1. Welcome to CIT Solutions Diploma of Government (Financial Services)

2. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Before we start  Emergency procedures  Facilities  Mobile phones  Keep safe and comfortable  Phone (on silent).  Emergency procedures  Facilities  Mobile phones  Keep safe and comfortable  Phone (on silent).

3. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Promoting compliance with legislation, policy and procedures Learning outcomes  By the end of today’s session learners will be able to: – Promote compliance with legislation – Model compliance with legislation – Encourage and assist others to comply with legislation. Learning outcomes  By the end of today’s session learners will be able to: – Promote compliance with legislation – Model compliance with legislation – Encourage and assist others to comply with legislation.

4. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Review of promoting values and ethics  In your groups, discuss the ideas or concepts you can recall from last week  Note down the points  Group Activity – Complete GAA 3 Procedural fairness and natural justice.  In your groups, discuss the ideas or concepts you can recall from last week  Note down the points  Group Activity – Complete GAA 3 Procedural fairness and natural justice.

5. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Today’s discussion points… 1. The Australian System of Government 2. The Australian Constitution 3. How laws are made 4. Nature of legislation affecting APS staff 5. Promoting compliance (incl. standard model) 6. Monitoring compliance 7. Dealing with non-compliance. 1. The Australian System of Government 2. The Australian Constitution 3. How laws are made 4. Nature of legislation affecting APS staff 5. Promoting compliance (incl. standard model) 6. Monitoring compliance 7. Dealing with non-compliance.

6. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 The Australian System of Government http://www.peo.gov.au/multimedia/videos/about-parliament-what-is-parliament.html

7. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 The Australian Constitution Commonwealth’s exclusive powers contained in Section 51 Commonwealth of Australia Constitution Act, 9 July 1900 (UK), pp. 10–11.

8. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Legislative compliance  Adverse effects of non-compliance – Penalties – Adverse publicity.  Benefits to your organisation of compliance – Enhanced public image – Better internal morale and staff calibre – Reduced risk of breaching in the future.  Adverse effects of non-compliance – Penalties – Adverse publicity.  Benefits to your organisation of compliance – Enhanced public image – Better internal morale and staff calibre – Reduced risk of breaching in the future.

9. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 APS specific  For the rest of today, we will look at: – Legislation that affects APS staff – Promoting compliance through your work practices – Standard model for managing compliance – Monitoring compliance – Dealing with non-compliance.  For the rest of today, we will look at: – Legislation that affects APS staff – Promoting compliance through your work practices – Standard model for managing compliance – Monitoring compliance – Dealing with non-compliance.

10. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 APS specific  In summary, achieving compliance with legislation is an important management and leadership function. It will be enhanced by: – Commitment from senior management – Comprehensive induction program – Coaching, training, other regular awareness programs – Development of manuals, policies, procedures, guidelines – Concentration on particular areas of compliance – Auditing and evaluation of compliance.  In summary, achieving compliance with legislation is an important management and leadership function. It will be enhanced by: – Commitment from senior management – Comprehensive induction program – Coaching, training, other regular awareness programs – Development of manuals, policies, procedures, guidelines – Concentration on particular areas of compliance – Auditing and evaluation of compliance.

11. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 APS specific  Which pieces of legislation do you need to comply with?  Refer to pages 35-36 of your workbook for a list of legislation.  Which pieces of legislation do you need to comply with?  Refer to pages 35-36 of your workbook for a list of legislation.

12. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Types of legislation  Generalist and enabling legislation…  Primary and Subordinate legislation – what’s the difference?  Where do you find Acts and subordinate legislation?  Prescriptive and non-prescriptive legislative compliance.  Generalist and enabling legislation…  Primary and Subordinate legislation – what’s the difference?  Where do you find Acts and subordinate legislation?  Prescriptive and non-prescriptive legislative compliance.

13. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Group Activity  Refer to the list of legislation in your Workbook pages 36-36 and PIPS pages 78 & 81  Complete GAA 4 Question 1 on legislation that is particularly relevant in your workplace.  Refer to the list of legislation in your Workbook pages 36-36 and PIPS pages 78 & 81  Complete GAA 4 Question 1 on legislation that is particularly relevant in your workplace.

14. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Non-legislative guidelines  What other guidelines and standards are you required to comply with? – Service standards – Professional standards – Codes of Practice.  Entity Guidance  Guidance and advice from central entities.  What other guidelines and standards are you required to comply with? – Service standards – Professional standards – Codes of Practice.  Entity Guidance  Guidance and advice from central entities.

15. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Ensuring compliance  Does your Department implement, manage and maintain an effective compliance program to meet its legislative, regulatory, policy and contractual obligations?  Compliance frameworks usually built on a combination of approaches: – Rules-based enforcement (clear, unambiguous directions) – Staff-based education and awareness to encourage understanding and willingness to comply (‘buy-in’).  Does your Department implement, manage and maintain an effective compliance program to meet its legislative, regulatory, policy and contractual obligations?  Compliance frameworks usually built on a combination of approaches: – Rules-based enforcement (clear, unambiguous directions) – Staff-based education and awareness to encourage understanding and willingness to comply (‘buy-in’).

16. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Attributes of a good compliance program  Read pages 42-43 of your Workbook to see a list of attributes of a good compliance program  In your group, discuss if you can think of any additional attributes which are not listed  Discuss which of the attributes listed do you think have the most impact on increasing compliance?  Read pages 42-43 of your Workbook to see a list of attributes of a good compliance program  In your group, discuss if you can think of any additional attributes which are not listed  Discuss which of the attributes listed do you think have the most impact on increasing compliance?

17. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 ATO Compliance Model Folders, pg. 43 The LHS identifies the wide variety of factors that can influence the extent to which a taxpayer chooses or is able to meet their obligations. The RHS reflects the different taxpayer attitudes to compliance, and the corresponding high level strategies that are most likely to effectively address those attitudes.

18. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 NZ Dept. of Internal Affairs Folders, pg. 44

19. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Compliance and governance  Compliance strategies form an important part of your Department’s governance practices and procedures  Public sector governance covers: ‘ … the set of responsibilities and practices, policies and procedures, exercised by an [entity’s] executive, to provide strategic direction, ensure objectives are achieved, manage risks and use resources responsibly and with accountability.‘  Good governance is all about performance and conformance  Complete GAA 4 – Questions 2 & 3 on Compliance.  Compliance strategies form an important part of your Department’s governance practices and procedures  Public sector governance covers: ‘ … the set of responsibilities and practices, policies and procedures, exercised by an [entity’s] executive, to provide strategic direction, ensure objectives are achieved, manage risks and use resources responsibly and with accountability.‘  Good governance is all about performance and conformance  Complete GAA 4 – Questions 2 & 3 on Compliance.

20. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Requirements  For an effective compliance strategy include: – Commitment by senior management – Comprehensive (& continuing) education/training – Evaluation systems and procedures for: Identifying & preventing possible contraventions Accountability for compliance functions Active supervision of staff Dealing with non-compliance Inquiries and/or complaints from the public.  For an effective compliance strategy include: – Commitment by senior management – Comprehensive (& continuing) education/training – Evaluation systems and procedures for: Identifying & preventing possible contraventions Accountability for compliance functions Active supervision of staff Dealing with non-compliance Inquiries and/or complaints from the public.

21. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Privacy Act and Principles  Commonwealth government entities must comply with the 13 Australian Privacy Principles contained in Schedule 1 of the Privacy Act 1998  The principles were introduced when amendments to the Privacy Act 1998 came into effect in March 2014.  Commonwealth government entities must comply with the 13 Australian Privacy Principles contained in Schedule 1 of the Privacy Act 1998  The principles were introduced when amendments to the Privacy Act 1998 came into effect in March 2014.

22. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Privacy Principles  The APPs cover the collection, use, disclosure and storage of personal information. They allow individuals to access their personal information and have it corrected if it is incorrect.

23. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Privacy Principles  There are also separate APPs that deal with the use and disclosure of personal information for the purpose of direct marketing (APP 7), cross-border disclosure of personal information (APP 8) and the adoption, use and disclosure of government related identifiers (APP 9).

24. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Privacy case study  Read the Case study on pages 45 & 46 in your Workbook and in your Groups identify what are the privacy issues in the case study.

25. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Improving your knowledge of legislation  In order to ensure you are complying with legislation, you need to be aware of the relevant legislation for your area/work.  You can do this by: – researching or downloading relevant legislation and Legislative Instruments from COMLAW – examining your entity website to find information on entity specific legislation.  In order to ensure you are complying with legislation, you need to be aware of the relevant legislation for your area/work.  You can do this by: – researching or downloading relevant legislation and Legislative Instruments from COMLAW – examining your entity website to find information on entity specific legislation.

26. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Improving your knowledge of legislation  You can do this by: – examining your Annual Reports to identify how the entity has complied with legislation – seeking advice from your entity’s legal area and/or HR area on legislative compliance and education / awareness programs.  You can do this by: – examining your Annual Reports to identify how the entity has complied with legislation – seeking advice from your entity’s legal area and/or HR area on legislative compliance and education / awareness programs.

27. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Group Activity  Please complete Group Activity GAA 5 – Questions 1, 2 & 3 on Privacy Principles.

28. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Management practices  Your personal leadership, understanding and personal practice of compliance measures is vital!  Your staff are likely to model their behaviours and actions on what they see you do.  Your personal leadership, understanding and personal practice of compliance measures is vital!  Your staff are likely to model their behaviours and actions on what they see you do.

29. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Management practices  Do you… – Maintain key documents (at hand) with relevant sections highlighted, updating changes as required? – Regularly review your intranet and internet site for updates or news on legislation/guidelines? – Peruse your entity’s Annual Report, specifically those areas detailing compliance matters?  Do you… – Maintain key documents (at hand) with relevant sections highlighted, updating changes as required? – Regularly review your intranet and internet site for updates or news on legislation/guidelines? – Peruse your entity’s Annual Report, specifically those areas detailing compliance matters?

30. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Management practices  Do you… – Review other websites for advice or updates? – Keep updated with your entity’s enabling legislation? – Establish contacts within your entity that can provide support, guidance and advice? – Attend relevant training sessions?  Do you… – Review other websites for advice or updates? – Keep updated with your entity’s enabling legislation? – Establish contacts within your entity that can provide support, guidance and advice? – Attend relevant training sessions?

31. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Responding to staff compliance issues  Taken seriously, and managed having regard to procedural fairness  Treat everyone with respect  Privacy and principles of procedural fairness must be applied  Ensure you fully understand the nature of the inquiry  Irrespective of reason, you should document their enquiry (Note: natural justice and procedural fairness must be adhered to if allegations raised.)  Taken seriously, and managed having regard to procedural fairness  Treat everyone with respect  Privacy and principles of procedural fairness must be applied  Ensure you fully understand the nature of the inquiry  Irrespective of reason, you should document their enquiry (Note: natural justice and procedural fairness must be adhered to if allegations raised.)

32. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Compliance programs  Australian Standard AS 3806-2006 Compliance programs describes 3 main elements: (pg. 77) – Structural Elements – Operational Elements – Maintenance Elements  A necessary part of risk management program.  Australian Standard AS 3806-2006 Compliance programs describes 3 main elements: (pg. 77) – Structural Elements – Operational Elements – Maintenance Elements  A necessary part of risk management program.

33. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Consequences of non-compliance 1. May bring the individual and/or APS into disrepute 2. If it concerns non-compliance with an entity’s enabling legislation, then it may result in serious organisational and business consequences 3. May impact upon inter-entity relationships. 1. May bring the individual and/or APS into disrepute 2. If it concerns non-compliance with an entity’s enabling legislation, then it may result in serious organisational and business consequences 3. May impact upon inter-entity relationships.

34. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Non-compliance  Consequences of non-compliance may include: – Disciplinary actions, reprimands, fines – Transfer (re-assignment of duties) – Demotion – Dismissal – Legal liability.  Each individual case will be decided upon its own circumstances. Formal/Informal measures  APS – Section 15 Public Service Act.  Consequences of non-compliance may include: – Disciplinary actions, reprimands, fines – Transfer (re-assignment of duties) – Demotion – Dismissal – Legal liability.  Each individual case will be decided upon its own circumstances. Formal/Informal measures  APS – Section 15 Public Service Act.

35. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Group Activity  Group Activity GAA 5, Part 2, Question 1 on “Non-Compliance”.

36. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Ongoing monitoring  Why? Compliance with legislation is not a one-off activity. Sound risk management  Legislation itself is dynamic.  Principles of compliance monitoring: – Clearly articulate reasons for monitoring and communicate these to all staff – Build it into your existing management processes – Consistent approach – Document your procedures.  Why? Compliance with legislation is not a one-off activity. Sound risk management  Legislation itself is dynamic.  Principles of compliance monitoring: – Clearly articulate reasons for monitoring and communicate these to all staff – Build it into your existing management processes – Consistent approach – Document your procedures.

37. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Document compliance procedures  Make use of compliance manuals, SMEs  Schedule reviews of… – staff – checklists in use – audit findings – best practice.  Make use of compliance manuals, SMEs  Schedule reviews of… – staff – checklists in use – audit findings – best practice.

38. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 External referrals  You may need to seek assistance from external bodies to resolve (non) compliance issues – Significant deficiency in your entity is revealed (or emerging) – Specific legal advice – Issue beyond the authority or capacity of management to resolve – Non-compliance is serious enough to have potential for criminal disciplinary action.  If/when in doubt, seek advice.  You may need to seek assistance from external bodies to resolve (non) compliance issues – Significant deficiency in your entity is revealed (or emerging) – Specific legal advice – Issue beyond the authority or capacity of management to resolve – Non-compliance is serious enough to have potential for criminal disciplinary action.  If/when in doubt, seek advice.

39. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Addressing compliance deficiencies  Key responsibility in promoting compliance is to respond quickly!

40. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016 Any questions?  Do you have any more questions…?  ELA 1 – Procedural Fairness – Case Study  Next week: “Undertake research and analysis”.  Do you have any more questions…?  ELA 1 – Procedural Fairness – Case Study  Next week: “Undertake research and analysis”.

41. © CIT Solutions Pty Ltd 2014 © CIT Solutions Pty Ltd 2016