CASA's governance framework provides the context within which the organisation operates to achieve its objectives, ensuring transparent, ethical and accountable evidence-based decision-making, and effectively managing risk and key stakeholder relationships.
CASA's governance system is firmly aligned with the Civil Aviation Act 1988 and fully reflects all Commonwealth legislation and policies directly affecting CASA. The governance system incorporates CASA's governing and management arrangements; policy setting; internal and external communication; risk management and auditing arrangements; quality assurances; and appointment and management of delegates and authorised persons.
CASA was established on 6 July 1995 as an independent statutory authority by an amendment to the Civil Aviation Act.
Under section 9 of the Civil Aviation Act, CASA's primary function is to regulate the safety of civil air operations in Australia and the operation of Australian aircraft overseas.
CASA's other safety-related functions include encouraging a greater acceptance by the aviation industry of its obligation to maintain high standards of aviation safety, by providing comprehensive safety education and training programs and accurate and timely advice, and by fostering awareness of the importance of aviation safety and compliance with relevant legislation.
CASA also has the functions of cooperating with the Australian Transport Safety Bureau, implementing aspects of the Australia–New Zealand mutual recognition agreements, and administering elements of the insurance and financial arrangements required under the Civil Aviation (Carriers' Liability) Act 1959.
CASA exercises its powers under the Civil Aviation Act, and through the Civil Aviation Regulations 1988, the Civil Aviation Safety Regulations 1998, the Civil Aviation Orders and Manuals of Standards. CASA also publishes a variety of advisory and guidance materials related to air safety.
CASA has specified obligations under the Airspace Act 2007, the Transport Safety Investigation Act 2003 and the Aviation Transport Security Act 2004.
As a statutory authority, CASA's activities are governed by the Commonwealth Authorities and Companies Act 1997 (CAC Act) and by other Commonwealth legislation pertaining to freedom of information, privacy, the review of decisions, the management of records and audit.
Portfolio structure and responsible minister
CASA is a statutory authority within the Infrastructure and Transport portfolio. Throughout 2010–11, the Hon Anthony Albanese MP was the minister responsible for the portfolio.
From July to August 2010, the Minister was assisted by the then Parliamentary Secretary for Infrastructure, Transport, Regional Development and local Government, the Hon Maxine McKew MP. Since September 2010, when the portfolio was restructured, the Minister has been assisted by the Parliamentary Secretary for Infrastructure and Transport, the Hon Catherine King MP.
On 2 May 2011, the Minister for Infrastructure and Transport gave the CASA Board a notice of strategic direction under section 12A of the Civil Aviation Act. This notice was a Statement of Expectations for the Board of the Civil Aviation Safety Authority for the period from 1 July 2011 to 30 June 2013. The notice was the formal, written expression of the Minister's expectations concerning the operations and performance of CASA for a two-year period.
In response to the Statement of Expectations, the Board provided a Statement of Intent presenting its high-level expression of direction and priorities for CASA in the period to 30 June 2013. The detail relating to the Statement of Intent was fully embedded in the CASA Corporate Plan 2011–12 to 2013–14.
Under paragraph 16(1)(c) of the CAC Act, CASA must give the Finance Minister reports, documents and information on its operations as required by the Finance Minister. CASA has complied with Finance Circular 2008/05 and provided to the Finance Minister, through the Secretary of the Department of Finance and Deregulation, and to the Minister for Infrastructure and Transport, CASA's annual Compliance Report on its legislative compliance and financial sustainability.
Since July 2008, section 28 of the CAC Act has required CASA to comply with any General Policy Order made by the Finance Minister, to the extent that the order applies to CASA. No General Policy Orders that apply to CASA were made by the Finance Minister between July 2008 and 30 June 2011.
The CASA Board is established under Part VII of the Civil Aviation Act. The Board consists of the Director of Aviation Safety and four members, including the Chair and Deputy Chair.
In accordance with the Civil Aviation Act, the functions of the Board are to:
- decide CASA's objectives, strategies and policies
- ensure that CASA performs its functions in a proper, efficient and effective manner
- ensure that CASA complies with specified ministerial directions.
After consulting the Minister, the Board appoints the Director of Aviation Safety for a period of five years (subject to possible reappointment). In accordance with the policies of the Board, and subject to its general directions, the Director is responsible for overseeing the day-to-day management of CASA and ensuring that CASA performs its regulatory, safety-related and other functions in accordance with Civil Aviation Act.
