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National Residue Survey Administration Act - National Residue Survey - Report - 1994-95


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N a t i o n a l R e s i d u e S u r v e y

Aη n u a R e p o r t1 9 9 4 - 9 5

B R S

m

B u r e a u o f R e s o u r c e S c i e n c e s

Department of Primary Industries and Energy

N A T IO N A L R ESID U E

S U R V E Y

A N N U A L REPO RT

1994 - 95

BRS

Bureau of Resource Sciences

Australian Government Publishing Service Canberra

© Commonwealth of Australia 1995

ISSN 1323-4722

This work is copyright. Apart from any use as permitted under the Copyright A ct 1968, no part may be reproduced by any process without prior written permission from the Australian Government Publishing Service. Requests and inquiries concerning reproduction and rights should be addressed to the

Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601.

Produced by the Australian Government Publishing Service

D e p a r t m e n t of P r i m a r y I n d u s t r i e s a n d E n e r g y

m21 September 1 995Senator the Hon Bob CollinsM inister for Primary Industries and EnergyParliament HouseCANBERRA ACT 2 6 0 0Dear M inisterAs required under Section 10 of the N ational Residue Survey A dm inistration A c t 1992, I present to you the Annual Report of the National Residue Survey fo r the year ended 30 June 1995.Yours sincerelyPeter O'BrienA cting Executive Directorlocation: John C urtin House 22 Brisbane Avenue Barton ACT 2600 post: PO Box E ll Queen Victoria Terrace Parkes ACT Australia 2600 Phone (0 6)27 2 4282 Fax (06) 272 4747 B R S

INTRODUCTION

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The N ational Residue Survey A d m inistration A c t 1992 states that:

A s soon as practicable a fte r the end o f each financial year, the M inister is to cause a report to be laid before each House o f the Parliam ent setting o u t details o f the operation o f the N ational Residue Survey Trust A ccount including:

(a) m oney paid into the A c c o u n t during that financial year; and (b) m oney paid o u t o f the A c c o u n t during that financial year; and Ic) financial statem ents relating to the A cco u n t fo r that financial year; and (d) a description o f activities undertaken in relation to the National

Residue Survey during th a t financial year.

This is the Annual Report of the National Residue Survey for the 1 994-95 financial year.

NATIONAL RESIDUE SURVEY (NRS) - BACKGROUND

Role

NRS is an ongoing m onitoring program for residues of chemical contam inants in raw agricultural and fisheries food com m odities, animal feed and fibre products.

Data collected by NRS are used to provide inform ation and advice on residues to industry, Com m onwealth, State and Territory Governments, Australia's trading partners and the public.

The NRS has a unique role in Australian food production, im partially gathering and com piling significant inform ation on chemical residues in Australian produce. It regularly tests samples of raw food, other agricultural com m odities, animal feed and fibre products produced in Australia for residues of a wide range of chemicals normally used in production o f food. These include insecticides, fungicides, antibiotics, anthelm intics and hormonal grow th prom otants. As w ell as those chemicals currently used in agriculture, there is a second group of environmental chemicals including heavy metals and chemicals no longer used in agriculture, that are included in NRS m onitoring as chemical contam inants.

Concern about chemical residues in food remains an increasingly im portant issue w orldw ide. Public health concerns involving residues can rapidly alter consum ption patterns and disrupt markets. By providing an independent and authoritative assessment of the residue status of Australian foods, NRS places residue issues in perspective and dispels or averts speculation about product safety. The NRS also has an im portant role in m aintaining and developing market access. Confidence in the residue status of the dom estic food supply is provided by the NRS as a flow -on from its export responsibilities. In addition, the dietary exposure of Australian consumers to chemical residues in food is

m onitored by the Australian M arket Basket Survey conducted by the National Food A uthority. This survey analyses food after normal preparation procedures so as to reflect the levels of chemicals consumed in normal consum ption.

Some of Australia's major im porting countries require a governm ent residue m onitoring program in the country of origin as a condition of entry fo r certain products. This is particularly the case for meat exports to the European Union and the United States, w ith Japan, Korea and Canada also requiring assurance. Many other countries, including Asian countries where markets for Australian products are developing, are expanding their residue m onitoring capacity. The residue status of food is expected to become an increasingly im portant fa ctor in international trade. By dem onstrating the high standard of Australian produce,

NRS can underpin its 'clean' image in both dom estic and export m arkets, playing a major role in adding value to Australian produce and maintaining its com petitiveness.

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Vision

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To establish NRS as the coordinator of an integrated approach to national m onitoring and surveillance of residues and other contam inants in food, feed and fibre products in Australia, and as the provider of continually im proving, client responsive services of the highest quality and at a com petitive price.

Mission

To m onitor and assess the levels of chemical residues in raw com m odities produced by Australian agriculture and fisheries industries, and to give dom estic and international consum ers confidence in the quality and safety of those products by:

• identifying chemical residue problem s, their causes and possible solutions;

• providing an independent and authoritative audit of com m odities' chemical residue status; and

• providing scientific advice on the m anagement of chemical residue problems w hich contribute to the development of national chemical residue policy.

Key Clients

The Australian com m unity as a w hole benefits from NRS w ork. The key client groups, however, are Australian food producers (especially of export produce). These directly fund the NRS through levies and contributions, since they are the groups directly affected by residue-related food concerns, or restrictions imposed

on their ability to export Australian produce to certain markets.

From the standpoint of accountability and technical advice for Government, the M inister and the various areas of the Departm ent are the primary clients. W hile Government requires the results for use in trade negotiations w ith foreign

governm ents, it contributes to the running of NRS through its com m unity service obligation (CSO) funding from Com m onwealth appropriation for Government business.

Operating Environment

NRS is administered by the Bureau of Resource Sciences (BRS), w ithin the Departm ent of Primary Industries and Energy (DPIE), and is managed in close cooperation w ith a range of agencies:

• agricultural and fisheries policy and international policy areas in DPIE;

• Australian Quarantine and Inspection Service (AQIS), w hich is responsible for the inspection of food produced in Australia and th a t im ported from overseas and for much of the collection of NRS samples;

• the Agricultural and Veterinary Chemicals Policy Section of DPIE;

• the National Registration A u th o rity (NRA), w hich registers agricultural and veterinary chemicals; and other Com m onwealth departm ents and authorities responsible for consumer health, environm ental contam ination, food

standards, analytical services, chemical use, trade, and animal, plant and fisheries management;

• State and Territory authorities responsible for agriculture and fisheries;

• industry bodies representing producers, processors, merchants and exporters;

• scientific organisations involved w ith chemical residue issues; and

• Codex Alim entarius Commission (Codex), a United Nations program that develops recom m endations for international food standards.

History

NRS was established in the early 1960s as the C om m onw ealth's response to grow ing concerns about pesticide residues in key meat export m arkets. NRS was subsequently expanded to cover a wide range of food com m odities including grains, fru it and vegetables, dairy products, eggs and honey, as w ell as meat destined for the dom estic market. By the late 1 980s the size of NRS had greatly expanded and, by 1994-95 , over 75 000 samples of produce were analysed annually for about 4 0 0 residues and contam inants. NRS results are measured against maxim um residue lim its (MRLs), w hich are set as standards or residue tolerance levels for registered agricultural and veterinary chemicals, and

maximum perm itted concentrations (MFCs) for environm ental chemical contam inants, such as lead or mercury.

The program was fully funded from appropriation from the early 1960s until partial cost recovery from industry was introduced in 1987. The rate of recovery was initially set at 50% from October 1987 and increased to 60% from October 1988.

Consistent w ith its policy on other programs where industries are the main long­ term beneficiaries, as part of the 1 992-93 Budget, the Com m onwealth Government announced the introduction of full cost recovery for NRS from 1 July 1993. This involved the passage of legislation to introduce NRS levies and to set up the NRS Adm inistrative Arrangem ents. The A ct and 1 7 individual levy acts were passed in December 1 992.

The National Residue Survey A dm inistration A c t 1992 was amended in 1 994 to include animal feed and fibre products as part of NRS's m onitoring role.

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CONTACTS

NRS Reports and other publications are available from :

National Residue Survey Bureau of Resource Sciences PO Box E1 1 Queen Victoria Terrace

PARKES ACT 2 6 0 0

Street address: National Residue Survey Industry House Cnr National C ircuit and Brisbane Avenue

BARTON ACT 2 6 0 0

Phone: 06 272 3 4 4 6 Fax: 06 272 4 0 2 3

Enquiries about this report can be made to the Acting Director of the NRS.

CORPORATE OVERVIEW

ACTING DIRECTOR'S STATEMENT

Highlights during the year were:

• Monitoring programs: Meat continued to be the main com m odity sampled, com prising tw o -th ird s of samples. Overall, tw o-and-a- half tim es more samples were tested in the year under review than in 1993-94. Random testing doubled and targeted testing tripled. Grains m onitoring of exports re-commenced and is integrated w ith industry quality assurance programs.

• Chlorfluazuron (CFZ) testing: This became a major program during the year. S taff were deployed from ongoing w ork to deal effectively w ith the episode and its increased reporting demands.

• Drought recovery program: An intensive random survey was conducted in States where extreme drought forced producers to seek alternative fo o d stu ffs fo r stocks.

• Laboratory Proficiency Testing: Because a laboratory proficiency testing scheme had been established and implemented by NRS in 1 9 93-94 , rapid extension of the process to CFZ laboratory testing could occur, together w ith assessment of laboratory performance.

• Data Management and Information Analysis: The number of samples being tested w ith in the US requirem ent of 35 days (from sample data to laboratory report) increased from 92% (in 1993-94) to 100% . NRS developed data management and reporting systems where te st results are directly reported to the grain industry w ith in tw o weeks of product sampling.

• Advisory/Consultation Processes, and Review: A priority identified by industry was for their representative bodies to have input into cross-sectoral expenditure, service provision and funding processes. A regular review process was developed w ith the grains industry, measuring against key performance indicators. It is planned that similar programs w ill be developed w ith each sector in 1 9 9 5 -96. Preliminary w ork for an evaluation of NRS was undertaken in 1994, and an interim report was provided; a number of changes to adm inistrative practices have been adopted as a result. The evaluation w ill be finalised when NRS has adjusted to the changes associated w ith the introduction of full cost recovery.

• Accountability to Industry Clients and Government: A full financial review and audit was undertaken by the Australian National A udit O ffice (ANAO), and a system atic review of all NRS finances was undertaken. This led to rigorous financial management, and specific allocation of industry expenses to the industry concerned; the net result is an efficient allocation of funds and improved focus on industry service delivery. NRS also took over the data and financial management of AQIS-targeted programs.

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• Technical Advice: NRS continued to support exports o f agricultural and fisheries products by providing assurances to im porting countries on the residue status o f A u stralia's products; and also continued to provide scientific support and advice on a range o f issues relating to food safety.

