Audit Risk Committee Chair - NSW Government · Audit and Risk Committees at any one time (each...

NSW Department of Premier and Cabinet and

NSW Department of Commerce

PREQUALIFICATION SCHEME: AUDIT AND RISK

COMMITTEE INDEPENDENT CHAIRS AND MEMBERS

GUIDELINES FOR AGENCIES AND MEMBERS

May 2009

CONTENTS

INTRODUCTION....................................................................................................................5

SCHEME AIMS ......................................................................................................................5

CAPABILITY AREAS ............................................................................................................5

Independent Chair..................................................................................................................5

Independent Member .............................................................................................................6

FREQUENTLY ASKED QUESTIONS ....................................................................................6

1. How does the Scheme operate? .....................................................................................6

2. Are any checks required on panel members prior to being engaged? .............................7

3. How is “independent” defined? ........................................................................................7

4. Do independent chairs and members have to be sourced from the prequalified panel? ....................................................................................................7

5. What happens to a currently serving independent chair or member who does not apply for pre-qualification? .......................................................................7

6. Can prequalified panel members be appointed to any NSW public sector agency’s agency Audit and Risk Committee? ..................................................................8

7. Does the Scheme allow for prequalified panel members to be appointed to more than one Audit and Risk Committee? .................................................................8

8. On what terms are prequalified persons engaged? .........................................................8

9. Does the NSW Cabinet need to approve appointment of panel members before they become effective?.......................................................................................10

10. What induction and training will be provided to panel members? ..................................10

11. Are independent Audit and Risk Committee members covered for Professional Indemnity and other insurance? ................................................................10

12. What are the record-keeping requirements of the Scheme?..........................................10

13. How is the performance of Audit and Risk Committee panel members monitored and reported on? ..........................................................................................11

14. How long will the Scheme operate for? .........................................................................11

Sample Letter of Engagement and Member Acceptance .. ..............................................12

Schedule 1: Current membership of NSW Government Au dit and Risk Committees...13

SCHEDULE OF DOCUMENT AMENDMENTS

Revision Number

Date Update Description

0. 4 May 2009 Document Original - first publication

CONTACT DETAILS

The Performance Review Unit of the NSW Department of Premier

and Cabinet is the contact for matters related to the services to

be performed and the skills levels and capacity required under the

Scheme. Persons requiring information on these matters should

contact:

Peter Connelly

NSW Department of Premier and Cabinet

Level 14, 4-6 Bligh House, Sydney, NSW

e-mail: [email protected]

Ph: 9228 3630

Fax: 9228 3075

The NSW Department of Commerce manages the operational

aspects of the Scheme. For matters related to the operation of the

Scheme contact:

Stuart Wood

NSW Department of Commerce

McKell Building, 2-24 Rawson Place, Sydney NSW

e-mail: [email protected]

Ph: 9372 8886

Fax: 02 9372 8844

This document is available at:

www.commerce.nsw.gov.au > procurement > audit and risk

committee prequalification schemes

INTRODUCTION

The advice of highly skilled Audit and Risk Committee independent Chairs and Members is an

important element of ensuring strong governance of NSW public sector agencies.

The NSW Department of Premier and Cabinet, in conjunction with the NSW Department of

Commerce, has established the Prequalification Scheme – Audit and Risk Committee

Independent Chairs and Members (the “Scheme”). The Scheme will assist NSW public sector

agencies comply with the requirements of the NSW Treasury Internal Audit and Risk

Management Policy (forthcoming), as it relates to the engagement of Audit and Risk

Committee Independent Chairs and Members.

These guidelines are to assist agencies (and, where appropriate, statutory corporations)

seeking to utilise the Scheme and should be read in conjunction with the Scheme Conditions.

SCHEME AIMS

The Scheme aims to:

• improve probity standards and quality assurance by allowing for third party assessment of

independent persons available for engagement to public sector Audit and Risk Committee

positions; and

• streamline the engagement of suitable persons to public sector Audit and Risk Committee

positions by pre-qualifying independent individuals with demonstrated skills and

experience in the area.

CAPABILITY AREAS

The NSW Department of Commerce will maintain a list of individuals with relevant skills and

who satisfy the criteria relating to the capability areas for “Member” and “Chair” (the

prequalified panel). A Chair must fulfil the requirements for both Member and Chair even if

they only seek appointment as a “Chair”.

Independent Chair

1. Leadership qualities and the ability to promote effective working relationships in

complex organisations.

2. An ability to communicate complex and sensitive assessments in a tactful manner to

chief audit executives, senior management, board members and Ministers.

3. A sound understanding of:

a) the principles of good organisational governance and capacity to understand public sector accountability, including financial reporting;

b) internal audit operations, including selection and review of chief audit executives; and

c) risk management principles.

Independent Member

1. Extensive senior level experience in governance and management of complex

organisations, an ability to read and understand financial statements and a capacity to

understand the ethical requirements of government (including potential conflicts of

interest).

2. Functional knowledge in areas such as: enterprise risk management; performance

management; human resources management; internal and external auditing; financial

reporting; accounting; management control frameworks; financial internal controls;

governance (including planning, reporting and oversight); or business operations.

3. A capacity to form independent judgements and willingness to constructively

challenge/question management practices and information.

4. A professional, ethical approach to the exercise of their duties and the capacity to devote

the necessary time and effort to the responsibilities of a member of an Audit and Risk

Committee.

5. Desirable to possess a relevant professional qualification or membership (e.g. Certified

Internal Auditor, Certified Practising Accountant, Certified Practising Risk Manager,

Chartered Accountant, Member of the Australian Institute of Company Directors

(MAICD)).

FREQUENTLY ASKED QUESTIONS

1. How does the Scheme operate?

The Scheme creates a framework for the prequalification of independent individuals with

relevant experience and qualifications who are available to be appointed to positions of

Audit and Risk Committee Independent Chair and Members, serving NSW Government

agencies and statutory corporations.

Each relevant Chief Executive (or group of CEOs in the case of a shared ‘cluster’

committee) selects and appoints the independent Chair and Members of their respective

Audit and Risk Committee from the prequalified panel based on NSW Treasury

requirements, the needs of their organisation and the skill-set of the available pre-qualified

panel members.

2. Are any checks required on panel members prior t o being engaged?

Criminal record, financial status (bankruptcy) and Australian Business Number

(ABN)/Registered Business Name (RBN) checks have been undertaken for all

prequalified panel members as part of the prequalification process, as appropriate.

Additionally, the prequalified panel member must declare any conflict of interest relating to

an individual engagement and an offer must not be made or accepted if a conflict of

interest becomes apparent. It is the responsibility of CEOs and panel members to ensure

that any conflicts of interest are declared and managed prior to and throughout any

engagement under this Scheme.

3. How is “independent” defined?

An independent Chair or Member should not have a recent close association with the

agency or its CEO. A recently retired senior executive of an agency or a close associate

of the CEO would not be defined as “independent”.

Similarly, a current or recent external provider of internal audit services to an agency

would not be considered independent.

