Date Adopted: 30 September 2021

Last Review: 24 May 2024

Next Review Date: May 2025

1. Establishment

The Central Desert Regional Council (Council) Audit Committee (the Committee) is established as an Advisory Committee to the Council in accordance with the Local Government Act, 2019 and the Local Government (General) Regulations 2021.

2. Objective

The Audit Committee is an Advisory Committee whose responsibility it is to:

1. Monitor and review the integrity of the Council’s financial management;
2. Monitor and review internal controls; and
3. Make recommendations to Council about any matters the committee considers needs Council’s consideration as a result of its functions under paragraph (a) or (b)

3. Authority

With consideration of legal and confidentiality implications the Committee is authorised, within the capacity of its role and responsibilities, to:

1. Obtain any information it requires from any employee and/or external party.
2. Discuss any matters with the external auditor, or other external parties.
3. Obtain external legal or other professional advice (subject to Council’s approval), as considered necessary to meet its responsibilities.

The Committee is subject to control and direction by the Council.

4. Membership

The Committee shall consist of:

• A minimum of three Councillors, one of whom will be the President or Deputy President.
• A minimum of one external member, with preference for one of whom to be either a CPA or a CA.
• The Chairman of the Committee shall be an external member.
• The Chief Executive Officer and other relevant staff may attend Committee meetings.

5. Appointment and Termination

The Council shall appoint Councillors to this Committee for the term of the Council.

• A newly elected Council will appoint new members from its ranks for the Councillor positions.
• External members are appointed for a two year term, and their term may overlap Council terms.
• The Council may terminate the appointment of a member should a member miss two consecutive meetings without an accepted apology.
• A Committee member will cease to be a member if the member provides to the Council a written notice of resignation.

6. Voting Rights

• All members of the Committee have equal voting rights.
• Where the result is undecided, the Chairperson has the casting vote.

7. Key Responsibilities

The Committee will undertake the following functions:

• Monitor strategic risk management and the adequacy of the internal control policies (such as conflict of interest, code of conduct and fraud policy), practices and procedures established to manage identified risk
• Oversee the internal audit function including development of audit plans with reference to the Council’s risk assessment, review of all internal audit reports, the monitoring of audit outcomes and the implementation of recommendations.
• Where appropriate, invite the internal auditor to attend the Committee meetings to discuss internal audit report findings.
• Review quality of annual financial statements and the Annual Report.
• Invite the external auditor to attend the Committee meeting where the Audited Financial Statements are discussed.
• Review management’s responses to external audit recommendations and monitor implementation of the agreed recommendations.
• Assess the adequacy of audit scope and coverage.
• Review the monthly financial reports and monitor progress against the budget.
• Review compliance with legislation, contracts, standards and best practice guideline, monitoring changes in accounting and reporting requirements.
• Provide oversight and monitoring of the CEO’s Fraud Protection Plan.
• Review the Code of Conduct.

8. Meetings

The Committee shall meet a total of four times a year to:

• Review the unaudited financial statements and undertake other matters the Committee is responsible for (June/July).
• Meet with the external auditors and discuss findings, review the draft audited financial statements and undertake other matters the Committee is responsible for (September/October).
• Review financial statements against budget, monitor the implementation of any audit recommendations and undertake other matters the Committee is responsible for (December).
• Review the Council’s draft budget for the following year and undertake other matters the Committee is responsible for (Mar/April).
• Meeting dates are as defined in the Council Year Planner and approved by Council. Agenda items will be agreed to by the Committee each year and will address all of the Committee’s responsibilities as detailed.
• Notice of each meeting confirming the venue, date and time, together with an agenda, shall be forwarded to all members of the Committee and observers, no later than three days before the date of the meeting.

9. Attending a Meeting

• Members shall attend the meeting in person or via audio or audio-visual conferencing system.

10. Quorum

• A quorum will consist of a majority of Committee Members and must include the Chair. A member of the Audit Committee may not be represented by a proxy (substitute) during a meeting.

11. Proxies

• In order to ensure continuity and a useful level of knowledge and experience, the Committee members are not permitted to send proxies to the meeting. The exception is the President, who may act as proxy in the absence of the Chair.

