Governance Framework

2023
Contents
FSANZ Governance at a Glance ........................................................................................... 4
1. Introduction .................................................................................................................. 5
1.1 The FSANZ Governance Policy Statement ............................................................. 5
2. The FSANZ legal and policy frameworks ..................................................................... 5
2.1 Public Governance, Performance and Accountability Act 2013 ............................... 5
2.2 Public Service Act 1999 .......................................................................................... 6
2.3 Food Standards Australia New Zealand Act 1991 ................................................... 6
2.3.1 Object of the FSANZ Act .................................................................................. 6
2.3.2 Functions ......................................................................................................... 7
2.3.3 Powers............................................................................................................. 7
2.3.4 Ministerial Direction.......................................................................................... 7
2.3.5 The Board ........................................................................................................ 7
2.3.6 The Chief Executive Officer ............................................................................. 7
2.3.7 FSANZ Staff .................................................................................................... 7
2.4 The Food Regulation Agreement ............................................................................ 7
2.5 The Agreement between Australia and New Zealand Concerning a Joint Food
Standards System ............................................................................................................. 8
2.6 The Food Ministers’ Meeting (FMM) ....................................................................... 8
2.7 Ministerial overarching strategic statement for the food regulatory system .............. 9
2.8 The Food Regulation Standing Committee (FRSC)................................................. 9
3. The FSANZ Governance System ............................................................................... 10
3.1 Leadership ............................................................................................................ 10
3.2 Compliance ........................................................................................................... 10
3.3 Collaboration......................................................................................................... 10
3.3.1 Minister and Parliamentary liaison ................................................................. 11
3.3.2 External stakeholder communication ............................................................. 11
3.3.3 Stakeholder groups ........................................................................................ 11
3.3.4 Internal stakeholder forums............................................................................ 11
3.4 Risk management ................................................................................................. 12
3.4.1 Risk assessment ............................................................................................ 12
3.4.2 Fraud control.................................................................................................. 12
3.4.3 Conflicts of Interests ...................................................................................... 13
3.5 Accountability........................................................................................................ 13
3.5.1 Internal Accountability – the Board, Finance, Audit and Risk Management
Committee (FARMC) and People and Culture Committee (PCC) ................................. 13
3.5.2 External Accountability................................................................................... 14
 3.6 Planning................................................................................................................ 14
3.6.1 Planning......................................................................................................... 14
3.6.2 Performance Monitoring ................................................................................. 14
3.6.3 Board performance ........................................................................................ 14
4 Review and evaluation of FSANZ Governance Framework ........................................ 15
5 Dealing with governance breaches and complaints.................................................... 15

This document provides information on the governance of Food Standards Australia New Zealand.
The Governance Framework is one of a suite of documents that supports the Corporate Plan.
This Framework supports the governance enabler of the Corporate Plan.
Reviewed March 2022
FSANZ Governance at a Glance

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1. Introduction
The Food Standards Australia New Zealand (FSANZ) Governance Framework sets out and
describes the policy, legal and operational structures and components that define and
enable effective agency governance. The Framework incorporates:

• the FSANZ Governance Policy Statement (Section 1.1)

• the sources of authority and accountability relevant to agency operations, including
legislation, agreements between governments, subordinate instruments and policy and
decision-making bodies (Section 2)
• the system the Board has established to assure itself and its stakeholders that it has
good governance for high performance, including the principal operating elements of
leadership, compliance, collaboration, risk management, accountability and planning
(Section 3)
• programmed evaluation and review (Section 4).

1.1 The FSANZ Governance Policy Statement

The Board and Executive are committed to good governance and effective work processes.
Governance arrangements are designed to ensure that:
• decision-making is authorised and accountable; and
• FSANZ contributes effectively to food regulation design and implementation.

Good governance requires:

• the Board and senior management guiding and monitoring our work;
• management and staff disclosing all material matters in a timely and accurate manner;
and
• policies to manage our relationships with stakeholders—including employees,
Parliament and the public.

