4. Our Governance
Introduction
The CSC Board aspires to best practice and to be a leader in governance policy and practice. Our Board’s governance framework includes the following policies (most of which are also available on our website):
Following are the details of CSC’s regulatory requirements, our approach to financial management, risk management and our compliance program. Also outlined are the fraud control and internal audit measures CSC has put in place.
Our regulatory requirements
CSC was established under the Governance of Australian Government Superannuation Schemes Act 2011 (GAGSS Act) and is responsible for the super schemes covered in this report. Our objectives and functions, as set out in CSC’s governing legislation, are here . Our governing legislation establishes accountability arrangements for CSC, including annual reporting to Parliament and tabling of audited financial statements.
CSC holds both a Registrable Superannuation Entity (RSE) licence and an Australian Financial Services (AFS) licence, which means we are regulated by the Australian Prudential Regulation Authority under the Superannuation Industry (Supervision) Act 1993 and the Australian Securities and Investments Commission under the Corporations Act 2001. CSC must uphold the conditions of both licences and comply with financial services law.
CSC is also bound by provisions of the various acts and deeds that establish and govern our individual schemes. Our regulated schemes must be managed and invested in accordance with the CSS Act, the PSS Act, the MilitarySuper Act, the PSSap Act, and the ADF Super Act, together with the relevant trust deeds under these Acts.
Our unregulated schemes are established by and must be administered in accordance with the 1922 Act, the DFRB Act, the DFRDB Act, the PNG Act, and the ADF Cover Act, as relevant.
Our financial management
CSC’s finances are managed in accordance with the PGPA Act, our governing legislation and relevant scheme legislation. A Board-approved budget is in place and the Board has delegated its authority to individual staff to make and implement certain financial decisions.
Our risk management
Our Risk Management Strategy sets out CSC’s risk management principles, our risk management framework and the underlying components and processes we use to identify, assess and mitigate risks.
Our Risk Appetite Statement describes the level of risk CSC is prepared to take on to achieve our objectives. The Risk Appetite Statement and Risk Management Strategy meet APRA’s requirements under Prudential Standard SPS 220 and both are reviewed at least annually and updated as required.
Our compliance program
A detailed compliance program underpins CSC’s Risk Management Strategy, satisfying the requirements of our RSE and AFS licences. Staff and service providers must regularly certify that they comply with all relevant legislative requirements, contractual provisions, regulatory policy and service standards, as well as any relevant licence conditions. Any instance of non-compliance must be reported.
CSC’s Audit Committee oversees compliance reporting, including remediation if a breach has occurred. CSC has a Breach and Compliance Policy that describes how to report such breaches and this policy is distributed to our service providers.
Fraud control
Strategies to manage the risks of fraud and corruption are set out in CSC’s Fraud Control and Corruption Plan. The plan is reviewed annually and updated as required.
Internal audit
Audits to address changes to business priorities or to CSC’s risk profile can be initiated at any time by either the Board or the Audit Committee. The Audit Committee’s annual internal audit plan takes into account previously identified risks, the results and recommendations of previous internal and external audits, legislative and regulatory changes and requirements, and anticipated business changes.
