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Corporate Services

AMSA, 15th Annual Report, 2004 - 2005

AMSA’s Corporate Services Division supports delivery of AMSA’s outputs by providing cost effective, efficient and timely corporate services:

Financial management: financial reporting, processing financial transactions, international travel arrangements and management of AMSA revenue and investments;
Human resources: human resource management, industrial relations, occupational health and safety, staff development, compensation and remuneration management;
Property and services: property management, provision of general business services, contract management and insurance and risk management;
Corporate documentation: AMSA’s quality and environmental management systems, corporate business planning and performance reporting, budget and coordination/production of other corporate documents;
Information services: information management and management of AMSA’s information technology infrastructure including systems development, maintenance, user support and IT equipment and stores;
Public relations: community relations, incident management, publications, conference coordination, education campaigns and media liaison;
Corporate strategy: strategic planning and reporting, international relations and government liaison.

Operating environment in 2004-2005

During 2004-2005, AMSA’s delivery of these corporate services was influenced by the following external factors:

Australian Government adoption of International Accounting Standards from 1 January 2005.
Application of Environment and Heritage Legislation Amendment Act 2003 to AMSA’s historic lighthouse sites.
Changes to Government procurement framework for agencies regulated by the Commonwealth Authorities and Companies Act 1997 arising from the operation of the Australia-United States Free Trade Agreement from 1 January 2005.
Application of Cost Recovery Guidelines for Regulatory Agencies.
Increasing pressure on information technology and systems to cope with the changing security environment.
Emphasis on public and private sector organisations adopting strong corporate governance framework.
Stakeholder expectations for involvement in AMSA’s strategic planning and need for information and consultation about safety and environmental protection developments in the maritime industry.
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AMSA’s response to the operating environment

In response to these external factors in the operating environment, AMSA identified the following objectives and actions to focus its work during 2004-2005 on the delivery of cost effective, efficient and timely corporate services.

Financial And Business Services

Corporate Objective 1: Delivery of a comprehensive program of corporate services to facilitate the effective management of resources and the conduct of business relationships that are responsive to change.

Finance Services Response: Increase in cost effectiveness of AMSA services to internal
stakeholders.

Priority actions during 2004-2005

Consolidating implementation of systems in financial activity and human resource management to ensure they continue to meet AMSA’s business needs

Following implementation on 1 July 2004 of the upgraded financial and human resources systems, attention has focused on consolidating the system’s improved support for internal Divisions’ budget management requirements. This has involved tailoring some aspects of the system’s components to AMSA’s specific business needs. Modifications have been made to the financial management and accounting package, business budgeting, forecasting and related reporting package, the web-based on-line staff time recording system and on-line reporting and enquiry functions. Work also has been required to ensure the human resources package is fully integrated with the new financial system, particular in relation to leave accruals.

The human resources management and payroll system provides integrated human resource and payroll functions and has streamlined processing functions. Staff have been taking advantage of the self-service facilities, including on-line staff information access and electronic processing of certain human resource functions, such as leave taking, with the aim of reducing manual processing. A major modification was required to the system to ensure the leave accrual function was synchronized with the financial system.

The system required continued work on the realignment of financial and staff data, including refining the charts of accounts, the review and testing of the functionality of modifications to the standard system, in particular, the internal integration within the system. Further work was undertaken to ensure that the functionality of the systems were aligned with Division requirements and modifications and special reporting functions provided to better support Divisions’ work requirements. An asset module was implemented within the system, with the necessary recording of all asset movements in the assets register for 2003-2004 and 2004-2005 years.

Incorporate new requirements of International Accounting Standards in new systems and AMSA’s statutory and financial statement reporting

The Australian Accounting Standards Board (AASB) issued replacement Australian Accounting Standards to apply from 2005-2006. The new standards, Australian Equivalents to International Financial Reporting Standards (AEIFRS), were endorsed by the International Accounting Standards Board. The Finance Minster’s Orders covering preparation of Authorities’ financial statements from 2005-2006 onwards require compliance with the AASB Accounting Standards, including AEIFRS. The new standards are applied retrospectively as if the new policy has always applied, so the 2004-2005 financial statements will need to be recast to reflect the new standards.

During 2004-2005, AMSA continued to take steps in preparing for the implementation of AEIFRS in 2005-2006 through:

Identifying major differences between the current standards and AEIFRS to establish the potential areas of impact on AMSA.
Reporting to the AMSA Board on areas of potential impact to AMSA’s financial reporting and measures taken to address any issues.
Identifying and implementing changes to the new financial system to meet the AEIFRS requirements.
Continuing working party meetings to oversight plans for transition to AEIFRS, including implementation and risk management strategies.

