NDIA Accountability Project

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NDIA Conflict of Interest – Integrity Framework

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FOI 20/21-0857 DOCUMENT 1

NDIA Conflict of Interest – Integrity Framework

Focussing on the internal Agency environment for Conflict of Interest and viewing this through the lens of ‘Employees’, the following depicts the controls and mechanisms that are in place to provide assurance that we are managing risk, protecting our brand, and maintaining government and public confidence in Scheme integrity.

Employee types covered by the Integrity Framework are Agency Staff, Contractors and Consultants.

The NDIA External facing “Principles for managing conflict of interest in delivering support and services for the National Disability Insurance Scheme” provides the set of overarching principles specifically for partners, providers and local area co-ordinators.

Table of Contents

  • NDIA Integrity Framework (Employee) ………………………………………………………………………………………… 1
    • Assurance mechanisms…………………………………………………………………………………………………………. 2
  • Hierarchy of Agency assurance mechanisms ……………………………………………………………………………….. 3
    • Legislative …………………………………………………………………………………………………………………………… 3
      • Policy………………………………………………………………………………………………………………………………….. 3
    • Procedures ………………………………………………………………………………………………………………………….. 4 * Monitoring & Reporting ………………………………………………………………………………………………………….. 5 * Training & Support ………………………………………………………………………………………………………………… 5
  • Scenarios ……………………………………………………………………………………………………………………………….. 5
    • Scenario 1: employee as participant ………………………………………………………………………………………… 5
    • Scenario 2: contractor / consultant ………………………………………………………………………………………….. 7
    • Scenario 3: executive secondment ………………………………………………………………………………………….. 8

NDIA Integrity Framework (Employee)

An Integrity Framework is a systemic and comprehensive management approach where it brings together legislative, policy, procedural, monitoring and reporting, as well as training and support for fostering integrity and preventing corruption in public organisations.

This framework covers the following employee types:

  • Agency staff
  • Contractors
  • Consultants

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Assurance mechanisms

  1. Legislative The legislative assurance mechanism includes:
  • NDIS Act 2013
  • Crimes Act 1984
  • PGPA Act 2013 Sections 26-29
  • Public Interest Disclosure Act 2013
  • Public Service Act 1999
  • APS Code of Conduct
  • APS Values
  1. Policy The policy assurance mechanism includes:
  • NDIA Conflict of Interest Policy – external
  • APSC Policy Conflict of Interest
  • NDIA Recruitment Policy
  • NDIA Conflict of Interest Policy – internal
  • NDIA Values
  • NDIA Enterprise Agreement 2020-2023
  • NDIA Conditions of Contract
  • APS Employment Principles
  1. Procedures The procedures assurance mechanism includes:
  • Conflict of Interest Declaration - Board members monthly
  • Conflict of Interest Declaration – NDIA employees, contractors and consultants
  • Code of Conduct procedures
  • Restricted Access for employees as participants, family members, Board members (Task card)
  • Commonwealth Procurement Guidelines & Contract management policy
  1. Monitoring & Reporting The monitoring and reporting assurance mechanism includes:
  • State of the Service report – Code of Conduct
  • External Audit programs, e.g. ANAO
  • Ministerial & Complaint Management
  • Fraud/Risk Management Framework
  • Internal Audit Program
  1. Training & Support The training and support assurance mechanism includes:
  • Conflict of Interest fact sheet
  • Ongoing fraud & awareness training (face to face & e-learning)
  • Restricted Access Task Card and Quick Reference Guide
  • Induction training includes Conflict of Interest
  • Employee Mandatory Annual Online training in APS Values, Code of Conduct, Fraud, Security and Information Handing

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Recruitment/On-boarding training

Hierarchy of Agency assurance mechanisms

Legislative

Public Service Act 1999 (PS Act) Code of Conduct Section 13(7) of the PS Act - the APS Code of Conduct, requires that an APS employee must:

  • take reasonable steps to avoid any conflict of interest (real or apparent) in connection with the employee’s APS employment
  • disclose details of any material personal interest of the employee in connection with the employee’s APS employment
  • not improperly use inside information or the employee’s duties, status, power or authority:
    • to gain, or seek to gain, a benefit or an advantage for the employee or any other person;
    • to cause, or seek to cause, detriment to the employee’s Agency, the Commonwealth or any other person

Public Governance, Performance and Accountability Act 2013 (PGPA Act)

Sections 26 to 29 of the PGPA require (This also applies to Board members)

  • An official of a Commonwealth entity must exercise his or her powers, perform his or her functions and discharge his or her duties in good faith and for a proper purpose.

