Local Government (Audit Panels) Order 2014

The audit panel of a council is to be constituted by a minimum of 3 and a maximum of 5 members of whom – if the panel has 4 or 5 members, at least 2 must be independent persons; or if the panel has 3 members, at least one must be an independent person.

Without limiting who may be members of an audit panel, the following persons are eligible to be members of an audit panel:a councillor, other than the mayor, of the relevant council; a member of an audit panel of another council, if he or she is an independent person in respect of the other council.

A councillor, or employee, of a council is not eligible to be a member of an audit panel of another council.

A person who is an employee, or the general manager or the mayor, of a council is not entitled to be a member of the audit panel of that council.

The council is to appoint the members of its audit panel.

In appointing an independent person as a member of an audit panel, the council – is to ensure that the person possesses good business acumen and sound management and communication skills; and may take into account any other relevant knowledge, abilities and skills of the person including, but not limited to – knowledge and expertise in the areas of audit practices and financial management; and knowledge of and experience in relevant industries; and experience with governance processes including, but not limited to, risk management.