2. The FSANZ legal and policy frameworks

The governance and financial management arrangements for FSANZ are determined by our
legislative framework — the Public Governance, Performance and Accountability Act 2013
(the PGPA Act), the Public Service Act 1999 (the PS Act) and the Food Standards Australia
New Zealand Act 1991 (the FSANZ Act) — the Food Regulation Agreement and an
agreement made under the Agreement between the Government of Australia and the
Government of New Zealand concerning a Joint Food Standards System, which provides a
basis for contractual arrangements with New Zealand for the delivery of specific services.

2.1 Public Governance, Performance and Accountability Act

2013
FSANZ is a Commonwealth corporate entity for the purposes of the PGPA Act. The CEO is
a member of, and appointed by, the Board.

The Board is the accountable authority for FSANZ, and as such, must govern the entity in a
way that promotes:

• the proper use and management of public resources;

• the achievement of the purposes of the entity, and

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• the sustainability of the entity1.

The Board has an agreed Charter which guides the Board’s operations and governance of
the agency (see section 3.5.1 below).

As we have enabling legislation, subsection 35(3) of the PGPA Act does not apply to the
FSANZ Corporate Plan.

2.2 Public Service Act 1999

The Public Service Act (the PS Act) provides for a public service which has a strong
performance orientation and is ethical in its approach to governance and program and
service delivery.

The PS Act, particularly the Australian Public Service Values, the Australian Public Service
Employment Principles and the Australian Public Service Code of Conduct, describes the
framework for ethical standards and behaviour for APS employees. These APS Code of
Conduct are replicated, in part, in individual employment agreements covering New Zealand‐
based employees, who are locally engaged employees under section 74 of the PS Act. In
general, FSANZ expects locally engaged employees to adhere to standards similar to all
other employees, unless modified by employment arrangements or law. Australia-based
employees are engaged under section 22 of the PS Act and are APS employees.

The principles of good public administration are embodied in the APS Values. The values
require that we are: committed to service; ethical; respectful; accountable; and impartial.

The APS Code of Conduct sets out the standard of conduct required of APS employees. The
Code of Conduct is designed to protect the integrity of the APS and thereby maintain public
confidence in public administration. The Code of Conduct is set out in section 13 of the PS
Act.

The APS Employment Principles include the principle that decisions relating to engagement
and promotion are based on merit. The APS recognises the diversity of the Australian
community and fosters diversity in the workplace.

2.3 Food Standards Australia New Zealand Act 1991

2.3.1 Object of the FSANZ Act

The object of the FSANZ Act (the Act) is to ensure a high standard of public health
protection throughout Australia and New Zealand by means of the establishment and
operation of a joint body known as Food Standards Australia New Zealand to achieve the
following goals2:
• a high degree of consumer confidence in the quality and safety of food produced,
processed, sold or exported from Australia and New Zealand
• an effective, transparent and accountable regulatory framework within which the food
industry can work efficiently
• the provision of adequate information relating to food to enable consumers to make
informed choices

1 Public Governance, Performance and Accountability Act, section 15

2 FSANZ Act, section 3

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• the establishment of common rules for Australia and New Zealand and the promotion
of consistency between domestic and international standards applying to public health
and consumer protection.

2.3.2 Functions

FSANZ’s functions are set out in Section 13 of the Act. These legislative requirements
determine the scope of our work: developing food standards for the food regulatory system
and working with other parties in the food regulatory system to assure confidence in the
safety of food sold in Australia and New Zealand. As a Commonwealth Corporate Entity
FSANZ can only perform the functions listed in Section 13 or functions that are conferred
under another Commonwealth law.

2.3.3 Powers

FSANZ has powers enabling it to do all things necessary or convenient to be done in

connection with the performance of its functions. These powers are listed in section 14 of the
Act. FSANZ is not empowered to do any act that is not listed in section 14.

2.3.4 Ministerial Direction

The Australian Minister may give FSANZ policy guidelines formulated by the Food Ministers’
Meeting (FMM). These guidelines must be published on the FSANZ website.3

2.3.5 The Board

The affairs of FSANZ are to be conducted by the Board4. The Board is to hold such
meetings as are necessary for the efficient performance of the Board’s functions5. A majority
of the members of the Board at the time constitute a quorum. Board members may attend
Board meetings by telephone, video link or other means of communication6.
The Board may establish committees to assist it in carrying out its functions7.

