Compliance with the Asset Management Accountability Framework

Tabled: 23 May 2019

Appendix D. Audit committee responsibilities for reviewing compliance and the attestation

Figure D1
AMAF and standing directions requirements for audit committees on reviewing compliance and attestation

Reference to the standing directions (SD) or the AMAF

Audit committee responsibilities related to compliance with the AMAF

AMAF requirement 3.1.3 Application and Attestation

The Responsible Body's audit committee, or an alternative review mechanism when there is no audit committee, must be satisfied with the Responsible Body's attestation of compliance with requirements of the Standing Direction on asset management prior to finalising the attestation in the annual report. Agencies are also subject to any other requirements under the Directions to ensure compliance and support the attestation.

AMAF Implementation Guidance—Section 2.3 Guidance for Secretaries or Boards and Audit Committees

On an annual basis from 2017–18, attest to your organisation compliance with Standing Direction 4.2.3. Ensure your organisation is able to provide you with the nature and degree of evidence required to support attestation and compliance with Standing Direction 4.2.3.

Ensure attestation occurs for all material assets within the departmental portfolio either by the department or portfolio agencies. Ensure continual process improvements with a view to considering future self-assessments of asset management maturity (commencing in 2020–21).

SD 3.2.1.1(e), (f) Audit Committee responsibilities

(e) review and monitor compliance with the FMA [Financial Management Act 1994], these Directions and the Instructions, and advise the Responsible Body on the level of compliance attained;

(f) review and monitor remedial actions taken to address Compliance Deficiencies.

SD 5.1.2(a), (b)

Annual assessment of financial management compliance

(a) The Responsible Body must conduct an annual assessment of compliance with all applicable requirements in the FMA, these Directions and the Instructions.

(b) The Audit Committee must review the assessment made under Direction 5.1.2(a).

SD 5.1.4(a), (c)

Financial management compliance attestation

(a) The Responsible Body, or a member of the Responsible Body, must, in the Agencies' Annual Report, in relation to the relevant financial year, attest to compliance with applicable requirements in the FMA, these Directions and the Instructions, and disclose all Material Compliance Deficiencies.

(c) The Audit Committee must review the attestation under Direction 5.1.4 (a).

SD 5.1.6 Reporting Material Compliance Deficiencies

The Audit Committee has a role to review and monitor remedial actions taken to address Compliance Deficiencies.

SD Guidance 3.2.1 Audit Committee Review and monitor compliance

A key responsibility of an Agency's Audit committee is to review and monitor compliance with relevant risk and financial management laws and standards and the Directions. This will enable the Committee to provide assurance and make recommendations to the Responsible Body on the level of compliance attained, issues to be resolved and proposed mitigation plans.

 

Agencies must comply with a considerable volume and complexity of legislation and policy, including the Directions. Therefore, it would be expected the Audit Committee will focus on those aspects that pose the highest risk to the Agency, and on how the Agency manages its compliance responsibilities.

Similarly, in reviewing an Agency's compliance with the FMA, Directions and Instructions, it is expected that Audit Committees will take a practical, risk‑based approach to the evidence required to demonstrate compliance. This is particularly relevant to those Directions that require Agencies to achieve broad principles of good financial management.

Source: The 2016 standing directions, DTF's related 2016 instructions and guidance, and the AMAF, DTF, 2016.

Back to Top