Audit committee and internal audit report
Activities
Internal Audit Unit
Priorities for 2006-07
The Audit Committee is an independent advisory body to support the Director-General meet his financial management responsibilities under the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997. The committee met five times during the year.
Committee membership:
Peter Henneken
Director-General (chair)
Brett Walker
General Manager, Executive and Strategic Services
Brett Gresinger
Senior Business Services officer, Executive and Strategic Services
Greg Cumberland
Regional Manager (Industrial Relations), Brisbane South and Gold Coast Region
Michael Schafer
Director, Audit and Operational Review Branch, Queensland Health (independent member)
The committee was assisted by officers from the Queensland Audit Office (QAO), the Director, Business Services, Executive and Strategic Services and the Director, Internal Audit Unit, Department of Employment and Training.
Activities
- Reviewed the adequacy of the strategic and annual audit plans and the quality and timeliness of internal audit reports.
- Reviewed and evaluated internal audit function performance (including annual audit plan progress).
- Discussed matters raised by the QAO and reviewed action on recommendations by the internal auditors or the QAO.
- Reviewed and discussed technical and/or operational issues relating to the finalisation of annual financial statements.
The audit committee observed the terms of its charter and had due regard to Queensland Treasury's Audit Committee Guidelines.
Internal audit activity
Internal Audit Unit
The Department of Industrial Relations' internal audit services are provided by the Department of Employment and Training's Internal Audit Unit (IAU) under a service agreement and joint annual audit plan. IAU provides independent advice to the Director-General about the department's effectiveness and efficiency, and advises business unit managers about their operational risks, and the internal control systems designed to mitigate those risks. The unit operates in accordance with standards issued by the IIA and uses a risk assessment methodology based on AS/NZS 4360:2004 Risk Assessment Standard.
IAU contributed to the organisation by:
- focusing its efforts on audits with a business improvement, consulting or strategic focus to ensure alignment of business activities with the strategic direction of the department
- reviewing and monitoring internal controls and providing advice on risk management and systems improvements
- reviewing financial reports, including performance information supplied to the accountable officer, executive groups and committees
- maintaining a consultative relationship with external audit.
Post-audit surveys found overall satisfaction was 94% (target 75%) and clients reported being better informed about systems controls and risks.
Priorities for 2006-07
- Maintaining its position as a primarily strategic audit function with a focus on value-adding and information and communication technology systems audits.
- Assist the department to achieve practical compliance with all relevant legislation and regulations.
- Maintain a strong control environment where risks are identified, evaluated and managed.
- Reduce control costs by identifying redundant/duplicate controls and encouraging a climate of acceptance of a level of residual risk.
Last updated November 8, 2006
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