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Meeting of Audit and Risk Committee
Minutes
Date: June 05th, Time: AEST (AM) : [10-2] PM Location: Online via MS Teams
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FOI 25/26-1960
Ms Jane Heffernan, BM Board Secretary, Ministerial and Parliamentary (Secretariat) – all items except in camera
s47F - personalprivacy*, Director Board Secretariat*(Secretariat)–allitemsexceptincamera s47F-personalityprivacy, EOtoBoardChair-allitemsexceptincamera*
Apologies
s47F-personalprivacy, GMAudit,RiskandResilienceChiefRiskOfficer* The Minutes are presented intheorderthat itemswerediscussed.
Meeting open
Chairs welcome, AcknowledgementofCountryandalogies
The Chairs opened themeeting at 10：02amwelcomed Membersmanagement tothemeeting.On behalf of Committee,the Chair acknowledged Traditional OwnersCustodians Country throughout Australia,in particular Ngandowaland Minyungbal people Bundjalung Country whose lands Dr Innes was meeting on Tweed Heads.The Chair noted that Reconciliation Week had just come close reflected impact this week may have Aboriginal Torres Strait Islander communities aroundAustralia. The CharnotedMs Falkinghamands47F-personal privacywereon leave welcomed Mr Porter as acting CEO.
Committees members declarations material interests
The Chair notede no updates memberdeclaraionsofmaterialinterests.*
In-camera session
Commonwealth Ombudsman s47F-personal privacys47F-personal privacymr SwainsonMr McNaughton joined the meeting.CommonwealthOmbudsmans addressedCommitteeadressed questions.MrsSwainson,McNaughtons left themeeting.
Administration
- Ms Doylejoinedthemeeting. **Minutes from Audit and Risk Committee meeting March:*35Marchthe Committee endorsed minutes of the meeting April 2025.Chair welcome ANAO representatives , , who joined thymeeting.MinutesPageof9
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Matters arising
The Committee noted the matters arising report for June 2025, approving the closure of items proposed to be closed.
Resolution:
The Committee discussed the matters arising report and agreed to close the matters proposed to be closed.
Financial Reporting
Finance Activity Update
Mr Breitkreuz introduced a paper stating that finance statements did not contain any results out-of-the-ordinary; positive actions from ANAO’s interim management letter resolved three findings with helpful comments on hard-closed finalisation received regarding these issues;
Going Concern Assessment
No change since last assessment indicated Mr Breitkreuz introducing another paper noting full-year assessment at end-fiscal year,
Changes in Accounting Standards
Agency is unaffected but reviewed frequently ensuring up-to-date standards,
Q3 PGPA Compliance
Positive downward trend observed quarter two compliance issues highlighted low-level credit card non-compliance particularly when invoices added post-acquittal instead before mentioned Mr Breitkreuz introducing yet another paper indicating preparation of financial reporting arrangements ending fiscal year provided to ANAO July 28th feedback expected August 20th audit finalized September 2025, Committee also addressed differences superannuation provisions employees defined benefits versus accumulation funds Management advised can provide breakdown numbers each type fund, Risk rating setting within audit strategy document queried by committee whether high-risk concern raised ANAO representatives stated risk ratings are an initial assessment mitigations/controls implemented confirmed Interim Management Letter some risks no significant others similar large organizations. The Committee asked for clarification naming groups used inconsistently between individual and group next report adjusted accordingly e.g. CEO vs office noted, Finally, the Committee commented that presenting finance reports as four separate papers was easier general reading accessibility purposes.
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Mr Breitkreuz left the meeting. Action 1: Management to provide information on employee superannuation breakdowns by scheme type (2 defined benefits schemes and the accumulation scheme) in the Agency.
