Governance encompasses processes by which organisations are directed, controlled and held to account.
Good governance provides the foundation for high performance, strengthens stakeholder confidence and helps organisations perform efficiently and effectively so that they can respond quickly to changing demands.
The Council of Australian Governments Standing Council on Environment and Water (the Council) sees governance as having:
… a very broad coverage, including how an organisation is managed, its corporate and other structures, its culture, its policies and strategies and the way it deals with its various stakeholders. The concept encompasses the manner in which public sector organisations acquit their responsibilities of stewardship by being open, accountable and prudent in decision-making, in providing policy advice, and in managing and delivering programs.
Australian National Audit Office Public Sector Governance Better Practice Guide ANAO 2003:Vol.6
The Council and its Committees are committed to establishing, maintaining and promoting good governance by adhering to principles of accountability, transparency, integrity, stewardship, leadership and efficiency. They do this by ensuring their activities, and those of the Secretariat to Council, are underpinned by:

Strong leadership, culture and communication;

Clear accountability mechanisms;

Comprehensive risk management, compliance and assurance systems;

Appropriate governance committee structures;

Sound financial management;

Working effectively across organisational boundaries;

Strategic planning, performance monitoring and evaluation; and

Flexible and evolving principles-based systems.
While the Council acknowledges that all jurisdictions have their own governance principles and policies, its employees, contractors and other agents, in accepting employment or other formal association with the
Council, have a responsibility to operate in ways that are consistent with this policy.
Governance structure
The Council’s governance structure is at Attachment A.
Accountabilities
Governance gives practical meaning to public sector accountability obligations. The accountabilities matrix at Attachment B details the accountabilities, delegations and reporting requirements for each component of the governance structure.
The Hon Tony Burke MP
Chair, COAG Standing Council on Environment and Water

Figure 1
COAG Standing Council on Environment and Water Governance Policy
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Body/person Accountabilities (references: NEPC Act)
Council
Council of
Australian
Governments
(COAG)
Standing Council on Environment and Water
(Council)
Accountable to the Australian, New Zealand, State and Territory Governments for initiating, developing and monitoring the implementation of policy reforms of national significance.
Accountable to COAG for achieving COAG’s priority themes by:
 pursuing and monitoring priority issues of national significance which require sustained, collaborative effort in the environment and water focus area

Addressing key areas of shared Commonwealth, state and territory responsibility and/or funding.

It will do this by:

Initiating, developing and monitoring policy reform for consideration by COAG

Overseeing implementation of policy reforms agreed by COAG

Taking joint action to resolve issues arising between governments

Establishing effective operational arrangements to ensure it achieves its priorities and statutory responsibilities

Establishing a Senior Officials Committee and other sub-groups

Consulting with all counterparts when considering new legislation

Ensuring issues relevant to multiple policy areas are considered
Delegation/s Reporting/ frequency
Creation and discontinuation of
Councils to focus on and progress these reforms
Performing collective responsibilities of
Ministers and the
Australian Local
Government
Association (ALGA) as set out in legislation and intergovernmental agreements
Statutory decisionmaking functions under the Trans-
Tasman Mutual
Recognition
Arrangements
Parliaments
As required
COAG Commonwealth-
State Relations Secretariat
(CSRS) - Each meeting
Objectives, outcomes and progress should be communicated publicly in non-bureaucratic language
As set out in Appendix 4,
COAG Council Handbook:
Each meeting: Public record/ communiqué;
Proposed work plan by 31
May - Annually
Progress Report by31 July
- Annually
Review and evaluation -
Every 3 years
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Body/person
Incorporating
National
Environment
Protection Council
(NEPC)
Senior Officials
Committee (SOC)
Incorporating
NEPC
Committee
Audit and
Governance
Committee
Accountabilities (references: NEPC Act)
Accountable to COAG for:

Making National Environment Protection Measures;

Assessing and reporting on the implementation and effectiveness, in participating jurisdictions, of National Environment Protection Measures; and

Overseeing the NEPC Service Corporation and the management of the NEPC
Executive Officer.
Accountable to the Council for:

Supporting Council’s focus on national strategic priorities;

Developing and progressing issues for Council meetings;

