APS Conflict of Interest Management
APS Conflict of Interest Management Framework: Better Practice Model
The APS Conflict of Interest Management Framework: Better Practice Model establishes tangible and practical requirements for managing conflict of interest across the APS.
The Better Practice Model sets out expected practice across three maturity tiers, and outlines policy settings for each:
| Minimum Requirements – Benchmarks that illustrate what every APS agency needs to include in their conflict of interest policy. |
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| Good Practice – What agencies can do in each category to enhance their policies, systems and processes, and strengthen capability to identify and manage conflicts of interest. |
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| Excellent Practice – Stretch goals for agencies that would ensure a mature, strategic and proactive approach to the management of conflicts of interest. |
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The Model supports the effective management of conflict of interest across the APS. It provides operational guidance and practical information to enable agencies to implement conflict of interest processes and policy arrangements that are tailored to their needs, responsibilities, and risk profile.
In implementing the Model, agencies can strengthen integrity across the APS by establishing the following policy settings, education and training processes, and monitoring and assurance activities to meet minimum, or higher, expectations.
Policy Settings
Clear policy and process guidance to apply internally, including management of conflicts of interest arising in the context of previous employment, secondary (outside) employment and post-separation employment.
A conflict of interest policy sets out an agency’s declaration and management processes and education requirements in the context of its responsibilities, risk profile, and size. Employees should be able to read their agency’s policy and understand what a conflict of interest is, how to make a declaration and how to put in place effective management strategies. Policies must include guidance about high-conflict risk areas, such as previous employment, secondary (outside) employment and post-separation employment.
Declarations
Who needs to complete a conflict of interest declaration and management plan and when?
Conflict of interest policies should detail the agency’s declaration process. They should set out when an employee needs to make a conflict of interest declaration, when a management plan should be put in place, and what a management plan should contain. Obligations to declare conflicts may apply to different employee classifications, positions and activities.
Management
What happens when an employee lodges a conflict of interest declaration and management plan?
Managers at all levels have a duty—in addition to declaring and managing their own conflicts—to ensure that their staff avoid conflicts of interest, or declare and manage conflicts effectively on an ongoing basis. Agency policies should clearly outline who assesses identified conflict risks and approves management plans, how reasonable and proportionate mitigation strategies should be established in accordance with the agency’s enterprise risk controls, as well as how management plans should be centrally recorded and how often they are reviewed. At minimum, employees must review their declarations and management plans whenever their circumstances change (such as changes in role, duties, or supervisor, or when new conflicts arise).
Previous employment (includes volunteer work, business ownership and contract work prior to APS employment)
How is previous employment conflict risk identified, assessed and managed in your agency?
Previous employment, whether paid or unpaid, can give rise to a real or apparent conflict of interest if there is a connection with the employee’s employment generally or their specific role, duties, or activities at any point in time. At minimum, employees must declare previous employment at onboarding, and on transfer to a new agency or to a new role within an agency where it could give rise to a real or apparent conflict, and should review their declaration whenever their role or duties change.
Secondary (outside) employment (includes volunteer work, business ownership and contract work outside of the agency)
How is secondary employment conflict risk identified, assessed and managed in your agency?
Secondary employment (sometimes called ‘outside employment’) is any work undertaken by an APS employee outside of their primary job in the APS. Agency policies should identify potential secondary employment risks in the context of the agency’s specific functions and responsibilities, and explain how employees must make a notification or request for approval. Agency policies should ensure that all parties—the employee, their secondary employer or clients, and their supervisor or other managers—are aware of applicable obligations relating to declaring, assessing and managing secondary employment conflict risks.
Post-separation employment
How is post-separation conflict risk identified, assessed and managed in your agency?
Conflicts of interest can arise when APS employees choose to leave the APS and accept employment or establish a business in a non-government sector. Employees and agencies each have a role in ensuring such conflicts are declared and appropriately managed prior to separation.
