Appendix 3: Governance

Governing Board

The Portable Long Service Benefits Authority (the Authority) has a Governing Board that is accountable to the Minister for Industrial Relations.

In accordance with the Long Service Benefits Portability Act 2018 (Vic), the Governing Board:

• sets the levy to be paid by employers and contract workers
• is responsible for the governance, strategic planning and risk management of the Authority
• advises the Minister on agreements for corresponding schemes across Australia
• may perform functions and exercise the powers of the Authority that it deems appropriate

The following table indicates Director attendance at governing board meetings for the Authority.

Note: The number of meetings includes ordinary meetings, special meetings and resolutions outside of meetings.

Audit and Risk Management Committee

The Audit and Risk Committee is established by the Governing Board and in accordance with the Standing Directions for the Minister for Finance (2018) under the Financial Management Act 1994 (Vic) (the Standing Directions). It provides independent assurance and advice to the Governing Board and Chief Executive Officer/Registrar on the effectiveness of the Authority’s financial management systems and controls, performance and stability, compliance with laws and regulations and risk management.

The Audit and Risk Committee comprises four members, at least one of which must be independent from the Governing Board and the Authority. The Committee is governed by a charter detailing its role and responsibilities consistent with the Standing Directions and best practice corporate governance principles.

At its May 2019 Governing Board meeting, the Governing Board appointed the following Audit and Risk Committee members:

• Claire Filson (Chair)
• Rachaell Saunders
• Julie Warren

The first Audit and Risk Committee meeting was held on 17 July 2019. Subsequent to the 2018–19 financial year, the Committee will appoint the fourth independent member during the 2019/20 financial year.

Internal audit

The Financial Management Act 1994 (Vic) and the associated Standing Directions for the Minister for Finance (2018) specify standards for governance, including oversight and assurance responsibilities for audit committees and internal audit. To ensure compliance with these obligations and to assure strategic and risk aligned internal controls, in 2019/20, the Authority will establish its internal audit function in accordance with the three lines of defence model, integrating and aligning assurance processes from multiple sources, which is widely considered to be the better practice model for an assurance environment.

The Authority will appoint an internal auditor to undertake the Authority’s internal audit program. Working closely with management, the Governing Board and the Audit and Risk Committee, the first task of the appointed Internal Auditor will be to create a risk-aligned strategic internal audit plan.

The internal audit service provider will report directly to the Authority’s Audit and Risk Committee with the results of audits and monitoring of management actions to address audit findings and recommendations undertaken by the Committee.

Financial management compliance

In accordance with section 8(3)(d) of the Financial Management Act 1994 (Vic) and Standing Directions 1.5, the Assistant Treasurer has granted the Authority an exemption for the 2018/19 financial year.

Conflicts of interest

The Authority has a Conflict of Interest Policy for the Governing Board and for employees. These policies set out obligations in relation to managing conflicts of interest. The Policies ensure that there is a clear, transparent and accountable process in place to manage actual and perceived conflicts of interest which facilitates the Authority’s compliance with section 81 of the Public Administration Act 2004 (Vic) and section 45 of the Long Service Benefits Portability Act 2018 (Vic) in relation to pecuniary interests.