2.3.6 The Chief Executive Officer

The Chief Executive Officer is appointed by the Board8 and is responsible for the day-to-day
administration of FSANZ and the control of operations9. The Board may delegate some, but
not all, of its powers to the Chief Executive Officer and to the staff of FSANZ10.

2.3.7 FSANZ Staff

FSANZ staff are engaged by the Chief Executive Officer under the PS Act.

2.4 The Food Regulation Agreement

The Food Regulation Agreement (the FR Agreement) is an intergovernmental agreement
between the Commonwealth, the states and the territories which establishes, for Australia, a
co-operative federal system of food regulation. The FR Agreement was made in recognition

3 FSANZ Act, subsection 18(3)

4 FSANZ Act, section 115 and PGPA Act, section 15
5 FSANZ Act, section 122
6 FSANZ Act, section 123
7 FSANZ Act, section 118
8 The appointment process is implemented in accord with the policy of the Australian Government.
9 FSANZ Act, section 129
10 FSANZ Act, section 129

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of the need to implement a national system of food regulation and to ensure that all sectors
in the food supply chain apply their own mechanisms to manage their food safety risks. The
FR Agreement establishes the Food Ministers’ Meeting and the Food Regulation Standing
Committee, and authorises the Australian Government to establish FSANZ to perform
specific functions in the system.

2.5 The Agreement between Australia and New Zealand

Concerning a Joint Food Standards System
There is a treaty-level agreement between the Governments of Australia and New Zealand
(the Agreement) that establishes FSANZ's role in setting and maintaining trans-Tasman food
standards. The essential element of the Agreement is to extend elements of the Australian
food regulation system, in particular the Australia New Zealand Food Standards Code, to
include New Zealand.

The Agreement:

• provides that the joint food standards system will include the development and
maintenance of joint food standards in the Australia New Zealand Food Standards
Code, alongside Australia-only standards
• excludes, subject to opt-in, the specification of maximum residue limits and food
hygiene provisions from the scope of the Agreement
• provides for New Zealand to determine that other standards shall not apply in New
Zealand
• provides that the New Zealand minister shall make an agreement with FSANZ each
year in relation to the services to be provided by FSANZ to New Zealand and the
performance and accountability requirements relating to those services.

2.6 The Food Ministers’ Meeting (FMM)

The FMM is established by the FR Agreement and has responsibility for the development of
domestic food regulatory policy, the development of policy guidelines for setting domestic
food standards, the promotion of harmonised food standards, the general oversight of
domestic food regulation and standards, and the promotion of a consistent enforcement
approach11.

The FMM is advised by the Food Regulation Standing Committee (FRSC), which comprises
senior government officials from the Commonwealth, New Zealand and the states and
territories. The FMM will also consult with stakeholders on developing policy guidelines. The
FSANZ Chair is an observer and technical adviser at FMM meetings.

Responsibility for developing new food standards sits with FSANZ, which also formally
develops and reviews variations to the Food Standards Code. FSANZ must notify its
decisions to the FMM. The FMM can, subject to observing procedural requirements, amend
or reject a standard developed by FSANZ before the standard is notified.

Formal meetings of the FMM occur once or twice each year. They are organised by the
Food Regulation Secretariat, based in the Commonwealth Department of Health and Aged
Care. Policy guidelines issued by the FMM are published on the FSANZ and Department of
Health and Aged Care websites.

11 Clause 3 of the Agreement.

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FSANZ must have regard to12 the FMM’s guidelines when it develops or reviews food
standards.

2.7 Ministerial overarching strategic statement for the food

regulatory system
The FMM has determined an overarching strategic statement for the food regulatory system
(the Statement). The Statement provides a strategic context for the food regulatory system in
Australia and New Zealand and notes the importance of facilitating FSANZ’s independence
as an evidence-based developer of food standards.

The Statement articulates:

• those who are collectively responsible for the food regulatory system
• the scope of the food regulatory system, and its broad objectives
• a means for deciding when regulatory intervention may be appropriate
• the specific characteristics of the food regulatory system that are considered desirable
• the partners, stakeholders, influencers and regulated bodies that interact with food
regulators, and the nature of these relationships
• areas where there are opportunities for continued improvement.

