Circulars

What’s new or changing

• As foreshadowed in circular 22-41, the Local Government (General)Regulation 2022 (the Regulation) has been amended to give statutory force to key elements of the Office of Local Government’s (OLG) Guidelines for Risk Management and Internal Audit for Local Government in NSW (the Guidelines).
• The Amendment Regulation, which is attached to this circular, commences on 1 July 2024 to give councils and joint organisations time to implement the new requirements.
• The Guidelines have been updated to reflect the Regulation amendments as drafted.

What this will mean for your council

• The requirements prescribed under the Regulation are largely the same as those set out in the draft Guidelines issued in December last year.
• Some minor modifications have been made for legal reasons, but these largely give effect to the same outcomes set out in the draft Guidelines issued in December last year.
• An overview of the amendments and any modifications are set out in the attachment to this circular.

Key points

• The amendments do not take effect until 1 July 2024 to allow councils and joint organisations time to implement them.
• Councils and joint organisations will be required to report on their compliance with the Regulation in their annual reports from 2024/25.
• Councils and joint organisations are exempt from compliance with the Regulation in certain circumstances subject to their reporting their non-compliance, the reasons for their non-compliance and the alternative steps taken to achieve the same outcomes prescribed by the Regulation to OLG and in their annual reports.

Where to go for further information

• The Amendment Regulation is attached to this circular.
• An overview of the Amendment Regulation is set out in the attachment to this circular.
• An updated version of the Guidelines has been published on OLG’s website here.
• The model terms of reference for audit risk and improvement committees, an example risk management policy and the model internal audit charter are available in Word format for use by councils and joint organisations on OLG’s website here.
• Templates for the attestation and non-compliance statements required to be published in councils’ and joint organisations’ annual reports from 2024/25 is available in Word format for use by councils and joint organisations on OLG’s website here.
• For further information please contact the Council Governance Team on 02 4428 4100 or by email at olg@olg.nsw.gov.au.
• If councils or joint organisations require assistance in establishing an ARIC or shared arrangements for an ARIC, they should contact their council engagement manager at OLG.

Brett Whitworth
Deputy Secretary, Local Government