  • A person who obtains information because they are an official of a Commonwealth entity must not improperly use the information to: a) gain an advantage for himself or herself or any other person; or b) cause detriment to the Commonwealth entity, the Commonwealth or any other person

  • Duty to disclose interests - An official of a Commonwealth entity who has a material personal interest that relates to the affairs of the entity must disclose details of the interest.

PS Act 1999 and APS Values

Section 10 of the PS Act lists the APS Values

  • Committed to Service - The APS is professional, objective, innovative and efficient, and works collaboratively to achieve the best results for the Australian community and the Government.
  • Ethical - The APS demonstrates leadership, is trustworthy, and acts with integrity, in all that it does.
  • Respectful - The APS respects all people, including their rights and their heritage.
  • Accountable and Impartial -The APS is open and accountable to the Australian community under the law and within the framework of Ministerial responsibility.
  • Impartial - The APS is apolitical and provides the Government with advice that is frank, honest, timely and based on the best available evidence.

Policy

NDIA Values

  • Assurance
  • Empowerment
  • Responsibility

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FOI 20/21-0857

 Learning  Integrity

NDIA Policies

 APSC Policy – APS Values and Code of Conduct in Practice – Section 5 Conflict of Interest  APS Employment Principles

 NDIA Recruitment Policy – Provides guidance to selection panel members on Conflict of Interest

 Conflict of Interest Policy Internal – Applies to employees, SES employees, Board Members –

 Conflict of Interest Policy External – Cover External providers including LAC partners

 NDIA Enterprise Agreement 2020-2023

Procedures

Public Service Act 1999 (PS Act) Code of Conduct

 Conflict of Interest Declaration Form – Internal Employees

 Conflict of Interest Declaration Form - Board Members

 The Fact Sheet details advice for managing Conflicts of Interest

Code of Conduct Procedures

 As per Section 15(3) of the PS Act, the CEO has established procedures for determining breaches of the Code of Conduct in line with the APS Commissioner’s Direction.

 Under Section 78 (7) of the Public Service Act, the CEO has delegated his powers for determining breaches of the Code of Conduct as per the HR delegations Instrument.

Restricted Access

 An additional levels of privacy protection of a client record known as restricted access (RA). These additional protections may be invoked at any time during the participant pathway, and may be requested by the participant (e.g. an employee), their representative or following a recommendation by the Agency.

 The Agency has issued procedures for employees to follow through Restricted Access Task Card and Quick Reference Guide.

NDIA Conditions of Contract

Standard contract form (Complex Services) includes Clause 8.15. Conflict of Interest

 8.15.1. The Contractor warrants that, to the best of its knowledge after making diligent inquiries at the Contract Commencement Date, no Conflict of Interest exists or is likely to arise in the performance of its obligations under the Contract by itself or by any of its Personnel. The Contractor must notify the Agency in writing immediately if such a Conflict of Interest arises, or appears likely to arise.

 8.15.2. Within five Business Days after giving notice under clause 8.15.1, the Contractor must notify the Agency in writing of the steps it will take to resolve the issue. If the Agency considers those steps are inadequate, it may direct the Contractor to resolve the issue in a manner proposed by the Agency.

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 8.15.3. If the Contractor fails to notify the Agency in accordance with clauses 8.15.1 or 8.15.2, or is unable or unwilling to resolve the issue in the required manner, the Agency may terminate the Contract in accordance with clause 12.3.

