17 January 2017
Re: Appointment of External Independent Member to the Audit & Risk Management Committee
Thank you for your interest in applying to become and independent member to the Moyne Shire Council Audit & Risk Management Committee.
Background:
The Audit & Risk Management Committee is an advisory committee to Council and consists of the Mayor and former Mayor and two (2) external independent members (one elected as Chair) as well as non-voting members made up from senior staff from within Council.
The Audit & Risk Management Committee is formed under Section 139 of the Local Government Act 1989.
Roles and Responsibilities of the Audit Committee:
The Audit & Risk Management Committee assists the Moyne Shire Council to discharge its responsibilities by undertaking specific tasks delegated to it by Council. The primary goal of the Audit & Risk Management Committee is to provide assurance to the Council in relation to the adequacy of internal controls. This ensures that the business operations of the Council are efficient, resources are employed effectively and financial and management accounting is conducted in a manner that can be relied on for producing accurate and timely reports for external stakeholders including State Government and the public.
The Audit & Risk Management Committee will meet at least four times per annum and will review the internal audit plan for the current financial year.
The Audit & Risk Management Committee’s internal monitoring function is undertaken by a contracted Internal Auditor according to the agreed audit plan. The internal auditor reports to the Audit & Risk Management Committee.
Further details on roles and responsibilities are available in the attached Audit & Risk Management Committee Charter.
More information on the Council Plan and Annual Report can be found on our website
A significant amount of reading, research and preparation for meetings will be necessary.
SELECTION CRITERIA:
To be considered for this role an applicant will need to address the following selection criteria in their application:
- Name, address, contact details;
- Relevant personal details;
- Supporting work history information and details of two referees;
- High levels of financial literacy;
- Accounting and finance qualifications desirable;
- Skills and experience in senior business, financial and legal compliance, and risk management;
- Knowledge of Council Operations and the environment in which it operates;
- Strong communication skills;
- High levels of personal integrity and ethics;
- A covering letter outlining why your participation will benefit the Moyne Shire Council Audit Committee.
Term:
The term of appointment is for four (4) years.
Remuneration:
The successful applicants will be paid per meeting for their attendance. Payment is currently set at:Member $468.00 per meeting / Chair $526.00 per meeting.
Conflicts of Interest:
Any potential conflicts of interest must be disclosed in the application
Confidentiality:
The successful party will be required to sign a confidentiality statement
Enquiries:
Enquiries can be forwarded to Mr Craig Ralston, Manager Finance on (03) 5568 0526 or by email to
Closing Date:
Written applications close at 5pm on Monday 20 February, 2017 and should be addressed to:
Mr Craig Ralston
Manager Finance
Moyne Shire Council
PO Box 51
Port Fairy Vic 3284
And marked ‘Appointment of External Independent Member to Audit & Risk Management Committee’
MOYNE SHIRE AUDIT & RISK MANAGEMENT COMMITTEE CHARTER
- PURPOSE
The primary objective of the Audit & Risk Management Committee[i](the Committee) is to assist the Moyne Shire Council (the Council)in the effective conduct of its responsibilities for financial reporting, management of risk, maintaining a reliable system of internal controls and facilitating ethical development.
- AUTHORITY
The Council has authorised the Committee, within the scope of its duties and responsibilities set out in this charter, to:
(a) Perform activities required to address its responsibilities and makerecommendations to the Council. These activities shall include:
i. The approval and adoption of accounting policies or any change to accounting policies
ii. Oversight of the statutory and financial reporting process
iii. Review matters of accountability and internal control affecting theoperations of the Council
iv. Review the effectiveness of management information systems andother systems on internal control;
(b) Resolve any disagreement between management and the external auditor,external and internal auditor;
(c) In consultation with the Chief Executive Officer, recommend theengagement and termination of the internal auditor (including any co-sourceprovider);
(d) Approve the work of selected professional advisers, and shall include, but not be limited to:
- Approving the scope of work, performance, powers and independence of the internal auditor;
- Noting the scope of work and reports of the external audit function;
(e) Require the attendance of any member of management at meetings of the Committee, as appropriate;
(f) Have unrestricted access to management, employees and information it considers relevant to its responsibilities under this charter.
The Committee is a formally appointed committee of the Council and is responsible to that body. It does not have executive powers or authority to implement actions in areas over which management has responsibility and does not have any delegated financial responsibility. Nor does the Committee have any management functions and is therefore independent of management.
- MEMBERSHIP
3.1Composition
(a)TheCommittee willconsistoffour members, consisting of:
- Mayor
- Former Mayor, when applicable, or another Councillor
- 2 Independent Members
(b)The Chairperson must be one of the Independent Members
(c) The Council selects the Chairperson
(d)Should the Committee Chairperson be absent from a meeting, the remaining Independent Member will be Chairperson
(e)At least oneCommittee membershouldbefinanciallyliterate, preferably a member of Institute of Chartered Accountants, CPA Australia or similar.
3.3Term
(a)The term of appointment for Councillor Members is the term of the Council
(b)The term of appointment for the Independent Members is 4 years, alternating every 2 years to ensure continuity of knowledge.
3.4Appointments
Appointments ofIndependent Members shall be made by Council by way of public notice inviting expressions of interest and be for a term of four years. Where possible, the terms of Independent Members should be arranged to ensure an orderly rotation and overlap of appointment membership, relative to the elected Council’s term.
- MEETINGS
4.1 Attendance
Any person may be invited by the Committee Chairperson to attend meetings of the Committee, but not necessarily for the full duration of the meeting. A standing invitation shall be issued to:
- Chief Executive Officer
- Director Community and Corporate Support
- Director Physical Services
- Director Sustainable Development
- Finance Manager
- Victorian Auditor General’s representative
- Internal Auditor representative
AllCommittee membersareexpectedtoattendeach meeting,inpersonorthrough teleconferenceorvideoconference.