• Communications: A regular reporting program, of industry trends in results and financial inform ation, was established w ith the Australian Cattle Council in 1 9 9 4 -9 5 , and w ill be expanded in 1995-96 and extended to other industries. It has been agreed th a t a com prehensive com m unications program directed to clients and stakeholders w ill be im plem ented in

1995-96. For clients this w ill be in the form of im proved servicing through peak industry body annual general meetings (AGMs);

• Extension of monitoring services to more industries: A considerable e ffo rt was directed to w a rd s reversing the dram atic reduction in NRS horticultural programs th a t occurred in 19 9 3 -9 4 as a result of the introduction of full cost recovery. In 1 994-95 the onion industry joined the program , and the macadamia nut grow ers indicated they w ould join once funding

arrangem ents w ere in place. The deer and emu industries joined during the year due to the need to obtain export certification. The fishing industry agreed to some changed species and volumes for sam pling based on NRS

findings and recom m endations; w ild-caught fish industries joined the survey; and

• Human Resources: In March 1995 Dr Norm Blackman resigned after nearly eight years as D irector. Dr Blackman guided NRS through a series of d iffic u lt and sensitive issues, the best examples of w hich are full cost recovery legislation and the establishm ent of the proficiency testing program. Dr Terry Nicholls, o f the Anim al and Plant Health Branch of the BRS, has been A cting

Director since M arch. A ction to appoint a new D irector, and fill some new positions, including th a t of a residue chem ist, are underw ay.

NRS's value to participating industries, in trade terms, is being increasingly recognised. The sm ooth introduction of full cost recovery and accrual accounting in 1 9 9 3 -9 4 provided the means for efficient client focused service developm ent in 1994-95 . Staffing initiatives currently under w ay will further

improve the quality and efficiency of the services provided to NRS clients.

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Terry Nicholls 20 September 1995

GOALS FOR 1994-95 IN NINE KEY RESULT AREAS 8

1. To effectively im plem ent and adm inister broad-based m onitoring programs and targeted residue testing surveys on behalf of industry clients.

2. To maintain and extend NRS proficiency testing, w hich provides a laboratory performance rating service for the benefit of industry and other governm ent residue testing programs.

3. To enhance NRS database management system s to provide for more effective com m unications between DPIE, States and industry systems, so as to improve data reporting capabilities to aid management decisions.

4. To extend form al advisory and review processes, including means for

participating industries to input into decisions on expenditure, and the taking of action follow ing outcom es of reviews and advice received.

5. To maintain financial accountability to industry clients through the flexible management of the Trust Account, and meet their needs, w hile continuing to meet Government requirements.

6. To extend activities so as to w ork tow ards becoming a national focal

point for technical advice and support on residue matters to Government and industry, and to be considered technical experts in international fora.

7. To introduce more effective com m unication to promote NRS methods and results to clients and stakeholders.

8. To extend NRS services to include a significant number of fisheries and horticultural products in NRS m onitoring programs.

9. To manage human resources effectively to achieve the above goals.

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COSTING AND USER CHARGING POLICY

Funding Sources

Funds for the operations o f NRS are provided from four sources:

• levies paid by participating industries (the main source) along w ith any associated income earned from short-term investm ent of those funds;

• funding appropriated by the G overnm ent fo r NRS's "G overnm ent Business" activities (under com m unity service obligations w hich include providing policy and technical advice to the M inister and Department on residue issues; NRS participation in other Governm ent programs; coordination of State survey activities; and contributions to meetings of the national Standing Com m ittee on Agriculture and Resource Management, and international Codex com m ittees);

• direct contributions (for example, for survey w ork undertaken for non-levy paying industries); and

• payments from proficiency testing, sale of services or prepared materials, and from fees charged for the supply of inform ation.

Adm inistration of these funds is through the N ational Residue Survey A dm inistration A c t 1992. This A ct established a Trust A ccount fo r the purposes of Section 62A of the A udit A ct in w hich moneys collected from NRS levies or penalties, Parliamentary appropriations, g ifts or contributions and income from

investm ents are held. The Trust A ccount allows fle xib ility to deal w ith under- or over- recovery of costs of NRS for a particular com m odity by allowing the balance to be carried forw ard into the follow ing year.

The A ct also prescribes the purposes fo r w hich payments from the account can be made. It requires an expenditure program to be approved by the M inister, and the provision of an annual report to Parliament on the Trust Account operations.

In addition, there are 17 levy im position A cts of Parliament w hich may impose a levy on producers o f various animal or plant food com m odities. As far as practicable, these NRS levies fall due in the same form and at the same stage of the production and marketing process as do other existing levies. The levy rates can be set by regulations under the various levy im position acts w hich relate to the National Residue Survey A dm inistration A c t 1992. Some are set at nil where other funding arrangements are more appropriate or the com m odity is not

included in the NRS. DPIE's Levies Management Unit collects these levies on behalf of NRS for a fee.

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Charging Policy

The user-pays full cost recovery policy, w hich is the basis fo r the establishm ent of the Trust A ccount and the N ational Residue Survey A dm inistration A c t 1992, provides the guidelines to:

. set and review the rates of levy for existing participants in NRS;

• establish the cost of "extra-ordinary" w ork undertaken for a participating industry, i.e., that w hich is in addition to the basic w ork program provided for from the existing revenue base; and

• set and recover the cost of tasks undertaken for non-participating industries or for external agencies or organisations, including other governm ent bodies.

The basic policy underlying cost recovery in NRS is that in the longterm expenses m ust be equal to revenue received. It is not a function of NRS in its Trust Account to make a profit or sustain a loss in any w ay, or to subsidise the activities of a particular industry or the Government.

The Trust A ccount is managed on an accrual accounting basis. This provides for improved transparency of the financial and adm inistrative accountability of NRS. Industry funds are held in tru st, as a liability NRS has to the particular industry,

until they are required for NRS operations relating to th a t industry.

The Trust A ccount is managed in accordance w ith the requirements of the A u d it A c t 1901, the Finance Regulations and Directions, and the DPIE Secretary's Instructions. In parallel w ith this, NRS is obliged to be fully accountable to the industries or organisations funding its activities.

W ork undertaken for any client m ust be in accordance w ith the purposes of NRS as defined in the N ational Residue Survey A dm inistration A c t 1992, i.e.:

"... the m onitoring and reporting o f the level o f contam inants in fo o d products, anim al feed, or fibre products produced in Australia... "

For industries already participating in NRS and meeting the cost of the core survey program by levy or direct payment, additional costs w ill only be charged if an industry requests additional research or targeted testing. In such instances, a short-term means to fund the additional a ctivity can be to charge the cost against any surplus of revenue over expenditure held for the industry in the Trust Account.

Data and inform ation gathered as a result of NRS's activities are regarded as public property (subject to Freedom of Inform ation and Privacy A ct provisions). Summary data are available free of charge to participating industries, and to other agencies or groups on a fee-for-service basis.

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II

Business Approach

1 1

NRS is required to respond to changes in m onitoring programs and workloads in response to industry and governm ent requirem ents. NRS needs to be flexible and has an obligation to contributing industries to m inimise fixed infrastructure costs.

W ork such as laboratory services and data entry are procured from outside the organisation in preference to doing the w ork internally. This enables com petitive commercial rates and efficiencies to prevail w ith in a public sector fram ew ork. Similarly, one-off or transient w ork programs are done by consultancies or short­

term tem porary s ta ff unless an ongoing need is anticipated. This increases NRS's fle xib ility to respond to change.

Industry funds are managed on an accrual accounting basis and any funds not required for foreseeable com m itm ents are invested for the benefit of the contributing industries. Funds appropriated fo r the Governm ent business activities of the NRS are not invested. Investm ents are undertaken in accordance w ith requirements of the A u d it A c t 1901 and Finance Directions.

MAJOR ACTIVITIES AND OUTCOMES 1994-95 12

1. NRS Programs for Monitoring Residues

OBJECTIVE STRATEGIES TO JOINTLY

ACHIEVE OBJECTIVE PERFORMANCE MEASURES OF OBJECTIVE

To effectively manage the existing NRS programs, and to meet the needs of our clients while continuing to meet

Government requirements

• Undertake random sample surveys for all products, and ongoing review to ensure effective sampling

• Undertake targeted testing programs

• Present plans and results to EU, USDA and Canada

• Provide regular reports to overseas authorities and internal clients

e Provide information to the States (including traceback information)

• Turnaround times from sampling to presentation of test results, including time to transmit contraventions to States

• Quality (statistical validity) of key outputs delivered

• Level at which NRS program random sampling rates are met

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• Sampling costs and administrative costs as percentage of total annual costs

• Degree to which NRS program meets internal client and overseas market requirements

• Degree to which targeted testing programs identify properties or areas where problems exist

Random Sample Programs

In 1994-95, NRS continued to adm inister a broad-based m onitoring survey for participating industries. Products surveyed were:

• meat: beef, sheep, pig, goat, chicken meat, horse, buffalo, kangaroo, game goats and pigs, deer and emu; the last tw o joined during the year; • grain and milled products: wheat, barley, oats, sorghum, lupins, field peas, w heat flour and bran; export m onitoring re-commenced in July 1995; • dairy: bulk milk, sampling of w hich began at the end of June 1 994; • horticulture: onions, w hich joined during the year; and • fisheries products: crustaceans (lobsters, crabs and prawns); w ild-caught and

aquaculture fish (bluefin tuna, W estern and Southern rock lobster, Endeavour and Brown tiger prawns, Japanese tiger prawns, Saucer and Southern scallop, and Blacklip abalone); w ild-caught fish industries joined during the year.

Negotiations are underway to include freshw ater crayfish, possum, ostrich and macadamia nut programs in 1995-96.

Since July 1 9 9 4 laboratories undertaking the NRS Grains Program have established a very efficient sample handling and reporting record, and product sampled at the point of loading for export is consistently analysed and reported to NRS w ithin 1 20

hours from sample receipt date. The industry requested a tw o week reporting period so they could utilise the results in their quality assurance programs.

In 1 994-95 27 502 samples were collected. This was double the number of samples collected in 1 9 9 3 -9 4 and brought the total near to the pre-full cost recovery level. This increase was in part due to com m odity groups, such as grains and onions, finalising negotiations w ith NRS relating to full cost recovery

after a number had opted out in 1 9 9 3 -9 4 . A number of the small meat com m odities w hich joined during the year required NRS program participation as an essential requirem ent fo r export certification. (It should be noted th a t the halving of meat samples from 1992-93 to 1 9 9 3 -9 4 was mainly related to reduced sampling required for testing of organochlorines.) A three year comparison for all

products is show n in Table 1.