12. Reporting

The Committee will regularly report on its operation and activities, including:

• Minutes of its meeting which may include a summary of the key issues arising from each meeting of the Committee and any recommendations. Minutes shall be circulated within five days after a meeting to all members of the Committee and will (as appropriate) be made available to the public within ten business days after the meeting on the Council’s website.
• Annually, an overall assessment of the Council’s risk, control and compliance framework, together with a summary of the work the Committee performed in conducting its responsibilities during the preceding year.

13. Committee Performance and Review

• The Chair of the Committee and the CEO will initiate a review of the performance of the Committee at least once every two years.
• The review will be on an internal assessment basis with appropriate input from the Council, CEO and senior managers, internal and external auditors, and any other relevant stakeholders.

14. Secretariat

Secretariat support will be provided by the Central Desert Regional Council. The Secretariat will be responsible for:

• Ensuring that the agenda for each meeting and supporting documentation are circulated, after approval from the Chair, at least three days prior to the meeting. The Secretariat will prepare and maintain the minutes ensuring they are signed by the Chair, distributed to each member and tabled at the next Ordinary Council meeting.
• The Secretariat will keep a record of the membership and the dates of any changes to the membership.

15. Code of Conduct

• Committee members must abide by the Council Code of Conduct.

16. Conflict of Interest

• Committee members must declare any real or perceived conflicts of interest when joining the committee, annually and at the start of each meeting or before discussion of the relevant agenda item or topic. Details of any conflicts of interest should be appropriately minuted.
• Where a Committee member is deemed to have a real or perceived conflict of interest, at the Chairperson’s discretion, it may be appropriate that the person is excused from committee deliberations on the agenda item where a conflict of interest exists, or if necessary excused from the meeting. 

17. Review of Terms of Reference

• These Terms of Reference will be reviewed on an annual basis by the Committee. Any substantive changes will be recommended by the Committee and formally approved by the Council.

18. Approval and Review History

To download a pdf of the Audit Committee terms of reference please click on: Audit Committee Terms of Reference

The Council currently has three Council Committees: the Finance Committee, the Audit Committee and the CEO Performance Review Committee. Council formed committees are an important part of Council and may assist Council to undertake specific roles and functions when a full Council is not formed.

Click on Committee Meetings to view the details of upcoming meetings.

Finance Committee

The CDRC Finance Committee is established as a finance committee to the Council in accordance with the Local Government Act, 2019 Part 5.2, and the Local Government (General) Regulations 2021 Part 2, section 19.

The Finance Committee comprises of:

• President Adrian Dixon (Chair)
• Cr Jeff Iversen
• Cr Jacob Spencer
• Cr James Glenn
• Lucy Ayre (independent)

For the Finance Committee terms of reference please click on: Finance Committee Terms of Reference

Audit Committee

The CDRC Audit Committee is established as an audit committee to the Council in accordance with the Local Government Act, 2019 Part 5.3.

The Committee is scheduled for the intervening months where there is no scheduled Council meeting and has the functions as described under section 87 of the Act:

  (a) Monitors and reviews the integrity of the Council's financial management;
  (b) Monitors and reviews internal controls; and
  (c) Makes recommendations to council about any matters the committee considers needs council's consideration as a result of its functions.

The Audit Committee comprises of:

• Cr April Martin
• Cr James Glenn
• Cr Rosslyn Campbell
• Lucy Ayre (Chair) (independent)

For the Audit Committee terms of reference please click on: Audit Committee Terms of Reference

CEO Performance Review Committee

The CEO Performance Review Committee meets to review the CEO’s performance and makes recommendations to the Council regarding performance matters. The Committee meets approximately two times a year but may convene more regularly if required. The CEO Performance Review Committee operates as an advisory committee under Section 83 of the Local Government Act. The committee operates as a confidential committee.

The CEO Performance Review Committee comprises of:

• President Adrian Dixon
• Deputy President David McCormack
• Cr Jeff Iversen
• Cr James Glenn

For the CEO Performance Review Committee terms of reference please click on: CEO Performance Review Committee Terms of Reference