Performance Reporting
5.1 Performance Activity Update
- Mr Swainson rejoined the meeting.- Ms Stransky introduced the paper and gave an overview of the key matters for the Committee’s consideration.Ms Stransky noted that this update intends to enhance visibility into performance reporting prior to year-end fiscal end.Seventeen out of twelve performance measures were achieved during Q3 with commentary provided regarding those not met.The team is consulting widely across organization-wide concerns raised by ANAO to achieve all performance metrics. The committee discussed Participant Service Guarantee timeframe targets being unmet, likely unacceptable community-wise.Committee asked management about actions taken addressing access decision backlogs getting a more ‘business as usual’ approach. Ms Stransky stated data improving over last six months.Additional resourcing has reduced backlog significantly.Introduction PACE brought efficiency process.Expected finalization decisions June.end further info needed these PSG targets appear worse than previous results.Year’s result expected below 2024 levels.committee seeks reassurance agency taking steps improve while maintaining rules processes.Management mentioned topic can be further discussed at upcoming Board Meeting agenda item #7.2. Action 2: Management provide detailed report on Participant Service Guarantee timeframes (performance measure 2) including what Agency doing meet target requirements. Mr Fearnley left after discussion ended.
Chief Risk Officer Report
- Mr Doyle presented paper giving overview risk considerations.Potential increases in risks due fraud corruption regulatory exposure.Risk Management Strategy addresses how the Agency controls related risks.Reviewing current framework will present Committee September 25th meeting.Clayton Utz also reviewing board obligations.Work commenced quarter one completed second new financial year.Commonwealth Fraud and Corruption Control Framework reporting delayed additional experts engagement required.Minutes Page of 12/29
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Ms Doyle also noted that the ANAO work being undertaken regarding fraud and corruption shows there is still work to be done in regard to payment processing.
The Committee enquired if the Clayton Utz report is able to be circulated to Board members. Management confirmed it will be circulated once completed. The Committee discussed the long-term high-risk rating in relation to fraud and corruption dimensions, noting that the Agency has further work underway which is expected to be completed by December. The Committee was reassured the Agency was vigilant and taking action but noted its concern at the duration of the high-level risk rating. Management confirmed that risk mitigations are in place with additional mitigations currently implemented for second half year backlogs were discussed due legislative amendments funding applies from date decision. The Committee questioned whether agency decision making backlogs causing participants without funds they entitled should more carefully considered both levels analysis provided on timeframes potential impact participant profiles backlog providers than participants issue advised this more so providers than participants Analysis detail Reassessments Timeframe Potential Impact Participants Backlog Strategic Risk Review FY2025-26 Ms Doyle introduced paper overview key matters committee consideration strategic risks published corporate plan team consulted widely organization prepare list consolidations refinements made existing Risks added ensure empowering First Nations people Work mitigation strategies now owned single Deputy CEO owner suggested consulting outside next year consider 2026 review Resolution Audit Risk Committee note realigned FY24-25 Strategic Risks Mitigation Strategies endorse Strategic Risk Review publication Corporate Plan FY25-26 Legal Issues Administrative Review Tribunal Program Mr Swainson McGregor joined meeting outlined recently endorsed legal services strategy Committee Overview actions progress under Strategy fundamental
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premise is that they want to be helpful, keep participants at the centre, and strive for improvements.
The Committee discussed how legal services from external law providers are sourced, and development in Legal Services area within this agency staff. The Committee queried if tracking misuse or fraudulent activities were adequately addressed as part of a new strategy under discussion management thanked committee feedback noting it intended living document internal use associated policies will considered when updating these strategies accordingly Mr Swainson provided updates Administrative Review Tribunal number cases before tribunal historically high but overall percentage participant down approximately 5% all participants just over than 0%. As more join scheme should expect seek adjudication tribunals team focusing finalising matters outstanding months ago Committee questioned rates closed hearings currently 70% Agency position resolved issue stage effectively communicating crucial resolving misunderstandings about what can cannot provide further advised favouring Agency position Tribunals favoring Agency position approximately times majority taking Agency Tribunal have legitimate claims believe not been full entitlement reiterated commitment working best possible outcome Committee noted professionalism conscientiousness probity meeting with firms clarified has met any since joining Agency McGregor left action Management discuss procurement processes Dr Watt Quarterly Integrity Update Dardo joined introduced paper overview key matters consideration including update progress systems built detect fraud Scheme now enough data collected able provide Minutes Page 14/29
