Risk Management and Insurance Activities

Audit and Risk Committee

In accordance with TPP 20-08 Internal Audit and Risk Management Policy for the General Government Sector, the WPCA established its own Audit and Risk Committee (ARC) on 24 September 2019. During the reporting period, six ARC meetings were held, on the following dates:

• 20 July 2021 (financial);
• 30 September 2021;
• 15 November 2021;
• 28 February 2022;
• 22 April 2022 (financial, early close); and
• 16 June 2022.

The current ARC Charter (that aligns with the Internal Audit and Risk Management Policy for the General Government Sector’s model ARC Charter) was endorsed by the ARC at its 17 May 2021 meeting, and approved by the Board. The WPCA's Accountable Authority is required to provide an annual statement attesting to compliance with the seven core requirements of TPP 20-08 Internal Audit and Risk Management Policy for the General Government Sector. This is provided at Appendix A.

Internal Audit

The WPCA's outsourced internal audit service provider undertook five audits during the reporting period:

• Work Health and Safety Management Review;
• Land Acquisition and Holding Process Review;
• Delegations and Conflict of Interests Review follow-up;
• Key Financial Controls Health Check Review; and
• Capitalisation Procedures Review.

A three-year Strategic Internal Audit Plan for the 2022–2024 financial years was approved by the Board on 5 October 2021. An updated plan for the expanded WPCA for the 2023 –2025 financial years was approved by the Board on 28 June 2022. Internal audit recommendations for actioning by the appropriate subject owner are reported to the ARC on a quarterly basis.

Risk Management

The WPCA reviewed its Risk Management Framework, Risk Appetite Statement, and related risk tolerances during the reporting period to reflect its expanded remit. The Board approved the updated Risk Appetite Statement at its December 2021 meeting.

The Governance, Audit and Risk team is responsible for embedding risk management in the WPCA through training staff and assisting with the identification, analysis, and development of risk management and mitigations of strategic, operational, and project risks.

During the course of the year, the WPCA reviewed its enterprise, operational and project risks. Any changes to the risk profile or ratings are reported to the ARC on a quarterly basis.

A risk eLearning training module will be developed early in the new financial year and will form part of WPCA’s mandatory compliance training program.

Insurance

Insurance coverage was provided by the Treasury Managed Fund (TMF). The WPCA’s effective management of risk resulted in no insurance claims being made with TMF.

Work, health and safety

To comply with the Work Health and Safety Act 2011, WPCA has established a Work Health and Safety (WHS) Committee to ensure workers' health and safety at work is optimum, and to assist in developing standards, rules, and procedures relating to health and safety that are to be followed in our workplace. The WHS Committee had four meetings during the reporting period.

All staff receive an office WHS induction when onboarding, which is both face to face and through an eLearning module. Two office-based WHS inspections were also completed, with all identified hazards being resolved.

The WPCA has established several volunteer roles to support WHS and our staff's psychosocial wellbeing. These include mental health first aid officers, emergency wardens and first aid officers. The WPCA also has volunteer Health and Safety Representatives who support the WPCA and its workers under sections 68 and 69 of the Work Health and Safety Act 2011.

During the reporting period, the WPCA undertook an assessment of our psychosocial risks and their associated controls, and developed a psychosocial wellbeing program and working group.

With the beginning of the construction phase for the Bradfield City Centre, the WPCA has developed and implemented a Bradfield City Centre WHS project plan, site WHS risk register, and online WHS inductions for staff, visitors and construction workers. We have also developed policies and procedures to ensure the ongoing safety of personnel accessing the site and when construction works are being carried out on the land. In addition, 13 WHS audits of construction activities were completed during the reporting period.

Claims and reports

There were three incidents with minor injury reported. Compensation claims as at 30 June 2022

Accidents and incidents reported

* The ’Other’ category includes a range of general accidents and incidents that cannot be readily defined by the preceding identified cause types. Examples include minor near misses, reports by external visitors, and other undefined general incidents or illnesses.

Fraud and corruption control management

The WPCA’s Fraud and Corruption Control Framework was revised to align with the AS8001-2021 Fraud and Corruption Control standard and to comply with the TC18-02 NSW Fraud and Corruption Control Policy. The Framework was approved by the Board at its 8 February 2022 meeting. The Fraud Risk Register, associated controls, and the supporting Fraud and Corruption Control Plan were also reviewed and updated during the reporting period and approved by the Board at its 8 February 2022 meeting. There were no allegations of fraud or corrupt conduct at WPCA during the reporting period.

Business continuity planning

During the reporting period, the WPCA reviewed and updated its Pandemic Plan, as well as its Emergency and Crisis Management Manual.

In addition, the business units’ business impact assessments and existing business continuity plans were reviewed and updated. A new program of review and the training of teams will start early in the new financial year.