The Department of Finance has published a new resource management guide for non-corporate entities in the Australian Public Service examining the make-up and role of audit committees.
The Department’s guide titled A Guide for Non-corporate Commonwealth Entities on the Role of Audit Committees, frames the review work of an audit committee and includes tools to assist accountable authorities establish well-functioning audit bodies.
“Audit committees are a key component of the governance of non-corporate Commonwealth entities,” the Department said.
“If properly utilised, they can significantly assist the accountable authority in meeting their duties and responsibilities under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).”
It said the Guide included matters the accountable authority could consider when determining the audit committee’s functions, structure and conduct and it might also assist audit committees understand their role and responsibilities.
“Finance is currently developing a separate guide on audit committees for corporate Commonwealth entities,” the Department said.
“Previously, under the Financial Management and Accountability Act 1997 (FMA Act), Chief Executives of Agencies were held accountable for the use and management of resources primarily through the publication of annual reports including the annual financial statements.”
Under the PGPA Act, accountable authorities are also required to produce and include new statements on non-financial performance as part of their annual reports.
“This reflects the emphasis that the PGPA Act, as distinct from the FMA Act, places upon recording, measuring, assessing and reporting on entity performance by the accountable authority,” it said.
The Department said the new guide replaced resource management guides Audit Committees for Commonwealth Entities and Commonwealth Companies, and Information Sheet for Commonwealth Entities on Audit Committees and Performance Reporting.
The 35-page Guide can be accessed at this PS News link.
