Council has established an Audit and Risk Committee (the Committee) in compliance with section 53 of the 'Local Government Act 2020' (the Act) – Audit Committee.

Pursuant to 139(2) of the Act, the Committee is an advisory committee and does not have any executive powers, management functions, or delegated financial responsibility.

The Committee’s purpose is to report to the Council and provide appropriate advice and recommendations on matters relevant to its charter

The Committee gives independent advice to Council on:

• Risk Management
• Fraud Management prevention systems and controls
• Overseeing Council’s internal audit function
• Overseeing Council’s external audit function
• Processes and practices
• Monitor Councils financial and performance reporting
• Compliance and reporting systems

Upcoming Meeting Dates

• 17 December 2024

Members

The Committee alongside the Chief Executive Officer and Merri-bek Executives comprises of seven members - three Councillors and four independent and external members, appointed by Council.

The three Councillors that have been appointed members of the Committee for 2023 are:

• Cr Adam Pulford  (Mayor)
• Cr Lambros Tapinos
• Cr Monica Harte

The four independent and externally appointed members of the Committee are:

• John Watson (Chair)
• Jeff Rigby
• Marilyn Kearney
• Lisa Tripodi

Internal Audit

Internal audit serves an important function and supports Merri-bek City Council to provide assurance over its internal controls. Merri-bek City Council has contracted its internal audit service to Crowe. The internal auditor responsibilities include, but are not limited to:

• Undertaking scheduled audits
• Reporting quarterly to the Audit and Risk Committee
• Supporting the development and maintenance of Councils internal audit plan
• Provide Council with observations and recommendations

External Audit

RSD Audit has been assigned as Merri-bek City Council’s external auditors on behalf of The Victorian Auditor-General. The external audit focuses mainly on financial performance reporting compliance against the Australian International Financial Reporting Standards.

Committee Charter

The Committee’s functions and responsibilities are outlined in the Merri-bek Audit and Risk Committee Charter (PDF 590Kb). This charter was approved by Council on 28 November 2023.

Merri-bek Audit and Risk Committee Performance Report

The following report outlines the Audit and Risk Committee's performance for the 2022/23 financial year:

• Audit and Risk Committee Performance Report 2022/23

Our Strategic Risk Register

The Audit and Risk Committee provide independent oversight on Council’s 9 Strategic Risks.

The Strategic Risk Register is owned and reviewed by the Executive and maintained by the Integrity, Risk, and Resilience Unit at Merri-bek City Council.

Each strategic risk is allocated to a member of the Executive who informs the status of their risk, confirmation of the efficacy of controls, and the progress of risk tasks.

Our 9 Strategic Risks and Risk ratings are detailed below.

• 1. Council's infrastructure and assets become unfit for purpose

  The risk rating for this strategic risk is medium.

  The Directorate responsible for the management of this risk is City Infrastructure.

• 2. Council does not properly plan or prepare for disruption, change, and transformation

  The risk rating for this strategic risk is medium.

  The Directorate responsible for the management of this risk is Business Transformation.

• 3. Failure to attract and retain a skilled and competent workforce

  The risk rating for this strategic risk is medium.

  The Directorate responsible for the management of this risk is Business Transformation.

• 4. The impacts of population growth are not effectively managed

  The risk rating for this strategic risk is medium.

  The Directorate responsible for the management of this risk is Place and Environment.

• 5. Council's cyber security is breached

  The risk rating for this strategic risk is high.

  The Directorate responsible for the management of this risk is Business Transformation.

• 6. The impacts of climate change are not appropriately planned for or responded to

  The risk rating for this strategic risk is high.

  The Directorate responsible for the management of this risk is Place and Environment.

• 7. Council's financial sustainability is not maintained

  The risk rating for this strategic risk is medium.

  The Directorate responsible for the management of this risk is Business Transformation.

• 8. Ineffective management of Council's reputation and brand

  The risk rating for this strategic risk is high.

  The Directorate responsible for the management of this risk is Community.

• 9. Ineffective management of stakeholder relationships

  The risk rating for this strategic risk is high.

  The Directorate responsible for the management of this risk is Community.