2009-10 Annual Report - Australia Post

More documents

Recommendations

Info

CorPorAte governAnCe incentive rewards payable to the managing director and Ceo and other senior executives for meeting or exceeding specific key annual business objectives are linked to the annual business planning process at a corporate and individual level. Measures and targeted achievement levels are reviewed annually to reflect changes in the business priorities for the forthcoming year. the measures include financial, customer satisfaction, employee engagement and other individual measures that support the key business objectives. Before a reward is payable, a threshold must be reached, according to predefined measures. in the case of the managing director and Ceo, part of his incentive payment is deferred. the managing director and Ceo and other senior executives are employed under individual contracts of employment that are not limited to a specific duration. Continuation of employment is subject to ongoing satisfactory performance. Where australia post terminates the managing director and Ceo’s or other senior executive’s employment for reasons other than performance or misconduct, they are entitled, in the case of the managing director and Ceo, to: • a payment of 12 months’ fixed annual remuneration in lieu of notice and a termination payment of 12 months’ fixed annual remuneration less any payments in lieu of notice and, for other senior executives, to: • 90 days’ payment in lieu of notice and a termination payment calculated on four weeks for each of the first five years of employment and three weeks for every year thereafter to a maximum of 84 weeks, including the payment in lieu of notice. all of the above payments are based on annual base salary. Remuneration details for the managing director and Ceo and other key executives are provided in note 27 to the financial statements (see page 82). Remuneration arrangements for senior executives are being reviewed and a new remuneration structure is being implemented for 2010–11. External audit Under section 8 of the CaC act, the auditor-General is responsible for auditing the financial statements of australia post and its subsidiaries. the auditor-General is also responsible for auditing compliance with the performance standards prescribed for australia post under section 28C of the apC act. ernst & Young has been retained by the australian national audit office to assist in both of these assignments. the board has in place a comprehensive set of audit independence principles in relation to the external auditors. among other things, these principles exclude the engagement of the external auditors for the provision of certain non-statutory audit-related services, such as internal auditing, taxation planning, treasury policy and operations, and business and strategic planning. in addition, the senior audit partner on the corporation’s account must be rotated at least every five years. 32 AustrAliA Post AnnuAl rePort 2009–10 | RepoRt of opeRations Internal audit australia post’s internal audit service brings a systematic and disciplined approach to risk management, control and governance processes. empowered by the board to direct a wide-ranging program of internal auditing, it has full and unrestricted access to all functions, property, personnel, records, accounts, files and other documentation. the internal audit work program is endorsed annually by the Board audit & Risk Committee, with results, progress and performance regularly reviewed by both the committee and the external auditors. the internal auditor also meets privately with the committee before each meeting, without other management present. Risk management the board has established a comprehensive risk management and compliance policy framework covering significant operational, strategic and compliance-related business risks. the framework and underpinning processes are consistent with the principles of the relevant standards (iso31000 and as3806). as part of the risk management and compliance framework all business units provide an annual presentation to an internal Risk Management Committee on their existing and emerging risks, associated mitigation strategies and progress against their implementation. the status of higher rated risks is reported to the audit & Risk Committee each quarter. in addition, each year the status of each major compliance program is provided to the audit & Risk Committee. Risk identification, measurement and mitigation strategies are included in all business-related proposals considered by the board. there are also a number of programs in place to manage risk and compliance in specific areas such as fraud, the environment, injury prevention and management, trade practices, privacy, it, emergency procedures and business continuity planning. the potentially adverse financial impacts associated with catastrophic risk exposures are limited by the purchase of appropriate insurance cover. the effectiveness of the corporation’s risk management and compliance framework is reviewed annually by the board. to ensure the maintenance of better practice, independent external reviews of risk management and compliance processes across the corporation are undertaken every four years. the most recent such review was undertaken by Deloittes in late 2008. Internal control framework australia post’s internal control includes strategic, financial, operational and compliance elements established across multiple internal control layers. Controls include financial planning and reporting, commitment and expenditure delegations, due diligence, procurement contract tendering, expenditure gating, external performance reporting and corporation-wide risk management and internal audit practices. financial reporting and business system integrity are assured through the maintenance of extensive operating procedure policies and practices. Before adopting the annual financial statements, the board receives written confirmation from the managing director and Ceo and the chief finance officer that the integrity of the statements is founded on a sound system of risk management and internal compliance and control, and that all material risks have been managed effectively.
