3.6 Internal Audit Arrangements

We anticipate opportunities and what might go wrong and manage risk

In 2010-11, primary responsibility for internal audit arrangements within the department rests with 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 2010-11, 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 it’s 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

In 2010-11, 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.

In 2010-11, Audit and Fraud Control Branch conducted a range of audits and reviews in line with the Audit Work Plan approved by the Audit Committee. The Audit Work Plan encompassed compliance with departmental control frameworks, grants and contract management, IT management, and departmental expenditure and procurement activities. Audit and Fraud Control Branch also provided fraud prevention and investigation services to the department.

Fraud Minimisation Strategies

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

The department investigated 48 fraud allegations during 2010-11 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:

the department has prepared fraud risk assessments and fraud control plans;
the department has in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the specific needs of the agency; and
I have taken all reasonable measures to minimise the incidence of fraud in the department and to investigate and recover the proceeds of fraud against the department.

[Signed in Hard Copy and PDF versions.]
Jane Halton, PSM
Secretary

28 September 2011

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