• Contents
• Letter of transmittal
• User guide
• part 1: overview of the nba and the blood sector
• part 2: highlights of 2011–12
• NBA's Performance
  (PARTS 3,4, AND 5)
• part 3: performance: securing the supply of blood and blood products
• part 4: performance: improving the sector and its management of risk
• part 5: performance: supporting appropriate and safe use of blood and blood products
• part 6: Corporate management
  • Governance
  • Planning and Service Delivery
  • People Management
• part 7: financial management and accountability
• part 8: appendices

Part 6: Corporate Management

GOVERNANCE

STRUCTURE

During 2011-12 the NBA senior executive management team comprised the following:

• General Manager and Chief Executive Officer:
  1 July-17 August 2011-Dr Alison Turner
  18 August 2011-2 April 2012-Ms Stephanie Gunn (Acting)
  27 March-30 June 2012-Mr Leigh McJames
• Deputy General Manager-3 April-23 May 2012-Ms Stephanie Gunn
• Principal Medical Officer, Dr Chris Hogan (resigned 16 January 2012
• Deputy General Manager, Sector Coordination, Systems and Corporate
  1 July-17 August 2011-Ms Stephanie Gunn
  22 August 2011-23 May 2012-Mr Geoff Haberfield
• Acting Deputy General Manager, Fresh Blood and Clinical Development, Ms Sandra Cochrane
• General Counsel and Deputy General Manager, Commercial Contracts, Mr Michael Stone.

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Governance committees

Three formal governance committees-the Senior Executive Managers' Committee, the Executive Managers' Committee and the Audit Committee-help the NBA executive plan and manage core strategic projects and stakeholder concerns. See Appendix 8 for further details.

The committees are actively involved in:

• maintaining our rigour in reporting and measuring performance against our operational plan
• improving our focus on internal and external performance indicators
• driving strategies, concepts and ideas for continual improvement.

In addition, the NBA has five formal cross-team functional committees to provide opportunities for staff to discuss strategies, issues, and processes and share experiences on issues of common relevance. These cross-team functional committees are a key element in our internal knowledge network, ensuring that work priorities and models relating to demand forecasting and coordination, inventory and supply, IVIg, and data processing and internal systems are effectively linked and prioritised to best meet internal and external priorities.

Audit Committee

The Audit Committee's work program progressed well during 2011-12. The committee met six times in 2011-12. Activities included:

• The Audit Committee's work program progressed well during 2011-12. The committee met six times in 2011-12. Activities included:
• providing advice on financial management, risk management, the Fraud Control Plan and accountability issues
• reviewing and making recommendations on the development of the internal audit work program and monitoring the progress of implementation activities to address findings
• reviewing and making minor recommendations to the General Manager on the 2010-11 annual financial statements
• reviewing and making recommendations to the General Manager on the Certificate of Compliance
• reviewing and providing advice on the Strategic Risk Management Plan
• the NBA is currently undertaking an assurance mapping exercise that will provide a framework to better target assurance activities which will ensure that risks are adequately monitored and controlled.

Internal audit

The NBA's internal audit program, guided by the Audit Committee, plays a key part in ensuring that risk is managed appropriately.

A review of the NBA's policies and procedures for the verification of goods ordering and receipting was completed in November 2010. The NBA continues to update its procedures to ensure a comprehensive accountability framework for contracts.

The internal auditor conducted a review of the controls, processes and general governance surrounding receipting and payments within the NBA.

The review identified that, with the addition of an extra staff member in the Finance team, that there was adequate segregation of duties in place in relation to key sign-off processes and delegations when key staff within the Finance team are not available.

The review recommended minor changes to strengthen the control environment, thus bringing the NBA in line with best practice. The NBA has adopted these processes.

Risk management

The NBA's governance framework integrates risk management considerations into all of its planning activities, including:

• development of an annual strategic risk management plan-assessed against corporate plan objectives and specific annual priorities
• a six-monthly review of the strategic risk management plan by the Executive Managers' Committee
• development of detailed actions within the annual operational plan to address core risks
• monthly reporting to the Executive Managers' Committee against the operational plan and on the status of core risks
• regular reporting to the NBA Board on the operational plan and the status of core risks.

The NBA has prepared its strategic risk management plan for 2012-13. The plan identifies key risks that could impact on the ability of the NBA to deliver a safe and secure blood supply. Both the NBA Board and the Audit Committee will provide input into the draft plan which is expected to be finalised in the second half of 2012.

The NBA participated in the 2012 Comcover Risk Management Benchmarking Survey and received a benchmarking score of 6.9 out of a possible 10. This benchmarking score places the NBA at a ??Top Down' maturity level. The average score achieved by all participating agencies was 6.59 out of 10. The survey identified the areas of greatest strength for the NBA's risk management capabilities, including risk management policy and objectives, integration and accountability and responsibility. The NBA will strive for further improvement by focusing on risk assessment, risk profiling and resourcing.

Fraud Control Plan

The Commonwealth Fraud Control Guidelines require agencies to conduct a fraud risk assessment and develop a fraud control plan every two years.

During 2010-2012, in accordance with these guidelines, the NBA updated its fraud risk assessment and fraud control plan. No significant new risks to the NBA were identified and a strong control environment remains in operation. In addition, as part of this update, fraud awareness training was conducted with NBA staff.

Under the current fraud control plan, the NBA continually monitors accountability and control frameworks to meet the specific needs of the agency, and ensures that it complies with the Commonwealth Fraud Control Guidelines.

No instances of fraud were detected during the reporting year.

Relationship with external auditors

The NBA acknowledges the assistance provided by its external auditors, the ANAO, in 2011-12. This assistance enabled the NBA to ensure compliance and appropriate accountability and to identify scope for continual improvement in our activities.

ANAO Performance Audit: the NBA's Management of the National Blood Supply

The ANAO completed its performance audit of NBA activities. The objective of the 2010-11 audit was to assess whether the NBA's governance and contractual arrangements are effective in ensuring sufficient blood supply and services. The audit was presented to Parliament on 12 October 2011.

The report identified that the NBA had:

• established organisational structures and processes which allow the agency to carry out its governance arrangements
• assumed a central role in the national coordination of blood through annual supply planning activities and contracting to purchase blood products and services
• advanced a range of activities to improve the efficiency and effectiveness of the blood sector
• carried out its key role of securing the national supply of blood and blood products through effective governance and contractual arrangements.

The ANAO made five recommendations to strengthen the NBA's administration of the blood supply program. The recommendations emphasise the importance of clear priority setting, stakeholder engagement, and sound contract management in defining and measuring program effectiveness.

The NBA welcomed the timely release of the report and the focus of the recommendations on encouraging further blood sector efficiency. However, we also noted that there are a number of recommendations for which the NBA does not have sole responsibility and depend on cooperation of jurisdictions and the public and private health sectors. Work on the recommendations outlined in the report is underway.

Other external scrutiny

There were no judicial decisions or decisions of administrative tribunals that impacted on the operations of the NBA during 2011-12. There were no reports of the agency by a Parliamentary committee or the Commonwealth Ombudsman.