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Table 1: NRS Random M onitoring: Number o f samples tested Commodity 1992-93 1 9 9 3 -9 4 19 9 4 -9 5

Meat 28 582 13 440 19 770

Grain 1 939 196 5 530

Eggs 273 190 239

Dairy + 245 - 170

Honey* 107 - -

Onions - - 293

Fisheries products 600 1 500 1 500

TOTAL 31 236 13 826 27 502

* lt should be noted th a t the honey industry now organises its ow n residue m onitoring, but it is planned tha t the NRS w ill audit their program in 1995-96.

+ NRS undertook testing for the dairy industry in 1992-93, and in 1994-95 an audit of their internal industry program.

NRS aquatic animals programs are funded by the fishing industry through non-levy arrangements. There are presently tw o com ponents:

• Cadmium survey of crustacean species, funded by a Fisheries Research and Development Corporation grant of $300 00 0 . This survey began in April 1993 and sampling and analysis were com pleted in m id-1995. In all, 2 7 0 0 samples of lobsters, prawns and crabs, were analysed (1200 in 1 994-95), and the results w ill be used by the fishing industry to prepare a submission to the National Food A uthority, relating to a review of the maximum perm itted concentrations (MFCs) of cadmium in crustaceans.

• Survey of residues in fisheries, funded by the Fish Industry Advisory Council ($102 500) and undertaken in 1994-95 . It analysed 3 0 0 samples for environm ental contam inants and, in aquaculture samples (tuna and prawns), for antibiotics. Updated reports are sent regularly to the industry and other interested areas of governm ent. This program is continuing through 1995-96 and is expected to become an annual NRS program.

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Titles of NRS programs and program laboratories are listed in Appendix A. Appendix B provides program definitions and approxim ate numbers of samples for 1994-95.

Targeted Testing

Targeted residue testing programs are conducted in addition to the main m onitoring surveys. These use the same infrastructure as the main survey but are funded and reported separately. They are in direct response to client needs. Emergency responses to residue contingencies also generate targeted testing programs.

A t least 50 279 samples were analysed through the targeted testing programs in 1 994-95 (over three tim es those in 1 9 9 3 -9 4 mainly because of the chlorfluazuron episode). This is alm ost double the 27 502 analysed in the random m onitoring survey. This larger sampling of at-risk properties, animals or products reflected the industries' desire to protect their markets by targeted programs. On the other hand, the random m onitoring survey provided ongoing assurance to overseas governments and the Australian public on the overall or national "big picture" incidence of agricultural chemical residues.

In 1994-95 there were three targeted testing programs:

• Targeted testing program for organochlorine (OC) residues in beef. The program (which comprises pre-export clearance testing from at-risk properties) is ongoing at industry request. 4 0 4 2 samples were collected in 1994-95, w hich compared w ith 13 917 samples in 1993-94. The reduction was due in part to the Queensland State Departm ent o f Primary Industries introducing a "te s t feedlot on ly" category and then progressively reducing the number of properties on this list as te st results became available. The program w ill be extensively modified in

1995-96 to increase the number of risk categories. Sample numbers w ill increase w ith the introduction of an additional "State m onitor" category;

• Chlorfluazuron (CFZ) testing. Chlorfluazuron (product name HELIX) is a chemical registered for use on cotton. Due to the severe drought in NSW and Queensland, cattle producers were forced to seek alternative sources of fo o d stu ffs and animals were fed cotton trash, pellets and stubble. Residues of CFZ were detected and identified in October 1994 during routine meat industry Quality Assurance, and industry and the Government quickly increased the level of testing to ascertain the extent of the problem, so as to contain it. The NRS provided proficiency testing, data management and reporting services throughout the episode. The NRS proficiency testing program enabled rapid extension of CFZ testing m ethods and assessment o f laboratory performance. 43 1 56 tests were performed by industry during the 1 994-95 financial year. Samples from 18 7 4 4 cattle properties tested free of any CFZ residues; samples from 215 properties contained CFZ residues below the legal lim it

(MRL); and samples from only 54 properties contained CFZ residues above the legal lim it. From November 1994 the 20 589 samples collected for CFZ were also tested fo r Fluazuron. Australia was the first country to register a new tickiside containing fluazuron. Targeted testing was implemented to avoid product containing residues being exported to critical markets.

ill

• Drought recovery program. The program was conducted during the second quarter of 1995 as an intensive random survey in the three drought affected states (Queensland, NSW and Victoria) where extrem e drought forced producers to seek alternative fo o d s tu ffs fo r stock. The prim ary aim was to detect any residues in beef w hich occurred as a result o f unconventional feeding

practices during the drought. 3081 samples were collected and analysed. The results of this survey were consistent w ith the previous tw o years' NRS m onitoring, and showed no results of concern.

Sampling Methods

A random sampling plan is norm ally used fo r NRS sampling, although the exact nature of the sampling varies slightly depending on the particular com m odity-chem ical com bination in question. Meat sample requests are com puter generated m onthly and forw arded to collection points.

In NRS random m onitoring, the annual sampling rate is norm ally based on blocks of 300 samples per com m odity-chem ical com bination per year. Many countries, notably the USA, use this sampling rate for dom estic residue monitoring

programs. It is founded on the statistical knowledge th a t 3 0 0 samples taken randomly from a large population w ill allow us to state (at 95% confidence level) that, when no unacceptable residues are found, the true number of unacceptable residues in the sample population is below 1 %. In small industries, where they

cannot afford to pay for 300 samples to be tested, smaller sample sizes are used each year to attain sufficient samples over a longer period. These are a compromise between statistical validity and cost, and the confidence level is below 95% .

The tissue w hich is sampled for analysis is th a t containing the greatest concentration of the residue for the chemicals being tested. It does not necessarily represent the product likely to be consumed. Pesticides in meat programs, for example, are assayed in fa t samples rather than muscle meat, and fru it samples are prepared including the peel. Animal faeces and urine are the

assay material for some tests. This approach is consistent w ith principles adopted by Codex.

The statistical sampling methods in place were acceptable to all industry groups and trading partners. NRS plans to publish further details of sampling m ethods and the basis for them for particular programs in 1 995-96.

Chemicals Included in NRS Programs

Com m odity-chem ical com binations are selected on the basis of risk profiles and only those com binations of highest risk are included in the program. In developing risk profiles, the main factors considered are: •

• international and dom estic perceptions of the com bination as a possible public health hazard; • the likelihood of residues occurring in the product (potential for misuse, persistence in the crop, animal or environm ent, extent o f use and use

patterns);

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• the extent (and results) o f previous m onitoring for the com m odity and chemical; and • to x ic ity of the chemical or its break-down products.

Other factors taken into account are the availability of a suitable sampling and analytical method, and the analytical cost.

Sampling Costs

The second year of operation of the Trust A ccount resulted in a more realistic outcom e for analytical testing costs than 1993-94 . (In 19 9 3 -9 4 paym ents for analytical testing did not commence until late August, so the full year expenditure was not indicative of a full year's operation). Analytical testing costs increased from about $2 million (or 57% of total NRS costs) in 1993-94 to about $3 million (or 53% of total NRS costs) in 1994-95. The spending on adm inistration costs rose sharply, reflecting an increase in programs, the continuation of com petitive tendering and a revised basis for expense allocation under accrual accounting

principles. Salary costs did not increase significantly.

Sample Collection

The physical collection of samples was undertaken w ith the cooperation of Com m onwealth field officers, State departm ents, and industry. A central receival and despatch fa cility for im proving sample coordination, and effectiveness and management of field and laboratory operations, was established during the year.

Presentation and Reporting of Program Results

In 1994-95 the 1994 results were used by AQIS in presenting 1995 Residue M onitoring Plans to overseas authorities. This included the EU (October), the USA's Department of Agriculture (January), and the Canadian Departm ent of Agriculture (June). Regular reports were also provided to internal clients follow ing analysis of the inform ation. Reports related to com m odity industry assurance, national and international policy and residue management, traceback of residue problems by regulatory authorities, and consumer awareness and assurance.

NRS data, and appropriate reporting softw are, was sent out on disk to DPIE regional offices, State departm ents of agriculture, and the Health Departm ent of W estern Australia. These organisations were only provided w ith data relevant to their ow n State or com m odity.

In all cases the reports presented showed that the Australian NRS program more than met the 1995 Residue M onitoring Plan, w hich was accepted by the USA's Department of Agriculture and the EU.

16

2. Laboratory Procurement and Proficiency Testing 17

OBJECTIVE STRATEGIES TO JO INTLY PERFORMANCE MEASURES ACHIEVE OBJECTIVE OF OBJECTIVE

To ensure the . Develop protocols for • Timeliness, cost and quality

scientific measuring ongoing of key outputs delivered

integrity of NRS laboratory performance analytical • Satisfaction of Industry,

results through • Introduce efficient and ΝΑΤΑ*, AGAL, RACI*, State

proficiency distinct proficiency testing and DPIE stakeholders with

testing which programs for both NRS the outcomes

also provides a testing and industry testing laboratory • Level of enhancement of

performance . Produce summary reports laboratory performance

rating service on NRS proficiency testing Australia-wide

for the benefit of arrangements industry and • Acceptance level by

other . Produce brochures on overseas countries of the

government NRS proficiency testing quality of NRS laboratory QA

residue testing arrangements programs, through their

programs laboratory audits

* ΝΑΤΑ - National A ssociation of Testing A uthorities. RACI - Royal Australian Chemical Institute

Before July 1993, the laboratory services required by NRS were almost exclusively provided by AGAL. W ith the move to full cost recovery and increased accountability to industry, as well as the increased emphasis on quality assurance, NRS put the provision of laboratory services out for tender for the first tim e in

1 9 9 3 -94. This process in the year under review was therefore in its second year.

Analytical test results m ust be validated to ensure their scientific credibility and acceptance by the industry and by overseas markets. The primary responsibility for data quality assurance and proficiency testing of laboratories rests w ith NRS.

To oversee this aspect, NRS maintains the Accreditation and Proficiency Testing (ART) Com m ittee, chaired by the Director of the NRS. Membership comprises professional chem ists from ΝΑΤΑ, AGAL R&D Section, a nominee of the Royal Australian Chemical Institute (RACI) and a professional officer of NRS.

Proficiency testing allows laboratories to qualify to tender for NRS work by dem onstrating their technical com petence in the tests required. Laboratories are assessed on the results they achieve in analysing either spiked (chemicals added to uncontaminated product) or incurred (residues accumulated during growth)

samples. NRS requires th a t laboratories under contract undertake ongoing proficiency testing, and testing through 'check samples', fo r the duration of the contract.

Some laboratories participate in NRS proficiency testing w ith o u t seeking NRS contracts, to m onitor and improve their ow n capabilities in comparison w ith other Australian laboratories. They have an interest in sharing the benefits of good laboratory infrastructure and quality assurance fo r all Australian residue testing.

