notice of meeting of the audit committee - city of burnside
TRANSCRIPT
Notice of Meeting of the Audit Committee
NOTICE IS HEREBY GIVEN in accordance with Section 87 of the Local Government Act 1999, that a meeting of the
MEETING OF THE AUDIT COMMITTEE
of the
CITY OF BURNSIDE
will be held in the Boardroom at the Civic Centre 401 Greenhill Road, Tusmore
on
Tuesday 15 April 2014 at 6.00 pm.
Light refreshments will be available in the Boardroom from 5.30 pm.
Paul Deb Chief Executive Officer
1
2
Audit Committee Meeting Agenda
Tuesday 15 April 2014 at 6.00 pm Boardroom, 401 Greenhill Road, Tusmore
Members: Councillor Osterstock - Chair Mayor, David Parkin Councillor Cornish Mr Andrew Blaskett Ms Lisa Scinto
1. Apologies 2. Leave of Absence 3. Confirmation of the Minutes
That the Minutes of the meeting of the Audit Committee held on 5 February 2014 be taken as read and confirmed.
4 Governance Critical Dates Report p5
Forward Agenda p8 Action List p10 Internal Audit – Status Report p18 Council Policy Review Tracking p21
5. Reports 5.1 Audit Committee Terms of Reference (Operational) p31
Attachment A p35
5.2 Draft Long Term Financial Plan 2015 – 2024 (Strategic) p47 Attachment A p56 Attachment B p62 Attachment C p65
Attachment D p67
5.3 Regional Subsidiary 2013/14 Periodical Financial Results (Operational) p69 Attachment A p73 Attachment B p87 Attachment C p108
5.4 Business Services Review Finance Department - Report 2: Payroll
(Operational) p113 Attachment A p115
3
Audit Committee Agenda 15 April 2014
5.5 Business Services Review Finance Department - Report 6: Accounts Receivable and Account Payable Functions (Operational) p133
Attachment A p136 5.6 Update to Risk Management Policy (Strategic) p151 Attachment A p153 Attachment B p154 5.7 Strategic Risk Register (Strategic) p159 Attachment A p161 5.8 WHS Management System Objective Appraisal (Strategic) p165 Attachment A p167 5.9 Update on 2013 Local Government Association Mutual Liability Scheme
(LGAMLS) Risk Management Review (Strategic) p173 Attachment A p175 5.10 Policy Review – Complaint Handling Policy (Operational) p179 Attachment A p182 Attachment B p190
6. Confidential Items
Nil
7. Other Business
Update on the Scope the External Audit for 2014/15 and Audit Management Letter
8. Closure
4
GO
VER
NA
NC
E C
RIT
ICA
L D
ATE
S TA
BLE
July
201
3 –
June
201
4 N
ote:
Ref
eren
ce to
the
Act r
efer
s to
the
Loca
l Gov
ernm
ent A
ct 1
999
and
Loca
l Gov
ernm
ent (
Gen
eral
) Reg
ulat
ions
199
9 un
less
oth
erw
ise
indi
cate
d.
D
ate
Task
A
ct R
efer
ence
A
ctio
n/co
mm
ent
30 S
epte
mbe
r –
31 M
ay (I
nclu
sive
) N
ext d
ue
Febr
uary
201
4
Perio
d du
ring
whi
ch a
reg
iona
l su
bsid
iary
mus
t at
lea
st
twic
e co
nsid
er
a re
port
show
ing
a re
vise
d fo
reca
st
of
oper
atin
g &
capi
tal
inve
stm
ent
activ
ities
for
the
rel
evan
t fin
anci
al y
ear.
Reg
iona
l sub
sidi
arie
s:
East
ern
Hea
lth A
utho
rity
East
ern
Was
te M
anag
emen
t Aut
horit
y H
ighb
ury
Land
fill A
utho
rity
Reg
ulat
ion
9(1)
(a) o
f the
Loc
al
Gov
ernm
ent (
Fina
ncia
l Man
agem
ent)
Reg
ulat
ions
201
1
Mos
t rec
ent m
ater
ial w
ill be
pro
vide
d at
th
e Fe
brua
ry 2
014
Audi
t Com
mitt
ee
mee
ting.
30 S
epte
mbe
r –
31 M
ay (I
nclu
sive
) N
ext d
ue
Febr
uary
201
4
Perio
d du
ring
whi
ch a
Cou
ncil
mus
t at
leas
t tw
ice
cons
ider
a
repo
rt sh
owin
g a
revi
sed
fore
cast
of
oper
atin
g &
capi
tal
inve
stm
ent a
ctiv
ities
for t
he re
leva
nt fi
nanc
ial y
ear.
