New Local Government Risk and Audit Framework

Centium recently gave a presentation to the Local Government Internal Auditors Network (LGIAN) meeting on the recently regulated Office of Local Government (OLG) Risk Management and Internal Audit Guidelines and what those changes mean to Council.  These Guidelines have been in the pipeline for several years and are issued under section 23 A of the Local Government Act. 

The Guidelines now give statutory force to three crucial elements that will help to strengthen governance in NSW Local Government:

1. A fully functional and independent Audit, Risk & Improvement Committee (ARIC) that has oversight over the internal audit function.
2. A robust risk management framework to help Council manage their risks in order to achieve their strategic objectives.
3. An independent Internal Audit function.

Councils have until 1 July 2024 to comply, noting that there are some criteria whereby Councils may seek exemptions from the OLG.  Annual attestation requirements from ARICs and the General Manager will be required from 2024-2025.

If you haven’t already started to consider all or some of these elements, now is the time to complete a gap analysis to determine how your Council complies and/or identify components that may need an uplift before July 2024. 

Please see our presentation for a suggested approach or call Penny Corkill, Director Risk & Assurance on 1300 237 810.