The Principal Registrar authorises the ARC, in accordance with its role and responsibilities, to:

• obtain any information it requires from any employee or external party (subject to any legal obligation to protect information)
• discuss any matters with the Australian National Audit Office (ANAO), external auditor, or other external parties (subject to confidentiality considerations)
• request the attendance of any employee or other person at a committee meeting
• obtain legal or other professional advice, as considered necessary to fulfill its role at the ART’s expense, up to a limit of $5,000 or as otherwise authorised by the Principal Registrar.

The ARC may establish one or more sub-committee/s to assist the full ARC in meeting its responsibilities, in consultation with the Principal Registrar.

Membership

The ARC shall comprise a total of three members. This includes an Independent Chair and two independent members appointed by the Principal Registrar. All ARC members are to be external to the ART, with a majority of members being persons who are not officials of a Commonwealth entity.

The Principal Registrar can appoint internal members as Special Advisors to the committee as required.   

The ARC is authorised to appoint a Deputy Chair who will act as chair in the absence of the Chair.

Observers

Management representatives may attend meetings as advisers or observers, as determined by the ARC. A representative(s) of the ANAO will be invited to attend meetings of the ARC, as an observer.

ARC members and any Special Advisors will be appointed for an initial period determined by the Principal Registrar. Members may be re-appointed after a formal review of their performance, for further periods as specified by the Principal Registrar.

The ARC, taken collectively, will have a broad range of skills and experience appropriate to carry out its responsibilities in an efficient, effective and ethical manner. Collectively, the ARC will have the following knowledge or expertise:

• the operations and framework of the ART
• risk identification, evaluation, and management
• project and program management
• information management and security
• the operations of government and the public sector including information technology systems and controls
• the roles of internal and external audit
• the application of accounting, auditing and assurance standards
• relevant legislative and other policy requirements of the entity
• public sector reporting requirements, including financial and performance reporting; and
• internal control, compliance activities and fraud control.
   

The ARC through the Chair will provide a letter of advice to the Principal Registrar:

• whether the annual financial statements, in the committee’s view, comply with the PGPA Act, the PGPA Rules, the Accounting Standards and supporting guidance 
• whether additional entity information (other than financial statements) required by Finance for the purpose of preparing the Australian Government consolidated financial statements (including the supplementary reporting package) comply with the PGPA Act, the PGPA Rules, the Accounting Standards and supporting guidance
• in respect of the appropriateness of the entity’s financial reporting, with reference to any specific areas of concern or suggestions for improvement.
• Review the annual financial statements and provide advice and recommendations to the Principal Registrar, including recommending their signing by the Principal Registrar. In particular, the ARC will review:

1. the Tribunal's compliance with the PGPA Act, the PGPA Rules, the accounting standards and supporting guidance
2. information (other than annual financial statements) requested by Finance in preparing the Australian Government’s consolidated financial statements, including the supplementary reporting package
3. processes and systems for preparing financial reporting information, including financial record keeping
4. the auditor’s judgments about the adequacy and appropriateness of the Tribunal's accounting policies and the quality of the Tribunal's processes for the preparation of the Tribunal's financial statements, through discussions with the ANAO
5. whether appropriate management action has been taken in response to any issues raised by the ANAO, including financial statement adjustments or revised disclosures.

• Review the processes in place designed to ensure that financial information included in the Tribunal's annual report is consistent with the signed financial statements.
• Assess whether external reporting is consistent with information and knowledge held by ARC members and is adequate for the needs of the Tribunal.
• Review and make recommendations to the Principal Registrar for approval of changes to accounting policies and treatments having an impact on external reporting.

The ARC through the Chair will provide a letter of advice to the Principal Registrar whether, in their view, the entity’s annual performance statements and performance reporting as a whole is appropriate, with reference to any specific areas of concern or suggestions for improvement.

• Review and provide advice on the appropriateness of the Tribunal's systems and procedures for assessing, monitoring and reporting the achievement of the Tribunal's performance. In particular, the committee will satisfy itself that:

1. The Tribunal's Portfolio Budget Statements and corporate plan include details of how the Tribunal's performance will be measured and assessed.
2. The Tribunal's approach to measuring its performance throughout the financial year against the performance measures included in its Portfolio Budget Statements and corporate plan is sound and has taken into account the Commonwealth performance framework. This may include reviewing, over time, particular elements of the performance measures.
3. The Tribunal has sound processes in place for the preparation of its annual Performance Statement and the inclusion of the Statement in its annual report.
4. The Tribunal's proposed Performance Statement is not inconsistent with the Tribunal's financial information, including its financial statements that it proposes to include in its annual report.

