Audit and Risk Committee

The Audit and Risk Committee reports to Council and provides appropriate advice, recommendations and decision making relevant to its charter as well as overseeing its audit program.

The committee must:

• include 3 members who are councillors of Council
• include 3 independent representatives
• include a chairperson
• consist of a majority of members who are not councillors and who collectively have expertise in financial management, risk and experience in public sector management
• not include any person who is a member of Council staff.

The Audit and Risk Committee is established in compliance with the section 53(1) of the Local Government Act 2020. It will meet at least 4 times a year, with authority to convene additional meetings.

Functions

The functions and responsibilities of the committee include:

• monitoring the compliance of Council policies and procedures with its governance principles, the act and regulations for any ministerial directions
• monitoring Council financial and performance reporting
• monitoring and providing advice on risk management and fraud prevention systems and controls
• overseeing internal and external audit functions.

Charter and objective

The Audit and Risk Committee Charter sets out the committee's objectives, authority, composition, tenure, roles, responsibilities and the reporting of administrative and governance arrangements.

The committee should provide appropriate independent advice and recommendations to Council on matters relevant to the committee’s charter. This helps Council with decision-making and meeting its accountability requirements.

Internal audit

Internal audits provide assurance over the committee's internal controls. The internal auditor responsibilities include, but are not limited to:

• undertaking scheduled audits
• reporting quarterly to the committee
• supporting the development and maintenance of Councils internal audit plan
• providing Council with observations and recommendations.

Council has contracted its provision of internal audit service to Pitcher Partners, awarded through a tender process.

External audit

External audits are undertaken by the Victorian Auditor-General’s Office (VAGO). An audit opinion on the financial and performance statements Council is provided.

Mann Judd has been assigned as Council’s external auditors on behalf of VAGO. The external audit focuses on financial performance reporting and compliance to Australian and international financial reporting standards.