Joint meeting of NDIA Audit & Risk Committees
Minutes 14 March 2024 11:00am – 3.30pm AEDT
Audit Committee
- Dr Graeme Innes AM, Chair
- Dr Denis Napthine AO
- Ms Estelle Pearson
- Ms Maryanne Diamond AO
- Ms Meredith Allan
Risk Committee
- Ms Maryanne Diamond AO, Chair
- Dr Denis Napthine AO
- Mr Kurt Fearnley AO
- Ms Meredith Allan
Board members
- Mr Mark Darras
- Dr Peta Seaton AM
- Dr Richard Fejo
Management representatives
- Ms Rebecca Falkingham, Chief Executive Officer
- Ms Debbie Mitchell PSM, DCEO, Governance, Risk & Legal
- Mr Samuel Porter, DCEO Enabling Services & Chief Operating Officer
- Ms Corri McKenzie, DCEO Service Design & Improvement - Item 5.1
- Mr David Gifford, Scheme Actuary - Item 5.1
- Mr Scott McNaughton, DCEO Service Delivery - Item 5.1
- Mr John Dardo, DCEO Integrity Transformation & Fraud Fusion Taskforce - Item 6.3
Other attendees
- Mr Mark Sullivan, GM Audit & Risk Division
- Mr Matthew Curtis, BM Ecosystem Reform & Governance (Secretariat)
- Mr Mick Turner, EO to Board Chair
- Ms Alexandra Collins, Executive Director, Performance Audit Services Group, ANAO
Minutes 1
Minutes – NDIA Joint Audit & Risk Committee meeting of 14 March 2024
Ms Lesa Craswell, A/g Group Executive Director, ANAO Ms Prue Gordon, Senior Director, Performance Statements Audit Services Group, ANAO Mr Chris Breitkreuz, Chief Financial Officer – Item 4.1 Dr Ian Watt AC, Specialist Advisor to the Committee – Item 6.2 onwards Mr Matthew Swainson, Chief Counsel – Item 6.2 Mr Tom McGregor, General Counsel (Corporate) – Item 6.2
Apologies Nil
- In Camera
The Audit & Risk Committees (the Committees) held an in camera session at the start of the meeting.
- Meeting open
2.1 Chair’s welcome, Acknowledgment to Country and apologies
Management and other standing attendees joined the meeting.
The Chair of the Audit Committee, Dr Innes, welcomed attendees to the meeting at 11.35am AEDT and provided an Acknowledgment of Country.
Dr Innes advised that it was agreed with the Risk Committee Chair, Ms Maryanne Diamond, he would Chair this joint meeting of the Audit and Risk Committees.
- Administration
3.1 Declarations of material interests
The Chair noted there were no updates to the Committees members’ declarations of material interests.
Other Board members in attendance noted the following declarations: • s 47F [redacted]
3.2 Audit & Risk Committee Charter
Ms Mitchell and Mr Curtis provided an overview of this item, as set out in the paper, in particular noting the draft charter is an amalgam of the current Audit and Risk Charters, which are based on the model Audit charter provided by the Department of Finance, with Agency-specific requirements incorporated.
The Committees discussed the draft charter and provided feedback to management regarding the sections of the charter that deal with committee membership restrictions and numbers, quorum, principles of attendance and conflict of interest.
In relation to conflict of interest, the ANAO drew the Committees’ attention to a related recommendation arising in a recent performance audit.
Minutes 2
Minutes – NDIA Joint Audit & Risk Committee meeting of 14 March 2024
The Committee welcomed the Board Chair and CEO’s advice that conflict of interest arrangements have been significantly strengthened as a result of enhancements to the approach to Board member conflict of interest processes.
Action 1: Board secretariat to amend the charter to reflect:
- Consistent use “Audit & Risk Committee” throughout
- Consistent reference to PGPA Rule
- Delete repeated dot point at section 5
- Adjust “membership” to confirm that Board Chair cannot be a member (observer only)
- Adjust attendance to confirm that the Committee determines attendees, in consultation with CEO
- Adjust membership to minimum of 4, with quorum of 3
- Include reference to ‘performance statements’ in ANAO section
- Adjust Conflict of Interest section to reflect that, in rare occasions, members may not be aware of a COI until they receive paper.
Resolution: The Committees endorsed the progression of the draft Audit and Risk Committee Charter to the Board subject to the requested amendments being incorporated.
3.3 Committee meeting dates and forward agenda
The Chair introduced the item, and provided an overview, noting the timing of proposed meetings may not align with ANAO audit responsibilities and requirements.
Action 2: Board Secretariat to review proposed schedule against ANAO audit milestones and organise a meeting with the Chair and management to discuss any additional meeting requirements.
The Committees noted the proposed dates and that there may be a requirement to hold out of session meetings to respond to ANAO audit reports.
3.4 Minutes of the Audit & Risk Committee meetings held on 27 November 2023 & Minutes of the OOS Audit Committee meeting of 18 December 2023
The Committees approved the minutes of the Audit Committee and Risk Committee meetings held on 27 November 2023 and the OOS Audit Committee minutes of 18 December 2023.
3.5 Matters arising
The Committees noted the matters arising report for March 2024.
4. Financial Reporting
4.1 Finance Activity Update
Mr Breitkreuz joined the meeting.
Mr Breitkreuz introduced the item and gave an overview of the key matters for the Committees’ consideration, as set out in the paper.
The Committees discussed the Finance Activity Update in particular:
- status and future arrangements for in-kind contributions in the context of proposed scheme reforms, particularly foundational supports
Minutes – NDIA Joint Audit & Risk Committee meeting of 14 March 2024
- what can be learnt from reforms to other Commonwealth policy and service delivery agencies
- changes to providing responses to the ANAO and the Committees’ visibility of any delays.