Participating laboratories pay a fee to cover the costs of sending samples to them

and preparation and printing of reports. A t the end of 1 9 9 4 -95, in addition to the one Com m onwealth, tw o State and three private sector laboratories currently engaged for NRS contract w ork, about tw e n ty-e ig h t other laboratories were

actively involved in NRS proficiency test programs covering a wide range of agricultural, veterinary and environm ental chemicals in meat, grain, eggs and dairy products (see Appendices A and B).

NRS requires that, in addition to proving their proficiency in programs of tests, contracted laboratories should be accredited w ith ΝΑΤΑ or an equivalent body. This provides assurance th a t a contracted laboratory has proved to ΝΑΤΑ assessors, w ho are also professional peers, th a t it is perform ing to an acceptable standard, and has in place the people, equipm ent and laboratory system s required for accreditation. ΝΑΤΑ also provides a channel whereby NRS proficiency test results can be reviewed in detail w ith the laboratory, and technical m atters bearing on laboratory m ethods and quality assurance can be dealt w ith in an appropriate environm ent of confidentiality and accountability.

Tenders are awarded on the basis o f tested laboratory performance and value for money, taking account of tender inform ation, price offered and tim eliness of previous results. Since proficiency testing has begun there have been three tender processes and the standard of tenders has improved. NRS is satisfied th a t good laboratories are being selected.

In response to the need fo r AQIS to recognise laboratories to undertake targeted testing of beef for various residues, the existing proficiency testing arrangements are being expanded. Laboratories m ust maintain a current record of proficiency if they are to be recognised by AQIS, and offer fast turnaround residue tests in support of "te st and hold" programs for cattle delivered to abattoirs from listed at-risk properties.

The fa ct th a t the proficiency testing method had been established and implemented in 1993-94 enabled rapid extension of the process to develop CFZ and fluazuron testing methods and assessment of laboratory performance when urgently required.

The Australian beef industry is looking increasingly to the application of NRS proficiency testing when selecting laboratories to undertake w ork for industry participants.

Proficiency tests in 1994-95 included laboratories from New Zealand.

The quality assurance and proficiency testing regime in NRS laboratories has been favourably received in the course of periodic review visits of authorities from Australia's overseas m arkets. Laboratories and establishm ents (abattoirs) participating in NRS programs were assessed by technical reviewers from the USA, Canada, Japan, Korea and China, during 1994-95.

Revised editions of NRS proficiency testing program, reports on the tests and leaflets on developments such as tests for chlorfluazuron, have documented the developments in NRS proficiency testing program in 1994-95 .

18

Gains Resulting from the Reforms 19

NRS has achieved a number of benefits fo r its stakeholders by implem enting the com petitive tendering and proficiency testing arrangements described above.

Across the range of current programs, NRS has retained the com petitive pricing of analytical costs achieved in the previous year. This ranges from $ 1 9-$ 1 20 per test, depending on the type of program. A number of programs have continued to be enhanced by w idening the range of analyses covered,

particularly in the random survey tests. As in the previous year, there was a considerable reduction in the number and cost of tests, as m ulti-screen tests reduced the number of physical tests perform ed.

The collection and handling of samples, and the reporting of results by laboratories, has been achieved in a tighter tim efram e. Due to contractual obligations of laboratories NRS has been able to specify tig h t tim ing fo r the reporting of results. This facilitates prom pt traceback to the relevant farm of origin when samples are shown to contain significant residues; the tim e savings w ill be detailed in the Data

Management section of this report.

A w ide com m unity of laboratories now have a technical and business com m itm ent to the current NRS performance. In 1 9 9 4 -9 5 , laboratories contracted to NRS proposed, or im plem ented, technical innovations in program and te st design

capable of yielding better results and cost savings in several areas.

Through its substantial com m itm ent of resources to accreditation and proficiency testing and transparent laboratory tendering arrangements, the NRS has sought to improve the quality of laboratory performance and obtain best value for money.

The benefits are being felt by the laboratory sector, NRS and, ultim ately, the Australian com m odity producers whose markets rely on effective residue m onitoring and im provem ent of farm practice relevant to minim ising residues.

Specific Industry Proficiency Testing Approaches:

The number of laboratories and the scale of programs available for contract is sufficient to support proficiency testing in the meat, grains, dairy and eggs programs.

D ifferent approaches to determ ination of proficiency are applied to the smaller com m odity programs; these match the total resources available fo r residue testing for their products. For example a specialised approach is being developed

for the horticulture industry, and the fishing industry has its ow n proficiency testing approach. The three contracted laboratories for the fisheries program, AGAL NSW, Victorian State Chem istry Laboratory, and Centaur International, performed well and w ith in the required turnaround tim e. Trace element analysis

is subject to quality assurance procedures. 1 5% of the samples are pre-tested, standard samples are tested at random and results of concern are re-tested, sometimes by a different laboratory.

3. Data Management and Information Analysis 20

OBJECTIVES STRATEGIES TO ACHIEVE PERFORMANCE

OBJECTIVES MEASURES OF

OBJECTIVES

1: To enhance NRS data • Support the consultancy on • Action on

management systems to effective integration of recommendations

provide for more effective Commonwealth, States and of the consultancy

communications between industry data DPIE, States and industry systems so as to improve • Establish a basis for data reporting capabilities commencing production of to aid management systems to effectively integrate

decisions the various databases in

Australia

2: To provide on-going . Provide support for NRS • Effectiveness of

support relating to programs support for

existing databases programs

3: To review the • Review system and develop • Time saving from

improvements in the simplified automated automation

database system, and processes

develop databases relating to new • Develop new systems and • Effectiveness of

innovations processes to cover new new and existing

innovations such as lab systems

performance , MRLs, and performance reporting

National Database System Consultancy

The NRS managed a project to assess user needs and expectations for a national residue management database on behalf of the Cattle Council and the Residue Management Group (RMG). The latter was established w ith in the Departm ent in 1993-94 to oversee management of residue issues. The project identified a strong need for such a fa cility and produced a Feasibility Study report containing recom m endations for the establishm ent of a Quality Assurance and Risk Management system , know n as QARM. The study has developed a Functional Specification for system requirements and a business plan for developm ent and

operation w hich have been endorsed by the RMG and the Agriculture and Resource Management Council of Australia and New Zealand (ARMCANZ). It is proposed th a t tenders w ill be let for the establishm ent of QARM and the system w ill be operational in 1 996. As the system is not yet developed, it has not been

necessary for NRS to take any follow -on action.

Efficiency and Effectiveness of Data Reporting

The m anagement of results of the analytical tests undertaken in the year, w hich comprised 77 781 samples (two-and-a-half tim es the 29 443 samples tested in 1 993-94), continued to be conducted centrally by NRS w ith its ow n com puter

di

systems. The system managed the increased w orkload and the crisis demands of the CFZ episode w ell.

S tatistically based random sampling programs and sample request form s were generated and despatched to sampling sites. Sample collection details from the sampling sites were returned to NRS. The sample details were then data processed and m atched to analytical results w hich were received electronically

from the laboratories.

In May and June 1 9 9 4 the turnaround tim e from sample data submission to laboratory report date was 92% w ith in the US stipulated 35 days requirement. In 1994-95 this im proved to 100% compliance.

The data are stored and managed to produce survey results to specific reporting requirements. Reports can be generated in a number of w ays. For example, test results can be reported against regulatory MRLs in Australia or those of some major im porting countries. Survey results are reported on particular com m odities, chemicals, sample origins or collection dates.

NRS com puter programs validate sample data before entry into the database, autom atically generate invoices for laboratories and generate reports, ensuring the integrity of the inform ation. Electronic transfer of data and invoicing has improved the timeliness of reporting.

NRS data, and appropriate reporting softw are, were sent out on disk to all client com m odity groups w ith NRS programs, other than the Grains industry, and to relevant governm ent organisations. These organisations were only provided

w ith data relevant to their ow n State or com m odity. Data on the OC program were also sent electronically in 1994-95 .

In the Grains Program reports on results were initially faxed to industry clients manually but, during 1994, NRS developed an autom atic report generation and faxing system . The main savings benefit of this autom ation has been in a

reduction in NRS s ta ff input to report on a daily basis. This system was developed w ith the grains industry so as to integrate w ith their quality assurance programs; NRS developed data m anagement and reporting system s where te st

results are directly reported to grain industry cooperatives w ith in tw o weeks of product sampling.

Due to the need to establish new system s for CFZ, and performance reporting, as w ell as resource lim itations, the review of the im provem ents to the database system was not undertaken system atically as planned w hen setting objectives,

but on a needs basis in the light of related innovations.

21

Ill

22

4. Advisory/Consultation Processes and Review

OBJECTIVES STRATEGIES TO ACHIEVE

OBJECTIVES

PERFORMANCE MEASURES OF OBJECTIVES

1: To have visionary and • Establish mechanisms for • Outcomes of

strategic advice about NRS stakeholders in the NRS to meetings held with

directions and priorities from outside advisers, and to have advise on strategic directions stakeholders a formal means for • Establish mechanisms for • Stakeholder

participating industries to participating industries to satisfaction with

input into decisions on review and provide input into formal consultation

expenditure NRS management and

funding processes

processes

I

2: To have a means whereby • Establish a mechanism for • Level of

each industry can have input views of industry groups to be implementation of to NRS without prejudicing obtained, by someone who is proposals developed j

impartiality not privy to commercial

information

cooperatively by NRS, and industry

3: To complete the general • Implement agreed • Level of

review of NRS recommendations of NRS

Review

implementation of recommendations from review process

Advisory and Consultation Processes

As industry pays for all services, it is essential that consultation occurs in the development and amendment of any program.

|

Consultation occurred w ith the industries regarding advisory mechanisms to provide NRS w ith both expert strategic advice and specialist industry input. The industry priority identified in this process was th a t they w ant to participate in all relevant NRS decisions w hich affect them. This includes cross-sectoral expenditure, and the development of systems and processes w hich are acceptable to them.

Bilateral consultation meetings were held during 1994-95 between industry groups and NRS to discuss services. However, a form al program w ill be developed during 1995-96, whereby each industry sector and NRS jo in tly agree to a performance indicators and measurement program.

f l|

This approach was developed effectively during the year w ith the Grains industry. An outline of the Grains Program is shown in Table 2:

I

23

Table 2: Grains Performance Indicators and Measurem ent Program Performance indicator Means of m easurement Frequency

• Timeliness of reporting 1. M onitored by NRS

2. Client surveys

Daily to m onthly Quarterly

• Q uality and form of

reporting

1. Client surveys 2. Feedback from Grains Week Quarterly Annually

• Appropriateness of chemicals m onitored (risk profile and targeting)

1. Client surveys 2. NRS technical review

Quarterly Annually

• Accuracy of te s t results 1. C onfirm atory independent replicated

testing ( 1-5% samples) 2. Independently replicated testing (10-1 5% samples) 3. Proficiency testing of labs w ith

incurred samples

Ongoing to ad hoc

Ongoing all year

1-2 rounds per year

• Statistical validity and

adequacy of sample numbers and method

1. NRS technical review 2. Client surveys 3. Benchmarking other surveys

Annually Quarterly Annually

• Efficiency of operations

(NRS provision of supplies etc.)

