Minutes of Meeting

Audit, Risk and Improvement Committee Meeting

Venue	Conference Room, Station Street, Mullumbimby
Date	Thursday, 17 August 2023
Time	11.30am

BYRON SHIRE COUNCIL

Audit, Risk and Improvement Committee Meeting Minutes 17 August 2023

Minutes of the Audit, Risk and Improvement Committee Meeting held on Thursday, 17 August 2023

File No: I2023/1227

PRESENT: Cr M Swivel, Cr A Hunter

Independent Members:       Patrick Grier (Chairperson)

                                                Michael Georghiou (Audio-Visual link)

                                                Bernard Grinberg

Staff:  Mark Arnold (General Manager)

            Esmeralda Davis (Director Corporate and Community Services)

            Phillip Holloway (Director Infrastructure Services)

            Heather Sills (Manager Corporate Services)

            Colin Baker (Manager Business Systems and Technology)

            Amber Watt (Strategic Risk Coordinator)

            Mila Jones (Governance and Internal Audit Coordinator)

            Storm Townsend (Minute Taker)

Other Attendees:                  Adam Bradfield (Thomas, Noble and Russell)

                                                Jarrod Lean (Grant Thornton)

Pat Grier (Chair) opened the meeting at 11.32am and acknowledged that the meeting was being held on Bundjalung Country.

Attendance via AUDIO-VISUAL LINK:

Michael Georghiou attending the meeting via audio-visual link.

Apologies:

There were no apologies.

Declarations of Interest – Pecuniary and Non-Pecuniary

There were no declarations of interest.

Adoption of Minutes from Previous Meetings

Report No. 3.1           Minutes of the Audit, Risk and Improvement Committee Meeting held 18 May 2023

File No:                       I2023/912

Committee Recommendation:

That the minutes of the Audit, Risk and Improvement Committee Meeting held on 18 May 2023 be confirmed. (Hunter/Grinberg)

The recommendation was put to the vote and declared carried.

Note: The minutes of the meeting held on 18 May 2023 were noted, and the Committee Recommendations adopted by Council, at the Ordinary Meeting held on 22 June 2023.

Business Arising from Previous Minutes

There was no business arising from previous minutes.

Procedural Motion

That the meeting move into confidential session for the following reasons:

Report No. 5.1            Confidential - Internal Audit Report - Quarter 4 2022-2023

1.      That pursuant to Section 10A(2)(d)i of the Local Government Act, 1993, Council resolves to move into Confidential Session to discuss the report Internal Audit Report - Quarter 4 2022-2023.

2.      That the reasons for closing the meeting to the public to consider this item be that the report contains:

a)      commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it

3.      That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:

the nature and content of internal audit reports is for operational purposes.

Report No. 5.2            Confidential - Q4 Risk Report

1.      That pursuant to Section 10A(2)(f) of the Local Government Act, 1993, Council resolves to move into Confidential Session to discuss the report Q4 Risk Report.

2.      That the reasons for closing the meeting to the public to consider this item be that the report contains:

a)      matters affecting the security of the council, councillors, council staff or council property

3.      That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:

Risk Management.

Report No. 5.3           Confidential - 2023 Interim Audit Management Letter

1.      That pursuant to Section 10A(2)(f) of the Local Government Act, 1993, Council resolves to move into Confidential Session to discuss the report 2023 Interim Audit Management Letter.

2.      That the reasons for closing the meeting to the public to consider this item be that the report contains:

a)      matters affecting the security of the council, councillors, council staff or council property

3.      That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:

Nature and content of audit reports is for operational purposes and report details information about Council systems, controls and processes.

Report No. 5.4            Confidential - Proposed Internal Audit of Caravan Parks

1.      That pursuant to Section 10A(2)(d)i of the Local Government Act, 1993, Council resolves to move into Confidential Session to discuss the report Proposed Internal Audit of Caravan Parks.

2.      That the reasons for closing the meeting to the public to consider this item be that the report contains:

a)      commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it

3.      That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:

has been provided by Council's internal auditors Grant Thornton.

Report No. 7.2            Confidential - Cyber Security and IT System Outages Quarterly Update

1.      That pursuant to Section 10A(2)(f) of the Local Government Act, 1993, Council resolves to move into Confidential Session to discuss the report Cyber Security and IT System Outages Quarterly Update.

2.      That the reasons for closing the meeting to the public to consider this item be that the report contains:

a)      matters affecting the security of the council, councillors, council staff or council property

3.      That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:

Exposes information security risks and vulnerabilities that could assist unauthorised threats to Council's information and systems.

(Grier/Grinberg)

The motion was put to the vote and declared carried.

Confidential Reports - Corporate and Community Services

Report No. 5.1           Confidential - Internal Audit Report - Quarter 4 2022-2023

File No:                       I2023/919

Committee Recommendation:

That Council:

1.      Notes the Internal Auditors Summary of Internal Audit Recommendations for Quarter 4 2022-2023 at Attachment 1 (E2023/75611).

2.      Notes that the Audit, Risk and Improvement Committee endorses the recommendations from the Executive Team to close off nine internal audit recommendations from Quarter 4 2022-2023 as listed in Table 1 of this report (which is a summary from Attachment 2 E2023/71627). (Grier/Hunter)

The recommendation was put to the vote and declared carried.

Report No. 5.2           Confidential - Q4 Risk Report

File No:                       I2023/1103

Committee Recommendation:

1.      That the Audit, Risk and Improvement Committee note the attached Risk Report.

2.      That the Audit, Risk and Improvement Committee receives quarterly reports providing an update on the cyber security penetration testing and remedial actions and on Civica software issues and remedial actions. (Hunter/Grinberg)

The recommendation was put to the vote and declared carried.

Report No. 5.3           Confidential - 2023 Interim Audit Management Letter

File No:                       I2023/1130

Committee Recommendation:

That the comments provided by Management in response to issues raised in the 2023 Interim Audit Management Letter (#E2023/77884) be noted by Council and the Audit, Risk and Improvement Committee. (Grier/Hunter)

The recommendation was put to the vote and declared carried.

Report No. 5.4           Confidential - Proposed Internal Audit of Caravan Parks

File No:                       I2023/925

Committee Recommendation:

That the Audit, Risk and Improvement Committee:

1.      a)      notes the management comments in this report and;

          b)      receives an internal report from staff responding to the points proposed in the Caravan Parks internal audit draft scope and additional points raised (Attachment 1 E2023/67194) prior to endorsing this review. (Grinberg/Grier)

The recommendation was put to the vote and declared carried.

For Information Only

Report No. 7.1           Status of Council Policies 2022-2023

File No:                       I2023/923

Report No. 7.2           Confidential - Cyber Security and IT System Outages Quarterly Update

File No:                       I2023/1115

Procedural Motion

That the meeting move out of confidential session.                                               (Grier/Hunter)

The motion was put to the vote and declared carried

There being no further business the meeting concluded at 12.59pm.