Internal audit and risk management
T
he NSW State Government is proposing to make
it compulsory for all councils to have an Audit, Risk and Improvement Committee (ARIC) by 4 June 2022. Draft Guidelines from the NSW Office of Local Government were released in August 2021 with submissions closing on 26 November 2021. Under the proposed Guidelines, councils are required to have a compliant risk management framework and internal audit function by 30 June 2024. To prepare for the introduction of the ARIC, Council formed an internal Audit Risk Executive Committee in 2019 with an independent chairperson, Stephen Horne, to set reporting standards and resourcing requirements. Representatives of the NSW Audit Office were also invited to take part in these meetings. An Internal Audit Plan for the period 2020-2024 was endorsed. Council is now working towards establishing a fully operational ARIC before the deadline of June 2022. Every type of business, both public and private, comes with some form of risk. However, Council recognises the value in mitigating the levels of risk where possible. Effective risk management can lead to better decisionmaking and planning, as well as better identification of opportunities and threats. The approach to risk management will be enterprise-wide and under constant review.
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Hornsby Shire Council
