1. LGFMA Risk Management Framework – Internal Audit Program Mark Jeffreson Dario Nazzari

2. Our Brief To develop a suite of programs for use by internal audit as a tool to apply the risk management framework to a selection of issues commonly faced by local government throughout South Australia.

3. Approach Define the “risk universe” Define the “risk universe” Identify the “top 20” Identify the “top 20” Develop generic internal audit programs for access by: Develop generic internal audit programs for access by: – Riskemap – Other means 3

4. Risk Universe Solicit specific risks from larger Councils Solicit specific risks from larger Councils Collate and categorise Collate and categorise Identify consequences rather than causes Identify consequences rather than causes 4

5. Categories Asset management Asset management Information services Information services Business development Business development Procurement Procurement Compliance Compliance Project management Project management Financial Financial Strategic management Strategic management Governance Governance Environment Environment Human resources Human resources Public relations Public relations 5

6. Top 20 Engage pilot councils Engage pilot councils rural rural urban urban large large small small Representative of a broad cross-section of LG in SA Representative of a broad cross-section of LG in SA Workshops Workshops 6

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8. Risk Programs Asset maintenance Asset maintenance Natural disaster Natural disaster Building and DA Building and DA Plan assumptions Plan assumptions Community engagement Community engagement Project management Project management Contract administration Contract administration Records security Records security Delegations Delegations Public liability Public liability Effluent Effluent Revenue risk Revenue risk Financial sustainability Financial sustainability Staff risk Staff risk Fraud and theft Fraud and theft Stormwater Stormwater Info. systems failure Info. systems failure Utilisation of assets Utilisation of assets Legislative non-compliance Legislative non-compliance Valuation of fixed assets Valuation of fixed assets 8

9. Example Financial sustainability program Financial sustainability program Financial sustainability program Financial sustainability program 9