Budget 2011/12 - Internal Audit function gets down to business
Deputy Mayor and member of the Audit & Risk Management Committee (A&RMC) Cr Peter Blundell said the internal audit was established last year under the A&RMC following new legislative requirements for Level 4 and larger Councils from the State Government.
“The Council has welcomed the greater transparency and oversight with open arms however does have concerns about the cost associated with the provision of this function.
“The reality is, however, it does provide another layer of scrutiny on the accounts and allows even greater reliance on the accuracy of the information that’s being presented in financial statements,” Cr Blundell said.
“We actually established our A&RMC two years ago, well ahead of requirements, and are on track for the Internal Audit to commence work in 2011/12,” he said.
“The advantage for the community from both of those initiatives is that it increases Council’s transparency and accountability and assists Council in identifying risks.”
Council has budgeted $100,000 in 2011/12 to cover the cost of the internal audit function and the Audit & Risk Management Committee, both of which are requirements of the State, but which provide real benefits to Council.
An internal audit report will be presented each year through the A&RMC to Council. This will be minuted, with the activities of the internal audit function and A&RMC also being published each year in the annual report.
The Audit and Risk Management Committee consists of two experienced independent financial professionals and two councillors.
State Government requirements are that any Level 4 or larger Council in Queensland must have an internal audit function.