CoS05
ITEM
N O R T H
S Y
D N E Y
REPORTS 24/10/16
C O U N C I
L
R E P
O R T S
Report to General Manager
Attachments:
1. Minutes 30 September 2016
SUBJECT:
Audit and Risk Committee - 30 September 2016
AUTHOR:
Ian Curry, Manager Governance and Committee Services
ENDORSED BY:
Sandra Moore, Acting Director Corporate Services
EXECUTIVE SUMMARY:
This report presents the recommendations of the last meeting of the Audit and Risk
Committee held on 30 September 2016, for Council adoption. The minutes are attached for
information.
FINANCIAL IMPLICATIONS:
Nil
Local Government Act 1993: Section 23A Guidelines - Council Decision Making During
Merger Proposal Period
The Guidelines have been considered in the preparation of this report and are not applicable.
RECOMMENDATION:
1. THAT the minutes of the Audit and Risk Committee held 30 September 2016 be received.
Report of Ian Curry, Manager Governance and Committee Services
Re: Audit and Risk Committee - 30 September 2016
(2)
LINK TO DELIVERY PROGRAM
The relationship with the Delivery Program is as follows:
Direction:
5. Our Civic Leadership
Outcome:
5.3 Council is ethical, open, accountable and transparent in its decision
making
BACKGROUND
In accordance with Council’s Code of Meeting Principles and Practices:
Clause 50.6 - the minutes of a Committee meeting may only be confirmed and adopted by
resolution of that Committee, passed at a subsequent meeting of that Committee.
Clause 50.7 - the recommendations arising at Committee meetings are to be submitted to the
next available Council meeting for adoption.
CONSULTATION REQUIREMENTS
Community engagement is not required.
SUSTAINABILITY STATEMENT
The sustainability implications are of a minor nature and as such did not warrant a detailed
assessment.
DETAIL
This report presents the recommendations of the last meeting of the Audit and Risk
Committee held on 30 September 2016, for Council adoption. The minutes are attached for
information.
ATTACHMENT TO CoS05 - 24/10/16
Page 3
Minute Book Page No 11
NORTH SYDNEY COUNCIL
REPORT OF AUDIT & RISK COMMITTEE
SUBJECT:
PROCEEDINGS OF COMMITTEE AT MEETING HELD IN THE SUPPER
ROOM AT THE COUNCIL CHAMBERS, NORTH SYDNEY, ON 30
SEPTEMBER 2016 AT 10:00AM.
PRESENT
Ron Switzer - Independent Chair
John Gordon - Independent Member
Councillor Veronique Marchandeau
Council Staff:
Ross McCreanor
Sandra Moore
Adrian Panuccio
Darren Goode
Jon Paul Agnew
Gary Stepanian
Daniel Peacock
Ian Curry
External Staff
Michael Quirk
Kris Pechimuthoo
Visitors:
Acting General Manager
Acting Director Corporate Services
Chief Operating Officer
Accounting Services Manager
Manager Risk
Risk Officer
Business & Asset Accounting Officer
Manager Governance & Committee Services (Minutes)
Head of Internal Audit North Shore Councils
Internal Audit North Shore Councils
Nil
Apologies were received from Garry Ross, Manager Financial Services
19.
Declarations of Interest – John Gordon advised that he was now a member of the
Audit Committees for Northern Beaches Council and Georges River Council
20.
Minutes
The Minutes of the previous meeting held on 17 June 2016, copies of which had been
previously circulated, were taken as read and confirmed.
It was noted that there had not been a quorum at this meeting and the Minutes were a
record of the meeting only.
Voting was unanimous.
This is Page No 11 of the Minutes of the Audit & Risk Committee Meeting of the North
Sydney Council held on 30 September 2016.
ATTACHMENT TO CoS05 - 24/10/16
AUDIT & RISK COMMITTEE - 30/09/16
21.
Page 4
Page No 12
AR01: Status of Internal Audit Work
Report of Michael Quirk, Head of Internal Audit North Shore Councils
Internal Audit Resourcing
The Internal Audit Unit has now been established as a shared service across seven
Councils and is comprised of three full-time and one part-time staff, providing a
nominal 9.7 staff days per month (0.49 FTE) of audit services to North Sydney
Council.
