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Audit and Assurance Unit

AUDIT COMMITTEE

AUDIT AND COMPLIANCE COMMITTEE

 

Constitution

 

(Constitution approved by Council on 5 October 2000 and amended by Council on 2 August 2001.  Renamed by Council as Audit and Compliance Committee on 1 August 2002.  Revised by Council on 4 October 2002, and amended 18 March 2004)

 

1.     There shall be an Audit and Compliance Committee of Council hereinafter called "the Committee".

 

2.     Membership.  The Committee shall comprise the following:

 

·       five members elected by and from the Council who shall be neither a member of the staff nor a student of the University (i.e. independent and non-executive); and were possible one of whom should be a professional accountant/auditor and one of whom should be a legal practitioner;

 

·       Council shall have the power to co-opt one additional member who shall be a professional accountant external to the University; and

 

·       a majority of members shall not be members of the Finance Committee.

 

        Standing Invitation to attend:  Chancellor and Vice-Chancellor.

 

3.     Chair.

 

The Chair shall be appointed by Council from the members.  Should the Chair not be able to attend, the members present are to elect one of their number to chair the meeting.

 

4.     Quorum.

 

Any three members of the Committee constitute a quorum at a meeting.

 

5.     Casting Vote. 

 

The Chair has a casting vote in the case of an equality of votes.

 

6.     The Registrar shall be the Secretary to the Committee.

 

7.     Objectives.

 

7.1    Assist the Council in fulfilling its responsibilities under the Financial Administration and Audit Act 1977, the Financial Management Standard 1997, the James Cook University Act 1997 and any other applicable legislation or regulations.

 

7.2    Recommend to the Council any necessary changes to University procedures or processes to ensure compliance.

 

 

 

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8.     Duties and Responsibilities.

 

8.1    The Committee is to consider any matters relating to the Committee’s objectives that it determines desirable.  In addition, the Committee must examine any other matters referred to it by the Council.

 

8.2    In particular, the Committee is to review and make recommendations to Council on:

 

a.     the reporting of financial information;

b.     the application of accounting policies;

c.     financial management;

d.     internal control system;

e.     business policies and practices;

f.      compliance with applicable laws, regulations and policies; and

g.          monitoring and controlling risk management.

 

8.3    Also, the Committee is to:

 

a.     receive and assess Audit and Assurance reports;

b.     monitor on behalf of Council the timely implementation of audit recommendations;

c.     provide a formal channel for communication between the Council and external audit functions; and

d.          be responsible on behalf of Council for the overview of the Audit and Assurance function.

 

8.4    In assisting the Council to fulfill its legislative and statutory requirements, the Committee shall:

 

a.     review the composition and constitution of the various committees established by Council;

b.     report to Council any areas of deficiency which may result in the non-fulfillment of legislative and statutory requirements; and

c.     make recommendations to Council to change the processes and/or committee structure to ensure effective compliance with legislative and statutory requirements.

 

This process should be undertaken by the Committee at least once during the life of each Council or where significant changes occur in the applicable legislative and statutory requirements.

 

9.     Reporting. 

 

9.1    The Chair of the Committee is to report the findings and recommendations of the Committee to the Council after each Committee meeting.  In doing so due regard is to be given to avoiding disclosures that could give rise to conflicts of interest on the part of Council members.

 

9.2       The Committee is to provide an annual report to Council, as soon as practicable after the end of each financial year, about the Committee's operations.