1. Client surveys 2. Unsolicited feedback from industry 3. Benchm arking w ith other NRS programs

Quarterly All year

All year

• Program costs versus program im pact 1. Review by Grains Council 2. Report to Parliament

3. M inisterial expenditure program approval

Annually Annually Annually

• Ratio of adm inistrative

to operational costs 1. Review by Grains Council 2. Report to Parliament 3. M inisterial expenditure program

approval

Annually Annually Annually

• Cost per test 1. Tendering of analytical testing

services

Biennially

General Review

Preliminary w ork for an evaluation was undertaken in 1 994, and an interim internal report was prepared in the year under review as an input into that evaluation. Although a number of changes to NRS adm inistrative practices have been adopted follow ing the interim report, further w o rk to com plete the evaluation has been deferred for tw e lve m onths. This w ill mesh the evaluation w ith the requirement to

review NRS legislation arising from the G overnm ent's National Com petition Policy decision. Delaying the finalisation of the evaluation w ill also provide tim e fo r the program to adjust to the changes associated w ith the G overnm ent's decision to introduce full cost recovery.

Recommendations of the review th a t have been implemented, or w ill be implemented next budget year are:

24

• that the NRS m onitoring role be continued; • that NRS's activities be more effectively coordinated w ith other food quality management activities in Australia. This goes beyond the responsibility of BRS management and has been referred to the D epartm ent's Food Safety

Management Com m ittee; • that there be more m onitoring of the latest national and overseas residue testing techniques and programs. This is planned for im plem entation in • 1995-96;

• that an effective com m unications strategy and tim etable be developed. This is planned for im plem entation in 1995-96; • that NRS publish annually its sampling strategies for all its activities. This is planned for im plem entation in 1995-96; • th a t there is a review of current sampling strategies. This is planned for

im plem entation in 1995-96; • th a t the strategy for proficiency testing be published. This has been completed in the year under review; and • that performance indicators be used as management aids for m onitoring. This

has commenced in the year under review for com pletion in 1995-96.

Reviews of Individual Industry Program operations

There are tw o w ays for NRS to obtain impartial view s on individual industry programs. The first is to employ an independent consultant. The second is for NRS to develop strong industry links and to report and seek feedback from

industry annual general meetings (AGMs).

The Grains industry has developed and reported client surveys as follow s:

• Because of the high level of industry involvem ent, the grains program is independently reviewed by a consultant to ensure th a t participating organisations/custom ers are satisfied w ith NRS performance. T w o reviews of the program were conducted in 1994-95.

• So far, all participants have stated that the program is operating satisfactorily, and industry acceptance is high. In the m ost recent review, tw o or three organisations have said that they are ’extrem ely satisfied’ or ’very pleased’ w ith the program, and have com m ented th a t the current program is a significant im provem ent on the previous residue system , and is providing meaningful results w ithin a workable tim efram e.

• Participants have advised that they are actively using the results to m onitor their operational use of pesticides. The new initiative of reporting actual results, instead of MRL pass/fail observations, has been extrem ely useful to those organisations. Many have commercial contracts specifying very low residue levels for certain pesticides.

In other industries form al surveys have not yet been undertaken. Currently the executive of the relevant industry organisations provide com m ents at the tim e when NRS expenditure and levy rates are reviewed, and these com m ents are used

in the ongoing internal review processes by NRS. Structured industry review programs for NRS operations w ill be developed in 1995-96 .

5. A ccountab ility to Industry Clients and Governm ent

25

OBJECTIVE STRATEGIES TO JO INTLY PERFORMANCE

ACHIEVE OBJECTIVE MEASURES OF

OBJECTIVE

To maintain • Flexibly manage the accrual • Extent to which clients

accountability to accounting system and Trust are satisfied with financial

industry clients, and to continue to meet Account accountability

Government • Manage the Chart of Accounts to • Extent to which

accountability meet government and industry government requirements

requirements. reporting requirements are met

• Process financial data in a way • Percentage of direct to

that meets public service accountability requirements indirect costs

• Attribute as high a percentage as possible of costs directly (rather than indirectly) to the industry incurring the expenditure

During 1994-95 , the NRS extended the use of the Sun financial inform ation system . This system allows NRS to report the status of the Trust A ccount to participating industries, and complies w ith Government reporting requirements

under Section 41 D o f the A u d it A c t 1901.

A ccountability to Industry

NRS operates as a business entity w ith in the BRS. These arrangements are consistent w ith the G overnm ent's com m itm ent to be accountable to paying industry clients.

Ad hoc financial reports, briefings, financial inform ation and technical advice were provided regularly to participating industries in the planning and reporting relating to the management of specific NRS programs. However, it was agreed during the year that this ad hoc approach w ill be replaced w ith improved industry servicing through peak industry body AGMs. Reports w ill be prepared in 1995-96 w hich w ill

analyse industry trends in residue analysis results along w ith financial inform ation on the utilisation of industry funds. A regular reporting program has, for example, already been established w ith the Australian Cattle Council in the year under review.

A ccountability to Government

A full financial review and audit was undertaken by the Australian National A udit O ffice (ANAO), and a system atic review of all NRS finances was undertaken. This has led to rigorous financial management and specific allocation of industry

expenses to the industry concerned. The net result is an efficient allocation of funds and improved focus on industry service delivery.

In the year under review 63% of costs were direct and 37% indirect; this compares w ith 69% direct and 31 % indirect in the previous financial year. However, 14% of the 1994-95 indirect expenses relate to the accrual accounting recognition of resources received free of charge; this compares w ith 2% in the previous financial year. A listing of these item s is at Note 1 9 of the financial statem ents.

Total overheads comprise indirect salary expenses and indirect adm inistrative expenses. The total of overheads fo r 1994-95 was $2 118 212; this compares w ith $948 708 in the previous financial year. The rise is directly in line w ith the total program expenditure increase from $ 3 .59m to $ 5 .63m .

The dram atic rise in adm inistrative expenses from $637 190 in 19 9 3 -9 4 to $1 625 936 is due to the inclusion of $769 756 fo r resources received free of charge. M ost of this increase relates to AQ IS's collection of meat samples, w hich is a notional paym ent amount; it does not involve the transfer of any funds as industry already pays AQIS for this service. The remainder of the increase is due to support costs for managing a larger program base.

Internal Payments within DPIE

In 1994-95, tw o areas of DPIE were paid service fees fo r costs incurred in relation to NRS:

• DPIE's Levies Management Unit was paid for collecting the levies on behalf of NRS; and

• BRS was paid fo r providing corporate management services and to meet the NRS share of corporate costs such as w orker's com pensation premiums paid to Comcare, telephone and postage charges, and the actual cost of expenses such as inform ation technology licence fees, recruiting, salary- related allowances and performance-based pay.

Payment was also made from the Trust A ccount to reimburse DPIE for the cost of s ta ff engaged in administering NRS. This included paym ent to the BRS for the core staff, and to other areas of DPIE for staff attached, tem porarily, to NRS for special projects.

During the year NRS took over responsiblity for data and financial management of AQIS targeted residue testing programs. The program is fully cost recovered.

Operating Surplus

For the 1994-95 financial year there was a zero surplus, as all unspent industry funds were transferred to the liability account "Industry M onies Held in T rust", which is included in the creditors' liability total.

2 6

6. Technical Advice

2 7

OBJECTIVE STRATEGIES TO JOINTLY ACHIEVE OBJECTIVE PERFORMANCE MEASURES OF

OBJECTIVE

To provide • Provide technical advice on • Timeliness and

general technical request to interested parties stakeholder

support and satisfaction with

assistance to the • Identify stakeholders who should information,

Government, have information so as to further advice and

overseas bodies, the aims of NRS, and to provide it support received.

the scientific to them

community, • Professional

industry bodies • Provide quality outputs on judgement by

and other technical issues relating to residue DPIE and

stakeholders. management stakeholders of

positive actions

• Provide technical advice in that resulted from

international fora. advice given

NRS continued to support exports of agricultural and fisheries products by providing assurances to im porting countries on the residue status of Australia's products; and also continued to provide scientific support and advice on a range of issues related to food safety. NRS provided support fo r national and international com m ittees involved in assessing issues relating to residues or other contam inants, to minimise the econom ic and trade im pact on individual industries.

NRS results and technical advice were provided in briefings for Australian delegations to the follow ing international Codex (FAO/WHO) Committees: Food Additives and Contam inants (March), and Pesticide Residues (April). NRS results

and technical advice were also provided in briefings to national Animal Health Sub­ Com m ittee meetings on Residues in Animal Products (October and June).

NRS also had input to meetings w ith delegations from Korea and Japan.

O fficers from the NRS met w ith officers from relevant governm ent departm ents in the USA.

NRS sample data were sent regularly to regulatory authorities responsible for the control of use of agricultural and veterinary chemicals in each State.

Ad hoc reports and technical advice were also provided regularly to AQIS, to other areas of DPIE (including the Residue Management Group), to the National Registration A u th o rity on Agricultural and Veterinary Chemicals, to State Departments of Agriculture, to the National Food A u th o rity, and to the Chemical

Safety Unit, Departm ent of Human Services and Health.

Approxim ately one person-year was used in providing technical advice about MRLs to enquirers. M ost enquirers were producers and exporters reconciling their Australian chemical usage and residues to the requirements of overseas markets.

Given the pressures of w ork in the operational areas of NRS and the lack of resources to produce the early reports desired by stakeholders and client groups, demand for technical advice was mainly met by phone and fax on an ad hoc basis, rather than through published reports.

7. Communication

2 8

OBJECTIVE STRATEGIES TO JOINTLY PERFORMANCE MEASURES ACHIEVE OBJECTIVE OF OBJECTIVE To introduce a • Table NRS Annual • Timeliness and quality of

communications Report for 1993-94 by delivery of key outputs

strategy and February 1995

timetable so as to • Client feedback (industry

more effectively • Provide NRS program groups, professional/

promote the NRS details for 1993 in scientific bodies,

methods and published format to be international trade and

results to clients available by March 1995 consumer bodies) through

and stakeholders; informal and formal contacts

and to have a . Provide NRS results in

regular means for fact sheets for each • Timeliness and stakeholder

effective industry satisfaction with information,

communication advice and support received

with all • Establish a

stakeholders communications network • Effectiveness of innovations

of key stakeholders, to receive a regular newsletter

• Produce 1991/2/3 results report

NRS considered com m unications a very high priority. The 1993-94 Annual Report was tabled in February and served as an excellent means of com m unication regarding the programs, approaches, and initiatives of the NRS.

