The new framework, recommended by the Office of Local Government, seeks to prevent fraud, financial risk and corruption in the local government sector, however council has argued the framework is ‘‘inappropriate’’ in a democratic setting.
‘‘The primary concern we have is that the ARIC — the audit risk and improvement committees — are basically given more powers than elected members, so they (members) have the power to direct staff, to remove the GM or CEO from the meeting, all of those sorts of things, which are not things that are available to the elected members (councillors),’’ Ms Ewer said, adding the ARIC may even be able to ‘‘reject council decisions or even question them’’.
‘‘It’s not appropriate, especially the part about directing staff,’’ she said.
Ms Ewer said the framework is a superfluous addition to member councils of RAMJO which already have established.
RAMJO councils have also cited the costs of appointing a new ARIC, pre-requisite qualifications board members may be required to have — and which could be difficult to source — greater powers given to the committee chair, and the ability for the committee to hold private meetings excluding councillors and council staff.
The OLG says beyond preventing fraud, the framework will also protect ratepayers, improve service delivery at a council level, improve overall performance and function of local government, fortify financial management, accountability and transparency, all with a model which fits a range of council risk profiles, populations and locations.
Ms Ewer said RAMJO is not against adopting the ARIC model, recognising there are some benefits to the process, including streamlining council’s role, but the OLG’s most recent proposal is ‘‘not adequately thought through’’.