Board members are appointed by the Minister, on a part-time basis for a term of three years (subject to possible reappointment). In appointing Board members the Minister must ensure that there is an appropriate balance of professional expertise, but need not ensure that particular sectors of the aviation industry are represented.
The current members of the CASA Board were appointed on 1 July 2009. Table 3 provides details of their experience and expertise.
The Board consists of the Director of Aviation Safety and four members, including the Chair and Deputy Chair.
|Note: All members were appointed to the Board on 1 July 2009.|
Dr Allan Hawke AC
Dr Allan Hawke has a Bachelor of Science (Hons) and a Doctor of Philosophy. He joined the Commonwealth Public Service in 1974 and rose through the ranks to be Secretary of the departments of Veterans' Affairs, Transport and Regional Services, and Defence.
Dr Hawke was appointed as High Commissioner to New Zealand in 2003, and in 2006 was installed as Chancellor of the Australian National University. In recognition of his outstanding contribution to public service, Dr Hawke was awarded a Fellow of the Australian Institute of Public Administration in 1998 and a Fellow of the Australian Institute of Management in 1999. In 2001 he became a Fellow of the Australian Institute of Company Directors. Also in 2001, AFR Boss magazine named him as one of Australia's top 30 true leaders.
In June 2010 Dr Hawke was made a Companion in the General Division of the Order of Australia for eminent service to public administration, particularly through the formulation and implementation of policy in the areas of transport, defence and education, and to the strengthening of bilateral relations with New Zealand.
Mr David Gray
Mr David Gray has an honorary doctorate from the Queensland University of Technology and is a member of the Australian Institute of Company Directors and a Fellow of the Royal Aeronautical Society.
|Ms Helen Gillies||
Ms Helen Gillies has a Bachelor of Commerce and a Bachelor of Laws (Hons) from the University of Queensland, a Master of Business Administration from the University of Sydney, and a Master of Construction Law from the University of Melbourne.
Ms Gillies has been practising law for 20 years and is currently Corporate Counsel and General Manager of Risk and Compliance with Sinclair Knight Merz. She won the Australian Corporate Lawyers Association award for Australian Corporate Lawyer of the Year in 2008, and has been admitted as a solicitor of the Supreme Court of Queensland, the Supreme Court of New South Wales and the Supreme Court of England and Wales.
|Mr Trevor Danos||
Mr Trevor Danos has a Bachelor of Economics and a Bachelor of Laws from the University of Sydney and is a member of the New South Wales Law Society, the Law Council of Australia and the New South Wales Society of Notaries.
Mr Danos has practised law for more than 30 years and specialises in the areas of banking and finance as well as federal and state government procurement. He is currently a Partner with Corrs Chambers Westgarth.
Mr Danos's current directorships include positions on the boards of TransGrid and the Sydney Local Health District. He is immediate past president of the Science Foundation for Physics and an honorary adviser to the Human Research Ethics Committee (University of Sydney). He is a trustee of the Cure for Life Foundation and the Adolph Basser Foundation, and a member of the Cooperative Research Centres Committee.
Mr Danos was appointed as the Chair of CASA's Board Audit Committee in February 2010.
Mr John F. McCormick
Director of Aviation Safety
Mr John F. McCormick was appointed Director of Aviation Safety on 1 March 2009. He holds a Master of Aviation Management and is a Fellow of the Royal Aeronautical Society, a Fellow of the Australian Institute of Management, and a graduate of the Australian Institute of Company Directors.
Mr McCormick began his flying career in the Royal Australian Air Force in 1974. In 1984 he joined Qantas, where he flew B747s on international operations. He joined Cathay Pacific Airways in 1987 and from 1999 to 2002 was chief pilot of Cathay Pacific's Boeing fleet. From 2002 to 2006, Mr McCormick was based in Hong Kong as General Manager Operations, a role that included responsibility for Cathay Pacific's air operators certificates and all applicable regulatory matters.
Mr McCormick has more than 10,000 hours as pilot in command, and has been a type rating examiner on the L1011, B777, B747, A330 and A340 aircraft.