Management and the ANAO confirmed there have been no delays in provision of information in relation to the current interim Audit.
Action 3: Management to advise the Committees of any delays in responding to ANAO requests.
The Committees noted the Finance Activity Update.
Mr Breitkreuz left the meeting.
5. Performance Reporting
5.1 Performance Activity Update
Mr Gifford, Ms McKenzie & Mr McNaughton joined the meeting.
Mr Gifford and Mr Porter took the paper as read, noting the paper sets out the Agency’s performance measures and the current assessed measures.
The Committees noted the Performance Activity Update.
Mr Gifford, Ms McKenzie & Mr McNaughton left the meeting.
6. Risk Oversight and Management
6.1 Chief Risk Officer Report (Q2)
Ms Mitchell and Mr Sullivan provided an overview of the key matters for the Committees’ consideration, as set out in the paper, with particular reference to:
- cyber security risks
- a small decrease in risks in tip offs in quarter 2
- the increase in operational risks as an expected result of the Agency organisational restructure
[redacted — s 47C deliberative process; s 47E(d) operations of agency]
- emergency management and the establishment of the crisis coordination branch.
The Committees discussed the current status of legal work [redacted — s 42 - legal professional privilege]
Action 4: Management to provide clarification regarding the cohort term ‘children without plans’ in relation to the HWL Ebsworth data breach.
Resolution: The Committees agreed that the Q2 CRO Report is an accurate account of NDIA risks and controls, and to remit relevant content to the next NDIA Board meeting.
Minutes
4
Minutes – NDIA Joint Audit & Risk Committee meeting of 14 March 2024
The Committees endorsed the proposed cyber security key risk indicators for Strategic Risk 6 – Scheme Integrity for submission to the NDIA Board. Ms Falkingham and Ms Collins left the meeting. The Committees adjourned for lunch at 12:50pm and returned at 1:20pm. Dr Fejo and Mr Sullivan rejoined the meeting at item 6.3.
6.2 Legal Risk Report
Ms Craswell left the meeting. [redacted — s42]
Ms Falkingham rejoined the meeting. Mr McGregor and Mr Swainson left the meeting.
6.3 Integrity Update
Mr Dardo joined the meeting. Mr Dardo introduced the item and provided an overview of key highlights set out in the paper. The Committees discussed the engagement with the sector on integrity issues, the 24-hour payment delay and the parameters for the use of cash within the Scheme, particularly in relation to self-management. The Committees noted the Integrity Update. Ms Collins rejoined the meeting. Mr Dardo left the meeting.
Minutes 5
Internal Control Framework
Audit Management Report
Ms Craswell rejoined the meeting.
Ms Mitchell introduced the item and provided an overview of the key matters for the Committees consideration, as set out in the paper.
The Committees discussed the proposed Board Governance audit with the ANAO, in particular the approach to the audit, timing and previous Board Governance audits within the Commonwealth.
The Committees discussed the action items from ANAO audits, internal audits and the Commonwealth Ombudsman and the role of the ANAO in tracking implementation of recommendations. The Committees were pleased to see the Agency is preparing a review of open audit items which will be provided to the new Audit and Risk Committee at a future meeting.
The CEO advised the Commonwealth Ombudsman is pleased with the Agency’s implementation of Ombudsman recommendations and the Committees welcomed the opportunity to hear from the Ombudsman at a future meeting.
- Action 7: Board Secretariat to distribute links to previous ANAO Board Governance audits of Corporate Commonwealth Entities.
- Action 8: Mr Sullivan to engage with the Chair on the best format for the open audit items report.
- Action 9: Board Secretariat to liaise with new Audit and Risk Committee Chair and Office of the CEO regarding attendance of Commonwealth Ombudsman at a future meeting.
ANAO audit report on Management of Complaints by the NDIA
Mr McGregor joined the meeting and provided an overview of the item, noting that overall, the audit report found the Agency’s practice of complaints management as highly effective.
The Committees discussed best practice, which other organisations the NDIA should benchmark itself against and the Agency’s efforts to embed continuous improvement into our operating framework.
The ANAO advised the Committees the ANAO encourages entities to respond to Audit report recommendations with the terminology agree or disagree, rather than agree in principle.
- Action 10: The Board secretariat to provide Dr Watt with previous Board papers regarding complaints.
- Action 11: Mr McGregor to update Agency response with feedback from the Committees.
The Committees noted:
- The ANAO proposed performance audit report on the Management of Complaints by the NDIA.
- The NDIA will engage with the ANAO on editorial matters.
Resolution: The Committees endorsed the proposed response to the Acting Auditor-General subject to amendments discussed.
Minutes – NDIA Joint Audit & Risk Committee meeting of 14 March 2024
8. External Audit Activity
8.1 ANAO Audit Activity Update
Ms Collins, Ms Gordon and Ms Craswell provided an overview of the key matters for the Committees’ awareness and consideration, as set out in the paper.
Ms Craswell and Ms Collins advised the ANAO will be issuing a draft Annual Audit Plan which has been designed in light of the significant reforms occurring in response to the NDIS Review and the Disability Royal Commission. The ANAO welcomes advice on the draft Audit Plan with regard to the impact of reform work and the appropriateness of planned audits in the next 18 months.
The Committees discussed the ANAO’s engagement with other agencies regarding AI.
Action 12: ANAO to provide the date of the next Audit Committee Chairs forum to the Chair
The Committees noted the ANAO Audit Activity Update.
9. Other Business
10. Meeting close
The meeting closed at 3:01pm.