Independent Finance, Risk and Audit Committee Member

**Finance, Risk and Audit Committee**
**Terms of Reference
**1. ESTABLISHMENT
**1.1 The Finance, Risk and Audit Committee is a formally constituted Committee of Council

pursuant to _Section 41 and 126 of the Local Government Act 1999 _and is responsible to
Council. It operates as an independent and objective advisory Committee to Council and
does not have any delegated decision making or authority to implement actions in areas over
which the Chief Executive Officer has delegation.

**2. OBJECTIVES
**2.1 The primary objective of the Finance, Risk and Audit Committee is to add value through

the provision of advice to ensure that the resources of the City of Marion are being used
efficiently and effectively. It will assist Council accomplish its objectives by contributing to a
systematic and disciplined approach to evaluating and improving the effectiveness of risk
management, control and governance processes.

2.2 As part of Council’s governance obligations to the community, Council has constituted the
Finance, Risk and Audit Committee to facilitate:
2.2.1 Oversight of relevant activities to facilitate achieving the City of Marion’s objectives

in an efficient and orderly manner.

2.2.2 Enhancing the credibility and objectivity of internal and external financial reporting.

2.2.3 Effective management of risk and the protection of Council assets.

2.2.4 Compliance with laws and regulations as well as use of best practice guidelines.

2.2.5 The provision of an effective means of communication between the external auditor,
internal auditor and service reviews provider, management and Council.

2.2.6 The City of Marion’s ethical development.

**3. MEMBERSHIP
**3.1 Membership of the Committee will comprise:
(i) Two Council Members (who are not the Mayor)

(ii) One Proxy Council Member (who is not the Mayor)

(iii) Three Independent members

Council Member Representatives

3.2 Ideally, the Council Members on this Committee will have experience in business, legal, risk

management, audit or financial management / reporting knowledge and experience.

3.3 Appointment of the Council Members to this Committee will be made by Council on a
rotational basis, as resolved from time to time. Council may resolve to re-appoint the
Council Members on this Committee for consecutive terms.

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**Category**:Terms of Reference **City of Marion**
**Owner**:Manager Office of the CEO 245 Sturt Road, Sturt SA 5047
**Authorisation Date**:23 January 2023 PO Box 21, Oaklands Park SA 5046
**Review Date**:November 2026 T 08 8375 6600
- The online version of this document is the current version. This document is ‘Uncontrolled if PRINTED’.**Finance, Risk and Audit Committee**
**Terms of Reference
**3.4 No additional allowance will be paid to the Council Member representatives over and above

the allowance already received by the Council Members.

3.5 If required, training and development will be sourced and provided to the Council Member
of Reference.

3.6 The Council Member representatives will raise matters (within the scope of the Finance,

Risk and Audit Committee Terms of Reference) with the Committee, on behalf of Council
and act as a conduit of information between Council and the Committee, and the
Committee and Council.

3.7 The Council Member representatives will provide a verbal report to Council on the key

matters and recommendations within the Committee meeting, when the minutes and / or
Committee recommendation reports, are presented to Council for adoption.

3.8 The Council Member representatives will provide a report to the Committee on any Council

decisions or discussions that are relevant to the Committee’s Terms of Reference.

Independent Members

3.9 Independent members will collectively have skills, knowledge and experience in senior
business roles, legal, audit, financial management / reporting, risk management, governance
and be conversant with the local government environment.

3.10 The Council will determine the process for appointing an independent member.

3.11 Appointment of external representatives will be made by Council for a term to be determined
by Council. To ensure succession planning for the Committee, the terms of appointment
should be arranged on a rotational basis and continuity of membership despite changes to
Council’s elected representatives. Council may resolve to re-appoint an independent
member for consecutive terms.

3.12 If Council proposes to remove an independent member from the Committee, it must give

written notice to the independent member of its intention to do so and provide that
independent member with the opportunity to be heard at a Council meeting which is open
to the public, if that independent member so requests.

3.13 Remuneration will be paid to each independent member of the Committee to be set by

Council from time to time. At a minimum, the remuneration paid to the independent member
will be reviewed within 12 months from the date of a Council (per