Guidelines for assessing independence and conflicts of interest are set out in the NSW

Treasury Internal Audit and Risk Management Policy (forthcoming)

4. Do independent Chairs and Members have to be sou rced from the prequalified

panel?

Yes. From 30 April 2009, all new appointments as independent Chairs and Members

must be made from the prequalified panel for NSW public sector agencies. Members of

State Owned Corporation (SOC) Audit and Risk Committees are generally members of

the independent Board. However, if a person who is not a member of the Board is to be

appointed to a SOC Audit and Risk Committee, then the SOC is encouraged to ensure

that the appointment is made from the prequalified panel.

5. What happens to a currently serving independent Chair or Member who does not

apply for pre-qualification?

Serving independent chairs and members of existing Audit and Risk Committees from

NSW public sector agencies that do not join the Scheme may continue to serve until the

expiry of their current term of appointment, where a term is set. Where no term is set for

the appointment, the currently serving independent chair or member needs to be qualified

by 30 November 2009. Non-prequalified independent chairs or members cannot be re-

appointed.

6. Can prequalified panel members be appointed to any NSW public sector agency’s

Audit and Risk Committee?

Yes. Once prequalified Chairs and Members meet the independence and conflict of

interest criteria set out in NSW Treasury Internal Audit and Risk Management Policy

(forthcoming), they can be engaged by agencies under the Scheme. It is the responsibility

of the CEO to ensure that these criteria are applied before any such appointment is made.

The NSW Treasury Internal Audit and Risk Management Policy also requires the CEO

annually to attest that each independent member of the Audit and Risk Committee meets

the mandated independence and conflict of interest criteria.

7. Does the Scheme allow for prequalified panel mem bers to be appointed to more

than one Audit and Risk Committee?

Yes. Prequalified independent Chairs or Members may be appointed to up to five NSW

Audit and Risk Committees at any one time (each shared ‘cluster’ Committee counts as

one).

It is the responsibility of both prequalified panel members and CEOs to ensure that this

limit is not exceeded and that NSW Commerce is advised of all engagements. Commerce

will record this information in the Audit and Risk Committee panel database. A schedule is

attached to the standard letter of appointment to ensure the database is kept up to date.

8. Can public servants be appointed to an Audit and Risk Committee?

Current public servants from the NSW public sector employed under the Public Sector

Employment and Management Act 2002 cannot serve as an independent Member or

Chair of an audit and risk committee. This is to ensure that independence, real and

perceived, is maintained.

Public servants from other jurisdictions may be prequalified as independent Chairs or

Members. However, the rules relating to secondary employment in their organisation will

need to be satisfied, including the management of any conflict of interest, and written

confirmation will need to be provided by an authorised person in their jurisdiction.

9. On what terms are prequalified persons engaged?

The terms of engagement are set out in the Scheme Conditions document, as updated

from time to time, and the letter of engagement. The engaging agency and the panel

member will need to enter into a separate written agreement for each engagement.

The standard form of agreement is set out at Schedule 2 of the Scheme Conditions.

Agencies should not modify the terms of the agreement unless there are exceptional

circumstances which warrant modification. Advice can be sought from the Department of

Commerce or NSW Treasury.

Note that the Scheme Conditions document includes provision to remove members from

the Scheme and outlines the processes to be followed in the case of unsatisfactory

performance.

Independent Chairs and Independent Members engaged under the Scheme will be

remunerated at the current rate recommended by the Statutory and Other Officers

Remuneration Tribunal (SOORT). These rates are reviewed every two years.

The rates applicable from 24 October 2008 are:

Agency size Indicator Chairperson fee Member fee

Large Organisations with expenditure greater than $400m

$20,000 per annum $2,000 per day

Medium Organisations with expenditure less than $400m but greater than $50m


Small Organisations with expenditure less than $50m


The following fee structure is applicable to multi-Agency arrangements:

Multi Agency Audit and Risk Committees Fee category

Up to and including three small agencies Medium

Two or more medium agencies Large

Any combination of small and medium agencies Large

The rates cover all costs of Independent Chairs and Independent Members engaged

under the Scheme excluding subsistence and travel costs outside the Sydney

Metropolitan Area and/or from Interstate. The rates include employee related costs, data

processing, the provision of personal computers, any other tools or equipment required in

the provision of services, and travel costs within the Sydney metropolitan area (unless the

panel member is from Interstate).

Subsistence and travel expenses outside the Sydney metropolitan area and/or where the

panel member is from Interstate are to be charged at actual cost, or at the rates specified

under the Crown Employees (Public Service Conditions of Employment) Reviewed Award

2006, whichever is the lesser.

10. Does the NSW Cabinet need to approve the appoin tment of panel members before

they become effective?

Generally all external members of boards and committees need to be approved by

Cabinet under the NSW Government Boards and Committees Policy. However, Cabinet

does not need to approve appointments to Audit and Risk Committees as Audit and Risk

Committees provide advice to agencies rather than Ministers.

11. What induction and training will be provided to panel members?

Panel members will be required to complete an induction course provided jointly by NSW

Treasury, the Department of Commerce and the Department of Premier and Cabinet.

Additional briefing sessions may also be arranged from time to time to update panel

members about the Government’s expectations and requirements in relation to the

operation of Audit and Risk Committees. It is anticipated that each agency also will

provide an induction to their committee members.

12. Are independent Audit and Risk Committee member s covered for Professional

Indemnity and other insurance?

Each NSW Government agency and its CEO is responsible for ensuring that the Audit

and Risk Committee has the appropriate mix of skills and expertise to successfully

implement its charter and that the agency holds insurance coverage for these activities.

Each agency should consider whether its existing insurance arrangements provide

sufficient coverage for Audit and Risk Committee members in relation to claims for loss or

damage made against them in their capacity as members. Panel members should satisfy

themselves that the agency has sufficient insurance coverage relating to their role on the

Audit and Risk Committee prior to accepting an appointment and, if necessary, seek

independent legal advice as to its efficacy.

13. What are the record-keeping requirements of the Scheme?

The appointee to an audit and risk committee is required to provide the following details to

the agency and the Department of Commerce prior to the appointment taking effect:

• the name of the panel member;

• the role of the panel member

• payment and duration for each appointment;

• the nature of the appointment and any subsequent changes to an appointment; and

• details of any other appointments to NSW Government Audit and Risk Committees.

This information will be centrally maintained by the Department of Commerce.

14. How is the performance of Audit and Risk Commit tee panel members monitored

and reported on?

Audit and Risk Committees are required to establish their own annual performance

monitoring system consistent with professional standards. Additionally, the NSW Auditor-

General may also assess the performance of panel members appointed to Audit and Risk

Committees each year.

Detailed information on performance issues can be found in sections 15 to 18 of the

Scheme Conditions. Agencies should follow the steps outlined in the Scheme Conditions

to ensure that they observe procedural fairness in the course of performance reporting.

15. How long will the Scheme operate for?

The Scheme commenced 6 February 2009 and will conclude on 5 February 2013, and

may be extended at the discretion of the NSW Departments of Premier and Cabinet,

Treasury and Commerce.

