C1 Risk management and internal audit

The Directorate's risk management framework is based on the Australian and New Zealand Standard (43:60) and the AS/NZS ISO 31000:2009. The Directorate's Audit Committee Charter reflects the Australian National Audit Office and the ACT Treasury best practice guides for Audit Committees.

Through both the 2012-13 business planning process and the 2011 Assurance Plan risks are identified and mitigated through the Directorate's internal governance controls including:

• Risk Management Framework
• Strategic Risk Profile
• 2012 and 2013 School Audit Program
• Fraud & Corruption, Prevention & Response Plan 2011-2013
• Internal Audit Program
• detailed financial policies and controls, such as the Director-General's Financial Instructions and the School Management Manual
• detailed financial operating procedures and practices
• risk identification and analysis by executive directors, directors and managers.

The Directorate's risk management and internal audit functions are managed by the Director, Information, Communications and Governance and senior staff of the Risk Management and Audit section. The section is complemented with additional resources through a panel of external audit service providers.

The Directorate's senior executive and the Audit Committee receive regular risk management reports, providing an overview of significant risks, mitigation strategies, responsibilities and an oversight of the implementation of audit recommendations.

The senior executive and the Audit Committee assist with the allocation of resources and timeframes to ensure appropriate mitigation and monitoring strategies are implemented.

Monitoring and reporting on risk management occurs through:

• regular monitoring of outcomes by the executive
• reporting to the Audit Committee
• reporting to the Senior Executive Team
• implementation of internal and external audit recommendations.

The Directorate manages financial risks through a well-defined financial management framework that includes:

• clearly established ownership of internal budgets
• monthly variance reporting by senior management
• quarterly strategic review of financial performance and corrective actions as required by executive
• regularly updated financial procedures and practices documents
• provision of training to office and school-based staff.

Audits conducted in 2012-13 included:

• February 2013 school census
• Director-General's Financial Instructions: Goods and Services Tax and Fringe Benefits Tax
• Physical Education, Sport and Outdoor Adventure Excursions
• nine comprehensive financial and administrative school audits.

Ten financial acquittals were conducted in 2012-13.

The Audit Committee met seven times during 2012-13. The Committee membership and attendance are displayed in Table C1.1.

Table C1.1: Audit Committee membership and meetings in 2012-13

For more information contact:
Manager
Risk Management and Audit
(02) 6207 1974