2010-2011
Certificate of Compliance
Report to the Parliament
DEPARTMENT OF FINANCE AND DEREGULATION
ISSN: 1838-6865 (Print)
ISSN: 1838-6873 (Online)
Finance Job Number: FIN_2010_0013
Creative Commons Licence
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under a Creative Commons BY licence. The terms of the BY licence can be found here: http://creativecommons.org/licenses/by/3.0/au/.
The document must be attributed: “Commonwealth of Australia, Certificate of Compliance Report to the Parliament 2010-2011”.
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Acknowledgements
Photographs taken by Steve Keough, Steve Keough Photography
Other photographs from the Department of Finance and Deregulation collections.
ii
Foreword
Foreword by the Minister
This is the third public report on the annual Certificate of
Compliance (Certificate) process for agencies under the
Financial Management and Accountability Act 1997 (FMA Act).
It aggregates individual agency results for the 2010-11 financial
year.
The purpose of the Certificate is to improve compliance with the
Australian Government’s financial management framework and
to ensure that Ministers, and the Presiding Officers in the case
of the Parliamentary Departments, are kept informed of
compliance issues.
The Chief Executives of all agencies under the FMA Act are
required to provide a completed Certificate to their portfolio
Minister each year. The Certificate process is an important
means of identifying and disclosing instances of
non-compliance with the financial management framework, as
a basis for continuous improvement within agencies and more
broadly.
For the 2010-11 reporting period, agencies reported an overall decrease in non-compliance compared to last
year. Overall, non-compliance has decreased by about 10 percent. There was a reduction in reported
non-compliance, against all of the six categories used in this report. This reflects agencies’ activities to
improve processes and address compliance issues, and enhancements to the financial management
framework itself.
Overall, agencies have again reported relatively low levels of non-compliance when compared to the many
millions of financial transactions they undertake each year on behalf of Government. It is important to assess
the results in that context.
During 2010-11, the Australian National Audit Office conducted a performance audit of the Certificate
processes entitled Management of the Certificate of Compliance Process for FMA Act Agencies. The audit
report was tabled on 20 April 2011. Overall, the audit report is positive about the Certificate process and
Finance’s administration of the Certificate. The audit report states “...overall the Certificate process has been
effective notwithstanding the inherent limitations of the self assessment process employed...” and that
“the Certificate process has helped improve compliance with the financial management framework”.
Penny Wong
Minister for Finance and Deregulation
December 2011
iii
iv
Contents
Foreword
Introduction
Part 1: 2010-11 results by category
Part 2: 2010-11 results by portfolio group
Appendix: List of portfolio groups for Certificate purposes
iii
1
19
32
46
iv
Introduction
1. Introduction
This is the third annual Report to the Parliament on the Certificate of Compliance (Certificate) process. The
Report provides an aggregate analysis of agency results for the 2010-11 financial year. Two public reports on
the Certificate results have been tabled in Parliament to date, covering the 2008-09 and 2009-10 financial
years.
2. The Certificate
The Certificate process aims to improve officials’ understanding of the financial management framework, and
strengthen agency processes, through the identification of non-compliance issues and by undertaking action
to improve processes and compliance. The Certificate promotes continuous improvement within agencies.
Analysis of Certificate results also provides an opportunity for the Department of Finance and Deregulation
(Finance) to identify issues that are common across agencies, thereby highlighting elements of the framework
that may require improvement.
The Chief Executives of all agencies under the Financial Management and Accountability Act 1997 (FMA Act)
are required to provide a completed Certificate to their portfolio Minister by 15 October each year. The
Certificate is also copied to the Minister for Finance and Deregulation (Finance Minister).1
The Certificate covers the financial year, 1 July to 30 June. Five rounds of reporting have been completed to
date, from the 2006-07 to the 2010-11 financial years. This year, 105 FMA Act agencies were required to
prepare Certificates.
The Certificate process is based on a self-assessment by agency Chief Executives. It provides a
comprehensive overview of each agency’s compliance with the financial management framework. Chief
Executives are required to certify their agency’s compliance during the previous financial year with:

the FMA Act;

the Financial Management and Accountability Regulations 1997 (FMA Regulations);

the Financial Management and Accountability (Finance Minister to Chief Executives) Delegation 2010,
as amended from time-to-time;

the Australian Government’s foreign exchange risk management requirements;

the legal and financial requirements for the management of Special Accounts; and

selected financial management policies of the Commonwealth.2
All instances of non-compliance must be reported in the Certificate, focusing on action taken by agencies to
improve their processes, thereby increasing understanding of and compliance with the financial management
framework. The requirements of the FMA Act and FMA Regulations mean that compliance is not assessed
based on materiality. That is, where instances of non-compliance are identified with no or immaterial financial
consequences, they must still be reported in the Certificate.
1
A separate process applies to entities under the Commonwealth Authorities and Companies Act 1997. For further information, see Finance
Circular 2008/05: Compliance Reporting – CAC Act Bodies and Finance Circular 2011/06: CAC Act compliance: Departmental responsibilities.
2
For the 2010-11 year, Chief Executives were required to certify compliance with: the competitive neutrality policy, as outlined in the Australian
Government Competitive Neutrality Guidelines for Managers; the cost recovery policy, as outlined in the Australian Government Cost Recovery
Guidelines; the policy on contingent liabilities, as articulated in the Guidelines for Issuing and Managing Indemnities, Guarantees, Warranties
and Letters of Comfort; and the policy on the ownership of property, as outlined in The Australian Government Property Ownership Framework.
1
However, it is not intended that all actions and transactions of an agency be checked. It is expected that
Chief Executives will ensure that their agency has sufficient processes and controls in place to provide
reasonable confidence that staff members are complying with the financial management framework.
The processes, systems and controls Chief Executives put in place to promote compliance with the financial
management framework may vary between agencies, depending on their size, operations, structure and
activities. In most cases, these processes and controls are an extension of those processes that give
confidence to the Chief Executive on matters such as the use of delegations and budgetary management.
Chief Executives therefore complete the Certificate based on their agency’s internal control mechanisms,
management, and audit committee advice.
In 2010-11, 105 FMA Act agencies reported a combined total of 15,262 instances of non-compliance.
This outcome represents a slight decrease on the results reported by agencies in 2009-10. These results are
discussed further under “Overall Trends”.
The instances of non-compliance reported in agency Certificates generally arise from one or more of the
following:

inaction by individuals, such as not seeking the necessary approvals for particular expenditure;

lack of timely action by individuals, such as not banking public money within the required timeframe or
not meeting the timeframe to report publicly on new grants;

particular actions taken by individuals, such as relying on an outdated delegation or drawing right;

lack of awareness of key requirements, due to changes in staffing, structures or activities; and