The Scheme will be monitored by the Departments of Premier and Cabinet, Treasury and

Commerce to assess whether the objectives and intent are being met. Modifications may

be made at the Departments’ discretion during the life of the Scheme.

Sample Letter of Engagement and Member Acceptance

Name Address Dear Ms / Sir You have been selected from the Prequalification Scheme: Audit and Risk Committee Independent Chairs and Members to be an [independent Member or independent Chair (delete as applicable)] of the Department of [#] Audit and Risk Committee. The Committee meets [#] times a year, including a meeting in [#] to review the annual financial accounts. A copy of the Audit & Risk Committee Charter and Department’s Code of Conduct applicable to your engagement are enclosed. The Department’s most recent Annual Report is available online at [#insert url]. The conditions under which you will be engaged are detailed in the Scheme Conditions and the Scheme Guidelines issued by the NSW Treasury, NSW Department of Premier and Cabinet and the NSW Department of Commerce, copies of which are also enclosed. You will also be required to comply with any other legislation, regulations or guidelines applicable to internal audit and risk management in the NSW public sector, as they apply to Audit and Risk Committees. You will be remunerated at the current rate for a [#] sized agency recommended by the Statutory and Other Officers Remuneration Tribunal (SOORT), which is [$# per day or # per annum (delete as applicable)]. For further information regarding remuneration, subsistence, travel and insurance please refer to the Scheme Conditions and the enclosed Guidelines. The engagement will be for [#] years starting [#]. Note that this engagement can be terminated by mutual agreement and in accordance with the Scheme Conditions. Should you have any questions or wish to discuss your engagement, please contact me on [###]. If you wish to accept this offer please sign the declaration at the end of this letter and return it to the address set out below within 5 business days. I look forward to receiving notice of your acceptance and to working with you on the [#] Audit and Risk Committee. Yours sincerely Director General I hereby accept the offer of engagement contained in this letter and agree to carry out the services in accordance with the Scheme Conditions. I confirm that I do not have any conflict of interest that would prohibit me from accepting this engagement and will advise the agency CEO(s) and the Department of Commerce should a conflict arise during the course of my engagement. I confirm that I am not a member of more than four other NSW Government Audit and Risk Committees as outline on the attached schedule. Print Name Signature / / Return a copy to Director General Department of XXX and Mr Stuart Wood, NSW Department of Commerce,

McKell Building, 2-24 Rawson Place, Sydney NSW e-mail: [email protected]

Schedule 1: Current membership of NSW Government Au dit and Risk Committees Agency (List multiple agencies if a cluster A&R Committee )

Name of Committee Role (Chair or Member) Engagement Fee (p.a.)

Start Date End Date

1.

2.

3.

4.

5.

6.

7.

Print Name Sign ature Da te Return a copy to Director General Department of XXX and Mr Stuart Wood, NSW Department of Commerce, McKell Building, 2-24 Rawson Place, Sydney NSW e-mail: [email protected]

NSW Treasury and NSW Department of Commerce

PREQUALIFICATION SCHEME: AUDIT AND RISK COMMITTEE INDEPENDENT CHAIRS AND MEMBERS

2009 - 2012

SCHEME CONDITIONS

Date: 20 January 2009

RFT No. 0802440

Prequalification Scheme: Audit and Risk Committee Independent Chairs and Members 2009 - 2012

1


2

SCHEDULE OF DOCUMENT AMENDMENTS

Revision Number

Date Update Description

0. 18 December 2008 Document Original - first publication 1. 20 January 2009 Clause 11.1 amended for review of the Assessment

Committee’s decision. Clause 12.2 requiring Professional Indemnity Insurance deleted and sub-clauses of Section 12 renumbered Clause 15.1(b) deleted and sub-clauses of Section 15 renumbered Clause 17.1(j) added regarding termination of panel membership Clause 17.3 deleted and amendments made to clauses 17.4 and 17.5, and sub-clauses of Section 17 renumbered. Schedule 1, Form A amended to highlight the Applicant. Schedule 1, Form B amended to highlight policy and/or government portfolio areas Schedule 1, Form D Insurance deleted Schedule 1, Form E to Form G renumbered and new Form D amended deleting Accreditation and replaced with prequalification.


3

Contents

1 INTRODUCTION ......................................................................................................... 5 2 DEFINITIONS .............................................................................................................. 5 3 CONFIDENTIALITY ..................................................................................................... 6 4 CODE OF PRACTICE FOR PROCUREMENT............................................................ 6 5 APPLICATIONS FOR PREQUALIFICATION .............................................................. 6 6 REMUNERATION........................................................................................................ 6 7 PREQUALIFICATION PROCESS................................................................................ 7 8 EVALUATION CRITERIA ............................................................................................ 8 9 INTERVIEW WITH ASSESSMENT COMMITTEE....................................................... 9 10 NOTIFICATION OF ASSESSMENT OUTCOME......................................................... 9 11 REQUEST FOR REVIEW OF THE DECISION FOR ADMISSION TO THE

PANEL ......................................................................................................................... 9 12 SPECIAL REQUIREMENTS...................................................................................... 10 13 NOTIFICATION OF ENGAGEMENTS AND CHANGES TO PANEL MEMBER

STATUS..................................................................................................................... 10 14 UPGRADING OF PREQUALIFICATION ................................................................... 10 15 PERFORMANCE REPORTING BEHAVIOUR........................................................... 10 16 PERFORMANCE MANAGEMENT ............................................................................ 11 17 REMOVAL FROM THE SCHEME ............................................................................. 11 18 REQUEST FOR REVIEW OF THE DECISION TO TERMINATE

MEMBERSHIP OF THE SCHEME ............................................................................ 12 19 PUBLICITY ................................................................................................................ 13 20 APPLICANT’S ACKNOWLEDGMENT....................................................................... 13 21 DISCLAIMER ............................................................................................................. 13 22 PREQUALIFICATION NO GUARANTEE OF WORK ................................................ 13 23 REVIEW AND DEVELOPMENT OF THE SCHEME.................................................. 13 SCHEDULE 1 ........................................................................................................................ 14 SCHEDULE 2 ........................................................................................................................ 23


4

CONTACT DETAILS For matters related to the services to be performed and the skills levels and capacity required under the Scheme contact: Peter Connelly Performance Review Unit NSW Department of Premier and Cabinet Level 14, 4-6 Bligh House, Sydney, NSW e-mail: [email protected] Ph: 02 9228 4870 Fax: 02 9228 3075 For matters related to the operation of the Scheme: Stuart Wood NSW Department of Commerce e-mail: [email protected] Ph: 02 9372 8886 or Mobile: 0413 304 462 Fax: 02 9372 8844


