In 2016, the Local Government Act 1993 was amended to require councils to appoint an audit, risk and improvement committee (ARIC).
The Office of Local Government (OLG) has since been working with councils and other key stakeholders and industry experts to develop the 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, was released in late 2019 on the proposed model. OLG received over 150 submissions from the local government sector and risk management and internal audit practitioners in response to the discussion paper.
OLG has refined the proposed model in response to this feedback. A summary of the changes made to the original model proposed in the discussion paper is provided below.
The new framework will be governed by regulations and Guidelines for risk management and internal audit for local councils in NSW. These will prescribe the minimum standards for each council’s audit, risk and improvement committee, risk management framework and internal audit function.
OLG is seeking the views and feedback of councils and other stakeholders on the draft Guidelines for risk management and internal audit for local councils in NSW prior to finalising them. The draft Guidelines are available below.
Submissions may be made to email@example.com, labelled ‘Draft risk management and internal audit guidelines’ and marked to the attention of OLG’s Council Governance Team.
Submissions should be made before COB 26 November 2021.