{"id":"tas:sr-2014-034","name":"Local Government (Audit Panels) Order 2014","slug":"local-government-audit-panels-order-2014","collection":"regulation","jurisdiction":"tas","status":"in_force","isInForce":true,"actNumber":"34 of 2014","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":187499,"registerId":"tas-tas:sr-2014-034-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"### 1 Short title\n\n> This order may be cited as the [Local Government (Audit Panels) Order 2014](/view/html/inforce/2026-04-12/sr-2014-034) .","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"### 2 Commencement\n\n> This order takes effect on the day on which its making is notified in the *Gazette*.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"### 3 Interpretation\n\n> > (1)  In this order –\n> > \n> > > ***Act*** means the [Local Government Act 1993](/view/html/inforce/2026-04-12/act-1993-095) ;\n> > \n> > > ***audit panel*** means an audit panel that a council is required to establish under [section 85(1)](/view/html/inforce/2026-04-12/act-1993-095#GS85@Gs1@EN) of the Act;\n> > \n> > > ***independent person*** means a person who is not a councillor or employee of the relevant council.\n> \n> > (2)  The [Acts Interpretation Act 1931](/view/html/inforce/2026-04-12/act-1931-059) applies to the interpretation of this order as if it were by-laws.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Functions of audit panel","content":"### 4 Functions of audit panel\n\n> > (1)  In this clause –\n> > \n> > > ***Part 7 plan*** means a strategic plan, an annual plan, a long-term financial management plan or a long-term strategic asset management plan of a council prepared under [Division 2 of Part 7](/view/html/inforce/2026-04-12/act-1993-095#HP7@HD2@EN) of the Act.\n> \n> > (2)  For the purposes of [section 85A(1)(d)](/view/html/inforce/2026-04-12/act-1993-095#GS85A@Gs1@Hpd@EN) of the Act, the following matters are specified as the matters that an audit panel is to consider in a review of the relevant council's performance:\n> > \n> > > > (a) whether the annual financial statements of the council accurately represent the state of affairs of the council;\n> > > \n> > > > (b) whether and how the Part 7 plans are integrated and the processes by which, and assumptions under which, those plans were prepared;\n> > > \n> > > > (c) the accounting, internal control, anti-fraud, anti-corruption and risk management policies, systems and controls that the council has in relation to safeguarding its long-term financial position;\n> > > \n> > > > (d) whether the council is complying with the provisions of the Act and any other relevant legislation;\n> > > \n> > > > (e) whether the council has taken any action in relation to previous recommendations provided by the audit panel to the council and, if it has so taken action, what that action was and its effectiveness.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Membership of audit panel","content":"### 5 Membership of audit panel\n\n> > (1)  The audit panel of a council is to be constituted by a minimum of 3 and a maximum of 5 members of whom –\n> > \n> > > > (a) if the panel has 4 or 5 members, at least 2 must be independent persons; or\n> > > \n> > > > (b) if the panel has 3 members, at least one must be an independent person.\n> \n> > (2)  Without limiting who may be members of an audit panel, the following persons are eligible to be members of an audit panel:\n> > \n> > > > (a) a councillor, other than the mayor, of the relevant council;\n> > > \n> > > > (b) [*\\[Clause 5 Subclause (2) amended by S.R. 2015, No. 79, Applied:01 Jan 2016\\]*](/view/html/inforce/2016-01-01/sr-2015-079#GS4@Hpa@EN) .  .  .  .  .  .  .  .  \n> > > \n> > > > (c) [*\\[Clause 5 Subclause (2) amended by S.R. 2015, No. 79, Applied:01 Jan 2016\\]*](/view/html/inforce/2016-01-01/sr-2015-079#GS4@Hpb@EN) a member of an audit panel of another council, if he or she is an independent person in respect of the other council.\n> \n> > (2A)  [*\\[Clause 5 Subclause (2A) inserted by S.R. 2015, No. 79, Applied:01 Jan 2016\\]*](/view/html/inforce/2016-01-01/sr-2015-079#GS4@Hpc@EN) A councillor, or employee, of a council is not eligible to be a member of an audit panel of another council.\n> \n> > (3)  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.\n> \n> > (4)  The council is to appoint the members of its audit panel.\n> \n> > (5)  In appointing an independent person as a member of an audit panel, the council –\n> > \n> > > > (a) is to ensure that the person possesses good business acumen and sound management and communication skills; and\n> > > \n> > > > (b) may take into account any other relevant knowledge, abilities and skills of the person including, but not limited to –\n> > > > \n> > > > > > (i) knowledge and expertise in the areas of audit practices and financial management; and\n> > > > > \n> > > > > > (ii) knowledge of and experience in relevant industries; and\n> > > > > \n> > > > > > (iii) experience with governance processes including, but not limited to, risk management.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Chairperson of audit panel","content":"### 6 Chairperson of audit panel\n\n> > (1)  The chairperson of an audit panel may only be an independent person who is a member of the audit panel.\n> \n> > (2)  If an audit panel includes more than one independent person as members, the relevant council is to appoint one of the independent persons as chairperson of the audit panel.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Term and conditions of appointment of audit panel members","content":"### 7 Term and conditions of appointment of audit panel members\n\n> > (1)  A member of an audit panel holds office for such period of not less than one year and not more than 4 years as is specified in the member's instrument of appointment and, if eligible, may be reappointed.