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REVIEW OF INTERNAL AUDIT

CAPACITY

Philip Mussared
Deputy Secretary, Operations
NSW Treasury

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Overview

1. Implementation Steering Committee


§ Membership
§ Terms of Reference
2. Actions
3. Timeframes

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Implementation Steering Committee

Membership:
Philip Mussared NSW Treasury (chair)
Greg Byrne WorkCover
Peter Connelly Premier and Cabinet
Stephen Horne Internal Audit Bureau
John Holmes RailCorp
Noel Kean Energy Australia
Bill Middleton Education and Training
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Implementation Steering Committee

Membership (cont.):
Martina Nightingale Premier and Cabinet
Mark Pellowe NSW Treasury
Charlie Sherlock Commerce
Ross Tyler NSW Health
Heather Watson NSW Audit Office
Peter Whitehead Attorney General’s

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Implementation Steering Committtee

Terms of Reference:
“To drive the implementation of the recommendations in the
Report on the Review of Internal Audit Capacity in the
NSW Public Sector, including the update of the IA policy
and guidance and overseeing the sub-committees”.
The Implementation Steering Committee will report to the
Budget Sub-Committee of Cabinet periodically with a final
report in 12 months.

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Actions

There are three streams to the reform agenda:


Getting the governance right
Getting the practices right
Getting the resources right

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Actions

Getting the governance right


1. Strengthened NSW policy for internal audit and risk
management
q Better Practice Framework
q Update policy and guidance
q Prequalification Scheme
2. Internal audit compliance assurance
3. Pilot cluster with shared governance and delivery

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Actions

Getting the practices right


4. Update practice guidance for internal audit
5. Practitioner networks
Getting the resources right
6. Strategy for access and use of IA technology
7. Internal audit human resource development
8. Internal Audit Review report published
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Actions

1. Strengthen Policy for IA and Risk Management


1.1 Adopt Better Practice Framework for Internal Audit –
decision by the NSW Government (completed)
1.2 Update Policy and Guidance
Responsibility – NSW Treasury
Who – Mark Pellowe
How – new Treasurer’s Direction to mandate minimum IA
standards
When - June 2008
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Actions

1.3 Require independent IA Committee Chairs and some


independent members - (an element of the Better Practice
Framework for IA)
1.4 Establish a Pre-qualification Scheme
Responsibility – Department of Commerce
Who – Stuart Wood
How – facilitate and oversee a central panel of pre-
qualified Chairs and members for IA Committees
When - June 2008
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Actions

2. Ensure IA Compliance Assurance


Responsibility – NSW Audit Office
Who – Auditor-General
How – NSW Audit Office to monitor compliance with new
Treasurer’s Direction in its compliance audit program for
agencies
When - from 2009-10

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Actions

3. Pilot Agency Cluster


Responsibility – Department of Premier and Cabinet
Who – Peter Connelly
How – agree the members of a pilot cluster and develop
an implementation plan
When – June 2008

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Actions

4. Improved Better Practice Guidance


Responsibility – NSW Treasury
Who – Mark Pellowe
How – establish Reference Group, consult with agencies,
SOCs and professional associations, prepare and
promulgate updated guidance
When – June 2008

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Actions

5. IA and Risk Management Networks


Responsibility – Internal Audit Bureau
Who – Stephen Horn
How – establish organising committee
When – June 2008

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Actions

6. Strategy for access and use of IA Technology


Responsibility – Department of Commerce
Who – GCIO
How – develop a strategy for better use of technology
across the NSW Public Sector to support IA and risk
management
When – June 2008

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Actions

7. IA and Risk Management Human Resource


Development
Responsibility – Public Sector Workforce Office
Who – Martina Nightingale
How – establish a sub-committee and formulate and
implement an HRD strategy
When – October 2008

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Actions

8. Publish the Internal Audit Review Report


Completed
Further copies available from Performance Review Unit in
the Department of Premier and Cabinet

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Timeframes

Completed Actions
Adopt Better Practice for Internal Audit
Establish Implementation Steering Committee
Publish the Report on Internal Audit Capacity in the NSW
Public Sector
First Meeting of Implementation Steering Committee

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Timeframes

Timetable for finalising remaining actions:


April/May
Information Seminars for Agencies and Profession
Second Meeting of Implementation Steering Committee
First Meeting of Organising Committee for Practitioner
Network
First Meeting of HRD Strategy Sub-Committee

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Timeframes

June 2008
Promulgate revised TD 720
Promulgate revised TPPs on better practice
Establish Pre-Qualification Scheme
Implement Pilot Agency Cluster
Establish Practitioner Network
Develop Strategy to use technology to support IA and risk management
October 2008
Submit HRD Strategy to Chief Executives Committee
2009-10
NSW Audit Office to report on IA compliance
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