Treasury

Type:
NSW Treasury Policy and Guidelines Paper
Identifier:
TPP15-03
Status:
Archived

TPP15-03 - Internal Audit and Risk Management Policy for the NSW Public Sector

Description

The Internal Audit and Risk Management Policy for the NSW Public Sector (the Policy) is issued as a direction to those ‘department heads’ and ‘statutory bodies’ listed in Schedule 2 and Schedule 3 of the Public Finance and Audit Act 1983. The Policy assists agencies to implement their legislative obligations under section 11 of the Public Finance and Audit Act 1983, namely that they establish and maintain an effective internal audit function. In addition, the Policy seeks to strengthen internal audit, risk management and governance practices across the NSW public sector by ensuring an ongoing minimum level of compliance to provide for the efficient and effective administration of the State’s resources.

To support this purpose, the Policy outlines three core principles. The core principles describe the outcomes sought through the effective implementation of Risk Management, an Internal Audit Function and Audit and Risk Committees in departments and statutory bodies. The principles are supported by Core Requirements that provide agencies with instructions for implementing the Policy.

The Policy requires each agency head to produce an Attestation Statement for the prior financial year indicating whether it was ‘compliant’, ‘non-compliant’ or ‘in transition’ during the reporting period against each of the eight Core Requirements. A copy of the Attestation Statement must be published in the agency’s Annual Report with a copy provided to NSW Treasury on or before 31 October each year.

Agencies will self-assess to determine whether they have been ‘compliant’, ‘non-compliant’ or ‘in transition’ in relation to each of the Core Requirements for the reporting period.

Where the agency is non-compliant with a Core Requirement(s) of the Policy, the agency head must mark ‘non-compliant’ on their Attestation Statement next to relevant Core Requirements and explain why the agency is non-compliant. The agency head must also apply to the agency’s Portfolio Minister for an exception from the Core Requirement(s). A copy of the Ministerial Determination must be attached to the copy of the Attestation Statement sent to NSW Treasury.

An agency may mark ‘in transition’ on their Attestation Statement where the agency is in the process of transitioning its arrangements to meet new or changed requirements in this Policy for which transitional arrangements are permitted. Details of permitted transitional arrangements are outlined on page 14 of this Policy. Transitional arrangements for new agencies (listed in the Schedules of the Public Finance and Audit Act 1983 during the reporting period are detailed in the Policy (at page 14).

Templates and model charters are provided as Annexures to this Policy. With the exception of the Ministerial Determination Template, other templates and charters must be used and adapted to the needs and circumstances of the agency. The Ministerial Determination Template has been provided as a guide only.

This Policy will be effective from 1 July 2015.

 

Overview

Who needs to know and/or comply with this?

Departments
Executive agencies related to Departments
Advisory Entities (including Boards and Committees)
Separate agencies
Statutory Authorities/Bodies

Compliance

Mandatory

Contacts

Contact
Phone
Publishing Entity
The Treasury
Issuing Entity
The Treasury