Weddin Shire council has voted against taking action that would enable it to form an internal audit committee.
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Mayor Mark Liebich moved a mayoral minute at an extraordinary meeting of the Council last week recommending guidelines be developed to allow appointment of an audit, risk and improvement committee (ARIC) to sort out current issues.
The Grenfell Record understands the Mayoral minute was defeated.
The Record also understands five councillors voted against and four voted in favour of the move.
All councils have until 2024 to establish their risk management framework and internal audit function and until 2027 to ensure ARIC membership complies with the Guidelines, allowing councils to transition into the new membership requirements as and when membership of existing ARICs expire.
In 2016, the Local Government Act 1993 was amended to require councils to appoint an audit, risk and improvement committee (ARIC).
Some Councils have already formed ARICs.
Since 2016 the Office of Local Government (OLG) has been working with councils and other key stakeholders and industry experts to develop the framework that will support the operation of ARICs and the establishment of a risk management and internal audit function in each council.
A discussion paper, A New Risk Management and Internal Audit Framework for Local Councils in NSW, was released in late 2019 on the proposed model.
OLG has refined the proposed model in response to this feedback.
The new framework will be governed by regulations and Guidelines for risk management and internal audit for local councils in NSW.
These will prescribe the minimum standards for each council's audit, risk and improvement committee, risk management framework and internal audit function.