The ARC through the Chair will provide a letter of advice to the Principal Registrar whether in their view, the entity’s system of risk oversight and management as a whole is appropriate (with reference to the Commonwealth Risk Management Policy for NCEs) and any specific areas of concern or suggestions for improvement.

• Review whether management has in place a current and sound enterprise risk management policy framework and associated internal controls for effective identification and management of the Tribunal's business and financial risks. This would entail gaining a sufficient understanding of the Tribunal's risk appetite and the entity’s operating environment, and reviewing the mandatory requirements of the PGPA Act, the PGPA Rule, the Commonwealth Risk Management Policy.
• Review the approach to managing the Tribunal's key risks, including those associated with individual projects and program implementation and activities.
• Review the process of developing and implementing the Tribunal's fraud control arrangements and whether the ART has appropriate processes and systems in place to detect, capture and effectively respond to fraud risks. 
• Review reports on fraud from management that outline any significant or systematic allegations of fraud, the status of any ongoing investigations and any changes to identify fraud risk in the Tribunal.

The ARC through the Chair will provide a letter of advice to the Principal Registrar whether the entity’s system of internal control is appropriate for the entity, with reference to any specific areas of concern or suggestions for improvement.

Review and provide advice on the appropriateness of the Tribunal's:

Internal control framework

Review management’s approach to implementing and reviewing an effective internal control framework; this framework should include controls in relation to functions performed by external parties such as contractors and advisers.

Review whether management has in place relevant policies and procedures, including Accountable Authority Instructions or their equivalent and delegations and authorisations, a business continuity management plan and that these are periodically reviewed and updated.

Legislative and policy compliance

Review the effectiveness of systems for monitoring the Tribunal's compliance with laws, regulations and government policies with which the ART must comply.

Determining whether management has adequately considered legal and compliance risks as part of the entity’s enterprise risk management framework, fraud control framework and planning.

Security compliance

Reviewing management’s approach to maintaining an effective internal security system (including complying with the Protective Security Policy Framework and ICT security policy).

Internal audit coverage

• Review the proposed internal audit coverage, ensure the coverage takes into account the Tribunal's key risks, and recommend approval of the Internal Audit Plan by the Principal Registrar or nominated delegate.
• Review all audit reports and provide advice to the Principal Registrar on significant issues identified in audit reports and recommend action on significant issues raised, including identification and dissemination of good practice.
• Obtain regular reports from the outsourced internal audit service provider/s, on the overall status of the Tribunal's internal audit activities and monitor management’s implementation of internal audit recommendations.
• Periodically review the performance of internal audit and report the results to the Principal Registrar.
• Provide advice to the Principal Registrar on the appointment of the internal audit service provider where the internal audit function is outsourced or co-sourced.
• Periodically meet privately with the internal audit service provider/s.

Periodically review the ART’s governance arrangements or elements of the arrangements as determined by the Principal Registrar and suggest improvements, where appropriate, to the Principal Registrar.

Satisfy the committee that the ART has appropriate mechanisms in place to review relevant parliamentary committee reports, external reviews and evaluations of the ART and implement where appropriate any recommendation arising.

Assess whether the ART has a sound approach to business continuity planning arrangements, including whether business continuity and disaster recovery plans have been periodically updated and tested.

Assess whether management has taken steps to embed a culture that promotes the proper use and management of public resources and is committed to ethical and lawful conduct.

Undertake other activities related to its responsibilities as requested by the Principal Registrar. 

The ARC will develop an annual work plan that outlines the activities to be undertaken to achieve the ARC’s functions as outlined in this charter. A forward meeting schedule will be implemented, which includes dates and proposed agenda items for each meeting for the forthcoming year.

The ARC will meet at least four times per year. One or more special meetings may be held to review the ART’s annual financial statements and performance statements or to meet other specific responsibilities of the ARC.

The Chair is required to call a meeting if asked to do so by the Principal Registrar and decide if a meeting is required if requested by another member, internal auditor or the ANAO.

A quorum will consist of a majority of ARC members. The quorum must be always in place during the meeting.

The Assistant Director, Governance will provide secretariat support to the ARC. The secretariat will ensure the agenda for each meeting is approved by the Chair; the agenda and supporting papers are circulated at least one week before the meeting; and ensure the minutes of the meetings are prepared and maintained. Minutes must be reviewed by the Chair and circulated in a timely manner to each member and committee advisor and observer as appropriate.

New members will receive relevant information and briefings on their appointment to assist them to meet their ARC responsibilities.

The ARC will review this charter and performance of the ARC periodically. This review will include consultation with the Principal Registrar. Any substantive changes to the charter will be recommended by the ARC to the Principal Registrar.