A performance audit of Local Government in NSW has found improved levels of risk management practices, financial reporting and governance across 125 councils, 10 county councils and 11 joint organisations.
The Auditor-General, Margaret Crawford presented her Report on Local Government 2019 which found more councils had implemented risk and improvement committees and internal audit functions.
“These are very pleasing indicators of the gradual strengthening of governance and financial oversight of the sector,” Ms Crawford said.
“I want to acknowledge the investment councils have made in working with the Audit Office to improve consistency of practice and accountability generally,” she said.
“Of course there is more work to do, particularly to prepare for new accounting standards and to strengthen controls over information technology and cyber security management.”
Ms Crawford said her report provided guidance to councils on areas for improvement.
She said to improve governance and internal controls councils should: ensure that audit recommendations were addressed in a timely manner; have an audit, risk and improvement committee, a mandatory requirement by March 2021; continue improving fraud control systems; and have adequate processes and controls to ensure compliance with their gifts and benefits policy and the Model Code of Conduct.
“High risk issues need to be prioritised and repeat issues from prior years resolved,” she said.
Ms Crawford also made recommendations to councils on how they could strengthen IT controls, cyber security management and improve asset management practices.
The Auditor-General’s 64-page report can be accessed at this PS News link.