Employees of the Contractor complete the Confidentiality Declarations for NDIA and DHS and Entry level check form

Monitoring & Reporting

Ministerial and Complaint Handling

NDIA has a Complaints and Feedback Policy July 2016 which outlines procedures for complaints relating to the work of the Agency or sourced partners including LAC’s. These include complaints made via Ombudsman; MP/ Ministerial Correspondence; Complaint to CEO, Board, Executive; Sensitive / Complex Complaints; Allegations of breaches of Code of Conduct; Media; Public Interest Disclosure matters.

Fraud/Risk Management Framework

 Strategic and operational risk reporting into relevant governance bodies: ARFC, EMG, Board  The Agency has a Fraud Control Policy and Plan which outline response to potential breaches including: detection, triage, assessment Investigation, remediation and resolution, recovery and reporting

Training & Support

Learning Modules and Guidance Materials

 Recruitment and On-boarding training for employees and contracted recruitment providers undertaking the recruitment process.  Induction program includes Conflict of Interest  Manger Fact Sheet Conflict of Interest – provides guidance and examples for managers/employees  Restricted access Task Card and Quick Reference Guide  Annual Mandatory training courses for employees available online in the following areas: - Fraud Awareness - Security Awareness - APS, Employment Principles and Code of Conduct - Information Handling and the NDIA

Scenarios

NDIA has a high number of employees identified as a person with disability; as well as having a high percentage of employees with a lived-experience, this creates a unique level of risk around conflict of interest. To provide an appropriate level of confidence for the Board that employees of the Agency are able to identify, resolve or manage internal conflicts of interest, specific scenarios unique to NDIA staff have been provided to illustrate how these are managed within this NDIA Integrity Framework.

Scenario 1: employee as participant

The employee as a participant of NDIA may be seen to be making improper use government policy information, delegation and government files.

The following details which assurance mechanisms apply and do not apply in scenario 1.

Legislative

All legislative assurance mechanisms apply in scenario 1:

  • NDIS Act 2013
  • Crimes Act 1984
  • PGPA Act 2013 Sections 26-29
  • Public Interest Disclosure Act 2013
  • Public Service Act 1999
  • APS Code of Conduct
  • APS Values

Policy

The following policy assurance mechanisms apply in scenario 1:

  • APSC Policy Conflict of Interest
  • NDIA Recruitment Policy
  • NDIA Conflict of Interest Policy – internal
  • NDIA Values
  • NDIA Enterprise Agreement 2020-2023
  • APS Employment Principles

The following policy assurance mechanisms do not apply in scenario 1:

  • NDIA Conflict of Interest Policy – external
  • NDIA Conditions of Contract

Procedures

The following procedures assurance mechanisms apply in scenario 1:

  • Conflict of Interest Declaration – NDIA employees, contractors and consultants
  • Code of Conduct procedures
  • Restricted Access for employees as participants, family members, Board members (Task card)

The following procedures assurance mechanisms do not apply in scenario 1:

  • Conflict of Interest Declaration - Board members monthly
  • Commonwealth Procurement Guidelines & Contract management policy

Monitoring & Reporting

All monitoring and reporting assurance mechanisms apply in scenario 1:

  • State of the Service report – Code of Conduct
  • External Audit programs, e.g. ANAO
  • Ministerial & Complaint Management
  • Fraud/Risk Management Framework
  • Internal Audit Program

Training & Support

All training and support assurance mechanisms apply in scenario 1:

  • Conflict of Interest fact sheet
  • Ongoing fraud & awareness training (face to face & e-learning)

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Scenario 2: contractor / consultant

Contract / Consultant engaged due to expert experience of disability, such as in service or support provision. Could be seen as having unduly influenced decisions made by the NDIA in relation to the entity.

The following details which assurance mechanisms apply and do not apply in scenario 2.

