South Australian Current Acts South Australian Current Acts (a1) This section
applies to a council that has not established a regional audit and risk
committee under section 126A.
(1) A council to which
this section applies must have an audit and risk committee.
(1a) The purpose of an
audit and risk committee established by a council is to provide independent
assurance and advice to the council on accounting, financial management,
internal controls, risk management and governance matters.
(2) The following
provisions apply to the membership of a council audit and risk committee:
(a) the
majority of the members of the committee must be persons who are not members
of any council;
(b) the
members of the committee (when considered as a whole) must have skills,
knowledge and experience relevant to the functions of the committee, including
in financial management, risk management, governance and any other prescribed
matter;
(c) the
membership of the committee—
(i)
may not include an employee of the council (although an
employee may attend a meeting of the committee if appropriate); and
(ii)
may include, or be comprised of, members of another
council audit and risk committee or a regional audit and risk committee; and
(iii)
must otherwise be determined in accordance with the
requirements of the regulations.
(4) The functions of a
council audit and risk committee include—
(a)
reviewing annual financial statements to ensure that they present fairly the
state of affairs of the council; and
(b)
proposing, and providing information relevant to, a review of the council's
strategic management plans or annual business plan; and
(c)
monitoring the responsiveness of the council to recommendations for
improvement based on previous audits and risk assessments, including those
raised by a council’s auditor; and
(d)
proposing, and reviewing, the exercise of powers under section 130A; and
(e)
liaising with the council's auditor in accordance with any requirements
prescribed by the regulations; and
(f)
reviewing the adequacy of the accounting, internal control, reporting and
other financial management systems and practices of the council on a regular
basis; and
(g)
—
(i)
if the council has an internal audit function—
(A) providing oversight of planning and
scoping of the internal audit work plan; and
(B) reviewing and commenting on reports
provided by the person primarily responsible for the internal audit function
at least on a quarterly basis; or
(ii)
if the council does not have an internal audit function,
reviewing and commenting on an annual report provided by the
chief executive officer in relation to the policies and processes adopted by
the council to evaluate and improve the effectiveness of its internal control
practices and procedures; and
(h)
reviewing and evaluating the effectiveness of policies, systems and procedures
established and maintained for the identification, assessment, monitoring,
management and review of strategic, financial and operational risks on a
regular basis; and
(i)
reviewing any report obtained by the council under
section 48(1); and
(j)
performing any other function determined by the council or prescribed by the
regulations.
(5) There must be at
least 1 meeting of a council audit and risk committee in each quarter.
(6) Subject to this
Act, the procedure to be observed at a meeting of a council audit and risk
committee will be—
(a) as
prescribed by regulation; or
(b)
insofar as the procedure is not prescribed by regulation—as determined
by the committee.
(7) Without limiting
subsection (6)(a), regulations under that subsection may provide for
circumstances in which the public may be excluded from attendance at a meeting
of a council audit and risk committee.
(8) A council audit
and risk committee must—
(a)
provide a report to the council after each meeting summarising the work of the
committee during the period preceding the meeting and the outcomes of the
meeting; and
(b)
provide an annual report to the council on the work of the committee during
the period to which the report relates.
(9) A council must
ensure that the annual report of its audit and risk committee is included in
its annual report.