Reg
ulat
ion
9(1)
(a) o
f the
Loc
al
Gov
ernm
ent (
Fina
ncia
l Man
agem
ent)
Reg
ulat
ions
201
1
30 N
ovem
ber –
15
Mar
ch
(incl
usiv
e)
Perio
d in
whi
ch a
cou
ncil,
cou
ncil
subs
idia
ry o
r reg
iona
l su
bsid
iary
mus
t con
side
r a re
port
show
ing
a re
vise
d fo
reca
st o
f eac
h ite
m s
how
n in
its
budg
eted
fina
ncia
l st
atem
ents
for t
he re
leva
nt fi
nanc
ial y
ear c
ompa
red
with
the
estim
ates
set
out
in th
e bu
dget
pre
sent
ed in
a m
anne
r co
nsis
tent
with
the
Mod
el F
inan
cial
Sta
tem
ents
. Th
e re
port
mus
t als
o in
clud
e re
vise
d fo
reca
sts
for t
he
rele
vant
fina
ncia
l yea
r of t
he c
ounc
il’s o
pera
ting
surp
lus
ratio
, net
fina
ncia
l lia
bilit
ies
ratio
and
ass
et s
usta
inab
ility
ratio
com
pare
d w
ith e
stim
ates
set
out
in th
e bu
dget
pr
esen
ted
in a
man
ner c
onsi
sten
t with
the
note
in th
e M
odel
Fi
nanc
ial S
tate
men
ts e
ntitl
ed F
inan
cial
Indi
cato
rs
Reg
ulat
ion
9(1)
(b) &
(2) o
f the
Loc
al
Gov
ernm
ent (
Fina
ncia
l Man
agem
ent)
Reg
ulat
ions
201
1
5
Dat
e Ta
sk
Act
Ref
eren
ce
Act
ion/
com
men
t An
nual
ly a
s pa
rt of
Bud
get p
roce
ss
- Jan
uary
Com
men
ce p
repa
ratio
n of
dra
ft an
nual
bus
ines
s pl
an a
nd
budg
et.
Mee
t th
e ad
optio
n re
quire
men
ts
of
Sect
ion
123(
8);
an
annu
al b
usin
ess
plan
and
bud
get m
ust b
e ad
opte
d af
ter
31
Mar
ch b
ut b
efor
e 31
Aug
ust o
f the
fina
ncia
l yea
r.
Sect
ion
123(
3)
2014
/15
Budg
et P
roce
ss to
com
men
ce
Janu
ary
2014
Annu
ally
as
part
of B
udge
t pro
cess
-
Febr
uary
Und
erta
ke p
ublic
con
sulta
tion
on a
nnua
l bu
dget
to
mee
t ob
ligat
ions
und
er le
gisl
atio
n.
Sect
ions
123
(3) a
nd (4
). 20
14/1
5 Bu
dget
Pro
cess
to c
omm
ence
Fe
brua
ry 2
014.
20
14/1
5 Bu
dget
Con
sulta
tion
to
com
men
ce M
ay 2
014
Annu
ally
as
part
of B
udge
t pro
cess
- A
pril
Audi
t C
omm
ittee
to
pr
opos
e an
d pr
ovid
e in
form
atio
n re
leva
nt to
the
Cou
ncil's
ann
ual b
usin
ess
plan
Sect
ion
126(
4)(a
b)
Audi
t Com
mitt
ee to
revi
ew L
TFP
Febr
uary
201
4 Au
dit C
omm
ittee
to re
view
dra
ft AB
P Ap
ril 2
014
Annu
ally
as
part
of B
udge
t pro
cess
Dec
lara
tion
of g
ener
al ra
te.
Cou
ncil
to d
eter
min
e w
heth
er t
o fix
max
imum
incr
ease
s in
ge
nera
l rat
es o
n pr
inci
pal p
lace
of r
esid
ence
Sect
ion
153(
3) &
153
(5)
Afte
r 1 J
une
and
befo
re 3
1 Au
gust
.
Annu
ally
as
pa
rt of
Bud
get p
roce
ss
Cou
ncil
to d
eter
min
e ra
te p
aym
ent d
ates
in S
epte
mbe
r, D
ecem
ber,
Mar
ch a
nd J
une
Sect
ion
181(
1)
Annu
ally
=
May
/Jun
e
Elec
ted
Mem
bers
’ Ann
ual T
rain
ing
Plan
Se
ctio
n 80
A
Rep
ort t
o C
ounc
il -
Febr
uary
201
4 m
eetin
g
Elec
ted
Mem
bers
’ Ann
ual T
rain
ing
Plan
(C
ounc
il M
eetin
g in
May
)
Annu
ally
– 1
Jun
e
Earli
est d
ate
for r
egio
nal s
ubsi
diar
ies
to a
dopt
bud
get f
or
ensu
ing
finan
cial
yea
r
Sche
dule
2, c
laus
e 25
Annu
ally
as
part
of B
udge
t pro
cess
(J
une/
July
)
Gov
ernm
ent G
azet
te a
nd lo
cal n
ewsp
aper
not
ice
of
adop
tion
of v
alua
tions
/dec
lara
tion
of ra
te
Sect
ion
167(
6) a
nd 1
70
Gov
ernm
ent G
azet
te n
otic
e Ju
ly 2
013
East
ern
Cou
rier J
uly
2013
Annu
ally
=Ju
ly
All
dele
gatio
ns
inst
rum
ents
m
ade
purs
uant
to
S
ectio
n 44
sho
uld
be re
view
ed a
t lea
st o
nce
in e
very
fina
ncia
l yea
r.
