Role of the Audit Committee

The following article has been re-produced as a means of sharing knowledge and is not specific to Glen Eira Council but is provided for general consideration only.


Audit Committee Oversight

The role of the Audit Committee is as follows:


Internal Audit

• to engage in open and transparent relationship with the Internal Audit provider;
• to review and approve an internal Audit charter annually;
• as a result of communications with the Internal Audit provider, to have a clear understanding of both the strengths and weaknesses of Council's internal controls and risk management systems;
• to ensure that the Internal Audit activity is sufficiently resourced with competent, objective internal Audit professionals to carry out the internal audit plan, which plan has been reviewed and approved by the Audit Committee;
• to ensure that the internal Audit activity is empowered to be independent with appropriate reporting relationships to Executive management and the Audit Committee;
• to address with the Internal Audit provider all issues related to internal Audit independence and activity;
• the Internal Audit activity has in place a Quality Assurance and Improvement program;
• to regularly communicate with the Internal Audit provider about performance and improvement of the services rendered by the Internal Audit provider;
• to ensure that Internal Audit reports are actionable and audit recommendations and/or other improvements are satisfactorily implemented by management;
• to meet periodically with the Internal Audit provider without the presence of management.

External Audit

To provide adequate oversight of external Audit, an Audit Committee should ensure the following:

• The audit firm has a well considered process for establishing independence and this is communicated fully, appropriately and promptly to the Audit Committee;
• Members of the audit team are dedicated industry specialists able to identify important issues in the business and provide value-added service;
• Lead partners and key personnel are visible at the organisation and deliver practicable advice to senior management and the Audit Committee;
• The advice provided by the auditor on regulatory/industry developments and implications is timely, technically robust and commercially sound;
• The audit approach is customised to incorporate the risks of the organisation and the view and concerns of management and the Audit Committee;
• The audit timetable is efficient and well planned;
• The audit approach adds value by explaining the impact of audit findings and results of the auditor's risk assessments;
• Key service performance standards are satisfied, for example response times, deliverables, staff continuity, communications protocols;
• Clear and regular communication is provided by the auditor to the Audit Committee and staff of the organisation as appropriate;
• The fee for the audit represents fair compensation for a comprehensive and high quality audit.

Solar Heating for GESAC?

Many in our community have queried whether the new Sports and Aquatic Centre will have incorporated environmentally responsible design. In that regard the architects have designed the building to ensure that it is environmentally friendly.

Solar assisted hot water for showers has been included however pool heating has not.

Council investigated the possibility of solar assisted pool heating but ultimately it was considered inefficient and not cost effective. The incorporation of solar water heating would involve a high capital cost, detrimental increases in energy use to operate the system and fewer benefits. The Director of Assets and Facilities, Mr P Waite has pointed out that "the above conclusion is consistent with the approach taken on the newly constructed Cranbourne RACE which also does not provide pool heating via solar energy"

Council considered 3 types of solar heating:

• 
  
  Tube Mat System - This is inefficent but low cost. These systems must use electricity to operate and are ideally used for domestic pools and municipal outdoor pools where only a small increase in temperature is required and the additional electricity cost is justified.


• 
  
  Flat Plate Systems - These are mainly used for domestic applications in non-corrosive environments. Thet are certainly more efficient that Tube Mat Systems but due to the bature of pool water are inappropriate for use ina public pool.


• 
  
  Evacuated Tube Systems - These are most efficient but particularly expensive. This type of system would cost approximately $360,000 to provide some heating to the outdoor 50m pool. Mr Waite has said that it is debatable whether there would be an actual "payback period" as typically these systems need replacing before there is return oninvestment.

In considering the issue of sustainability the focus has been on obtaining the best value for the limited budget.

Rather than going for feel good options Council has concentrated on outcomes that will deliver environmentally appropriate outcomes. These involve:

1. 
   
   Reducing the use of potable water by harvesting storm water, treating grey water for toilet flushing and irrigation and retaining and treating pool backwash water for irrigation;


2. 
   
   Conserving energy and reducing our carbon footprint through use of a heat transfer system between air conditioning exhaust and air supply ducts, solar assisted hot water for showers and basins, daylight sensors and special glazing for effective control of light, motorised baffles to western glazing, energy efficient ducted heating and cooling systems with natural bypass systems to minimise energy consumption when outside air temerature permits and an integrated Building Management System that effectively and continually monitors and controls plant and equipment.

The Community should be assured that Council was very much concerned to ensure that GESAC be built environmentally sustainable. Issues of sustainability are an ongoing issue and certainly as there are new developments they will be considered. As against this Council must also be financially responsible so where there are systems that are inefficient and expensive Council will continue to be prudent.