Senate Committees & Working Parties

Audit & Risk Committee

Members

Ms Eva Skira (Deputy Chancellor) (Chair)

Mr Brian Aitken

Mr Gavin Buckingham*

Ms Andrea Hall*

Ms Liz Harris

Ms Beverley Schubert*

* Denotes a person who is not a current member of Senate

Terms of Reference

The Audit and Risk Committee is a standing committee of Senate established in accordance with sections 12(3) and 18(1) of the Murdoch University Act 1973. The Committee operates in accordance with the Principles for Senate Standing Committees and conducts its business in accordance with the Senate Standing Orders.

1.	Purpose
	1.1	The Committee’s purpose is to assist Senate meet its governance and management control oversight responsibilities.
2.	Authority
	2.1	The Committee has authority to investigate any activity under its Terms of Reference and obtain information from any employee or officer of the University. The Committee may obtain independent advice, as approved by the Chancellor in consultation with the General Counsel. This advice will be at the University’s cost.
	2.2	The Committee has no executive powers unless expressly delegated.
3.	Accountability
	3.1	The Committee reports directly to Senate and has oversight of:
		RISK MANAGEMENT
		3.1.1	Ensures the risk management framework is appropriate for university operations and controls are operating to mitigate business risks to an acceptable level. There is no scope restriction on risk categories the Committee may review. The Committee will review risk registers as required.
		INTERNAL CONTROLS AND INTERNAL AUDIT
		3.1.2	Ensures adequate systems of internal control are in operation to mitigate key business risks, promote the effectiveness, efficiency and economy of operations, and report accurate and meaningful management information.
		3.1.3	Confirms major operational areas of the University are subject to internal review on a periodical basis.
		3.1.4	Approves Internal Audit’s Strategic and Annual Audit Plans and ensures the internal audit function is operating effectively, independently and in accordance with the International Standards for the Professional Practice of Internal Auditing.
		3.1.5	Confirms the Internal Audit and Risk Management function is resourced to fulfill its purpose and is given access to all necessary information. Selects suitably qualified firm/individual to lead the internal audit function.
		3.1.6	Monitors appropriate and timely action is taken by the relevant managers to rectify major areas of concern identified by internal and external audit.
		FINANCIAL REPORTING
		3.1.7	Reviews the annual financial statements, key performance indicators and Annual Report considering whether they are complete, consistent with information known to Committee members, and reflect appropriate accounting principles.
		3.1.8	Recommends the annual statutory accounts, key performance indicators, certifications and Annual Report to Senate.
		3.1.9	Reviews significant accounting policy changes made by the university, large legal claims on the university and major frauds and thefts.
		3.1.10	Oversees reliability and integrity of financial and related information systems.
		3.1.11	Receives copies of quarterly financial statements for information purposes. Receives a report from management that reconciles the management accounts at year end to the annual financial statements and that details the impact of key accounting and reporting requirements and any accounting policy changes.
		EXTERNAL AUDIT
		3.1.12	Understands the Auditor General’s advised audit fee, audit plan, audit scope and approach, including their review of internal controls over financial reporting, coordination of audit effort with internal audit and discusses accounting and reporting issues. This will involve meeting with the Auditor General prior to the commencement of the audit, receiving feedback during the audit and on completion.
		3.1.13	Where applicable, provides comment to the Auditor General in relation to the selection, appointment, performance and independence of any contracted auditor.
		3.1.14	Considers audit opinion, audit findings and other reports provided to the Committee by the Auditor General.
		3.1.15	Confirms management closes out high risk external audit recommendations on a timely basis and other issues as appropriate.
		COMPLIANCE
		3.1.16	Reviews the effectiveness of the system for monitoring compliance with laws and regulations and the results of management's investigation and follow-up (including disciplinary action) of any instances of non-compliance.
		3.1.17	Reviews reports issued to, and findings resulting from, any compliance examinations by regulatory agencies, and any auditor observations.
		3.1.18	Receives regular updates from management regarding compliance matters.
4.	Reporting
	4.1	To report to the Senate:
		4.1.1	Following each ARC meeting (usually quarterly) on its deliberations, by furnishing its minutes to the Senate.
		4.1.2	On any pressing matters, to report to the Chancellor before that time.
		4.1.3	Once a year to provide an overview of audit and risk management matters.
		4.1.4	Reviewing this Terms of Reference and the Internal Audit Charter annually and recommending changes to Senate as necessary.
5.	Membership and Composition
	5.1	3 Senators who are not University staff or students.
	5.2	Up to 3 co-opted external members who are not Senators or University staff.
	5.3	All members must be independent from University management.
	5.4	The membership will include at least one male and at least one female.
6.	Committee Skills Mix
	A broad mix of the following skills:
	6.1	High sense of probity.
	6.2	Questioning mind and willingness to ask probing questions.
	6.3	Financial understanding (ability to understand a set of accounts).
	6.4	At least one member with financial skills and experience and who is a member of a recognized accounting body.
	6.5	An understanding of the tertiary sector.
	6.6	At least one member with experience in risk management.
7.	Terms of Office
	7.1	Members are appointed for a term up to 3 years.
8.	Standing Observers
	8.1	Standing observers: Vice Chancellor, Chief Financial Officer, General Counsel and a nominee of the Office of the Auditor General.
9.	Secretary
	9.1	Director of Internal Audit and Risk Management.
10.	Meetings
	10.1	The Committee meets at least 4 times a year.
11.	Quorum
	11.1	The Quorum is 3 members.

Murdoch University Senate

Senate Committees & Working Parties

Audit & Risk Committee

Terms of Reference