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A/1.1 QUT Governance Framework |
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1.1.1 Background 1.1.1 BackgroundQUT recognises its social responsibility, as an institute of higher education and a public entity, to make a positive contribution to the community through its activities. Council, as the governing body of the University, has responsibility to ensure good governance consistent with the National Governance Protocols for Higher Education Providers issued by the Australian Government and best practice governance principles for the public sector. Australian Standard 8000-2003 Corporate Governance provides the following definition: Corporate governance generally refers to the processes by which organisations are directed, controlled and held to account. It encompasses authority, accountability, stewardship, leadership, direction and control exercised in the organisation . The governance framework clarifies how the structures, policies and practices of the University are integrated, and the respective roles of Council and management. It provides the foundation for the effective discharge of responsibilities and demonstrates QUT's commitment to good governance. 1.1.2 QUT Governance FrameworkA number of key elements or principles are commonly regarded as consistent with good corporate governance including the following:
The governance framework at QUT can be described diagrammatically as set out below. Click here to view the QUT Governance Framework diagram. 1.1.3 Queensland University of Technology Act 1998QUT is a statutory authority in the State of Queensland , established by an Act of the Queensland Parliament. The Queensland University of Technology Act 1998 (the QUT Act ) establishes QUT as a body corporate, which has a seal and may sue and be sued in its corporate name. This Act also describes QUT's functions and powers, its governance by QUT Council and its rights and obligations in relation to property, gifts and finances. The QUT Act provides that Council may make University statutes on specified topics such as the admission and enrolment of students, the entitlement to degrees, and student discipline. A University statute is subordinate legislation and so has binding force. Once made, statutes must be published in the Government Gazette and then tabled in Parliament. QUT statutes are published in Appendix 1(b) . The Act also authorises Council to make rules under a University statute. Rules made under a statute take effect once they are made and promulgated by Council. University rules are published in Appendix 1(c) . 1.1.4 Role of QUT CouncilQUT Council is the governing body of the University, ultimately responsible for ensuring its proper and effective management and operation. The structure, composition and membership of Council accords with government protocols, and the University's committee system and procedures comply with better practice principles. Council has approved nomination, induction and professional development processes for Council members, separation of Chancellor and Vice-Chancellor roles, procedures for the conduct of Council and committee meetings, guidelines to assist members to exercise their duties in a manner consistent with the University's Code of Conduct, and processes for review of overall and individual member performance and effectiveness. A Council Charter provides members with information on Council member roles and responsibilities, ethical conduct incorporating the QUT Corporate Governance Guidelines and operational procedures. Council prepares the foundations for management and oversight of the University through input into the development and approval of the strategic direction and policies of the University. It approves policies and procedures which underpin the University's ethical behaviour and compliance with its obligations. It reviews and monitors the performance both of the University and controlled entities, and reports to government. 1.1.5 External ObligationsQUT is subject to a variety of legislation enacted by the Queensland and Commonwealth Parliaments, and is committed to complying with all relevant legislation and obligations through its compliance policy (see MOPP A/1.3). QUT has obligations under more than 100 Acts of Parliament, government accountability frameworks, regulations, codes of practice, and standards which are captured in the Register of Compliance Obligations. The external environment is complex, encompassing obligations of major significance to the Council and management in exercising due diligence over the operations of the University. Many legislative requirements such as equity, copyright, and health and safety, have become the subject of separate policy statements because of their impact on QUT's activities. QUT is an exempt public authority under the Corporations Act 2001. However its controlled entities may meet the definition of proprietary companies bound by the Act. The Commonwealth funds QUT under the Higher Education Support Act 2003 . As an institution in the Unified National System, QUT is funded primarily on the basis of information it provides to the Commonwealth. For further information see the FRP website (Institution Assessment Framework).1.1.6 Internal programs, policies and processesThe internal structures within which governance operates are Council and its committees, and the Vice-Chancellor and his/her advisory committees. Council also adopts policies and procedures to guide staff and students in carrying out their responsibilities and activities. Staff and students are obliged to work within these policies and procedures. These policies are published in the online Manual of Policies and Procedures (MOPP) which articulates most internal policies and the delegations, authorities and reporting responsibilities of staff . Clear operational instructions and guidance derived from the policies and procedures are normally found on the websites of the divisions and faculties. Council has delegated some authority for policy approval to certain University committees or officers (see MOPP Appendix 3). a) Corporate values (social responsibility and ethics) QUT is committed to the highest quality in teaching, learning, research and a wide range of professional and community activities. QUT values:
Underpinning QUT's organisational values (MOPP A/2.1.2) is a Code of Conduct (MOPP B/8.1) designed to assist each member of the University, including members of Council, in discharging the obligation to act ethically and to observe the highest standards of behaviour. The Public Sector Ethics Act 1994 (Qld) , on which the Code of Conduct is based, declares five 'ethics principles' as the basis for good public administration. These are