Eight meetings of the CASA Board were held during the financial year, on 30 July, 27 August, 15 October and 3 December 2010, and 11 February, 25 March, 13 May and 24 June 2011. Table 4 sets out attendance at the meetings.
|Board member||Meetings eligible to attend||Meetings attended|
|Allan Hawke (Chair)||8||8|
|David Gray (Deputy Chair)||8||7|
Board Audit Committee
As required by section 32 of the CAC Act, the CASA Board appoints and maintains an Audit Committee. The committee's role is to provide independent assurance and assistance to the Board on CASA's risk framework, control framework and compliance framework and CASA's external accountability responsibilities.
The Board has appointed a Board member to chair the Audit Committee and three external experts to serve as Audit Committee members, as described in Table 6.
Five meetings of the Board Audit Committee were held during the year, on 23 August and 15 November 2010, and 21 February, 18 April and 20 June 2011. Table 5 sets out attendance at the meetings.
|Committee member||Meetings eligible to attend||Meetings attended|
|Trevor Danos (Chair)||5||5|
|Barbara Yeoh (Deputy Chair)||5||5|
Mr Trevor Danos
|Trevor Danos is a member of the CASA Board. He has practised law for more than 30 years and is currently a Partner with Corrs Chambers Westgarth. His current directorships include positions on the boards of TransGrid and the Sydney Local Health District. He is immediate past president of the Science Foundation for Physics and an honorary adviser to the Human Research Ethics Committee (University of Sydney). He is a trustee of the Cure for Life Foundation and the Adolph Basser Foundation, and a member of the Cooperative Research Centres Committee.|
Ms Barbara Yeoh
|Ms Barbara Yeoh is a principal consultant in management and financial services. Prior to the establishment of the Board Audit Committee she was Chair of CASA's Audit and Risk Committee. Ms Yeoh is currently Chair of Southern Health (Victoria), a Director of the State Emergency Service (Victoria), a member of the Lotteries and Gambling Licences Review Panel (Victoria), a member of the Commonwealth Statutory Fishing Rights Allocation Review Panel and a Principal Associate of PhillipsKPA.|
|Mr Rod Alfredson||Mr Rod Alfredson has extensive public sector experience in evaluation and audit, major technology implementation, change management and financial management. He has served in senior appointments in the Australian National Audit Office, the Department of Finance and Deregulation, and agencies in the Indigenous portfolios. He is a member of two professional accounting bodies and serves as an independent member on a number of audit committees.|
|Mr Michael Roche||Mr Michael Roche has accounting and information technology qualifications. Mr Roche has had broad public sector experience at a senior executive level, and currently chairs the Pharmaceutical Benefits Pricing Authority. He is the director of two not-for-profit companies as well as a member of a number of audit committees and governance boards.|
CASA's structure is closely aligned with the Civil Aviation Act. This ensures that resources are appropriately directed to core functions with optimal accountability and clear lines of reporting.
A number of changes were made to CASA's structure in 2010–11, to enable more effective and efficient operations.
- The Southern Region General Aviation Office and Southern Region Air Transport Office were amalgamated into a single Southern Region Operations Office.
- The Program Management Branch was created in the Office of the Director of Aviation Safety, to better oversee the governance of CASA projects. Remaining within the Office of the Director of Aviation Safety, the Foreign Agency Programs Branch was moved into the Corporate Relations Branch. The Business Change and Process functions were moved from the Information Technology Branch of the Corporate Services Division into the new Program Management Branch.
- The Sport Aviation function was moved from the Standards Development and Future Technology Division to the newly created Self Administering Sport Aviation Organisations Section in the Office of the Director of Aviation Safety.
- The Human Factors function was moved from the Safety Analysis, Education and Promotion Division to the Aviation Medicine Branch in the Industry Permissions Division.
Figure 7 (PDF 49KB) shows the elements and relationships of CASA's organisational structure at 30 June 2011.
Managers and divisions
CASA's senior management team was enhanced by the appointment of the following senior managers during the year:
- Mr Terry Farquharson was appointed as Deputy Director of Aviation Safety.
- Dr Jonathan Aleck was appointed as Associate Director of Aviation Safety.
- Mr Adam Anastasi was appointed as Chief legal Officer and Executive Manager, legal Services Division.
- Mr Brian Keech was appointed as Head of People and Performance.
- Mr Max McGregor was appointed as Manager Southern Region Operations.