system or process issues, either at the agency or sub-agency level.
The Certificate also requires Chief Executives to certify that the agency has adopted appropriate management
strategies for risks that may affect its financial sustainability and state whether the agency is operating within
the agreed resources for the current financial year.
3. ANAO Audit of the Certificate Process
The ANAO undertook a cross-agency performance audit, commencing in January 2010, that aimed to
assess the effectiveness of the annual Certificate process for FMA Act agencies. The ANAO released the
performance audit titled Management of the Certificate of Compliance Process in FMA Act Agencies in
April 2011. The audit concluded that overall, the Certificate process for FMA Act agencies has been
effective, notwithstanding the inherent limitations of the self-assessment process employed.
The audit considered Finance’s administration of the Certificate process at a whole-of-government level,
selected agencies’ annual Certificate processes, and the design and impact of the Certificate. The audit
included a review of the support provided by Finance to agencies in relation to the Certificate and the
financial management framework more broadly.
In general, the audit identified that the audited agencies’ Certificate processes were appropriate, in light of
each agency’s size, financial activities and financial management arrangements. Key aspects of these
agencies’ Certificate processes involved self‐assessments of compliance by responsible officials and/or
business areas; internal audit activity covering compliance with the financial management framework; audit
committee involvement; and targeted remediation activities to address identified non‐compliance.
The audit found that “Finance has provided appropriate high-level guidance for FMA Act agencies on the
Certificate process.”3 Further, feedback from a survey conducted by the ANAO indicates that the majority of
agency Chief Financial Officers agree or strongly agree that Finance provided adequate guidance on the
3
ANAO Audit Report No.38 2010-11, Management of the Certificate of Compliance Process in FMA Act Agencies, p. 45.
2
Certificate process and the financial management framework.4
The audit report also provides better practice guidance for agencies to apply in their Certificate processes
based on audit findings and feedback provided by external members of audit committees. The suggestions
cover:

understanding the requirements of the financial management framework, how they are
implemented by the agency, and the associated compliance risks;

using a risk-based approach to collecting the compliance information which will form the basis of
Certificate results;

quality assuring compliance information;

integrating internal audit work and the Certificate process;

supporting audit committee oversight;

effective remediation and education practices; and

periodically reviewing the effectiveness and efficiencies of the approach employed to avoid
excessive resources being devoted to the assurance provided by the process.
Finance has incorporated the key concepts of the ANAO audit report into Finance Circular 2011/07:
Certificate of Compliance – FMA Act Agencies, which provides additional guidance to agencies on the
Certificate process, including a table containing all the relevant compliance elements of the FMA Act and
Regulations, and a section containing frequently asked questions.
4. Structure of the Report
The Report records the outcomes of the 2010-11 Certificate process at a “portfolio group” level, drawing on
data contained in the individual Certificates prepared by FMA Act agencies. For the purposes of this report, a
portfolio group comprises all the FMA Act agencies within the relevant portfolio as at 30 June each year. In
2010-11 there were 21 portfolio groups comprised of 105 agencies.5 The agencies comprising each portfolio
group for the 2010-11 financial year are listed in the Appendix.6
In their individual Certificates, agencies report instances of non-compliance against specific sections and
subsections of the FMA Act, FMA Regulations, the Finance Minister’s delegations to agency Chief
Executives,7 and specified policies of the Commonwealth. Since 2008-09, six categories have been adopted
to report on these results in a meaningful way. The categories represent the key elements of the financial
management framework that apply to agencies under the FMA Act:
i.
the commitment of public money by agencies;
ii.
the use of drawing rights by agencies;
iii.
the proper use of financial resources;
iv.
banking and investment by agencies;
4
See ANAO Audit Report No.38 2010-11, Management of the Certificate of Compliance Process in FMA Act Agencies, p. 47.
5
For the purposes of this report, the three Departments of the Parliament – the Department of the Senate, the Department of the House of
Representatives and the Department of Parliamentary Services – are treated as a single portfolio group. The Department of Regional Australia,
Regional Development and Local Government and the National Capital Authority are also treated as a separate portfolio group, as is the
Department of Veterans’ Affairs. This represents the current functional structure of the Government’s Administrative Arrangements.
6
Changes to the Administrative Arrangements Order (AAO) and the establishment or merger of agencies will affect the composition of portfolio
groups over time.
7
See the Financial Management and Accountability (Finance Minister to Chief Executives) Delegation 2010 and Financial Management and
Accountability (Finance Minister to Finance Secretary) Delegation 2010.
3
v.
the maintenance of agency accounts and records; and
vi.
miscellaneous requirements.
Part 1 reports on instances of non-compliance primarily by type. The combined total of 15,262 reported
instances of non-compliance is presented against the six key categories.
Part 2 reports on instances of non-compliance primarily by portfolio grouping. The data is presented as a
percentage of each portfolio group’s share of the combined total of 15,262 reported instances of
non-compliance.
5. Overall Trends
Five rounds of reporting have been completed to date, covering the 2006-07 to 2010-11 financial years.
As noted in last year’s report, considerable work has been undertaken by agencies to strengthen internal
compliance and reporting processes since the introduction of the Certificate in 2006-07. The maturing of
agencies’ internal control mechanisms, and the more systematic identification and remediation of instances of
non-compliance is reflected in the number of instances of non-compliance reported by agencies over the five
rounds of reporting. The 2010-11 results continue to reflect a levelling out of reported instances of
non-compliance, as agency processes have improved.
At an aggregate level, agencies reported a relatively low number of instances of non-compliance in the first
round of reporting (2006-07), followed by an increase in reported instances of non-compliance in round two
(2007-08) as internal systems bedded down and matured. Instances of non-compliance halved in 2008-09, to
a level somewhat above the total reported in 2006-07, as agencies sought to address the issues identified in
the first two rounds of reporting. In 2009-10, there was a relatively small increase in reported instances
compared to 2008-09, as agencies worked to implement new public reporting requirements as a result of the
introduction of the Commonwealth Grant Guidelines (CGGs).
The results for 2010-11 show a slight decrease in reported non-compliance compared to 2009-10. This
reflects continuous improvement, both in agency processes and the framework more broadly. The 2010-11
results demonstrate agencies’ commitment to improve processes and staff member understanding, in order to
address non-compliance. For example, some agencies have significantly reduced non-compliance with the
reporting requirements of the CGGs.
Decreases due to continual improvement can be balanced against short-term increases in reported
non-compliance as some agencies undertake reviews of specific areas to check compliance. This reinforces
the positive impact of the Certificate in encouraging agencies to improve their systems and processes.
Enhancements to the financial management framework by Finance support these improvement activities of
agencies. The simplification of the FMA Regulations, introduced from 1 July 2010, to streamline requirements
for agencies have also contributed to the 2010-11 results. Compliance with the CGGs will continue to
improve, as the Government has agreed to extend the reporting timeframe for grants from seven to
14 working days.
Overall, there was a decrease in reported non-compliance against all six categories. This is discussed further
under “Results against the Six Categories.”
4
Chart A: Instances of non-compliance: trends over five years
Chart A records the total of all instances of non-compliance reported by agencies over the five financial
years.

In 2006-07, a total of 11,852 instances of non-compliance were reported by 92 agencies, with
76 agencies reporting instances of non-compliance, and 16 agencies reporting no instances of
non-compliance.

In 2007-08, a total of 32,648 instances of non-compliance were reported by 104 agencies, with
83 agencies reporting instances of non-compliance, and 21 agencies reporting no instances of
non-compliance.

In 2008-09, a total of 14,961 instances of non-compliance were reported by 104 agencies, with
85 agencies reporting instances of non-compliance, and 19 agencies reporting no instances of
non-compliance.

In 2009-10, a total of 17,017 instances of non-compliance were reported by 103 agencies, with
86 agencies reporting instances of non-compliance, and 17 agencies reporting no instances of
non-compliance.

