MEETING OF COUNCIL - Town of Cambridge

COUNCIL MINUTES
TUESDAY 27 NOVEMBER 2012
AU12.8
APPOINTMENT OF INTERNAL AUDITOR
PURPOSE OF REPORT:
To consider the renewal of the contract for the provision of internal audit services.
BACKGROUND:
The Town's current internal auditor Santo Casilli's contract for the provision of internal audit
services has expired and although the provision of internal audit services are ongoing, these
are on a project by project basis.
In seeking the services of an internal audit firm, the Town utilised the "Common Use
Arrangements" Government contract "CUA 23706 - Audit Services and Financial Advice"
established by the State Government tender process as an alternative to going through a
tender process.
After having reviewed all audit firms under this CUA contract, the Administration presented
the "Provision of Internal Auditor", report AU12.4, to the Audit Committee held on 27 March
2012 with the following recommendation::
"That Santo Casilli, internal auditor, be appointed for a contract term of three years
for 2012, 2013 and 2014 at a cost of $95/hour (ex GST) for 2012 plus CPI for
subsequent years."
The recommendation was voted upon and lost, and the following decision was made by the
Committee and subsequently endorsed by Council:
"That competitive quotes be sought from 3 or 4 Auditing firms".
The Town has subsequently invited tenders from all audit firms appointed by WALGA under
their preferred supplier panel (reference Contract Number 0411-11). Macri Partners, were
excluded from the invitation as they are the Town's existing external auditors.
DETAILS:
Requests for Quote were issued on Thursday 11 October 2012 for the provision of internal
audit services for the financial years ending 2013-2016. This coincides with the requirement
for the Chief Executive Officer to undertake a review of financial systems and procedures at
least once every four years as per the Local Government (Financial Management)
Regulations 1996, specifically Regulation 5 (2). Submissions closed at 2.00 p.m. on
Tuesday, 25 October 2012.
Firms were asked to provide a schedule of hours and rates, (of which copies are attached to
this report), based on the following audit plan:
• Cash verification audit;
• Annual legislative compliance return;
• Accounts payable;
• Bonds and Deposits collections;
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