372d6357-5fed-42bf-b7aa-4845c9aea086

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                25 FEBRUARY 2014


RECOMMENDATION

That Council note the report by the Chief of Staff to the Planning and Organisation Committee
dated 25 February 2014 and:
A.     Authorise the Chief Executive Officer to seek quotations for the provision of an internal
       audit service;
B.     Establish the Audit Committee and endorse the Mayor and Councillor **** as the Councillor
       representatives on the Committee; and
C.     Authorise the Chief Executive Officer to invite applications from suitably qualified applicants
       for the two external members of the Audit Committee.



BACKGROUND INFORMATION

Section 105 of the Act provides that each local government must establish an effective and
efficient internal audit function, and Section 207 of the Regulation details the internal auditing and
reporting requirements which must be fulfilled. This includes the preparation of an annual internal
audit plan that addresses operational risks and control measures adopted by Council as well as
the reports and documentation required to be provided to the Audit Committee.

Section 209 of the Act provides that a “large” local government must establish an Audit
Committee. A large local government is defined as “a local government belonging to a
remuneration category of 3 or higher mentioned in the remuneration schedule”. Noosa Council is
currently a category 4 council.

PREVIOUS COUNCIL CONSIDERATION

Nil.

REPORT

The Local Government Act 2009 (the Act) provides for the establishment of an Audit Committee
and an internal audit function.

Internal Audit

Council does not have a dedicated officer to perform the internal audit function. As such it is
proposed that Council engage in a process to invite and evaluate offers from suitably qualified
audit firms to act as Council’s internal audit function, risk adviser and representative. It is
common practice with smaller councils such as Bundaberg Regional Council to ‘buy in’ audit
expertise.

It will be necessary that the CEO be authorised to prepare the necessary tendering
documentation for the provision of the internal audit and risk service for a two year period 2014 -
2016 (i.e. the current term of Council) and that an evaluation team made up of the CEO, Director
Organisational Services, Mayor and the Chairman of the Audit Committee be responsible for
assessing and evaluating quotations.




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