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Risk Management

Risk and audit at a glance

The agency has established, as a part of the corporate governance structure, a Risk and Audit Committee as an advisory committee to the Chief Executive. The inaugural Committee members were appointed on 19 November 2019.

The Committee comprises three members from various backgrounds with expertise in finance, risk management and corporate governance, as follows:

Committee member

Role

Term

Mr Andrew Faulkner

Chair

Principal in the Audit and Assurance division of Pitcher Partners in Adelaide, specialising in internal/external audit and assurance, risk management, commercial business advice and corporate governance. He has a Bachelor of Business (Accountancy) and has also been practicing as a Chartered Accountant for more than 20 years. He is a Member of Chartered Accountants Australia and New Zealand, a Registered Company Auditor and Registered Tax Agent.

From

1 December 2019

to

1 December 2021

Ms Nicolle Rantanen-Reynolds

Ordinary Member

She is the South Australian Public Trustee managing more than 200 staff with responsibilities including corporate strategy, financial management and investment of more than $1.2 billion. She has a Masters of Commercial Law, a Masters of Business Administration and a Bachelor of Commerce. She is a Fellow of the Australian Institute of Company Directors, a Fellow of the Australian Society of CPAs and a Fellow of the Taxation Institute of Australia.

From

1 December 2019

to

1 December 2021

Mr Peter Brass

Ordinary Member

He is an accomplished executive with diverse industry and business exposure, his skills and experience ensure heightened levels of commercial accountability, financial management and business rigour. He holds a Bachelor of Economics. He is a Fellow of CPA Australia, a graduate of the Australian Institute of Company Directors and is a Certified Practicing Risk Manager with the Risk Management Institute of Australasia.

From

1 December 2019

to

1 December 2021

The purpose of the Committee is to provide independent assurance and assistance to the Chief Executive on the operation and effectiveness of financial management and reporting, risk management, legislative and policy compliance, audit, integrity oversight and quality assurance and continuous improvement responsibilities of the agency. The Committee’s responsibilities, authority and specific duties are set out in a Terms of Reference approved in September 2019 and a Committee Work Plan approved in February 2020.

The Committee held its first meeting on 18 December 2019. The Committee meets at least four times per year.

Fraud detected in the agency

Category/nature of fraud

Number of instances

Asset misappropriation or misuse

0

Accounting, superannuation and/or tax fraud

0

Bribery or corruption

0

IP infringement, including theft of data

0

Card Fraud

13

Procurement or supplier fraud

0

Human resources fraud

(Recruitment / Identity / Timesheet / Expenses)

0

Cybercrime / espionage

0

Other (describe below)

 
 

Misuse of grant funding

2


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

Major categories of fraud adapted from Deloitte: Public sector fraud Identifying the risk areas and PwC: Fraud in the public sector and Fighting fraud in the public sector IV.

Strategies implemented to control and prevent fraud

The agency is committed to the prevention, detection and reporting of fraud and corruption in connection with its activities.

The processes for preventing, detecting and responding to the risks of fraud are documented in the Fraud and Corruption Policy issued by the Commissioner for Public Sector Employment. Additionally, every employee has an obligation to report any suspected fraud, corruption, maladministration and misconduct.

These processes are supported by:

  • Monthly executive financial performance reports.
  • Certification of internal controls under the Financial Management Compliance Program and the end-of-financial-year statements preparation process.

The financial report is supported by a system of internal controls that are monitored and assessed during the financial year through the agency’s internal assurance processes and other processes undertaken by Shared Services SA as the external service provider.

Appropriate business practices are also reinforced through the agency’s Financial

Management Compliance Program and the oversight of a Risk and Audit Committee (established in December 2019).

Risk management is crucial to the agency’s fraud control strategy. It provides the agency with an understanding of its vulnerabilities and guides its development of effective strategies to minimise the opportunities for fraud to occur.

The Risk Management Policy details the agency’s overall framework for the systematic identification, analysis, evaluation and treatment of risks, including those relating to fraud and corruption. The Fraud and Corruption Control Policy also provides the requirement for business areas to assess the risks of fraud as part of its risk management activity. The agency’s strategic and business risk management processes include consideration of potential risks.

The agency’s risk profile is assessed on an annual basis through a structured review process. It details key fraud risks together with control activities, responsibilities and any treatment actions.

The agency’s first line of defence against the risk of fraud and corruption is its internal control framework. It consists of hard controls (such as organisational structures, plans, authorities and responsibilities, policies, procedures, information systems and reporting mechanisms) and soft controls (such as management culture, morale, integrity, ethical climate, empowerment, competencies, openness, shared values and supervisory controls) that manage the risks identified through the risk assessment process.

A code of ethics has been in place throughout the course of the year to ensure all business affairs are conducted legally, ethically and with the strict observance of the highest standards of integrity and propriety. This code of ethics applies to all executives, employees and contractors of the agency.

The agency’s supervisory staff are required to exercise due diligence in the hiring, retention and promotion of employees, which assists in reducing exposure to fraudulent and corrupt conduct. Role applicants and continuing employees are required to make full and honest disclosure of criminal conviction history. Criminal history record checks are undertaken for potential and existing employees in roles that have been classified as 'positions of trust'. Holding of these positions requires the maintenance of a satisfactory criminal history.

Employees who are responsible for the ongoing creation, use, handling, storage and disposal of security classified information and resources as part of their normal duties are subject to a security clearance at the appropriate level for their role. These requirements are documented in the role statements for identified roles.

All new inductees have been required to complete the iLearn Code of Ethics Awareness Program. All staff are required to declare actual or perceived conflicts of interest at commencement, prior to involvement in specific projects (e.g. grant assessments) and across the duration of their employment.

Public interest disclosure

The 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: https://data.sa.gov.au/data/organization/office-for-recreation-sport-and-racing

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.