A/3.3 Audit and Risk Management Committee

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Modification History

Audit and Risk Management Committee is a Council committee established in accordance with Council Procedure 1 - Committees . Audit and Risk Management Committee is accountable to Council for fulfilling the following terms of reference.

Terms of reference

Audit and Risk Management Committee advises both Council and the Vice-Chancellor as accountable officer on the performance or discharge of functions and duties under the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009 and the University's Assurance and Risk Management Services Charter ( A/1.5 ).

Audit and Risk Management Committee's main functions are to:

• assess and contribute to the audit process including evaluation and facilitation of the internal audit function;
• oversee and approve financial and operational reporting;
• assess the adequacy and effectiveness of the University’s internal controls, including the risk management and compliance frameworks.

Specifically Audit and Risk Management Committee will undertake the following:

Internal Audit

Audit and Risk Management Committee:

• approves the University's Assurance and Risk Management Services Charter ;
• considers the development and implementation of systems and procedures to ensure the internal audit function operates efficiently, effectively and is consistent with the Institute of Internal Auditors - Australian Standards;
• reviews and approves
• the Assurance and Risk Management Services strategic audit plan;
• on delegated authority of Council, the annual internal audit plan and work program;
• reports on the internal audit function in each annual report and participates in any review of the effectiveness of the internal audit function including the appointment and termination of the Director, Assurance and Risk Management Services;
• considers the way in which the internal audit function may be performed either by employees of the University or by external consultants or by a combination of both;
• considers all audit reports by the internal audit function, and quarterly activity reports, and documents the consideration, action required and officers to whom the action is assigned and ensures follow-up action is performed by reviewing the outcome, directions or recommendations made;
• reviews all financial related reports to be made public, prior to release;
• approves, on delegated authority of Council, the Annual Financial Statements;
• considers the impact of all significant accounting and audit policy changes;
• evaluates the management information systems, including those under development, including the implementation and maintenance of internal controls;
• reviews annual financial statements and other reports of controlled entities to evaluate impacts on the University.

External Audit

Audit and Risk Management Committee:

• monitors the authorised auditors including:
• consideration of the proposed external audit strategy, timeframe and fees for the year;
• review of the recommendations and comments in their reports;
• consideration of the relationship between the internal audit function, to ensure appropriate consultation to minimise unnecessary duplication of audit work and promote economy of audit activities.

Risk

Audit and Risk Management Committee:

• evaluates the adequacy and effectiveness of the University's risk management and compliance frameworks through quarterly reporting and advises Council on:
• QUT's exposure to and management of significant business risks;
• the management reporting and control systems used to monitor adherence to compliance with legislative requirements, contractual arrangements and QUT policy and procedures;
• QUT's business continuity plans;
• QUT's exposure to risks in relation to corruption and fraud;
• considers and monitors the standard of ethical conduct in areas such as conflict of interest.

General

Audit and Risk Management Committee:

• considers any other matter consistent with its functions referred to it by Council, Council committees, the Vice-Chancellor or internal audit function.

Membership

• Chancellor or external Council member nominated by the Chancellor
• Four external members with professional accounting, financial or auditing expertise nominated from or by Council (where an external member of Council has such expertise the appointment should be from Council, otherwise appointment of an external non-Council member with such expertise should be made by Council)

The Chair shall be nominated by the Chancellor from the other three members of the Committee.

A nominee of the Registrar is secretary.

The Vice-Chancellor, the Executive Director, Finance and Resource Planning, the Director, Assurance and Risk Management Services, and such other persons as determined by Audit and Risk Management Committee, shall have rights of audience and debate only.

Relationships

The internal audit function is part of both the Vice-Chancellor's and Council's accountability mechanisms (see Assurance and Risk Management Services Charter ). The internal audit function reports to Audit and Risk Management Committee of Council to ensure the governing body's designated committee receives advice on significant audit issues. The Committee then ensures Council is advised by reporting on a regular basis.

The Committee will meet at least annually and alone with each of the stakeholders, including internal audit, external audit and management.

Tenure and frequency of meeting

Terms of office are detailed in section 6 of Council Procedure 1 - Committees .

Audit and Risk Management Committee normally meets in the cycle of meetings leading up to Council meetings, with an additional meeting in February to consider draft financial statements.

Reporting

Following each meeting, Audit and Risk Management Committee reports to the next meeting of Council.

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Modification History

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