Governance Report for year ended 30 June 2012
7. Audit, Finance & Risk Management Committee
7.1 Functions
Audit
Liaise with the internal auditor and review internal audit scope, planning and resourcing.
Assist the external auditor to identify risks and issues relevant to the external audit planning process.
The Chairperson of the Committee is to receive draft copies of all internal and external audit reports
when these are circulated to management for comment.
The Committee will receive the final reports of the internal and external auditors and review their
findings.
Monitor the progress made by management in implementing recommendations arising from audit.
Financial planning and reporting
Review and advise the Board on its approval of the DHB’s financial statements and disclosures.
Review draft Annual Plans and other accountability documents for their financial impact.
Review and advise the Board regarding finance-related policies and procedures requiring Board
approval, including delegation policies.
Review management accounting and internal financial reporting practices and issues and alert the
Board to any areas which appear ineffective.
Review capital expenditure and asset management planning and their relationship with service
planning.
Monitor the financial performance and position of the DHB against budget and forecast.
Risk management oversight
Ensure that the DHB complies with its obligations under key legislation.
Keep other legislative compliance arrangements under review (such as employment legislation).
Monitor risk assessment and risk management mechanisms, including internal control.
Receive and investigate disclosures under the DHB’s ‘whistle-blowing’ policy where it is not
appropriate for these to be received and investigated by the chief executive.
Monitor and review policies and procedures to minimise and manage conflicts of interest among DHB
Board members, management and staff.
Monitor and review policies and procedures to minimise and manage risks in the contracting of health
services.
Other monitoring responsibilities as determined by the Board, for example in relation to major
contracts or construction projects.
29
29