Audit and Risk Management Committee

Terms of Reference

The Audit and Risk Management Committee's primary role is to monitor and report to Senate on:

Effective management of financial and non-financial risks.
Reliable management and financial reporting.
Compliance with laws and regulations.
Maintenance of an effective and efficient internal audit capability.
Maintenance of an effective and efficient risk management capability.
The financial and non-financial risks of subsidiaries and controlled entities such as Foundations and CRC’s and commercial activities.

Effective management of financial and non-financial risks

To be aware of the current areas of greatest financial and non-financial risk and monitor whether management is effectively managing those risks.
To satisfy itself that effective systems of accounting, internal control and risk monitoring, are established and maintained to manage financial and non-financial risks.
To satisfy itself as regards the integrity and prudence of management control systems, including the review of policies and/or practices.
To ensure that the Senate is aware of any matters that might have a significant impact on the financial condition, reputation or affairs of the University.

Reliable management and financial reporting

To review and assess the adequacy of management reporting to Senate in terms of the quantity, quality and timing of information on the entity’s risks, operations and financial condition.
To review the University’s accounting policies and practices in the light of Corporations Law, Australian Accounting Standards, DEST requirements, and Auditor General’s best practice recommendations.
To review the University’s annual accounts in terms of compliance with relevant accounting standards and best practice, including monitoring the representations made by university staff with respect to the statements.

Compliance with laws and regulations

To monitor developments and changes in the law relating to the responsibilities and liabilities of Fellows of Senate and to monitor and review the extent to which the Senate is meeting its obligations.
To monitor developments and changes in the various rules, regulations and laws which relate generally to the University’s operations and to monitor and review the extent to which the University is complying with such laws.

Maintenance of an effective audit capability

To review the efficiency and effectiveness of both the internal and external auditors in relation to their respective responsibilities.
To ensure there have been no unjustified restrictions or limitations placed on the auditors.
To ensure that the scope of the audit (external and internal) is appropriate, and emphasis is placed on areas where the Audit and Risk Management Committee believe additional attention is necessary.
To review and assess the findings of the internal and external auditors and the action taken and timetable proposed by management in response to the findings.

Maintenance of effective risk management capability

To ensure that effective risk management strategies and policies are in place.
To review the adequacy and effectiveness of the risk management framework and satisfy itself that the risk management framework is operating and meeting its objectives.
To exercise appropriate supervisory responsibility with respect to ensuring the reporting of significant risk exposures and non-compliance incidents.
To review the risk management guidelines, policies and procedures.
To review the University’s Governance performance and practice.
To review and monitor risk aspects arising from external review of the University’s performance such as AUQA
To review and monitor risk aspects pertaining to research including research acquittal reporting confirming appropriate expenditure of research funds.

Other responsibilities

To report any matter identified during the course of carrying out its duties that the Audit and Risk Management Committee considers should be brought to the attention of Senate.
To make recommendations to Senate on issues of risk management and financial management improvement, internal control and operational risk mitigation.
To perform or undertake on behalf of Senate such other tasks or actions as Senate may from time to time authorise.

The Audit and Risk Management Committee is authorised by Senate to investigate any activity within its terms of reference. It is authorised to seek any information it requires from any employee and all employees are directed to co-operate with any requests made by the Committee. The Committee is expected to meet at least once each year with the external auditor in the absence of all staff of the University.

The Committee is authorised by Senate to obtain outside legal or other independent professional advice and to secure the attendance of external advisers with relevant experience and expertise if it considers this necessary, but only after consultation with the Chancellor.

Constitution

The Chair of the Audit and Risk Management Committee is elected by Fellows of Senate (and should not be a member of the University of Sydney staff or student) for two years. It is recommended that nominators consult with the Chancellor and Vice-Chancellor before submitting a nomination.

Two Fellows of Senate appointed by Senate after consultation by the Chair of the Audit and Risk Management Committee (none of whom should be members of the University of Sydney staff or student) for two years (or for so long as in office if shorter).

Two external members, with appropriate professional expertise and experience, appointed by Senate on the nomination of the Chair of the Audit and Risk Management Committee with appropriate consultation for up to two years.

Terms of office

The terms of office are set out in the Constitution above, and no individual is to serve continuously as a member of the Committee for more than two terms.

Quorum

At any meeting of the Committee, three members shall form a quorum.

Election

In accordance with current provisions governing election to Senate Committees which include provision for self-nomination.

Attendees

The Chancellor
The Vice-Chancellor and Principal
Chief Operating Officer and Deputy Vice-Chancellor (Committee Secretary)
Chief Financial Officer (Chief Accountant interim)
Director, Audit, Risk Management and Assurance
General Counsel
Chair, Academic Board
Registrar
The Chair of the Committee will invite the attendance of the Auditor-General or his representative(s), and others as appropriate.
Group Secretary, Office of General Counsel (Officer to the Committee)

Reporting to Senate

In addition to a report to Senate (which is a Senate agenda item), a copy of the full minutes of meetings and all supporting papers are made available to Fellows in the Fellows’ Room.