Authorities undertake a broad range of functions and activities in delivering services to the community. While conflicts of interest can arise in any part of an authority, some functions and activities have a heightened risk for conflicts.
Some functions and activities may present a higher risk because they:
- place an officer in a position to make or influence decisions (for example, commercial outcomes)
- provide access to confidential information
- expose officers to a risk of influence (for example, from external stakeholders who may provide gifts, benefits and hospitality).
Authorities should identify their higher risk functions and activities and the potential conflicts of interest that may occur. Once identified, controls can be put in place to manage these which may go beyond general controls such as policies and procedures.
Examples of higher risk functions and activities, and the types of controls that may be applied, are in the table below. These are illustrative only and not intended to be exhaustive.
Examples of functions and activities at risk
| Function | Activity | Risk | Controls |
|---|---|---|---|
| Regulatory functions (individual or business functions) | Inspecting or regulating businesses, premises and equipment Issuing qualifications or licenses Issuing or reviewing fines or penalties | Relationships develop that influence decision making | Register of interests Targeted education of officers working in regulatory roles about potential risks and relationship expectations Regular rotation of individual regulators Assignment of multiple officers to complex cases Peer review of decisions |
| Distribution of funds and other benefits | Allocating public funds, sponsorships, subsidies and other concessions (financial and non-financial) | Preferential treatment based on personal interest | Regular opportunities at meetings to declare conflicts Expectations of integrity and ethical behaviour in position descriptions |
| Procurement and contract/financial management | Procuring goods or services Tendering for and managing contracts Renewing or issuing variations on contracts Reconciling invoices Preparing delegations of authority | Preferential treatment to supplier based on personal interest | Financial delegations Register of interests Requirement for contractors to identify conflicts of interest Monitoring of gifts, benefits and hospitality registers Regular review of transactions and variation activities for irregularities Segregation of purchaser and approver Regular control audits of financial management systems |
| Recruitment | Making appointments to positions | Bias in process | Declaration of conflicts discussed with all panel members Record conflicts and document management strategy in recruitment report External panel member(s) |
| Approvals and planning decisions | Issuing determinations on matters Exercising powers over land and planning development | Personal interests result in favourable determination | Regular opportunities at meetings to declare conflicts Expectations of integrity and ethical behaviour in position descriptions |
