4.78 MB - Perth Airport

The main responsibilities of the audit committee are to:
• review and report to the board on the annual financial report and all other financial information published by the company or released to
the market;
• assist the board in reviewing the effectiveness of the organisation’s internal control environment covering:
- effectiveness and efficiency of operations
- reliability of financial reporting
- compliance with applicable laws and regulations
• approve the risk management framework, monitor its effective operation including the purchase of insurance contracts for certain risks;
• recommend to the board the appointment, removal and remuneration of the external auditors, and review the terms of their engagement,
the scope and quality of the audit and the auditor’s independence; and
• review the level of non-audit services provided by the external auditors and ensure it does not adversely impact on auditor independence.
In fulfilling its responsibilities, the audit committee receives regular reports from management and also meets with the external auditors at
least three times a year. The external auditors have a clear line of direct communication at any time to the Chairman of the audit committee.
They are invited to attend committee meetings and receive copies of the relevant papers and minutes.
The audit committee has authority, within the scope of its responsibilities, to seek any information it requires from any employee or external
party. It reviews the annual representation letter from the management on the adequacy, integrity and completeness of the financial systems
and financial statements the Board receives.
RISK ASSESSMENT AND MANAGEMENT
The company’s focus on risk management recognises that it is, prima facie, an issue for senior executives. The corporate risk management
framework supports this focus and provides a structured context for personnel to undertake an annual review of the past performance of,
and to profile the current and future risks facing, their area of responsibility.
This risk information is consolidated and used as key input to the annual corporate strategy workshop attended by senior executives and
operational management. This is held each year away from the day to day pressure of operational activities and provides specific focus on the
identification of the key business and financial risks which could prevent the company from achieving its objectives. Each key risk area is
assigned to a relevant senior officer. That person is responsible to ensure that appropriate strategies and controls are in place to effectively
manage that risk. The overall performance of each year’s risk management plan is monitored by the audit committee on an ongoing basis.
CAPITAL MANAGEMENT POLICY
The board has adopted a prudent approach to treasury management through the development of a Capital Management Policy. This policy
is aimed at promoting greater financial discipline in areas of shareholders distributions, leverage, hedging, liquidity, funding of capital
expenditure and compliance with senior debt covenants.
REMUNERATION
It is the company’s objective to provide maximum stakeholder benefit from the retention of a high quality Board and executive team by
remunerating directors and key executives fairly and appropriately with reference to relevant employment market conditions.
During the year, the parent company’s (ADG’s) shareholders unanimously approved the payment of $1m pa of Directors Fees to Directors of
WAC. The shareholders directed WAC to enter into a Directors Remuneration Scheme (DRS).
The WAC Board have approved the implementation of the DRS, which provides for payment of directors fees to directors appointed by
shareholders in proportion to the respective shareholding of each shareholder in the parent entity (ADG).
Where shareholders have elected, their representative director receives the proportionate directors fee. If shareholders elect for their
representative director not to receive any remuneration, the shareholder receives the proportionate director fee as consideration for the
procurement of the representative director.
7