Sect
ion
44(6
) R
evie
wed
in 2
7 Au
gust
201
3; J
anua
ry
2014
6
Dat
e Ta
sk
Act
Ref
eren
ce
Act
ion/
com
men
t Fe
brua
ry -
April
Pr
epar
atio
n of
map
s an
d te
chni
cal d
escr
iptio
n fo
r rev
ised
w
ard
boun
darie
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m E
lect
or R
epre
sent
atio
n R
evie
w.
12
Cer
tific
atio
n w
as re
ceiv
ed fr
om th
e El
ecto
ral C
omm
issi
on o
n th
e 8
Janu
ary
2013
.
12/1
2/20
13
Gaz
etta
l of E
lect
or R
epre
sent
atio
n R
evie
w a
nd m
aps
of
chan
ged
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d bo
unda
ries
12(1
5)
Gaz
ette
not
ice
was
pub
lishe
d on
the
7,
Mar
ch 2
013.
7
Dataworks/Audit Committee/Audit Committee - Forward Agenda
2014
Meeting Date Reports Resolution
Number Responsible Officer
April 2014 Regional Subsidiary 2012/13 Periodical Financial Results - YTD
A0117 6/10/2009
CFO
Audit Management Letter Status Update
2012/13 CFO
Internal Policy & Procedure Framework A0251 GOV Review of Draft Annual Business Plan CFO Risk Management Policy and Risk
Management Framework – Annual Review. A0225 7/2/2012 A0296 3/4/13 A0340 4/12/13
CP & RC /IAM
Local Government Mutual Liability Scheme – Risk Management Review
A0340 CP & RC/IAM
Internal Audit Projects IAM Long Term Financial Plan - Assumptions CFO WHS Management System Objective
Appraisal (5.9) A0336 CP & RC
Long Term Financial Plan CFO Risk Register (Stephen) A0296 CP & RC Business Service Review Finance
Department – Report 2: Payroll A0355 CFO
Business Service Review Finance Department – Report 6: Accounts Receivable and Accounts payable Function
A0356 CFO
June 2014 Good Governance Assessment Program –
Progress Report A0335 4/12/13
GO
External Auditor’s Report 2012/13 Internal Revenue Review A0304 CFO Scope of External Audit for 2014/15 CFO Procurement Policy MP
GMCS General Manager Corporate Services Gov Governance Officer MCE Manager Community Engagement CFO Chief Finance Officer MODG Manager Organisational Development and Governance IAM Internal Audit Manager MIS Manager Information Systems MP Manager Procurement CP & RC Corporate Planning and Risk Coordinator
8
Dataworks/Audit Committee/Audit Committee - Forward Agenda
2015 Meeting Date
Reports Resolution Number
Responsible Officer
Feb 2015 Review of Audit Committee Activities 2014
9
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R
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isk
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the
Rep
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e re
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2.
That
the
upda
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Ris
k M
anag
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be e
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by th
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Com
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3.
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the
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Ong
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2012
In
tern
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Pro
cedu
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ram
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.5)
1.
That
the
Rep
ort b
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2.
That
Adm
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tratio
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Inte
rnal
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Cou
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Cou
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that
the
Cou
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Polic
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that
are
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iew
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udit
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at th
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epor
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rece
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. 2.
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dit C
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reco
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ends
to C
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at m
easu
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ken
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3.
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. 2.
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min
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isk
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dit c
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an a
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3.
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the
Adm
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port
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mer
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tegi
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erat
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isk
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4.
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Inte
rnal
Aud
it Pl
an b
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vise
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ens
ure
that
the
prio
ritie
s of
the
risk
regi
ster
hav
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en c
onsi
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d.
5.
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the
Stra
tegi
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isk
Reg
iste
r be
deve
lope
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d br
ough
t bac
k to
the
Audi
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the
inte
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Inte
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Th
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rece
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. 2.
Th
at A
dmin
istra
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prov
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an
upda
te o
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tern
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udit
Fees
& C
harg
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Rev
iew
at t
he A
ugus
t 201
3 m
eetin
g of
the
Audi
t Com
mitt
ee.
As
set R
eval
uatio
n Pr
ojec
t – P
rogr
ess
Rep
ort (
4.4)
CFO
Ju
ne
A030
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Rep
ort t
o Au
dit
Com
mitt
ee in
Ju
ne 2
014
7/8/
13
Rev
isio
n of
Inte
rnal
Aud
it Pl
an (4
.6)
1.
That
the
Rep
ort b
e re
ceiv
ed.
2 Th
at th
e 3-
Year
Inte
rnal
Aud
it Pl
an b
e am
ende
d as
follo
ws:
2.
1 R
e-sc
hedu
le th
e fo
llow
ing
busi
ness
ser
vice
revi
ew fr
om 2
013/
14 to
20
14/1
5:
2.1.
1 Pr
ocur
emen
t & C
ontra
cts
3 R
e-sc
hedu
le th
e fo
llow
ing
six
inte
rnal
aud
it pr
ojec
ts fr
om 2
013/
14 to
201
4/15
: 3.
