3.5 - Internal Audit Arrangements

Primary responsibility for internal audit arrangements within the Department rests 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 discharging its role, the Audit Committee’s work included the provision of advice to the Secretary on the signing of the Department’s financial statements, reviewing the internal audit coverage and the annual work program of the Audit and Fraud Control Branch and monitoring the implementation of internal and external audit recommendations.

The Department’s Audit Committee met on six occasions during 2006-07. Membership comprised senior departmental managers, two independent external members and a representative from the Australian National Audit Office as a ‘participating observer’.

Audit and Fraud Control Branch

In 2006–07, the Audit and Fraud Control Branch continued to promote and improve the Department’s corporate governance through the conduct of audits and investigations and the provision of high quality independent advice and assistance to departmental senior management.

Key activities in 2006–07 included undertaking a department-wide audit risk assessment to guide the development of a strategic planning framework and annual work program, and the conduct of a range of audits and reviews in line with the work program approved by the Audit Committee. The work program 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 pursues a fraud control program that complies with the Commonwealth Fraud Control Guidelines. In this program fraud risk assessments and fraud control plans are prepared; appropriate fraud prevention, detection, investigation and reporting procedures and processes are in place; and annual fraud data is collected and reported.

The Department investigated 41 fraud allegations during 2006–07. While some of these investigations are continuing, the Department referred a number of matters to the Director of Public Prosecutions or departmental officers with powers authorised under the Public Service Act 1999.

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