In 2010-11 a total of 15,262 instances of non-compliance were reported by 105 agencies, with
88 agencies reporting instances of non-compliance, and 17 agencies reporting no instances of
non-compliance.
The Certificate also requires Chief Executives to report on the financial sustainability of the agency.
In 2010-11, 11 agencies reported risks to the financial sustainability of the agency. This has decreased from
20 agencies that reported risks in 2009-10.
5
6. Context
The total number of instances of non-compliance reported by agencies can be contrasted with the substantial
number and scope of financial activities undertaken by agencies. While no accurate estimate is available,
agencies as a whole undertake many millions of financial activities valued at several billion dollars each
financial year.
By way of example:

the Australian Taxation Office, which employed over 21,700 staff at 30 June 2011, has advised that in
the 2010-11 financial year, it processed over 14 million disbursements valued in excess of $88 billion;

the Defence portfolio group has advised that in the 2010-11 financial year it undertook approximately
2,381,000 financial transactions;

the Department of Immigration and Citizenship, which employed over 7,800 staff located in every
Australian state and territory and 68 overseas posts, has advised that in 2010-11, it processed over
213,000 disbursements valued at approximately $900 million and around two million receipt
transactions, valued at over $1 billion;

the Department of Families, Housing, Community Services and Indigenous Affairs has advised that
during 2010-11, it processed 107,280 payments;

the Health and Ageing portfolio group has advised that in 2010-11, it processed over 128,230 invoice
transactions and over 22,344 receipt transactions; and

small agencies are also required to manage large volumes of transactions relative to their size and
often in complex circumstances, such as the Administrative Appeals Tribunal which processed 12,731
financial transactions during the 2010-11 year.
While the number of reported instances of non-compliance is significant, the level of reported non-compliance
is low when compared to the substantial number of government financial activities which occur each year.
7. Results against the Six Categories
Chart B records the total of all instances of non-compliance reported by agencies for the six categories over
the five financial years.
In 2010-11, there was a decrease in reported non-compliance against all six categories.
Since the introduction of the Certificate, reported non-compliance has been concentrated in three key areas of
the FMA Act and Regulations:

the commitment of public money;

the use of drawing rights; and

banking and investment by agencies.
6
7
i. The commitment of public money by agencies
Chart C: Instances of non-compliance: Category 1 - the commitment of public money by
agencies from 2006-07 to 2010-11
This category combines all reported instances of non-compliance with section 44 of the FMA Act and
FMA Regulations 7, 7A, 8, 9, 10, 10A, 11 and 12.8

Section 44 of the FMA Act requires an agency Chief Executive to manage the affairs of the agency in a
way that promotes proper use of the Commonwealth resources for which the Chief Executive is
responsible. Proper use means efficient, effective, economical and ethical use that is not inconsistent
with the policies of the Commonwealth. This section is also the source of authority for a Chief Executive
(and delegates) to enter into contracts on behalf of the Commonwealth, in relation to the affairs of the
agency. The majority of instances of non-compliance reported against this section relate to agency staff
not having the power to enter into contracts.

FMA Regulations 7-12 regulate agency commitments to spend public money. Regulations 7 and 7A
require officials performing duties in relation to procurement or grants administration to act in
accordance with the Commonwealth Procurement Guidelines and CGGs respectively. Regulations 8, 9,
10, and 10A set out approval requirements and processes for entering into spending proposals, while
Regulation 12 sets out the recording requirements for decisions relating to the approval of spending
proposals.
Category one accounted for 75.9 percent of all non-compliance reported in 2010-11 (73.2 percent in 2009-10).
This represented a total of 11,585 instances of non-compliance compared to 12,454 in 2009-10. The vast
number of transactions involving the expenditure of public money by agencies each year means that the
majority of instances of non-compliance will continue to be reported under this category.
It is also important to note that the introduction, from time-to-time, of revised financial management framework
requirements may give rise to additional instances of non-compliance, as agencies work to implement the
changed requirements. The increase of reported instances of non-compliance in 2009-10 was due to the
introduction of the CGGs from 1 July 2009, as many agencies had difficulty meeting the mandatory reporting
8
Changes were made to the Regulations in 2010 to improve their administrative efficiency. The changes reordered and removed some of the
Regulations, such as Regulation 13. The amendments came into effect on 1 July 2010 and are reflected in the 2010-11 reporting period.
8
timeframe for grants. While compliance with this requirement has improved in 2010-11, it still represents a
significant proportion of total non-compliance for this category (approximately 17 percent). The Government
has recently agreed to extend this reporting timeframe from seven to 14 working days which will assist
agencies to meet these reporting requirements in the CGGs in the future.
ii. The use of drawing rights by agencies
Chart D: Instances of non-compliance: Category 2 - the use of drawing rights by agencies from
2006-07 to 2010-11
This category combines all reported instances of non-compliance with sections 26 and 27 of the FMA Act.

Drawing rights provide controls around the expenditure of public money and the use of appropriations.
Drawing rights are a statutory control over who may draw upon appropriations and make payments.
They also allow for conditions and limits to be set by the Finance Minister (or the Finance Minister’s
delegates) in relation to payments. Sections 26 and 27 of the FMA Act govern the issuance of drawing
rights and limit certain activities to those officials or Ministers who have been issued with drawing rights.
Category two accounted for 5.0 percent of all non-compliance reported in 2010-11. This represented a total of
761 instances of non-compliance. This is a decrease from the 1,311 instances (7.7 percent) reported in
2009-10.
9
iii. The proper use of financial resources
Chart E: Instances of non-compliance: Category 3 - the proper use of financial resources from
2006-07 to 2010-11
This category combines all reported instances of non-compliance with sections 14, 15 and 60 of the FMA Act
and FMA Regulation 21.

Section 14 of the FMA Act provides that an official or Minister must not misapply public money or
improperly dispose of, or improperly use, public money. Section 15 establishes liability for the loss of
public money in an official’s or Minister’s nominal custody at the time of the loss, and the circumstances
in which the Commonwealth may recover such a loss (i.e. where an official or Minister caused or
contributed to the loss by misconduct, or by a deliberate or serious disregard of reasonable standards
of care).

Section 60 of the FMA Act provides that an official or Minister must not use a Commonwealth credit
card, or credit card number, to obtain cash, goods or services otherwise than for the Commonwealth.
Section 60 also makes provision for the FMA Regulations (i.e. Regulation 21, see below) to authorise
other uses, provided that the Commonwealth is reimbursed in accordance with the Regulations.

FMA Regulation 21 gives an agency Chief Executive power to authorise the holder of a Commonwealth
credit card to use the card to pay a claim that includes both official and coincidental private expenditure,
and to specify arrangements for the cardholder to repay the Commonwealth for any coincidental private
expenditure. Regulation 21 also requires the repayment of any coincidental private expenditure.
Category three accounted for 4.0 percent of all non-compliance reported in 2010-11. This represented a total
of 608 instances of non-compliance. This is a slight decrease from the 687 instances (4.0 percent) reported in
2009-10.
10
iv. Banking and investment by agencies
Chart F: Instances of non-compliance: Category 4 - banking and investment by agencies from
2006-07 to 2010-11
This category combines all reported instances of non-compliance with sections 8, 9, 10, 11, 13, 34, 38, 39, 40
and 47 of the FMA Act, and FMA Regulations 17, 18, 19 and 20.

Section 8 of the FMA Act permits the Finance Minister to enter into agreements with banks for the
conduct of the Commonwealth’s banking, while section 9 allows the Finance Minister to open and
maintain official bank accounts. These powers have been delegated by the Finance Minister to agency
Chief Executives.

Section 10 of the FMA Act requires public money to be promptly banked (Regulation 17 defines this as
the next banking day unless otherwise approved by a Chief Executive), while section 11 prohibits the
deposit of public money in any account other than an official account. Regulation 18 requires an official
who receives public money in a non-bankable currency to safeguard the money.

Section 13 of the FMA Act prohibits the withdrawal of money from an official account without proper
authority. Regulation 19 sets out requirements for making cash advances and for other withdrawals
from official accounts and internal transfers between accounts.

