Audit and Risk Management Committee
The Board has established an Audit, Risk & Compliance Committee which is responsible for advising the Board on internal controls and appropriate standards for the management of the Trust. The Committee oversees the financial reporting process, the system of internal control and risk management, the audit process and the Responsible Entity’s processes for monitoring compliance with laws and regulations. The Committee also assists the Board to discharge its responsibilities under the Compliance Plan adopted by the Responsible Entity for the Trust. The Committee works on behalf of the Board with the external auditor and reviews non-audit services provided by the external auditor to confirm that they are consistent with maintaining external audit independence.
The Audit, Risk & Compliance Committee provides advice to the Board and reports on the status of the business risks to the Trust through its implementation and supervision of the Responsible Entity’s risk management framework for the Trust which is aimed at ensuring risks are identified, assessed and properly managed.
The Committee is wholly comprised of independent Non-Executive Directors, namely Ms Dwyer (who is Chairman of the Committee), Mr Pettigrew and Mr McDonald.
The Committee met five times during the twelve month period to 30 June 2007 and all Committee members attended all meetings.
The Committee has adopted a Charter, a summary of which is available on the Company's website. The responsibilities of the Committee pursuant to its Charter include::
- reviewing the financial statements of the Trust for the half year and full year and considering whether they are complete, consistent with information known to Committee members and reflect appropriate accounting policies and principles;
- reviewing with management and the external auditors the results of the audit;
- reviewing the effectiveness of the Responsible Entity’s internal controls regarding all matters affecting the Trust’s financial performance, financial reporting and regulatory compliance;
- reviewing with management and the internal auditor the charter, plans and activities of the internal audit activity and reviewing the effectiveness of such activity;
- meeting separately from management with the external auditor at least once a year to discuss any matters that the Committee or auditor believe should be discussed privately;
- reviewing and confirming the independence of the external auditor by obtaining statements from the auditor on relationships between the auditor and the Trust, including in respect of non-audit services;
- considering the overall risk management framework for the Trust and reviewing its effectiveness in meeting sound corporate governance principles and identifying, managing and monitoring the key risks of the Trust;
- monitoring the extent to which the Responsible Entity complies with the Trust’s Compliance Plan, the Corporations Act and the Trust’s Constitution and reviewing the effectiveness of the system for monitoring compliance with laws and regulations affecting the Trust and the Responsible Entity; and
- providing an open avenue of communication between the external financial auditor, the Compliance Plan auditor and the Board.
The Committee meets at least four times a year and reports to the full Board following each meeting, including in respect of recommendations of the Committee that require Board approval or action.
To assist the Board and the Audit, Risk & Compliance Committee to discharging their respective responsibilities, the Managing Director and the Financial Controller are required to provide the Board and the Committee with a letter of representation in connection with the half year and full year financial statements of the Trust. Such letter of representation confirms to the Board that the Trust’s financial reports present a true and fair view, in all material respects, of the Trust’s financial condition and operational results and are in accordance with relevant accounting standards. The letter describes the process and evidence that the Managing Director and Financial Controller have adopted to satisfy themselves on these matters.