Finance, Audit and Risk Management Committee

The role of the Finance, Audit and Risk Management (FARM) Committee is to exercise governance responsibilities with respect to the College’s financial and business affairs, including monitoring of risk and financial performance.

The Committee acts as an advisory body to the Board in relation to financial compliance, accountability, and strategic financial reporting and oversees and monitors the College’s audit and risk management processes, including the College’s internal control activities.

Responsibilities

Ensuring the College is compliant with relevant financial legislative requirements and applicable laws, regulations, standards and best practice guidelines as they relate to finance.
Monitoring and reviewing overall audit and financial policy, financial planning and financial strategies of the College, including opportunities for alternative funding streams for College activities, monetisation opportunities, and the internal controls and processes for their implementation.
Oversight of financial management, systems, and performance, and protection of College assets, and providing progress reports to the Board.
Reviewing the annual budget, forecasts, and making recommendations to the Board.
Recommending to the Board the appointment and terms of engagement of the external auditors and their audit plan.
Reviewing the annual declaration of independence from the external auditors and their performance.
Overseeing the annual external audit of the College’s financial statements and processes.
Regularly reviewing and monitoring the College’s cash flow position, investments, and exposure to fraud.
Serving as an independent and objective party to review the financial information including annual and periodic accounts and accounting policies and practices presented by management to the Board for presentation to College Members and regulatory authorities.
Reviewing and assessing the adequacy of the reporting, risk management, and internal controls of the College.
Identifying and overseeing financial risks associated with all College Committees and its own committee, in accordance with the College’s Risk Management Policy, and for reporting high and extreme level risks to the Board.
Reviewing, implementing and evaluating the College’s risk management framework, policies, and procedures.
Ensuring alignment between the College’s risk profile and the Board’s risk appetite and strategic priorities.
Evaluating and notifying the Board of emerging risks and ensuring appropriate mitigation strategies have been identified by the risk owner.
Reporting to the Board twice a year a summary of the major risks facing the College, with recommendations for mitigation.
Undertaking an annual evaluation of the FARM Committee responsibilities and functionality.

Chair 

The current Chair of the Committee is Prof Richard Newton.

Investment Subcommittee

Reporting to the Finance, Audit and Risk Management Committee, the Investment Subcommittee oversees the College’s investment portfolio and performance and implements the Investment Policy.

The Subcommittee comprises the Finance, Audit and Risk Management Committee Chair and two members.

Meeting frequency

The FARM Committee typically meet 6 times per calendar year (each meeting up to 1.5 hours in duration).

A committee member will also be required to respond to emails between formal meetings.

Regulations

For a copy of the Committee Regulations, please contact governance@ranzcp.org.