by the General Manager Corporate Services and its membership was comprised of the Director People, Planning and Performance, the Human Resources Coordinator, and two representatives of the Workplace Consultative Committee. During the period before transition, the prime role of the committee was to review a range of revised policies and procedures before submission to the Executive for approval.

During 2009–10 the committee will be restructured as a subcommittee of the Executive to provide strategic advice on human resources management issues covering workforce planning, performance management, learning and development, workplace relations, and recruitment.

Business Managers Committee

The Business Managers Committee is the MDBA governance body responsible for planning and coordinating cross-divisional issues to facilitate the implementation of MDBA’s business. It is comprised of all business managers at Senior Executive Service Band 1 level and Executive Level 2 who report directly to the executive directors, and one executive director (on a six-monthly rotational basis).

The committee is focused on carrying out the business of MDBA, in particular on identifying appropriate management strategies for cross-divisional issues, and ensuring there is adequate communication to ensure an integrated team. The committee also provides support as required to the Executive Committee.

Audit Committee

The Audit Committee reports to the Chief Executive and is chaired by the Executive Director Basin Plan Division. Its membership is comprised of an independent Deputy Chairman (Mr Paul McGrath), the executive directors of the River Murray Division and the Corporate Services Division, and the General Manager River Environmental Management. The committee meets quarterly.

The objective of the committee is to provide independent assurance and assistance to the Chief Executive on the integrity of MDBA’s financial data and processes; its risk, control and compliance framework; and its external accountability responsibilities. In particular the committee ensures that MDBA:

• has a sound internal control framework, including effective identification and management of business risks, with supporting procedures in place
• has an appropriate fraud control plan and supporting procedures
• has reliable financial and management reporting systems
• ensures clearance of financial statements
• ensures compliance with applicable laws, regulations and government policies
• maintains an effective and efficient audit service.

In 2008–09 the committee considered a range of governance issues relating to the transitional arrangements between the former MDBC and MDBA, as well as risk management, fraud risk management, business continuity, the internal audit work plan, the Certificate of Compliance framework and internal audit reports, actions and recommendations.

Workplace Consultative Committee

The Workplace Consultative Committee is the key mechanism for employee consultation and involvement in the review and development of policies and procedures linked to employee conditions and employment. Membership is comprised of six elected employee representatives.

Risk management

The effective management of risk is a key component of MDBA’s planning and review systems. Effective risk management is recognised as fundamental to good corporate governance and sound management practice. The Audit Committee monitors key risks and supervises the development of policies and procedures for risk management.

Under the transitional provisions, the risk management arrangements applying to MDBC were carried over to MDBA until replaced by new arrangements. A detailed organisational risk assessment has been undertaken and a risk management plan prepared. The plan focuses on risks that affect the achievement of key corporate objectives and risks that affect most, if not all, MDBA functions and processes. Each identified risk was assessed by consequence, likelihood and effectiveness of existing control measures. Additional risk mitigation activities were proposed where appropriate, aimed at reducing risks to acceptable levels.

The risk management plan and the implementation of associated treatments are to be considered by the Audit Committee at each of its meetings.

Training in risk management was conducted for staff and managers. Further targeted training and upgrading of induction processes is planned for 2009–10. Training and information in relation to the Australian Public Service Values and Code of Conduct and the Australian Public Service Commission Ethics Advisory Service was also provided.

MDBA’s insurable risks have been identified as part of Comcover’s insurance renewal process and will be reassessed annually. MDBA received a 4.8% discount on its Comcover premium following the completion of Comcover’s annual Risk Management Benchmarking Survey in March 2009. Comcover has assessed MDBA’s overall risk performance to be satisfactory in the implementation of an enterprise-wide risk management framework. MDBA is covered by Comcare for risks associated with injury to employees.

Fraud control

Under the transitional arrangements, the MDBC Fraud Risk Assessment and Fraud Control Plan 2007–09 were carried over to MDBA until new arrangements were developed. MDBA undertook a detailed fraud risk assessment and developed a fraud control plan in 2009. The 2009–11 Fraud Risk Assessment and Fraud Control Plan and associated treatments and actions will be monitored at each of the Audit Committee’s meetings.

