Annual Report 2005 NSW Department of Education and Training

Appendices
Appendices
Appendix 22: Organisational
improvement and risk management
Introduction
During 2005 the Audit Directorate developed the
Enterprise Risk Management policy. This policy will
be implemented in 2006, replacing the existing Risk
Management Policy 91/090 (S.063, 24/4/91).
The Department uses a risk management approach for
both the development of its internal audit plan and for
conducting audits and reviews. Staff are trained in the
principles and methodology of risk management. The
methodology is used to help auditors and management
focus on risks relevant to the business directions of the
Department.
Risk assessment workshops were conducted with
departmental staff for a number of audits.These
workshops resulted in a shared understanding of risks
by staff and greater acceptance and ownership of
recommendations made at the workshop to minimise
risks and improve processes.
All TAFE NSW Institutes submitted a signed statement
of responsibility for internal control for 2005. These
documents stated that the objective of reducing risks
to an acceptable level had been achieved and that a
system of internal controls had operated satisfactorily.
NSW government schools
During 2005, the Department undertook 1,305 school
audits that focused on the key financial and related
operations in accordance with assessed risk. These
audits found that 92% of the schools managed their
finances satisfactorily, while 8% had adverse reports.
Common findings and summary reports were provided
to regional offices.
Audits were also undertaken in school enrolments,
occupational health and safety, teacher professional
learning and leave systems.
Recommendations to improve asset management
policy and procedures were implemented from 1
December 2005.
Organisational improvement
To help identify and manage risk as well as to improve
processes and systems so that services to students
and industry are improved, TAFE NSW Institutes,
OTEN and the Centre for Learning and Innovation
implemented business systems that meet ISO
9001:2000 Quality Standards. Many Institutes also
embraced other improvement standards including
ISO 14001:1996 Environmental Standards and
Hazard Analyses and Critical Control Point (HACCP)
Standards.
To ensure that business processes are robust, risk is
identified and addressed, and internal and external
audits are carried out. Findings are used to improve
planning, resource use and services.
TAFE NSW
Audits of major high-risk Institute functions such as
purchasing and accounts payable, receipting and
banking, payroll, and occupational health and safety
were conducted at all TAFE NSW Institutes. Audits
were also conducted covering the International
Students Centre, information and system sharing,
TAFE NSW marketing, and management of staff travel.
Auditors from the National Centre for Vocational
Education Research (NCVER) were assisted in
their audit of TAFE NSW student data on behalf of
the Australian National Training Authority (ANTA).
This audit is considered as being of high priority as
the results have a direct bearing on the Australian
Government’s funding received by TAFE NSW.
Statewide audit
Departmental staff undertook 24 audits in State Office
directorates. Significant system improvements resulted
from these audits and some examples are listed below.
• Governance review of major DET strategic
initiatives
• Technology for Learning Program
• Budgetary process
• Joint funded projects in schools
• Payroll
• Accounts payable
• Employment screening
• Financial viability checks on higher education
institutions seeking registration under the Higher
Education Act
• Probity audits of large tenders
• Quality control review over year end accounts.
Information systems
Sixteen audits were completed during the year.
Recommendations made in these reports, when
implemented, will improve operational controls,
security and efficiency in the systems reviewed.
Examples of some of these audits include:
• Systems - applications including corporate-wide
systems (personnel, payroll, finance and student
systems) and systems for specific directorates
including Adult and Community Education (ACE)
and Selective Schools
• Infrastructure - regional networks, wide area
networks, database and server management and
internet services
• Projects - technology projects including new
systems such as electronic establishment control
(e-EC) upgrades, system migrations and acquisition
of equipment and/or services
• IT Governance - significant resources were applied
to probity audits of request for tenders/quotations.
DET policy documents
Current DET policy documents are now accessible
to staff and members of the public on the corporate
111 NSW Department of Education and Training - Annual Report 2005