In line with good governance practices, and in accordance with Section 139 of the Local Government Act 1989 (Vic), the City of Melbourne has operated an Audit Committee since 1996.
The Audit Committee, formally appointed by the Melbourne City Council, oversees the activities of the City of Melbourne’s external and internal auditors, and gives independent advice to the Finance and Governance Committee on appropriate accounting, auditing, internal control, business risk management, compliance and reporting systems, processes and practices within the organisation.
The Audit Committee currently meets five times a year. The committee considers and makes recommendations to the Council and the Council’s management on many issues and internal audits. These have recently included:
- internet security
- occupational health and safety
- the City of Melbourne’s business continuity planning procedures
- the City of Melbourne’s risk profile and legislative compliance frameworks
- policy and procedures framework
- fraud control framework
- financial processes and procedures
- implementation of Council and Special Committee resolutions
- statement of annual accounts and performance report for Council, and reports on its wholly owned subsidiaries
- governance responsibilities applicable to associated entities and trusts in which the City of Melbourne has either an indirect interest or stake
- legal action reports
- the Audit Committee's Charter and Terms of Reference.
Independent Audit Committee members
Richard Moore - Chair
Richard Moore was appointed to the Audit committtee in July 2009. Richard served as a Partner of PricewaterhouseCoopers for 23 years and more recently as Group Manager, Audit for the ANZ Banking Group. Richard has extensive consulting and managmeent experience in risk management and internal control.
Theresa Glab
Theresa Glab was re-appointed to the Audit Committee as an external member for a three-year period from September 2011. Theresa is Partner/Director of Risk Management and Internal Audit, Moore Stephens, Melbourne and holds a Bachelor of Economics, Graduate Diploma in Banking and Finance and a Master of Accountancy. Theresa is an experienced senior internal audit manager and financial controller.
John Stewart
John Stewart was appointed to the Audit Committee in May 2010. John served as a Director of BDO Kendalls between 1986 – 2008 (BDO Kendalls provides expertise in a broad range of services, including audit, accounting, taxation, risk management, forensic and corporate advisory services)and was a Board member of the Executive of BDO Kendalls for six years. Currently John is also Chairman of the Audit Committee of Harness Racing Victoria and Chairman of the Finance and Audit/Risk Committee of Ritchies Stores Pty Ltd.
Council Representatives
- Deputy Lord Mayor, Susan Riley
- Councillor Brian Shanahan as Chair of the Finance and Governance Committee.
Internal Audit
The internal audit service helps the City of Melbourne, its management, and the management of its subsidiary companies, perform their responsibilities. The internal audit service helps us maintain an organisational environment with strong, relevant and effective internal controls.
The City of Melbourne’s internal auditor reports to the Audit Committee. The service is contracted to Deloitte Touche Tohmatsu. The current contract commenced in July 2009. Our principle contact from Deloitte Touche Tohmatsu is David Boyd, Partner Risk Services.
The City of Melbourne works on the precept that a strong internal control environment provides assurances to management that systems are in place to effectively manage operations in particular in relation to finance and accounting, risk, legislative compliance, fraud, governance, performance and systems related to information management and security.
The core functions provided by the internal audit services are:
- risk assessment
- development and management of an audit program
- conducting audits and reviews
- reporting audit opinions, findings and recommendations
- presenting, discussing and providing advice on key issues.
External Audit
The Victorian Auditor-General is responsible for the external audit of the City of Melbourne and its subsidiary companies. The external audit focuses primarily on compliance of reporting the financial performance against the Australian International Financial Reporting Standards but also includes a review on significant potential areas of organisational internal control risk each year.