Departm 2007 10 C o r p o r at e p l a n adding value to public sector performance and accountability
Commonwealth of Australia 2007 ISBN 0 642 80955 0 This work is copyright. Apart from any use permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth available from the Department of Communications, Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to: Commonwealth Copyright Administration Intellectual Property Branch Department of Communication, Information technology and the Arts GPO Box 2154 Canberra ACT 2601 or posted at: www.dcita.gov.au/cca
2007 10 C o r p o r at e p l a n 3 foreword 4 role 5 our values and behaviours 6 vision 7 our environment 8 our risk management framework 9 key areas of improvement 10 how we plan to deliver our services 11 KRA 1: our clients 12 KRA 2: our products and services 13 KRA 3: our people 14 KRA 4: our business performance 15 measuring performance - the ANAO scorecard 16 our strategic planning framework 17 contact
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F o r e wo r d The Corporate Plan is the overarching document in our strategic planning framework. The corporate planning process is particularly useful as a discipline to ensure that we consider our business from a fresh perspective at least every three years. The Corporate Plan is a key document as it describes the context of our business and articulates the key strategies we intend to pursue in meeting our objectives over the next three years. It communicates our planned approach to all staff and stakeholders so there is a clear understanding of the directions the Office is taking and the goals we expect to achieve. This Plan retains the fundamental elements of our planning approach by focussing on our clients, our products and services, our people and our business performance. However, some of the objectives and strategies in the previous Corporate Plan have been modified to reflect our changing environment and requirements. In addition to the Corporate Plan, we develop an annual Business Plan that is consistent with the Corporate Plan but contains greater specificity in presenting the objectives, strategies and initiatives to guide our progress for each year of this Plan. To ensure that you have a good sense of our operational environment and the direction that we are taking our business, I encourage you to take the time to read the Corporate Plan. I look forward to working with you in meeting the objectives and strategies set out in this Plan. Ian McPhee Auditor-General May 2007 corporate Plan 3
R o l e The ANAO is a specialist public sector agency providing a full range of audit services to the Parliament, Australian Government public sector entities and statutory bodies, as well as government corporations. The ANAO assists the Auditor-General to provide an independent view of the performance and financial management of public sector entities. The Auditor General Act 1997 sets out the Auditor-General s functions, mandate and powers. The Act establishes a unique, independent relationship between the Auditor-General and the Parliament. Our primary client is the Parliament. While the JCPAA is our primary point of contact within the Parliament, we work closely with other parliamentary committees to inform their understanding of public administration and the outcomes of our audit coverage. It is the independence of the Auditor-General and the ANAO, and the quality and objectivity of our work, that underpins our standing and reputation. 4 corporate Plan
O u r va l u e s a n d behaviours We share a set of Australian Public Service (APS) Values that the Parliament has set out in the Public Service Act 1999. These APS Values describe the unique public interest features of the APS and the attributes that define the way we conduct ourselves professionally. Our specific agency values are underpinned by these APS Values and address the unique aspects of our business and environment. The ANAO Values and Behaviours as illustrated below influence the way we do our work. lead by example enjoy our work be mutually supportive be innovative and creative work with courage and tact communicate openly and be receptive r e s p e c t i n t e g r i t y celebrate and take pride in our achievements e x c e l l e n c e corporate Plan 5
V i s i o n An international leader in the provision of independent public sector audit and related services The ANAO s two outcomes, set out below, are directly related to the role and vision of the Auditor-General. Improvement in public administration independent assessment of the performance of selected Commonwealth public sector activities including the scope for improving efficiency, and administrative effectiveness. Assurance independent assurance of Commonwealth public sector financial reporting, administration, control and accountability. In turn, these objectives and strategies will be shaped by our environment, our Values and Behaviours, and our risk management framework. Timeframe This Corporate Plan has a life of three years. The objectives and strategies that support the Key Result Areas are intended to be accomplished within this timeframe. Annual targets are set out in our Business Plan, which is revised annually within the framework of the Corporate Plan. These outcomes will be met through the achievement and implementation of the objectives and strategies in four Key Result Areas: KRA 1 KRA 2 KRA 3 KRA 4 Our clients Our products and services Our people Our business performance 6 corporate Plan
