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The contents of this document are OFFICIAL: SENSITIVE
Meeting of Audit & Risk Committee Minutes
Date:
March 04th, 25
Time:
From To
PM AM EDT
Online via MS Teams
| Attendance |
|---|
| Committee members |
- Dr Graeme Innes AM\tChair
- Ms Maryanne Diamond AO\tDeputy Chair Mr Mark Darras item 2.1 onwards Dr Denis Napthine AO Dr Ian Watt AC Board members
- Mr Kurt Fearnley AO Ms Leah van Poppel item from .1 to inclusive6. Dr Richard Fejo Management representatives
- Ms Rebecca Falkingham Chief Executive Officer
- Mr Matthew Swainson Governance,DCEO,Risk & Legal actingChief Operating Officer/DCEO EnablingServices GMAudit &Risk Division Acting Branch ManagerInternal Audit Scheme Actuaryitem 5..1 General CounselCorporateitem 6.. tomMcGregor,Director Board andGovernanceSecretariatEOtoBoardChairExecutive DirectorPerformanceAuditsGroupANAOallitemsexceptincameraActingExecutiveDirectorsStatements Audits Group ANAO all items except in camera
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FOI 25/26-1960
s47F - personal privacy , Senior Director Performance Statements Audit Services Group, ANAO - all items except in camera
The Minutes are presented in the order that items were discussed.
Meeting open
Chair’s welcome, Acknowledgement of Country and apologies
- Chair opened meeting at: 2 PM
- Welcomed Members & management into session.
- On behalf of committee acknowledged Traditional Owners/Custodians throughout Australia (Bundjalung people from Tweed Heads).
- Apologies recorded:
- Dr Innes joining via video conference due to cyclone approaching Queensland/Northern NSW areas; expressed best wishes for staff/participants affected;
- Mr Darras joined as well.
- Dr Innes joining via video conference due to cyclone approaching Queensland/Northern NSW areas; expressed best wishes for staff/participants affected;
- Apologies recorded:
- On behalf of committee acknowledged Traditional Owners/Custodians throughout Australia (Bundjalung people from Tweed Heads).
Committee members’ declarations of material interests
The chair noted updates on member’s interest disclosures including: • Dr Watt advised an update regarding his membership with NDRP Working group since March ’23 till end Mar’25 where he will resign by then per Board decision. While no conflict believed, resignation is necessary according to board guidelines. • Dr Fejo informed contacted about annual declaration clarification but none new required this year, * Ms Falkingham passed message re: Cyclone impact.
Administration
Minutes approved: Audit Risk Committee minutes dated November 24.
Matters arising
- Further clarity sought concerning Item #6 in the matters report - timeframe needed before consultancy work related historical debt can be completed and resolved within expected time frame. Ms Falkingham highlighted that historical debts are significant issue requiring sensitive response from Agency towards participant financial concerns.
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Falkingham advised she and Mr Swainson sit on the group managing historical debt and will report back to the Board with further information shortly. The Committee noted the matters arising report for March 4th [year] approving closure items proposed to close.
Financial Reporting
Finance Activity Update
Mr Breitkreuz took this as read providing an update ANAO’s audit status Annual Financial Statements, closure packs from FY final management letter findings. Mr provided additional info closed item Matters Arising Report regarding cyber risk coverage Agency Comcover policy detailed meeting papers. Advises Commonwealth assist further loss incurred agency result breach beyond what Comcover would cover As per meeting paper approach made commercial market seek quotes. The Committee queried why Commonwealth insists having Comcover insurance if it assists event cybersecurity incident. Advise based general understanding The suggested Breitkreuz seek further support level Commonwealth has other departments agencies before seeking quotes providers. Breitkreuz will provide committee matter further details. ss47B - Commonwealth-State relations* Action1: Mr Breitkreuz report back committe level of support/cover Commonwealth date other departmentagencies security incidents. 5 Performance Reporting
Performance Activity Update
Mr Gifford joined in discussion introduced paper noting similar February Board paper also noted board agreed two financial targets upcoming quarter expected both measures met next report drew attention areas not being meet participant employment satisfaction timeframe guarantee.
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FOI: 25/19-387, 25/26-1960
Official Discussion on Participant Satisfaction Rate Challenges at National Disability Insurance Agency (NDIA)
The committee noted challenges with achieving participant satisfaction rates.
- Mr Gifford acknowledged this challenge faced by his agency during a recent discussion about reforming schemes within their jurisdiction; he will discuss it further later today as part of an upcoming board session;
Review Process for Measures & Targets
Committee questioned when agencies should review measures against targets, to which:
- Mr Gifford advised both reviews would be conducted in conjunction with next year’s corporate plan;
- Ms Falkingham suggested more sophisticated examination methods beyond planning outcomes are needed regarding what constitutes good participant satisfaction, noting these topics have been added to management’s agenda but not yet addressed fully;
Chief Risk Officer Report Q2
Mr Swainson presented progress updates under Commonwealth Fraud and Corruption Control Framework actions completed by NDIA, noting completion of Comcover survey signed off by CEO where approval authority is unspecified for Corporate Commonwealth Entities(CCEs), consistent legal reporting requirements met through CEO approvals. The Committee asked whether the agency operates similarly or differently from Non-Corporate CCE entities due to differing obligations adopted into operations best practices;
ARC Updates Frequency
The committee sought confirmation how often the Audit Reporting Centre(ARC) receives updated information on fraud/corruption framework work, in response: * Mr Swainson stated that ongoing updates provided via ARCs will reflect current status. The committee also reviewed Financial Compliance Summary paper highlighting some breaches occur unintentionally because staff fail to upload invoices promptly while others appear deliberate; compliance errors discussed included simple acquittal issues such as missing invoice uploads identified during ANAO Credit Card Audits 2024 recommendations which led them to consider including all types within breach categories despite concerns raised about intentional misconduct requiring significant remediation action taken in instances involving non-compliance with audit findings.