5

1 INTRODUCTION A Review of Internal Audit Capacity in the NSW Public Sector by the Performance Review Unit, NSW Department of Premier and Cabinet, recommended strengthening the whole-of-government policy and regulatory framework for governance of internal audit and risk management. The report is available at: http://www.dpc.nsw.gov.au/about_us/our_structure/performance_review_unit Specifically, the Review recommends that agencies establish Audit and Risk Committees with an independent Chair and some independent members to be selected from a central pre-qualified Panel. The advice of highly-skilled Audit and Risk Committee independent Chairs and members is an important element of ensuring strong governance of NSW public sector agencies. When established, the Panel will comprise members with extensive experience across a range of policy areas, and will provide a valuable contribution to the NSW public sector. 2 DEFINITIONS Agency includes NSW Government departments, statutory authorities, statutory corporations and government business enterprises. Appeals Committee means the committee to be convened by a senior executive of NSW Treasury, a representative of a relevant professional body (e.g. IIA) and a senior executive of the Department of Premier and Cabinet to examine appeals by applicants to the Scheme and members of the Scheme who have adverse performance reports warranting termination. Applicant means a person who has submitted an Application for admission to the Scheme. Application means a written application for admission to the Scheme in the form prescribed in Schedule 1. Assessment Committee means the committee responsible for determining the membership of the Panel to be formed under the Scheme in accordance with clause 7.1. Audit and Risk Committee means the committee established by an Agency or group of agencies to provide independent oversight and assurance. A Panel Member may be engaged by an Agency to be an independent chair or member of an Audit and Risk Committee. Departments means NSW Treasury, the NSW Department of Premier and Cabinet and the NSW Department of Commerce, unless otherwise specified. Panel means the list of Panel Members assessed as suitable for engagement by agencies as independent chairs and/or members of Agency Audit and Risk Committees. Panel Member means a person who has applied for, and been granted admission to, the Panel by the Departments.

http://www.dpc.nsw.gov.au/about_us/our_structure/performance_review_unit


6

Performance Report means a report submitted in accordance with clause 16 Scheme means the Prequalification Scheme: Audit and Risk Committees Independent Chairs and Members 2009 – 2012 administered by the Departments. 3 CONFIDENTIALITY 3.1 Information submitted with an Application will be treated as confidential by NSW

Government agencies unless otherwise required by law. 3.2 Information submitted with an Application may be subject to investigation,

reference checking, searches, interview, enquiries, and confirmation. Applicants are deemed to have authorised any such action.

3.3 Once the Scheme commences, agencies seeking to engage independent

chairs or members will be able to view Applications to assist in determining a Panel Member’s suitability for a specific engagement.

4 CODE OF PRACTICE FOR PROCUREMENT 4.1 Panel Members must adhere to the NSW Government Code of Practice for

Procurement at all times. 4.2 Any breach of the NSW Government Code of Practice for Procurement may

result in the termination of an engagement and/or removal from the Scheme. 5 APPLICATIONS FOR PREQUALIFICATION 5.1 Applications must be complete and in the form prescribed in Schedule 1. 5.2 Applications must be delivered in accordance with the delivery instructions set

out in the form prescribed in Schedule 1. 5.3 Only those Applications which fully satisfy all requirements set out in these

Scheme Conditions and the form prescribed in Schedule 1 will be considered by the Assessment Committee.

6 REMUNERATION 6.1 Independent chairs and members engaged via this scheme will be remunerated

at the current rate recommended by the Statutory and Other Officers Remuneration Tribunal (SOORT). These rates will be reviewed every two years.

6.2 The rates applicable from 24 October 2008 are:

Agency size

Indicator Chairperson fee

Member fee

Large Organisations with expenditure greater than $400m

$20,000 per annum

$2,000 per day


7

Medium Organisations with expenditure less than $400m but greater than $50m

$15,500 per annum

$1,550 per day

Small Organisations with expenditure less than $50m

$12,000 per annum

$1,200 per day

6.3 The following fee structure is applicable to multi-Agency arrangements:

Multi Agency Audit and Risk Committees

Fee category

Up to and including three small agencies

Medium

Two or more medium agencies Large

Any combination of small and medium agencies

Large

6.4 The rates shall include all costs of the Applicant excluding subsistence and

travel costs outside the Sydney Metropolitan Area and/or from Interstate and including employee related costs, data processing, the provision of personal computers, any other tools or equipment required in the provision of services, and travel costs within the Sydney metropolitan area (except if the Panel Member is from Interstate).

6.5 Subsistence and travel expenses outside the Sydney metropolitan area and/or

where the Panel Member is from Interstate are to be charged at actual cost, or at the rates specified under the Crown Employees (Public Service Conditions of Employment) Reviewed Award 2006, whichever is the lesser.

7 PREQUALIFICATION PROCESS 7.1 The Assessment Committee will determine the membership of the Panel to be

formed under the Scheme. The Assessment Committee will be convened by a senior representative from the NSW Department of Commerce, and will also comprise senior representatives from NSW Treasury and the NSW Department of Premier and Cabinet, the Institute of Internal Auditors (or other professional body) and a practising internal auditor or chair. The Committee may interview a short list of Applicants for inclusion in the Scheme.

7.2 The Panel to be formed under the Scheme will be composed of Applicants who

are deemed to be qualified following the assessment of an Application submitted in the form prescribed in Schedule 1 and in accordance with the Scheme Conditions.


8

7.3 Applications may be made at any time during the life of the Scheme. The duration of the Scheme will be for four (4) years from commencement, although this can be varied at any time by NSW Treasury, NSW Department of Premier and Cabinet and the NSW Department of Commerce.

7.4 Priority for assessment will be given to Applications received by 6 February

2009. Following this date, Applications will be assessed periodically at the discretion of the Assessment Committee.

7.5 Notwithstanding establishment of the Scheme, existing appointments to Agency

Audit and Risk Committees will continue (except in the case of unsatisfactory performance):

a) for their full term, where a term is specified in the engagement

document(s); or

b) where a term is not specified in the engagement document(s), for 12 months from the date of commencement of the Scheme.

8 EVALUATION CRITERIA 8.1 Applications will be assessed according to the following evaluation criteria:

1. Applicants for the role of Audit and Risk Committee member must demonstrate:

a. Extensive senior level experience in governance and management of complex organisations, an ability to read and understand financial statements and a capacity to understand the ethical requirements of government (including potential conflicts of interest).

b. Functional knowledge in areas such as: enterprise risk management; performance management; human resources management; internal and external auditing; management control frameworks; financial internal controls; governance (including planning, reporting and oversight); or business operations.

c. a capacity to form independent judgements and willingness to constructively challenge/question management practices and information.

d. a professional, ethical approach to the exercise of their duties and the capacity to devote the necessary time and effort to the responsibilities of a member of an Audit and Risk Committee.

e. Possession of a relevant professional qualification or membership (e.g. Certified Internal Auditor, Certified Practising Accountant, Certified Practicing Risk Manager, Member of the Australian Institute of Company Directors (MAICD) is desirable.

2. Applicants for the role of Audit and Risk Committee chair, as well as meeting the requirements for selection as an Audit and Risk Committee member outlined above, must demonstrate:

f. leadership qualities and the ability to promote effective working relationships in complex organisations.


9

g. an ability to communicate complex and sensitive assessments in a tactful manner to chief audit executives, senior management, board members and Ministers.

h. a sound understanding of:

- the principles of good organisational governance and capacity to understand public sector accountability;

- internal audit operations, including selection and review of chief audit executives; and

- risk management principles.

