Original source · versioned page text
REVIEW OF THE AUDIT AND RISK COMMITTEE CHARTER & REVIEW OF THE INTERNAL AUDIT POLICY · Report
SERVICES & ORGANISATION COMMITTEE MEETING 9 SEPTEMBER 2025
7.4 REVIEW OF THE AUDIT AND RISK COMMITTEE CHARTER & REVIEW OF
THE INTERNAL AUDIT POLICY
Author Executive Officer, Jonci Wolff
Office of the CEO & Mayor
Index Governance-Internal Audit 27.21
Governance-Audit Committee 27.22
Attachments 1. ATTACHMENT 1_AUDIT & RISK COMMITTEE CHARTER_DRAFT
2. ATTACHMENT 2_INTERNAL AUDIT POLICY_DRAFT
EXECUTIVE SUMMARY
This report seeks Council’s adoption of the revised Audit and Risk Committee Charter and Internal
Audit Policy, which together provide the framework for independent oversight of Council’s
governance, risk management, and internal control environment by the Audit and Risk Committee.
As part of the annual review, both documents were reformatted to align with Council’s branding and
policy template, with minor structural and wording changes made to improve clarity and readability
without altering their intent.
The review also incorporated recommendations from the Internal Audit Review of the Effectiveness
of the Audit and Risk Committee and was informed by research into professional standards and
better practice for Charters and Audit and Risk Committee functions. Following this process, both
documents were reviewed by the Executive Officer, Internal Audit & Corporate Performance, and
subsequently considered and endorsed by the Audit and Risk Committee.
RECOMMENDATION
That Council
A. Note the report by the Executive Officer to the Services & Organisation Committee meeting
dated 9 September 2025 regarding the Audit and Risk Committee Charter and Internal Audit
Policy;
B. Adopt the
1. Audit and Risk Committee Charter provided as Attachment 1; and
2. Internal Audit Policy provided as Attachment 2.
REPORT
1. Audit and Risk Committee Charter (Attachment 1)
The purpose of the Audit and Risk Committee Charter (the Charter) is to formally set out the role,
authority, and responsibilities of the Audit and Risk Committee (the Committee). It serves as the
governance framework that guides how the Committee supports Council in fulfilling its oversight
obligations. Section four of the Charter requires that the Charter be reviewed annually.
As part of the review, several sections were reformatted to align with Council’s branding and policy
template. Minor wording and structural changes were also made to improve readability, without
altering the document’s content.
See the original
The page text is free to read. Viewing or downloading an original file needs an account.
Log in to see the originalFull text of the other 3 pages
Page 2
SERVICES & ORGANISATION COMMITTEE MEETING 9 SEPTEMBER 2025
The Charter has also been amended to include recommendations from the Internal Audit Review of
the Effectiveness of the Audit and Risk Committee. In addition, research was undertaken into various
professional standards for the development of Charters and Audit and Risk Committee functions.
Reflective of the internal audit recommendations and research, the following changes were
implemented:
• Increasing the term for independent members from two years to three years which is
considered better practice (section 10).
• Amending the quorum from three to two members in line with section 211 of the Local
Government Regulation 2012 (section 12).
• Expanding responsibilities of the Committee (section 6) for the review and oversight of:
1. Corporate culture;
2. Performance management and reporting;
3. The security of Council systems and information;
4. Significant projects & outsourcing;
5. Business continuity planning.
• Strengthened wording, including sections dealing with confidentiality (section 8), conflict of
interest (section 9), and internal controls (section 6).
• Definitions were expanded to assist the reader in interpreting the Charter (section 14).
2. Internal Audit Policy (Attachment 2)
The Internal Audit Policy establishes the strategic framework for the delivery of Council’s internal
audit function, as endorsed by the Audit and Risk Committee. As a key component of Council’s
governance framework, the internal audit function provides an independent, objective, and risk-
based assessment of Council’s internal control environment. Section eight of the Internal Audit Policy
requires that this policy be reviewed annually.
