Risk Management, Audit and Internal Controls
Internal audit is an essential component of a good governance framework for all councils. At both a management and councillor level, councils must strive to ensure there is a risk management culture.
Internal audit’s role is primarily one of providing independent assurance over the internal controls and risk management framework of the council. Management has primary day-to-day responsibility for the design, implementation, and operation of internal controls.
Internal audit has no direct involvement in day-to-day operations, but it has a direct functional relationship with the General Manager and the council. An effective internal audit function should evaluate and monitor the adequacy and effectiveness of the internal control framework as a minimum.
Risk management is also an essential part of a council’s management and internal control framework. It looks at what risks the council may face and the best way to address these risks. Assessment and management of risk is central to determining internal audit activities.
Links
Fraud and Corruption Prevention
Local Government Performance Audits
Risk Management and Internal Audit Framework for Local Councils in NSW
Promoting Better Practice
It is timely to revisit this and we have commenced a review of the program, including opportunities to update the process to take advantage of modern technology.
Promoting better practice should help councils to identify, share and promote better practice with an emphasis on:
- strategic community planning
- efficient and effective service delivery
- quality governance and ethical conduct financial sustainability
- promote strong relationships within the sector
We will keep you informed about the review process for the promoting Better Practice Program as more information comes to hand. In the meantime, if you are interested in reading any of the previous Better Practice Program Reports please email olg@olg.nsw.gov.au and request a list of available reports.
Links
Model Code of Conduct
The Model Code of Conduct sets the minimum standards of conduct for council officials. It is prescribed by regulation to assist council officials to:
- understand and comply with the standards of conduct that are expected of them
- enable them to fulfil their statutory duty to act honestly and exercise a reasonable degree of care and diligence (section 439)
- act in a way that enhances public confidence in local government.
Links
Model Code of Conduct and Procedures 2018
Model Code of Meeting Practice
The Model Code of Meeting Practice for Local Councils in NSW (the Model Meeting Code) is made under section 360 of the Local Government Act 1993 (the Act) and the Local Government (General) Regulation 2005 (the Regulation).
This code applies to all meetings of councils and committees of councils of which all the members are councillors (committees of council). Council committees whose members include persons other than councillors may adopt their own rules for meetings unless the council determines otherwise.
Councils must adopt a code of meeting practice that incorporates the mandatory provisions of the Model Meeting Code.
Links
Councillor Induction and Professional Development
The Councillor Induction and Professional Development Guidelines have been issued under section 23A of the Local Government Act 1993 to assist general managers and council staff to develop, deliver, evaluate and report on the induction and professional development programs they are required to provide mayors and councillors under the Local Government (General) Regulation 2005. Councils are required to consider the Guidelines when undertaking these activities. These Guidelines also apply to county councils, and where relevant, joint organisations.
The Guidelines have also been developed to ensure mayors and councillors are aware of the knowledge, skills and personal attributes expected of them in their civic roles under the Act, and of the support their council should be providing to ensure they are able to effectively fulfil their roles.
Links
Councillor Induction and Professional Development Guidelines
Standard Contracts of Employment
These contracts represent the standard documentation that general managers must use when appointing senior staff. The requirements ensure consistency and certainty in employment relationships at the management level in local government and reflect community expectations by providing greater transparency and accountability. They also ensure appropriate flexibility by allowing certain contractual matters to be left to the parties to negotiate, namely:
- duration of the contract (within legislative limits)
- structure and level of the remuneration package and
- performance-based requirements.
Links
Standard Contracts of Employment for General Managers and Senior Staff