\n> \n> > (2)  A member of an audit panel who is an independent person is entitled to be paid the remuneration and allowances determined by the relevant council.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Notification of appointment of members of audit panel","content":"### 8 Notification of appointment of members of audit panel\n\n> The general manager of a council is to notify the Director of –\n> \n> > > (a) the appointment of all the members of the council's audit panel, and the term of each of those appointments, as soon as practicable after establishing the panel; and\n> > \n> > > (b) the identity of the chairperson, and each independent member, of the audit panel; and\n> > \n> > > (c) of the appointment of each new member of the audit panel, and the term of that appointment, as soon as practicable after making that appointment.","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Charter of audit panel","content":"### 9 Charter of audit panel\n\n> > (1)  A council may provide to its audit panel a charter relating to –\n> > \n> > > > (a) the manner in which the audit panel is to perform its functions; and\n> > > \n> > > > (b) the procedure of the audit panel in respect of its meetings.\n> \n> > (2)  A charter under [subclause (1)](#GS9@Gs1@EN) may relate only to administrative matters.","sortOrder":8},{"sectionNumber":"10","sectionType":"section","heading":"Annual work plan","content":"### 10 Annual work plan\n\n> To assist the audit panel in performing its functions efficiently and effectively, the audit panel is to develop an annual work plan that includes, but is not limited to, a schedule of meetings and the known objectives for each meeting so scheduled.","sortOrder":9},{"sectionNumber":"11","sectionType":"section","heading":"Meetings of audit panel","content":"### 11 Meetings of audit panel\n\n> > (1)  In this clause –\n> > \n> > > ***financial manager*** means the person, determined by the general manager of a council by notice provided to the person, to be responsible to the general manager in relation to the preparation of the council's financial statements (for the purposes of this clause only).\n> \n> > (2)  An audit panel is to hold not less than 4 meetings in each financial year.\n> \n> > (3)  At a meeting of an audit panel, a quorum is constituted by a majority of the total number of members appointed.\n> \n> > (4)  Despite [subclause (3)](#GS11@Gs3@EN) , if at least one member who is an independent person is not present at the meeting of the audit panel, there is no quorum present.\n> \n> > (5)  The general manager of a council is to attend, or to ensure that his or her delegate attends, each meeting of the council's audit panel.\n> \n> > (6)  The financial manager of a council is to attend, or to ensure that his or her delegate attends, each meeting of the council's audit panel.\n> \n> > (7)  An audit panel may invite or allow any councillor of the relevant council or an employee of the relevant council to attend one or more meetings of the audit panel.\n> \n> > (8)  [Subclauses (5)](#GS11@Gs5@EN) , [(6)](#GS11@Gs6@EN) and [(7)](#GS11@Gs7@EN) do not apply in relation to a meeting of the audit panel if the audit panel determines that the meeting is to be held in private.\n> \n> > (9)  Except as provided by this order or the charter provided to an audit panel under [clause 9](#GS9@EN) , the audit panel may regulate its own proceedings.\n> \n> > (10)  An audit panel is to provide a copy of the minutes of its meeting to the relevant council as soon as reasonably practicable.","sortOrder":10},{"sectionNumber":"12","sectionType":"section","heading":"Recommendation of audit panel","content":"### 12 Recommendation of audit panel\n\n> On conducting a review under [section 85A](/view/html/inforce/2026-04-12/act-1993-095#GS85A@EN) of the Act, the audit panel is to provide the relevant council with a written report of its conclusions and recommendations, if any.","sortOrder":11},{"sectionNumber":"13","sectionType":"section","heading":"Resources of audit panel","content":"### 13 Resources of audit panel\n\n> A council is to provide secretariat support to, and all necessary funding required by, its audit panel.\n\nDisplayed and numbered in accordance with the *[Rules Publication Act 1953](/view/html/inforce/current/act-1953-050)*.\n\nNotified in the *Gazette* on 19 February 2014\n\nThis order is administered in the Department of Premier and Cabinet.","sortOrder":12}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose of establishing operational rules for local government audit panels. It covers membership, functions, meetings, and administrative arrangements without significant expansion beyond the core mandate of supporting section 85 and 85A of the Local Government Act 1993."},"complexity_factors":["Short, focused instrument with only 13 clauses covering a single subject matter","Only 5 defined terms in the interpretation section (Act, audit panel, independent person, Part 7 plan, financial manager)","Minimal cross-referencing — primarily references back to the Local Government Act 1993 for context","Simple conditional logic (e.g., 'if 4 or 5 members, at least 2 independent; if 3 members, at least 1 independent')","Clear structural organisation with logical flow from establishment to operation","Some amendment history visible in text (S.R. 2015, No. 79) but does not affect current readability","No nested exceptions or highly conditional operational provisions"],"plain_english_summary":"This law sets up the rules for **audit panels** at Tasmanian local councils. An audit panel is a group of people who check that a council is managing its money properly and following the rules.