Despite limited resources devoted to this area, in 1994-95 NRS provided considerable inform ation on outcom es, for inclusion in publications, to other areas of the portfolio and State Governments, and to the follow ing organisations: The Residue Management Group, Sheep Meat Council, Australian Cattle Council, Grains Council of Australia; Flour Millers Council, Queensland Pork Producers, National Food A uthority, National Registration A uthority, Australian Meat and Livestock Corporation, and the Australian Dairy Industry Quality Centre.

The video entitled S w eet as a Peach: Pesticides in Food, w hich was produced by NRS and Film Australia in the previous year, was incorporated in teaching kits produced to give balanced inform ation on chemical residues and pest control. The kit has been distributed to science teaching consultants and curriculum managers in each State. The response has been very positive and sales of the kit indicate an increasing distribution. Key industry groups are already using the kit in their training on chemical residues.

U nfortunately, because of the continuing focus on im plem entation of the new programs of full cost-recovery and proficiency testing, the CFZ episode and sta ff changes, com m unication was not given the priority envisaged at the start of the budget year. To this end it is planned th a t " NRS develop an annual operational

publication calendar, and a strategy fo r im proving the tim eliness and cost effectiveness of its publications program ". This was a recom m endation of the interim review com pleted during the year, and im plem entation is planned to begin in 1995-96.

Im plem entation w ill include:

• General public reports on results; • Reports on results for each com m odity; • This annual report; • Reports on specific issues generated by public attention or client request;

• C ontributions to industry new sletters and yearbooks; • Articles in national and State publications; • Reports in international publications; • Reports to residue managers;

• Proficiency testing reports; and • Factsheets and brochures.

The strategy w ill cover all sta ff, use of skilled professionals and client-focused inform ation transfer.

2 9

8. Extension of Monitoring Services to More Industries

OBJECTIVE STRATEGIES TO JOINTLY ACHIEVE PERFORMANCE OBJECTIVE MEASURES OF

OBJECTIVE

To extend NRS • Expand education and communication • Number and

services to activities with leaders in non-participating types of new

include a industries, so as to persuade them of the industries

significant number of fisheries and value of participation participating

horticultural • Produce, or sponsor production of • Positive

products in the .extension and awareness brochures for feedback from

NRS monitoring producers industry on

programs, as required by • Enhance the image of the NRS through

presentations

industry papers and presentations at

conferences, field days, etc.

Fisheries

Education sessions and discussion seminars were held with the Fishing Industry Advisory Council, the Australian Seafood Industry Council, and relevant individual industry organisations. As a result the fishing industry took on board NRS findings and recommendations, and agreed to fund the suggested basic sampling surveys

and the changes to species for sampling, which included introduction of wild-caught fish.

Negotiations are under way for the freshwater crayfish industry to join the survey in 1995-96. Industry is not required to increase the sampling as no trading partners currently require the results. However, as the EU has foreshadowed the need for residue testing for fish products soon, the industry is sensibly being proactive in providing insurance for future requirements.

Horticulture

Considerable consultation and education activities were undertaken during the year w ith in the horticultural industry. The onion industry began participation in NRS at the start of the year, and the macadamia nut industry indicated they w ould participate once funding arrangements had been implemented. The Apple and Rear and Citrus industries w ill undertake consultation early in

1995-96 regarding the developm ent phase of a residue testing program. Other horticultural industries stated they were considering joining the NRS so as to increase their level of m arket access through being able to provide such inform ation to potential customers.

Discussions w ith the industry led NRS to expect that horticultural testing would increase over the next year. In some cases this w ould be through testing by NRS, and in others by establishing an audit process fo r an existing program, such as already exists for the dairy industry. An audit process is to be applied to the honey industry m onitoring in 1995-96.

It was considered that w ork needs to be undertaken to assist analytical laboratories develop expertise in horticultural com m odity testing. The small sampling sizes do not allow economies of scale, so w ays need to be found to overcome this problem.

Meat

A number of the small meat com m odities required NRS program participation as an essential requirement for export certification, so considerable tim e was spent on negotiation and development w ith each industry so that the deer and emu industry programs could start during the year. Negotiations w ith the possum and ostrich industries have resulted in plans to introduce NRS programs for those industries in 1995-96.

3 0

9. Human Resources

31

OBJECTIVE STRATEGIES TO JOINTLY ACHIEVE PERFORMANCE OBJECTIVE MEASURES OF

OBJECTIVE

To ensure • Prioritise tasks so that only tasks • Staff performance

adequate and that can be completed effectively by appraisals

suitably skilled staff are available staff are undertaken • Level of completion

available to • W rite brief policies and procedures of tasks

undertake for staff operations and

tasks to administration where they are • Relevance of staff

achieve the specific to NRS development

goals and to training strategies,

ensure staffing • Devise staff development strategies and ability of staff to resources are which include mobility options, and move and be

utilised cost multiskilling of staff both inside and multiskilled without

effectively outside NRS. disrupting NRS

work

The NRS required a mix o f staffing, w hereby technical and scientific expertise was integrated w ith expertise in adm inistrative, financial, strategic and review activities. In 1 9 9 4 -9 5 , the NRS was managed by a Director supported by a sta ff of 17. It is planned that this w ill increase in 1995-96 to 22, w hich w ill be full

strength.

Where possible, major ongoing but variable tasks such as data entry and validation, provision of sampling supplies and packaging and freight services, were out-sourced to private suppliers procured under Departm ental guidelines. Consultancies and contractual appointm ents were used when overload occurred,

or if special projects were required, such as the production of reports.

In March 1995 Dr Norm Blackman resigned after nearly eight years as Director. Dr Blackman guided the NRS through a series of d iffic u lt and sensitive issues, the best examples of w hich are full cost recovery legislation and the establishm ent of the proficiency testing program. Dr Terry Nicholls, of the Animal and Plant Health Branch of the Bureau of Resource Sciences, was A cting Director since March.

A number of appointm ents to fill vacant positions, and some new positions, including the appointm ent of a residue chem ist, were planned. The new positions w ill ensure there are adequate s ta ff to undertake essential tasks as defined by industry and the Department.

A major planning m eeting, involving all NRS sta ff, was held in April and a revised organisation structure was developed. These staffing initiatives w ill further improve the quality and rigour of the services provided to NRS clients. Also, NRS offices are to be re-organised and re-furbished in the second half of 1995; s ta ff efficiency and output are expected to improve as a result.

FINANCIAL OPERATIONS

3 2

Background

NRS continued to consult w ith the Department of Finance, on the further development of its financial fram ew ork follow ing the introduction of full cost recovery, and the requirement for the NRS to operate as a Group 3 Trust Account from 1 July 1993. The NRS financial fram ew ork is the accrual accounting guidelines and procedures, coupled w ith requirements o f the A u d it A c t 1901, the

Department of Finance Regulations, and the Secretary's Instructions, w hich cover the manner in w hich financial matters are to be managed.

Substantial w ork was undertaken during the 1994-95 financial year tow ards im proving the necessary accounting environm ent to adopt the accrual accounting policies and procedures in the NRS. This included refining accrual accounting policies and procedures, valuing NRS assets and liabilities, enhancing com puter systems to support better accrual accounting, and developing a training strategy for the operational aspects of the financial management system.

These developments enabled the NRS to report to Government on a full accrual accounting basis for the 1994-95 financial year, in accordance w ith the requirements of the M inister for Finance's Guidelines fo r Financial Statem ents o f Com m onwealth A uthorities.

Auditor-General

INDEPENDENT AUDIT REPORT

To the Minister for Primary Industries and Energy

Scope

I have audited the financial statements of the National Residue Survey for the year ended 30 June 1995. The statements comprise:

. Statement of Financial Position

. Operating Statement

. Statement of Cash Flows

. Certification on Financial Statements, and

. Notes to and forming part of the Financial Statements.

The Departmental Secretary and Executive Director are responsible for the preparation and presentation of the financial statements and the information contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to the Minister for Primary Industries and Energy.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence

supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statements are presented fairly in accordance with Australian Accounting

Concepts and Standards, other mandatory professional reporting requirements and statutory requirements so as to present a view which is consistent with my understanding of the entity's financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Australian National Audit O ffice. G PO BOX 707. C anberra ACT 2601 elephone /06) 203 7500 Fax (06) 273 5355

Audit Opinion

In accordance with sub-section 41D(2A) of the Audit Act 1901, I now report that the statements are in agreement with the accounts and records of the National Residue Survey, and in my opinion:

(i) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards, and other mandatory professional reporting requirements the financial transactions and results, and cash flows, for the year ended 30 June 1995 and the state of affairs of the National Residue Survey as at that date, and

(iii) the statements are in accordance with the Guidelines for Financial Statements of Commonwealth Authorities.

I. McPhee Acting Auditor-General

Canberra 3 October 1995

National Residue Survey Financial Statements for 1994-95 Certification by the Departm ental Secretary and Principal O fficer

W e certify that the accompanying Statements have been prepared in accordance w ith the G u id elin es f o r F in a n c ia l

S ta te m e n ts o f C o m m o n w ea lth A u th o r itie s issued in M a rc h 1995 by the M in ister for Finance. These guidelines require compliance w ith A ustralian Accounting Standards and Concepts.

In our opinion, the attached accounts o f the National Residue Survey are drawn up so as to show fairly:

(a) the operating results for the financial year ended 30 June 1995;

(b) the financial position as at 30 June 1995; and

(c) the cash flows for the financial year ended 30 June 1995,

G.F. Taylor

Secretary

Department o f Prim ary Industries and Energy

B ill Geering

A/Executive D irector

Bureau o f Resource Sciences

J October 1995 ^ October 1995

3 6

National Residue Survey Operating Statement For the year ended 30 June 1995

1993-94

$

N E T C O S T O F S ER V IC E S

Operating expenses

Notes

1994-95

$

948,708 Employee expenses 2 1,011,254

637,190 Administrative expenses 1,625,936

2.007.842 Sampling and analytical testing 2 2.992.348

3,593,740 Total operating expenses

Operating revenues from independent sources

5,629,538

2,686,882 Revenue from Industry 4,294,557

66.068 Other 193.225

2,752,950 Total operating revenue from independent sources 2 4,487,782

(840,790) Net cost of services

R E V E N U E S F R O M G O V E R N M E N T

1,141,756

919,000 Parliamentary appropriations received 372,000

74,975 Resources received free o f charge 18 769,756

993,975 Total revenues from government 2 1,141,756

153,185 Surplus

E Q U IT Y IN T E R E S T S

0

N IL Accumulated surplus at beginning o f reporting period 153,185

153.185 Accumulated surplus at end of reporting period 153.185

This operating statement is to be read in conjunction with the notes to and forming part of the Financial Statements.