1 C
ontra
ct M
anag
emen
t 3.
2 G
rant
-Fun
ded
Prog
ram
s 3.
3 En
terp
rise
Ris
k M
anag
emen
t 3.
4 C
ounc
il Su
bsid
iarie
s (s
ubsi
diar
y to
be
sele
cted
) 3.
5 C
usto
mer
Man
agem
ent
3.6
Rev
iew
of N
on F
ull-T
ime
Equi
vale
nt (F
TE) R
esou
rces
4
Com
plet
ely
rem
ove
the
follo
win
g tw
o in
tern
al a
udit
proj
ects
: 4.
1 As
set M
anag
emen
t II;
and
4.1
Dev
elop
men
t App
licat
ion
Proc
ess.
5
That
the
Proc
urem
ent I
nter
nal A
udit
Proj
ect c
urre
ntly
sch
edul
ed fo
r fut
ure
year
s be
und
erta
ken
in 2
013/
14.
IAM
A031
7 •
Not
ed
7/8/
13
Bus
ines
s Se
rvic
e R
evie
w –
Fin
ance
Dep
artm
ent –
Rep
ort 1
Dep
artm
ent
CFO
D
ec
A032
1 •
Sum
mar
y in
12
J:\G
MC
CS
\Age
ndas
& M
inut
es\A
udit
Com
mitt
ee\2
014\
2) 1
5 A
pril
2014
\4 A
udit
Com
mitt
ee A
ctio
n Li
st.d
ocx
MTG
R
ESO
LUTI
ON
//REQ
UES
T W
HO
D
UE
RES
N
O.
CO
MM
ENT
Stru
ctur
e (5
.1)
1.
That
the
Rep
ort b
e re
ceiv
ed.
2.
That
the
Inte
rnal
Aud
it R
epor
t – B
usin
ess
Serv
ice
Rev
iew
Fin
ance
D
epar
tmen
t – R
epor
t 1: D
epar
tmen
t Stru
ctur
e be
end
orse
d by
the
Audi
t C
omm
ittee
. 3.
Th
at th
e In
tern
al A
udit
Rep
ort –
Bus
ines
s Se
rvic
e R
evie
w F
inan
ce
Dep
artm
ent -
Rep
ort 1
: Dep
artm
ent S
truct
ure
be p
rese
nted
to th
e 27
Aug
ust
2013
mee
ting
of C
ounc
il.
4.
That
a R
epor
t be
pres
ente
d to
the
Audi
t Com
mitt
ee a
t the
Dec
embe
r 201
3 m
eetin
g de
tailin
g pr
ogre
ss o
f the
impl
emen
tatio
n of
the
reco
mm
enda
tions
ou
tline
d in
the
Inte
rnal
Aud
it R
epor
t – B
usin
ess
Serv
ice
Rev
iew
Fin
ance
D
epar
tmen
t – R
epor
t 1: D
epar
tmen
t Stru
ctur
e.
revi
sed
date
Ju
ne
Dec
embe
r •
Furth
er
Rep
ort t
o Au
dit
Com
mitt
ee in
Ju
ne 2
014
4/12
/13
Goo
d G
over
nanc
e As
sess
men
t Pro
gram
– P
rogr
ess
Rep
ort (
5.8)
1.
Th
at th
e R
epor
t be
rece
ived
.
2.
That
a R
epor
t to
prov
ide
an u
pdat
e on
the
Goo
d G
over
nanc
e As
sess
men
t Pr
ogra
m b
e pr
esen
ted
to th
e Au
dit C
omm
ittee
mee
ting
in J
une
2014
.
GM
CS
Ju
ne
2014
A0
335
•
Furth
er re
port
to A
udit
Com
mitt
ee in
Ju
ne 2
014
4/12
/13
WH
S M
anag
emen
t Sys
tem
Obj
ectiv
e Ap
prai
sal (
5.9)
1.
Th
at th
e R
epor
t be
rece
ived
. 2.
It
is re
com
men
ded
an u
pdat
e on
the
prog
ress
of t
he L
ocal
Gov
ernm
ent
Asso
ciat
ion
Wor
kers
Com
pens
atio
n Sc
hem
e Ac
tion
Plan
for N
on-c
onfo
rmin
g El
emen
ts b
e pr
esen
ted
to th
e Ap
ril 2
014
mee
ting
of th
e Au
dit C
omm
ittee
.
GM
CS
Ap
ril
A033
6
•
Furth
er re
port
to A
udit
Com
mitt
ee in
Ap
ril 2
014
4/12
/13
Loca
l Gov
ernm
ent M
utua
l Lia
bilit
y Sc
hem
e –
Ris
k M
anag
emen
t Rev
iew
(5.1
0)
1.
That
the
Rep
ort b
e re
ceiv
ed.
2.
