July 2026
Chapter one – Overview
1.1 The Director-General (DG) of the Australian Naval Nuclear Power Safety Regulator (the Agency)
has established the Agency Audit and Risk Committee (the Committee) in accordance with
Section 45 of the PGPA Act and Section 17 of the PGPA Rule.
Objective
1.2 The Committee is established to provide independent advice to the DG of the Agency.
The Committee does not make decisions on the management of the Agency.
1.3 Papers to the Committee should be designed to be outcome oriented and ask the
Committee to:
- advise on proposed courses of action
- invite further work action or attendance at an appropriate Committee meeting by
Agency senior management to facilitate further discussion and/or - agree issues to be discussed with DG ANNPSR.
Functions
1.4 Consistent with subsection 17(2) of the PGPA Rule, the functions of the Committee include
reviewing the appropriateness of the Agency’s financial reporting, performance reporting,
system of risk oversight and management, and system of internal control.
Chapter two – Governance, risk management and accountability
Financial reporting
2.1 The Committee will review and provide advice to the DG on the appropriateness of the
Agency’s:
- annual financial statements and their compliance with the PGPA Act, the PGPA Rule, and
the Australian Accounting Standards, including a recommendation to the DG with regard to
signing of the Agency financial statements - consolidated financial statements supplementary reporting pack
- financial reporting as a whole, with reference to any specific areas of concern or suggestions
for improvement.
Performance reporting
2.2 The Committee will review and provide advice to the DG on the appropriateness of:
- the framework for developing and reporting performance information including compliance
with mandatory requirements of the PGPA Act and PGPA Rules - performance information to be included in the Portfolio Budget Statements and the
Corporate Plan - performance information to be included in the Annual Performance Statements
- the Agency’s performance reporting as a whole, with reference to any specific areas of
concerns or suggestions for improvement.
System of risk oversight and management
2.3 The Committee will review and provide advice to the DG on the appropriateness of the
Agency’s:
- enterprise risk management framework and associated procedures for effective
identification and management of its risks consistent with the Commonwealth Risk
Management Policy - approach to managing key risks, including those associated with programme
implementation, projects, and activities - fraud control arrangements to detect, capture and effectively respond to fraud risks
consistent with the Commonwealth Fraud and Corruption Framework - system of risk oversight and management as a whole, with reference to the Commonwealth
Risk Management Policy and Commonwealth Fraud and Corruption Control Framework,
referring to any specific areas of concern or suggestions or improvement - approach to managing policy breaches identified and captured on the Agency’s
compliance register.
System of internal control
2.4 The Committee will provide advice to the DG on the appropriateness of the Agency’s system
of internal control by reviewing the following and advising of any specific areas of concern or
suggestions for improvement:
- Internal control framework:
(1) key policies and procedures are in place, including Accountable Authority Instructions,
Instruments of Delegations, Work Health and Safety policies and Fraud and Corruption
Control Plan
(2) appropriate processes in place to assess and monitor compliance with key Agency
policies and procedures. - Legislative compliance:
(1) systems for monitoring the Agency’s compliance with relevant legislation, regulations
and applicable government policies. - Business continuity arrangements:
(1) business continuity and disaster recovery plans are in place and have been periodically
updated and tested. - Security compliance:
(1) the Agency’s approach to maintaining an effective internal security system through
review of the Protective Security Policy Framework maturity levels and relevant ICT
security and cyber policies. - Internal audit arrangements including:
(1) that internal audit coverage takes into account the Agency’s key risks
(2) Internal Audit Work Program; reviewing and recommending approval by the DG
(3) audit reports, reviewing internal audit reports and Australian National Audit Office
(ANAO) performance audits that relate to the Agency, and providing advice to the DG on
major concerns identified. - Ethical and lawful conduct:
(1) the steps taken to embed a culture that promotes the proper use and management of
public resources and the commitment to ethical and lawful conduct. - Parliamentary committee reports and external reviews:
(1) the mechanisms for reviewing relevant parliamentary committee reports,
external reviews, evaluations, and internal audits of the Agency, and reviewing the
implementation of any resultant recommendations.
Composition and operation
Membership
2.5 The DG appoints the members of the Committee, including the Chair and Deputy Chair of the
Committee. Under Subsection 17(3) of the PGPA Rule the Committee must consist of at least
three (3) persons.
2.6 Under Subsection 17(4) of the PGPA Rule, from 1 July 2021:
- all of the members of the Committee must be persons who are not Agency officials; and
- a majority of the members must be persons who are not officials of any Commonwealth
entity.
2.7 Members of the Committee are expected to attend all meetings and may not be represented by
others.
2.8 The DG may appoint permanent Senior Advisers to the Committee.
- Senior Advisers are expected to attend all meetings.
- When a Senior Adviser is unavailable to attend a meeting and there is no official acting
arrangement in place, an alternative representative may attend only with the Chair’s
pre-approval, sought via the Committee Secretariat.
2.9 Members of the Committee will be appointed for an initial period determined by the DG.
Members of the Committee may be re-appointed after a formal review of their performance for
further periods as specified by the DG.