9 INTERVIEW WITH ASSESSMENT COMMITTEE 9.1 Where further clarification is required, an Applicant may be provided with the

opportunity to attend an interview with members of the Assessment Committee. 10 NOTIFICATION OF ASSESSMENT OUTCOME 10.1 The Assessment Committee may accept an Application (with or without

limitation) or reject the Application. 10.2 The NSW Department of Commerce will notify all Applicants of the outcome of

their Application in writing. 11 REQUEST FOR REVIEW OF THE DECISION FOR ADMISSION TO THE

PANEL 11.1 Should an Applicant believe that there are substantive grounds for a review of

the Assessment Committee’s decision not to admit the Applicant to the Scheme, the Applicant may request a review of the decision in writing, providing full details of the reasons for the request, to:

Director General NSW Department of Commerce Prequalification Scheme: Audit and Risk Committee Independent Chairs and Members (Attention: General Manager, Accreditation, Certification & Business Information Unit, Policy Support Services) Level 22 McKell Building 2-24 Rawson Place SYDNEY NSW 2000

11.2 The Appeals Committee will be convened by a senior executive of NSW

Treasury, a representative of a relevant professional body and a senior executive of the NSW Department of Premier and Cabinet and the NSW Department of Commerce. The Appeals Committee is not to include any of the original members of the Assessment Committee, although their advice may be sought. The Appeals Committee will assess the merits of the Applicant’s case. The NSW Department of Commerce will inform the Applicant in writing of the outcome of the review.


10

12 SPECIAL REQUIREMENTS Membership of the Panel to be formed under the Scheme is subject to the following conditions: 12.1 For each Audit and Risk Committee to which the Panel Member is appointed,

the Panel Member will enter into a contract with the individual Agency concerned, unless other arrangements are specified by the Agency.

12.2 The Panel Member will be subject to criminal record and financial status

(bankruptcy) checking prior to engagement. 12.3 Any conflict of interest arising for the Panel Member in relation to an individual

engagement is to be declared prior to appointment to the Panel. 12.4 The Panel Member must comply with relevant professional and departmental

Codes of Conduct. 13 NOTIFICATION OF ENGAGEMENTS AND CHANGES TO PANEL MEMBER

STATUS Panel members must immediately inform the NSW Department of Commerce of any appointment to or resignation from an Audit and Risk Committee or of any significant change in their capability, contact details or address by writing with full details to:

NSW Department of Commerce Prequalification Scheme: Audit and Risk Committee Independent Chairs and Members Attention: General Manager, Accreditation, Certification & Business Information Unit Policy Support Services Level 11 McKell Building 2-24 Rawson Place SYDNEY NSW 2000

14 UPGRADING OF PREQUALIFICATION 14.1 The Departments may upgrade a Panel Member’s status under the Scheme

from member only to chair and member where:

(a) the Panel Member considers that they are eligible for such an upgrade; and

(b) the Panel Member has submitted a written application for such an upgrade, including documentation and other material in support of his or her request.

15 PERFORMANCE REPORTING BEHAVIOUR 15.1 Panel Member performance monitoring and reporting shall be conducted in

accordance with the following principles:

(a) the mutual objective of the parties is to achieve continuous performance improvement;


11

(b) open, proactive and objective performance monitoring and periodic formal reporting is required;

(c) performance issues being promptly addressed by the parties concerned; and

(d) performance issues being discussed openly with the Panel Member to ensure that concerns (such as dissatisfaction with performance) do not come as a surprise prior to formal notification.

16 PERFORMANCE MANAGEMENT 16.1 The Agency/CEO/ Board must establish a mechanism for reporting on the

Performance of the Internal Audit and Risk function, including the performance of the Audit and Risk Committee chair and members.

16.2 As a minimum, an annual assessment of the operation of the Audit and Risk Committee, including the performance of the chair and members is required.

16.3 The Auditor-General may periodically examine Agency implementation of the Better Practice Framework for Internal Audit. This may include mechanisms to examine the performance of the Audit and Risk Committee.

16.4 Where there is an adverse report on the performance or conduct of a Panel Member, a copy should be provided to the CEO (agencies)/ Chair of the Board (SOCs/GTEs), the Panel Member and the Director General NSW Department of Commerce for entry into the Department’s Contractor and Consultant Management System (CCMS).

16.5 If the Panel Member disagrees with an adverse report, the Agency CEO/ Board Chair and the Panel Member should attempt to resolve the disagreement in the first instance.

16.6 Where an adverse report is amended, the Agency CEO/ Board Chair will advise the Director General, Department of Commerce, for the performance information in the Department’s CCMS database will be amended and will advise the Panel Member of the amendment.

17 REMOVAL FROM THE SCHEME

17.1 Membership of the Panel may be terminated if the member has:

(a) breached the Scheme Conditions; or

(b) failed to meet applicable financial requirements; or

(c) been the subject of substantiated reports of unsatisfactory performance for other NSW Government agencies; or

(d) been determined by the Appeals Committee as not suitable for future work; or

(e) provided unsatisfactory performance under the Scheme; or

(f) experienced an adverse change in capacity or capability; or

(g) experienced an adverse change in business status; or


12

(h) been convicted of a breach of his or her obligations under NSW occupational health and safety legislation or environmental protection legislation; or

(i) otherwise failed to meet the standards required of the Scheme in terms of its project outcomes, client satisfaction and ethical business practices; or

(j) had his or her appointment on an Audit and Risk Committee revoked or terminated by the CEO (agencies)/ Chair of the Board (SOCs/GTEs) for one of the reasons in paragraph (a) to (g) above.

17.2 Any decision by the CEO (agencies)/ Chair of the Board (SOCs/GTEs) to

terminate the appointment of a member of an Audit and Risk Committee is to be with the concurrence of the Minister or, in the case of a State Owned Corporation, the concurrence of the Board and Shareholder Minister.

17.3 If CEO (agencies)/ Chair of the Board (SOCs/GTEs) terminates the

appointment of a member of an Audit and Risk Committee, the CEO/Board Chair will then advise:

(a) the Panel Member of the decision to terminate his or her appointment on the relevant Audit and Risk Committee; and

(b) the Secretary of the Treasury and the Directors-General of the Department of Premier and Cabinet and the Department of Commerce of the decision to terminate the member’s appointment on the Audit and Risk Committee.

17.4 Before membership of the Scheme is formally revoked under clause 17.1, the

Director General, Department of Commerce will advise the Panel Member of the matters prompting the proposed action and will give the Panel Member the opportunity to provide reasons as to why the revocation should not occur.

18 REQUEST FOR REVIEW OF THE DECISION TO TERMINATE MEMBERSHIP

OF THE SCHEME

18.1 Where a Panel Member considers that there are substantive grounds for the Departments to reconsider its decision to terminate membership of the Scheme under section 17, the Panel Member may request a review of the decision by writing, providing full details of the reasons for the request for review to:

The Secretary (Attention: Director, Financial Management and Reporting Branch) NSW Treasury Level 27, Governor Macquarie Tower 1 Farrer Place, SYDNEY NSW 2000

18.2 Any appeals will be considered by the Secretary of the Treasury and the

Directors-General of the Department of Premier and Cabinet and the Department of Commerce who will determine whether the Panel Member should be removed from the Scheme and be precluded from membership from any other NSW Government Audit and Risk committees.