That
an
upda
ted
Loca
l Gov
ernm
ent A
ssoc
iatio
n M
utua
l Lia
bilit
y Sc
hem
e -
GM
CS
Ap
ril
A034
0
•
Rep
ort t
o Au
dit
com
mitt
ee in
13
J:\G
MC
CS
\Age
ndas
& M
inut
es\A
udit
Com
mitt
ee\2
014\
2) 1
5 A
pril
2014
\4 A
udit
Com
mitt
ee A
ctio
n Li
st.d
ocx
MTG
R
ESO
LUTI
ON
//REQ
UES
T W
HO
D
UE
RES
N
O.
CO
MM
ENT
Ris
k M
anag
emen
t Rev
iew
- D
ata
and
Prof
ile R
epor
t 201
3 be
pro
vide
d at
the
April
201
4 m
eetin
g of
the
Audi
t Com
mitt
ee fo
r con
side
ratio
n.
April
201
4
4/12
/13
Exte
rnal
Aud
itor’s
Rep
ort 2
012/
13 (5
.1)
1.
That
the
Rep
ort b
e re
ceiv
ed.
2.
That
the
Adm
inis
tratio
n w
ork
with
the
Exte
rnal
Aud
itors
to fi
nalis
e th
e dr
aft
Exte
rnal
Aud
itor’s
Rep
ort.
3.
That
the
revi
sed
Exte
rnal
Aud
itor’s
Rep
ort r
emai
ns a
sta
ndin
g ite
m o
n th
e Au
dit C
omm
ittee
Age
nda
to p
rovi
de a
n up
date
of p
rogr
ess
until
fully
im
plem
ente
d.
CFO
Ap
ril
A034
1 •
Rep
ort t
o Au
dit
com
mitt
ee in
Ap
ril 2
014
4/12
/13
Perf
orm
ance
of I
ndep
ende
nt A
udito
r Th
at a
Rep
ort o
n th
e pe
rform
ance
of t
he In
depe
nden
t Aud
itor a
nd a
ny
reco
mm
enda
tions
, to
be p
rovi
ded
to th
e Au
dit C
omm
ittee
at t
he F
ebru
ary
2014
m
eetin
g.
GM
CS
Ap
ril
A0
343
•
Rep
ort t
o Au
dit
com
mitt
ee in
Ap
ril 2
014
4/12
/13
St
atus
of t
he In
tern
al C
ontr
ol F
ram
ewor
k Th
at a
repo
rt on
the
stat
us o
f the
Inte
rnal
Con
trol F
ram
ewor
k in
clud
ing
feed
back
fro
m th
e Au
dito
r as
to th
e ef
fect
iven
ess
of th
e ev
iden
ce o
f the
inte
rnal
con
trols
be
prov
ided
to th
e Au
dit C
omm
ittee
at t
he F
ebru
ary
2014
mee
ting.
GM
CS
Fe
b A0
344
• R
epor
t to
Audi
t co
mm
ittee
in
Feb
2014
•
Arra
nge
mee
ting
with
Au
dito
rs
4/12
/13
Aud
it C
omm
ittee
– T
erm
s of
Ref
eren
ce
That
the
Audi
t com
mitt
ee in
form
s C
ounc
il th
at th
e C
omm
ittee
will
revi
ew th
e Au
dit
Com
mitt
ee T
erm
s of
Ref
eren
ce w
ith th
e vi
ew o
f pro
vidi
ng C
ounc
il w
ith a
ser
ies
of
reco
mm
enda
tions
of p
ropo
sed
chan
ges
to b
e im
plem
ente
d at
the
end
of th
e cu
rren
t Cou
ncil
term
.
GM
CS
Fe
b A0
345
•
Rep
ort t
o Au
dit
com
mitt
ee in
Fe
b 20
14
• R
epor
t to
Cou
ncil
14
J:\G
MC
CS
\Age
ndas
& M
inut
es\A
udit
Com
mitt
ee\2
014\
2) 1
5 A
pril
2014
\4 A
udit
Com
mitt
ee A
ctio
n Li
st.d
ocx
MTG
R
ESO
LUTI
ON
//REQ
UES
T W
HO
D
UE
RES
N
O.
CO
MM
ENT
Mar
ch.
• Fu
rther
repo
rt to
Aud
it C
omm
ittee
co
nfirm
ing
chan
ge o
f Te
rms
of
Ref
eren
ce.
5/2/
2014
Ex
tern
al A
udito
r’s R
epor
t 201
2/13
(5.3
) 1.
Th
at th
e R
epor
t be
rece
ived
. 2.
Th
at th
e Ex
tern
al A
udito
r’s R
epor
t rem
ains
a s
tand
ing
item
on
the
Audi
t C
omm
ittee
Age
nda
to p
rovi
de a
n up
date
of p
rogr
ess
until
fully
im
plem
ente
d.
3.
That
the
upda
ted
Atta
chm
ent (
B) b
e in
clud
ed in
the
min
utes
.
CFO
A035
1 •
Ong
oing
5/2/
2014
B
usin
ess
Serv
ices
Rev
iew
Fin
ance
Dep
artm
ent -
Rep
ort 2
: Pa
yrol
l (5.
8)
1.
That
the
Rep
ort b
e re
ceiv
ed.
2.
