What keeps council's senior staff awake at night?

THE new committee aims to bring "sustainable change" to the council in the wake of the $6 million budget deficit.

ENGAGED COUNCIL: The chair of the Lismore City Council Audit Risk and Improvement Committee said staff are fully engaged with the process of transparency and accountability. Picture: Alison Paterson

AN INDEPENDENT financial risk expert has said he wants to know what issues are keeping Lismore City Council's senior staff awake at night.

In the wake of the council's $6 million deficit, Institute of Internal Auditors Australia vice-president Stephen Coates has been appointed the chair of council's newly-formed Audit Risk and Improvement Committee.

One of three independent experts, Mr Coates is joined by Southern Cross University's director of financial operations, Richard Jones, and experienced local government finance and audit risk consultant Brian Wilkinson, along with general manager Shelley Oldham and councillors Darlene Cook and Adam Guise.

Cr Cook said she was feeling very positive about the new chair after meeting him and the other consultants at the committee's first meeting last month.

"Steve Coates said he 'wants to know what's keeping senior staff awake at night'," she said.

Mr Coates said he was attracted to the position because of the opportunity to bring sustainable change to the organisation.

"This committee will make a positive difference to Lismore City Council and reinforce transparency and accountability in its decision making," he said.

"Lismore Council is putting the pedal to the metal on taking this seriously."

Mr Coates said local governments had an extremely wide range of responsibilities, and making comparisons between them quite difficult.

"But you can compare the rate of engagement," he said.

"Lismore is fully engaged."

Cr Guise said he has long called for an Audit Risk and Improvement Committee to be established.

"I chose to be on the ARIC because of my legal training and to bring oversight to fixing council's governance and internal systems," he said.

At the council's December 2018 meeting general manager Shelley Oldham announced the committee's establishment.

Ms Oldham explained the committee has a legislated duty to undertake reviews the following aspects of council's operations: compliance, risk management, fraud control, financial management, governance processes, implementation of the strategic plan, delivery program and strategies, service reviews, collection of performance measurement data by council and any other matter prescribed by the regulations.

"The committee will look at improvement across council by challenging traditional approaches," she said.

"It will have overarching objective is to encourage innovative thinking and problem-solving across the spectrum of council's functions and activities."

The Office of Local Government said the requirement for councils to appoint an Audit, Risk and Improvement Committee was legislated in August 2016.

Under the transitional provisions in the legislation, councils are not required to appoint an Audit, Risk and Improvement Committee until six months after the next ordinary council election following the commencement of the amendment (March 2021).

The extended transitional arrangements are intended to give time for the government to design and consult on the supporting regulatory requirements and for councils to implement them.

Nearly 70 per cent of NSW councils have already established these committees in a strong show of support by the local government sector for improving their governance and financial management for the benefit of their local communities.