Supporting Council’s policy, implementation and governance responsibilities;

Supporting the effective and efficient operations of Council’s administrative arrangements;
 Delegating items of a procedural and technical nature; and
 Supporting the effective and efficient progress of intra-jurisdictional collaborative activities within and outside the remit of COAG.
Accountable to the National Environment Protection Council for fulfilling responsibilities under the National Environment Protection Council Act 1994 (Cth) (NEPC Act) including:
 supporting the Council in implementing the NEPC Act including making National
Environment Protection Measures and reporting on their implementation and effectiveness; and
 overseeing the management of NEPC Service Corporation budget and the performance of the NEPC Executive Officer.
Accountable to Council through the SOC for fulfilling its Terms of Reference including reviewing the integrity and prudence of management control systems. This includes review of policies or practices by ensuring the Secretariat has in place:

Good governance principles;
 Reliable financial and management reporting systems;
 Effective and efficient internal and external audit services;
Delegation/s
Decision-making powers under the
NEPC Act 1994
Powers to be including creating and discontinuing working groups except those to it by Council
Reporting/ frequency delegated by Council
Delegated- powers under the NEPC Act
No executive powers expressly delegated
NEPC Annual Report
Council
Each meeting
Council
Biannually
SOC -After each meeting
Council - Annually
4

Body/person
Thematic
Oversight Groups
(TOGs)
Subordinate
Groups
Accountabilities (references: NEPC Act)

Sound internal control framework;

Identification, management and monitoring of risks; and

Compliance with applicable laws, regulations and government policies.
Accountable to the SOC as defined in agreed Terms of Reference for advising SOC on the delivery of outcomes against COAG’s priorities
Delegation/s
Accountable to the SOC or a TOG as defined in relevant Terms of Reference for specific, usually time limited deliverables.
Reporting/ frequency
No executive powers except those expressly delegated to it by Council or
SOC
No executive powers except those expressly delegated to it by Council or
SOC
SOC
Bi annually
SOC or TOG
Quarterly
Secretariat
NEPC Executive
Officer and NEPC
Service
Corporation
Secretariat staff
Project Managers
Statutory officer appointed by and accountable to Council and agencies such as the
Commonwealth Auditor-General and Ombudsman for the operations of the NEPC Service
Corporation.
All acts and things done in the name of, or on behalf of, the NEPC Service Corporation by or with the authority of the NEPC Executive Officer are taken to have been done by the
Corporation(s40).
Accountable to Council, incorporating NEPC, through the SOC for advising and supporting
Council in performance of its functions and exercise of powers including:
 Logistical and administrative support for Council, SOC, the TOGs and the Audit and Governance Committee; and

Management of NEPC funds including establishing and implementing an internal control framework, monitoring budgets, timeframes and key milestones for all activities.
Accountable to the Executive Officer under the Service Level Agreement with DSEWPaC for assisting with support functions outlined above.
Accountable to the Executive Officer for managing projects under agreed protocols, including advising on the ethical and efficient use of NEPC funds.
Powers under the
NEPC Act (s37)
Conducts the affairs of the NEPC Service
Corporation
Delegated powers under the NEPC Act
1994
As delegated by the
Executive Officer
None
Council through the SOC
In line with agreed reporting framework
NEPC Annual Report
Executive Officer –
Monthly
5

Body/person Accountabilities (references: NEPC Act) Delegation/s
Reporting/ frequency
SOC – bi-annually
TOGs – quarterly
Key third party relationships
DSEWPaC
Accountable to the Executive Officer under a Service Level Agreement (SLA) for:

Provision of staff, specialist advice (including financial management, audit, legal, procurement), access to procurement panels, accommodation, ICT systems; and

Other services specified under the SLA or as agreed from time to time in writing with the Executive Officer or the SOC.
Contractors
Accountable to the Project Manager under the applicable contract in consultation with the Executive Officer for:

Providing specific technical advice based on research, analysis, investigations, design and consultation;

Preparing reports or giving presentations as required;

Supporting working groups;

Taking a risk management approach to their work; and

Complying with all Council policies and regulatory requirements.
N/A
None
Executive Officer
As set out in the SLA
As set out in the applicable contract
6

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