The Audit and Risk Management Committee (ARMC) supports Treasury’s accountable officer – the Under Treasurer – to meet the responsibilities under the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009 and other prescribed requirements.
The role of the committee is to provide independent assurance and assistance to the Under Treasurer on Treasury’s risk and control frameworks and external accountability responsibilities as prescribed in the relevant legislation and standards.
The committee also provides oversight for select Treasury related entities that sit within Treasury’s broader portfolio (but prepare independent financial statements) which in 2020–21 included the Motor Accident Insurance Commission (MAIC) and Nominal Defendant.
Composition and membership
Chair:
Members:
- Assistant Under Treasurer, Policy and Performance
- Insurance Commissioner
- Commissioner, State Revenue
- Independent member and finance expert
The Under Treasurer, Deputy Under Treasurer, Policy Performance and Corporate, Head of Corporate, Chief Finance Officer, Queensland Audit Office (QAO) and Internal Audit (including Head of Internal Audit) have standing invitations as observers to attend all ARMC meetings. Treasury officers are invited to attend meetings as required.
Key achievements for 2020–21
In 2020–21, the committee met 6 times and fulfilled its responsibilities in accordance with its charter and an approved work plan. Key achievements included:
- endorsing the 2019–20 Financial Statements for Queensland Treasury, MAIC and Nominal Defendant
- endorsing the 3-year strategic Internal Audit Plan and monitoring 2020–21 internal audit activity
- reviewing the effectiveness of the department’s risk management framework and overseeing the management of significant business risks
- monitoring progress of the implementation status of internal audit recommendations
- considering issues raised by QAO including recommendations from performance audits and Treasury related reports to Parliament.
Risk management
In accordance with the Financial Accountability Act 2009, the Under Treasurer has established appropriate systems of internal control and risk management. This has been achieved through the maintenance of a risk management framework and oversight by the ARMC.
Treasury’s risk management framework aligns with the International Standard ISO 31000:2018 on risk management principles and guidelines and includes appropriate governance arrangements and risk reporting and analysis.
Additionally, Treasury operates under a Tax Risk Management Plan that is designed to ensure Treasury always conducts itself in a lawful manner with respect of all of its tax obligations and complies with all of its statutory obligations in a timely and transparent manner. The plan guides management on how to appropriately analyse, mitigate and report tax risks. Treasury’s Tax Risk Management Plan is updated annually and endorsed by ARMC.
Internal audit
Internal audit is an integral part of the corporate governance framework by which Treasury maintains effective systems of accountability and control at all levels. Internal audit provides assurance to the Under Treasurer that the entity’s financial and operational controls are operating in an efficient, effective, economical and ethical manner, and assists management in improving Treasury’s business performance.