Section 34 of the FMA Act permits the Finance Minister to waive, postpone or defer debts owed to the
Commonwealth, and to allow the payment of debts owed to the Commonwealth by instalments.
Section 47 requires an agency Chief Executive to pursue recovery of each debt for which the Chief
Executive is responsible, unless the debt has been written off as authorised by an Act, or the Chief
Executive is satisfied that the debt is not legally recoverable or considers that it is not economical to
pursue recovery.

Section 38 of the FMA Act facilitates credit card arrangements by permitting the Finance Minister to
enter into arrangements with banks for the short-term borrowing of money by way of advances. This
power is delegated to agency Chief Executives.

Section 39 of the FMA Act permits the Finance Minister and Treasurer, or their delegates, to invest
public money in authorised investments, and defines such investments. The effect of this section is that
agency Chief Executives may only invest public money if delegated by the Finance Minister or
Treasurer, and may only invest in a conservative class of investments, such as bank deposits and
Commonwealth and State securities, unless otherwise authorised by the FMA Regulations or an Act.
Section 40 requires officials who receive securities in the course of their duties to deal with them in
11
accordance with Regulation 20 (i.e. issue a receipt, maintain a register and take reasonable steps to
safeguard the securities).
Category four accounted for 9.4 percent of all non-compliance reported in 2010-11. This represented a total of
1,429 instances of non-compliance. This is a slight decrease in instances from the 1,479 (8.7 percent)
reported in 2009-10, but represents a slightly larger proportion of total reported instances of non-compliance
compared to last year.
v. The maintenance of agency accounts and records
Chart G: Instances of non-compliance: Category 5 - the maintenance of agency accounts and
records from 2006-07 to 2010-11
This category combines all reported instances of non-compliance with sections 44A, 48, 49, 50 and 51 of the
FMA Act.

Section 44A requires an agency Chief Executive to give the responsible Minister such reports,
documents and information on agency operations as the Minister requires. It also requires a Chief
Executive to provide the Finance Minister with information on the financial affairs of the agency. Under
section 50, the Finance Minister may also request financial statements covering a period of less than a
financial year.

Section 48 of the FMA Act requires a Chief Executive to ensure that accounts and records of the
agency are kept as required by the Finance Minister’s Orders. Section 49 requires the preparation of
annual financial statements for scrutiny by the Auditor-General.

Section 51 clarifies the responsibilities of affected Chief Executives for the preparation of financial
statements where an agency ceases to exist or following a transfer of agency functions.
Category five accounted for less than 0.1 percent of all non-compliance reported in 2010-11. This represented
a total of 9 instances of non-compliance. This is a decrease from the 0.4 percent (66 instances) reported in
2009-10.
12
vi. Miscellaneous requirements
Chart H: Instances of non-compliance: Category 6 - miscellaneous requirements from 2006-07 to
2010-11
This category combines the remaining instances of non-compliance, relating to government policy,9 the
Finance Minister’s delegations to Chief Executives and those sections of the FMA Act and Regulations listed
below:
9

section 12 – receipt and spending of public money by persons outside the Commonwealth
(52 instances of non-compliance);

section 33 – the making of act of grace payments by the Finance Minister (0 instances of
non-compliance);

section 41 – the proper use of public property (213 instances of non-compliance);

section 42 – liability for loss etc. of public property (6 instances of non-compliance);

section 43 – making gifts of public property (1 instance of non-compliance);

section 45 – implementing an agency fraud control plan (1 instance of non-compliance);

section 46 – establishing and maintaining an audit committee for the agency (0 instances of
non-compliance);

Regulation 16A – the requirement on agency officials to act in accordance with Fraud Control
Guidelines issued by the Minister for Home Affairs (0 instances of non-compliance);

Regulation 22D – the preparation of budget estimates in the form specified by the Finance Chief
Executive (0 instances of non-compliance);

Regulation 23 – the disposal of property found on Commonwealth premises (21 instances of
non-compliance);

Regulations 33 and 34 – the transfer of employee entitlements between agencies (14 instances of
non-compliance);
Footnote 2 lists the policies to be reported in the Certificate.
13


government policies (45 instances of non-compliance):10
-
cost recovery (1 instance of non-compliance);
-
indemnities (22 instances of non-compliance);
-
management of Special Accounts (22 instances of non-compliance); and
Finance Minister's delegation to Chief Executives (517 instances of non-compliance).
Category six accounted for 5.7 percent of all non-compliance reported in 2010-11. This represented a total of
870 instances of non-compliance. This is a decrease from the 1,020 instances (6.0 percent) reported in
2009-10.
8. Continuous Improvement by Chief Executives
A key feature of the financial management framework, which is comprised of the FMA Act and Regulations,
delegations and financial management policies,11 is that agency Chief Executives are directly responsible
for the financial management of their agencies. Part 7 of the FMA Act sets out the specific responsibilities
of Chief Executives. Section 44 places a special responsibility on Chief Executives to manage the affairs of
their agency in a way that promotes the “proper use”12 of the Commonwealth resources for which they are
responsible.
This broad responsibility to manage the affairs of an agency in a way that promotes proper use of
Commonwealth resources, is complemented by other requirements in Part 7 of the FMA Act, such as the
requirements relating to audit committees, financial reporting and fraud control plans.
Agency Chief Executives complete the Certificate based on the agency’s internal control mechanisms,
management, and audit committee advice. It is not intended that all actions and transactions of the agency
must be checked. It is, however, expected that Chief Executives will ensure that the agency has sufficient
processes and controls in place to provide reasonable confidence that staff members are complying with the
financial management framework.
The Certificate process promotes continuous improvement within agencies. It also provides an opportunity for
Finance to identify issues that are common across agencies, thereby highlighting elements of the framework
that may require improvement. Significantly, agency Chief Executives are required to report on the action they
have taken to address reported instances of non-compliance. This is a key aspect of the Certificate process.
Chief Executives should ensure that their systems are robust and identify non-compliance with a view to
process improvement.
Agencies’ Certificate processes should be proportionate to their size, financial activities and financial
management arrangements. Chief Executives should ensure that their agencies employ effectively targeted
quality assurance activity to support the self-assessment Certificate process. Risk-based reviews of
transactions and internal controls will give greater consistency and more confidence in reported Certificate
results.
10
Instances of non-compliance with the Commonwealth Procurement Guidelines, which were previously reportable as a government policy, are
now reported against FMA Regulation 7 and counted in category one: the commitment of public money by agencies.
11
Footnote 2 lists the policies to be reported in the Certificate.
12
Proper use means efficient, effective, economical and ethical use that is not inconsistent with the policies of the Commonwealth. In managing
the affairs of the agency, Chief Executives must comply with the FMA Act and Regulations and any other law.
14
Chart I: Corrective strategies reported by agencies in 2010-11
Similar to previous years, the 2010-11 Certificate results indicate that agencies have adopted, or will adopt, a
variety of corrective strategies to address non-compliance. The main strategies reported by agencies are:

reviewing internal controls – including reviewing delegations and undertaking internal audits and system
reviews (53.4 percent);

communication and education – including reminders to staff, the provision of additional internal advice,
training and counselling (24.6 percent);

correcting systems or processes – including reviewing drawing rights, changing purchase order
arrangements, and introducing further approval and authorisation processes (10.2 percent); and

formal investigations, which may, in some instances lead to sanctions or other action (1.1 percent).
9. Financial Sustainability of Agencies
The Certificate requires Chief Executives to certify that their agency has adopted appropriate management
strategies for risks that may affect its financial sustainability and state whether the agency is operating within
the agreed resources. Where known risks may affect the financial sustainability of an agency and appropriate
management strategies have not or cannot be taken, an explanation must be provided in the Certificate.
In 2010-11, 11 agencies reported risks to their financial sustainability, including increasing cost pressures and
advising that approvals for operating losses have been or may be sought from the Finance Minister.
Twenty agencies reported financial sustainability risks in 2009-10.
15
10. Administration of the Certificate
While agency Chief Executives are responsible for preparing Certificates and improving compliance within
their agencies, Finance is responsible for the administration of the financial management framework and the
Certificate process at a whole-of-government level. It provides support to agencies through its administration
of the Certificate process and the provision of education and guidance on the Budget and financial
management frameworks. Finance undertakes four broad tasks as part of its responsibility to administer the
Certificate process.
i. Written guidance and day-to-day support to agencies on Certificate requirements
and the financial management framework.
Finance issues written guidance to agencies on key aspects of the financial management framework and
financial policies. This guidance includes Finance Circulars, the Financial Management Guidance Series,
policy guidelines and other material available on the Finance website at http://www.finance.gov.au/.
Finance has provided written guidance to agencies for each round of Certificate reporting. The guidance has
been contained in:

