The ANAO has assessed the governance of the Northern Land Council.

The Australian National Audit Office (ANAO) has released a new report focusing on the governance of the Northern Land Council (NLC), shedding light on its operations, effectiveness, and adherence to legislative obligations.

The Aboriginal Land Rights (Northern Territory) Act 1976 establishes four Northern Territory (NT) Land Councils, corporate Commonwealth entities tasked with representing Aboriginal interests in their respective regions and aiding in the management of Aboriginal land.

The Land Councils must adhere to the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).

Furthermore, the Native Title Act 1993 designates the Land Councils as Native Title Representative Bodies, recognising the rights of Indigenous people to land and waters based on their traditional laws and customs.

The Northern Land Council (NLC), established in 1973, represents the NT's northern Aboriginal population. 

It is composed of 83 members and a 14-member Executive Council. Funding for its operations comes from various sources, including government grants, native title programs, special purpose grants, and revenues from land use.

The ANAO conducted the performance audit as part of a series of assessments on NT Land Councils' governance. 

The goal was to provide impartial assurance to Parliament regarding the effectiveness of the Land Councils' governance in fulfilling their legal obligations under the ALRA, NTA, and PGPA Act.

The audit confirmed that land Councils hold a pivotal role in safeguarding rights and facilitating benefits for their Indigenous constituents. 

The primary aim of the audit was to evaluate the effectiveness of the NLC's governance in accordance with the Aboriginal Land Rights (Northern Territory) Act 1976, the Native Title Act 1993, and the Public Governance, Performance and Accountability Act 2013.

The ANAO report indicates that the governance framework of the Northern Land Council aligns well with its requirements, but also highlighted areas that warrant attention:

Complex Delegation of Functions: The delegation of functions and powers under multiple legislations is intricate. Although the NLC has delegated its functions under the ALRA and NTA through two instruments of delegation, the purpose of the 'Financial Delegations Policy' lacks clarity and proper endorsement.

Governance Arrangements: While governance arrangements mostly comply with legislative requirements, inadequate record-keeping affects transparency in processes such as Council member nominations. Additional transparency measures in decision-making arrangements are advisable. The NLC's commitment to reviewing Council member selection methods remains unmet.

Resource Management: The NLC has generally established an appropriate risk management framework and policy structure. However, there's room for improvement in finalising policies, enhancing training, and improving risk reporting. The fraud control system falls short of Commonwealth fraud rule requirements, though conflict of interest declaration mechanisms are sound.

Reporting and Oversight: Although the NLC's Corporate Plan and Annual Report align with relevant acts, performance reporting could be improved. While the Audit Committee is appropriately established, its performance reporting review is inadequate, and weaknesses in mandatory reporting to the NLC accountable authority were identified. The internal audit function is currently in development.

The full report is accessible here.