Audit Committee

ITSA’s Audit Committee advises the Chief Executive and the National Management Board on a range of audit and financial practice matters. In addition to considering the results of the various internal and external audits and, importantly, the action subsequently taken to respond to and implement auditors’ recommendations, the committee monitors the application of, and compliance with, systems and frameworks for ensuring high levels of internal control, financial reporting, risk management and fraud control.

The Audit Committee has three members: an independent (external) Chairman and two ITSA senior executives.

The Audit Committee membership for the relevant periods of the 2010–11 financial year were as follows:

Mr Peter Kennedy PSM (Independent Chairman) – July to September 2010
Mr Peter McQuoid (Independent Chairman) – September 2010 – June 2011
Adam Toma (National Manager, Trustee Services and Audit Committee Member) –
July 2010 – June 2011
Pat Tragauer (Business Manager, Information and Registries and Audit Committee Member) – July 2010 – June 2011
Andrew Robinson (National Manager, Information and Registries and Audit Committee Member) – January to June 2011.

Values, conduct and ethical standards

ITSA’s strategic and operational plans and Enterprise Agreement play a key role in reinforcing the requirement for ITSA employees to uphold the Australian Public Service Values and comply with the Code of Conduct. Full details of initiatives conducted during 2010–11 are contained in the section Management of ITSA’s people (page 68).

APS Values, Code of Conduct and Ethical Behaviour

ITSA’
APS Values, Code of Conduct and Ethical Behaviour

ITSA’s Operational Plans and Enterprise Agreement play a key role in reinforcing the

requirement for ITSA employees to uphold the Australian Public Service (APS) Values and

comply with the Code of Conduct. The Values and the Code also are incorporated into

ITSA’s performance feedback scheme and as part of the generic capability framework

which is used as the basis for selecting employees.

Information on the Values and Code of Conduct is contained in induction material given

to each new employee and is posted on ITSA’s intranet. Formal procedures are in place

for investigating and determining breaches of the Code of Conduct and for handling

reports from whistleblowers.

During July 2010 the Australian Public Service Commission (APSC) conducted training

sessions in all ITSA sites on the Values and Code of Conduct. In addition, new managers

attended a Manager Toolkit workshop at the end of May 2011 which highlighted the role

of managers in educating employees about the Values and Code of Conduct

Information on the Values and Code of Conduct is contained in induction material given

to each new employee and is posted on ITSA’s intranet. Formal procedures are in place

for investigating and determining breaches of the Code of Conduct and for handling

reports from whistleblower
During 2010–11, operational business lines have continued to improve the consistency

of performance expectations through implementation of more comprehensive and

holistic performance measures. In addition to regular team meetings, one-on-one

feedback discussions take place with each manager providing role clarity and greater

support for employees
Management of ITSA’s people

In 2010–11, the key focus for ITSA’s people management involved working at the

team level to improve employee engagement and participation with a view to increased

productivity. This work was informed by the regular employee opinion survey which

was used to evaluate progress and determine improvement priorities for each team.

Leadership

During 2010–11, the continued focus on leadership at the team level, along with

greater standardisation of performance expectations, has resulted in a strong focus

on accountability for managers in terms of business outcomes and people issues.

The employee opinion survey was conducted in November 2010 with the rollout in

February 2011 of feedback to all managers on their leadership behaviours. This enabled

the identification of individualised leadership development and improvement targets.

Managers were also required to oversee the completion of team action plans aimed at

improving employee motivation and morale

AUDIT AND FINANCIAL PRACTICES COMMITTEE

The FMA Act requires chief executives to establish an audit committee to assist them in the

financial governance of their agency. ITSA’s Audit and Financial Practices Committee advises

the Chief Executive on a range of audit and financial practice matters. These include

consideration of the results of the various internal and external audits that were carried out

on ITSA’s activities and, importantly, the action subsequently taken to implement the auditors’

recommendations; and monitoring ITSA’s adoption of, and compliance with, appropriate

frameworks for internal controls, risk management, fraud control and financial reporting

1.6 AUDIT COMMITTEE

Policy

The Audit Committee is responsible for assisting the Chief Executive with responsibilities of corporate governance, particularly maintaining adequate internal controls over the revenue, expenditure and assets of the Department.

The Audit Committee has no executive powers. It undertakes a review and advisory role with the aim of ensuring financial management and control remains effective.

Rationale for Policy

Section 31 of the Financial Management Act 1996 requires the Chief Executive to be responsible for maintaining adequate internal controls including the safeguarding of the assets of the department, compliance with applicable legislation and the proper reporting of the financial results of the department.

Compliance with Legislation, Regulations and Ethics

regulations and the results of management’s investigations and follow-up of any non compliance or fraudulent acts;

Compliance with the Department’s Code of Conduct

review the Departments’ approach to business ethics and corporate conduct, written code of conduct and the programs in place for communicating the code of conduct to departmental personnel and for monitoring compliance;

Reporting Responsibilities

circulation of a brief report on outcomes to the Chief Executive following each Audit Committee meeting;
at any time, the Chief Internal Auditor or the Committee should bring to the attention of the Chief Executive any matter of concern;
review any other reports from the Departments’ that relate to the Committee’s responsibilities;

ther Responsibilities

investigate, review and advise on any ad hoc issues referred to the Committee by the Chief Executive;
monitor actions to address audit findings and recommendations until scheduled completion and advise the Chief Executive of any significant slippage in implementation;
provide a report to the portfolio Minister annually on operations of the Audit Committee, but can report at other times when considered necessary;
review this Charter annually and provide any proposed amendments for approval by the Chief Executive;
review the Audit Committee’s performance and compliance with its terms of reference, in response the Chief Executive, or at its own initiative to a request

FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997 - SECT 46

Audit committee
             (1) A Chief Executive must establish and maintain an audit committee with functions that include:
                     (a) helping the Agency to comply with obligations under this Act, the regulations and Finance Minister's Orders; and
                     (b) providing a forum for communication between the Chief Executive, the senior managers of the Agency, the internal auditors of the Agency and the Auditor-General.
             (2) The committee must be constituted in accordance with the regulations (if any).
Division 2—Performance audits

15 Agencies

(1) The Auditor General may at any time conduct a performance audit of an Agency.

(2) As soon as practicable after completing the report on the audit, the Auditor General must:

(a) cause a copy of the report to be tabled in each House of the Parliament; and

(b) give a copy of the report to the responsible Minister; and

(d) to the extent that the report relates to the operations of a Commonwealth partner—give a copy of the report to a director or senior manager of the Commonwealth partner.

(2A) The Auditor General may give a copy of, or an extract from, the report to any person (including a Minister) who, or any body that, in the Auditor General’s opinion, has a special interest in the report or the content of the extract.

(3) For the purposes of this section, an Agency is taken not to include any persons who are employed or engaged under the Members of Parliament (Staff) Act 1984 and who are allocated to the Agency by regulations for the purposes of the definition of Agency in section 5 of the Financial Management and Accountability Act 1997.

performance audit" , in relation to a person or body, means a review or examination of any aspect of the operations of the person or body.

misconduct at ITSA

Wednesday 29 August 2012

ITSA's Audit Committee