Resolution:
Audit & Risk Committee agreed Q2 FY2023-25 CROR accurately reflects risks, controls at National Disability Insurance Agency (NDIA); relevant content remitted back to Board.
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Mr McGregor provided an update on the three federal court matters listed at Attachment A of this paper.
s47E(d) - certain operations of agencies
Mr Swainson asked Mr Flowers to provide an update about the Administrative Review Tribunal (ART). The Committee enquired regarding the increase in active cases from July through December 2024, as well as whether the ART offers efficient mechanisms for handling complaints.
Mr Flowers reported there has been fewer complaints filed with the ART compared to scheme growth, noting less than one percent of participants appeal decision outcomes here; delays were being addressed and they transitioned into new case management systems; also mentioned was their intention to hear any matter dated before or including those up until early June/July next year.
Additionally stated is how NDIA’s increased access decisions will likely lead more appeals but remain small relative overall participant count.
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Ms Van Poppel, Mr McGregor and Mr Flowers left the meeting.
Integrity Update
Mr Dardo joined the meeting.
Mr Dardo introduced the paper and gave an overview of the key matters for the Committee’s consideration as set out in the paper. He also noted the challenges faced by the NDIA are not exclusive to the agency, and many other government agencies are also facing targeted action by sophisticated organised crime rings.
Mr Dardo spoke to increasing cooperation with other government agencies in sharing data,
information and undertaking investigations with law enforcement. He further noted that as transparency increases through an improved ability to detect integrity issues, scheme
tegrity losses will likely increase.s47E(d) - certain operations of agencies
s47E(d) - certain operations of agenciesredacted: Agency.
Insurance
National Disability Insurance Agency.
The Committee noted some issues on participant side but these typically around a lack education rather than deliberate attempts defraud Scheme.The Committee noted scale problem support systemic legislative reforms.
Committee importance demonstrating strong case additional investment fraud integrity measures.Mr Dardo left Meeting.
Internal Control Framework
Audit Management Report
Mr Swainson introduced Paper giving overview Key Matters Committee considered Paper progress made appointing second internal auditor expected start date end March Mr Swainson section 19 audit released mid-March.Dr Innes introduced Minney acting Branch Manager Internal Audit provided brief overview qualifications undertake role.Committee sought clarification Section refers ANAO Board Governance Audit whether briefing held before release opportunity respond provided Dr invited personal privacy: s47F personal privacy.This confirmed the Section report received Agency by end March planned given Agency ahead presentation.
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to the Auditor General: confirmed the Agency’s comments and response to Section 19 Report would be formalised in the report when it is tabled in parliament.
Mr Swainson introduced the revised FY2024-25 Internal Audit Plan and noted that changes have been highlighted and invited redacted (personal privacy) to outline changes as per the paper provided to the Committee.
The Committee queried if deferral Partners Community Performance measures Q1 had considered broader ecosystem reforms whether reporting measures relevant at time they are undertaken. s47F explained decision not taken lightly but seek clarification return committee.
Resolution:
The Committee approved Revised FY2024–25 Internal Audit Plan subject further commentary being provided on Partners community The Committee also noted status audit action closures update internal Audit co-sourced provider conflict interest matter, `ANOA publication October titled ‘Performance Outcomes’, backfilling Branch Manager role. briefly outlined second attachment ANAO publication audited practices across public service. NDIA now own category having previously part social services category.The Committee noted this report.Action Management provide further information regarding justification for deferral of Partners Community report.
External Audit Activity####8.1ANAOAuditActivityReport`
paper overview key matters consideration recently published end year report particular note around IT control management personnel AI cloud computing.s47F - personal privacy provided further update Financial Statements attached ANAO report unable detailed update because internal has just commenced.noted still rated High Risk audit improvements receiving timely manner. also summarised performance statements remains high risk rating focus completeness appropriateness performance measures and data advised she will provide the Committee with an once work completed. note Auditor General circulated Draft Australian National Audit Office Annual Work Program 2025-6 during meetingAction Secretariat to Dr Innes with ANAO Chair dates 9.Other Business
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The Committee discussed the previous ANAO Complaints Audit which found the NDIA complaint handling as ‘partly effective’ on the ANAO website and timeframes for when the finding will be removed.
Mr Swainson explained that all ANAO recommendations are finalised via ‘closure packs’ and these are still being progressed. redacted noted that the report will remain on the ANAO website as it was the outcome of \( s_{47F} \) - personal privacy tabled in Parliament. redacted provided an update on Cyclone Alfred noting analysis of participants in affected Local Government Areas (LGAs) has been provided to state incident controllers.Staff havebeen advised, and local teams will act in accordance with conditions.The Agency willicontinue to post communications on the NDIS website.The Agency has a joint businesscontinuity team that meets with NSW and Queensland teams and is engaged with thenational Emergency Management Agency (NEMA).The Committee discussed considerationof psychosocial welfare for all communications.The Committee discussedthe layout of the paper packs specifically the Resource Centre.
10.Meeting Close
The Chair closed the meeting at 4.27pm.
Next Meeting
The next Committee meeting will be held Thursday June 5th,
These minutes prepared by Board Secretary according section(s_141) NDIS Act.Ata meeting Audit RiskCommittee quorum constitutedby majority members.Aquorunm present decisions madeat this meeting.