NDIA Accountability Project

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Meeting of Audit Committee, 12 September 2023

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Meeting of Audit Committee

Minutes

12 September 2023 3.00pm – 5.00pm (AEST) – online

Attendance

Committee members:

  • Mr Graeme Innes AM, Chair
  • Ms Meredith Allan
  • Ms Maryanne Diamond AO
  • Dr Denis Napthine AO
  • Ms Estelle Pearson

Board members:

  • Mr Kurt Fearnley AO
  • Dr Richard Fejo
  • Ms Leah van Poppel
  • Dr Peta Seaton AM

Management representatives:

  • Ms Rebecca Falkingham, Chief Executive Officer
  • Ms Debbie Mitchell PSM, DCEO, Governance, Risk & Integrity
  • Mr Samuel Porter, Chief Operating Officer
  • Mr Garth O’Brien, A/g DCEO Service Design & Improvement – Item 4.2
  • Mr David Gifford, Scheme Actuary – Item 5

Other attendees:

  • Mr Mark Sullivan, Chief Risk Officer
  • Mr Chris Breitkreuz, Chief Financial Officer – Item 4.1
  • Mr Geoff Campbell, Chief Internal Auditor
  • Ms Clair Callaghan, BM Strategic Coordination
  • Mr Mick Turner, EO to Board Chair
  • Mr Matthew Curtis, BM Governance & Royal Commissions (Secretariat)
  • Mr Joshua Campbell – BM Financial Control - Item 4.1
  • Ms Sally Bond, Executive Director, ANAO – Item 6

Minutes

Minutes – Audit Committee meeting of 12 September 2023

Ms Alexandra Collins, Executive Director, ANAO – Item 6

Mr Saminda Maddumahewa, Executive Director, ANAO – Item 6

Apologies:

Nil

The Minutes are presented in order that items were discussed in the meeting.

1. Meeting open

1.1 Chair’s welcome, Acknowledgment of Country and apologies

The Chair welcomed attendees to the meeting and provided an Acknowledgment of Country.

1.2 Declarations of material interests

The Chair noted there were no updates to the Committee members’ declarations of material interests.

3. Administration

3.1 Minutes of the meeting held on 24 May 2023

The Committee approved the minutes of the meeting held on 24 May 2023.

3.2 Matters arising

The Committee noted the matters arising report for September 2023, approving the closure of the 3 items proposed to be closed.

2. In-camera

The Committee held an in-camera discussion for elements of item 4.1.

4. Finance Activity

4.1 Draft Annual Financial Statements

Mr Breitkruez and Mr Campbell joined the meeting.

Mr Porter introduced the item and provided an overview of the key matters for the Committee’s consideration, as outlined in the paper, noting:

  • the Annual Financial Statements were prepared in accordance with all relevant statutory requirements
  • the ANAO is prepared to sign-off on the Annual Financial Statements on an unqualified basis
  • the Financial Statements were prepared on a going concern basis
  • the ANAO had raised two new draft findings.

The Committee held an in-camera discussion about the two new draft ANAO findings.

The Committee asked management to provide further information about the draft ANAO finding regarding delegate decisions.

Action 1: Management to provide a briefing to the Audit Committee on the draft ANAO finding regarding delegate decisions.

The Committee discussed the detail of the Annual Financial Statements, with Mr Breitkruez and Mr Campbell answering technical questions about the reported figures, methodology

Minutes – Audit Committee meeting of 12 September 2023

and presentation of the statements. Mr Gifford joined the meeting as part of this discussion to respond to a related question on Participant Plan Provision.

The Committee provided feedback in relation to two elements of the Financial Statements, to be amended prior to submission to the Board, in particular the supplier costs (page 54) and exceptionally Complex Support Needs program (page 66). Mr Porter undertook to make those adjustments.

Action 2. Management to amend the Annual Financial Statements (pages 54 and 66) in line with the Committee’s feedback and provide an updated version for Board consideration.

Resolution: The Committee recommended the Agency’s 2022-23 Financial Statements to the Board for signing, as amended.

Mr Breitkreuz, Mr Campbell and Mr Gifford left the meeting.

4.2 Draft Annual Performance Statements

Mr O’Brien joined the meeting.

Mr O’Brien introduced the item and provided an overview of the key matters for the Committee’s consideration, as set out in the paper.

The Committee discussed the draft Annual Performance Statements, in particular the interpretation of the definitions (“achieved” and “partially achieved”), and opportunities to reflect broader Scheme achievements in the performance statements, noting the 10-year anniversary of the Scheme.

The Committee noted that the broader impacts of the Scheme would be referred to in the Annual Report narrative.

The Committee noted that management would make some minor adjustments to ensure the language used in the Performance Statements is consistent.

Resolution: The Committee agreed they are satisfied with the performance measure systems and procedures, and recommended the NDIA Annual Performance Statements for 2022-23 be presented to the Board for approval and to be signed by the Chair on behalf of the Board.

Mr O’Brien left the meeting.

5. Participant Plan Provision

Mr Gifford re-joined the meeting.

Mr Gifford introduced the item and provided an overview of the key matters for the Committee’s consideration, as set out in the paper.

Mr Gifford responded to technical questions from the Committee about the figures reported in the attachments to the paper, specifically why certain figures had been carried forward.

Resolution: The Committee endorsed the Participant Plan Provision analysis for consideration by the Board.

Minutes – Audit Committee meeting of 12 September 2023

6. External Assurance Activity

6.1 ANAO Audit Activity Report

6.2 ANAO Closing Letter

Ms Bond, Ms Collins and Mr Maddumahewa joined the meeting.

Ms Bond provided an overview of the ANAO Audit Activity report noting the Financial Statements audit is in draft pending comments from management, with ANAO expecting to issue an unqualified audit opinion. The Committee noted that the ANAO Closing Letter will be signed on Friday, 15 September 2023 and finalised on Monday, 18 September 2023.

Ms Bond gave an overview of the two new draft Category C findings.

In response to a question from the Committee, Ms Bond advised that PACE was audited given the roll-out was initially intended to be implemented in Financial Year 2022-23, and the ANAO had expected to audit as a major new system.

Ms Bond advised that the NDIA’s Performance Statements will be audited for 2023-24. As a result, new auditors will be appointed to manage both the Annual Performance Statements and the Annual Financial Statements. An introduction will be facilitated at a future Audit Committee meeting.

The Committee discussed the audit of the effectiveness of NDIA management daily supports and proposed reviewing the progress of the 15 recommendations as a future agenda item for the Committee.

Ms Bond, Ms Collins and Mr Maddumahewa left the meeting.

7. Internal Audit activity

7.1 Internal Audit Management Report

Ms Mitchell introduced the item and provided an overview of the key matters for the Committee’s consideration, as set out in the paper.

The Committee discussed the Internal Audit Charter and Audit Plan, and noted Ms Mitchell’s advice that management would rationalise the Audit Plan and bring it back to the next Committee meeting.

Action 3: Management to resubmit the Internal Audit Plan to the Audit Committee at its next meeting.

Resolution: The Committee approved updates to the Internal Audit Charter.

Ms Mitchell introduced the paper, and provided a brief overview, highlighting service delivery issues related to mental health training and the Participant Service Guarantee.

The Audit Committee noted the papers as presented.

8. Meeting close

The meeting closed at 5.00 pm.

The next meeting will be held on 27 November 2023.