Treasury A comprehensive and prudent treasury policy exists to manage cash and liquidity, interest rate, foreign exchange, fuel price, counterparty and operational risks. Reviewed by the board at least annually, the policy provides for the use of hedging instruments to protect the corporation against adverse movements in interest rates and minimise the impact of volatility in foreign exchange rate and oil price movements. The aim is to ensure reasonable certainty against budget estimates and in the cost of imported capital equipment and other supplies. Established treasury procedures incorporate risk control principles of segregation of duties, dual control access and independent reconciliations. An internal Treasury Risk Management Committee meets monthly and reviews/recommends appropriate hedging strategies to the executive general manager fi nance within policy parameters. Treasury activities are reported quarterly to the board and are subject to annual review by auditors. Corporate Security Corporate Security Group (CSG) is an internal service group that provides consultancy and investigation services to Australia Post. It is chartered to maintain the integrity of the mail, ensure staff safety and protect the assets of the corporation and has a 24-hours-per-day, seven-days-per-week response capability. This specialist group maintains close internal working relationships with the legal, risk and audit areas, as well as externally with international, national, state and territory law enforcement services and agencies. Directors’ attendance at meetings – 2009-10 2009–10 Trade practices To facilitate compliance with relevant legislation, Australia Post has a dedicated trade practices compliance offi cer responsible for a national trade practices compliance program. In addition to undertaking comprehensive biennial trade practices training, the corporation has in place a detailed formal clearance process for all promotional and advertising material. Privacy The corporation has appointed a privacy contact offi cer who is accountable for the maintenance of the corporation’s privacy compliance program. Under this program, detailed policies, processes and procedures are in place to ensure compliance with privacy law, to safeguard customers’ personal information and to foster a corporate culture that values privacy. Board Audit & Risk Committee Human Resources Committee (a) (b) (a) (b) (a) (b) David Mortimer 10 10 5 5 Mark Birrell 6 6 2 2 Ahmed Fahour 5 5 2 2 Graeme John 5 5 2 2 Peter Carne 6 6 Mark Darras 10 10 2 2 Margaret Gibson 10 10 5 5 William Mansfield 10 10 4 4 Ian Warner 10 10 5 5 (a) Number of meetings held while a director/committee member. (b) Number of meetings attended. AUSTRALIA POST ANNUAL REPORT 2009–10 | REPORT OF OPERATIONS 33
Page 1: gETTing fuTuRE REAdY AuSTRAliA PoST
Page 4 and 5: AUSTRALIA POST HAS ALWAYS BEEN IN T
Page 6 and 7: OUR BUSINESS OUR CAPABILITIES AND B
Page 8 and 9: OUR BUSINESS THE YEAR IN REVIEW 6 A
Page 10 and 11: OUR BUSINESS CHAIRMAN’S REPORT Da
Page 12 and 13: OUR BUSINESS FINANCIAL REPORT Perfo
Page 14 and 15: our Business Key Business results O
Page 16 and 17: CORE BUSINESSES In 2009-10, our 4,4
Page 18 and 19: CORE BUSINESSES LETTERS & ASSOCIATE
Page 20 and 21: CORE BUSINESSES AGENCY SERVICES & R
Page 22 and 23: core Businesses aGenCY seRViCes & R
Page 24 and 25: CORE BUSINESSES PARCELS & LOGISTICS
Page 30 and 31: CORPORATE RESPONSIBILITY Some key r
Page 32 and 33: CorPorAte governAnCe General austra
Page 36 and 37: BOARD OF DIRECTORS David A Mortimer
Page 38 and 39: FINANCIAL AND STATUTORY REPORTS 36
Page 40 and 41: FinAnCiAl And stAtutory rePorts for
Page 42 and 43: FinAnCiAl stAtements Audit rePort f
Page 44 and 45: stAtement oF ComPrehensive inCome f
Page 46 and 47: CAshFlow stAtement for the year end
Page 48 and 49: sChedule oF Commitments as at 30 Ju
Page 50 and 51: notes to And ForminG PArt oF the Fi
Page 84 and 85:
notes to And ForminG PArt oF the Fi
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Community serviCe oBliGAtions for t
Page 102 and 103:
Auditor-GenerAl’s rePort - PerFor
Page 104 and 105:
domestiC letter serviCe monitor (co
Page 106 and 107:
survey CertiFiCAtion (continued) fo
Page 108 and 109:
stAtutory rePortinG reQuirements in
Page 110 and 111:
stAtutory rePortinG reQuirements in
Page 112 and 113:
stAtutory rePortinG reQuirements (c
Page 114 and 115:
stAtutory rePortinG reQuirements (c
Page 116 and 117:
AustrAliA Post - the stAtistiCs (co
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
index (CONTINUED) courier services;
Page 124 and 125:
index (continued) r raw materials 5
Page 126 and 127:
ABout tHis AnnuAl rePort editor/pro
Page 128 and 129:
STAmP gAllERY 2009-10 Kokoda 20 Apr
Page 130:
AuSTRAliA PoST AnnuAl REPoRT 2009-1
show all

2009-10 Annual Report - Australia Post

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?