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




The Committee will be composed of four members, including the Chairperson, as follows:
    Two Councillors appointed by Council on a rotational basis with a two-year term.
    Two independent external members (including the Chairperson) will be selected following an
      ITQ process and appointed by Council to ensure impartiality and an appropriate mix of skills.
      At least one member will have significant experience and skills in finance matters.1 When
      selecting an external independent member, Council must have regard to that person having
      a strong business, accounting, legal or similar background to provide additional expertise to
      Council.
    The term of an independent external member shall be a minimum of three years and a
      maximum of 6 years (in accordance with Queensland Treasury Guidelines).

A phased approach to the rotation of independent Committee members is preferred to preserve an
appropriate level of knowledge and expertise on the Committee and the Council may wish to have
new members join the Committee before existing members depart to lessen the loss of an
experienced member. External members including the Chairperson will be selected by inviting
expressions of interest.

The Chairperson will be appointed by Council for an initial period of no longer than three years, with
any extension of a further three-year term based on performance, giving a maximum of six years of
service (Noting the Audit Committee Guidelines issued by Queensland Treasury). The Chairperson
will possess sound communication and strong leadership skills. In addition to overseeing committee
meetings, the Chairperson will:
      Regularly consult with, and report to, the CEO to ensure the Committee’s agenda, style and
        discussion are providing the level of assurance Council needs and expects.
      Assist in developing new members as required.
      Review Committee agendas and minutes.
      Undertake an annual assessment of the Committee’s performance and deliver an annual
        presentation to council.

Collectively, the Committee shall possess:
     A thorough understanding of the core activities of Council and the environment in which it
        operates, including its strengths, weaknesses, opportunities and threats.
     A commitment to the continual improvement of the outputs that the organisation delivers and
        that contribute to the achievement of Council’s priorities.
     Strong business acumen and management skills.
     A high level of understanding of best practice internal control, risk management and
        corporate governance.
     A sound knowledge of information systems and emerging technology.
     A high level of competency in financial and operational reporting and the ability to analyse
        complex financial reports including Council’s Operating Statement, Statement of Financial
        Position, Cash Flow Statement and Notes to and forming part of those statements.
     An inquiring attitude, objectivity, and independence.
     A strong, demonstrated sense of probity and ethical conduct.

11 RELATIONSHIPS

11.1 Internal audit

The Committee will act as a forum for internal audit and oversight of its planning, monitoring, and
reporting processes. This process will form part of Council’s governance processes to ensure that
Council’s internal audit function operates effectively, efficiently, and economically. Within this


1
    Local Government Regulation 2012 (QLD) s 210(1)(b)(ii)

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