2.10 Consistent with subsection 17(5) of the PGPA Rule, the DG and the Chief Finance Officer may
attend meetings but cannot be members of the Committee.
2.11 Representatives of the ANAO may attend Committee meetings (in whole or in part) as
observers.
Committee member’s responsibilities
2.12 Members of the Committee are expected to understand and observe the legal requirements of
the PGPA legislation and are expected to:
- act in the best interests of the Agency
- apply good analytical skills, objectivity and judgement
- express opinions constructively and raise issues that relate to the Committee’s
responsibilities and pursue independent lines of enquiry - contribute the time required to meet their responsibilities
- ensure transparency through full disclosure.
Conflict of Interest
2.13 Once a year, and when otherwise required, members of the Committee are to provide
written declarations of any potential, perceived or actual conflicts of interest they may have
in relation to their responsibilities as members of the Committee. Members should consider
past employment, consultancy arrangements and related party issues when making these
declarations.
2.14 At the beginning of each Committee meeting, members, advisers and observers will be required
to declare any potential, perceived or actual conflicts of interest that may apply to specific
matters on the meeting agenda including any actual, perceived or potential conflict previously
notified.
2.15 The Chair will determine how any actual, potential or perceived conflict of interests will be
managed which may include members, advisers or observers being excused from the meeting
of from the Committee’s consideration to the relevant agenda item(s).
2.16 The Chair is also responsible for deciding, in consultation with the DG where appropriate, if they
should excuse themselves from the meeting or from the Committee’s consideration to relevant
agenda item(s).
2.17 Details of any material personal interests declared by the Chair, other members, advisers and
observers, and action taken, will be appropriately recorded in the outcomes.
Committee authority
2.18 The DG authorises the Committee, in performing its functions to:
- seek any information it requires from any official of the Agency or external party
- request legal or other professional advice, subject to approval the by appropriate delegate
- require the attendance of any official of the agency at meetings as appropriate.
2.19 The DG also directs officials of the Agency to cooperate with the Committee.
Independence
2.20 The Committee is directly accountable to the DG for the performance of its functions.
2.21 The Committee has no executive powers in relation to the operations of the Agency. The
Committee may only review the appropriateness of particular aspects of those operations,
consistent with its functions, and advises the DG accordingly.
Sub-committees
2.22 The Committee may establish sub-committees to support the performance of its functions. The
establishment of such sub-committees does not change the Committee’s responsibilities under
the Charter.
2.23 The responsibilities, membership and reporting arrangements for each sub-committee shall
be documented and approved by the Committee, and will be reviewed and endorsed by the
Committee annually.
Chapter three – Meetings and administration
Meeting frequency
3.1 The Committee will meet at least 5 times per year, with additional meetings to be held, if
required. Special meetings may be held to review the Agency’s annual financial statements and
annual performance statements or to meet other specific responsibilities of the Committee.
3.2 The Chair may call for any additional meetings if directed by the DG or if requested by another
Committee member.
3.3 The Committee is authorised to make decisions out of session between meetings. Any such
decisions shall be in writing and documented at the next meeting of the Committee.
3.4 The Committee seeks short, succinct papers no more than 2 pages (attachments and
appendices are additional). The papers are due to the Secretariat 8 business days before each
meeting.
Quorum
3.5 A quorum for any Committee meeting will be 2 members, one of whom must be the Chair or the
Deputy Chair.
Secretariat
3.6 The Agency, through the Office of the DG, will provide secretariat services and support the
Committee.
3.7 The Secretariat will facilitate the Chair’s approval of the agenda for each meeting; the agenda
and supporting papers are to be circulated at least 5 business days before each meeting; and
the outcomes of each meeting are prepared and maintained.
3.8 Outcomes must be reviewed by the Chair and circulated in a timely manner to each member
prior to being considered for approval at the next meeting.
Forward work plan
3.9 The Committee will document the matters it will consider during any given year through an
annual forward work plan. The work plan will include the proposed agenda items for each
meeting and cover all of the functions outlined in this Charter.
Reporting
3.10 The Chair will report to the DG after each meeting. Any matter deemed of sufficient importance
will be reported to the DG immediately.
3.11 The Committee will, as often as necessary, and at least once a year, report to the DG on its
operation and activities against the responsibilities outlined in this Charter.
Annual report requirements
3.12 Section 17AG (2A) of the PGPA Rule establishes that the following information in relation to the
Committee is to be included in the annual report:
- a direct electronic address of this Charter that determines the functions of the Committee;
- the name of each member of the Committee during the period;
- the qualifications, knowledge, skills or experience of those members;
- information about each of those members’ attendance at meetings of the Committee
during the period - the remuneration of each of the members.
3.13 The Secretariat will liaise with the members to facilitate provision of this information.
Record keeping
3.14 The Committee Secretariat must maintain Committee records in accordance with the Records
Management Policy, its obligations under the Archives Act 1983 and Section 37 of the PGPA Act.
Review of charter
3.15 The Committee will review this Charter at least annually, and endorse it for approval by the DG.