- Mr Des Byfield was appointed as Manager Western Region Operations.
- Mr Gerard Campbell was appointed as Senior Manager Operations Strategy.
- Mr Mark Taylor was appointed as Manager Delegate Management.
- Mr Ross Barnes was appointed as Manager Governance Systems.
The following sections provide details of CASA's senior managers and their areas of responsibility in 2010–11.
Deputy Director of Aviation Safety
Deputy Director of Aviation Safety
Phone: 02 6217 1330
Mr Terry Farquharson joined CASA in 1999 and held a number of senior management positions prior to being appointed as Deputy Director of Aviation Safety in 2010.
He holds Bachelor of Business and Master of Business Administration degrees and is a Fellow of the Royal Aeronautical Society, a Member of the Australian Institute of Management and a Member of the Society of Experimental Test Pilots.
Mr Farquharson began flying in 1964. In 1966 he commenced a career in the Royal Australian Air Force, during which he graduated from the Empire Test Pilot School and was a qualified flying instructor on a number of training and strike aircraft. In 1979, Mr Farquharson joined Cathay Pacific Airways, where he was responsible for managing the conduct of the company's ongoing airworthiness flight test program and the acceptance and certification of flight simulators.
Mr Farquharson has held command ratings on B707, l1011, B747 and A340 aircraft. He also has experience in corporate jet operations.
The Deputy Director provides strategic support and advice to the Director of Aviation Safety across the range of CASA's activities. When required, the Deputy Director assumes responsibility for specific projects or initiatives which are managed on behalf of the Director. The Deputy Director also acts for the Director in his absences and represents CASA at government and international meetings as required.
Office of the Director of Aviation Safety
Associate Director of Aviation Safety
Phone: 02 6217 1600
Dr Jonathan Aleck joined what was then the Civil Aviation Authority as a legal officer in 1993. Since that time he has held senior management positions of increasing responsibility in legal, operational and policy roles at CASA. Prior to his appointment as Associate Director of Aviation Safety, he was Chief legal Officer and Executive Manager of the legal Services Division. Between 1998 and 2003, Dr Aleck served as Australia's Representative on the Council of the International Civil Aviation Organization.
Dr Aleck has taught in the faculties of law, politics and public policy at universities in Australia, Canada, Papua New Guinea and the united States. He also worked as an independent legal consultant and specialist advisor for many years in the united States.
Dr Aleck has a Juris Doctor degree from loyola Marymount university; a Bachelor of Arts degree in psychology and a Master of Arts degree in political science, both from the university of Oregon; and a Doctor of Philosophy in law from the Australian National university.
The role of the Office of the Director of Aviation Safety encompasses CASA's governance systems, risk management, oversight of CASA's regulatory policy, internal audit, quality assurance, strategic planning and reporting, corporate communications, corporate correspondence management, ministerial advice, foreign agency programs, international relations, and program management. It also incorporates the functions of the Industry Complaints Commissioner and the oversight of self-administering sport aviation organisations.
Working through the Program Management Branch, the office is also responsible for CASA's program management function and provides a central point of coordination between organisational strategy and program implementation, with a focus on governance and accountability, in the implementation of CASA's program of work.
Phone: 07 3144 7303
Mr Greg Hood commenced his career as an air traffic controller in the Royal Australian Air Force. His nine years in the military included postings across Australia, and he served with the Australian contingent to the Multinational Force and Observers in the Sinai Desert.
From 1990, Mr Hood spent 17 years with Airservices Australia, in roles including Manager of the Melbourne Air Traffic Control Centre, Manager National Towers and Manager Regional Services.
In 2007, Mr Hood joined CASA as Group General Manager for Personnel licensing Education and Training, prior to moving to Brisbane to lead the General Aviation Group. In 2009, he was appointed Executive Manager of the Operations Division.
Mr Hood is a glider and fixed-wing private pilot.
Operations oversights aviation operations, including flying operations, airworthiness and manufacturing. Its functions include entry control assessment, regulatory service activities, surveillance, responsibility for the flying standards of the flying training industry, and development of initiatives that make a contribution to aviation safety.
Standards Development and Future Technology
Phone: 02 6217 1534
Mr Peter Boyd has a Bachelor of Mechanical Engineering (Hons) and is a member of the Institution of Professional Engineers New Zealand. He started his professional life designing mechanical systems, then managed a mechanical and electrical testing facility.
