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AUDIT
AND COMPLIANCE COMMITTEE
31
October 2006
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INDEX
1.
Constitution
2.
Operationalisation of the Constitution
3.
Structure and
4.
Annual Audit and Compliance Committee Agenda
Timetable
Appendix
Attachment
I
Constitution
Attachment
II
Reporting relationships
Attachment
III Annual
Audit and Compliance Committee
Agenda
Timetable
Attachment
IV Legislation
Having Application to James
Foreword
This
Charter document applies to the Audit and Compliance Committee of James Cook
University and has been prepared having due regard to the requirements of the
Financial Administration and Audit Act 1977, the James Cook
University Act 1997, the Financial Management Standard
1997, other relevant legislation, Best Practice guides, Queensland
Treasury Guidelines and Professional Auditing Standards.
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1.
CONSTITUTION
The Audit
Committee was established on 29 May 1992 and reconstituted as a Committee of
Council on 4 November 1993. The
Constitution was amended by Council on 2 July 1998.
The former
Terms of Reference were approved by Council on 3 June 1999 and amended by
Council on 7 July 2000.
The
Constitution was approved by Council on 5 October 2000 and amended by Council on
2 August 2001 and 1 August 2002.
The Committee was renamed by Council as the Audit and Compliance
Committee on 1 August 2002. The
Constitution was revised by Council on 4 October 2002, and amended by Council on
18 March 2004. The Constitution, as
approved by Council, is an Appendix to this Audit and Compliance Committee
Charter (see Attachment I). The Audit and Compliance Committee is hereinafter
called "the Committee".
2. OPERATIONALISATION OF
THE CONSTITUTION
In respect of
the duties designated in the Constitution of the
Committee:
2.1 In the areas of financial
reporting, accounting policies and financial management
shall:
(a)
assume and discharge annually the following responsibilities in relation
to the University’s annual Financial Statements and performance management
framework:
· reviewing
thoroughly the standards for compliance with all prescribed accounting and other
requirements
· assessing the
appropriateness of the University’s accounting policies and performance
measures
· identifying and
actively investigating any unusual financial or operational
trends
· reviewing the
impact of any materially adverse audit findings on the integrity of the
University’s Financial Statements
· reviewing
statutory accounts check lists and other matters to ensure that due care and
diligence processes have been completed satisfactorily, for example the
Queensland Audit Office Financial Management Standard Audit Questionnaire and
the legal representation letter;
(b)
provide a clearance on the University’s annual Financial Statements to
Council prior to final attestation or “sign-off” by the University’s
representatives.
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2. OPERATIONALISATION OF
THE CONSTITUTION (contd)
2.2 In the area of the internal
control system shall:
(a)
review findings together
with management responses contained in Audit and Assurance Reports on Compliance
audits, Financial audits or Special Purpose audits related to the University’s
systems of internal control;
(b)
review External Audit
findings and management responses contained in the Interim Audit Report and the
Final Audit Report.
2.3 In the area of business
policies and practices shall:
(a)
review the findings
together with management responses contained in the Audit and Assurance Report
on the review of the University’s Business Policies and
Practices.
2.4 In the area of compliance with
applicable laws, regulations and policies shall:
(a)
review the findings
together with management responses contained in the Audit and Assurance Report
on the Legislative Compliance audit.
2.5 In the area of the monitoring and
controlling of risk management shall:
(a)
review the University’s
Risk Management Plan and also monitor and review on a quarterly basis progress
made with the implementation of risk management strategies and action plans
including the Business Continuity Plan.
2.6 In addition the Committee
shall:
(a) approve the annual Work
Program;
(b) ensure the integrity and
consistency of the University’s corporate culture relative to ethical conduct
and probity;
(c) monitor fraud prevention and
detection strategies;
(d) monitor the corporate governance
processes of the University.
2.7 In assisting the Council to
fulfil statutory and legislative requirements, the Audit and Compliance
Committee members shall meet at least once during the life of the Council to
review the Constitution and/or Charter of each committee established by Council
and compile a report for Council outlining areas where non-compliance with
legislative and statutory requirements may occur as a result of the current
documents.
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3. STRUCTURE AND
3.1 The Committee is a committee
of Council and is therefore directly responsible to
Council.
3.2 The Committee comprises
members who are duly elected by and from Council and who are independent of
senior management, Audit and Assurance Unit
and
external audit.
3.3 The relationship of the
Committee to the University, Audit and Assurance Unit and the Authorised
Auditors is illustrated in an Appendix to this Audit and Compliance Committee
Charter (see Attachment II Audit_and_Assurance_Unit Reporting_Relationships).
4. ANNUAL AUDIT AGENDA
TIMETABLE
A
timetable for matters to be considered by the Committee on an annual basis is an
Appendix to this Audit and Compliance Committee Charter (see Attachment
III Annual_Audit_and_Compliance_Committee_Agenda_Timetable).
