A review has found the Murray-Darling Basin Authority’s gift policies are well written but poorly followed.

The Australian National Audit Office (ANAO) has uncovered significant gaps in the Murray-Darling Basin Authority’s (MDBA) management of gifts, benefits, and hospitality.

While the MDBA has policies in place to address risks of undue influence and conflicts of interest, the audit revealed that these measures were inconsistently applied, undermining their effectiveness.  

The MDBA’s internal gifts and benefits register recorded 20 entries during the review period  between July 2021 and March 2024.

However, five additional instances of accepted gifts or hospitality were not documented. 

Notably, a gift publicly declared by the MDBA’s Chief Executive - a membership to an airline lounge - was the only one disclosed externally. 

There were also 35 cases where hospitality and catering expenses lacked evidence of necessary delegate approvals.

The broader context of public sector governance adds weight to the findings. 

Australian Public Service regulations demand transparency and accountability in managing gifts, with public confidence at stake when potential conflicts of interest arise.

The ANAO report notes that even the appearance of impropriety can damage trust in public institutions.

Further complicating matters was the MDBA’s approach to mandatory training on integrity and fraud prevention. 

Although this training is designed to reinforce staff awareness of their responsibilities, the audit identified gaps in reporting its completion. 

Additionally, senior figures within the organisation, including members of the Authority, were not provided with tailored guidance on how to navigate the organisation's policies.  

The report also highlighted inconsistencies in the MDBA’s policies. 

For instance, documents addressing token gifts valued at $50 or less varied in their instructions, and procedures lacked clarity around timelines for approvals and reporting. 

Definitions for hospitality categories, such as “official” versus “business catering”, were similarly inconsistent, which likely contributed to compliance issues.  

The ANAO offered three recommendations to address these deficiencies, including enhancing risk assessments related to gifts and hospitality, refining the policy framework for better consistency, and implementing stronger governance measures for oversight and compliance. 

MDBA Chief Executive Andrew McConville says the authority is making ongoing efforts to align policies and processes.

“We are embedding processes to ensure compliance with mandatory staff training and internal procedures and reviewing internal policies for consistent treatment of gifts and benefits,” he said. 

The MDBA’s handling of hospitality also came under scrutiny. 

In several cases, official spending on alcohol exceeded guidelines, with senior officials charging hospitality expenses to corporate credit cards. 

These lapses persisted despite measures like attaching labels to distinguish corporate cards from personal ones. 

The ANAO noted an uptick in “unintentional” misuse of corporate cards during the audit period, surpassing previous years.  

Agreeing to implement the ANAO’s recommendations, the MDBA has signalled its intent to rebuild confidence and tighten internal controls. 

The full report is accessible in PDF form, here.

This email address is being protected from spambots. You need JavaScript enabled to view it. CareerSpot News