While working for Telarc limited, New Zealand's largest management system auditing organisation, Mr Boyd fulfilled systems auditing and management roles, including the development and assessment of safety management systems, and held the position of Deputy Chief Executive Officer.
Since joining CASA in 1999, Mr Boyd has held a number of management positions, including Manager Compliance Practices and Procedures; Manager International Operations; Executive Manager CASA Improvement Program; Head of Planning and Governance; and Executive Manager Standards Development and Future Technology Division.
Standards Development and Future Technology's role encompasses the development of aviation safety standards and guidance material; the implementation of regulatory changes; the carriage of CASA's initial and continuing airworthiness functions; and the maintenance of a watching brief on future technology and regulatory trends.
Airspace and Aerodrome Regulation
Phone: 02 6217 1408
Mr Peter Cromarty has nearly 40 years experience in the aviation industry. He started his career as an area radar controller in the united Kingdom, then worked as a pilot in the united States before returning to air traffic control in the Middle East.
Following a period of work as an air traffic control instructor, Mr Cromarty occupied various roles in the regulation of air traffic services with the united Kingdom Civil Aviation Authority (uK CAA). During this period, he undertook safety-related visits to locations including the British Virgin Islands, the Cayman Islands, Finland, Ghana and Mauritius. For three years, Mr Cromarty was a senior manager at Air Safety Support International, a subsidiary of the uK CAA, where he was responsible for the creation and rollout of a complete regulatory system for the British Overseas Territories.
After joining the Civil Aviation Safety Authority in June 2007, Mr Cromarty established the Office of Airspace Regulation and took over responsibility for the Airways and Aerodromes Branch to create the Airspace and Aerodrome Regulation Division.
Airspace and Aerodrome Regulation is responsible for the regulation of Australian-administered airspace. The Division is also responsible for certification and oversight of providers of communication, navigation, surveillance and air traffic management services; oversight of instrument approach development and certification; and registration and oversight of aerodromes.
Safety Analysis, Education and Promotion
Phone: 07 3144 7305
Mr Mark Sinclair began his aircraft engineering career in the Royal Australian Air Force. His deployments included service in the Middle East.
Between 1988 and 1995 he was a licensed Aircraft Maintenance Engineer working on general aviation aircraft and large regular public transport aircraft flying with international carriers. During the period between 1995 and 2003, Mr Sinclair moved into senior engineering management positions with Hazelton Airlines, including that of Airline Maintenance Controller, then joined General Electric Aircraft Engines.
From 2003 to 2008, Mr Sinclair worked for Virgin Blue (now Virgin Australia) in various senior engineering management roles including Head of Aircraft Airworthiness and Maintenance Control and airline Maintenance Controller, before joining CASA as Group General Manager Airworthiness Engineering Group. In 2009, Mr Sinclair was appointed Executive Manager of the Safety Analysis, Education and Promotion Division.
Safety Analysis, Education and Promotion aims to encourage a greater acceptance by industry of its safety-related obligations, and to foster awareness in industry and the wider community of the importance of aviation safety and compliance with the civil aviation legislation.
The Division is responsible for reviewing and analysing data and providing advice and recommendations in relation to the safety performance of the Australian aviation industry. It uses a range of professional communications and marketing approaches to develop and deliver safety promotion campaigns and products. The Division is also responsible for the provision of regulatory and technical training for CASA and industry, as well as professional development for CASA staff.
Phone: 07 3144 7345
Mr Peter Fereday has been a quality management practitioner since the early 1990s, when he developed and maintained quality management systems for two government business enterprises and CASA, each of which achieved and maintained third-party certification.
From 1998 to 2000, Mr Fereday led and participated in large national audits at CASA with the Quality and Internal Audit Branch. He joined the service centre establishment project in late 2000 and managed the development of the CASA Workflow Management System, which received multiple awards, including the Microsoft Global Award for best use of workflow in 2001.
Mr Fereday has been Manager of the CASA Service Centre, and was seconded in May 2009 to participate in the CASA realignment and change program which resulted in the introduction of the new CASA organisational structure in July 2009. He is Chairman of the Aerospace Industry Management Systems Network.