37

National Residue Survey Statement o f Financial Position As at 30 June 1995

1993-94 Notes 1994-95

$

C U R R E N T A SSETS

$

12,016 Cash 4 1,600,878

31,040 Receivables 5 28,950

2,152,059 Investments 6 3,050,000

21,052 Inventories 7 29,652

357.409 Other 8 134.850

2,573,576 Total current assets 4,844,330

N O N -C U R R E N T ASSETS

107.918 Property, plant and equipment 9 69.592

107,918 Total non-current assets 69,592

2.681.494 Total assets 4.913.922

C U R R E N T L IA B IL IT IE S

2,305,134 Creditors 10 4,503,648

57.257 Provisions 11 76.841

2,362,391 Total current liabilities 4,580,489

N O N -C U R R E N T L IA B IL IT IE S

9.212 Provisions 11 21.962

9,212 Total non-current liabilities 21,962

2.371.603 Total liabilities 4.602.452

309.891 Net assets 311.471

E Q U IT Y

156,706 Capital 13 158,286

153,185 Accumulated surplus 153,185

309.891 Total equity 311.471

This statement of financial position is to be read in conjunction with the notes to and forming part of the Financial Statements.

National Residue Survey Statement of Cash Flows For the year ended 30 June 1995

3 8

1993-94

$

C A SH FL O W S F R O M O P E R A T IN G A C T IV IT IE S

Notes 1994-95

$

4,598,513

919,000

49.185

5,566,698

Inflows:

Receipts from industry

Receipts from government

Interest received

6,348,291

372,000

100.269

6,820,560

842,712

2.527.913

3,370,625

Outflows:

Employee expenses

Other operating expenses

734,743

3.575.248

4,309,991

2.196.073 Net cash provided by operating activities 19 2.510.569

C A S H FL O W S F R O M IN V E S T IN G A C T IV IT IE S

N il Inflows: N il

2,152,059

31.998

2,184,057

Outflows:

Purchase o f investments

Payment for acquisition o f assets

897,940

23.767

921,707

12.184.057) Net cash used in investing activities 1921.707)

12,016 Net increase in cash held 1,588,862

Nil Cash at beginning o f reporting period 12,016

12.016 Cash at end of reporting period 1.600.878

This statement of cash flows is to be read in conjunction with the notes to and forming part of the Financial Statements.

3 9

National Residue Survey Notes to and forming part of the Financial Statements for the Year Ended 30 June 1 9 9 5

1. Statement of Significant Accounting Policies

(a) Basis of Accounting

The National Residue Survey (NRS) Trust A ccount was established as a Group 3 tru st account from 1 July 1993 adm inistered by the Bureau of Resource Sciences (BRS), D epartm ent of Primary Industries and Energy.

The D epartm ent is required to prepare financial statem ents for the NRS under a determ ination of the M inister for Finance pursuant to section 41 D of the A u d it A c t 1901.

The financial statem ents have been made out in accordance w ith the Guidelines fo r Financial Statem ents o f C om m onw ealth A uthorities, issued by the M inister for Finance in March 1 99 5 , w hich requires com pliance w ith relevant Australian Accounting Standards and Statem ents of Accounting Concepts.

The financial statem ents have been prepared on an accrual basis in accordance w ith the historical cost convention and do not account for changing money values or, except where stated, current values of non-current assets.

(b) Employee Entitlements

The salary and the associated costs of BRS s ta ff adm inistering the NRS are met from the T rust Account.

Employee entitlem ents payable to those s ta ff from 1 July 1993 for annual leave and long service leave are calculated on the basis of current salary rates and have been brought to account as provisions in the financial statem ents, the current provision being the estimated

am ount expected to be paid w ith in the next tw e lve m onths. Although employees do not become entitled to take long service leave until ten years em ploym ent in the Australian Public Service, the corresponding provision is calculated for employees based on the average of 3 year

service and 4 year service liabilities, based on the expectation that those employees w ill remain until long service leave benefits are vested.

The superannuation obligations of the NRS are discharged via contributions made to the Com m onwealth Superannuation Scheme and the Public Service Superannuation Scheme. These contributions are included as part of employee expenses in the operating statem ent

(see note 1 2).

4 0

(c) Property, Plant and Equipment

Property, plant and equipm ent balances consist of operational assets w ith an estimated useful economic life of greater than one year and a historical cost of $2000 or more and include purchased com puter softw are used for operational purposes.

Depreciation is calculated on a straight line basis on all property, plant and equipment at rates calculated to allocate the cost of these assets over their estim ated useful lives. Depreciation is calculated from the first day of the m onth in w hich the asset is purchased.

Profits or losses on disposal of property, plant and equipm ent are taken into account when determining the operating result for the year.

(d) Revenue

Revenue collected under Section 9 of the N ational Residue Survey (Adm inistration) A c t 1992 is deposited in the Consolidated Revenue Fund and then an equivalent amount is drawn from special appropriations and paid into the Trust Account.

Trade debtors, w hich include levies and penalties, are recognised when due in accordance w ith Section 9 of the National Residue Survey (Adm inistration) A c t 1992. Other debtors are recognised in accordance w ith commercial practice.

A provision is raised for any doubtful debts based on a review of all outstanding accounts at year end. Bad debts are w ritte n -o ff during the year in w hich they are identified.

(e) Other Creditors - Unearned Revenue

Industry funds fo r NRS activities are generally received by w ay of com m odity levies. The balance of monies standing to the credit of the Trust A ccount w ill be applied to future expenditure programs as agreed under provisions of the N ational Residue Survey

(Adm inistration) A c t 1992.

(f) Inventories

Inventories comprise consumable stores not held for resale and are valued at cost. Inventories are brought to account where the aggregate value of a particular store exceeds $5,0 0 0 or where an individual item has a value of greater than $1,000 . Costs are assigned to individual items of stock on a firs t in/ first out basis.

(g) Leases

4 1

Operating lease paym ents, where all risks and benefits of ow nership are e ffe ctive ly retained by the lessor, are expensed as incurred. During the accounting period there were no finance leases.

(h) Insurance

In accordance w ith governm ent policy, no insurance cover is taken out and losses are expensed as they are incurred.

(i) Taxation

The NRS activities are exem pt from all form s of taxation, except fringe benefits tax.

(j) Dividends

The Mem orandum of Understanding between the BRS and the Departm ent of Finance specifies th a t NRS is not required to pay a dividend.

(k) Segment Reporting

The principle a ctivity of the NRS is to m onitor, assess and report on the levels of chemical residues in raw com m odities produced by the Australian agricultural and fisheries industries. It operates solely w ithin Australia.

42

1993-94 1994-95

$

Operating Surplus

Operating surplus is derived after:

Crediting as Revenue

Revenue from independent sources

$

2,538,940 Revenue from industry 4,090,676

10,523 Penalty for late payment o f levies 13,283

115,669 Direct contributions 175,848

21,750 Proficiency testing fees 14,750

66.068 Interest from the investment o f industry funds 193.225

2,752,950

Charging as Expenses

4,487,782

948,708 Employee expenses 1,011,254

68,286 Depreciation 61,657

568,904 Other administrative expenses 1,564,279

1,511,570 Analytical testing 2,221,314

269,262 Targeted testing - cattle 215,915

90,670 Proficiency testing 190,737

136.340 Other operational expenses 364.382

3,593,740

Auditors Remuneration

Amounts receivable or due and

receivable by the Australian National Audit Office

5,629,538

10.000 for auditing the accounts.

The auditor received no other remuneration.

Cash

14.500

12,016 Cash in Trust Fund 1,526,450

N il Cash at Bank 74.428

12.016

Receivables

1.600.878

31,040 Other debtors 28,950

N il Less provision for doubtful debts N il

31,040 28,950

28,040 Receivables not overdue N il

Overdue

3,000 less than 30 days 5,000

N il 30 to 60 days 6,000

N il more than 60 days 17.950

3.000 28.950

1993-94

$

4 3

1994-95

$

Investments

2.152.059 Negotiable certificates o f deposit

Inventories

Materials and stores used for the collection

3.050.000

21.052 and transport o f samples

Other

29.652

25,024 Prepayments

Accrued revenue

28,240

315,503 Revenue from industry 13,654

16.882 Interest 92.956

357.409

Property, Plant & Equipment

134.850

329,642 Plant and equipment at cost 356,267

221.724 Less accumulated depreciation 286.675

107.918

Creditors

Current:

69.592

39,094 Trade creditors 359,964

2.266.040 Other creditors (See note 1 (e)) 4.143.684

2.305.134

Provisions

4.503.648

Provision is made for the annual leave and long service leave entitlements from 1 July 1993, for

the BRS staff engaged in the administration o f the Survey.

Current:

52,257 Annual Leave 74,987

5.000 Long service leave 1.854

57,257

Non-current:

76,841

9.212 Long service leave 21.962.

9,212 21,962

66.469 Total Provisions 98.803

4 6

B. FINANCIAL OPERATIONS (cont'd)

Fraud Control

The NRS operates under the fraud control plan of the Departm ent of Primary Industry and Energy.

The adm inistrative arrangements for the NRS involving additional responsibilities fo r financial management and the control of assets, have required the application of fraud management strategies for five areas identified as requiring scrutiny:

• Building security (high risk)

• Purchasing (including use of the Australian Government credit card) and paym ent of accounts (high risk)

• Investm ent of industry funds (medium risk)

• Asset control (medium risk)

• Access to com m ercial-in-confidence inform ation (low risk)

Key features of the overall strategy include: segregating duties to avoid individually carrying sole financial responsibility fo r transactions; enhancing the degree o f independent checks on financial transactions; and raising of the awareness of s ta ff in order to prevent fraud.

As insurance against external fraud NRS generates and reconciles invoices from the laboratories (its main service providers) against actual te st results received, thereby preventing double or unsubstantiated invoicing.

There were no instances of fraud detected during 1994-95.

4 7

TITLES OF NRS PROGRAMS AND PROGRAM LABORATORIES Appendix A

Laboratories shown against Programs (1) to (22) are those contracted for the w ork between January 1 9 9 4 and December 1 995. Laboratories show n against Programs (46) to (49) are those contracted during 1 9 9 3 -9 4 fo r w ork to be undertaken between July 1 994 and December 1995.

P r o g r a m t it l e C o n t r a c t l a b o r a t o r y

MEAT, DAIRY AND EGGS PROGRAMS

Prog 1 Antim icrobials for cattle, poultry, pigs, horses and eggs Centaur Internat.

Prog 2 Sulphonamides in cattle and pigs

Prog 3 Chloramphenicol in cattle, sheep and horses

Prog 4 N itrofurans in cattle and poultry

Prog 5 Dimetradizole in pigs and poultry

Centaur Internat.

