Qantas 2011 Annual Report Download - page 28

THE QANTAS GROUP 26
for the year ended 30 June 2011
Corporate Governance Statement continued
Management self-assessments, including self-assessments against
the different QMS elements, audits and risk management reviews, are
undertaken to conrm that risks are being mitigated where possible.
On a quarterly basis, Executive Management is required to certify that
there is an effective risk management process in place within their
area of responsibility.
Group Audit validates and reports to the Board and relevant Board
Committees that there is an effective risk management process in
place for the nancial period and up to the date of signing the
Financial Report.
Further details of the Framework and corporate governance structure
are captured in the Qantas Investor Data Book available in the
Investors section on the Qantas website.
Safety, Health, Environment & Security Committee (CHESS)
The Safety, Health, Environment & Security Committee
(known as CHESS):
— Has six Members – the CEO and ve others who are Independent
Non-Executive Directors
— Is chaired by John Schubert, an Independent Non-Executive
Director
— Has a written Charter which is available in the Corporate
Governance section on the Qantas website
— Is responsible for assisting the Board in fullling its strategy, policy,
monitoring and corporate governance responsibilities in regard to
safety, health, environment and security matters including:
– Compliance with related legal and regulatory obligations
– Enterprise-wide risk management
The experience and qualications of Members of CHESS are detailed
on pages  and . Membership of and attendance at /
CHESS Meetings are detailed on page .
Group Audit and Risk
Group Audit and Risk provides independent, objective assurance
and consulting services on Qantas’ system of risk management,
internal compliance, control and governance through:
— Maintaining and improving the risk management framework
as approved by the Board
— Quarterly risk reporting to the Board
— Performing audits and other advisory services to assure
risk management throughout the Group
Group Audit and Risk adopts a risk-based approach in formulating
its audit plan to align audit activities to the key risks across the Qantas
Group. The audit plan is reviewed every six months to align audit
activity to changes to the Qantas Group risk prole. The audit plan is
approved by the Audit Committee bi-annually and submitted to the
CHESS for information and approval where appropriate.
Audit projects performed by Group Audit and Risk assist the Audit
Committee and the CHESS to promote sound risk management
and good corporate governance. Group Audit and Risk assesses
the design and operating effectiveness of controls for key business
processes to mitigate risks identied in the Qantas risk prole.
Management is responsible for ensuring that appropriate corrective
actions are taken on reported areas for improvement arising
from audit projects within specied time periods. The status of
audit management actions are submitted monthly to Executive
Management and quarterly to the Audit Committee.
The Group Audit and Risk function is independent of the external
auditor, has full access to Management and the right to seek
information and explanation. The Audit Committee oversees the
scope of the Group Audit and Risk function and has access to the
auditors without the presence of Management.
In addition to Group Audit and Risk, operationally focused business
units within the Qantas Group have their own internal audit functions
to provide assurance around key operational and regulatory
compliance risks. The ndings from these audit activities, along with
the status of audit Management actions, are reported through
operational safety governance structures and to CHESS.
As there are multiple audit functions within Qantas, an Integrated
Audit Community was established in May  to support the delivery
of quality audit services throughout the Qantas Group through
information sharing, co-ordination and focusing on continuous
improvement in audit management and delivery.
CEO/CFO Declaration
As required by section A of the Corporations Act, the CEO and
CFO have declared that:
“In our opinion:
a. the nancial records of Qantas and its controlled entities (Qantas
Group) for the nancial year ended  June  (Financial Period)
have been properly maintained in accordance with section 
of the Corporations Act;
b. the nancial statements and the notes referred to in section ()
(b) of the Corporations Act for the Financial Period comply with the
accounting standards and other mandatory professional reporting
requirements; and
c. the nancial statements and notes for the Financial Period give
a true and fair view of the nancial position and performance
of the Qantas Group in accordance with section  of the
Corporations Act.”
In addition, in accordance with Recommendation . of the ASX
Principles, the CEO and CFO also state to the Board that, in respect
of the Qantas Group for the Financial Period:
a. “The declaration given in accordance with section A is founded
on a sound system of risk management and internal compliance
and control and the system is operating effectively in all material
respects in relation to nancial reporting risks; and
b. The statement given in accordance with Recommendation .
(above) regarding the risk management and internal compliance
and control system provide a reasonable, but not absolute level
of assurance and does not imply a guarantee against adverse
events or more volatile outcomes arising in the future.”