13

18.3 The Secretary of the Treasury will inform the Panel Member of the outcome of the review and will advise the Directors-General of the Department of Premier and Cabinet and the Department of Commerce.

19 PUBLICITY

19.1 Panel Members must not advertise, promote or publicise in any form their admission to the Scheme without written consent of the Departments.

20 APPLICANT’S ACKNOWLEDGMENT

20.1 In applying for membership, the Applicant agrees that it accepts the Scheme Conditions.

21 DISCLAIMER 21.1 The Departments and the Assessment Committee reserve the absolute

discretion to:

(a) accept an Application with or without conditions;

(b) reject an Application;

(c) suspend a Panel Member’s admission to the Scheme; and

(d) revoke a Panel Member’s admission to the Scheme. 21.2 The Departments will not be held liable for any costs or damages incurred by

the Panel Member in the exercise of such discretion. 22 PREQUALIFICATION NO GUARANTEE OF WORK 22.1 The receipt of prequalification by an Applicant does not guarantee:

(a) continuity of the prequalification during the duration of the scheme; or (b) that engagements or work of any kind or quantity will be offered.

23 REVIEW AND DEVELOPMENT OF THE SCHEME 23.1 The Scheme will be monitored by the Departments to assess whether the

objectives and intent of the Scheme are being met. Modifications may be made at these Departments' discretion during the life of the Scheme (see also clause 7.3).


14

SCHEDULE 1 PREQUALIFICATION SCHEME: AUDIT AND RISK COMMITTEE INDEPENDENT CHAIRS

AND MEMBERS 2009 - 2012

APPLICATION FORM All application material to be prepared electronically (e.g. as a WORD document).

HAND WRITTEN APPLICATIONS WILL NOT BE ACCEPTED

Email is the preferred mode of delivery - your assistance is sought in submitting your application in electronic format by email as follows: • Complete the application form using MS WORD (or compatible software application). • Include requested copies of documents, such as Client Referee Reports, etc. These may

be scanned and electronically inserted or pasted into the WORD document in the Application Form as images.

•

• • •

Attach the completed application to the email as a single electronic file being either a MS WORD or Acrobat PDF file. If necessary, a file may be split into parts, provided that:

a logical sequence of components is sent in sequential order. each part is identified in the subject line of the email e.g. Part 1of 3, 2 of 3, etc.

Please send the completed application form to: [email protected] Applications may be submitted by post or hand delivered in hard copy form, provided that: •

•

•

Five (5) copies are supplied, printed on plain white paper without any additional artwork, watermarks, colour, shading or logos; Copies of all documentation requested in the application are attached to the printed application, and A electronic copy of the application is also provided.

Please send applications by post to:

General Manager, Accreditation SCHEME APPLICATIONS Policy Support Services Department of Commerce Level 11, McKell Building 2-24 Rawson Place SYDNEY NSW 2000

Only applications which fully satisfy all of the requirements set out below will be considered:

Item Mandatory Criteria and Requirements A Organisation Details B Policy Areas C Capability D Insurance E Experience – Corporate History F Applicant Referee Reports G Statement


15

APPLICATION DETAILS A. APPLICANT/ORGANISATION DETAILS The Applicant is to provide contact details and, where applicable, details of the organisation’s status, management and key personnel including professional qualifications, registrations and accreditations. CONTACT DETAILS

Name

Organisation Name

Position Title

Registered Business Address (if applicable)

Postal Address

Phone Mobile

Fax Email

ORGANISATION STATUS

Type of Organisation Sole Trader Company Partnership

Other Type (describe)

Date Established

Australian Company Number (ACN)

Australian Business Number (ABN)

B. POLICY AREAS The Applicant is to identify policy and/or government portfolio areas in which the Applicant claims to have substantial expertise. Policy areas are used by the Departments to determine the breadth of expertise of the applicant. Applicants are to indicate in the schedule below by way of a in the right hand cell of each relevant row the policy area(s) in which the applicant claims to have substantial expertise. DEMONSTRATED EXPERIENCE AT COMMONWEALTH, STATE OR LOCAL GOVERNMENT LEVEL IN ONE OR MORE OF THE FOLLOWING: Community Services Utilities/Telecommunications

Ageing and Disability Sport and Recreation

Housing Arts

Health Environment

Education Emergency Services

Justice Central Government – Policy, Legislation, Public Administration

Economic Services Public Employment/Workplace Relations

Primary Industry Taxation

Transport All of the above


16

PrequMembe

alification Scheme: Audit and Risk Committee Independent Chairs and rs 2009 - 2012

17

C. CAPABILITY The capability of Applicants for inclusion on the Panel will be assessed against the criteria listed below. For each criterion, each applicant must provide up to one (1) page of information as to how they meet it.

All applicants must complete section 1 Audit and Risk Committee member. If applying for prequalification as an Audit and Risk Committee chair, section 2. Audit and Risk Committee chair must also be completed.

1. Audit and Risk Committee member (to be completed by all applicants)

1. Extensive senior level experience in governance and management of complex organisations, an ability to read and understand financial statements and a capacity to understand the ethical requirements of government (including potential conflicts of interest).


management; human resources management; internal and external auditing; financial reporting; accounting; management control frameworks; financial internal controls; governance (including planning, reporting and oversight); or business operations.

3. A capacity to form independent judgements and willingness to constructively challenge/question management practices and information.

4. A professional, ethical approach to the exercise of their duties and the capacity to devote the necessary time and effort to the responsibilities of a member of an Audit and Risk Management Committee.

5. Possession of a relevant professional qualification or membership (e.g. Certified Internal Auditor, Certified Practicing Accountant, Certified Practicing Risk Manager, Chartered Accountant, Member of the Australian Institute of Company Directors (MAICD)) is desirable.

2. Audit and Risk Committee chair

1. Leadership qualities and the ability to promote effective working relationships in complex organisations.

2. An ability to communicate complex and sensitive assessments in a tactful manner to chief audit executives, senior management, board members and Ministers.





on Scheme: Audit and Risk Committee Independent Chairs and rs 2009 - 2012

18

D. EXPERIENCE - CORPORATE HISTORY List all relevant Committee Roles in progress in the previous 3 years for the Committee Roles sought for pre-qualification, including any Audit and Risk Committees within the NSW Public Sector. RELEVANT CHAIR AND COMMITTEE MEMBER ROLES IN THE LAST THREE (3) YEARS

Add further rows below to list additional engagements

Organisation Name of Committee Role Engagement

Fee (p.a.) Start Date End Date

PrequalificatiMembe


19

E. APPLICANT REFEREE REPORTS EVIDENCE OF CLIENT SATISFACTION BASED ON ENGAGEMENTS COMPLETED IN THE LAST THREE (3) YEARS

All applicants are required to provide evidence of client satisfaction based on relevant roles undertaken in the last three years, as listed in section D. Evidence must be provided in the form of the Applicant Referee Report provided below. Three Applicant Referee Reports are to be provided. Copies of signed Applicant Referee Reports must be attached to the Application form. Applicant Referee Reports will only be considered: • where the engagements were completed in the last three (3) years; • where the Applicant Referee Reports (showing key performance areas) have

been submitted; and • where reports are complete including the specific signatures requested. IMPORTANT: Applicants must provide Applicant Referee Reports and demonstrate recent history of consistent good performance in order to meet the mandatory requirements. The Departments may choose to contact a Client to verify or clarify any aspect of Applicant Referee Reports submitted by an Applicant in support of their Application in assessing eligibility for membership of the Scheme. Engaging agencies may also contact these or other referees relevant to a particular assignment. Where the Applicant was employed as a public servant in the last 24 months, relevant work related referees can be provided to satisfy this requirement.


