A message from Mayor Narelle Davis.
This piece seeks to explain in simple terms the oversight and auditing of Council’s expenditure, financial processes and controls, asset planning and auditing, procurement processes, payroll and any potential fraud and corruption.
The following audits occur both annually and throughout the year for Snowy Monaro Regional Council:
- The NSW Audit Office undertakes three audits annually being planning, interim and final audits on the financial statements, finance processes and controls, systems audit on the payroll, procurement, tenders, information technology systems and controls, asset management, planning, valuations and replacements.
The key findings from all NSW councils are published annually on the NSW Audit Office website.
An independent auditor is engaged through out each year to undertake a program of extensive and in-depth audits on council processes and systems. These audits include work health and safety, fraud controls, payroll, debt recovery, water billing, contract management, rates management, government information (public access), governance and many more areas.
This year the independent auditor has so far audited Council’s payroll, debt recovery, and water billing systems. The Aged Care Quality and Safety Commission completed a compliance audit on Yallambee Lodge in February 2022 with the result being a 100% compliance against all applicable standards.
In April 2022, Council resolved to undertake an independent audit into Council’s financial situation from 2016 to 2022 – with Council to engage expert advice on how to undertake this audit. Council engaged the local government team at the University of Technology, Sydney. This team recommended Council undertake a Financial Sustainability Review focusing on the future of Council financially, assessing the depreciation and asset management and improving financial management of Council. This review was completed in November 2022 and provided 24 recommendations which have been endorsed by Council. Both the University of Technology team and AEC Group reviewed the financial statements, position, deficit, processes, and controls for the past six years – which is included in the AEC Financial Sustainability Review Report to Council.
All recommendations from every audit are reviewed, and management is held accountable through the Audit, Risk and Improvement Committee (ARIC). This committee has four independent members who have auditing or risk management skills and experience. This independent committee meets quarterly and the minutes are reported to Council post meeting. These minutes are available to the community when published in Council meeting business papers. The annual report of the Audit, Risk and Improvement Committee is in the July 2023 meeting business paper.
- The Office of Local Government (OLG) provides oversight for every NSW council. Snowy Monaro Regional Council has been working very closely with the OLG to improve Council’s financial sustainability. The OLG reviews the quarterly financial reports from all councils in NSW. The OLG also holds Council accountable for actioning all recommendations from audits and reviews undertaken by the NSW Audit Office and the OLG.
Councillors have been informed by the Audit, Risk and Improvement Committee and the OLG investigators that they have found no evidence of fraud and corruption within Snowy Monaro Regional Council. Further, the OLG have recommended that if any Councillor, staff member or member of the community has any evidence of fraud and corruption they should refer this evidence to the Independent Committee Against Corruption.
Councillor Narelle Davis
Mayor of Snowy Monaro Regional Council