Finance Circular 2006/08: Certificate of Compliance – FMA Act Agencies issued in October 2006 for the
2006-07 financial year;

Finance Circular 2008/04: Certificate of Compliance – FMA Act Agencies issued in May 2008 for the
2007-08 and 2008-09 financial years;

Finance Circular 2009/06: Certificate of Compliance – FMA Act Agencies issued in August 2009 for the
2009-10 financial year; and

Finance Circular 2011/07: Certificate of Compliance – FMA Act Agencies issued in December 2011 for
the 2011-12 financial year.
Finance Circular 2011/07: Certificate of Compliance – FMA Act Agencies provides additional guidance to
agencies on the Certificate process, including a table containing all the relevant compliance elements of the
FMA Act and Regulations, and a section containing frequently asked questions.
In March 2011, Finance issued Finance Circular 2011/01: Commitments to spend public money
(FMA Regulations 7 to 12) to provide guidance to agencies on the financial management framework
requirements that apply when committing and spending public money. The Circular contains an overview of
the requirements that apply to committing public money and includes frequently asked questions. It also
includes examples of applying the FMA Regulations and a workbook for using Regulation 10 and 10A.
Finance also provides day-to-day advice to agencies on the administration of the Certificate process and the
application of the financial management framework more generally. This represents a significant ongoing
commitment from Finance, and the Finance Secretary has urged all agency Chief Executives to consult with
Finance as necessary on financial framework issues, as early consultation can lead to better compliance
outcomes.
ii. Aggregate analysis of Certificates and reporting on outcomes to key stakeholders.
Finance provides advice to the Finance Minister on Certificate outcomes. Following previous rounds, the
Finance Minister has written to portfolio Ministers informing them of the results of the Certificate process, and
suggesting that Ministers consider discussing the results with their portfolio Chief Executives, if they had not
already done so. Similarly, in 2012, the Finance Minister will write to the Prime Minister and portfolio Ministers
about the 2010-11 results and the tabling of the Report to the Parliament.
In addition, at the conclusion of each Certificate reporting round:
16

the Finance Secretary writes to all agency Chief Executives informing them of the overall results of the
Certificate process and offers Finance’s ongoing assistance in addressing issues identified in agency
Certificates;

Finance convenes a special forum for agency Chief Financial Officers (CFOs) to discuss the aggregate
outcomes of the Certificate process;

Finance provides a briefing on the outcomes of the Certificate process to the Chairpersons of agency
audit committees;

Finance meets with agencies that identified significant issues; and

Finance reviews current guidance on the Certificate process, based on feedback from agencies and the
ANAO.
iii. Improving guidance and education
At the conclusion of each reporting round, Finance has met with a number of agency CFOs, including those
that identify substantial issues, such as significant instances of non-compliance relating to the use of
Commonwealth credit cards. These meetings provide CFOs with an opportunity to discuss how their internal
control mechanisms and mitigation strategies may influence future results. They also provide CFOs and their
staff with an opportunity to raise specific issues that relate to their agency and clarify their understanding of
particular framework requirements.
In 2011, Finance updated guidance on matters dealt with in Part 4 of the FMA Regulations, which relates to
spending public money. In March 2011, Finance issued Finance Circular 2011/01: Commitments to spend
public money (FMA Regulations 7 to 12). The Circular reflects the changes to the Regulations. It provides a
single reference point for all matters dealt with in Part 4 of the Regulations and adopts a “modular” format to
improve its accessibility by permitting hot-linking. It also incorporates a question and answer section for each
key concept and includes diagrams and flowcharts to improve readability.
In July 2011, Finance also issued the Model CEIs. The Model CEIs seek to improve the consistency across
agencies and help staff members understand and comply with the key requirements of the financial
management framework.
Education and guidance are an important part of Finance’s strategy to improve understanding of, and
compliance with, the financial management framework. Finance provides a suite of advice, training, guidance
and tools to support agencies, ranging in focus from base-level introductory training to technical and agency
specific advice and training. Finance regularly provides workshops and targeted training, focusing on the key
risk areas of the financial management framework, which account for the highest instances of
non-compliance. Finance is also piloting new training arrangements with a view to developing training
partnerships with other agencies, such as the Australian Public Service Commission, and targeted training
that addresses risk areas indentified in the 2010-11 Certificate process.
iv. Improving the financial management framework.
Finance’s analysis of Certificate results again revealed that agencies encountered issues relating to the
correct procedures for the commitment, approval and expenditure of public money. In response, the
legislative requirements governing this aspect of the framework, as provided in Part 4, FMA Regulations 7-12,
were amended to improve their administrative efficiency and reduce unnecessary red tape.
The revisions took effect from 1 July 2010 and included:

reordering Part 4 of the Regulations (i.e. the old Regulations 7-14) to provide a more logical and
sequential workflow and rewording them to rationalise definitions and improve readability;

carving out, from Regulation 10, contingent liabilities assessed as “remote” and “non-material”, and
addressing them in a new Regulation 10A; and

de-coupling the timing of processes under Regulations 9 and 10, so that Regulation 10 agreement is
not required before Regulation 9 approval, alleviating the practical difficulty some agencies had in
17
complying with the timing aspect of the previous requirements.
As part of the Australian Government’s Better Government agenda, the Finance Minister announced on
8 December 2010 a review into the Commonwealth’s financial framework. The purpose of the Commonwealth
Financial Accountability Review (CFAR) is to analyse the Commonwealth’s financial framework from first
principles and consider options to ensure the framework supports high quality resource management now and
into the future. As part of CFAR, Finance has released 13 issues papers that identify particular issues and
options to facilitate consultation in the Commonwealth public sector.
11. Follow-up on the 2010-11 Certificate Process
Finance is undertaking a range of follow-up activities in respect to the 2010-11 Certificate process, including:

seeking feedback from portfolio CFOs on results and key trends;

providing a briefing on outcomes and key trends for the Chairpersons of agency audit committees;

informing agency Chief Executives and CFOs about key trends;

consulting with agencies that have reported relatively high instances of non-compliance on remediation
strategies;

reviewing of Certificate processes, in light of lessons learned and the outcomes of the ANAO
performance audit;

