Dear Minister

Part 3: management accountability

Chapter 3.1 – Assisting our clients

Service Charter

The ILC’s Service Charter sets out the standards of service the ILC strives to provide its clients through program delivery, policy development, communication and consultation. The Service Charter document is publicly available on the ILC’s website or by contacting any ILC Office.

Client Services and Complaints Handling

The Complaints Handling System encompasses internal processes, structure and timeframes within which staff must respond to complaints.

Both the Service Charter and Complaints Handling Procedure encourage resolution of complaints at the local office level, but provide for the referral of complaints to the Director of Policy and Program Development where necessary. In 2010–11, the ILC received no external complaints through the Complaints Handling System.

Information for Stakeholders

The ILC distributed information regarding its policies and programs including:

• Messages from the Chairperson on the ILC website;

• Advertisements in the Koori Mail, National Indigenous Times, National Indigenous Radio Service and National Indigenous Television Service network broadcasters;

• Print campaign with posters, brochures and letters sent to regional bodies, applicant groups, Indigenous Coordination Centres and Indigenous Land Councils;

• Information packs sent to partner agencies, organisations and Native Title Representative Bodies; and

• Program handbooks and policy documents published on the ILC website.

The ILC’s website (www.ilc.gov.au), provides strategic and corporate information about the ILC, its activities, programs and projects. Program documentation, handbooks, application forms and various ILC publications are available for download and contact details for ILC offices are provided on the website. Resources available in 2010–11 on the website included:

• National Indigenous Land Strategy – 2007–2012

• Regional Indigenous Land Strategies (for each State and territory)

• Portfolio Budget Statement – ILC

• ILC Corporate Plan 2008–2010

• Call for Applications – Land Acquisition. (Socio-Economic Development) Handbook

• Call for Applications – Land Acquisition (Socio Economic Development) Application Form

• Socio Economic Development, Terms of Reference – Business Plan

• Land Acquisition (Cultural and Environmental Heritage Protection) Handbook

• Land Acquisition (Cultural and Environmental Heritage Protection) Application Form

• Call for Applications – Land Management Handbook

• Call for Applications – Land Management Application Form

• Call for Applications (Property-based Projects) Application Form

• Call for Applications (Training and Planning) Application Form

• Land Management, Terms of Reference 
– Property Plan

• Land Management, Terms of Reference 
– Business Plan

• Land Acquisition Activity (Map)

• ILC Agricultural Businesses Strategic Plan 
2007–2012

• Standard Deed of Grant template

• ILC Service Charter

• Annual Report 2009–2010

• Annual Report 2008–2009

• Annual Report 2007–2008

• Annual Report 2006–2007

• Annual Report 2005–2006

• Annual Report 2004–2005

• Annual Report 2003–2004

• Annual Report 2002–2003

• Annual Report 2001–2002

• Annual Report 2000–2001

Consultation and working with stakeholders

Recognising the importance of consultation, the ILC has embedded consultative processes into all of its activities and programs. The ILC meets with a broad range of stakeholders, including potential applicant groups, landholders, Indigenous groups, service providers and Indigenous agencies. A full list of the meetings conducted or attended by ILC staff in 2010–11, is presented in Appendix 7. Calls for land acquisition and land management assistance are advertised through a range of media, including on-line, Indigenous print and Indigenous television, in addition to flyers and posters distributed to potential applicants during stakeholder meetings and distributed through key co-ordination agencies.

Client Satisfaction Surveys

During assessment of land acquisition and land management applications for 2010–11, 19 applicant groups participated in a client satisfaction telephone survey. Nine randomly chosen applicant groups were surveyed in the Land Management Program and 10 groups were surveyed in the Land Acquisition Program.

The surveys were conducted following the call for applications for both programs to obtain feedback on both the application process and advice provided by ILC staff. Applicants were not aware of the outcome of their applications when surveyed.

Results indicated that applicants were generally satisfied with the application process. ILC staff were rated very informative and helpful. Information was generally accessible and user-friendly. Comments and recommendations were noted, including:

• The inability of many groups to provide the required financial information;

• That the application process could be simpler and/or faster, perhaps by having a two-staged process (e.g. seek an expression of interest before requesting supporting information) or assessing some criteria in the field;

• Holding more face-to-face meetings to discuss applications and inform other groups about the ILC’s programs;

• Providing more feedback before and during the application process;

• Making the application form simpler and easier to complete; and

• Clarifying the relevant information being presented on the ILC’s website.

Comments obtained from these surveys will be incorporated, where appropriate, into the 2012 call for applications.

Chapter 3.2 – 
Corporate Accountability

Objective

A responsive, efficient and effective organisation.

