Statutory Structure and Functions
Funds SA was established in July 1995 under the Superannuation Funds Management Corporation of South Australia Act 1995 (the Act). It became the successor organisation to the South Australian Superannuation Fund Investment Trust (SASFIT). Funds SA's role is to invest and manage the funds of South Australia's public sector superannuation schemes and approved authorities.
Funds SA's role in respect of these monies is defined in the Act.
A copy of Funds SA's Act and Regulations can be found here.
Direction of the Minister
In the performance of its functions, the Corporation is subject to the direction and control of the Minister. The appointed Minister is the Minister for Finance. A Ministerial direction must be communicated to the Corporation in writing, included in the annual report of the Corporation, published in the Government Gazette within seven days after the direction is given and must not include a direction to the Corporation in relation to an investment decision, dealing with property or the exercise of a voting right.
Board Responsibility and Delegation
The Funds SA Board is directly responsible for the management of the Corporation. The Act states that the Board of Directors is established as the governing body of the Corporation and that the Chief Executive Officer is responsible to the Board for the day-to-day management of the Corporation.
The Board has a leadership role in establishing and promoting Funds SA's values. It approves the Corporation's strategic direction and investment risk parameters; it agrees to the organisational framework within which staff are expected to work; it reviews the integrity of the organisation's operating and risk management systems and the effectiveness of its own operations and it monitors performance, ensuring that the interests of stakeholders are protected and legislative objectives and requirements are met.
Directors and employees are expected to uphold the Corporation's values, are required to abide by the Corporation's corporate governance systems, are directly accountable and responsible for their actions and are supported by internal controls in key risk and result areas. In line with this approach, the Board has made an appropriate delegation of decision making, whilst ensuring that appropriate controls and risk management disciplines are in place for the Board to discharge its fiduciary responsibilities.
The Board consists of non-executive directors including the Chairman. The Chief Executive Officer is not a member of the Board.
Two Board committees assist the Board in fulfilling its corporate governance responsibilities: the Audit and Risk Committee and the Human Resources Committee. The Committee charters are provided below.
The procedure for Board selection and appointment is detailed within the Superannuation Funds Management Corporation of South Australia Act 1995 Part 3.
Funds SA's Corporate Governance Policy provides a framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in Funds SA. The Policy is provided below.
Funds SA maintains a rigorous and proactive approach to identifying, managing and controlling all aspects of strategic and operational risk. This approach is approved by the Board and is consistent with applicable standards.
Risk management activities are monitored by the Audit and Risk Committee and include undertaking a formal business risk analysis annually. Related risk mitigation strategies include Funds SA's corporate governance structure, regular monitoring of major service providers, a business continuity framework, an Instrument of Delegation reviewed by the Board at least annually, and current Board approved policies and procedures.
In addition, Funds SA has a Risk Management Committee comprising Management. The Committee meets monthly with the aim of reviewing and monitoring Funds SA's strategic risk exposures and to monitor the implementation of risk mitigation strategies. The Committee also considers emerging risks.
A dedicated Manager Governance, Risk and Compliance takes carriage of Funds SA's risk management process and is responsible for developing and coordinating a risk based Compliance Program. The Manager Governance, Risk and Compliance is also responsible for ensuring significant operational risks are identified and appropriately mitigated, and to contribute to the overall improvement of risk management and control systems.