Annual Report 2019-20: Table of contents | 123 | 4 | 567

Risk and audit at a glance

The department’s Risk and Audit function:

  • provides objective assurance and consulting activities to advance the department’s ability to achieve its strategic objectives
  • assists the Chief Executive and department in the effective discharge of responsibilities relating to risk management, governance and internal control
  • provides support to the Risk and Performance Committee (committee), one of the key governance committees supporting the Chief Executive.

The Risk and Audit function operates independently of the activities that it audits to ensure unbiased judgements which are essential to its proper conduct and impartial advice to management.

Risk and Performance Committee

The committee met on five occasions during 2019-2020.

Membership consists of both internal and external members and is independently chaired.

During 2019-2020 the committee provided independent assurance on the operation and effectiveness of risk management, internal controls and compliance requirements for the department as prescribed under the committee Terms of Reference. Achievements during the year include:

  • appointment of a new independent (external) Chair to the committee
  • appointment of a new internal member to the committee
  • completion of an annual review of organisational strategic risks
  • monitoring delivery of the 2019-2020 annual internal audit plan.

Fraud detected in the agency

Category/nature of fraudNumber of instances
Not applicable 0

NB: Fraud reported includes actual and reasonably suspected incidents of fraud.

Data for previous years is available at: Data.SA fraud detected within the Department of the Premier and Cabinet

Strategies implemented to control and prevent fraud

Policies and procedures The department has adopted and promotes The Code of Ethics for the South Australian Public Sector, which provides guidance to employees on appropriate behaviour.

The processes for preventing, detecting and responding to the risks of fraud are documented in the department’s Corruption and Maladministration Control Policy and Corruption and Maladministration Control Strategy which is consistent with the across government Fraud and Corruption Policy issued by the Commissioner for Public Sector Employment.

The department also supports the maintenance of an effective internal control environment by ensuring compliance with relevant legislation and regulations, namely the Public Finance and Audit Act 1987, Treasurer’s Instructions and Accounting Standards.
Internal processes Processes are in place for identifying, recording, analysing, reporting and escalating fraud and corruption loss events and control failures.

These processes are supported by mechanisms to prevent, detect and respond to the risks of fraud, including:

  • annual internal audit plans
  • monthly executive financial performance reports
  • certification of internal controls under the DPC Financial Management Compliance Program and the end of financial year statements preparation process
  • the maintenance of financial authorisations within the accounts payable and purchase card management systems including the performance of regular user access and transactional reviews.
  • Annual financial report The annual financial report is supported by a system of internal controls that are monitored and assessed during the financial year through the department’s internal assurance processes and other processes undertaken by Shared Services SA as the external service provider.
    Employee induction and online training The induction process ensures that all new employees are made aware of the Code of Ethics for the South Australian Public Sector and the Corruption and Maladministration Control Policy. This policy clearly stipulates a zero tolerance position in respect to fraud and corruption. All staff are also required to complete an online Fraud and Corruption Awareness course within six months of commencement.
    Financial Management Compliance Program Appropriate business practices are reinforced through the department’s Financial Management Compliance Program (FMCP) as mandated by Treasurer’s Instruction 28. The FMCP was undertaken through a control self-assessment comprising a series of questions which assess relevant policies, procedures, systems, internal controls, risk management, and statutory/financial/management reporting that is in operation across all business units within the department.
    An independent risk-based validation of the results is undertaken, and results reported to the relevant business units and the Risk and Performance Committee.
    Risk assessments Business units undertake regular fraud and corruption risk assessments on their operations and are also required to identify, assess and monitor those risks and document mitigating actions in their risk registers which are subject to six-monthly reviews and monitoring throughout the year.

    An annual assurance mapping review complements the risk management assessments by providing additional assurance around the state of governance, risk management and internal controls within DPC.

    An annual review of strategic risks was also undertaken during the year to ensure they continue to reflect the current risk environment. This also included a review of the departmental risk appetite statement to ensure the boundaries for prudent and consistent decision-making are clearly defined in order to effectively deliver our strategy.

    Public interest disclosure

    Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:


    Data for previous years is available at: Data.SA Public Interest Disclosure Act 2018

    Note:  Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.

    Annual Report 2019-20: Table of contents | 123 | 4 | 567