Strengthening AMSA financial management

During 2004-2005, financial management policies and procedures were reviewed and updated to ensure AMSA’s continued compliance with external requirements. Several new financial management policies were developed and a new investment policy was implemented. There was strengthening of key financial reconciliations through the use of automated processes and continued movement to electronic payment of creditors.

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Human Resources Services

Corporate Objective 2: Provide a working environment that fosters a high level of productivity through the involvement and fair and equitable treatment of staff.

Human Resources Response: Promote a closer alignment between AMSA’s corporate objectives and its employment policies.

Priority actions during 2004-2005

Renewal of AMSA Certified Agreement to achieve closer alignment of its terms and the employment framework for staff on individual agreements

AMSA Certified Agreement 2002-2005, which was certified under section 170LK of the Workplace Relations Act 1996 in December 2002, is due to nominally expire in November 2005. In April 2005, AMSA staff were invited to provide input to the renegotiation process by nominating issues that they would like to see considered in the review of the certified agreement. AMSA identified a number of areas where it considered greater clarification of certain provisions in the current agreement would improve their operation. Staff were asked for their views on these issues. While some staff members raised a range of items, only a relatively small number related directly to specific employment conditions covered by the certified agreement.

AMSA has not proposed any major changes to the employment conditions and benefits contained in the current certified agreement. It is seeking to continue the improved alignment of employment conditions with the achievement of AMSA’s objectives through fostering greater workforce flexibility.

The formal discussions on the new agreement began in June 2005 between a consultative group representing staff and AMSA management. Officials from the Community and Public Sector Union and the Australian Institute of Marine and Power Engineers also participated. A draft agreement was distributed to the consultative group based on the current agreement with designated changes proposed by AMSA and a brief explanation of the reason for these changes. No major changes were raised in employment conditions by the meeting or in a second consultative meeting held in July. AMSA aims to conclude the negotiation process to ensure that the Australian Industrial Relations Commission can be asked to certify the new agreement prior to the nominal expiry date on 23 November 2005.

Maintain currency of AMSA’s employment framework

AMSA’s human resource management policies were further refined during 2004-2005 in consultation with senior management and staff. These supplement the terms and conditions of employment that are provided in AMSA’s employment arrangements under Australian Workplace Agreements, management contracts and the AMSA certified agreement and under relevant legislation.

New policies were issued on Diversity and Respect; Protective Disclosure (Whistle blowing); and the Use of AMSA Computers and the Computer Network. These were circulated to staff for feedback before being incorporated into AMSA’s management system.

AMSA’s industrial award, the Australian Maritime Safety Authority (Shore-Based Staff) Award 1999, was updated at a hearing before the Australian Industrial Relations Commission in May 2005 to reflect its Safety Net Review decisions. While the award’s basic conditions are effectively overridden by the superior conditions in AMSA’s Australian Workplace Agreements, contracts and certified agreement, it is used for purposes of applying the ‘no disadvantage test’ to these agreements and the certified agreement to ensure the safety net conditions are not breached.

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Business Services And Management Systems

Corporate Objective 3: Develop corporate policies and standards and information systems to enable the organisation to carry out its business using sound and cost effective management and control techniques.

Management Systems Response: Consolidation of the quality and environmental
management systems across AMSA.

Priority actions during 2004-2005

Strengthen AMSA’s certified quality and environmental management systems

Following a successful audit in September 2004, AMSA’s quality management systems achieved third-party re-certification to AS/NZS ISO9001:2000 standards for a three-year term until 2007. There were no non-conformances raised during the audit. AMSA also maintained its environmental management system at AS/NZS ISO14001:1996 standard.

During 2004-2005, activity continued to promote staff awareness of both the quality and environmental aspects of the AMSA Management System. A new AMSA-wide system of recording and dealing with Opportunities for Improvement and audit findings was instituted from 1 July 2004 and was positively received by the third-party auditor. Environmental Management Plans were largely implemented and any remaining actions rolled-over into 2005-2006. Existing business activities and processes continued to be reviewed as part of the continuous improvement approach fostered by the AMSA quality and environmental management systems.
In 2005-2006, AMSA plans to extend the management system to include occupational health and safety and will be seeking to upgrade to the new standard AS/NZS ISO 14001:2004, which was released in January 2005.