2.8 The Food Regulation Standing Committee (FRSC)

FRSC has the functions of co-ordinating policy advice to the FMM and ensuring a consistent
approach to the implementation and enforcement of food standards13. The FSANZ CEO
attends FRSC meetings as a technical adviser and observer and provides direct input to
FRSC policy development as an ex-officio member of the FRSC Strategic Policy Working
Group.

12 The Forum was given power to issue guidelines in order that it could direct, rather than react to, decisions of
FSANZ. Guidelines must be consistent with the objectives set in subsection 18(1).
13 Clause 4 of the Food Regulation Agreement

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3. The FSANZ Governance System
The FSANZ Governance System has been established by the Board to assure itself and its
stakeholders that it has addressed major indicators of good governance in a manner
contributing to high performance.

The principal elements of the governance system are leadership, compliance, collaboration,
risk management, accountability and planning.

3.1 Leadership
The Board and the Executive are the principal leadership groups within FSANZ. They set the
tone for the agency’s operations by modelling good governance behaviours and
demonstrating a commitment to achieving Government objectives through auditable
processes.

Leaders have dual responsibilities around governance, including:

• ensuring implementation, evaluation and improvement of governance structures and

processes
• enacting and influencing good governance through their own performance and
behaviours.

The Board and Executive promote a learning environment that encourages innovation and
continuous improvement to achieve better outcomes consistent with efficient, effective and
ethical delivery.

3.2 Compliance
Performance of the standards-setting function demands strict compliance with the
procedural requirements of the FSANZ Act. To assure compliance, FSANZ has developed
systems and procedures to ensure the work it does complies with legislative requirements
and statutory timeframes.

FSANZ has also invested heavily in financial and related corporate systems and processes
to ensure compliance with PGPA Act requirements.

3.3 Collaboration
FSANZ has an open and transparent approach to collaboration. We actively seek and
encourage a culture of cooperation with a wide range of stakeholders. Collaboration is a key
consideration in developing standards and for all FSANZ decisions.

For successful food regulation, it is imperative to build and maintain stakeholder trust in the
fairness and objectivity of the standards developing agency. FSANZ attempts to earn and
maintain this trust by implementing a transparent approach to our dealings with:

• the public, consumer organisations and the media

• Australian, state and territory governments and the New Zealand Government
• primary producers and the manufacturing sector
• retail outlets and food services providers
• public health professionals
• international agencies and organisations

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• our partners in the scientific community.

3.3.1 Minister and Parliamentary liaison

FSANZ provides advice and information to the office of the responsible Australian
Government minister. We measure efficiency annually through the Portfolio Budget
Statement (PBS) measures. We also provide information on FSANZ-related matters to other
Commonwealth Government departments and agencies for inclusion in correspondence and
briefings. There are established principles for communicating at this level and compliance
with these principles is considered very important in governing this relationship effectively.

3.3.2 External stakeholder communication

FSANZ makes information available to all stakeholders in a number of ways including:

• Notification Circulars which include notices that are required to be given to the public,
to submitters and appropriate government agencies, under the FSANZ Act
• email newsletters such as Food Standards News
• social media, including YouTube, Twitter, Facebook and Instagram
• on our website, including in ways that make content accessible to people with
disabilities and language barriers.

3.3.3 Stakeholder groups

FSANZ has established three key stakeholder groups to exchange information and enhance
our understanding of the issues facing these groups. These groups are the:

• Binational Food Industry Dialogue (industry representatives)

• Consumer and Public Health Dialogue (consumer and public health representatives)
• Jurisdictional Technical Forum (government representatives).

3.3.4 Internal stakeholder forums

Internal stakeholder engagement is a priority for FSANZ and is pivotal to communicating well
with staff and supporting effective relationships in the agency.

There are two key internal stakeholder forums in FSANZ. They are the Workplace
Consultative Committee and the People and Culture Forum.

The Workplace Consultative Committee is the principal forum for discussion of issues
relating to the employment conditions of FSANZ employees (e.g. enterprise agreements and
individual employee agreements) s. This committee includes management, employee
representatives and representatives from relevant unions.