Industry Permissions is responsible for the delivery, management, tracking and monitoring of aviation certificates, licences, registrations and permits. The Division offers one entry point for regulatory services through the Permission Application Centre. This centre processes applications, provides information to applicants, and receives payments.
The Division also provides advice and support to delegates and authorised persons in the aviation industry and is responsible for the administration of medical standards applicable to licence holders and for the implementation and maintenance of drug and alcohol management plans.
Chief Legal Officer and Executive Manager
Phone: 02 6217 1040
Mr Adam Anastasi holds a Master of laws degree from the university of Sydney, and was admitted as a Solicitor of the Supreme Court of New South Wales in 1992.
Prior to joining CASA, he worked as a solicitor for the Australian Government Solicitor, the Australian Federal Police, the Australian Capital Territory Government Solicitor and the New South Wales Crown Solicitor's Office.
Mr Anastasi joined CASA in 2000 and was the Manager legal Branch from 2005 to 2010. In 2011, he was appointed Executive Manager of the legal Services Division.
Legal Services provides legal advice on a broad range of issues to CASA officers and managers, and maintains oversight and control of CASA's relations with all external legal service providers.
The Division is also responsible for managing CASA's enforcement strategies and practices; conducting CASA's involvement in Administrative Appeals Tribunal proceedings, Federal Court proceedings, coronial inquiries and other legal proceedings; and overseeing CASA's obligations under the Freedom of Information Act 1982 and the Privacy Act 1988. It also drafts Civil Aviation Orders and other legislative and legal instruments, ensuring that they comply with applicable requirements.
Phone: 02 6217 1255
Mr Gary Harbor has a Bachelor of Arts, a Bachelor of Economics and a Master of Business Administration.
Mr Harbor has an extensive private sector background in human resources management. He has been a personnel manager for Toyota; General Manager Human Resources for Email Metals; and Head of Human Resources for the pharmaceutical firm Sigma Company.
Mr Harbor joined CASA in 2005 and was Head of Human Resources until 2009, when he was appointed Executive Manager of the Corporate Services Division.
Corporate Services undertakes the corporate support functions that enable operational divisions to function efficiently and effectively. This includes managing finance, human resources and information technology.
The Division's Finance office is responsible for the full range of financial management and procurement services in CASA, as well as property, security and asset management functions. The People and Performance Branch develops and implements staff and industrial relations policies, including conditions of service, payroll, occupational health and safety, and equity and diversity. The Information Technology Branch provides appropriate information and communications technology solutions to CASA and is responsible for knowledge and information management activities across the organisation.
Note: Mr Harbor left CASA in September 2011.
CASA systematically identifies and analyses a wide range of issues and risks to ensure that all decisions made are well informed and evidence based and contribute to its vision of Safe skies for all.
All aviation activity involves a degree of risk, and it is critical that CASA understands the nature and full dimensions of the risks it oversees. In undertaking its regulatory function, CASA faces a variety of possible risks, such as the failure to detect breaches of safety and maintenance standards; incorrect or inconsistent application of regulatory standards; and failure to properly carry out statutory responsibilities. The identification and management of risk, in conjunction with other management functions, is integral to achieving CASA's corporate goals.
CASA manages its risks in accordance with current best practice and adheres to the principles outlined in the Australian and New Zealand International Standards Organisation Risk Management—Principles and Guidelines (AS/NZS ISO31000:2009).
During 2010–11, CASA's fully integrated business and risk management planning processes were enhanced to ensure the ongoing effectiveness of the existing practices. Risk management training modules were incorporated into CASA's annual training calendar and delivered to all divisions as required. Detailed risk workshops were conducted throughout the year, across a wide range of issues, ensuring that any subsequent decisions were fully informed and supported by clear evidence and a strong risk-based methodology.
A continuing focus on risk, and a clear understanding and increasing application of risk management principles and practices throughout the organisation, have enabled CASA to deliver:
- more effective strategic and business planning
- better cost control
- systematic and thorough decision-making
- openness and transparency in decision-making
- increased identification of opportunities
- greater knowledge and understanding of risk exposures
- more proactive responses to identified risks
- full compliance with relevant legislation and statutory obligations.
