Review Of The Audit And Risk Committee Charter & Review Of The Internal Audit Policy · Attachment 1_Audit & Risk Committee Charter_Draft

AUDIT & RISK COMMITTEE CHARTER


          Risk management, including fraud and corruption risk, business continuity.

The Committee’s responsibilities include:

6.1       Financial statements and reporting

      a) Review the appropriateness of accounting policies adopted by Council and ensure they are
         relevant to council and its specific circumstances.
      b) Review the appropriateness of significant assumptions and critical judgements made by
         management, particularly around estimations which impact on reported amounts of assets,
         liabilities, income, and expenses in the financial statements.
      c) Review the financial statements for compliance with prescribed accounting and other
         requirements.
      d) Review the results of the external audit and any significant financial issues identified.
      e) Analyse the financial performance and financial position and seek explanation for significant
         trends or variations from budget or forecasts.
      f) Monitor and assess progress against agreed financial statement preparation and auditing
         milestones.
      g) Review with management and the external auditors any significant adjustments or changes
         between draft and final financial statements.
      h) Review Council’s draft financial statements prior to submission to the Auditors and the final
         financial statements prior to adoption by Council.
      i) Review the draft annual report before release and consider the consistency of financial
         information being reported.


6.2       Internal audit

      a) Review and endorse the annual Internal Audit Plan to ensure it aligns with key risks of the
         council and provides adequate audit coverage.
      b) Monitor the extent of reliance on internal audit work by the external auditors to facilitate
         completeness of coverage and the effective use of audit resources.
      c) Review and monitor the quality, effectiveness, and objectivity of internal audit.
      d) Provide advice to the CEO and Council in relation to the appropriateness of Internal Audit
         resourcing and make recommendations if required.
      e) Review internal audit findings and assess the sufficiency of management responses to audit
         recommendations.
      f) Review management’s progress in implementing internal audit actions to address control
         weaknesses and manage risks within acceptable levels as reported in the Audit Actions
         Register.
      g) Periodically review the Internal Audit Policy to ensure appropriate authority, access and
         reporting arrangements are in place.


6.3       Risk management

      a) Review Council’s Enterprise Risk Management Framework for identifying, escalating,
         monitoring, and managing significant risks including fraud.
      b) Be informed about Council’s risk profile as well as the measures management is taking in
         relation to its high rated strategic and operational risks.
      c) Provide oversight of the embedding of a risk culture in policy setting, projects, programs and
         operating activities.
      d) The Committee may identify specific risks for more detailed review and discussion, and
         where appropriate, recommend additional controls
      e) Satisfy itself that insurance arrangements are appropriate and in alignment with Council’s
         Risk Management Framework, where appropriate. This includes the annual review Council’s
         insurance coverage.


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