Performance Management and Improvement

The ILC conducts planning, risk management, evaluation, audit and reporting activities to manage its performance. Frameworks describe how these activities address key issues and questions, including:

• What are our priorities and how do we achieve them?

• What are our targets and what progress have we made towards them?

• What are our key corporate risks and how do we manage them?

• What are our achievements and strategies to improve our performance?

As shown below, activities are implemented to manage and improve performance at three levels: corporately, within programs and within projects.

Strategic and Operational Planning

The ILC’s planning framework aligns operational activities, resource decisions and organisational performance with the strategic direction and policies set by the NILS 2007–2012. The NILS, Corporate Plan and Annual Corporate Priorities, operational plans and business and project plans, guide the implementation of specific activities. They describe how the ILC will achieve its vision of Indigenous people achieving sustainable economic, environmental, social and cultural benefits through owning and managing land.

Risk Management

Effective risk management enables the achievement of objectives and provides opportunities for improvement and innovation. It requires an integrated approach through the establishment of a Risk Management Framework that promotes the identification and management of risk and prudent risk taking based on sound judgement.

The ILC’s commitment to effective risk management is communicated in key corporate documents, such as the Corporate Plan and Priorities; NILS; and Annual Reports and it is implemented through a Risk Management Framework and Corporate Risk Management Plan.

The ILC’s Risk Management Framework is revised annually, having regard to the Australian and New Zealand Risk Management Standard AS/NZS ISO 31000:2010 Risk Management – Principles and Guidelines, and Australian Government Best Practice Guides.

The Risk Management Framework embeds effective risk management in day-to-day operations by:

• Integration of risk management strategies into all functions;

• Development of appropriate risk identification, analysis, treatment and monitoring procedures;

• Identifying, assessing and pursuing opportunities that are of benefit to ILC clients and achieving goals;

• Training and involving staff in risk identification and management;

• Developing appropriate mechanisms to identify and treat risks including transference or sharing; and

• Sharing risk management knowledge and skills with ILC clients whenever possible

The identification, assessment, treatment and monitoring of risks affecting the ILC and our clients occurs at three levels:

• Corporate Risks are those associated with carrying out the statutory functions of the ILC. Identification and sound management of risk ensures the ILC will meet its corporate and statutory objectives. The Board-endorsed Corporate Risk Management Plan is the ILC’s primary risk policy document. The Corporate Management Team (CMT) reviews risks at least annually and monitors treatments monthly through reporting against corporate priorities;

• Program or System Risks are those risks associated with the specific ILC functions. They are identified, assessed and treated via program-level risk management plans or by embedding risk treatments into user guides and tools (e.g. Land Acquisition and Land Management program application and assessment user guides, Commercial Business Risk Management and Treatment Plans and on Fraud Control and Awareness guide); and

• Project Risks are those associated with individual land acquisition, land management, employment and training or strategic projects. Each project is required to have risks identified and assessed, and a treatment plan devised at the outset, which is mandatory to achieve Board or delegate project approval.

The ILC promotes a culture that responsibility for risk management is everybody’s business – from the ILC Board through to staff.

The Audit and Risk Management Committee (ARMC) oversees the ILC’s Risk Management Program with implementation through the Risk Management Steering Committee (RMSC). The independent ARMC member Ian Ferrier chairs the RMSC. Membership includes five CMT members representing all ILC functions and activities (Divisional offices, businesses, policy, legal and finance).

Corporate Risk Management Plan

The Corporate Risk Management Plan is the ILC’s primary risk management policy document and is endorsed by the Board.

The plan is reviewed and revised annually by the CMT consideration to changes in the external environment, the nature of projects being undertaken and lessons learned from evaluation and operational audits. The key risks identified in the plan are addressed through treatment strategies that evaluate the strength of existing controls, identify measures to reduce the likelihood and/or consequences of risks occurring and specify responsibility and timelines for implementation.

Agreed treatments requiring action are then integrated into operational plans with progress on implementation reported through the CMT and monitored by the RMSC.

Operational (Internal) Audit Program

The ARMC manages, monitors and evaluates the Operational Audit Program. A three-year program is determined from the identification of significant areas of operational and financial risk including identified key corporate, program and project risks. This annually reviewed program provides for the systematic coverage of the ILC’s functions and activities under a rolling program. Audits are can be compliance or performance focussed and cover corporate functions, program or specific projects.

The ILC currently outsources the operational audit function to KPMG.

The following audits were completed in 2010–11:

• Fraud Risk Management;

• IT Documentation;

• Roebuck Export Depot;

• Crocodile and Welcome Stations; and

• Land Acquisition and Land Management Processes.

