The Inspectorate conducts both council-specific governance examinations and broad reviews of systemic or thematic issues identified during council visits, investigations or feedback from the sector or the general community.
Examinations and audits of council governance arrangements are a key proactive function of the Inspectorate in assessing the effectiveness of councils’ risk management and governance processes. The objective of this function is to ensure council operating procedures are compliant with relevant legislation and avoid breaches of the Act.
The Inspectorate has a proactive function to encourage better governance in councils, and a reactive role in reviewing governance procedures.
During investigations into Wyndham City Council in 2016–17, the Inspectorate detected many issues with councillors’ interest returns, and subsequently undertook a comprehensive review of councillors’ personal interest returns across Victoria to determine the overall level of compliance. The review also allowed the Inspectorate to provide more informed input into the Local Government Act 2020.