CHARTER CITY OF UNLEY AUDIT COMMITTEE 1. Objective The objective by lindash

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CHARTER CITY OF UNLEY AUDIT COMMITTEE 1. Objective The objective ...

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									                            CHARTER
                 CITY OF UNLEY AUDIT COMMITTEE


1.        Objective

The objective of the Audit Committee is to oversee the City’s risk
management, and audit initiatives and to act as a source of advice to the
Council and CEO in relation to these matters. This Charter is to be read in
conjunction with the Committee’s Terms of Reference and with Chapter 8 of
the Local Government Act 1999 and the City’s Risk Management Policy and
Procedures.


2.        Authority

The Committee is appointed by the Council as a Committee and has the
authority to require any information it sees as relevant to its activities from
any Councillor, executive, staff member, contractor or consultant, each of
whom are required to respond to such enquiries. The Committee is
authorised to obtain independent professional advice where considered
necessary following consultation with the CEO.


3.        Responsibilities of the Committee

The responsibilities of the Committee are to:

       In General
•      Examine any matters referred to the Committee and cause the
       undertaking of any other investigations considered appropriate.
•      To develop a program of audits to ensure the active
       management of risk and to demonstrate transparency and
       financial prudence
•      Receive Internal and Annual External Audit reports and monitor
       the implementation of corrective actions.
•      Support the development and promulgation of policies related
       to relevant legislation in particular the Whistleblowers
       Protection Act.

       In regard to External Audit
•      Support and provide advice to the Council in the appointment,
       evaluation and removal of the External Auditor.
•      Consider the coordination of any audit activities undertaken in
       order to ensure maximum coverage of review and avoid
       duplication.
•      Review audit results and managements’ response to external
       audit reports.
•      Ensure that the External Audit concerns itself with the matters
       contained within part 3 and part 4 of Chapter 8 of the Local
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                                                            Charter – Audit Committee
    Government Act.
•   Be satisfied with the independence, scope and effectiveness of
    the external audit.
•   Ensure that the Auditor is provided with open and transparent
    access to officers, Councillors and information so as to enable
    the auditor to effectively conduct the task consistent with
    Chapter 8 of the Local Government Act.

    In regard to Internal Audit (Efficiency and Effectiveness Audits)
•   Support and provide advice in the appointment, evaluation and
    removal of the Internal Auditor or independent, suitably qualified
    person to undertake Efficiency and Effectiveness Audits.
•   Ensure that Internal Audits shall operate at a strategic level and
    concern themselves with the extent to which policy objectives
    have been satisfied, that is how effective the policy has been
    and how efficiently it has been implemented.
•   Discuss and approve the Internal Audit Plan and consider
    resourcing regarding the staffing and budget requirements.
•   Consider the coordination of the internal and external audit
    programs. The purpose of coordinating these efforts is to
    assure efficiency, reduce redundancy and use audit resources
    effectively.
•   Receive internal audit reports, consider recommendations and
    monitor the implementation of agreed corrective actions.
•   Be satisfied that the City has appropriate fraud and corruption
    prevention strategies and adequate processes are in place to
    identify and address any fraudulent or corrupt activities.
•   Be satisfied with the independence, scope and effectiveness of
    internal audit and persons undertaking such work.
•   Authorise special investigations (eg. fraud, misconduct and
    maladministration).

    In regard to Risk Management
•   Be satisfied that the City’s Risk Management Policy and
    Procedures are being applied, monitor the City’s risk profile
    including establishing and maintaining a register of key risks,
    tolerance levels and mitigation strategies.
•   Assess management systems and policies that deal with the
    adequacy and effectiveness of risk management and internal
    control practices.
•   Be aware of actual/proposed changes in the City’s operating
    environment and the potential impact they may have on the
    City’s risk profile.
•   Monitor the City’s ethical environment and the appropriateness
    of the Code of Conduct, policies and operational practices.
•   Be aware of the City’s Risk Register and that adequate actions
    are in place to mitigate risk to a tolerance acceptable to the
    City.



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                                                     Charter – Audit Committee
4.        Appointment and Removal of the City’s External Auditor

Council appoints the External Auditor for up to a five year term under the
provisions of the Local Government Act 1999. The Audit Committee will
provide advice to Council for its consideration in relation to the appointment
and removal of the External Auditor.

The role of the External Auditor is to audit the City’s financial statements
and provide an opinion on their accuracy, compliance with accounting
standards and to note any particular matters arising from the audit.


5.        Appointment and Removal of the City’s Internal Auditor

The Internal Auditor or independent, suitably qualified person, which may be
a person or firm appointed for a fixed term (maximum 5 years) or whom
may be engaged per commission / assignment. Authority to appoint rests
with the Audit Committee under delegation within the confines of the
allocated budget.

The Audit Committee make recommendations to Council in regard to the
conduct of any investigation audit to be undertaken.

The Audit Committee make recommendations to Council in regard to any
need to remove the Internal Auditor from a commission or assignment.

The role of the Internal Auditor shall be separate from that of the External
Auditor to as far as possible, maintain independence.


6.        Membership

The Committee will comprise two appointments of the Council and three
independent positions. One of the independent positions shall be appointed
by Council as the Chair for the Committee. A deputy chair shall be
appointed from one of the other four members.

Only members of the committee are entitled to vote in committee meetings.
Unless otherwise required by the Act not to vote, each member must vote
on every matter that is before the committee for decision.

Executives and senior managers as relevant shall attend Committee
meetings as observers and/or be responsible for preparing papers for the
Committee.

In considering appointments to the Committee it is highly desirable that
Committee members possess the following qualities between them:

•      Financial reporting/auditing background
•      Risk Management
•      Governance
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                                                           Charter – Audit Committee
•     Inquisitiveness
•     Knowledge of Council business and/or public sector
      administration.

Committee members are to declare any interests in accordance with the
declaration of interest clauses within the Local Government Act 1999.
Independence means not a supplier/receiver of goods and services to/from
the City or its related bodies, either personally, or by direct relatives or
entities which members own or have a controlling interest in.

Non-compliance with these independence standards must be brought to the
attention of the Committee at the time of nomination to the Committee and
as they occur once a Committee Member.


7.       Quorum

A quorum for the Committee consists of at least 50% of the number of
committee members (ignoring any fraction) plus one. Meetings are to be
rescheduled if there is no quorum.


8.       Secretarial and Meeting Procedure

Secretarial services will be provided by the Council.

Meetings shall be held in accordance with meeting and confidentiality
provisions of the Local Government Act as appropriate.


9.       Meetings

The Committee will meet up to four times a year at appropriate times in the
reporting and audit cycle and otherwise as required. One of the meetings
will be a workshop forum to discuss the Cities risk profile and develop the
External and Internal audit plans.

The Chairperson is to call a Committee meeting if requested by any
Committee Member or either of the Auditors.


10.      Self Assessment

The Committee shall conduct a self assessment to determine its
effectiveness every 12 months, and report the outcome to Council. The
CEO is to assist the Committee such that it may perform the review.

This Charter is to be reviewed as part of the self-assessment procedure,
and approved by Council.



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                                                        Charter – Audit Committee

								
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