O u r e n v i r o n m e n t Critical to our success is our ability to recognise and respond to changes occurring in our environment which impact directly and indirectly on the provision of our products and services. The environment we operate in will have a significant and sustained impact on the way we do our work and the cost of meeting our statutory responsibilities. Key environmental issues facing the ANAO include; The increasing complexity of the public sector operating environment as a result of factors such as: > the continuing trend in using the private sector to provide government services to the public with the attendant need for appropriate management and accountability arrangements; Developments in the accounting and auditing profession: > continuing attention to sound corporate governance; > the emphasis on risk management and the importance of robust control environments; > the adoption of international accounting and auditing standards; > the continuing development of government accounting standards including harmonisation with Government Finance Statistics; and > the ongoing development of audit methodologies, including an appropriate focus on legislative compliance. > the increasing variety of channels being used to deliver services to the community including whole of government approaches; > the ever increasing reliance on, and complexity of, information technology systems; > the need for more effective use and retention of corporate knowledge and the importance of effective record keeping, particularly electronic records; > challenges in recruiting and retaining the required skills for today s APS; and > an increased focus on the physical environment for example, water and the greenhouse effect and on security matters. corporate Plan 7
O u r r i s k m a n ag e m e n t f r a m e wo r k The ANAO has a comprehensive risk management framework, which forms an integral part of our strategic planning processes and underpins our business and support functions. The framework includes an overarching risk management plan for the Office as a whole and risk plans for each work functional area. These plans set out the identified risks and determine appropriate treatment measures designed to reduce all risks to an acceptable level. In broad terms, our strategic risks relate to the need to: > maintain independence, integrity and professionalism by meeting our legal and professional standards, delivering quality products and having effective relationships with our clients; > effectively recruit, manage and retain our people within a comprehensive framework that recognises both the requirements of the organisation and the needs and skills of our people; > effectively manage our financial resources within a sound financial framework; and > have cost effective systems and processes which support our business. The objectives and strategies identified in this plan have been developed within the context of our risk management framework. 8 corporate Plan
K e y a r e a s o f i m p r ov e m e n t Through the implementation of the strategies outlined under each Key Result Area, over the life of the plan, we expect to achieve improvement in the following areas: > our relationships with the Parliament and our public sector clients; > the delivery of a suite of quality products and services which meet the evolving needs of our clients and provide the greatest potential for improvements in public sector administration; > our business methodologies and approaches, including the way we measure and/or assess the impact of our work; > the way we manage our workforce, including our ability to build and sustain a long-term organisational capability; > the way we use knowledge and information to enhance the quality of our products and services; and > our systems and processes which support our business outputs. corporate Plan 9
H ow w e p l a n t o d e l i v e r o u r s e r v i c e s Key result areas We will deliver our services by focusing our efforts on four Key Result Areas: KRA 1 KRA 2 KRA 3 KRA 4 Our clients Our products and services Our people Our business performance Link to our Business Plan Details of specific initiatives to give effect to the implementation of the strategies outlined below are contained in our Business Plan which is revised each year to reflect changing business requirements. 10 corporate Plan
KRA 1 o u r c l i e n t s Strategies > Further strengthening our relationships with the Parliament and Parliamentary Committees, particularly the JCPAA, their Secretariats and with the Executive Government. Our clients are the Parliament (our primary client), the Government and public sector entities. Our objectives > Timely and high quality assurance to our clients on public sector administrative performance and accountability. > Our clients understand and accept the role of the ANAO. > Our clients recognise the value of the ANAO s people, products and services in contributing to improving public administration. > Leverage off our high visibility products to promote the work of the Office and improve understanding about what we do. > Refine our whole of office approach with better coordination of effort when dealing with agencies. > Improve and grow our dialogue and relationships with our public sector clients with more emphasis on managing the relationship to encourage more timely and effective outcomes, and assisting good practice. > Continue to develop our awareness and understanding of public policy, agency operations and professional requirements across the APS and internationally. > Enhance our liaison and cooperation with public and private sector auditing organisations, including the accounting and auditing profession. corporate Plan 11
