Annual Report 2014-15

INTERNAL AUDIT
The City's internal audit function operates in accordance
with the Institute of Internal Auditors standards. The
function consists of an Internal Audit service provider
(KPMG) and an in-house audit and assurance resource.
The Audit and Risk Committee recommends the rolling
three-year strategic audit plan to Council and annual
internal audit plan which guides the activities of the
internal audit function.
The Audit and Risk Committee receives a comprehensive
quarterly report from the Internal Audit Service provider
on the activities of the internal audits conducted and the
progress of agreed management actions.
In February 2013, the WA Government amended Regulation
17 of the Local Government Regulations 1996 to place
greater responsibility on local governments to review the
audit systems and procedures in relation to risk management,
internal control and legislative compliance at least on a
biennial basis. As a result the Audit and Risk Committee will
now receive reports pertaining to these biennially.
During 2014/15 two key audits were conducted which
resulted in improvement actions relating to:
• Building, Planning and Health Compliance processes.
• Internal Controls, Risk Management and Compliances.
EXTERNAL AUDIT
Council is externally audited by Grant Thornton. For the
financial year 2013/14 the annual external audit of Council’s
Financial and Standard Statements was conducted by Grant
Thornton. The Independent Audit Report and external audit
management letter were presented to the Audit and Risk
Committee meeting held on 28 October 2014. Management
responses were also provided to the Audit Committee. On
28 April Council appointed Grant Thornton to conduct the
2014/15 and future year’s external audit. The annual audit
plan was presented to the Audit Committee on 5 May 2015.
As part of the external audit approach, the Internal Audit
Programme and selected reports were reviewed.
SIGNIFICANT AUDIT ISSUE
The most significant audit issue for the 2014/15 financial year
is considered to be the Fair Value Revaluation of the City’s
Infrastructure Assets which has reflected $404.1 million under
Other Comprehensive Income – Changes on Revaluation
of Non-Current Assets. The City’s total assets have, as a
consequence of the revaluation of our Infrastructure assets,
increased from $1.853 billion to $2.365 billion which
will create a lot of challenges and demands on the City’s
finances, resources and capacities for the years to come.
| ANNUAL REPORT 2014/2015 | CITY OF WANNEROO | GOVERNANCE
51