ordinary meeting of council to be held on tuesday, 25 may 2010 at ...

Ordinary Meeting <strong>of</strong> Council - 25 May 2010 2 / 2
Item 2
S06472
17 May 2010
PURPOSE OF REPORT
The report is <strong>to</strong> recommend <strong>to</strong> Council the adoption <strong>of</strong> the Internal Audit Charter and the Audit
Committee Charter.
BACKGROUND
The inaugural <strong>meeting</strong> <strong>of</strong> the Ku-ring-gai Audit Committee <strong>to</strong>ok place on 9 March 2010. The
<strong>meeting</strong> examined the draft internal audit and audit committee charters prepared in accordance
with the sample charters provided within the Internal Audit Guidelines issued by the Department <strong>of</strong>
Local Government in August 2008. The Committee subsequently accepted the Internal Audit
Charter without amendment. The audit committee charter was accepted subject <strong>to</strong> further
research. The audit committee charter was amended <strong>to</strong> reflect comments <strong>of</strong> the Committee and
having regard <strong>to</strong> the Warringah Council’s Audit Committee Charter which is considered <strong>to</strong> <strong>be</strong> <strong>be</strong>st
practice within New South Wales Councils. The Committee resolved <strong>to</strong> submit both charters, duly
amended <strong>to</strong> Council for adoption in advance <strong>of</strong> the Audit Committee next <strong>meeting</strong> on 22 June 2010.
COMMENTS
The revised Audit Committee Charter, duly amended and reviewed by all mem<strong>be</strong>rs <strong>of</strong> the
Committee is now submitted <strong>to</strong> Council for adoption. The Internal Audit Charter which is also
submitted for adoption required no revision.
The Internal Audit Charter is required <strong>to</strong> give effect <strong>to</strong> the position <strong>of</strong> the Internal Audi<strong>to</strong>r while the
Audit Committee Charter provides the governance framework for the Audit Committee. Having a
formal Internal Audit Charter would also provide Council staff with the awareness <strong>of</strong> the role <strong>of</strong> the
Internal Audi<strong>to</strong>r and that they have access <strong>to</strong> that person as a reference in the course <strong>of</strong> the
conduct <strong>of</strong> their duties.
The Charters have <strong>be</strong>en prescri<strong>be</strong>d by the Department’s Internal Audit Guidelines.
CONSULTATION
Mem<strong>be</strong>rs <strong>of</strong> the Council’s Audit Committee and attendees, including the General Manager,
Finance Manager, Internal Ombudsman and the representative from Spencer Steers, Council’s
external audi<strong>to</strong>r, have examined draft copies and have suggested revisions so that further
improvements could <strong>be</strong> incorporated within the Audit Committee Charter
FINANCIAL CONSIDERATIONS
Not applicable
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