Annual Report 2007-08 - Plumbing Industry Commission

Audit Committee and annual
internal audit for 2008
The primary purpose of the Commission’s
independent Audit Committee is to ensure
the Commission has strong corporate
governance and is perceived as open and
accountable in its decision-making, the
management of its operation and the
stewardship of its funds.
Major duties and responsibilities of the
Audit Committee within its charter are:
• to review the scope of the internal audit
plan and program and the effectiveness
of the function
• discuss with the external auditor the
scope and planning of the audit
• critically analyse and follow up any
internal or external audit report that
raises significant issues relating to risk
management, internal control, financial
reporting and other accountability or
governance issues
• monitor the risk exposure of the
Commission by determining if
management has appropriate risk
management processes and adequate
management information systems
• monitor ethical standards and related
party transactions by overseeing the
Commission’s performance against the
Corporate Plan
• review and recommend for adoption,
the Commission’s draft annual financial
report.
The Audit Committee reviewed its
charter in 2007–08 in order to ensure it
met its duties and responsibilities as an
independent advisory committee to the
Plumbing Industry Commissioner.
Members of the Commission’s Audit
Committee during 2007–08 were:
• Mr Ian Sargent, Chairperson – Chief
Financial Officer, Victorian WorkCover
Authority
• Mr Jeff Webb – Director, Deloitte Touche
Tohmatsu
• Ms Carmel Coate – Executive Director,
National Fire Industry Association and
Audit Committee representative of the
Plumbing Industry Advisory Council.
The Audit Committee meets at least
quarterly. During 2007–08, all members
attended on a regular basis and remained
independent of the Commission during the
financial year, consistent with Guideline 3
of the Financial Management Compliance
Framework of the Department of Treasury
and Finance. Meetings have included
presentations by both the internal and
external auditors and reviews of the
Commission’s operations, five-year
corporate plan, annual business plan and
budget and risk management processes.
Internal auditors RSM Bird Cameron
(Chartered Accountants) completed
the Commission’s annual internal audit
in May/June 2008. RSM Bird Cameron
reported no significant weaknesses
in the internal financial controls and
business risk management practices of
the Commission. The 2008 internal audit
examined the Commission’s assessment of
responses to previous internal and external
audit reports, business risk, project and
contract management, financial systems
and budgeting, the IT general control
environment, and the development and
implementation of the PUMA (Practitioner
User Management Application) project.
The level of non-audit services provided
by the Commission’s external auditor, the
Victorian Auditor-General, are compatible
with maintaining auditor independence.
Compliance with Financial
Management Act 1994,
Directions of the Minister for
Finance, and Federal and State
tax legislation
Financial and tax compliance audits by
the Commission’s internal auditors RSM
Bird Cameron during 2007–08 found
no significant non-compliance issues in
relation to the Financial Management Act
1994, the Directions of the Minister for
Finance, or Federal and State Government
tax legislation.
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