reviewing financial framework guidance in light of lessons learned; and

providing training and workshops, drawing on lessons learned.
12. ANAO Focus on Agency Processes
In recent years, the Australian National Audit Office (ANAO) has increased its focus on legislative compliance
as part of its financial statement audit coverage. The increased coverage involves the ANAO assessing key
aspects of legislative compliance.13 In respect to the 2010-11 Certificate process, the ANAO noted that,
generally, agencies continue to maintain listings of the laws, regulations and associated government policies
that are relevant to their responsibilities. Agencies also now have well established processes in place to
obtain assurance from line managers regarding compliance with relevant legislative requirements to enable
Chief Executives to provide an annual Certificate to their Minister.14
13
See ANAO Audit Report No.17 2011-12, Audits of the Financial Statements of Australian Government Entities for the Period ended 30 June
2011, p. 49.
14
See ANAO Audit Report No. 54 2010-11, Interim Phase of the Audit of Financial Statements of General Government Sector Agencies for the
Year ending 30 June 2011, p 40.
18
Part 1: 2010-11 results
by category
Introduction
Table 1 and Chart 1 report on the combined total of all (15,262) instances of non-compliance reported in
2010-11 against six categories, comprising key elements of the financial management framework for FMA Act
agencies:
i.
the commitment of public money by agencies;
ii.
the use of drawing rights by agencies;
iii.
the proper use of financial resources;
iv.
banking and investment by agencies;
v.
the maintenance of agency accounts and records; and
vi.
miscellaneous requirements.
Tables 1.1 to 1.6 and Charts 1.1 to 1.6 report on each portfolio group’s share of reported instances of
non-compliance in 2010-11 against the six categories. For example, Table 1.1 and Chart 1.1 record that the
Finance and Deregulation portfolio group reported 3.2 percent of all (11,585) instances of non-compliance
relating to Category 1.
B
19
Table 1: Percentage of all non-compliance by category
2009-10
Category
2010-11
Percentage
Instances
Percentage
Instances
73.2%
12,454
75.9%
11,585
ii. the use of drawing rights by agencies
7.7%
1,311
5.0%
761
iii. the proper use of financial resources
4.0%
687
4.0%
608
iv. banking and investment by agencies
v. the maintenance of agency accounts and
records
8.7%
1,479
9.4%
1,429
0.4%
66
<0.1%
9
i. the commitment of public money by agencies
vi. miscellaneous requirements
Instances of non-compliance
6.0%
1,020
5.7%
870
100.0%
17,017
100.0%
15,262
Chart 1: Percentage of all non-compliance by category for 2010-11
20
Table 1.1: Category 1 (the commitment of public money by agencies) by portfolio grouping
75.9 percent (11,585 instances) of all non-compliance related to Category 1 – the commitment of public
money by agencies. Table 1.1 records each portfolio group’s share of Category 1.
Portfolio group’s share of all non-compliance reported for
Category 1
2009-10
2010-11
Percentage
Instances
Percentage
Instances
26.2%
3,262
44.2%
5,121
6.6%
826
11.4%
1,321
Education, Employment and Workplace Relations
15.0%
1,870
10.3%
1,193
Attorney-General's
12.6%
1,573
6.6%
764
Health and Ageing
18.5%
2,306
5.4%
620
Sustainability, Environment, Water, Population and Communities
3.5%
439
5.3%
617
Foreign Affairs and Trade
1.7%
206
3.4%
392
Finance and Deregulation
1.1%
142
3.2%
372
Treasury
4.3%
530
2.9%
338
Innovation, Industry, Science and Research
3.8%
471
2.3%
266
Resources, Energy and Tourism
1.1%
133
0.9%
110
Agriculture, Fisheries and Forestry
0.6%
69
0.8%
96
Infrastructure and Transport
0.5%
60
0.6%
66
Human Services
1.7%
212
0.5%
62
Prime Minister and Cabinet
0.8%
95
0.5%
59
Climate Change and Energy Efficiency
0.2%
24
0.5%
54
N/A
N/A
0.5%
54
Families, Housing, Community Services and Indigenous Affairs
0.3%
32
0.3%
29
Parliament of Australia
0.2%
23
0.2%
27
Veterans' Affairs
1.4%
179
0.1%
14
<0.1%
2
0.1%
10
100.0%
12,454
100.0%
11,585
Defence
Immigration and Citizenship
Regional Australia, Regional Development and Local Government
Broadband, Communications and the Digital Economy
Total
21
Chart 1.1: Category 1 (the commitment of public money by agencies) by portfolio grouping
Chart 1.1 presents the 2010-11 data reported in Table 1.1 in graphical form.
Note: ‘Other’ includes portfolio groups whose share of the total is less than 1.5 percent
22
Table 1.2: Category 2 (the use of drawing rights by agencies) by portfolio grouping
5.0 percent (761 instances) of all non-compliance related to Category 2 – the use of drawing rights by
agencies. Table 1.2 records each portfolio group’s share of Category 2.
Portfolio group’s share of all non-compliance reported for
Category 2
2009-10
2010-11
Percentage
Instances
Percentage
Instances
35.6%
467
17.5%
133
Health and Ageing
4.0%
53
15.6%
119
Finance and Deregulation
9.8%
129
13.3%
101
N/A
N/A
12.4%
94
18.8%
247
10.1%
77
Broadband, Communications and the Digital Economy
-
-
9.7%
74
Infrastructure and Transport
-
-
9.2%
70
2.0%
26
3.3%
25
11.3%
148
3.0%
23
Agriculture, Fisheries and Forestry
5.8%
76
2.4%
18
Innovation, Industry, Science and Research
0.6%
8
1.2%
9
Immigration and Citizenship
0.9%
12
1.1%
8
-
-
0.5%
4
Attorney-General's
4.7%
62
0.4%
3
Prime Minister and Cabinet
2.8%
37
0.3%
2
-
-
<0.1%
1
Climate Change and Energy Efficiency
0.8%
11
-
-
Education, Employment and Workplace Relations
0.6%
8
-
-
Veterans' Affairs
0.1%
1
-
-
Sustainability, Environment, Water, Population and Communities
2.0%
26
-
-
-
-
-
-
100.0%
1,311
100.0%
761
Treasury
Regional Australia, Regional Development and Local Government
Human Services
Foreign Affairs and Trade
Defence
Parliament of Australia
Resources, Energy and Tourism
Families, Housing, Community Services and Indigenous Affairs
Total
23
Chart 1.2: Category 2 (the use of drawing rights by agencies) by portfolio grouping
Chart 1.2 presents the 2010-11 data reported in Table 1.2 in graphical form.
Note: ‘Other’ includes portfolio groups whose share of the total is less than 1.5 percent
24
Table 1.3: Category 3 (the proper use of financial resources) by portfolio grouping
4.0 percent (608 instances) of all non-compliance related to Category 3 – the proper use of financial
resources. Table 1.3 records each portfolio group’s share of Category 3.
Portfolio group’s share of all non-compliance reported for
Category 3
2009-10
2010-11
Percentage
Instances
Percentage
Instances
Defence
15.6%
107
25.5%
155
Education, Employment and Workplace Relations
21.5%
148
15.5%
94
4.7%
32
12.7%
77
10.2%
70
9.2%
56
7.1%
49
8.2%
50
11.9%
82
6.4%
39
Foreign Affairs and Trade
1.2%
8
4.6%
28
Immigration and Citizenship
0.7%
5
3.0%
18
Broadband, Communications and the Digital Economy
1.2%
8
2.6%
16
Finance and Deregulation
1.2%
8
2.3%
14
Prime Minister and Cabinet
1.2%
8
2.3%
14
Resources, Energy and Tourism
2.5%
17
2.3%
14
Agriculture, Fisheries and Forestry
2.8%
19
1.6%
10
Parliament of Australia
0.6%
4
1.5%
9
Sustainability, Environment, Water, Population and Communities
1.3%
9
0.8%
5
Human Services
2.2%
15
0.6%
4
Veterans' Affairs
-
-
0.5%
3
Health and Ageing
5.1%
35
0.2%
1
Infrastructure and Transport
9.0%
62
0.2%
1
