Annual Report 2020-21: Table of contents | 1 | 2 | 3 | 4 | 5 | 6 | 7
Risk and audit at a glance
The Risk and Performance Committee (RPC) provides advice to the Chief Executive and Executive Leadership Team on the department’s risk governance, control and compliance framework, and its external accountability responsibilities.
Membership consists of both internal and external members and is independently chaired.
The committee met on five occasions during 2020–21.
During the year, the RPC has focused on the following matters:
- reviewed the department’s strategic and operational risk registers, exposures and control issues
- monitored the delivery of the 2020–2021 annual internal audit plan
- reviewed the quality of the annual financial statements including variance analyses and other explanatory commentary prior to signing by the Chief Executive and lodgement with the Auditor-General
- appointment of a new independent (external) member to the committee.
The committee is supported by the department’s Risk and Audit function, which operates independently of the activities it audits and provides objective assurance and consulting activities to advance the department’s ability to achieve its strategic objectives.
Fraud detected in the agency
| Category/nature of fraud | Number 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 Control Policy issued by the Commissioner for Public Sector Employment.
DPC Finance 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, applicable Treasurer’s Instructions and Australian 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
- management certification of internal controls as part of the department’s Financial Management Compliance Program and the end of financial year statements preparation process, which includes the completion of fraud declarations by key management personnel
- the maintenance of financial authorisations within the e-Procurement and EMS 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 department’s induction process ensures 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. Information is provided to all employees relating to the Code of Ethics on the department’s intranet.
New employees and those returning from a period of extended leave must undergo a mandatory induction process upon their commencement of employment in the form of a DPC Online Induction and an online Code of Ethics Awareness training course.
A Fraud and Corruption Awareness online course is also made available and mandated for all employees to complete, with any new starters required to complete the course within 6 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 6-monthly reviews and monitoring throughout the year.
An annual assurance mapping review compliments 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.
Once every 3 years the department is required to conduct a comprehensive assessment of the risk of fraud and corruption within the department’s business operations in accordance with the Corruption and Maladministration Control Policy. Specialist resources were recruited, and a review had commenced during the year. A risk culture survey was also undertaken during the year. The survey acted to protect against the threat of fraud by increasing fraud risk awareness and fostering a strong risk culture, which can help stop fraudulent behaviour before it happens.
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:
NIL
Data for previous years is available at: Data.SA Public Interest Disclosure Act 2018.
Annual Report 2020–21: Table of contents | 1 | 2 | 3 | 4 | 5 | 6 | 7