Environment, Health & Safety Audit Budget Incentives

Budget Divisions which receive Non-conformance or RequiresCorrection ratings in the University’s Environment Health and Safety internal audits are liable to a penalty of –

• in the case of a Non-conformance rating - $20,000 per rating where no action plan is in place one month after the date of the final audit report;
• in the case of a Non-conformance rating – an additional $30,000 per rating where still non-conforming within four months after the date of the final audit report;
• in the case of a Non-conformance rating for an item that in the previous audit also received a non-conformance rating - $30,000 per rating; and
• n the case of Requires Correction ratings - $5,000 for each rating where not remedied within four months of the date of the final audit report.

Administration of this incentive will be as follows:

The internal audit program runs across a calendar year. In order to have timely advice to Planning & Budget Committee on this incentive by its November meeting, the terms of this incentive will apply from 1 January to 30 September. Penalties that may arise in the period 1 October to 31 December will be included in the following years Budget Incentives Program.

The definition of Non-conformance and RequiresCorrection ratings are as published on the Internal Audit website.

The determination of whether timely action plans are in place will be made by Internal Audit based on return of a template by the budget division. The determination of whether Non-conformance and RequiresCorrection ratings have been remedied will be made by Internal Audit based on the close-out audit.

Internal Audit will provide University Finance & Planning Office with a quarterly report at the end of March, June and September summarising OH&S audit ratings, response plans and close-out audit results, including advice about penalties under this incentive.

In the discretion of the Senior Vice-Principal, penalties under this incentive may be applied directly to remedial and compliance action either within the relevant budget division and/or the OHS & IM Unit and/or the Internal Audit Office.

The Senior Vice-Principal also has discretion to determine that where a division has responded to a non-conformance rating within four months and has achieved improvement, albeit still “requires improvement”, that the penalty should be reduced from $30,000 to $5,000.