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Meeting of Audit and Risk Committee Minutes

Date & Time:

September 12th, 09 AM to PM AEST (Richmond / Online via MS Teams)

Attendance

Committee members

Dr Graeme Innes AM Chair
Mr Mark Darras
Dr Denis Napthine AO

Apologies

Dr Ian Watt AC Maryanne Diamond AO Deputy Chair

Board Members

Mr Kurt Fearnley AO except item no. Dr Richard Fejo

Management Representatives

Mr Scott McNaughton acting Chief Executive Officer all items Mr Samuel Porter DCEO Enabling Services/Chief Operating Officer all items Mr John Dardo DCEO Integrity Transformation Technology Services Items No.:6.2&No:.6.3 Mr Andrew Maitland DCEO Service Delivery Items Nos :5.1&Nos .5.2

Other Attendees

Ms Phoebe Thompson Acting Chief Risk Officer Item Nos:4,7 Mr Michael Minney Acting BM Audit All items except in camera Mr Chris Breitkreuz CFO Item Nos:8,9, Mr David Gifford GM Data Officer Item Nos:8,9,&Item No:10 Mr Ben Cheever Actng Counsel Item No:11 Mr Daniel Flowers Reviews and Information Release Item Nos 12 &nos 13 s47F - personal privacy ,Executive Director Performance Audits Group ANAO All Items from 3.2 s47F - personal privacy ,Acting Executve Dirctor Performance Statements Audits Group ANAO All Items From nos 3.1

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Ms Jane Heffernan, BM Board Secretary, Ministerial and Parliamentary (Secretariat) – all text except in camera s47F-personalprivacy , Director Board Secretariat(Secretariat)-allitemsexceptincamera s47F - personal privacy EOtoBoardChair-allitemsexceptincamera **The Minutes are presented int he order that items werediscussed.

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Mr Porter’s Paper on ANAO Audit Status Update - FY 2024/25 Draft Annual Financial Statement Review

Findings Summary:

Closed findings: ( \text{ } \)
Findings with audit closure packs:[8]\
Partially closed finding:[1]
Outstanding without pack:[ ]
No new final phase findings raised.

Committee Discussion Points:

Finding #12: Single Delegate Plans; duration open unresolved despite progress made requiring further enhancements due to backlog clearance needs;
Finding #17: Historical scheme debt management affecting participants/providers, resolved but requires additional work towards complete satisfaction per committee understanding.

Mr Fearnley left meeting @ [10am].

Section 4.2: NDIA’s 2025–26 Financial Statements Overview

Introduction by Mr Breitkreuz referencing “Guide for Financial Statements” as a reference tool regarding budget variations and controls adjustments.

Committee discussed payment error rate variances between providers/self-managed funds noting improvement in provider rates (FY ’23/’24) while self-managed fund variance increased. Management sought clarification if this trend is concerning, suggesting it’s not significant given FY’22/’23 reduction noted possibly influenced by Section 10 impact on the matter under discussion.

Resolution:

The Committee endorsed progression of NDISA Board approval signing of its financial statements for fiscal year ending June 2025.

Section 4.3: Participant Plan Provision & Residential Aged Care Payable Report - JUNE 2025 Review

Overview provided by Mr Gifford highlighting key matters including:

(\text{Participant Plan}\$ \text{Provision}\ $725 million; RAC payable report:[ ]$ )
Data integrity adjustment factor adopted to account uncertainty from PACE national roll-out at [June] end date.

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June 2024 which had introduced some volatility in payments and changes to processing patterns.

