AGY-3554 | Audit Committee [Charles Sturt University]

Full description

The Charles Sturt University (CSU) Audit Committee was first convened on 27 June 1994. (1) The Committee was established as a Committee of the Board of Governors, the governing body of the University, and as such reported directly to that Board (later CSU Council). The main function of the Audit Committee was to ensure the proper conduct of the audit function within the University in accordance with statutory requirements and the Code of Ethics of the University. (2) The specific terms of reference as endorsed by the Board of Governors were:
- to review the audit plan of the external auditors;
- to review and approve the audit plan of the internal auditors;
- to evaluate the overall effectiveness of both the internal and external audit through regular meetings with each group;
- to determine that no management restrictions are being placed upon either the internal or external auditors;
- to evaluate the adequacy and effectiveness of the University’s administrative, operating, and accounting policies through active communication with operating management, internal audit and external auditors;
- to evaluate the adequacy of the University’s accounting control system by reviewing written reports from the internal and external auditors, and monitoring management’s responses and actions to correct any noted deficiencies;
- to review all financial reports to be made to the public prior to their release;
- to review any regulatory reports submitted to the University and monitor management’s response to them;
- to evaluate the University’s exposure to fraud;
- to take an active interest in ethical considerations regarding the University’s administrative and financial policies and practices;
- to monitor the standard of corporate conduct in areas such as arm’s length dealings and likely conflicts of interest;
- to require reports from management, the internal auditors and external auditors on any significant proposed regulatory, accounting or reporting issue, to assess the potential impact upon the University’s financial reporting process;
- to review and approve all significant accounting policy changes;
- to review the annual financial statements with the financial director and the external auditors, and recommend acceptance to the Board;
- to identify and direct any special projects or investigations deemed necessary; and
- to prepare a report to the Board summarising the work performed by the Committee to fully discharge its duties during the year. (3) Initially the membership of the Audit Committee comprised of the following:
- three members of the Board of Governors who are not staff of the University, appointed by the Board of Governors;
- the Vice-Chancellor (no voting rights);
- the Director of Internal Audit (to be the Committee Secretary, but no voting rights);
- a representative of the New South Wales Auditor General shall have a standing invitation to attend meetings. (4) However, by 2001, the membership of the Audit Committee had been increased to five members of the CSU Council (the Council having replaced the Board of Governors). (5) Endnotes:
(1) Minutes of the inaugural meeting of the CSU Audit Committee, Meeting 1/94, 27 June 1994, p.1.
(2) Agenda papers of the meeting of the CSU Board of Governors, Meeting 1/94, 11 March 1994, p.39-41.
(3) Ibid., p.39-41.
(4) Ibid., p.39-41.
(5) Charles Sturt University Administration Manual, Section GOV 32.1, p.1.