Post-separation conflict risk management strategies should be included in all agency conflict of interest policies, including: declaration of employment offers (whether accepted or not); strategies for managing anticipated post-separation conflicts of interest after the employee has given notice but is still in the agency; identification of general and specific confidentiality obligations that apply to employees post-separation; and communications to ensure that current employees understand their conflict of interest and confidentiality obligations in their dealings with former colleagues who work in the non-government sector in fields aligned to their former APS functions or duties.
Education and Training
Regular, scenario-based training and guidance for staff at all levels on how to identify, declare and, most importantly, manage and monitor conflicts of interest.
In addition to providing clear policy guidance, agencies support their staff by providing education and training on how to identify, avoid, declare, and manage conflicts of interest. Scenario-based training—either through e-learning modules or virtual or in person face-to face sessions—is recommended to raise awareness of the conflicts that can arise in the context of different roles, responsibilities, and activities, and build employee and manager confidence and capability to manage conflicts. Areas of focus for training will be different in each agency, and should be tailored to agencies’ needs, high-conflict risk activities, and operating context.
Regularity of staff training
How often are staff required to complete conflict of interest training within your agency?
This may vary depending on employees’ roles and activities. More frequent or additional training may be needed for staff performing high-conflict risk work. Agency policies and systems that detail and support agreed frequency and methods of training can assist staff in understanding their responsibilities.
Requirements
What is expected of an employee when they complete conflict of interest training?
At a minimum, employees need to demonstrate they understand the training material, as well as how it applies to their day-to-day roles. Monitoring training outcomes can enable agencies to identify teams or individuals who are struggling with awareness of conflict of interest management.
Scenario-based training
Do employees understand how to apply conflict of interest policies and procedures to their own role and duties in an agency context?
Scenario-based training may look different from agency to agency—and often will vary between different business areas in the same agency. Training involving common scenarios assists employees and their managers to identify and effectively manage conflicts of interest that could arise in connection with their duties. Agencies should consider what scenario-based training should include, having regard to the agency’s functions and operating environment.
Assurance
Whose role is it to ensure that all staff are meeting their training obligations?
Agencies must have a system in place to be able to monitor and assure employees’ compliance with their training requirements and enable managers to address training needs within their teams.
Further considerations
What additional education and awareness activities does your agency provide?
Training has an important role in the education process, but employees may require support outside of these sessions. Agencies are encouraged to consider what this support looks like in the context of their operations, and how conflict of interest awareness can be delivered and maintained.
Monitoring and Assurance
Central recording of conflict declarations and management plans by agency employees, with monitoring and assurance processes in place.
APS agencies are expected to take steps to ensure that their conflict of interest policies are being appropriately administered and that staff are complying with requirements. Central recordkeeping and oversight assists agencies to identify areas for improvement, using evidence of compliance, concerns, trends and patterns that can be addressed through education and training.
Recording
How are conflict of interest declarations and management plans recorded and where are they stored?
Conflict of interest declarations and management plans need to be stored in a central location. Centralised records management assists employees and managers to comply with their requirements, enables visibility of declared conflicts of interest, and provides assurance to leaders that conflicts of interest are being managed consistently and effectively on an agency-wide basis.
Monitoring and assurance
How do staff know when it’s time to review a conflict of interest management plan?
Monitoring assists agencies with identifying when new declarations are required (e.g. in the context of role changes, extension of acting arrangements, or participation in a higher-risk activity). Appropriate assurance systems allow conflicts of interest to be effectively controlled as an enterprise risk.
Reporting
How does your agency capture and report conflict of interest themes and issues?
Conflict of interest data forms part of integrity reporting within agencies and assists with identifying areas for improvement. Reporting helps agencies inform their policy settings and education activities.
Oversight
Who is responsible for ensuring compliance with the conflict of interest policy and enterprise risk controls? Who is conflict of interest related data and intelligence reported to?
Oversight of conflict of interest management policies, systems and processes can assist agencies in identifying areas of non-compliance, or education or risk assessment need, and can provide a basis for understanding and remedying issues. Agencies need to ensure that robust conflict of interest management is embedded as an enterprise risk control and governed appropriately to enable the agency head/accountable authority to meet their legislative obligations under the Public Governance, Performance and Accountability Act 2013, Public Service Act 1999 and National Anti-Corruption Commission Act 2022.