Climate Change and Energy Efficiency
0.1%
1
-
-
N/A
N/A
-
-
100.0%
687
100.0%
608
Attorney-General's
Families, Housing, Community Services and Indigenous Affairs
Innovation, Industry, Science and Research
Treasury
Regional Australia, Regional Development and Local Government
Total
25
Chart 1.3: Category 3 (the proper use of financial resources) by portfolio grouping
Chart 1.3 presents the 2010-11 data reported in Table 1.3 in graphical form.
Note: ‘Other’ includes portfolio groups whose share of the total is less than or equal to1.5 percent
26
Table 1.4: Category 4 (banking and investment by agencies) by portfolio grouping
9.4 percent (1,429 instances) of all non-compliance related to Category 4 – banking and investment by
agencies. Table 1.4 records each portfolio group’s share of Category 4.
Portfolio group’s share of all non-compliance reported for
Category 4
2009-10
2010-11
Percentage
Instances
Percentage
Instances
Defence
12.0%
178
26.7%
382
Treasury
7.2%
107
21.8%
311
Immigration and Citizenship
17.3%
256
20.4%
291
Attorney-General's
22.9%
338
8.3%
118
Agriculture, Fisheries and Forestry
8.0%
119
6.9%
98
Finance and Deregulation
6.4%
94
4.3%
62
Prime Minister and Cabinet
4.0%
59
3.6%
52
Health and Ageing
5.7%
85
2.2%
31
Sustainability, Environment, Water, Population and Communities
0.9%
13
1.5%
22
Parliament of Australia
0.1%
2
1.3%
19
Foreign Affairs and Trade
4.5%
66
1.3%
18
Broadband, Communications and the Digital Economy
-
-
0.8%
11
Climate Change and Energy Efficiency
-
-
0.3%
5
N/A
N/A
0.2%
3
Education, Employment and Workplace Relations
0.5%
7
0.1%
2
Families, Housing, Community Services and Indigenous Affairs
1.8%
27
0.1%
2
Innovation, Industry, Science and Research
1.8%
26
0.1%
1
Infrastructure and Transport
0.0%
0
0.1%
1
Human Services
1.7%
25
-
-
Resources, Energy and Tourism
5.2%
77
-
-
-
-
-
-
100.0%
1,479
100.0%
1,429
Regional Australia, Regional Development and Local Government
Veterans' Affairs
Total
27
Chart 1.4: Category 4 (banking and investment by agencies) by portfolio grouping
Chart 1.4 presents the 2010-11 data reported in Table 1.4 in graphical form.
Note: ‘Other’ includes portfolio groups whose share of the total is less than 1.5 percent
28
Table 1.5: Category 5 (the maintenance of agency accounts and records) by portfolio grouping
Less than 0.1 percent (9 instances) of all non-compliance related to Category 5 – the maintenance of agency
accounts and records. Table 1.5 records each portfolio group’s share of Category 5.
Portfolio group’s share of all non-compliance reported for
Category 5
2009-10
2010-11
Percentage
Instances
Percentage
Instances
6.1%
4
100.0%
9
89.4%
59
-
-
Health and Ageing
1.5%
1
-
-
Sustainability, Environment, Water, Population and Communities
1.5%
1
-
-
Treasury
1.5%
1
-
-
Agriculture, Fisheries and Forestry
-
-
-
-
Attorney-General's
-
-
-
-
Broadband, Communications and the Digital Economy
-
-
-
-
Climate Change and Energy Efficiency
-
-
-
-
Defence
-
-
-
-
Education, Employment and Workplace Relations
-
-
-
-
Families, Housing, Community Services and Indigenous Affairs
-
-
-
-
Finance and Deregulation
-
-
-
-
Human Services
-
-
-
-
Infrastructure and Transport
-
-
-
-
Innovation, Industry, Science and Research
-
-
-
-
Parliament of Australia
-
-
-
-
Prime Minister and Cabinet
-
-
-
-
N/A
N/A
-
-
Resources, Energy and Tourism
-
-
-
-
Veterans' Affairs
-
-
-
-
100.0%
66
100.0%
9
Immigration and Citizenship
Foreign Affairs and Trade
Regional Australia, Regional Development and Local Government
Total
Chart 1.5 is not presented as only one agency reported instances of non compliance against Category 5.
29
Table 1.6: Category 6 (miscellaneous requirements) by portfolio grouping
5.7 percent (870 instances) of all non-compliance related to Category 6 – miscellaneous requirements.
Table 1.6 records each portfolio group’s share of Category 6. See page 13 for further information on this
category.
Portfolio group’s share of all non-compliance reported for
Category 6
2009-10
2010-11
Percentage
Instances
Percentage
Instances
Health and Ageing
20.5%
209
54.2%
471
Treasury
42.3%
431
30.7%
267
Defence
22.6%
231
3.5%
30
Finance and Deregulation
0.7%
7
2.7%
23
Families, Housing, Community Services and Indigenous Affairs
1.2%
12
2.5%
22
Human Services
5.0%
51
2.5%
22
Immigration and Citizenship
2.0%
20
2.4%
21
Prime Minister and Cabinet
1.2%
12
0.6%
5
Attorney-General's
1.4%
14
0.3%
3
Agriculture, Fisheries and Forestry
-
-
0.1%
1
Education, Employment and Workplace Relations
-
-
0.1%
1
Foreign Affairs and Trade
0.7%
7
0.1%
1
Innovation, Industry, Science and Research
0.9%
9
0.1%
1
Resources, Energy and Tourism
0.2%
2
0.1%
1
Sustainability, Environment, Water, Population and Communities
0.9%
9
0.1%
1
Broadband, Communications and the Digital Economy
0.6%
6
-
-
Climate Change and Energy Efficiency
-
-
-
-
Infrastructure and Transport
-
-
-
-
Parliament of Australia
-
-
-
-
N/A
N/A
-
-
-
-
-
-
100.0%
1,020
100.0%
870
Regional Australia, Regional Development and Local Government
Veterans' Affairs
Total
30
Chart 1.6: Category 6 (miscellaneous requirements) by portfolio grouping
Chart 1.6 presents the 2010-11 data reported in Table 1.6 in graphical form.
Note: ‘Other’ includes portfolio groups whose share of the total is less than 1.5 percent
31
Part 2: 2010-11 results
by portfolio group
Introduction
Table 2 and Chart 2 report on each portfolio group’s share of the combined total of all (15,262) reported
instances of non-compliance in 2010-11. For example, Table 2 and Chart 2 record that the Finance and
Deregulation portfolio group reported 3.8 percent of all (15,262) instances of non-compliance.
Charts 2.1 to 2.21 report on the types of non-compliance reported by each portfolio group, against six
categories, comprising key elements of the financial management framework for FMA Act agencies:
i.
the commitment of public money by agencies;
ii.
the use of drawing rights by agencies;
iii.
the proper use of financial resources;
iv.
banking and investment by agencies;
v.
the maintenance of agency accounts and records; and
vi.
miscellaneous requirements.
For example, Chart 2.8 records that the types of non-compliance reported by the Finance and Deregulation
portfolio group related to Category 1 (the commitment of public money by agencies), Category 2 (the use of
drawing rights by agencies), Category 3 (the proper use of financial resources), Category 4 (banking and
investment by agencies) and Category 6 (miscellaneous requirements). Chart 2.8 also records the proportion
of instances of non-compliance relating to the above categories.
32
Table 2: Percentage of all non-compliance by portfolio grouping
2009-10
Portfolio group’s share of all non-compliance reported
2010-11
Percentage
Instances
Percentage
Instances
23.1%
3,926
37.4%
5,711
6.6%
1,123
10.9%
1,668
Education, Employment and Workplace Relations
11.9%
2,033
8.5%
1,290
Health and Ageing
15.8%
2,689
8.1%
1,242
9.5%
1,618
7.1%
1,088
11.9%
2,019
6.3%
965
Sustainability, Environment, Water, Population and Communities
2.9%
497
4.2%
645
Finance and Deregulation
2.2%
380
3.8%
572
Foreign Affairs and Trade
2.2%
372
3.0%
464
Innovation, Industry, Science and Research
3.3%
563
2.2%
327
Agriculture, Fisheries and Forestry
1.7%
283
1.5%
223
Human Services
