Audit Committee

The members of the Audit Committee, all being non-executive members of the Board, at 30 June 2019 were Linda Heron (Chair of the committee), Glenn Kirk and Ian Pearson. The committee has issued a standing invitation to the remaining military member to attend committee meetings.

The number of meetings of the Audit Committee held during the reporting period and the number of meetings attended by each member:

The Audit Committee is a standing committee. Two of the members are appointed to the committee for the term of their Ministerial Board appointment. The third member is appointed from our military representatives. The Chair of our Board does not sit on this committee.

The committee operates under the charter approved by the Board, with reports of business given and minutes of meetings provided to the subsequent meeting of the Board. The charter was reviewed and re-issued during the financial year.

The committee assists the Board in determining and ensuring:

• compliance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the PGPA Rule and other relevant Acts
• accounting records are appropriately maintained
• adequate internal controls to safeguard assets
• financial statements and management reports give a true and fair view
• a standard of corporate conduct and actively considering any ethical issues regarding policies and procedures.

In fulfilling its responsibilities the committee receives regular reports from internal and external auditors and management and maintains open lines of communication between committee members and internal and external auditors.

The external auditor is the Auditor General as prescribed by the Public Governance, Performance and Accountability Act 2013.

People and Culture Committee

The members of the People and Culture Committee, all being non‑executive members of the Board, at 30 June 2019 were Glenn Kirk (Chair of the committee), Linda Heron and Leonie Taylor. The Committee has issued a standing invitation to the military members to attend committee meetings.

The number of meetings of the People and Culture Committee held during the reporting period and the number of meetings attended by each member:

The committee operates under a charter approved by the Board, with reports of business given and minutes of meetings provided to each subsequent meeting of the Board. The charter was reviewed and re-issued during the financial year.

Under direction from the committee, AAFCANS conducts a baseline survey of employee satisfaction biennially, with actions resulting from that survey being allocated to our people and culture department for implementation.

The main responsibility of the committee is to assist the Board in fulfilling its responsibilities for maintaining sound managerial control over all people, industrial and superannuation activities within the organisation, reviewing all significant people and culture practices and reporting of the organisation. The committee provides feedback on the salary packages of the senior executives.

The committee, after consultation with the Chair, also reviews and makes recommendations on the performance and remuneration of the Managing Director.

Governance and Risk Committee

The members of the Governance and Risk Committee, all being directors, at
30 June 2019 were Leonie Taylor (Chair of the committee), Glenn Kirk, Linda Heron and Stewart McGrow. The committee has issued a standing invitation to the military directors to attend committee meetings.

The number of meetings of the Governance and Risk Committee held during the reporting period and the number of meetings attended by each member:

The committee operates under a charter approved by the Board, with reports of business given and minutes of meetings provided to each subsequent meeting of the Board. The committee reviewed and re-issued the Board charter and the Governance and Risk Committee charter during financial year.

The main responsibilities of the committee are to assist the Board in maintaining sound corporate governance and managing risk over all activities within the organisation. The committee specifically uses the ASX Corporate Governance Principles and Recommendations as the foundation of its governance program.

The charter and the employee code of conduct require all directors and employees to act with the utmost integrity and objectivity in their dealings with each other, competitors, customers, suppliers, the organisation and the community. Expectations on issues such as avoiding conflicts of interest, compliance with all laws, compliance with all policies and procedures, stewardship of assets and confidentiality of information are detailed therein.

Risk Management

As a standing agenda item at each Governance and Risk Committee meeting, the members review operational, financial, stakeholder, legal, cultural and other strategic risk factors as applicable. The risk register is amended as appropriate. AAFCANS’ full risk management framework was reviewed for completeness during the year.

The Board discusses new strategic and operational risk factors at each meeting and reviews AAFCANS’ top risks.

Food safety and work health and safety (WHS) are integral parts of the AAFCANS service. Oversight of these functions are managed by the People and Culture Committee. Our internal auditor, an internal appointment, conducts random audits for compliance under these two programs. In addition, AAFCANS has contracted an externally entity to audit a small number of outlets, ensuring the internal audit program is effective and meets audit and safety standards. Outlets are also audited randomly for WHS and food safety by Army and Air Force accredited officials.

The Board insures for a wide range of commercial risks including general liability, business interruption, directors’ and officers’ liability, travel and property loss, destruction or damage.