That
a R
epor
t be
pres
ente
d to
the
Audi
t Com
mitt
ee a
t the
Jun
e 20
14
mee
ting
deta
iling
prog
ress
of t
he im
plem
enta
tion
of th
e re
com
men
datio
ns o
utlin
ed in
the
Inte
rnal
Aud
it R
epor
t – B
usin
ess
Serv
ice
Rev
iew
Fin
ance
Dep
artm
ent –
Rep
ort 2
: Pay
roll.
CFO
Ap
ril
A035
5 •
Furth
er
Rep
ort t
o Au
dit
Com
mitt
ee in
Ap
ril
5/2/
2014
B
usin
ess
Serv
ices
Rev
iew
Fin
ance
Dep
artm
ent -
Rep
ort 6
: Ac
coun
ts
Rec
eiva
ble
and
Acco
unt P
ayab
le F
unct
ions
(5.9
) 1.
Th
at th
e R
epor
t be
rece
ived
. 2.
Th
at a
Rep
ort b
e pr
esen
ted
to th
e Au
dit C
omm
ittee
at t
he J
une
2014
m
eetin
g de
tailin
g pr
ogre
ss o
f the
impl
emen
tatio
n of
the
reco
mm
enda
tions
ou
tline
d in
the
Inte
rnal
Aud
it R
epor
t – B
usin
ess
Serv
ice
Rev
iew
Fin
ance
D
epar
tmen
t – R
epor
t 6: A
ccou
nts
Rec
eiva
ble
and
Acco
unts
Pay
able
CFO
Ap
ril
A035
6 •
Furth
er re
port
to A
udit
Com
mitt
ee in
Ap
ril
15
J:\G
MC
CS
\Age
ndas
& M
inut
es\A
udit
Com
mitt
ee\2
014\
2) 1
5 A
pril
2014
\4 A
udit
Com
mitt
ee A
ctio
n Li
st.d
ocx
MTG
R
ESO
LUTI
ON
//REQ
UES
T W
HO
D
UE
RES
N
O.
CO
MM
ENT
Func
tions
.
5/2/
2014
Pe
rfor
man
ce o
f Ind
epen
dent
Aud
itor (
6.1)
Th
at P
ursu
ant t
o se
ctio
n 90
(2) o
f the
Loc
al G
over
nmen
t Act
, 199
9 th
e C
omm
ittee
ord
ers
that
the
publ
ic b
e ex
clud
ed, w
ith th
e ex
cept
ion
of th
e Au
dit
Com
mitt
ee M
embe
rs, t
he E
lect
ed M
embe
rs o
f the
City
of B
urns
ide,
the
Actin
g C
hief
Exe
cutiv
e O
ffice
r, th
e Ac
ting
Gen
eral
Man
ager
, Cor
pora
te S
ervi
ces;
the
Gen
eral
Man
ager
, Urb
an S
ervi
ces,
the
Actin
g C
hief
Fin
anci
al O
ffice
r and
the
Exec
utiv
e O
ffice
r on
the
basi
s th
at it
will
rece
ive
and
cons
ider
the
Item
6.1
Pe
rform
ance
of I
ndep
ende
nt A
udito
r and
that
the
Com
mitt
ee is
sat
isfie
d th
at th
e pr
inci
ple
that
the
mee
ting
shou
ld b
e co
nduc
ted
in a
pla
ce o
pen
to th
e pu
blic
has
be
en o
utw
eigh
ed in
rela
tion
to th
e m
atte
r bec
ause
pur
suan
t to
sect
ion
90(3
)(d)
of
the
Act,
on th
e ba
sis
that
it c
onta
ins
com
mer
cial
info
rmat
ion
of a
con
fiden
tial
natu
re (n
ot b
eing
a tr
ade
secr
et) t
he d
iscl
osur
e of
whi
ch c
ould
reas
onab
ly b
e ex
pect
ed to
pre
judi
ce th
e co
mm
erci
al p
ositi
on o
f the
per
son
whi
ch s
uppl
ied
the
info
rmat
ion
or c
onfe
r a c
omm
erci
al a
dvan
tage
on
a th
ird p
arty
, and
to d
o so
w
ould
be
cont
rary
to th
e pu
blic
inte
rest
. 1.
C
onfid
entia
l Res
olut
ion.
2.
C
onfid
entia
l Res
olut
ion.
A0
359
1.
Purs
uant
to S
ectio
n 91
(7) a
nd (9
) of t
he L
ocal
Gov
ernm
ent A
ct,
1999
, the
Com
mitt
ee o
rder
s th
at:
1.1
the
Rep
ort,
Min
utes
and
Atta
chm
ents
rem
ain
conf
iden
tial o
n th
e ba
sis
that
they
con
tain
com
mer
cial
info
rmat
ion
of a
con
fiden
tial n
atur
e (n
ot
bein
g a
trade
sec
ret)
the
disc
losu
re o
f whi
ch c
ould
reas
onab
ly b
e ex
pect
ed to
pre
judi
ce th
e co
mm
erci
al p
ositi
on o
f the
per
son
whi
ch
GM
CS
A035
8 •
Furth
er
Rep
ort t
o Au
dit
Com
mitt
ee
16
J:\G
MC
CS
\Age
ndas
& M
inut
es\A
udit
Com
mitt
ee\2
014\
2) 1
5 A
pril
2014
\4 A
udit
Com
mitt
ee A
ctio
n Li
st.d
ocx
MTG
R
ESO
LUTI
ON
//REQ
UES
T W
HO
D
UE
RES
N
O.
