Value Adding through Internal Audit
Aligning Capacity, Strategy and Sustainable Outcomes
The Adding Value through Internal Audit project (the project) is working directly with a large group of councils to undertake an internal audit on an agreed service. The project will deliver councils, as a group and individually, a completed audit report on the selected service with suggested recommendations and findings on improvement strategies and best practice approaches.
The project will assess the contribution of a strong and strategic internal audit approach to the councils’ overall operational efficiency and service delivery to their respective communities.
Why are we doing it?
Internal audit is widely used in successful corporations as a key mechanism for managing risks and improving operational efficiency and effectiveness. Equally, an internal audit program is an essential component of a good governance framework for councils. Internal audits are a key enabler to realising opportunities and managing risks that challenge local government.
Whilst not mandatory under the Local Government Act (1989), internal audits are strongly supported as a key governance tool in the Local Government Victoria (LGV) – ‘Audit Committee: A Guide to Good Practice for Local Government’ (PDF 373kb) or (Word 386kb) publication.
The project aims to demonstrate the operational efficiencies and increased performance outcomes that can be achieved by councils through a robust internal audit program and inform the sector on the benefits of a collaborative approach to auditing.
Project outcomes
Outcomes of this project will include:
- An improved understanding of the contribution and costs to council of an internal audit program
- Data on the participation and issues currently subject to internal audit across the sector for analysis
- Findings on the effectiveness of delivering internal audits on a regular basis
- Analysis of the benefits of collaboration in internal audits and comparisons across ‘like’ councils for communication to the broader sector.
Who is participating and what is being audited?
South West Regional Victoria GroupColac-Otway, Corangamite, Southern Grampians, Warrnambool & Moyne councils are undertaking an Internal Audit of their fleet services.
Further information
If you would like further information on the project, please contact Local Government Victoria.