AGAL (Tas)

Centaur Internat.

AGAL (Vic)

Prog 6 Stilbenes and Zeranol in cattle and sheep; AGAL (NSW, Vic)

Stilbenes in poultry & pigs, Trenbolone in cattle & sheep

Prog 7 Beta Agonists in cattle, sheep, pigs and emus AGAL (NSW)

Prog 8 Organochlorines, organophosphates, RGBs and AGAL (NSW, SA)

synthetic pyrethroids in cattle, sheep, goats, pigs, horse and buffalo.

Prog 9 Organochlorines, organophosphates and RGBs only Vic State Chem

in cattle, pigs, game pigs, poultry, sheep, kangaroo & Laboratory

game meat.

Prog 10 Cyromazine in sheep AGAL (SA)

Prog 11 Benzimidazoles in cattle and sheep AGAL (Tas)

Prog 12 Averm ectins and Ivermectins in cattle, pigs and sheep AGAL (WA)

4 8

P r o g r a m t it l e C o n t r a c t l a b o r a t o r y

S I

Prog 13 Closantel in sheep AGAL (Vic

Prog 14 Levamisole in cattle, pigs and sheep AGAL (Vic

Prog 15 Triclabendazole in cattle AGAL (Tas|

Prog 16 Metals screen in cattle, sheep, pigs, poultry and eggs AGAL

(NSW. Vic)

Prog 17 Azaperone in Pigs (This program discontinued in 1 995)

Prog 18 Testing of eggs for organochlorines & organophosphates Old State

Chem Lab

Prog 19 Pesticide residues in dairy products (differently contracted) (

Prog 20 1 9-Nortestosterone in cattle and sheep AGAL(NSW]j

Prog 21 Am itraz in cattle and pigs Analchem Bioassay

Prog 22 Melengestrol acetate in cattle AGAL (W ./

GRAIN PROGRAMS

Prog 46 Metals in w heat, barley, oats, sorghum, lupins and field peas

Prog 47 Carbamates, synthetic pyrethroids, methoprene and fungicides in w heat, barley, oats, sorghum, lupins, field peas and w heat flour and bran

Prog 48 Organochlorines (OC) screen in w heat, barley, oats, sorghum, lupins, field peas and w heat flour and bran

Prog 49 Organophosphates (OR) screen as in Prog 48

FISH PROGRAMS

Prog 101 Trace elements in crustaceans (lobsters, crabs & prawns)

Prog 102 W ild-caught and Aquaculture Fish Residue Survey

AGAL (NSWI

Analchem Bioassay P/L

Australian Analytical Laboratory (AAL

AAL P/L

AGAL (NSW)

AGAL (NSW)’ Vic Chem Lab, Centaur Internal.

4 9

MEAT, DAIRY AND EGGS PROGRAMS

Program 1 Antim icrobials for cattle, poultry, pigs, horses, deer, emu and eggs

The program is for a general screen for penicillins, am inoglycosides and tetracyclines on 7 0 0 bovine, 700 porcine, 50 deer, 10 emu, 100 horse kidney and 300 poultry liver samples and a general screen only on 70 egg samples.

Program 2 Sulphonamides in cattle and pigs.

The program is fo r analytical testing for sulphonamides on 6 0 0 bovine, 600 porcine liver samples.

Program 3 Chloramphenicol in cattle, sheep and horses.

The program is for analytical testing for chloram phenicol on 300 bovine, 300 ovine and 100 horse muscle samples.

Program 4 Nitrofurans in cattle and poultry

The program is for analytical testing for nitrofurans in 3 0 0 bovine serum and muscle samples and 50 poultry muscle samples.

Program 5 Dimetridazole in pigs and poultry

The program is fo r analytical testing for dimetridazole in 1 50 porcine and 50 poultry muscle samples.

Program 6 Stilbenes and Zeranol in cattle and sheep; Stilbenes only in pigs, poultry, horses and emu, and Trenbolone in cattle and sheep

The program is for testing :

Cattle: 300 liver samples, 200 urine samples and 200 faeces samples for Stilbenes and Zeranol; 1 50 liver samples and 1 50 urine samples for Trenbolone.

Sheep: 300 liver samples for Stilbenes and Zeranol; 300 liver samples for Trenbolone.

Pigs: 100 liver samples for Stilbenes only.

Poultry: 30 liver samples for Stilbenes only

Horses: 100 liver samples for Stilbenes only.

Emu: 10 liver samples for Stilbenes only.

Appendix B

PROGRAM DEFINITIONS AND APPROXIMATE NUMBERS OF SAMPLES FOR THE 12 MONTHS TO END JUNE 1995

Cattle: 300 urine samples.

Sheep: 300 urine samples.

Horse: 50 urine samples

Emus: 10 muscle samples.

Program 8 Organochlorines (OC), organophosphates (OP), PCBs and synthetic pyrethroids in cattle, sheep, goats, pigs, horse and deer.

The program is for testing:

Cattle: 1 500 fat samples.

Sheep: 1 0 0 0 fa t samples.

Pigs: 1 50 fa t samples

Goats: 100 fa t samples.

Horse: 100 fa t samples.

Deer: 50 fa t samples.

Program 9 OC, OP and PCBs only in cattle, pigs, game pigs, poultry, sheep, kangaroo, emu and game goat.

The program is for testing:

5 0

Program 7 B e ta A g o n is ts in c a ttle , s h e e p , h o rs e s a n d p ig s

T h e p ro g r a m is f o r t e s tin g :

Cattle: 1 500 fa t samples.

Pigs: 4 5 0 fa t samples

Poultry: 100 fa t samples.

Sheep: 1 0 0 0 fa t samples

Game Pigs: 100 fa t samples.

Kangaroo: 100 fa t samples.

Emu: 1 0 fa t samples

Game Goats: 100 fa t samples.

Sheep: 3 0 0 kidney samples.

Program 1 1 Benzimidazoles in cattle and sheep

The program is fo r testing:

Cattle: 3 0 0 kidney samples.

Sheep: 3 0 0 kidney samples.

Program 12 A verm ectins and Iverm ectins in cattle, pigs and sheep

The program is for testing:

51

Program 10 C y r o m a z in e in s h e e p

T h e p ro g r a m is f o r t e s tin g :

Cattle: 300 liver samples

Sheep: 300 liver samples

Pigs: 1 50 liver samples

Program 13 Closantel in sheep

The program is for testing:

Sheep: 300 liver samples.

Program 14 Levamisole in cattle, pigs and sheep

The program is for testing:

Cattle: 300 liver samples.

Sheep: 300 liver samples.

Pigs: 1 50 liver samples.

Program 15 Triclabendazole in cattle.

The program is for testing:

Cattle: 300 liver samples.

Program 16 Metals screen in cattle, sheep, pigs, emu, poultry and eggs

The program is for testing:

Cattle: 300 liver samples.

Pigs: 1 50 liver samples.

Sheep: 300 liver samples.

Emu: 10 liver samples.

Poultry: 50 liver samples.

Eggs: 100 samples

Program 17 Azaperone in Pigs (Discontinued in 1 995)

Program 18 Testing of eggs for OC and OP

The program is fo r testing 70 egg samples.

Program 19 Pesticide residues in dairy products

The program is for testing bulk milk for OC. OP testing introduced from 1.1.95

Program 20 1 9-Nortestosterone in cattle and sheep

The program is for testing:

Cattle: 300 urine samples.

Sheep: 300 urine samples.

Program 21 Am itraz in cattle and pigs.

The program is for testing:

Cattle: 300 liver samples.

Pigs: 1 50 liver samples

Program 22 Melengestrol acetate in cattle.

The program is for testing 300 beef fat samples.

5 2

GRAIN PROGRAMS

5 3

Program 46 M etals in w heat, barley, oats and field peas

The program is for testing 900 samples per year in w heat, barley, oats and field peas.

Program 47 Carbamates, synthetic pyrethroids, m ethoprene and fungicides in w heat, barley, oats, sorghum , lupins, field peas, w heat flour and bran

The program is for a "m u lti" screen annually of 900 samples of wheat, barley, oats, sorghum, lupins, field peas, and 50 samples each of w heat flour and bran.

Program 48 Organochlorines (OC) screen in w heat, barley, oats, sorghum, lupins, field peas, w heat flo u r and bran

The program is for an organochlorines screen, annually, of 9 0 0 samples of grains and fifty samples each of w heat flour and bran.

Program 49 Organophosphates (OP) screen in w heat, barley, oats, sorghum, lupins, field peas, w heat flo u r and bran

The program is for an organophosphates screen, annually, of 2 750 samples of grains and 1 50 samples each of w heat flour and bran.

FISH PROGRAMS

Program 101 Trace elements in crustaceans.

The program is for testing 1 200 samples in the year of lobster, crabs and prawns.

Program 102 W ild-caught and aquaculture fish residue survey.

The program is for testing 300 samples distributed over bluefin tuna (trace elements, pesticides, antibiotics); W estern and Southern Rock Lobster (trace elements); Endeavour and Brown Tiger Prawns (trace elements); Japanese Tiger prawns (antibiotics); Saucer and Southern Scallop (pesticides, trace elements);

and Blacklip Abalone (trace elements)

τ

ABBREVIATIONS

54

AAL Australian Analytical Laboratories

ACT Australian Capital Territory

AGAL Australian Government Analytical

Laboratories

AGMs annual general meetings

ANAO Australian National A udit O ffice

APT A ccreditation and Proficiency Testing

AQIS Australian Quarantine and Inspection

Service

ARMCANZ Agriculture & Resource M anagement

Council of Australia and New Zealand

BRS Bureau o f Resource Sciences

CFZ chlorfluazuron

chem. chem istry

Codex Codex Alim entarius Commission

CSO com m unity service obligations

DPIE Department of Primary Industries and

Energy

EU European Union

FAO Food and Agriculture Organization of

the United Nations

FOI Freedom of Inform ation

Internat. international

MRL maximum residue lim it

MFC maximum perm itted concentration

ΝΑΤΑ National Association of Testing

A uthorities

NRA National Registration A u th o rity

NRS National Residue Survey

NSW New South Wales

OC organochlorines

OP organophosphates

PCBs polychlorinated biphenyls

P/L Proprietary Limited

QA quality assurance

QARM Quality Assurance and Risk

Management System

Old Queensland

RACI Royal Australian Chem istry Institute

RMG Residue Management Group

R&D research and development

SA South Australia

Tas Tasmania

Vic Victoria

USA United States of America

W A W estern Australia

WHO W orld Health Organisation

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THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

PARLIAMENTARY PAPER No 341 of 1995 ORDERED TO BE PRINTED

ISSN 0727-4181

A61695 Cat. No. 9511199