Introduction The audit committee is an invaluable source of independent advice for the accountable authority of a Commonwealth entity. This model audit committee charter (model charter) is a tool that is aimed at assisting accountable authorities and officials supporting accountable authorities, in developing a written charter that determines the functions of the audit committee. The model charter lists legislative requirements and highlights additional matters an accountable authority may wish to consider when developing the charter. This model is provided as a guide only. Accountable authorities may choose to develop their own approach or use only part of this model, as long as it meets the requirements of the PGPA legislation. The model charter complements the RMG 202: A guide for non-corporate Commonwealth entities on the role of audit committees, and should be read in consultation with that guide. Grey boxes in this model charter provide advice to accountable authorities. Legislative functions of audit committees The Public Governance, Performance and Accountability Act (PGPA Act) requires that accountable authorities of Commonwealth entities ensure that their entity has an audit committee (subsection 45(1)) and that committee is constituted and performs functions in accordance with any requirements prescribed by the associated rules (subsection 45(2)). the Public Governance, Performance and Accountability Rule (PGPA Rule), the accountable authority of a Commonwealth entity must determine the functions of the entity’s audit committee by written charter (the charter) (subsection 17(1)). These functions must include reviewing the appropriateness of the accountable authority’s: financial reporting, performance reporting, system of risk oversight and management, and the system of internal control, for the entity (subsection 17(2)). The charter should contain sufficient detail to ensure that the audit committee and other stakeholders are clear about the committee’s functions and responsibilities. It should also describe how the committee conducts reviews, including expectations for the advice to the accountable authority, and how to record and retain the committee’s advice. The audit committee charter should be updated as needed to reflect changes to the entity’s operating context, new circumstances and the accountable authority’s changing needs. Good practice would generally require annual review of the charter to align it with changing circumstances.
Introduction The audit committee is an invaluable source of independent advice for the accountable authority of a Commonwealth entity. This model audit committee charter (model charter) is a tool that is aimed at assisting accountable authorities and officials supporting accountable authorities, in developing a written charter that determines the functions of the audit committee. The model charter lists legislative requirements and highlights additional matters an accountable authority may wish to consider when developing the charter. This model is provided as a guide only. Accountable authorities may choose to develop their own approach or use only part of this model, as long as it meets the requirements of the PGPA legislation. The model charter complements the RMG 202: A guide for non-corporate Commonwealth entities on the role of audit committees, and should be read in consultation with that guide. Grey boxes in this model charter provide advice to accountable authorities. Legislative functions of audit committees The Public Governance, Performance and Accountability Act (PGPA Act) requires that accountable authorities of Commonwealth entities ensure that their entity has an audit committee (subsection 45(1)) and that committee is constituted and performs functions in accordance with any requirements prescribed by the associated rules (subsection 45(2)). the Public Governance, Performance and Accountability Rule (PGPA Rule), the accountable authority of a Commonwealth entity must determine the functions of the entity’s audit committee by written charter (the charter) (subsection 17(1)). These functions must include reviewing the appropriateness of the accountable authority’s: financial reporting, performance reporting, system of risk oversight and management, and the system of internal control, for the entity (subsection 17(2)). The charter should contain sufficient detail to ensure that the audit committee and other stakeholders are clear about the committee’s functions and responsibilities. It should also describe how the committee conducts reviews, including expectations for the advice to the accountable authority, and how to record and retain the committee’s advice. The audit committee charter should be updated as needed to reflect changes to the entity’s operating context, new circumstances and the accountable authority’s changing needs. Good practice would generally require annual review of the charter to align it with changing circumstances.
Model%20charter%20for%20audit%20committees_0.docx