20

CLIENT LETTERHEAD is to be Positioned or Aligned or Inserted or Attached HERE(The Client Company Name, Address, ABN and Logo is to be clearly visible)

APPLICANT REFEREE REPORT This report may be used to assist in assessing the suitability of an Applicant for the Prequalification Scheme – Audit and Risk Committee Independent Chairs and Members.

Assessment Committee members may contact the referee to verify or clarify aspects of this Report

Applicant Name Organisation Name Phone In what context do you know the applicant (Briefly describe)

Date Commenced Date Completed

Total Fee for service to Applicant

$ (including GST )

Please rate the Applicant against the following criteria

Role N

/A

Uns

atis

fact

ory

Mar

gina

l

Acc

epta

ble

Goo

d

Supe

rior

1. Extensive senior level experience in governance and management of complex organisations.

2. An ability to read and understand financial statements.

3. A capacity to understand the ethical requirements of government (including potential conflicts of interest).

4. Functional knowledge in areas such as:

a) enterprise risk management

b) performance management

c) human resources management

d) internal and external auditing

e) financial reporting

f) accounting

g) management control frameworks


21

h) financial internal controls

i) governance (including planning, reporting and oversight)

j) business operations


6. A professional, ethical approach to the exercise of their duties. 7. The capacity to devote the necessary time and effort to the

responsibilities of a member of an Audit and Risk Management Committee.


Committee Chair Role

N/A

Uns

atis

fact

ory

Mar

gina

l

Acc

epta

ble

Goo

d

Supe

rior




a) the principles of good organisational governance and capacity to understand public sector accountability including financial reporting;



Comments on Applicant’s Performance (may be expanded to extend over to another page)

Signed (by Client) e.g. Chair of Board Signature Name Date Position Title Tel Mob e-

mail

Delivery Instructions: To be forwarded by the Client to the Applicant. (The Applicant is to include all Applicant Referee Reports in their application to form a single and complete submission.)


22

F. STATEMENT

COMPLETE AND ACCURATE INFORMATION

This Statement is to be signed and dated to verify the completeness and authenticity of the information provided in the Application. The Statement must be signed by a director of a company, partner of a partnership or sole trader, as applicable to the Applicant’s business arrangements. Applications which are incomplete or found to be misleading or inaccurate may not be further considered. Item Mandatory Criteria and Requirements A Organisation Details B Policy Areas C Capability D Insurance E Experience – Corporate History F Applicant Referee Reports G Statement

As the Director/Partner/Sole Trader of the firm submitting this application, I confirm the completeness and authenticity of the information provided in this application.

Signature of Applicant (a scanned signature is acceptable)

Name of above Applicant as per Signature

Position Title

Date


23


AND MEMBERS - EXAMPLE LETTER OF ENGAGEMENT/ACCEPTANCE Name Address Dear Ms / Sir You have been selected from the Prequalification Scheme: Audit and Risk Committee Independent Chairs and Members to be an [independent member or independent chair (delete as applicable)] of the Department of [#] Audit and Risk Committee. The Committee meets [#] times a year including a meeting in [#] to review the annual financial accounts. A copy of the Audit & Risk Committee Charter and Department’s Code of Conduct applicable to your engagement are attached. The Department’s most recent Annual Report is available online at [#insert url]. The conditions under which you will be engaged are detailed in the Scheme Conditions dated [#] issued by the NSW Treasury, NSW Department of Premier and Cabinet and the NSW Department of Commerce. You will also be required to comply with any other legislation, regulations or guidelines applicable to internal audit and risk management in the NSW public sector, as they apply to Audit and Risk Committees. You will be remunerated at the current rate for a [#] sized agency recommended by the Statutory and Other Officers Remuneration Tribunal (SOORT) of [$# per day or # per annum (delete as applicable)]. For further information regarding remuneration, subsistence and travel please see section 6 of the Scheme Conditions. The engagement will be for [#] years starting [#]. Note that this engagement can be terminated by mutual agreement and in accordance with the Scheme Conditions. Should you have any questions or wish to discuss you engagement, please contact me on [###]. If you wish to take up this offer please sign the declaration at the end of this letter and return it to this Office within 5 business days. I look forward to receiving your acceptance and to working with you on the [#] Audit and Risk Committee. Yours sincerely I hereby accept the offer of engagement contained in this letter and agree to carry out the services in accordance with the Scheme Conditions. And confirm that I do not have any conflict of interest that would prohibit me from accepting this engagement. Print Name Signature / /


24

End of Document

May 2009 © NSW Department of Commerce Page 1

Request for list of Prequalified Audit & Risk Committee Independent Chairs & Members Guidance notes • This form is to be completed by the Agency officer with the appropriate delegated

authority.

Agency name:

List required: (please tick)

Audit Chair:

Member:

Anticipated date of engagement:

Duration of engagement:

Person requesting list:

Title:

Telephone number:

e-mail:

Date:

Submit by e-mail to: [email protected] OR by Fax: +61 02 9372 8844 Phone enquiries: 1800 679 289


1


AND MEMBERS 2009 - 2012

APPLICATION FORM All application material to be prepared electronically (e.g. as a WORD document).

HAND WRITTEN APPLICATIONS WILL NOT BE ACCEPTED

Email is the preferred mode of delivery - your assistance is sought in submitting your application in electronic format by email as follows: • Complete the application form using MS WORD (or compatible software application). • Include requested copies of documents, such as Client Referee Reports, etc. These may

be scanned and electronically inserted or pasted into the WORD document in the Application Form as images.

• Attach the completed application to the email as a single electronic file being either a MS WORD or Acrobat PDF file.

• If necessary, a file may be split into parts, provided that: • a logical sequence of components is sent in sequential order. • each part is identified in the subject line of the email e.g. Part 1of 3, 2 of 3, etc.