Business Services Response 1: Continuation of AMSA wide risk management program that identifies major risks and develops and implements appropriate minimisation strategies

Priority actions during 2004-2005

Continue to promote and apply a uniform risk management approach across AMSA

AMSA continued to conduct biannual reviews of its corporate risk profile involving comprehensive Division and corporate level assessments, which ensure measures are in place to respond to changes in that profile.

At the November 2004 Comcover awards for Excellence in Risk Management, AMSA was awarded first place in the Innovative Initiatives category. AMSA won the award for its fully integrated best practice risk management strategy as it is applied to AMSA’s ship inspection program. AMSA’s approach to administration of its ship inspection program is based on adoption of risk management principles and detailed statistical analysis of risk factors relating to ships visiting Australian ports to successfully target higher risk ships for inspection. The 2004 award built upon the high commendation awarded to AMSA for its best practice risk management program in Comcover’s inaugural awards in 2003.

AMSA again participated in Comcover’s annual risk management benchmarking survey in April 2005, which measures the extent to which agencies have successfully integrated risk management into their business operations. AMSA was amongst the 20 agencies audited out of the 115 Australian Government agencies taking part in the survey and received a rating of four out of a possible five stars.

Business Services Response 2: Develop and implement strategies to control fraud, promote business continuity and security.

Priority actions during 2004-2005

Implement Fraud Assessment and Control Plan

While the Australian Government Fraud Control Guidelines do not apply to agencies, like AMSA, that are governed by the Commonwealth Authorities and Companies Act 1997 and are not 50 per cent funded from the Federal Budget, AMSA seeks to comply as far as is practicable with the Government’s policy on fraud control. Accordingly, AMSA issued a revised Fraud Control Plan in May 2004 based on a comprehensive Fraud Risk Assessment completed in February 2004, which indicated that all AMSA fraud risk is being adequately managed.

During 2004-2005, AMSA has taken action to conduct training and awareness sessions for AMSA staff and to monitor and report on implementation of the plan.

Provide testing of AMSA Business Continuity Plan and implement resultant areas identified for improvement

The aim of Business Continuity Planning is to ensure the uninterrupted supply of key business resources and systems to support all of AMSA’s critical functions in the event of a disaster, with particular emphasis on search and rescue and shipping incident response operations. Following a review in 2002-2003 of AMSA’s Business Continuity Planning, a simulated exercise to test the plan at the executive level was undertaken in October 2003. Further testing involving selected Division critical functions was conducted in May and October 2004.

Administer AMSA’s protective security policies and procedures

AMSA continued to action common protective security policies, principles, standards and procedures recommended in the Commonwealth Protective Security Manual for the protection of government agencies’ staff, official information and resources.
In April 2005, the Australian National Audit Office (ANAO) presented its report on its business support process audit of the administration of security incidents including security investigations. This included a detailed audit of five government departments and agencies including AMSA. The objective of the audit was to evaluate the policies and practices of selected organisations to determine whether they had established sound arrangements for, and maintained effective control over, the administration of security incidents and investigations.

Overall, the ANAO concluded the audited entities had sound policies and practices in place to support, and maintain effective control over, the administration of security incidents and the conduct of security investigations. In particular, the audit found that most of the entities had established sound processes for capturing and recording security incidents. AMSA agreed with the audit recommendations. The audit report is available on the internet at www.anao.gov.au

Business Services Response 3: Continue to provide property management strategies and contract tendering and evaluation procedures to support AMSA’s business objectives.

Priority actions during 2004-2005

Provide effective property management services for AMSA office relocations and contract services for major tenders

During 2004-2005, a number of relocations were effectively managed for AMSA regional offices in Melbourne in July 2004, and planned for Devonport, Mackay, Karratha and Adelaide in 2005-2006.

Support was provided in the development and placing of contracts for major projects, including: contracting of the turbine-engine aircraft for dedicated search and rescue operations, design of a new drop system for pressurized aircraft involved in search and rescue operations, project design for the upgrading of AMSA’s Rescue Coordination Centre, and development of new aids to navigation projects for Gneering Shoal and Breaksea Spit.

In preparation for changes to the Australian Government Procurement Framework to meet Australia’s obligations under the Australia-United States Free Trade Agreement, which took effect from 1 January 2005, AMSA reviewed and amended its procurement procedures to reflect the changes in the Commonwealth Procurement Guidelines. Relevant staff were circulated with advice about the changed procedures and staff awareness sessions were conducted. AMSA also prepared an Annual Procurement Plan as at 1 July 2005, as required by the Guidelines, which was published on AusTender, the Government’s Electronic Tender System, and is available on the internet at www.tenders.gov.au

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