The People and Culture Forum is a consultative and advisory committee which provides a
mechanism within FSANZ to facilitate the exchange of information between staff and
management on workplace matters of relevance to staff. The Forum was established to
discuss ideas, questions and concerns regarding preferred organisational culture, diversity
initiatives and other matters in the workplace. A Forum representative meets regularly with
the Executive to report on the Forum’s activities.

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3.4 Risk management
As a Commonwealth Corporate entity, FSANZ reviews and aligns its risk management
frameworks and systems with the Commonwealth Risk Management Policy (the Policy), as
mandated in the PGPA Act. The Policy states that the accountable authority of a
Commonwealth entity must establish and maintain appropriate systems of risk oversight,
management and internal control for the entity.

As FSANZ’s accountable authority, responsibility for risk management in FSANZ sits with
the Board. However, that responsibility cascades through the agency and is shared by all
staff. All staff must be accountable for the effective and efficient use of Government
resources. Good risk management supports this aim.

Food-related risks are analysed using internationally accepted methodologies that are
described in the publication Risk Analysis in Food Regulation.

The Board has established an integrated Risk Management Framework which provides the
foundations and organisational arrangements for designing, implementing, monitoring,
reviewing and continually improving risk management throughout the agency. This
Framework defines procedures, roles and reporting requirements.

The Framework gives the Board, the Finance Audit & Risk Management Committee
(FARMC, see section 3.5.1 below), Executive and staff a sound platform on which to
coordinate activities to manage and control potential and identified risks.

3.4.1 Risk assessment

Risk assessment includes three specific processes; risk identification, risk analysis (including
the establishment of likelihood, consequence and risk level) and risk evaluation.

Identified risks are initially assessed and analysed to ascertain likelihood, consequence and
level of risk. Once the level of risk has been identified, decisions on which risks need
treatment and the priority placed on them for treatment and implementation can be made.

Strategic risks are reported to the Board. The FARMC monitors and advises the Board on
strategic and fraud risk management and senior management monitors the operational day
to day risks of the agency. Strategic, operational and fraud risks are collated in risk registers
to support ongoing monitoring, management and treatment of identified risks.

3.4.2 Fraud control

FSANZ fraud control policies and plans are incorporated into the integrated risk
management system. We have a Fraud Policy Statement and Fraud Control Plan which
outlines governance responsibilities relating to fraud prevention for all staff. Preparation of
this plan represents one of FSANZ’s obligations in complying with the Commonwealth Fraud
Control Guidelines. The fraud control framework includes undertaking risk assessments,
education and awareness, fraud recording, reporting and evaluation of the effectiveness of
mitigation strategies. These actions underpin a robust approach to fraud prevention and
ultimately, the promotion of voluntary compliance.
In an environment of increasing growth in business, ongoing Parliamentary and public
scrutiny and an equally increasing sophistication in attempts to obtain fraudulent access to
government services and resources, fraud control requires vigilance and robust prevention
planning.

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All members of FSANZ are responsible for fraud and corruption prevention within the
agency.

3.4.3 Conflicts of Interests

Avoiding conflicts of interest is an important part of sound governance. Board members are
required by law to declare any possible conflicts of interest and exclude themselves from any
decision making that could be considered a conflict. Under subsection 125(6) of the FSANZ
Act, entries recorded in the register of Board members' interests must be published on the
website. The register is updated on a regular basis.

The Board Charter outlines the requirements for Board members regarding the declaration
of conflicts of interest. At each meeting the Board considers declared conflicts of interest and
determines an appropriate action in each case.

The Charter states that Board members will:

• for each meeting, consider each agenda item and identify any potential conflicts of
interest and declare them to the Board before or at the start of each meeting
• follow the “FSANZ Guide to Declarations of Interests” for the declaration and
registration of material personal interests, and act consistently with FSANZ Act and
PGPA Act requirements in respect of member’s personal interests.

3.5 Accountability
FSANZ has incorporated its external reporting obligations into its daily operations. Through
its website, it provides a high level of transparency about its operations, particularly in the
performance of its standards setting function.

FSANZ also has a structure in place that supports separation of duties for the operational
and strategic management of governance across the agency.