1. Legislative

The following legislative assurance mechanisms apply in scenario 2:

  • Crimes Act 1984
  • Public Interest Disclosure Act 2013

The following legislative assurance mechanisms do not apply in scenario 2:

  • NDIS Act 2013
  • PGPA Act 2013 Sections 26-29
  • Public Service Act 1999
  • APS Code of Conduct
  • APS Values

2. Policy

The following policy assurance mechanisms apply in scenario 2:

  • NDIA Conflict of Interest Policy – external
  • NDIA Conditions of Contract
  • NDIA Values

The following policy assurance mechanisms do not apply in scenario 2:

  • APSC Policy Conflict of Interest
  • NDIA Recruitment Policy
  • NDIA Conflict of Interest Policy – internal
  • NDIA Enterprise Agreement 2020-2023
  • APS Employment Principles

3. Procedures

The following procedures assurance mechanisms apply in scenario 2:

  • Conflict of Interest Declaration - Board members monthly
  • Code of Conduct procedures
  • Restricted Access for employees as participants, family members, Board members (Task card)

The following procedures assurance mechanisms do not apply in scenario 2:

  • Commonwealth Procurement Guidelines & Contract management policy
  • Conflict of Interest Declaration – NDIA employees, contractors and consultants

4. Monitoring & Reporting

All monitoring and reporting assurance mechanisms apply in scenario 2:

  • State of the Service report – Code of Conduct
  • External Audit programs, e.g. ANAO
  • Ministerial & Complaint Management
  • Fraud/Risk Management Framework
  • Internal Audit Program

5. Training & Support

The following training and support assurance mechanisms apply in scenario 2:

  • Conflict of Interest fact sheet
  • Ongoing fraud & awareness training (face to face & e-learning)
  • Restricted Access Task Card and Quick Reference Guide
  • Induction training includes Conflict of Interest

The following training and support assurance mechanisms do not apply in scenario 2:

  • Employee Mandatory Annual Online training in APS Values, Code of Conduct, Fraud, Security and Information Handing
  • Recruitment/On-boarding training

Scenario 3: executive secondment

Senior Executive from a Disability Services Agency or Group who is placed on secondment with NDIA as part of the Executive Placement Program, may be seen as unduly influencing decisions made by the NDIA in relation the Disability Services Agency or Sector.

The following details which assurance mechanisms apply and do not apply in scenario 3.

1. Legislative

All legislative assurance mechanisms apply in scenario 3:

  • Crimes Act 1984
  • Public Interest Disclosure Act 2013
  • NDIS Act 2013
  • PGPA Act 2013 Sections 26-29
  • Public Service Act 1999
  • APS Code of Conduct
  • APS Values

2. Policy

The following policy assurance mechanisms apply in scenario 3:

  • APSC Policy Conflict of Interest
  • NDIA Conditions of Contract
  • APS Employment Principles
  • NDIA Conflict of Interest Policy – internal
  • NDIA Values

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The following policy assurance mechanisms do not apply in scenario 3:

  • NDIA Conflict of Interest Policy – external
  • NDIA Recruitment Policy
  • NDIA Enterprise Agreement 2020-2023

3. Procedures

The following procedures assurance mechanisms apply in scenario 3:

  • Code of Conduct procedures
  • Restricted Access for employees as participants, family members, Board members (Task card)
  • Commonwealth Procurement Guidelines & Contract management policy
  • Conflict of Interest Declaration – NDIA employees, contractors and consultants

The following procedures assurance mechanisms do not apply in scenario 3:

  • Conflict of Interest Declaration - Board members monthly

4. Monitoring & Reporting

All monitoring and reporting assurance mechanisms apply in scenario 3:

  • State of the Service report – Code of Conduct
  • External Audit programs, e.g. ANAO
  • Ministerial & Complaint Management
  • Fraud/Risk Management Framework
  • Internal Audit Program

5. Training & Support

The following training and support assurance mechanisms apply in scenario 3:

  • Conflict of Interest fact sheet
  • Ongoing fraud & awareness training (face to face & e-learning)
  • Restricted Access Task Card and Quick Reference Guide
  • Induction training includes Conflict of Interest
  • Employee Mandatory Annual Online training in APS Values, Code of Conduct, Fraud, Security and Information Handing

The following training and support assurance mechanisms do not apply in scenario 3:

  • Recruitment/On-boarding training