The Internal Audit Program
The interim Internal Audit Program for 2016/2017 was approved at the meeting of the
Audit Committee on 1 June 2016.
Status of Audits
A report on the Audit of Leave and Attendance has been completed and is subject to a
separate report on the agenda.
Implementation of Internal Audit Recommendations
A report on the implementation of audit recommendations has been updated and
included in a separate report on the agenda.
Audit and Risk Committee Annual Agenda
The adopted Annual Agenda for the Audit and Risk Committee was last updated on
15 November 2013. A copy of the current agenda is attached for information.
Recommending:
1. THAT the Report on the Status of Internal Audit Work be received.
Resolved to Recommend:
1. THAT the Report on the Status of Internal Audit Work be received, noting
amendments to the date of the last meeting being corrected and the word “biannually” in the attachment being changed to “biennially”.
Voting was unanimous
22.
AR02: Audit of Leave and Attendance
Report of Michael Quirk, Head of Internal Audit North Shore Councils
In accordance with the approved 2015-16 Internal Audit Program, an audit of Leave
and Attendance processes and controls has been completed. A copy of the Audit
Report in a new reporting format is attached. The Audit Report has been reviewed by
relevant Council staff, and the recommendation in the report has been accepted.
Recommending:
1. THAT the Internal Audit Report of Leave and Attendance be received.
Resolved to Recommend:
1. THAT the Internal Audit Report of Leave and Attendance be received.
Voting was unanimous
23.
AR03: Implementation Schedule of Approved Audit Recommendations
Report of Michael Quirk, Head of Internal Audit North Shore Councils
Summary of Status of Recommendations
The following schedule provides updated information on the status of implementation
of internal audit recommendations. This format enables comparison with the
previous period report and shows a consistent level of management activity in
addressing open recommendations.
This is Page No 12 of the Minutes of the Audit & Risk Committee Meeting of the North
Sydney Council held on 30 September 2016.
ATTACHMENT TO CoS05 - 24/10/16
AUDIT & RISK COMMITTEE - 30/09/16
Page 5
Page No 13
Details of current open recommendations, together with those rejected and closed in
the current period (highlighted), is shown in the attached spreadsheet.
Recommending:
1. THAT the Implementation Schedule of Approved Audit Recommendations report
be received.
Resolved to Recommend:
1. THAT the Implementation Schedule of Approved Audit Recommendations report
be received.
Voting was unanimous
24.
AR04: Enterprise Risk Management update
Report of Jon Paul Agnew, Risk Manager
This report provides an update on Council’s Enterprise Risk Management (ERM)
programme.
Recommending:
1. THAT the Enterprise Risk Management report be received.
Resolved to Recommend:
1. THAT the Enterprise Risk Management report be received.
Voting was unanimous
25.
AR05: 2016 Draft Audited Financial Statements
Report of Garry Ross, Manager Financial Services
As per provision 6.6 of the North Sydney Council Audit & Risk Committee Charter,
the roles and responsibilities of the Committee in relation to external audit, requires
an independent assessment and feed back on the financial statements.
Recommending:
1. THAT the 2016 Draft Audited Financial Statements be considered by the
Committee.
Resolved to Recommend:
THAT the 2016 Draft Audited Financial Statements be noted by the Committee. The
Committee made a number of disclosure suggestions for consideration by
Management and a further draft is to be circulated for endorsement at the next
Committee meeting.
Voting was unanimous
The Independent members of the Committee have been invited to attend the
Councillor Workshop Finance on 8 November 2016 where the External Auditor will
present their report on the financial statements.
26.
General Business
Michael Quirk advised that he was unable to attend the 4 November Committee
meeting but Kris Pechimuthoo would attend.
The meeting concluded at 12.43pm.
This is Page No 13 of the Minutes of the Audit & Risk Committee Meeting of the North
Sydney Council held on 30 September 2016.
ATTACHMENT TO CoS05 - 24/10/16
AUDIT & RISK COMMITTEE - 30/09/16
Page 6
Page No 14
Next meeting 4 November 2016 at 10am
This is Page No 14 of the Minutes of the Audit & Risk Committee Meeting of the North
Sydney Council held on 30 September 2016.