In 2016, the NSW Government made it a requirement under the Local Government Act 1993 that each council have an Audit, Risk and Improvement Committee (ARIC). This requirement will take effect from March 2021.
The Government has since been working with key stakeholders and industry experts to develop the regulatory framework that will support the operation of ARICs, and the establishment of a risk management and internal audit function in each council.
A discussion paper, A New Risk Management and Internal Audit Framework for Local Councils in NSW, has been released which details the proposed new framework. A ‘Snapshot Guide’ which provides a high-level summary of the proposed changes is also available.
All councils, members of the public and risk management and internal audit practitioners were invited to submit their feedback and ideas on the proposed model so we can ensure NSW has in place the most robust and effective risk management and internal audit framework for local government possible.
Feedback received will be considered when finalising the new risk management and internal audit framework.
- A new risk management and internal audit framework for local councils in NSW – Discussion Paper – September 2019 – PDF
- A new risk management and internal audit framework for local councils in NSW – Snapshot Guide – September 2019 – PDF
- Council Circular 19-20 – A new internal audit and risk management framework for local councils in NSW – release of discussion paper