A program of fraud awareness training was undertaken by MDBC before transition and continued by MDBA. Further targeted training and upgrading of induction processes is planned for 2009–10.

There were no cases of suspected fraud during 2008–09.

Business continuity and ICT disaster recovery plans

MDBC arrangements in relation to business continuity and disaster recovery were also carried across to MDBA.

Following transition, MDBA undertook a business impact assessment and started developing a Business Continuity Plan, an ICT Disaster Recovery Plan and a Business Continuity Policy.

The Business Continuity Plan will describe the arrangements to ensure the continuity of MDBA’s key services after a significant, unexpected and disruptive incident (such as a fire). It will also describe MDBA’s management structure; staff roles and responsibilities; criteria for activation; procedures to continue core business activities and manage the recovery from emergencies, disasters and other disruptive events; and maintenance procedures. The pandemic section of the plan was approved in May 2009 and was used to guide MDBA’s actions during the swine influenza outbreak.

The ICT Disaster Recovery Plan will provide recovery procedures to address the potential loss of critical ICT resources (e.g. hardware, data and voice network equipment, critical business data and critical business systems).

Both plans are expected to be approved in the first quarter of 2009–10. Once in operation they will be regularly reviewed, monitored by the Audit Committee, and updated as necessary.

Internal audit

Internal audit services during the year were provided by Ernst & Young.

The 2008–09 Internal Audit Plan was developed after consideration of MDBA’s strategic risks and following discussions with senior managers. There was a particular focus during the year on the corporate risks associated with the establishment of a new agency. Internal audits conducted during the year covered:

• financial processes
• Certificate of Compliance processes (relating to compliance with the Australian Government financial management framework)
• compliance with Commonwealth Procurement Guidelines
• compliance with Legal Services Directions
• MDBA’s financial reporting and budget management framework
• employee benefits.

Two audits begun in the former MDBC were completed by MDBA due to ongoing relevance. These involved reviews of procurement and management of statutory taxes.

The audits found a strong and positive attitude to internal control and identified matters that require a continued focus, including training and documentation of procedures in relation to procurement and treatment of goods and services tax and fringe benefits tax, acquittal of credit cards and travel, and development of Certificate of Compliance procedures for the new MDBA.

A number of recommendations were made in relation to the completed audits but no serious control breaches were identified.

The Audit Committee monitors the implementation of report recommendations through regular status reports.

Certificate of Compliance

As part of MDBA’s governance framework, an online Certificate of Compliance system was implemented in 2009. The system underpins the certification that the Chief Executive must provide by 15 October each year to the Minister for Climate Change and Water and the Minister for Finance and Deregulation, of the agency’s compliance with the Australian Government’s financial management framework.

The certificate is completed by all staff who hold financial delegations and all senior executives to ascertain compliance during the financial year with the following:

• Financial Management and Accountability Act 1997
• Financial Management and Accountability Regulations 1997
• Financial Management and Accountability Orders 2005
• Financial Management and Accountability (Finance Minister to Chief Executives) Delegation 2007 (No. 2) as amended from time to time
• Australian Government’s foreign exchange risk management requirements
• legal and financial requirements for the management of special accounts
• the financial management policies of the Commonwealth.

The system also allows for the identification of compliance with internal procedures and policies, and areas for potential streamlining of internal processes.

External scrutiny

Auditor-General reports

The Auditor-General did not table any specific reports that examined program delivery by MDBC or MDBA during the year.

MDBA reviews all cross-agency reports issued by the Auditor-General; where the reports are assessed as relevant to MDBA operations, practices and procedures are reviewed in line with the recommendations contained in the reports. A key responsibility of the Audit Committee is to oversee the implementation of the recommendations contained in these reports.

Commonwealth Ombudsman

There were no formal reports from the Commonwealth Ombudsman in relation to MDBA during the year.