Council is committed to equal opportunity and to freedom from all forms of discrimination against staff and students. The QUT Reconciliation Statement (MOPP A/8.3 ) recognises the particular responsibility of educational institutions to redress disadvantage and to overcome prejudice and commits QUT to sustainable reconciliation between Indigenous (Aboriginal and Torres Strait Islander peoples) and non-Indigenous Australian people. QUT is committed to undertaking its commercial operations in an ethically and socially accountable manner to enhance its reputation as a good corporate citizen (MOPP D/1.1.1). This commitment is guided by the University's Business Case Framework and commercialisation policies. b) Strategic planning Strategic planning is undertaken to direct the attainment of the University's vision and goals as outlined in the institutional plan, the QUT Blueprint . The Planning Framework sets out a process of rolling five-year plans, reviewed and reported upon annually. It incorporates development of cascading layers of plans (institutional, top level functions, division and faculty plans and some functional activities, and individual staff performance plans), annual budgets, reporting on outcomes, devolution of responsibility and continuous improvement. Council approves the University's plans and budget, and monitors performance against them with assistance from its Planning and Resources Committee and Audit and Risk Management Committee, and senior executives responsible for the plans. The QUT Quality Framework (MOPP A/2.4 ) articulates key components of QUT business and how quality assurance and continuous improvement mechanisms facilitate the achievement of strategic goals and priorities articulated in institutional and top level plans. A comprehensive evaluation of the efficiency and effectiveness of the strategic planning processes of operational units and the appropriateness of the results achieved is conducted regularly through the University's corporate review system (MOPP A/2.3). c) Compliance and control The QUT Register of Compliance Obligations (see Compliance Policy - MOPP A/1.3) contains all known external obligations under laws, regulations, codes or organisational standards including the QUT Act, its statutes and rules. The compliance register indicates the operational area responsible for ensuring obligations are met, as well as potential penalties for non-compliance and a risk rating to assist in understanding the level of exposure in the event of non-compliance. Compliance with internal policy and procedure is also a key element of the framework consistent with the QUT Code of Conduct. Council is also committed to establishing a cost-effective internal control structure (MOPP A/2.6). Although the Vice-Chancellor is ultimately responsible for the establishment of a cost-effective internal control structure for the University in line with the requirements of the Financial Management Standard 1997 , developing and maintaining cost-effective internal controls is a management responsibility and an integral component of the overall process of managing operations of the University. d) Risk management QUT Council has the overall responsibility for risk management at QUT, which it exercises through its Audit and Risk Management Committee. The University's risk management policy (MOPP A/2.5) and the Risk Management Framework make each faculty and division responsible for managing their business risks.. The alignment of risk management with the strategic planning process facilitates closer interaction between the revision of plans and the re-assessment of risks. Audit and Risk Management Committee of Council (MOPP A/3.3) evaluates the adequacy and effectiveness of the management of significant business risks and advises Council on the University's level of exposure to them. e) Delegation of decision-making QUT Council endorses a framework for the delegation of decision-making based on principles of empowerment of staff and committees in an environment of responsible corporate governance (MOPP Appendix 3). Devolution to appropriate levels of responsibility and competence ensures that QUT is administratively responsive and makes decisions in a timely way. The framework of delegations specifies powers which cannot or should not be delegated, having regard to the scope or purpose of decision-making, or other matters such as legislative requirements or prohibitions. Sound corporate governance is achieved by ensuring that there are adequate internal control structures in place to support delegated decision-making, including appropriate policy settings, and monitoring, reporting and risk management systems. f) Effective and appropriate committee structures Council is assisted and advised in its role by its sub-committees and the Vice-Chancellor's management committees (see MOPP Appendix 8). All committees have constitutions published in the MOPP setting out their role, terms of reference, delegated powers, membership and reporting arrangements. Council Procedure 1 - Committees outlines the roles of office bearers and conditions of membership, procedures for ordinary and special meetings and for decisions between meetings, record keeping responsibilities, conflicts of interest and indemnity, reimbursement of member expenses and induction and review. g) Reporting and monitoring (transparency and accountability) Good corporate governance requires appropriate mechanisms to monitor and report on performance. Council is assisted by its committees and management in monitoring performance against approved plans and key performance indicators as set out in the Planning Framework. The Vice-Chancellor supports the flow of information in presenting to each meeting of Council a report on the performance of the University and also identifies impending issues and risks facing the University. The monitoring and control framework of the University is subject to continuous independent internal audit through Assurance and Risk Management Services which reports to Council through its Audit and Risk Management Committee. To safeguard integrity and accountability of the monitoring function of committees, Council has established a Register of Disclosed Interests which members of Council and University committees are required to keep up-to-date, in addition to declaring conflicts of interest at meetings. Reporting requirements delegated by Council to officers of the University and committees are articulated in a Schedule of Authorities and Delegations (MOPP Appendix 3) to ensure that there is clarity of understanding of responsibilities. Reporting and control culminates with an external financial audit and presentation of the University's Annual Report, incorporating the audited financial statements and a report on governance matters, to State Parliament. Related DocumentsNational Governance Protocols for Higher Education Providers at the DEEWR website Principles of Good Corporate Governance and Best Practice Recommendations, ASX Corporate Governance Council, March 2003 MOPP Appendix 1(c) Student Rules MOPP Appendix 1(b) QUT Legislative provisions - Statutes Modification History
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