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statistical information on integrity losses. It is important to understand that these numbers wil seem large as the Agency has never been able t provide these statistics before As th fraud detection systems processes mature it likely these num bers get higherbefore leveling off The Ageny has been very transparent nese proceses an i likel y tha ANAO wil report ome figures nd there may associated media interest. Mr Dard advised that theran been uplift performance Fraud Fusion Taskforce with prosecutions occurring significantly faster speed previously Implementation further updates Crackdown Fraud program occur next few months line Risk Management Framework manual payment reviews increase coming month s c47C deliberative processess 47E(d) certain operations agencies Mr Dado briefed Committee fraud prosecution being brought against NDIA staff member which likely come courts within time Action Board Secretariat schedule deep dive potential legislative changes support integri measures future Board meeting .6 Debt Program Work Review Mr introduced paper gave overview key matters for consideration Mr dardo advise every participant debt raised Agency manually reviewed verify debts done legally proper evidence records place Mr noted this process shown:
- some debts using poor methods revoked some revoked will need re-examined appropriate if correct evidence and proce ses. M r emphasised evey debt was manu ally review by officer no automation involved communication participants carefully considered Provider debts also examined so far most are upheld. The discussed how participants difficult financial circumstances might deal notices M r d ado Swainson explained is case basis approach but some participant debt will be raised nominees claimed inappropriately behalf of In such cases all options available under Act considerd M r clarified recovered manner Scheme court via not. Minutes
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Mr Dardo and Mr Swainson left the meeting.
Escalation notifications of red-rated participant critical incidents
Mr McNaughton rejoined the meeting.
Mr McNaughton introduced the paper and gave an overview of the key matters for the Committee’s consideration. Mr McNaughton explained the updated critical incident framework and how it is intended to be used to ensure effective communication of serious incidents to the CEO or Deputy CEO and the Board where appropriate.
The Committee discussed the wording of the framework and if it would be improved to more accurately reflect the priorities and responsibilities of the Agency. Mr McNaughton agreed to confer with Mr Swainson and the legal team to ensure wording is appropriate. The Committee also enquired when the Ministers’ offices would be notified in such instances. Mr McNaughton advised there is now a weekly meeting set up with Minister McCallister’s Chief of Staff, all briefs going to one office will copy into another ministerial office to ensure coverage.Action7: MrMcNaughtontoreconsiderthelanguageoftheframeworkandreturntoCommitteewithanupdatedframework.Mr McNaughtonleftthemeting.
Internal Control Framework
Audit Management Report
Ms Doyle introduced the paper and gave an overview of the key matters for the Committee’s consideration, noting that there has been an increase in open audit items; further engagement was planned between item owners. Ms Doyle provided updates on the delivery preparation plan 2025-26AuditPlan.Management noted procurement additionalauditproviderwillbecompletedthismonthwhichallow4delayedauditswhereErnstAndYoung(EY)hasconflicttonewfinalised.s47F-personalprivacy,s47F-personalprivacyands47F-personal privacyprovidedcommentaryonauditManagementReportfromANAOperspective,notingeffectivenessBoardperformanceauidwilbetabled10June2025.TheclaimscomplianceauditiscurrentlyoutforcommentsduetablendJuneannualaudiworkprogrambeing finalisedtablingJulyTheCommitteediscussedrecentJointComitteePublicAccountsAuditequiresExternalAuditActivity8ANOAAudtivityReports47Fpersonal privacy , s47F - personal privacy and redactedintroducedpapergaveoverviewkeymattersCommitteesconsiderationnotingtopicscovereditem7 The ANAO advised financial statements will occur soon interim reportfinancialreportswas tabledonMayOver%of outstanding findings were several months most relate to IT processes issues.CommitteenotederrorwordingtorelationuseNDISversus NDIAintheperformancereport.ANAOconfirmedtheyamendthis.
Minutes
3.1 .
Page 1 of 9
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The ANAO noted that the work on the hard close audit has substantially finished and there were only very minor comments on this highlighting improvement quality statements Agency commended efforts committee.
Other Business No other business raised.
Meeting Close Chair closed at 2 pm.
Next meeting next Audit risk Committee meeting to Richmond Victoria held Tuesday Thursday April September .
The minutes these prepared Board Secretary according Section 141 NDIS Act Quorum constitutes majority members decision made this meeting.