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Structure, Governance and Authority in the Blood Sector

Governance Arrangements

The key governing bodies in the Australian blood sector and their roles and relationships with each other are set out in the National Blood Agreement and National Blood Authority Act 2003 and are depicted in Figure 3.1.

FIGURE 3.1 Governance and Authority in the Blood Sector

Establishment of the National Blood Authority

The National Blood Agreement between all governments outlines the policy framework for the current national blood arrangements. The Agreement outlines the:

• nationally agreed objectives of governments for the blood sector (primary and secondary)
• governance arrangements for the sector
• administrative arrangements for the management of the national blood supply
• financial arrangements for the national blood supply.

The NBA emerged from the 2001 Review of the Australian Blood Banking and Plasma Product Sector undertaken by Sir Ninian Stephen. The Stephen Review noted the need for changes to the inconsistent and fragmented arrangements that applied to the blood sector at that time. More specifically, there were 30 agreements in existence between the governments, the Blood Service and CSL. In addition, supply costs had tripled between 1991 and 1999.

The Stephen Review recommended the strengthening of the arrangements for the coordination and oversight of Australia's blood supply, including the establishment of a National Blood Authority to manage Australia's blood supply at a national level.

Negotiations to develop a national management framework commenced in June 2001 in consultation with the states, territories and other key interest groups.

Commonwealth legislation allowing for the establishment of the NBA passed through both Houses of Parliament and the new Authority came into existence on 1 July 2003.

NBA Governance Committees

An overview of the NBA Governance structure is shown in Figure 3.2.

FIGURE 3.2 Governance and Authority in the NBA

Three committees assist the NBA Chief Executive to plan and manage corporate governance, outcome delivery, strategic projects and stakeholder interests:

• The NBA Business Committee is the primary governance committee for the NBA. It provides strategic oversight and direction for the management of the NBA and its business and finance activities.

  The role of the NBA Business Committee is to:

  • support and advise the Chief Executive
  • provide strategic leadership, guidance and direction in relation to all business activities and processes and also in relation to people management, financial management and ICT issues
  • review NBA business plans and activities, and monitor progress regularly against key milestones and deliverables
  • consider NBA investment priorities and review these priorities on a regular basis
  • oversee relevant sub-committees and project boards.

  The Committee comprises the Chief Executive, Deputy Chief Executives, Chief Finance Officer, Chief Information Officer and Director, People and Communications. The Committee is chaired by the Chief Executive and supported by the Executive Support Office. Other staff may be required to attend meetings for relevant agenda items.

• The NBA Audit and Risk Committee (ARC) provides independent advice and assurance to the Chief Executive on strategies to enhance the organisation's governance control and risk management framework assist with planning and conducting the NBA internal audit program and support financial and legislative compliance. The Committee met five times in 2018-19.

  Its membership in 2018-19 was as follows:

  • Mr Ken Barker (Chair)
  • Mr Paul Bedbrook (Board representative)
  • Mrs Roslyn Jackson
  • Mr Greg Fraser (since 1 May 2019)
  • Representatives from the Australian National Audit Office (ANAO) and the NBA internal auditors (currently RSM (Australia) also attend meetings as observers for most matters.
• The Staff Participation Forum (SPF) - the NBA has an established SPF to consult directly with its employees and representatives about significant decisions that affect their working lives. The SPF is a group comprised of NBA staff representatives, NBA management representatives and a Work Health and Safety representative.

NBA Management

As at 30 June 2019, the NBA Executive Management team comprised the following

• Chief Executive – Mr John Cahill
• Deputy Chief Executive Commercial Blood Products and Business Services – Mr Michael Stone
• Deputy Chief Executive Fresh Blood Products and Business Systems – Ms Elizabeth Quinn.

As at 30 June 2019, the NBA comprised two business streams, Commercial Blood Products and Business Services and the Fresh Blood Products and Business Systems. The two streams comprise teams as below:

Commercial Blood Products and Business Services

• Commercial Blood Products
• Immunoglobulin Governance
• Research and Product Review
• Finance and Business Services
• People and Communications
• Legal Services

Fresh Blood Products and Business Systems

• Blood and Data Services
• Blood Operations Centre
• Fresh Blood Products and Services
• Information Technology Services
• Risk Management.

Internal Audit and Risk

The NBA's internal audit and risk program, guided by the Audit and Risk Committee, plays a key part in risk mitigation. The Audit and Risk Committee reviews the risk register on an annual basis as a key input in developing the internal audit and risk program.

RSM (Australia) conducted a range of audits and reviews in line with the work program developed in conjunction with the Audit and Risk Committee. The 2018-19 work program encompassed reviews of the NBA's:

• contract management performance
• travel arrangements
• financial controls framework
• updated fraud and corruption control plan
• procurement under $80K.

The Audit and Risk Committee continued to monitor the implementation of internal audit report recommendations through status reports.