Effective corporate governance is essential to the performance, integrity and transparency of public sector organisations. Corporate governance refers to the processes by which organisations are directed, controlled and held to account. NSW Treasury supports the achievement of robust corporate governance across the sector through a number of policies and guidelines. In this section agencies will find Treasury requirements and best practice guidance.
Internal Audit and Risk Management
Robust internal audit and risk management processes across the NSW public sector promote the integrity of the allocation and management of the State’s resources. Together, sound internal audit and risk management practices contribute to an environment of effective governance and informed decision-making. In particular:
- The successful management of risk will increase the likelihood of an agency achieving its objectives, both in the short and longer term.
- Internal audit is provides assurance to the agency head, through independent review of the design and effectiveness of an agency’s controls.
- An Audit and Risk Committee contributes to the integrity of these governance frameworks providing independent advice to the agency head based on its monitoring and review of the effectiveness of the agency’s internal audit functions, risk management and control frameworks.
Treasury supports clear accountability within agencies for the effectiveness of internal controls over financial information, including design and operating effectiveness, and promotes consistency of practice across the sector in assessing the system of internal controls.
High quality financial information is essential to good governance – forming the foundation for sound resource allocation and financial management decisions, and accurate and transparent financial reporting. The quality of an agency’s financial information and financial reporting reflects the effectiveness of the systems, policies, procedures and practices that underpin them.
Fraud control is an important component of effective resource management. With responsibility for significant public resources, it is essential that agencies assess and address fraud risks as part of their risk management frameworks. Fraud, can be more difficult to prevent and detect than unintentional errors as perpetrators will often take actions to avoid detection. It is therefore necessary to identify and assess risks and design controls specifically to mitigate the risk of fraud.