All recommendations, from the operational audit program or by external review agencies, are recorded and monitored in a Risk/Compliance Register. The ARMC, RMSC, General Manager and CMT regularly receive reports on the status and implementation of audit recommendations to ensure that the ILC fully addresses any risk, compliance or other identified issue.

The ARMC conducts an in-depth audit of at least one ILC business annually, recognising the risks associated with the operation of commercial businesses generally.

Evaluation Framework

The ILC’s Evaluation Framework 2011–12 guides the corporate, program and project evaluation activities. The framework was revised in 2010–11 to reference the ILC’s revised Benefit Framework. It describes how the ILC measures and monitors its performance to inform the improvement of our processes and programs.

In 2010–11, internal reviews were completed for the Land Acquisition and Land Management Programs and commenced for post-grant monitoring activities. Additionally, an external evaluation was completed for the ILC’s Training-To-Employment Initiative.

Land Acquisition and Land Management Programs

An audit of the Land Acquisition and Land Management Programs examined the effectiveness and efficiency of the application and assessment processes. The recommendations made were incorporated in the 2011 application round, including

• A switch of the due dates for the two programs to allow land management applications more time for implementation before the northern Australian wet season, and provide more time for groups to develop land acquisition applications; and

• Faster assessment of small land management applications, especially those seeking less than $80,000.

The audit concluded that the ILC’s processes are consistent with the ANAO Best Practice Guide Implementing Better Grants Administration and Commonwealth Government Grant Guidelines.

Post-grant monitoring activities

A review of the ILC’s post-grant monitoring activities in the Land Acquisition Program commenced in 2010–11. The review is currently examining:

• Monitoring activities conducted in 2010–11;

• Key findings of monitoring activities; and

• The degree to which risks associated with granting properties are mitigated by the monitoring regime.

A report on the review’s findings and recommendations will be presented to the ARMC in 2011–12.

Project evaluations

The Training-To-Employment Initiative was evaluated in 2010–11. Additionally, an evaluation of the Goori House and Goori Halfway House land acquisition projects was finalised and provided to the Australian Government’s Closing the Gap Clearinghouse in 2010–11.

The evaluations combined quantitative and qualitative methods to investigate questions around effectiveness, efficiency and impact of the projects. The ILC continues to develop its qualitative evaluation methodologies, including incorporating visual elicitation with the most significant change technique to better understand the experiences of beneficiaries of projects.

Benefits Framework

The ILC’s Benefits Framework describes how the ILC plans, measures and reports on the benefits (outcomes) it achieves for Indigenous people. The framework seeks to ensure that the collection and use of benefits data is accurate and consistent within the ILC. The framework is aligned with indicators for the Australian Government’s Overcoming Indigenous Disadvantage and Closing the Gap initiatives (see Figure 6).

The ILC defines benefits as long-term improvements in Indigenous wellbeing. In the short to medium term, the ILC uses priority outcomes and progress indicators (see Figure 3, page 22) to measure the benefits achieved by all ILC-funded projects. For annual reporting purposes, benefits achieved as a result of the Land Acquisition Program are collected for three years after a property’s acquisition where substantial funds have been spent by the ILC, benefits may be measured over a longer period of time. Benefits achieved as a result of the Land Management Program are collected for the duration of the project.

In 2010–11, the Benefits Framework was revised 
to better define the measures used, and to align the reporting of benefits more strongly with financial 
year periods.

Figure 6: Alignment of the ILC’s Benefits Framework with the Outcome Reporting Frameworks Used by the Australian Government’s Overcoming Indigenous Disadvantage and Closing the Gap Initiatives

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Overcoming Indigenous disadvantage framework

Australian governments are collectively committed to overcoming disadvantage experienced by Indigenous Australians

Priority outcomes

Safe, healthy and supportive family environments with strong communities and cultural identity

Positive child development and prevention of violence, crime and self harm

Improved wealth creation and economic sustainability for individuals, families and communities

• 
  COAG targets & Headline indicators
  
• 
  Strategic Areas for Action/COAG Building Block
  
• 
  Strategic Change Indicators
  
• 
  Measures
  

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ILC benefit framework

Deliver economic, environmental, social and cultural benefits to Indigenous people through land acquisition and land management
ILC Priority outcomes

Access to and protection of cultural & environmental values

Socio-economic development

Access to Education

• 
  Progress Indicators
  
• 
  Measures
  

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Processes and Procedures

The ILC maintains the following user guides, and their associated tools and templates, to guide ILC staff in the delivery of its programs:

• Land Acquisition (assessment to acquisition)

• Land Acquisition (landholding to grant)

• Land Acquisition (post-grant)

• Land Management

• Capital Works

Each user guide includes tools, templates and risk identification and treatment processes. Additionally, there are guidelines, user guides and manuals that cover corporate processes including travel, purchasing, contract management, fraud management, records management, complaints handling and the use of IT resources.