Regional Australia, Regional Development and Local
Government
3.2%
550
1.1%
165
N/A
N/A
1.0%
151
Infrastructure and Transport
0.7%
122
0.9%
138
Prime Minister and Cabinet
1.2%
211
0.9%
132
Resources, Energy and Tourism
1.3%
229
0.8%
126
Broadband, Communications and the Digital Economy
0.1%
16
0.7%
111
Families, Housing, Community Services and Indigenous Affairs
0.8%
141
0.7%
109
Climate Change and Energy Efficiency
0.2%
36
0.4%
59
Parliament of Australia
0.2%
29
0.4%
59
Veterans' Affairs
1.1%
180
0.1%
17
100.0%
17,017
100.0%
15,262
Defence
Immigration and Citizenship
Treasury
Attorney-General's
Total
33
Chart 2: Percentage of all non-compliance by portfolio grouping for 2010-11
Chart 2 presents the 2010-11 data reported in Table 2 in graphical form.
Note: ‘Other’ includes portfolio groups whose share of the total is less than 1.5 percent
34
Chart 2.1: Agriculture, Fisheries and Forestry portfolio group
Chart 2.2: Attorney-General's portfolio group
35
Chart 2.3: Broadband, Communications and the Digital Economy portfolio group
Chart 2.4: Climate Change and Energy Efficiency portfolio group
36
Chart 2.5: Defence portfolio group
Chart 2.6: Education, Employment and Workplace Relations portfolio group
37
Chart 2.7: Families, Housing, Community Services and Indigenous Affairs portfolio group
Chart 2.8: Finance and Deregulation portfolio group
38
Chart 2.9: Foreign Affairs and Trade portfolio group
Chart 2.10: Health and Ageing portfolio group
39
Chart 2.11: Human Services portfolio group
Chart 2.12: Immigration and Citizenship portfolio group
40
Chart 2.13: Infrastructure and Transport portfolio group
Chart 2.14: Innovation, Industry, Science and Research portfolio group
41
Chart 2.15: Parliament of Australia portfolio group
Chart 2.16: Prime Minister and Cabinet portfolio group
42
Chart 2.17: Regional Australia, Regional Development and Local Government portfolio group
Chart 2.18: Resources, Energy and Tourism portfolio group
43
Chart 2.19: Sustainability, Environment, Water, Population and Communities portfolio group
Chart 2.20: Treasury portfolio group
44
Chart 2.21: Veterans' Affairs portfolio group
45
Appendix: List of portfolio
groups for Certificate purposes
Appendix
Composition of Portfolio Groups as at 30 June 2011
Agriculture, Fisheries and Forestry portfolio group:
Australian Fisheries Management Authority
Australian Pesticides and Veterinary Medicines Authority
Department of Agriculture, Fisheries and Forestry
Wheat Exports Australia
Attorney-General’s portfolio group:
Administrative Appeals Tribunal
Attorney-General’s Department
Australian Commission for Law Enforcement Integrity
Australian Crime Commission
Australian Customs and Border Protection Service
Australian Federal Police
Australian Human Rights Commission
Australian Security Intelligence Organisation
Australian Transaction Reports and Analysis Centre
CrimTrac Agency
Family Court of Australia
Federal Court of Australia
Federal Magistrates Court of Australia
Insolvency and Trustee Service Australia
National Native Title Tribunal
Office of Parliamentary Counsel
Office of the Director of Public Prosecutions
46
Broadband, Communications and the Digital Economy portfolio group:
Australian Communications and Media Authority
Department of Broadband, Communications and the Digital Economy
Climate Change and Energy Efficiency portfolio group:
Department of Climate Change and Energy Efficiency
Office of the Renewable Energy Regulator
Defence portfolio group:
Defence Materiel Organisation
Department of Defence
Education, Employment and Workplace Relations portfolio group:
Department of Education, Employment and Workplace Relations
Fair Work Australia
Office of the Australian Building and Construction Commissioner
Office of the Fair Work Ombudsman
Safe Work Australia
Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority)
Families, Housing, Community Services and Indigenous Affairs portfolio group:
Department of Families, Housing, Community Services and Indigenous Affairs
Equal Opportunity for Women in the Workplace Agency
Finance and Deregulation portfolio group:
Australian Electoral Commission
Australian Reward Investment Alliance
ComSuper
Department of Finance and Deregulation
Future Fund Management Agency
47
Foreign Affairs and Trade portfolio group:
AusAID
Australian Centre for International Agricultural Research
Australian Secret Intelligence Service
Australian Trade Commission
Department of Foreign Affairs and Trade
Health and Ageing portfolio group:
Australian National Preventive Health Agency
Australian Organ and Tissue Donation and Transplantation Authority
Australian Radiation Protection and Nuclear Safety Agency
Cancer Australia
Department of Health and Ageing
National Blood Authority
National Health and Medical Research Council
Private Health Insurance Ombudsman
Professional Services Review Scheme
Human Services portfolio group:
Centrelink
Department of Human Services
Medicare Australia
Immigration and Citizenship portfolio group:
Department of Immigration and Citizenship
Migration Review Tribunal and Refugee Review Tribunal
Infrastructure and Transport portfolio group:
Australian Transport Safety Bureau
Department of Infrastructure and Transport
48
Innovation, Industry, Science and Research portfolio group:
Australian Research Council
Department of Innovation, Industry, Science and Research
IP Australia
Parliament of Australia portfolio group:
Department of Parliamentary Services
Department of the House of Representatives
Department of the Senate
Prime Minister and Cabinet portfolio group:
Australian Institute of Family Studies
Australian National Audit Office
Australian Public Service Commission
Australian Sports Anti-Doping Authority
Department of the Prime Minister and Cabinet
National Archives of Australia
Office of National Assessments
Office of the Australian Information Commissioner
Office of the Commonwealth Ombudsman
Office of the Inspector-General of Intelligence and Security
Office of the Official Secretary to the Governor-General
Old Parliament House
Regional Australia, Regional Development and Local Government portfolio group
Department of Regional Australia, Regional Development and Local Government
National Capital Authority
Resources, Energy and Tourism portfolio group:
Department of Resources, Energy and Tourism
Geoscience Australia
49
National Offshore Petroleum Safety Authority
Sustainability, Environment, Water, Population and Communities portfolio group:
Bureau of Meteorology
Department of Sustainability, Environment, Water, Population and Communities
Great Barrier Reef Marine Park Authority
Murray-Darling Basin Authority
National Water Commission
Treasury portfolio group:
Australian Bureau of Statistics
Australian Competition and Consumer Commission
Australian Office of Financial Management
Australian Prudential Regulation Authority
Australian Securities and Investments Commission
Australian Taxation Office
Commonwealth Grants Commission
Corporations and Markets Advisory Committee
Department of the Treasury
Inspector-General of Taxation
National Competition Council
Office of the Auditing and Assurance Standards Board
Office of the Australian Accounting Standards Board
Productivity Commission
Royal Australian Mint
50