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Audit and Risk Committee

The Audit and Risk Committee is appointed by the City of Perth to oversee the activities of the Council’s external and internal auditors.

Members

  • Deputy Chair Commissioner Gaye McMath (Presiding Member)
  • Chair Commissioner Andrew Hammond
  • Commissioner Len Kosova
  • Mr Robert Maurich (Term expiry 26 August 2021)

Terms of reference: [Adopted OCM 28/08/18]

  1. The Audit and Risk Committee’s role, in accordance with Regulation 16 of the Local Government (Audit) Regulations 1996, is to:
    1. Guide and assist the local government in carrying out:
      1. its functions under Part 6 of the Act;
      2. its functions relating to other audits and other matters related to financial management; and
    2. Functions in relation to audits conducted under Part 7 of the Act. review a report given to it by the CEO under regulation 17(3) (the CEO’s report) and is to —
      1. report to the council the results of that review; and
      2. give a copy of the CEO’s report to the Council.
    3. Monitor and advise the CEO when the CEO is carrying out functions in relation to a review under —
      1. regulation 17(1); and
      2. the Local Government (Financial Management) Regulations 1996 regulation 5(2)(c);
    4. Support the auditor of the local government to conduct an audit and carry out the auditor’s other duties under the Act in respect of the local government;
    5. Oversee the implementation of any action that the local government —
      1. is required to take by section 7.12A(3); and
      2. has stated it has taken or intends to take in a report prepared under section 7.12A(4)(a); and
      3. has accepted should be taken following receipt of a report of a review conducted under regulation 17(1); and
      4. has accepted should be taken following receipt of a report of a review conducted under the Local Government (Financial Management) Regulations 1996 regulation 5(2)(c);
    6. Perform any other function conferred on the audit committee by these regulations or another written law.
  2. The Committee may provide guidance and assistance to the local government regarding:
    1. Other matters to be audited.
    2. The scope of audits.
    3. Financial, risk and compliance management functions as prescribed in the Local Government Act 1995.
    4. Other matters specified in these Terms of Reference.
  3. The Committee may resolve to request the Chief Executive Officer (CEO) to provide any information or make arrangements to provide independent expert advice, as appropriate and required by the Committee in order to fulfil its duties and responsibilities.
  4. The Committee is to review and make recommendations to the Council regarding:
    1. Financial Management
      i. the annual Financial Statements with a view to being satisfied as to their accuracy and timeliness and the inclusion of prescribed disclosures and information;
      ii. changes in accounting practices, policies and material changes in accounting treatment, providing advice on the appropriateness of implementation strategies; and
      iii. the City’s financial status and performance.
    2. Risk Management
      i. the City’s risk management strategies and policies;
      ii. the adequacy of the City’s risk management systems and practices; and 
      iii. the management of strategic risks, identifying as appropriate, specific risks for more detailed review and response.
    3. Internal Controls
      i. the standard and effectiveness of the City’s corporate governance and ethical considerations; 
      ii. the integrity, adequacy and effectiveness of the City’s financial and administration policies, systems and controls in providing financial and governance information which:
      is accurate and reliable;
      complies with legislative obligations and requirements; and
      minimises the risk of error, fraud, misconduct or corruption; and
      iii. the efficiency and effectiveness on achievement of objectives.
    4. Legislative Compliance
      i. the integrity, adequacy and effectiveness of the City’s systems and controls for legislative compliance;
      ii. the level of compliance with legislative obligations as well as the City’s policies; 
      iii. the CEO’s report on the review of the City’s legislative Compliance systems, at least once triennially; and
      iv. the annual statutory Compliance Audit.
    5. Internal and External Audit Planning and Reporting
      i. the integrity, adequacy and effectiveness of the City’s Internal Audit Plan and External Audit Plan;
      ii. reports, findings and recommendations arising from Internal and External Audits;
      iii. the audit of the City’s Annual financial statements; 
      iv. the integrity, adequacy and effectiveness of the management response and any actions proposed to be taken to address issues raised by the Internal or External Auditor; and 
      v. the oversight and monitoring of implementation of agreed actions.