Treasury’s aim is to provide for the appropriate level of internal oversight for all agencies while minimising the administration, financial costs, and resource implications of that assurance and independent advice.
TPP 16-02: Guidance on Shared Arrangements and Subcommittees for Audit and Risk Committees (the Guidance) has been prepared to assist all agencies to comply with the Core Requirements of the Internal Audit and Risk Management Policy. The Guidance provides a framework for agencies to consider shared arrangements including an overview of the prerequisites and the two types of shared arrangement (collaborative or Principal Department led) that can be formed. Further, the Guidance is intended to facilitate the establishment and operation of subcommittees where appropriate.
Audit and Risk Committees (ARCs) of NSW departments and statutory bodies are required to have a Charter that is consistent with the content of the “model charter”. There are specific model charters for shared arrangements. In adopting the model charters, it is important that each department or statutory body consider carefully its particular circumstances, as there may be additional agency specific requirements that must also be addressed.
In a Principal Department Led Shared Arrangement, the Principal Department retains a stand-alone ARC Charter with a separate Principal Department Led Shared Arrangement Model ARC Charter prepared to cover the ARC’s oversight of the additional participating entities.