Review Of The Audit And Risk Committee Charter & Review Of The Internal Audit Policy · Attachment 2_Internal Audit Policy_Draft

INTERNAL AUDIT POLICY



    d) Reviewing the means of safeguarding assets and, as appropriate, verifying the
       existence of such assets.
    e) Appraising the economy, efficiency and effectiveness with which resources are
       employed.
    f) Reviewing operations or programs to ascertain whether results are consistent with
       Council’s established objectives and goals and whether the operations or programs
       are being carried out as planned.
    g) Monitoring and evaluating governance processes.
    h) Assessing the adequacy of established systems and procedures.
    i) Conducting special assignments and investigations into any matter or activity affecting
       the probity, interests, and operating efficiency of the organisation.
    j) Reporting significant risk exposures and control issues, including fraud risks,
       governance issues, and other matters needed or requested by the CEO and/or Audit
       and Risk Committee.
    k) The improvement and effectiveness of risk management, legal compliance, internal
       control, and governance systems to provide value and accountability to ratepayers.


4. Internal Audit Model
The internal audit function may be delivered in house or outsourced to a proficient external
provider under a contractual arrangement, independent of Council’s operations. The preferred
model will be determined by Council in consideration of the most effective and efficient option
given Council’s operating environment, business needs, risk profile and appetite, and
resourcing capacity.


5. Annual Internal Audit Plan
In accordance with Section 207 of the Local Government Regulation 2012, Council is required
to prepare an Internal Audit Plan for each financial year stating:
   I.   the way in which Council’s operational risks have been evaluated,
  II.   the most significant operational risks identified from the evaluation, and
 III.   the control measures that Council has adopted, or is to adopt, to manage the most
        significant operational risks.
The development of the Annual Audit Plan and forward program will improve audit planning
and assist in the effective utilisation of audit resources and risk management. The Internal
Audit Plan will be endorsed by Council on the recommendation of the CEO and the Audit and
Risk Committee. A risk-based methodology will be used to identify and prioritise potential audit
areas and progress in implementing the Plan will be reviewed by the Audit and Risk Committee
quarterly. If necessary, management in consultation with the Audit and Risk Committee may
recommend adjustments to the Plan in response to organisational changes that may affect
the organisation’s risk profile or resource requirements.


6. Engagement Planning
The Internal Auditor will document a plan for each engagement/audit. The plan is to be
endorsed by the Chief Executive Officer and will include the audit’s objectives, scope,



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