CASA continued to utilise the Comcover Risk Management Benchmarking Program's annual survey as an independent measure of its risk management practices and a means to identify areas to target for further improvement. For 2010–11, CASA was awarded a rating of 8.8 out of 10. This was an increase from the score of 8.4 achieved in 2009–10 and resulted in a 9 per cent discount on CASA's insurance premium for 2010–11. This reaffirmed CASA's approach and continued the trend of a steady and continual improvement in risk management practices in CASA. It also maintained the organisation's position as one of the highest performing Commonwealth agencies with respect to risk management.
In 2011–12 there will be ongoing consolidation of existing better practices and targeted enhancements in the areas of risk management identified in the Comcover benchmarking survey. This is expected to include a further roll-out of specific risk management training modules; an expanded quality assurance capability incorporated into the risk management and internal audit functional area; an increased integration of risk management principles and practices into project management; and fully updated business continuity plans in all CASA offices.
Internal audit arrangements
CASA continued its arrangement of outsourcing internal audit service provision to external audit providers. The Risk Management and Quality Assurance Section within the Governance Systems Branch continued to develop, coordinate and oversight the services.
In 2010–11, prior to the completion of the existing internal audit service provision contract, an external review was undertaken of the outsourced internal audit model used by CASA. The review endorsed the model. A full tender process was subsequently conducted, and a new contract for the provision of internal audit services commenced with three external audit organisations. The audit function has continued to benefit from the expertise and independence of auditors external to CASA.
The main emphasis of the internal audit program in 2010–11 was to target CASA's key operational and business risk exposures. Business and risk management plans from CASA's divisions, strategic risk workshops, and individual interviews with senior executives, internal and external auditors, and members of the Board Audit Committee and the Board were used to identify priorities and inform the ongoing CASA-wide internal audit program.
A number of initiatives were implemented to ensure that audit recommendations were acted on appropriately and in a timely manner; this resulted in a significant reduction in the number of outstanding audit recommendations. A program to monitor the implementation of audit recommendations, including post-audit implementation reviews conducted internally and externally, continued to work well. It was backed by the maintenance of a comprehensive database for the collation, monitoring and review of all audit information.
The internal audit reviews completed during 2010–11 addressed CASA's core operational and business functions, processes and systems. Seventeen audits were completed during the year, namely:
- CASA website server
- CASA exit processes
- Compliance with statutory obligations
- Operations Enhancement Program
- Service Point Program
- Occupational health and safety review
- Cost recovery practices
- Credit card review
- Audit processes for CASA regulatory review of Airservices Australia
- Review of post-audit implementation
- Email server system
- Field office compliance
- Enforcement procedures
- Aviation medicine
- Sport aviation business process review
- Aviation Security Identification Card (ASIC) contract performance review
- upgrade/Replace Existing Systems (uRES) Project Expenditure review.
For 2011–12 the internal audit function has scheduled 18 audits which will address operational and business risks and key control systems, and maintain the rolling compliance audit program. Given the significance and size of major projects being undertaken in 2011–12, the internal audit function will closely monitor the control processes in place for these projects.
CASA employs a number of measures to facilitate probity of practice. These include:
- a confidential third-party protected disclosure arrangement
- a well-publicised code of conduct
- a robust fraud control process.
CASA has internal and external protected disclosure (whistleblower) arrangements to enable confidential reporting of fraud and matters relating to organisational corruption.
During 2010–11, one matter was raised via the external protected disclosure arrangements, but was not sustained by the evidence. One anonymous external allegation of fraudulent activity by CASA employees was received through another channel; this matter was referred for an external investigation, which reported no significant findings to support the allegation.
Code of conduct
All CASA staff must comply with a comprehensive code of conduct as a condition of their employment or engagement. The CASA Code of Conduct reflects the values and behaviours expected of CASA employees at any time when they are at work or otherwise representing CASA.
CASA implements its Fraud Control Framework both to support effective governance and to reduce the risk of exposure to the potential for fraudulent activities.
In 2010–11, there were no fraud matters that required referral to external authorities. There were no proven matters relating to fraudulent activities.
Conflict of interest
To assist employees to better understand their interaction with industry, a definitive conflict of interest policy is available to guide all CASA employees and contractors. The policy recognises that, while many CASA professionals have longstanding personal links within the industry, it is important that those interactions be managed to reduce the risk that CASA's activities could be compromised by allegations or the perception of bias.
There were no unresolved conflicts of interest in 2010–11.