2016-11-14 General Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA   8 NOVEMBER 2016




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SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                 8 NOVEMBER 2016

       INTERNAL AUDIT TERMS OF REFERENCE

       INTRODUCTION
       Section 105 of the Local Government Act 2009 requires Council to establish an efficient and effective
       internal audit function. The internal audit function must include the elements contained in Section
       207 of the Local Government Regulation 2012.
       The Internal Audit Terms of Reference is an attachment to the Internal Audit Policy and supports
       Noosa Council’s mission of “delivering transparency, efficiency and innovation with a customer
       focus”. This includes transparent and effective processes, good governance and a commitment in
       accordance with the ‘local government principles’ (see Section 4 of the Local Government Act 2009).
       Internal Audit:

       e   Is the assessment and evaluation of the control measures that Council has adopted, or is to
           adopt, to manage the operational risks to which the Council’s operations are exposed.
       e   Provides the Chief Executive Officer and Council with assurance that internal control systems
           are efficient, effective and economically viable, and that risk is appropriately addressed so
           objectives can be met.
  |    e   Operates as an independent function reporting directly to -the Audit and Risk Committee with
           respect to audit/special investigation findings.
       e   Reviews and advises on:
           o   Legislative and policy compliance;
           co Operational cost-effectiveness and efficiency;
           o   Reliability of financial and related management information;
           e—Use of public funds and assets under Council’s control; aad
          o   Adequacy and accuracy of accounting and computing systems; and
           o   Risk Management-

       Internal Audit Resourcing
       The internal audit function will be undertaken by a suitably qualified and experienced external service
       provider and specialist audit services support will be engaged as required. All work undertaken by
       the external service provider within the Council must be approved by the Audit and Risk Committee.
       The term of appointment of an internal auditor other than a staff member shall be reviewed by the
       CEO at least every two years.
       Scope and Objective of Internal Audit
       The internal audit coverage may extend to all areas of the organisation and include financial,
       accounting, administrative, computing and other operational activities.
       The extent and frequency of internal audits will depend upon varying circumstances such as results
       of previous audits, relative risk associated with activities, materiality, the adequacy of the system of
       internal control and the resources available.

       An annual audit plan will be endorsed by the Audit and Risk Committee.

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