Appendix 1: Report of the Audit and Risk Committee for the year ended 30 June 2020

Annual report 2019/20.

Members

Warren Allen FCA, FCIS, MinstD, (Committee Chair)
Susie Johnstone BComm, FCA, CFInstD, CPP
Geoff Dangerfield QSO, MSc, FCILT, CMInstD
Greg Schollum, BMS, FCA, Deputy Controller and Auditor-General

The Audit and Risk Committee is an independent committee established by, and reporting directly to, the Auditor-General. The purpose of the Committee is to oversee and provide advice to the Auditor-General on:

  • risk management and internal control (across the Office2);
  • audit functions (internal and external) for the Office;
  • financial and other external corporate reporting;
  • the governance framework and processes; and
  • compliance with legislation, policies, and procedures.

The Committee has no management functions. During the year, the Committee:

  • met on five occasions to fulfil its duties and responsibilities;
  • received briefings on the Office's key business activities, as a basis for ensuring that risks facing the Office are being appropriately addressed;
  • reviewed the Office's strategic risks with the Auditor-General;
  • discussed with the external auditors their audit plans and findings;
  • oversaw the internal audit programme;
  • monitored the implementation of recommendations made by both the external auditors and the internal auditors;
  • reviewed the annual report and annual financial statements of the Office before their approval by the Auditor-General, having particular regard to the accounting policies adopted, major areas of judgement, and compliance with legislation and relevant standards;
  • reviewed major projects: Document management system Upgrade, Quality Assurance approach and results, Inquiries operating model, and Sector Manager operating model;
  • considered The Auditor-General's strategic intentions to 2025;
  • reviewed the various portfolio (team) updates;
  • reviewed the Office's response to the Covid-19 pandemic;
  • considered the Auditor-General's strategic priorities to the end of 2020, the Draft annual plan 2020/21, and investment (budget bid) update.

The Committee has reported to the Auditor-General on the above, and on other relevant matters. There are no outstanding or unresolved concerns that the Committee has brought to the attention of the Auditor-General.

Warren Allen
Chair, Audit and Risk Committee

18 September 2020

2: "the Office" in this context comprises the Office of the Auditor-General, Audit New Zealand, and the shared Corporate Services Team.