Parliamentary committees

During 2008–09, MDBA gave evidence at three inquiries conducted by parliamentary committees — all by the Senate Standing Committee on Rural and Regional Affairs and Transport.

This committee conducted a hearing into the long-term sustainable management of the Murray–Darling Basin, and released the report resulting from this inquiry on 25 June 2009. It recommended that the Commonwealth work towards a full and unconditional referral of powers relevant to the management of the Murray–Darling Basin and, in the absence of such full referral, consider other options to provide for complete federal management. It also recommended that the Basin Plan be implemented in accordance with the current arrangements in the Water Act 2007 (Cwlth), although efforts should be made to expedite the end of transitional arrangements to achieve the full implementation of the Basin Plan as soon as possible.

On 21 November 2008, the committee released a report on the Water Amendment Bill 2008. The committee concluded that the Bill would enable water resources in the Murray–Darling Basin to be managed in the national interest, optimising environmental, economic and social outcomes. Further, the committee found that the Bill represents the basis for the long-term reform of water management in the Murray–Darling Basin.

The committee also conducted a hearing into water management in the Coorong and Lower Lakes (including consideration of the Emergency Water (Murray–Darling Basin Rescue) Bill 2008). It released its report on 10 October 2008. With respect to the management of the Coorong and the Lower Lakes, the committee concluded that, while not ideal, the effects of introducing sea water would be ‘less dramatic’ than the problems posed by acidification.

Judicial decisions and decisions of administrative tribunals

There were no judicial decisions or decisions of administrative tribunals relating to MDBC or MDBA during the year.

Freedom of information

Two freedom of information (FOI) requests were received during 2008–09. One request sought information not held by MDBA and the second sought publicly available information.

The Freedom of Information Act 1982 (Cwlth) gives individuals the right to view documents held by Australian Government ministers and agencies, with some exceptions. Under section 8 of the Act, MDBA is required to report on:

• our organisation and functions (for more information see pages xi–xvii and 110–115)
• arrangements for outside participation (see below)
• the types of documents we hold (see below)
• our FOI procedures, facilities and contact details (see below).

Documents we hold

The types of documents we hold include:

• representations to the Minister for Climate Change and Water on various aspects of government activity
• working files, including correspondence, analysis and advice
• internal administrative records, such as personnel files, staffing and financial records and office procedures
• papers relating to new and amending legislation, drafting instructions and draft legislation
• briefing papers and submissions prepared for the Minister for Climate Change and Water
• documents relating to meetings and committees (such as agendas, minutes and reports)
• copies of questions asked in Parliament, together with related replies
• tender documents
• government (including agency) policy statements, communiqués, guidelines, and media releases
• contracts
• educational materials
• reports on research, water audits and MDBA activities
• spatial data and water modelling information.

Arrangements for outside participation

MDBA consults members of the public and bodies outside the Australian Government’s administration when developing policy and programs, and administering legislation. In addition to general public consultation, MDBA receives advice from various committees and other bodies.

Generally, people can participate by making oral or written representations to MDBA. Several formal arrangements under the Water Act 2007 (Cwlth) exist to facilitate input from Basin states, members of the public and other bodies.

How to lodge a freedom of information request

If you want to view one or more documents, you must send us a request in writing — by mail, fax or email. You need to provide an address in Australia where we can send notices under the Freedom of Information Act, and you also need to include:

• the $30 application fee (a cheque or money order made out to the Murray–Darling Basin Authority)
• as much detail as possible about the document(s) you want to access
• a phone number in case we need to clarify your request.

If your request is approved, you will be provided with either a copy of the document(s) or the opportunity to inspect them at our Canberra office. Copying charges may apply.

More information

For more information, contact our Freedom of Information Coordinator in one of the following ways:

Mail:
FOI Coordinator
Murray–Darling Basin Authority
GPO Box 1801
Canberra ACT 2601

Email: foi@mdba.gov.au

Phone: 02 6279 0452

Fax: 02 6248 8053

Directions under section 175 of the Water Act

There have been no directions given by the Minister for Climate Change and Water under section 175 of the Water Act 2007 (Cwlth).