IIA-Australia News

Message from the President

by Mark Harrison, President and Chairman of the Board | Apr 10, 2019

Dear Members,

The IIA-Board had its first meeting of the year on 1 April and I wanted to provide you an insight into some of the more important items that were discussed.

The major item of business was to approve the 2018 Year-end Financial Accounts and Directors’ Report. The audited accounts confirmed an $84K surplus for the year. This was largely due to increased revenue from training and certifications, external quality assessments and administrative savings. Considerable focus and effort by the Institute during the year to generate this after a number of years of deficit provides confidence in the financial sustainability of the Institute and an ability to invest in a number of initiatives for members in future years.

The Board accepted the recommendations of the Nominations Committee for Directors of the Board for 2019/2021. These recommendations will be put to the IIA-Australia AGM which will be held in Sydney on 21 May 2019.  A formal announcement and invitation will be sent to all members in coming weeks.

The Board also noted the action of the Nominations Committee in relation to Board Committee appointments. The Nominations Committee reviewed nominations for Board Committees and refers those nominees meeting criteria to Committee Chairs for review and recommendation to the Board. This process is currently underway.  The Board then considers and approves Committee membership at its May meeting.

The Board noted further changes to the CPE Reporting arrangements by IIA-Global in respect of certification holders. IIA-Australia is one of 15 countries that has arranged for a discounted rate to be paid to IIA-Global on behalf of Australian certification holders. IIA-Global has advised that this discount is to be reduced. Over 90 countries globally require their certification holders to pay a non-discounted CPE Reporting fee direct to IIA-Global. The IIA-Board has decided to continue to support Australian certification holders with a discounted plan in 2019 and to transition to the non-discounted fee that is followed by the majority of countries in 2020. We will be in touch with how that transition will be managed to minimise the impact on members.

Consistent with our strategic intent to work more collaboratively with the second line of defence, Memoranda of Understanding are being agreed with the Risk Management Institute of Australasia and the Governance Risk and Compliance Institute. This will see promotion of one another’s conferences and events with members of one organisation attending the others at the members’ rate. We will also collaborate to offer joint members’ meetings.

In late February the ASX Corporate Governance Council released its 4th Edition of the ASX CGC Principles and Recommendations.  Following lobbying by IIA-Australia, it now includes references to the Standards in the IPPF and to other IIA-Australia joint publications.

Finally, there was considerable attention in the meeting placed on how we as an Institute will work with IIA Global on a range of reforms that are being worked on from the US, including in relation to the global operating model of the IIA globally, a global content strategy and a review of the IIA’s approach to the Three Lines of Defence model.   This follows some dedicated work by the Board last year to define how best to leverage and invest in global activities. A plan is being developed and we will be ensuring that the membership is engaged and updated on these developments.

Those of you who attended SOPAC® would agree it was a wonderful event and outstanding success.  I often heard delegates say how difficult it was to choose which concurrent session to attend due to the topics on offer and the high quality speakers. A highlight for me was a keynote panel chaired by Tony Boyd of the AFR with Elizabeth Johnstone, the Chair of the ASX Corporate Governance Council, John Price, ASIC Commissioner, and Anna Bligh AC, CEO of the Australian Bankers Association, reflecting on the recommendations of the Hayne Royal Commission. The line often quoted by members of this distinguished panel was ‘There has never been a better time to be an internal auditor’.

Best to you all 

Mark Harrison

President and Chairman of the Board