Please send the completed application form to: [email protected] Applications may be submitted by post or hand delivered in hard copy form, provided that: • Five (5) copies are supplied, printed on plain white paper without any additional artwork,

watermarks, colour, shading or logos; • Copies of all documentation requested in the application are attached to the printed

application, and • A electronic copy of the application is also provided. Please send applications by post to:

General Manager, Accreditation SCHEME APPLICATIONS Policy Support Services Department of Commerce Level 11, McKell Building 2-24 Rawson Place SYDNEY NSW 2000

Only applications which fully satisfy all of the requirements set out below will be considered:

Item Mandatory Criteria and Requirements A Organisation Details B Policy Areas C Capability D Experience – Corporate History E Applicant Referee Reports F Statement


2

APPLICATION DETAILS A. APPLICANT/ORGANISATION DETAILS The Applicant is to provide contact details and, where applicable, details of the organisation’s status, management and key personnel including professional qualifications, registrations and accreditations. CONTACT DETAILS

Name

Organisation Name

Position Title

Registered Business Address (if applicable)

Postal Address

Phone Mobile

Fax Email

ORGANISATION STATUS

Type of Organisation Sole Trader Company Partnership

Other Type (describe)

Date Established

Australian Company Number (ACN)

Australian Business Number (ABN)


3

B. POLICY AREAS The Applicant is to identify policy and/or government portfolio areas in which the Applicant claims to have substantial expertise. Policy areas are used by the Departments to determine the breadth of expertise of the applicant. Applicants are to indicate in the schedule below by way of a in the right hand cell of each relevant row the policy area(s) in which the applicant claims to have substantial expertise. DEMONSTRATED EXPERIENCE AT COMMONWEALTH, STATE OR LOCAL GOVERNMENT LEVEL IN ONE OR MORE OF THE FOLLOWING: Community Services Utilities/Telecommunications

Ageing and Disability Sport and Recreation

Housing Arts

Health Environment

Education Emergency Services

Justice Central Government – Policy, Legislation, Public Administration

Economic Services Public Employment/Workplace Relations

Primary Industry Taxation

Transport All of the above


4

C. CAPABILITY The capability of Applicants for inclusion on the Panel will be assessed against the criteria listed below. For each criterion, each applicant must provide up to one (1) page of information as to how they meet it.

All applicants must complete section 1 Audit and Risk Committee member. If applying for prequalification as an Audit and Risk Committee chair, section 2. Audit and Risk Committee chair must also be completed.

1. Audit and Risk Committee member (to be completed by all applicants)

1. Extensive senior level experience in governance and management of complex organisations, an ability to read and understand financial statements and a capacity to understand the ethical requirements of government (including potential conflicts of interest).


management; human resources management; internal and external auditing; financial reporting; accounting; management control frameworks; financial internal controls; governance (including planning, reporting and oversight); or business operations.


4. A professional, ethical approach to the exercise of their duties and the capacity to devote the necessary time and effort to the responsibilities of a member of an Audit and Risk Management Committee.

5. Possession of a relevant professional qualification or membership (e.g. Certified Internal Auditor, Certified Practicing Accountant, Certified Practicing Risk Manager, Chartered Accountant, Member of the Australian Institute of Company Directors (MAICD)) is desirable.

2. Audit and Risk Committee chair








5

D. EXPERIENCE - CORPORATE HISTORY List all relevant Committee Roles in progress in the previous 3 years for the Committee Roles sought for pre-qualification, including any Audit and Risk Committees within the NSW Public Sector. RELEVANT CHAIR AND COMMITTEE MEMBER ROLES IN THE LAST THREE (3) YEARS

Add further rows below to list additional engagements

Organisation Name of Committee Role Engagement

Fee (p.a.) Start Date End Date


6

E. APPLICANT REFEREE REPORTS EVIDENCE OF CLIENT SATISFACTION BASED ON ENGAGEMENTS COMPLETED IN THE LAST THREE (3) YEARS

All applicants are required to provide evidence of client satisfaction based on relevant roles undertaken in the last three years, as listed in section D. Evidence must be provided in the form of the Applicant Referee Report provided below. Three Applicant Referee Reports are to be provided. Copies of signed Applicant Referee Reports must be attached to the Application form. Applicant Referee Reports will only be considered: • where the engagements were completed in the last three (3) years; • where the Applicant Referee Reports (showing key performance areas) have

been submitted; and • where reports are complete including the specific signatures requested. IMPORTANT: Applicants must provide Applicant Referee Reports and demonstrate recent history of consistent good performance in order to meet the mandatory requirements. The Departments may choose to contact a Client to verify or clarify any aspect of Applicant Referee Reports submitted by an Applicant in support of their Application in assessing eligibility for membership of the Scheme. Engaging agencies may also contact these or other referees relevant to a particular assignment. Where the Applicant was employed as a public servant in the last 24 months, relevant work related referees can be provided to satisfy this requirement.


7

CLIENT LETTERHEAD is to be Positioned or Aligned or Inserted or Attached HERE(The Client Company Name, Address, ABN and Logo is to be clearly visible)

APPLICANT REFEREE REPORT This report may be used to assist in assessing the suitability of an Applicant for the Prequalification Scheme – Audit and Risk Committee Independent Chairs and Members.

Assessment Committee members may contact the referee to verify or clarify aspects of this Report

Applicant Name Organisation Name Phone In what context do you know the applicant (Briefly describe)

Date Commenced Date Completed

Total Fee for service to Applicant

$ (including GST )


Role N

/A

Uns

atis

fact

ory

Mar

gina

l

Acc

epta

ble

Goo

d

Supe

rior

1. Extensive senior level experience in governance and management of complex organisations.

2. An ability to read and understand financial statements.

3. A capacity to understand the ethical requirements of government (including potential conflicts of interest).

4. Functional knowledge in areas such as:

a) enterprise risk management

b) performance management

c) human resources management

d) internal and external auditing

e) financial reporting

f) accounting

g) management control frameworks


8

h) financial internal controls

i) governance (including planning, reporting and oversight)

j) business operations


6. A professional, ethical approach to the exercise of their duties. 7. The capacity to devote the necessary time and effort to the

responsibilities of a member of an Audit and Risk Management Committee.


Committee Chair Role

N/A

Uns

atis

fact

ory

Mar

gina

l

Acc

epta

ble

Goo

d

Supe

rior




a) the principles of good organisational governance and capacity to understand public sector accountability including financial reporting;



Comments on Applicant’s Performance (may be expanded to extend over to another page)

Signed (by Client) e.g. Chair of Board Signature Name Date Position Title Tel Mob e-

mail

Delivery Instructions: To be forwarded by the Client to the Applicant. (The Applicant is to include all Applicant Referee Reports in their application to form a single and complete submission.)


9

F. STATEMENT

COMPLETE AND ACCURATE INFORMATION

This Statement is to be signed and dated to verify the completeness and authenticity of the information provided in the Application. The Statement must be signed by a director of a company, partner of a partnership or sole trader, as applicable to the Applicant’s business arrangements. Applications which are incomplete or found to be misleading or inaccurate may not be further considered. Item Mandatory Criteria and Requirements A Organisation Details B Policy Areas C Capability D Experience – Corporate History E Applicant Referee Reports F Statement

As the Director/Partner/Sole Trader of the firm submitting this application, I confirm the completeness and authenticity of the information provided in this application.

Signature of Applicant (a scanned signature is acceptable)

Name of above Applicant as per Signature

Position Title

Date


10

End of Document

Audit Risk Committee Chair - NSW Government · Audit and Risk Committees at any one time (each...

Documents

Transcript of Audit Risk Committee Chair - NSW Government · Audit and Risk Committees at any one time (each...