CO
MM
ENT
supp
lied
the
info
rmat
ion
and
to d
o so
wou
ld b
e co
ntra
ry to
the
publ
ic
inte
rest
. 1.
2 th
e R
epor
t, M
inut
es a
nd A
ttach
men
ts w
ill no
t be
avai
labl
e fo
r pub
lic
insp
ectio
n fo
r the
per
iod
of fi
ve y
ears
at w
hich
tim
e th
is o
rder
will
be
revo
ked/
revi
ewed
by
the
Audi
t Com
mitt
ee /
Chi
ef E
xecu
tive
Offi
cer.
2.
That
if:
2.
1 the
per
iod
in re
spec
t of a
ny o
rder
mad
e un
der S
ectio
n 91
(7) o
f th
e Lo
cal G
over
nmen
t Act
199
9 la
pses
; or
2.
2 Cou
ncil
reso
lves
to re
voke
an
orde
r mad
e un
der S
ectio
n 91
(7) o
f th
e Lo
cal G
over
nmen
t Act
199
9; o
r th
e C
EO d
eter
min
es p
ursu
ant t
o de
lega
ted
auth
ority
that
the
orde
r be
revo
ked
an
y di
scus
sion
s of
Com
mitt
ee o
n th
at m
atte
r and
any
reco
rdin
g of
thos
e di
scus
sion
s ar
e to
no
long
er b
e tre
ated
as
conf
iden
tial.
17
IN
TER
NA
L A
UD
IT –
STA
TUS
REP
OR
T (M
arch
201
4)
4 In
tern
al A
udit
- Sta
tus
Rep
ort M
ar 1
4 - P
D F
INA
L 1
The
Inte
rnal
Aud
it –
Stat
us R
epor
t pro
vide
s a
sum
mar
y of
the
prog
ress
of i
nter
nal a
udit
proj
ects
(com
plet
ed a
nd in
pro
gres
s).
No.
Pr
ojec
ts
Com
plet
ed
Dat
e A
udit
Com
mitt
ee
Dat
e St
atus
2012
-13
Inte
rnal
Aud
it Pr
ojec
ts
1 12
-05
Bus
ines
s S
ervi
ce
Rev
iew
–
Libr
ary,
Le
arni
ng &
Vol
unte
ers
Apr
201
2 Ju
n 20
12
Feb
2013
A
ug 2
013
A 2
nd s
tatu
s re
port
was
pre
sent
ed a
t th
e A
udit
Com
mitt
ee m
eetin
g in
Aug
ust
2013
whi
ch
advi
sed
that
im
plem
enta
tion
was
co
mpl
eted
fo
r 27
re
com
men
datio
ns
with
on
ly
3 re
com
men
datio
ns to
be
prog
ress
ed.
Thi
s w
ill b
e im
plem
ente
d af
ter
the
trans
ition
to th
e O
ne
Libr
ary
Man
agem
ent S
yste
m (
LMS
) in
Feb
ruar
y an
d th
e lib
rary
lead
ersh
ip p
lann
ing
day
on 3
1 M
arch
. 2
12-0
6 In
tern
al P
olic
y &
Pro
cedu
re F
ram
ewor
k M
ar 2
012
Apr
201
2 W
e w
ere
advi
sed
by
the
Exe
cutiv
e Te
am
that
th
e au
dit
reco
mm
enda
tions
w
ere
fully
im
plem
ente
d.
3 12
-07
Long
-Ter
m F
inan
cial
Pla
n M
ay 2
012
Aug
201
2 W
e w
ere
advi
sed
by
the
Exe
cutiv
e Te
am
that
th
e au
dit
reco
mm
enda
tions
w
ere
fully
im
plem
ente
d.
4 12
-08
Man
agem
ent o
f Con
sulta
ncie
s M
ay 2
012
To b
e ta
bled
. Th
is a
udit
repo
rt w
ill b
e pr
esen
ted
at a
futu
re A
udit
Com
mitt
ee m
eetin
g.
5 12
-10
Fees
& C
harg
es R
evie
w
Aug
201
2 Ju
n 20
13
We
wer
e ad
vise
d by
th
e E
xecu
tive
Team
th
at
the
audi
t re
com
men
datio
ns
wer
e fu
lly
impl
emen
ted.
6
12-1
1 E
xter
nal C
ompl
ianc
e Ju
l 201
2 To
be
tabl
ed.
This
aud
it re
port
will
be
pres
ente
d at
a fu
ture
Aud
it C
omm
ittee
mee
ting.
7
13-0
1 B
usin
ess
Ser
vice
R
evie
w
– Fi
nanc
e 1
(Dep
artm
ent S
truct
ure)
D
ec 2
012
Aug
201
3 E
ndor
sed
by th
e A
udit
Com
mitt
ee a
t Aug
ust m
eetin
g. P
rese
nted
to a
nd e
ndor
sed
by C
ounc
il on
27
Aug
ust.
