Audit committees support the governance of non-corporate Commonwealth entities. We have an audit committee that:

  • provides independent advice
  • helps us carry out our duties and meet our obligations
  • supports the development of our key practices and capacity.

Committee function

We established the Clean Energy Regulator Audit Committee under:

This Audit Committee Charter sets out the committee's functions. The committee has no managerial responsibilities. It doesn't make decisions about our processes and functions. It provides independent advice that we may use when carrying out our duties and obligations. The committee must review the appropriateness of the Clean Energy Regulator's:

  • financial reporting
  • performance reporting
  • system of risk oversight and management
  • system of internal control.

Financial reporting

The committee must review the appropriateness of our financial reporting. This includes:

  • processes and systems for preparing financial reporting information
  • processes in place to keep us informed of any changes throughout the year or extra financial reporting needs
  • annual financial statements.

The committee provides us with advice on whether:

  • the annual financial statements, in the committee's view, comply with the PGPA Act, PGPA Rule, accounting standards and supporting guidance
  • additional agency information (except financial statements) required by Finance for the purpose of preparing the Australian Government consolidated financial statements (including the supplementary reporting package) comply with the PGPA Act, PGPA Rule, accounting standards and supporting guidance
  • our financial reporting is appropriate to any specific areas of concern or improvement.

Performance reporting

The committee must review the appropriateness of our performance reporting. This includes processes for assessing, monitoring and reporting on the achievement of its performance.

The review considers:

  • if the corporate plan and Portfolio Budget Statements have enough detail on how we will measure performance
  • our approach to measuring yearly performance against targets in the corporate plan and Portfolio Budget Statements
  • performance is appropriate and under the Commonwealth Performance Framework
  • we have processes in place to prepare the performance statement for the annual report.

The committee provides us with advice about:

  • the appropriateness of our annual performance statements
  • its performance reporting as a whole
  • its compliance with the PGPA Act and PGPA Rule
  • any specific areas of concern or suggestions for improvement.

System of risk oversight and management

The committee reviews our system of risk oversight and management. This includes reviewing:

  • if we have a current and appropriate enterprise risk management policy framework
  • if we have effective internal controls for identifying and managing risk in line with the Commonwealth Risk Management Policy
  • processes for developing and implementing fraud control arrangements consistent with the control framework
  • to ensure we have adequate processes for detecting, capturing and responding to fraud risks.

The committee will provide us with a statement of their view in relation to:

  • suitability of our systems for risk oversight and risk management as a whole, in line with the Commonwealth Risk Management Policy
  • any specific areas of concern or suggestions for improvement.

System of internal control

The committee reviews our system of internal control and provides independent advice. This considers the internal control framework, including:

  • our approach to maintaining an effective internal control framework
  • if suitable processes are in place to assess compliance with policies and procedures
  • if we have in place relevant policies and procedures (e.g. instructions, delegations and a business continuity management plan).

It also considers legislative and policy compliance, including:

  • the effectiveness of systems that check our compliance with laws, regulations and policies we must comply with
  • if we've considered legal and compliance risks as part of our:
    • enterprise risk management framework
    • fraud control framework
    • planning.

The committee will provide a statement to us relating to the suitability of our systems for internal control. The statement will mention any specific areas of concern or suggestions for improvement.


The PGPA Rule sets out minimum requirements relating to the committee for a Commonwealth entity. The Rule helps ensure that the committee provides independent advice and assurance to us.

The requirements for committee membership for non-corporate Commonwealth entities, like ours, are:

  • The committee must consist of at least 3 people who have appropriate qualifications, knowledge, skills or experience to help it in performing its functions.
  • All members of the committee must be people who are not officials of the entity.
  • A majority of the members must be people who are not officials of any Commonwealth entity.

A person employed or engaged primarily to be a member of the committee is to be treated as not being an official or employee of the entity.

The following Clean Energy Regulator staff must not be a member of the committee:

  • Chief Executive Officer
  • Chief Financial Officer
  • Chief Operations Officer
  • Chief Information Officer
  • Chief Risk Officer
  • Chief Internal Auditor.

They may attend meetings as advisors or observers, as determined by the chair. A member of the Clean Energy Regulator may also attend meetings as an advisor or observer.

The committee comprises 3 members, appointed by us. The chair of the committee will be an independent member. We may also appoint a deputy chair to act as chair in their absence.

We'll appoint committee members for a set period. As a guide, we may appoint the chair for up to 5 years and members for up to 8 years. We may extend membership.

Initial and subsequent appointment terms will be subject to the needs of the Clean Energy Regulator. We'll consider this in line with a formal review of performance and appropriate membership overlap. This will ensure continuity of experience and agency-specific knowledge.

Members of the committee will collectively have a broad range of knowledge, skills and experience relevant to the operations of the Clean Energy Regulator. This includes its information technology environment.

All committee members should be familiar with financial management reporting. At least one member must have accounting or related financial management experience or qualifications. They must also have a comprehensive understanding of accounting and auditing standards.

Representatives from the Australian National Audit Office and from our internal audit service providers will not be members of the committee. They may attend relevant committee meetings as observers, as determined by the chair.

Committee members must not use or disclose information obtained by the committee except in meeting the committee's responsibilities or unless expressly agreed by us.


The committee may use instruments to establish sub-committees to support the performance of its functions. A member of the committee must chair sub-committees. The setup of sub-committees does not change the committee's functions under this charter.


We authorise the committee to:

  • seek any information it needs from any official of the Clean Energy Regulator or external parties
  • request legal or other professional advice subject to approval by the appropriate delegate
  • request the attendance of any official of the agency at meetings, as appropriate.

We direct our officials to cooperate with the committee.


The committee will meet at least 4 times per year and more often if needed. The committee may hold special meetings to review our annual financial statements and performance statements or to meet other specific responsibilities.

The chair will call a meeting at the request of us and may call a meeting if requested by another committee member. A quorum for any committee meeting will be 2 members, one who must be the chair or the deputy chair (if appointed).

The committee will hold private discussions with external audit and internal audit representatives yearly.

Committee management

Our legal services and governance branch will provide committee management services to the committee.

Conflicts of interest

Members with a potential conflict of interest should let the committee know as they become aware of it. Any member with a conflict of interest will remove themselves from discussions about relevant matters.

Members must inform us of any relationships that could be viewed as weakening either the individual's or the committee's actual or perceived independence.

Once a year, the committee will provide written declarations to the chair and us to declare any potential or actual conflicts of interest they may have in relation to their responsibilities.

Attendees must declare any potential conflicts at the start of the meeting or before discussions of the relevant item or topic. Details of any conflicts will be recorded in the minutes of the meeting.

Review of functions

The chair reviews committee performance at least once every 2 years.

The committee reviews this charter at least once a year. This ensures alignment with current risks, challenges and opportunities. The charter is also reviewed if any changes to the PGPA framework impact committee functions.

The committee conducts all reviews in consultation with us. It also reports all review outcomes to us.