As part of the review, some sections have been reformatted and brought in line with Council’s
updated branding. Further, while there is effectively no change to the content of the policy section,
responding to recommendations of the Internal Audit Review of the Effectiveness of the Audit and
Risk Committee, several changes to the Terms of Reference have been implemented:
• Internal audit methodology (section 7) - highlighting the various methodologies to be applied
in the audit process depending on the particular audit.
• Internal audit reporting process (section 8) - to improve how audit recommendations are
structured and actioned.
• Responsibilities (section 9) - to clarify CEO, ARCO and Council responsibilities.
• Management actions (section 13) - to clarify responsibilities for implementing internal audit
recommendations.
• Evaluating Internal Audit performance (section 14) - to monitor Internal Audit performance
and client satisfaction.
Conclusion
The revised Audit and Risk Committee Charter and Internal Audit Policy provide a strengthened
framework for Council’s governance, risk management, and internal control environment. Together,
these documents reflect contemporary best practice, incorporate recommendations from the recent
review of the Audit and Risk Committee’s effectiveness, and ensure ongoing alignment with
legislative requirements. Their adoption will enhance clarity of roles, strengthen accountability, and
Page 3
SERVICES & ORGANISATION COMMITTEE MEETING 9 SEPTEMBER 2025 support Council in maintaining robust oversight arrangements. Link to Corporate Plan Theme 5 Excellence This Theme focuses on customer experience, financial accountability, innovation and technology, levels of service, governance, our employees and volunteers, funding streams and asset management practices. 5.5 provide robust and transparent governance systems to build and strengthen community trust, supported by implementation of an enterprise risk and opportunity management framework. Previous Council Consideration Ordinary Meeting 17 March 2022 That the report of the Audit & Risk Committee dated 10 March 2022 be received and the recommendations therein be adopted. 4. INTERNAL AUDIT That Council note the report by the Governance Advisor to the Audit & Risk Committee Meeting dated 10 March 2022 providing an update on internal audit matters and approve the amended Internal Audit Policy provided as Attachment 3 to the report. Finance Not applicable. Risk & Opportunities Having an Audit and Risk Committee Charter and an Internal Audit Policy provides Council with a clear governance framework that strengthens accountability, transparency, and risk management. These documents help ensure independent oversight, structured internal audit activities, and alignment with legislative and best practice requirements. Without them, Council faces risks such as unclear roles and responsibilities, inconsistent audit practices, diminished organisational assurance, and reduced stakeholder confidence, while also missing opportunities to proactively identify improvements and enhance decision-making. Human Rights Human Rights Compatibility Statement In developing this Report, the subject matter has been considered in accordance with the requirements of the Queensland Human Rights Act 2019. It is considered that the subject matter does not conflict with any human rights and supports a human rights approach to decision making by Council. Council representatives will endeavour to act and make decisions under this report in a manner that is compatible with human rights. This report should be read in conjunction with Council’s Human Rights Policy. Consultation External Consultation - Community & Stakeholder Nil. Internal Consultation
Page 4
SERVICES & ORGANISATION COMMITTEE MEETING 9 SEPTEMBER 2025
Departments consulted:
Office of the CEO, Mayor & Community Services Corporate Services
Councillors
x Mayor & Councillors Director Director
x Chief Executive Officer Community Development Financial Services
x Executive Officers Sport & Active Lifestyles Fleet
Community Engagement Arts & Culture Revenue Services
People & Culture Community Connection ICT
x Governance Customer Experience Procurement
Commercial Property
Strategy & Environment Development & Regulation Infrastructure Services
Director Director Director
Strategy & Sustainability Development Assessment Infrastructure Planning, Design
and Delivery
Economic Development & Local Laws Civil and Asset operations
Destination Management
Environmental Services Environmental Health Waste
Innovation & Digital Hub Building & Plumbing Building & Facilities
Property / Permits Disaster Management