KRA 2 o u r p r o d u c t s a n d s e r v i c e s Our key products are independent financial statement audits of all relevant public sector entities, performance audits of selected public sector entities, better practice guides and our newsletters Opinions and Auditfocus. Our objectives > Quality and independent financial statement audits of all Australian Government entities in accordance with recognised professional standards. > A suite of performance and assurance products and information support activities that meet, or exceed the Auditor-General s requirements and relevant professional standards. > Ongoing access to, and visibility of, our products and services to maximise their impact on public administration. Strategies > Deliver a mix of timely and relevant products on topics that provide the greatest opportunity for improvement in administration across the APS. > Improve awareness and usage of our products and services. > Continue to progress a strategic approach to IT audit capability. > Enhance the ANAO s national and international activities to support the achievement of our outcomes and outputs and to develop capability in Audit Offices within the Asia/Pacific region. > Deliver a robust system of quality assurance reviews of our organisational activities and products. 12 corporate Plan
KRA 3 o u r P E O P L E Highly performing people working in an environment that maximises their contribution to our business objectives. Strategies > Develop our understanding of the expectations of an evolving workforce including what is achievable. Our objectives > A sustainable, highly skilled, longer term workforce capability. > A working environment that it is recognised as a workplace of choice, and a good place for people to achieve their potential in a team environment. > Innovation in work practices to better align people and business practices. > Maintain a workforce plan that assists us to determine our optimal workforce requirements, including skills and capabilities. > Continue the development of innovative employment options and work practices as part of attracting and retaining highly performing people. > Further develop structured training and development support of staff with more emphasis on new starters. > Recognise and reward the demonstration of APS and ANAO Values and Behaviours. corporate Plan 13
KRA 4 o u r b u s i n e s s p e r f o r m a n c e Continuously review and improve our processes, support structures and procedures to deliver optimum business performance. Our objectives > A strategic focus that facilitates a timely response to changes in our environment. > Effective processes, systems and management practices which meet our business needs. > A flexible funding model that better aligns our resources base with externally driven resource demands. > Business innovation to enable the ANAO to respond effectively to future audit demands and requirements. Strategies > A strong focus on the people and financial dimensions of the ANAO in addition to the technical and client aspects of our business. > Evaluate and apply contemporary business technology and processes and resourcing practices to support all ANAO business requirements. > Identify complementary productivity and performance measures which support our business directions. > Enhance forums that encourage broad-based participation in organisational decision making. > Investment in organisational capability that will give the ANAO a long term benefit. 14 corporate Plan
M e a s u r i n g p e r f o r m a n c e - o u r s c o r e c a r d We will continue to maintain a scorecard of performance measures for communicating and understanding how we are performing internally and externally. The scorecard, which forms an integral part of our Business Plan, is aligned with our four Key Result Areas and relevant performance measures from our annual Portfolio Budget Statement. This framework provides us with the information we need to focus our current and future efforts. Our performance against the scorecard is set out in our Annual Report. corporate Plan 15
O u r s t r at e g i c p l a n n i n g f r a m e wo r k Portfolio Budget Statement describes outcomes and outputs framework and the basis for funding Fraud Control and Risk Management Plans identify and analyse business risks and fraud risk and how we deal with these risks Corporate Plan outlines our vision, values and key business strategies -reviewed every three years IT Strategic Plan guidance on future decisions regarding the selection and management of information systems Business Plan > describes specific action items to implement strategies under each KRA and details the scorecard for measuring performances > describes specific products, services and resources required and indicators to measure our performance > reviewed annually Individual Performance Agreements each performance agreement contains elements, which relate to the Key Result Areas as set out in our Corporate and Business Plans 16 corporate Plan
C o n tac t Executive Director, Corporate Management Branch Australian National Audit Office GPO Box 707 CANBERRA ACT 2601 Telephone: (02) 6203 7640 Facsimile: (02) 6203 7722 Internet: http://www.anao.gov.au corporate Plan 17