The Office of Local Government (OLG) has just
released a discussion paper on the much-awaited Risk Management & Internal
Audit Framework for Councils. The proposed framework is largely modelled on the
Public Sector Framework (TPP 15-03) and has very similar requirements.
What’s new or changing?
- The Local Government Act 1993 was amended in August 2016 to require each council and joint organisation in NSW to appoint an Audit, Risk and Improvement Committee (ARIC). This requirement will take effect from March 2021 at the earliest.
- OLG has developed a draft Risk Management and Internal Audit Framework to support and inform the operations of ARICs. The proposed framework is based on international standards and the experience of Australian and NSW Government public sector agencies who have already implemented risk management and internal audit but has been adapted to reflect the unique needs and structure of NSW councils and joint organisations.
- The proposed framework has been developed in consultation with NSW Treasury, the NSW Audit Office, the then Department of Finance, Services and Innovation, the Institute of Internal Auditors and the Local Government Internal Auditors Network.
- OLG is now seeking feedback on the proposed framework from the local government sector. To this end, it has issued a discussion paper, “A New Risk Management and Internal Audit Framework for Local Councils in NSW” which sets out the proposed framework in detail and a “snapshot” guide that summarises its key elements.
- The discussion paper and “snapshot” guide are available on OLG’s website at www.olg.nsw.gov.au
What this will mean for Councils
- Councils and other stakeholders are invited to
provide feedback submissions on the discussion paper.
- Submissions may be made by email to
olg@olg.nsw.gov.au.
- Submissions should be labelled “Internal Audit
Consultation” and marked to the attention of OLG’s Council Governance Team.
- Submissions should be made before 31 December
2019.
Centium can work with Councils to help establish and implement the framework for Risk Management and Internal Audit. Centium has extensive experience in this regard and can bring together both our vast Local Government and State Government experience. We can also assist in drafting feedback submissions to the Discussion paper.
Download the New Risk Management and Internal Audit Framework for Local Councils in NSW Discussion Paper
For more information you can contact us.