3.5.1 Internal Accountability – the Board, Finance, Audit and Risk Management
Committee (FARMC) and People and Culture Committee (PCC)

Board

FSANZ has a twelve member Board, which is supported by a Charter. Members are
appointed by the Australian Government and includes three members nominated by the New
Zealand Government. The FSANZ CEO is an ex officio member of the Board.

The Board meets regularly and meeting outcomes are published on the FSANZ website.

FARMC

The Board has established the FARMC to fulfil its governance responsibilities relating to
finance, audit and risk management monitoring, reporting and continuous improvement. The
FARMC meets regularly ahead of Board meetings and is supported by a Charter.

PCC

The Board has established the PCC to assist the Board in fulfilling its governance
responsibilities in relation to the people and culture functions of the agency. The PCC meets
regularly ahead of Board meetings and is supported by a Charter.

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3.5.2 External Accountability

Through the Department of Health and Aged Care, FSANZ must outline projected budget
expenditure for program delivery in the annual Portfolio Budget Statements (PBS).

Program outcomes are reported to Parliament through the Annual Report which is also
made available publicly after it has been tabled in Parliament.

The Board and Executive ensure full compliance with reporting requirements of the PGPA
Act and the FSANZ Act.

3.6 Planning
3.6.1 Planning

FSANZ manages financial and enterprise or non-financial planning at the strategic and
operational level. The process is overseen by the Board, the FARMC and Executive.

All Commonwealth entities must publish corporate planning and reporting documents under
the Commonwealth Performance Framework (CPF), with specific requirements for each
document.

Key components of the CPF include the PBS, the Corporate Plan and the annual
performance statements (annual report). FSANZ has a statutory requirement to report on its
performance as specified by the PGPA Act and the PGPA Rule 2014.

FSANZ has developed a Performance Planning and Reporting Framework that aligns to and
better connects statutory CPF components with annual branch and section planning and
quarterly and annual performance reporting.

The Framework streamlines, schedules and better aligns whole-of-agency performance

planning, measurement and reporting to increase the maturity of our systems and Corporate
Plan, better demonstrate how we meet our PBS purpose and outcomes, and maintain our
reputation as a global leader in regulatory science and food safety.

3.6.2 Performance Monitoring

Performance against PBS outcomes and activities is reported and made available to the
public through the annual performance statements that are published in FSANZ’s Annual
Report.

FSANZ has developed seven core performance areas to ensure we measure and monitor
delivery of our key activities, achieve our purpose and strategic outcomes, realise our vision
and mission and respond to the challenges and opportunities of our current environment.

3.6.3 Board performance

The Board Charter provides that the Board will review its performance14 and establishes a
standard for that review. Reviews are conducted using a mix of external evaluation and
facilitated self-assessment with appropriate input sought, as determined by the Board.

14 Board Charter, section 11.

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4 Review and evaluation of FSANZ Governance
Framework
Accountability for evaluating the governance framework sits with the General Manager,
Corporate Services, in conjunction with Executive and relevant FSANZ staff.

Annual evaluation is part of the planning schedule. It is an important process that supports
the ongoing maturity and effectiveness of FSANZ’s risk management.

Independent review of FSANZ governance is provided through the internal audit program
and periodic external audits. Reports from such reviews can be used as benchmark
information and contribute to the continuous improvement of governance. The FARMC
receives evaluation reports and outcomes are included in FSANZ’s Annual Report.

5 Dealing with governance breaches and complaints

A balanced governance system has an effective management system, a dynamic risk
management system and a robust internal audit program. FSANZ has mechanisms for
detecting, recording and dealing with any governance breach or complaint.

The internal audit program and external audit functions are good mechanisms for measuring
effective governance and assessing if a governance breach has occurred. The audit
program can identify the cause and ultimately make recommendations for continuous
improvement to reduce the chance of recurrence. This system has proven to be adequate
for addressing any governance-related matters which have arisen.

There is a designated complaints officer and a complaints mechanism in FSANZ, which is

outlined in the FSANZ Service Charter. In addition, arrangements have been implemented
for the purposes of the Public Interest Disclosure Act 2013.

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