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.

Risks are identified and mitigated through the business processes and internal governance controls:

• 2011 Assurance Plan
• Assurance Plan
• Risk Management Framework
• Strategic Risk Profile
• 2011 and 2012 School Audit Program
• Fraud & Corruption, Prevention & Response Plan 2012-2014
• Internal Audit Program
• Director-General's FinancialInstructions
• School Management Manual.

Additional business risks are managed through compliance with financial operating procedures and risk identification and analysis by senior managers and executives.

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 on 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
• quarterly reporting to the Audit Committee
• quarterly 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 the executive
• regularly updated financial procedures and practices documents
• provision of training to office and school-based staff.

The audits conducted in 2011-12 included:

• February 2012 school census
• Critical and serious incident reporting
• ICT Governance (internal)
• ICT Governance Framework (external)
• 10 comprehensive financial and administrative school audits.

Reviews conducted in 2011-12 included the Grants Administration Review and Framework Project.

Special projects conducted in 2011-12 included the School Best Practice and Accountability Toolkit.

Seventeen financial acquittals were conducted in 2011-12.

The Audit Committee met six times during 2011-12. The committee membership and attendance are displayed in Table C1.1.

There were changes in the membership of the committee during 2011-12. Ms Joseph and Mr Tardif ceased being members while Mr Whybrow joined the committee.

Table C1.1: Audit Committee membership and meetings in 2011-12

Source: Risk Management and Audit Section

For more information contact:
Director
Information, Communications and Governance
(02) 6205 7661