Local Government Investigations and Compliance Inspectorate Audit
In January/February 2012, Horsham Rural City Council participated in the Local Government Investigations and Compliance Audit program. The purpose of the audit was to assess Council’s level of compliance with components of the Local Government Act 1989.
The fi nal report highlighted that Council achieved Full Compliance for 23 of the 27 audit topics tested. Areas where full compliance was achieved include: Councillor Code of Conduct, Staff Code of Conduct, Special Meetings, Insurance, Budget, Rates and Charges, Oath of Offi ce, Annual Report, Sale of Land to Recover Unpaid Rates or Charges, Audit Committee, Documents Available for Public Inspection, Assembly of Councillors, Restriction on Power to Sell Land, Restriction on Power to Lease Land, Procurement, Local Laws, Council Plan, Power to Accept Gifts, Employment of Senior Offi cers, Authorised Offi cers, Councillor and Mayoral Allowances, Councillor Reimbursement Policy and Election of Mayor.
Of the remaining four audit topics tested, two achieved Close to Compliance (Primary and Ordinary Returns – Councillors and Nominated Offi cers) and the issues that were raised have now been addressed. The two topics tested where compliance was not achieved were Delegations and Special Committees and an action plan has been developed to address these areas, with progress monitored through Interplan and the Audit Committee.
Liability Mutual Insurance (LMI) Audit
Council’s public liability and professional indemnity insurer Liability Mutual Insurance (LMI) conducts a biennial assessment audit, prior to determining individual public liability insurance premiums for the forthcoming fi nancial year.
employment of a dedicated Organisational Risk Offi cer, improvements in processes across the organisation and the implementation of Council’s Risk Management Strategy.
From audit to audit, the focus of assessment tends to change, with diff erent organisational activities being given weight and emphasis, depending on what particular issues are of most concern to the insurer at the time of the audit. This is usually driven by what claims the Insurer has been exposed to or can potentially see as threatening Local Government.
Broadly, the areas of improvement that have been recommended to Council following the audit include further policy development, and in some cases, review of policy and procedures, which was applicable across a range of areas. Improvements in the development of appropriate systems and records for Council’s inspections and maintenance procedures, including having systems in place to follow up on any defi ciencies was also identifi ed.
Recommendations from the LMI Audit will be tabled at Council’s Risk Management Committee and implemented and monitored through Interplan, with a review prior to the next biennial audit.
Risk Management
Following the appointment of the Organisational Risk Offi cer in October 2011, the Risk Management Committee was reconvened, with the fi rst meeting held on 9 December 2011.
A Risk Management Strategy was developed and accepted by the Executive Management Group in December 2011. The strategy’s main focus for 2012-13 is to review Council’s existing processes and practices to align with the current AS/NZS ISO 31000:2009 Standards. A new Risk Management Plan will also be developed, including a Risk Management Policy and Procedures.
In February 2012, Council appointed Crowe Horwath (Council’s Internal Auditors) to conduct Organisational Strategic Risk Assessment workshops, attended by the Executive Management Group and all Third Level Managers. These workshops were scheduled over one day and identifi ed the potential strategic risks that Council may face, an assessment of the likelihood and how severe the outcomes might be, and development of appropriate management controls in managing/protecting against the risks.
Horsham Rural City Council believes that some risk is acceptable. Risk management is about identifying and treating these risks across the organisation. It’s not typically about stopping activities, rather, it’s doing things with an appropriate level of risk, based on the best available information.
Horsham Annual Report 2011 - 2012
39
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