An external service provider, KPMG, delivers internal audit services to the Museum under a three-year service contract. The major reviews completed by the internal auditors during 2004-2005 included:
- financial compliance
- human resource compliance
- International Financial Reporting Standards implementation
- IT security
- asset stocktake and revaluation
- inventory management
- travel expenditure
- Collection Management System.
Reviews of procurement and risk management were underway at 30 June 2005.
The Australian National Audit Office (ANAO) is responsible for auditing the Museum's annual financial statements. An unqualified audit opinion precedes the annual financial statements in Part Four of this report.
The ANAO tabled a performance audit of investment management in government agencies during the year which included a review of Museum operations. Also tabled during the year was a performance audit titled Safe and Accessible National Collections. This performance audit includes the Museum and other national collecting institutions.
Risk management and fraud control
To ensure efficient and effective delivery of programs, and to promote sound business practices, the Government requires all Commonwealth agencies to have risk management plans.
The Museum has a commitment to fostering a culture of risk management throughout the organisation through its risk management framework. The framework comprises:
- a risk management policy
- a risk management plan
- strategic and corporate risk registers
- guidance material for staff.
The Risk Management section advises all sections of the Museum and is responsible for the development and continuous improvement of the risk management framework. To strengthen its commitment to being a risk intelligent organisation, the Museum this year revised its Risk management policy. Council approved the new policy in April 2005.
In line with changes to the Australian Standard on Risk Management, AS4360, and as part of the ongoing review cycle, the Museum also commenced a review of the risk management plan and associated risk registers. The review is expected to be completed in the first half of 2005-2006. Concurrent with the review, the Risk Management section provided customised in-house training courses for all managers, as part of the Museum's Member Service Plan with Comcover.
The Museum continued to participate in Comcover's Annual Risk Management and Insurance Benchmarking program (see Indemnities and Insurance).
The Museum's business continuity framework was developed during 2004-2005. This is a comprehensive approach to business continuity and includes a business impact analysis (BIA). The BIA identifies the key business processes and elements that the Museum needs in place to deliver its key business objectives. The framework also recognises the many preparedness and preparation aspects the Museum has developed to train, plan and understand what will be required to respond to a crisis or emergency. During 2004-2005 the business continuity framework was tested in a full-day scenario based exercise that involved all relevant staff. Lessons learned from that exercise will be fed back into the framework as part of the continuous improvement cycle.
The Museum has a current fraud risk assessment and control plan that is endorsed by Council's Audit and Finance Committee. Awareness training is provided to staff as part of the Museum's induction training program.
Freedom of information
The Freedom of Information Act 1982 requires each Commonwealth Government agency to publish a statement setting out its role, structure and functions, the documents available for public inspection, and access to such documents. This statement is available in Appendix 10.
There were no formal requests for access to documents under section 15 of the Act during 2004-2005.
The Museum provides information as required to the Privacy Commissioner for inclusion in the Personal Information Digest. No reports by the Privacy Commissioner under section 30 of the Privacy Act 1988 concerning actions or practices by the Museum were received during 2004-2005.
Formal decisions/notifications/ministerial directions
The Museum received no formal notifications or Ministerial Directions from the Minister during 2004-2005 apart from Council appointment notifications.
The Museum received a Ministerial Direction from the Finance Minister during 2004-2005 directing the Museum to comply with the provisions of the Commonwealth Procurement Guidelines. Ministerial Directions from the Finance Minister from previous years that continue to apply include Government policy on cost recovery and foreign exchange.
There were no significant events advised to the Minister by the Museum during 2004-2005 in accordance with the Commonwealth Authorities and Companies Act 1997.
As at 30 June 2005 the Museum was involved in three legal claims - two relating to workplace injuries purported to have occurred to contractor's employees and one to a Museum visitor.
The Museum has denied liability and is defending the claims. Any successful claims are likely to be met by the Museum's insurer Comcover.
No new issues or matters about the Museum were referred to, or raised with, the Commonwealth Ombudsman's Office.