The Australian National Audit Office (ANAO) have reviewed the Participant Plan Provision Report with support from KPMG Australia. KPMG Australia have completed their review and provided clearance to the ANAO. The Committee discussed the Participant Plan Provision and participants that are still transitioning over to PACE, noting that the issues observed last year have mostly been resolvedand there are no longer concerns that there are any material data integrity issues

Resolution

The Audit and Risk Committee endorsed the Participant Plan Provision and Residential Aged Care Payable. Mr Breitkreuz: Left the meeting

Performance Reporting*

Annual Performance Statements

Mr Maitland: Joined the meeting Mr Gifford: Introduced a paper providing an update on the 2024-25 Annual Performance Statements showing results for twelve performance measures where seven targets were achieved but five remained unachieved during this financial period. Results changed since previous reporting include:

Revised participant social engagement rate due to correction,
NDIS quarterly reports disclosed within prescribed timeframes now recorded as met. The Committee addressed poor PSG metric performance seeking management clarification regarding timeframe improvements needed along better understanding of work required achieving outcomes; confirmed plans in place improve metrics analysis demonstrating improvement towards PSD measure. Further discussion agreed PSG metrics unfit purpose necessitating next steps refresh. Committee requested narrative about these measures be tightened succinctly considered by Board.

Resolution The Committee agrees statements appropriate with modifications recommending board chair sign Statement Preparation annual performance statements.

Mr Gifford: And left the meeting

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5.2 2024-2025 Freedom of Information Data

**Mr Flowers joined the meeting.

Mr Flowers introduced the paper highlighting capability uplift the Agency undertakes for improving its FOI compliance during financial years 2025–26. The number of FOI requests received increased by 68.7%, leading to reduced statutory timeframe adherence due to volume increase over previous three fiscal periods (FY). However, this rise also resulted in decreased overall compliance within these timeframes compared prior years’ closures (“). The committee further examined declining compliance under FoIA Act’s stipulated timelines along drivers behind rising request volumes alongside risks posed towards agency exposure from participants/applicants via Australian Information Commissioner Office criticism. Management provided insights into factors driving increasing FOI requests such as Music and Art Therapy, new pricing decisions requiring individual responses per legislation; delays processing Participant Information Access (PIA) posing dual risk of escalating FOIs or complaints. Currently,

75% of all FOI requests are made by participants seeking access information aiding decision-making or sharing with their provider. Mr Flowers left after discussing management insight on PIA delay impacts.

Commonwealth Ombudsman - Draft Actions Speak report

**Mr Maitland & Ms Thompson joined; Mr Kurt Fearnley rejoined at:1036am.

Maitland presented overview regarding Office Commonwldhms’ ‘Actions Speak’ draft report outlining Agency’s proposed response approach mitigating associated release risks. Committee discussed planned September 2025 report release likely negative feedback stemming perception that the Agency isn’t addressing recommendations to improve PSG participant experience. PSG measures deemed outdated misaligned operational contexts necessitating review for accurate measuring present-day responsibilities significantly increased since NDIS conception. McNaughton reported meeting w/ s47F - personal privacy Commonwealth Ombudsman about Agency’s proposed response agreement from Health Disability Ageing Deptartment refreshing PS Gmeasures work program previously agreed upon Board July session. The Committee along McNaughton concurred potential deep dive topic later in year for Board views refreshed metrics.

Risk Oversight and Management

Risk Settings 2025-2026 Mr Porter introduced this item and gave an overview for committee consideration as set out in paper highlighting:

Proposed changes to the Risk Appetite Statement (e.g., zero tolerance staff injury)
Detailed descriptions including broader Australian Public Service Values replacing current values.
Simplified language used describe categories providing clarity direction on staff.
Updated elements consistent with Strategic Risks (Strategic Risks).
Outlined risk ratings SLT owners related risks. The Committee requested clarification enterprise risk register specifically incident response plan Cyber Security how agency stores information data storage management advised stored offshore but noted providers own systems may pose a security risk which cannot control workplan should be updated earlier ensure risk settings approved before beginning financial year relate.

