Part 3.6: Internal Audit Arrangements

We anticipate opportunities and what might go wrong, and manage risk.

In 2009-10, primary responsibility for internal audit arrangements within the department rested with the Audit and Fraud Control Branch under the broad direction of the department’s Audit Committee.

Audit Committee

The role of the Audit Committee is to provide independent assurance and assistance to the Secretary on the department’s risk management and control and compliance frameworks and its external accountability responsibilities.

In 2009-10, the Audit Committee: provided advice to the Secretary on the signing of the department’s financial statements; reviewed internal audit’s coverage of the department through its annual work plan; and monitored the implementation of internal and external audit recommendations.

The department’s Audit Committee met on seven occasions during the year. Membership comprised senior departmental managers and two independent external members, one of whom was the Chair. Representatives from the Australian National Audit Office attended committee meetings. Further discussion relating to the committee can be found in Part 3.1 Corporate Governance and Part 3.5 External Liaison and Scrutiny.

Audit and Fraud Control Branch

In 2009-10, the Audit and Fraud Control Branch promoted and improved the department’s corporate governance through the conduct of audits and investigations and the provision of independent advice and assistance to departmental senior management.

The Audit and Fraud Control Branch conducted a range of audits and reviews in line with the work plan approved by the Audit Committee. The work plan encompassed compliance with departmental control frameworks, grants and contract management, IT management, and departmental expenditure and procurement activities. The branch also provided fraud prevention and investigation services to the department.

Fraud Minimisation Strategies

The department pursued a fraud control plan that complies with the Commonwealth Fraud Control Guidelines. This included: the preparation of fraud risk assessments and fraud control plans; ensuring that appropriate fraud prevention, detection, investigation and reporting procedures and processes were in place; and collecting and reporting on annual fraud data.

The department investigated 42 fraud allegations during 2009-10 with some of these investigations still continuing. The department also referred a number of matters to the Commonwealth Director of Public Prosecutions or departmental officers with powers authorised under the Public Service Act 1999.

Certification of Departmental Fraud Control Arrangements

I, Jane Halton, certify that I am satisfied that for 2009-10, the Department of Health and Ageing has had:

appropriate fraud risk assessments and a fraud control plan prepared that complies with the Commonwealth Fraud Control Guidelines;
appropriate fraud prevention, detection, investigation and reporting procedures and processes in place; and
annual fraud data collected and reported in compliance with the Commonwealth Fraud Control Guidelines.

[Signed in hard copy and PDF versions]

Jane Halton, PSM
Secretary
16 October 2010

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