General Policies of the Australian Government

The ILC must comply with any General Policy Order to the extent that it applies to the ILC. 
A general policy of the Australian Government can be implemented under section 48A of the CAC Act, which requires the responsible Minister to consult with directors of Commonwealth authorities. General polices of the Australian Government that applied to the ILC during the year are set out in Table 16.

Table 16: General Policies of the Australian Government Applicable to the ILC 2010–11

Policy	Effective From	Exemption Sought	Compliance during the reporting period
Australian Government Branding	31 December 2003	Yes, but denied	Yes
National Code of Practice for the Construction Industry	3 October 2003	No	Yes
Foreign Exchange Risk Management	22 July 2005	No	Yes
Cost Recovery by Australian Government Agencies	22 July 2005	No	Yes
Australian Government Property Ownership Framework	1 July 2005	Yes	The ILC has not been formally advised that the framework applies to it.
Fraud Control Guidelines	March 2011	No	The ILC has not been formally advised that the framework applies to it

Fraud Control and Awareness Program

The ILC maintains a rigorous Fraud Control and Awareness Program to minimise the risk of fraud 
and to deal with allegations of fraud should they 
arise. The General Manager certifies that the organisation complies with the Commonwealth fraud control guidelines.

During the reporting period, an independent external audit was carried out in relation to the ILC’s Fraud Control and Awareness Program. The audit identified no extreme, high or moderate risks. The audit identified five low risks and made recommendations. The recommendations have been accepted and implemented.

During the reporting period:

• Allegations of fraud relating to a former employee of an ILC subsidiary company (and arising from a previous reporting period) resulted in a prosecution being commenced by the Commonwealth Director of Public Prosecutions;

• An internal investigation of fraud against an employee of an ILC subsidiary company (and arising from a previous reporting period) was completed. It found that there was no adequate evidence to sustain the allegation; and

• An internal investigation commenced into allegations of inappropriate conduct arising from the delivery by an external service provider of training programs. It was unclear by the conclusion of the reporting period if any element of fraud was involved in the matter.

Participation in Forums and Submissions

Each year, the ILC participates in forums and responds to requests for submissions to parliamentary and other inquiries regarding topics relevant to Indigenous people and the work of the ILC.

The Chairperson attended forums for the following organisations or events in 2010–11:

• UN Permanent Forum on Indigenous Issues (held in New York);

• Remote Employment Services Panel;

• McArthur River Mine Community Benefits Trust;

• Tourism Quality Council of Australia;

• National Indigenous Land & Sea Management Conference;

• Garma Festival;

• Tourism Ministers Council; and

• 2011 WA Premier’s Awards – Improving Indigenous Outcomes.

The ILC made four submissions:

• Indigenous Economic Development Strategy – Draft for Consultation and Action Plan 2010–2012 (a framework for Indigenous economic development, submitted to the Indigenous Economic Development Branch, FaHCSIA);

• Design of the Carbon Farming Initiative (a consultation paper outlining the Department of Climate Change and Energy Efficiency initiative);

• Senate Legal and Constitutional Affairs Legislation Committee Inquiry into the Families, Housing, Community Services and Indigenous Affairs (Budget and Other Measures) Bill 2010 – Schedule 4 (a bill seeking to amend the functions of the ILC, with particular reference to allowing the ILC to support native title settlements); and

• House of Representatives Standing Committee on Economics Inquiry into Indigenous Economic Development in Queensland and Review of the Wild Rivers (Environmental Management) Bill 2010 (a bill relating to the management of river systems on Cape York Peninsula). The General Manager also appeared before this Committee to give evidence on behalf of the ILC.

Goori House and Goori Halfway House Evaluation

In suburban Brisbane, Goori House and Goori Halfway House provide an acute 12-week drug and alcohol rehabilitation program, and six-month transition to employment programs. They provide a stepping stone to life without substance abuse, involving teaching life skills, accredited training programs and a positive, supportive environment.

Goori House and Goori Halfway House were acquired by the ILC and granted in 2008 and 2009 (respectively) to the Indigenous organisation Goori Original Ltd. The ILC recently conducted an evaluation of these properties, to examine the extent to which Indigenous outcomes and benefits had been achieved through ILC funding.

In 2010-11, this evaluation was finalised and provided to the Australian Government’s Closing the Gap Clearinghouse, a repository of evidence-based research on overcoming disadvantage for Indigenous people.