\n\n**What the law does:**\n\n*   **Defines the panel's job:** The panel must review whether the council's financial statements are accurate, whether the council's long-term plans fit together properly, and whether the council has good systems in place to prevent fraud and corruption. They also check if the council is following the law and whether it has acted on previous recommendations.\n*   **Sets membership rules:** Panels must have 3 to 5 members. At least one member (or two, if the panel is bigger) must be an **\"independent person\"** — meaning someone who is not a councillor or council employee. The chairperson must be an independent person. Councillors can serve on the panel (except the mayor), but the general manager, mayor, and employees of that council cannot.\n*   **Sets meeting rules:** Panels must meet at least 4 times per year. A majority of members makes a quorum (the minimum number needed to meet), but at least one independent person must be present for the meeting to go ahead. The council's general manager and financial manager (or their delegates) must attend unless the panel decides to meet in private.\n*   **Covers practical details:** Members serve 1 to 4 year terms, independent members get paid, and the council must provide staff support and funding for the panel.\n\n**Who it affects:**\n\n*   Tasmanian local councils and their staff\n*   Councillors who may serve on or interact with audit panels\n*   Independent community members appointed to audit panels\n\n**Why it matters:**\nIt creates a system of **financial oversight** (independent checking) for local councils to ensure public money is handled responsibly, corruption is prevented, and councils are held accountable for their financial management."},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"Based on available information, the Order appears to have remained consistent with its original intent of regulating the establishment and operation of audit panels within Tasmanian local councils. Amendments noted in the table of amending instruments appear to be minor updates (e.g., the 2016 commencement date) rather than expansions or reductions in scope."},"complexity_factors":["The document provided is largely metadata and status information rather than substantive legislative text, limiting full analysis","As a subordinate instrument (an Order under the Local Government Act 1993), it operates within a broader legislative framework that must be understood alongside it","Audit panel governance can involve technical concepts around financial oversight, independence requirements, and reporting obligations","However, the subject matter (council audit panels) is relatively narrow and well-defined in scope","The Order has been stable since 2016 with minimal amendments, suggesting low ongoing complexity"],"plain_english_summary":"This Order requires Tasmanian local councils to establish independent audit panels and sets rules for their composition and operation. It affects councils, councillors, staff, appointed independent members, and ultimately ratepayers by creating a formal, independent check on council finances, internal controls and risk management.\n\nIt matters because it strengthens financial oversight and public accountability over how council funds are managed."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Order implements and details requirements in the Local Government Act 1993 (notably the matters panels must consider under s85A) by specifying membership, procedures, duties and resourcing. It clarifies how required audit panels should operate without expanding or narrowing which councils are subject to the Act's core audit-panel obligation."},"complexity_factors":["Direct cross-references to the Local Government Act 1993 (e.g. s85 and s85A) require reading the Act alongside the Order.","Detailed eligibility and composition rules for panels, including minimum independent membership and prohibitions on certain council officers (clause 5).","A quorum rule that also requires presence of an independent person to validate meetings (clause 11(4)).","Administrative obligations: minimum number of meetings, annual work plan, minutes, and possible private meetings (clauses 10–11).","Reporting and notification duties to the Director and to the council, and requirement to provide written review reports (clauses 8 and 12).","Councils retain discretion over appointments, charters (limited to administrative matters), and remuneration for independent members, creating variable compliance burdens (clauses 5(5), 7(2), 9).","Resource and secretariat obligation placed on councils (clause 13) which creates direct funding and administrative costs."],"plain_english_summary":"This order prescribes how local council audit panels must operate: who may serve, minimum independent membership, chairing, terms, meeting frequency and quorum, the matters panels must review, reporting and notification duties, and that councils must provide funding and secretariat support. It affects councils, councillors, council employees and independent members by creating appointment, meeting, reporting and remuneration rules. The instrument is presented as strengthening financial oversight; mechanically it imposes administrative and payment costs on councils, restricts cross-council eligibility and leaves councils discretion in selecting and paying independents."}},"importantCases":[],"_links":{"self":"/api/acts/local-government-audit-panels-order-2014","history":"/api/acts/local-government-audit-panels-order-2014/history","analysis":"/api/acts/local-government-audit-panels-order-2014/analysis","conflicts":"/api/acts/local-government-audit-panels-order-2014/conflicts","importantCases":"/api/acts/local-government-audit-panels-order-2014/important-cases","documents":"/api/acts/local-government-audit-panels-order-2014/documents"}}