4.2Quorum
3 members.
4.3Meeting Frequency
TheCommittee willmeetatleastfourtimesper annum,withauthoritytoconveneadditionalmeetings,ascircumstancesrequire.
4.4Voting
All recommendations proposed by the Committee will be voted on, with the majority of votes determined if the recommendation is carried or rescinded.
The Committee Chairperson will have the casting vote if there is a tied vote.
4.5Secretariat
(a)The Chief Executive Officer’s nominee will act as secretary to the Committee and will manage the agenda, papers and minutes for the meeting
(b)Meetingagendaswillbepreparedandprovidedatleastone weekinadvanceto members,along withappropriatebriefing materials
(c)Electronic dissemination of papers is an acceptable method of communication
(d)Minuteswillbeprepared
(e)Minutes will be tabled at the following Ordinary meeting of the Council
(f)Confirmed (Signed) Minutes to be forwarded to the Council Records Office following each meeting.
4.6Accountability
(a)Any recommendations arising from a meeting to be presented to the following Ordinary meeting of the Council for decision.
(b)The Committee Chairperson to report to the Council at least annually or as otherwise required by the Council.
- RESPONSIBILITIES
TheCommitteewillcarryoutthefollowingresponsibilities:
5.1FinancialReport
•Review significantaccountingandreportingissues,includingcomplexorunusual transactionsandhighlyjudgmentalareas,andrecentaccounting,professional and regulatorypronouncementsandlegislativechanges,andunderstandtheireffecton thefinancial report.
•Review with managementandtheexternal auditorstheresultsoftheaudit,includingany difficultiesencountered.
•Review theannualfinancial report,andconsiderwhether itiscomplete,consistent withinformationknowntoCommitteemembers, andreflectsappropriate accountingprinciples.
•Review with managementandtheexternal auditorsall mattersrequiredtobe communicatedtotheCommitteeunder theAustralianAuditingStandards.
5.2 InternalControl
• Understandthescopeofinternalandexternalauditors’ reviewofinternal controls overfinancial reporting,andobtainreportsonsignificantfindingsand recommendations,together withmanagement’s responses.
5.3RiskManagement
•Monitor thesystemsandprocessviatheCouncil’sriskprofiletoensurethatmaterial operationalrisks tothe Councilaredealtwithappropriately.
•Monitor theprocessofreview oftheCouncil’s riskprofile.
• Consider theadequacyof actionstakentoensurethatthematerialbusinessriskshave beendealtwithinatimelymanner tomitigateexposures totheCouncil.
•Review reports concerning material violation/breaches of fiduciary duty, if any.
•Review any instance of fraud or possible illegal acts.
5.4 Businesscontinuity
•Monitor processesandpracticesoftheCounciltoensurefor effectivebusinesscontinuity.
5.5 InternalAudit
• Review with managementandtheinternal auditor thecharter,activities,staffing, and organisational structureoftheinternalauditfunction.
• Review and recommendtheannualauditplanfor approvalbytheCouncilandall major changestotheplan.
• Monitorprocessesandpracticestoensurethattheindependenceofauditfunctionis maintained.
•Aspart oftheCommittee’sannualassessment of performance,determinelevel ofsatisfactionwithinternal auditfunctionhavingconsiderationoftheInstituteof InternalAuditors’InternationalStandardsfor theProfessional PracticeofInternal Auditing.
• Monitor thattheinternalauditor’s annualplanislinkedwithandcovers thematerial businessrisks.
•ProvideanopportunityfortheCommitteeto meetwiththeinternal auditor todiscussanymattersthattheCommitteeorinternalauditorbelievesshould bediscussedprivately.
5.6 ExternalAudit
• Notetheexternalauditor’sproposedauditscopeandapproach,includinganyrelianceon internal auditoractivity.
•Provideanopportunityforthe Committeeto meetwiththeexternal auditors,to discussanymattersthattheCommitteeor theexternalauditorsbelieveshould bediscussedprivately.
5.7 Compliance
• Reviewthesystemsandprocessesto monitoreffectivenessofthesystemfor monitoring compliancewithlegislationand regulationsandtheresultsofmanagement’s investigation andfollow-up (includingdisciplinaryaction)of anyinstancesofnon-compliance.
• Keepinformedofthefindingsofanyexaminationsbyregulatoryagencies,andanyauditor(internal orexternal)observationsandmonitor management’s responsetothesefindings.
•Obtainregular reportsfrom managementaboutcompliancematters.
5.8 Reporting responsibilities
- Report regularly to the Council about audit and risk management committee activities, issues and related recommendations through circulation of minutes. Additional updates may be appropriate should issues of concern arise.
• Monitor thatopencommunicationbetweentheinternalauditor,theexternalauditors,and theCounciloccurs.
•Report annuallyto Council,describingtheCommittee’s composition, responsibilitiesandhow theyweredischarged, andanyother information required byregulation,includingapprovalof non-auditservices.
• Consider thefindingsandrecommendationsofrelevantPerformanceAudits undertakenbytheVictorianAuditor-GeneralandtoensuretheCouncilimplements relevantrecommendations.
5.9 Other responsibilities
•PerformotheractivitiesrelatedtothischarterasrequestedbytheCouncil.
•ReviewandassesstheadequacyoftheCommitteecharterannually,requestingCouncilapprovalforproposedchanges, andensureappropriatedisclosureasmight be requiredbylegislationor regulation.
•Confirm annuallythatall responsibilitiesoutlinedinthischarterhavebeencarriedout.
•EvaluatetheCommittee’sperformanceannually.
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[i] The Audit and Risk Management Committee is formed under Section 139 of the Local Government Act 1989.