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Integrity Update

Mr Dardo introduced the paper advising that overall level of Strategic Risk – Integrity remains critical however investment into Fraud Fusion Taskforce Crack Down On Fraud (CDoF) programs has substantially improved ability detect integrity losses prior invisible.

s47E(d)- certain operations agencies

Furthermore fraud fusion task force crack down fraud payment integrity have improved detection provider risk implement proactive Manual Payment Reviews.s47E(d)- certain operations Agencies s47E(d)- Certain Operations Of Agencies Committee discussed key integrity insights programmes questioned appetite increasing penalties misuse public monies Attorney General Office indicated increased penalties reviewed determined time magistrates. The committee sought assurance from management integrity intervention programs do not negatively impact genuine participants receiving appropriate supports Management advised every intervention supported participant safety analysis. The Committee thanked Mr Dardo his team very important work they are doing.Mr Dardo left meeting. 6 Quarterly Risk Report Mr Porter introduced item gave overview for committees consideration set out in paper highlighting particularly:

The 2025–26 Risk Appetite Statement and strategic ratings include simpler language clarifications updates clear appropriate.- Other risks remain unchanged reflect high risk agency carries fraudulent matters Agency continuing closely monitor with rating trends.The Committee discussed quarterly report noting active managing several operational issues reporting format. Committee agreed further improve linkage between emerging risks strategies noted revised was improvement. The Committee also discussed the new approach to communications evidenced recent Art Music therapy release commented positively campaign bring sector along excellent position placed thisAgency Board. OFFICIAL: SENSITIVE

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FOI: 25/60-1960

Legal Issues and Administrative Review Tribunal Program

Mr Cheever & Flowers joined.

Overview:

Mr Flowers presented an overview on key matters including legal professional privilege (s42), increased expenditure in Legal Services Coordination, Agency’s total legal spending up +37% since ’24-’25. The Agency collaborates with OLS regarding compliance cases where they did not comply w/legal directions, discussing cost increases due to section 10 cases, ART timelines, panel law firm performance reviews. Agency is proactive providing feedback regularly about capacity needs. Chief Counsel signed Compliance Certificate before submission to Attorney-General’s Dept., NDIA case load management ongoing discussion ensuring firms meet agency requirements.

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FOI 25/26-1960

Section 8.2 Audit Management Report

Mr Porter introduced the paper and gave an overview of the key matters for the Committee’s consideration as set out in the paper provided updates on key activities.

The Agency will bring Internal Audits Plan before endorsement each financial year beginning with future years. The Committee discussed:

The rigorous internal program, agreeing comprehensive approach is necessary address all risks exposed to agency;
Importance clear timeline view recommendations brought forward monthly basis tracking acquittal recommendation.

Committee noted change outsourced audit support additional firms contracted which assist prevent conflicts interest where current partner carrying work other parts Agency. Resolution: Audit Risk Committee approved revised Internal Audit Strategy Charter plan from FY24-FY27. Risk Committee noted status Internal Audit Program open issues Revised Branch operating model.

External Activity

ANAO Audit Activity Reports

introduced Paper Overview Key Matters Consideration Noted Topics Covered Items Financial Statements Good Quality Improvement Previous Reporting Unmodified Board Management Work Hard Improve Outputs Thank Staff Delivering Improvements. Meeting Close Other Business Chair acknowledged Fraud enquiries by ANAO Response NDIA Financial Performance Statement Audits agreed meet next week full committee timely manner. s47F - personal privacy reported effectiveness NDIS Commission Regulatory Functions report tabled parliament. circulate Effectiveness NDIS Safeguards Commission’s Report Tabled Parliament Action 5: Secretariat arrange a meeting for the Committee discuss respond ANAO inquiries of NDIA Audit and Risk Committee for the National Disability Insurance Agency (NDI).

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Financial Statements and Performance Statements Audits 2024–25 in the week commencing September 15th.

Meeting Close

The Chair closed the meeting at 1:46pm

The next Audit & Risk Committee meeting will be held on Thursday November thirteenth,online via MS Teams,. These minutes are prepared by Board Secretary according to Section one hundred forty-one of the NDIS Act.A quorum consists with a majority member’s presence.All decisions were made with an adequate number.