The responsibilities of the Audit and Risk Management Committee include the following:

Financial reporting:

• review the financial statements and provide advice to the Board (including whether appropriate action has been taken in response to audit recommendations and adjustments), and recommend their signing by the Chair of the Board.
• assess whether appropriate management action has been taken in response to any issues raised by the Australian National Audit Office (ANAO), including financial statement adjustments or revised disclosures
• review the processes in place designed to ensure that financial information included in Hearing Australia's Annual Report is consistent with the signed financial statements
• monitor the standard of financial information provided to the Board
• discuss with the ANAO the auditor’s judgments about the adequacy of Hearing Australia’s accounting policies and the quality of processes for the preparation of the financial statements
• review whether Hearing Australia has appropriate mechanisms in place to review and implement, where appropriate, relevant Parliamentary Committee reports and recommendations.

Performance reporting

• review how Hearing Australia measures and reports on its performance
• ​satisfy itself and provide assurance to the Board that Hearing Australia has a performance management framework that is linked to organisational objectives and outcomes, to ensure that Hearing Australia can measure and assess its performance in achieving its purposes as required under section 38 of the PGPA Act
• advise the Board on the preparation and review of Hearing Australia’s annual performance statement for inclusion in the Annual Report
• provide other advice at the request of the Board.

System of risk oversight and management

• review whether Hearing Australia’s management has in place a current and comprehensive risk management framework and associated procedures for effective identification and management of Hearing Australia’s financial and business risks, including fraud, and to approve Hearing Australia’s Risk Management Framework
• ​determine whether a sound and effective approach has been followed by Hearing Australia in managing its major risks, including those associated with individual projects, program implementation and activities
• satisfy itself that Hearing Australia’s management has assessed the impact of Hearing Australia’s enterprise risk management framework on Hearing Australia’s control environment
• monitor the adequacy of insurance cover for Hearing Australia
• monitor reports on fraud from Hearing Australia’s management that outline any significant or systemic allegations of fraud, the status of any ongoing investigations and any changes to identified fraud risk in Hearing Australia
• at least annually, commission and approve an entity-wide assurance map that identifies Hearing Australia’s key assurance arrangements.

System of internal control

• assess whether management has in place comprehensive and relevant policies and procedures designed to maintain an effective internal control framework, including controls over external parties such as contractors and advisors and information technology security and arrangements
• review whether management has in place appropriate policies and procedures, and that these are periodically reviewed and updated
• determine whether the appropriate processes are in place to assess, at least once a year, whether policies and procedures are complied with
• assess whether appropriate policies and supporting procedures are in place for the management and exercise of delegations
• assess whether management has taken steps to embed a culture that promotes the proper use of Commonwealth resources and which is committed to ethical and lawful behaviour
• determine whether a sound and effective approach has been followed in establishing Hearing Australia’s business continuity planning arrangements, including whether business continuity and disaster recovery plans are periodically updated and tested
• determine whether management has appropriately considered legal and compliance risks as part of Hearing Australia’s enterprise risk management plan
• ​assess the effectiveness of the system for monitoring Hearing Australia’s compliance with relevant laws, regulations and associated government policies

Attendance of Directors and Members at the Audit and Risk Management Committee (ARMC) meetings

The Chair of the Hearing Australia Board, the Managing Director, the Chief Financial Officer, the Chief Operating Officer and other representatives from Hearing Australia management, who are not members of the Committee, may attend all or part of the ARMC meeting as observers, by invitation of the Committee Chair.

Representatives from ANAO and their contracted service provider, Crowe Horwath, also attend each ARMC meeting by invitation of the Committee Chair.

Ernst & Young was reappointed on 1 July 2017 for a three year period to manage the internal audit function. Their representatives attend each ARMC meeting by invitation of the Committee Chair.

Regular reports are received from Management, Internal and External Auditors and recommendations for improved internal controls, processes and efficiencies are implemented on a regular basis.

The following table lists the number of formal meetings attended by each Committee member during financial year 2018-19.

* Mr Keogh was appointed as a Special Purpose Director for a six month term effective 1 September 2018 and was reappointed 2 April 2019 until such time as the special purpose specified in the instrument of appointment is complete.
** Ms Eliza Penny was reappointed as a Special Purpose Committee Member for a 24 month term effective from 27 March 2018.