New
stru
ctur
e ha
s be
en i
mpl
emen
ted
with
the
exc
eptio
n of
the
Fin
ance
B
usin
ess
Partn
er ro
le (d
elay
ed d
ue to
an
ongo
ing
Wor
kCov
er c
laim
) and
Fin
ance
Tra
inee
role
.
Pro
gres
s re
port
to b
e pr
esen
ted
to th
e A
udit
Com
mitt
ee in
Jun
e 20
14.
8 13
-01
Bus
ines
s S
ervi
ce
Rev
iew
–
Fina
nce
2 (P
ayro
ll)
Dec
201
2 Ju
n 20
13
Aug
201
3 Fe
b 20
14
Two
stat
us r
epor
ts w
ere
pres
ente
d at
the
Aud
it C
omm
ittee
mee
tings
in
Aug
ust
2013
and
Fe
brua
ry 2
014
whi
ch a
dvis
ed t
hat
(i) t
here
was
sig
nific
ant
prog
ress
mad
e on
im
plem
entin
g au
dit r
ecom
men
datio
ns a
nd (i
i) ac
tion
plan
s w
ere
deve
lope
d fo
r tho
se re
com
men
datio
ns y
et to
be
impl
emen
ted.
Int
erna
l Au
dit
has
unde
rtake
n a
follo
w-u
p on
thi
s pr
ojec
t to
be
repo
rted
in
Apr
il 20
14.
9 13
-01
Bus
ines
s S
ervi
ce
Rev
iew
–
Fina
nce
3 (R
econ
cilia
tions
, P
roce
ssin
g of
Jou
rnal
s, G
oods
an
d Se
rvic
es
Tax
(GS
T),
Frin
ge
Ben
efits
Ta
x (F
BT)
and
Fin
ance
Sys
tem
s)
Dec
201
2 To
be
tabl
ed.
Goo
d pr
ogre
ss
mad
e an
d a
num
ber
of
reco
mm
enda
tions
ha
ve
been
im
plem
ente
d.
A te
mpo
rary
fin
ance
res
ourc
e ha
s be
en e
ngag
ed i
n th
is a
rea
and
a pr
ogre
ss r
epor
t w
ill b
e pr
esen
ted
to E
xecu
tive
in Q
4 20
13-1
4 an
d th
e A
udit
Com
mitt
ee in
Jun
e 20
14.
10
13-0
1 B
usin
ess
Ser
vice
R
evie
w
– Fi
nanc
e 4
(Per
form
ance
, O
pera
tiona
l, Fi
nanc
ial
&
Com
plia
nce
Man
agem
ent)
Dec
201
2 To
be
tabl
ed.
Goo
d pr
ogre
ss m
ade
and
a nu
mbe
r of
rec
omm
enda
tions
hav
e be
en i
mpl
emen
ted.
A d
raft
resp
onse
has
bee
n w
ritte
n w
ith a
ssis
tanc
e fro
m O
rgan
isat
iona
l Dev
elop
men
t and
Gov
erna
nce
and
Pro
cure
men
t & C
ontra
cts.
Thi
s is
to b
e re
view
ed b
y E
xecu
tive
befo
re p
rese
ntat
ion
to A
udit
Com
mitt
ee a
nd C
ounc
il in
Jun
e 20
14.
11
13-0
1 B
usin
ess
Ser
vice
R
evie
w
– Fi
nanc
e 5
(Fin
anci
al R
epor
ting)
D
ec 2
012
To b
e ta
bled
. G
ood
prog
ress
mad
e on
the
repo
rting
and
pre
sent
atio
n of
the
Ann
ual B
usin
ess
Pla
n an
d Lo
ng-
Term
Fin
anci
al P
lan
at W
orks
hops
, C
ounc
il an
d A
udit
Com
mitt
ee m
eetin
gs. W
ork
is o
ngoi
ng
18
IN
TER
NA
L A
UD
IT –
STA
TUS
REP
OR
T (M
arch
201
4)
4 In
tern
al A
udit
- Sta
tus
Rep
ort M
ar 1
4 - P
D F
INA
L 2
No.
Pr
ojec
ts
Com
plet
ed
Dat
e A
udit
Com
mitt
ee
Dat
e St
atus
as t
he r
estru
ctur
e of
the
Fin
ance
Dep
artm
ent
is i
mpl
emen
ted.
A f
orm
al r
espo
nse
to t
his
Bus
ines
s R
evie
w h
as n
ot b
een
draf
ted
as y
et. T
his
will
be
addr
esse
d in
Q3
/ Q4
2013
-14.
12
13
-01
Bus
ines
s S
ervi
ce
Rev
iew
–
Fina
nce
6 (A
ccou
nts
Rec
eiva
ble
& A
ccou
nts
Paya
ble)
D
ec 2
012
Jun
2013
A
ug 2
013
Feb
2014
Two
stat
us r
epor
ts w
ere
pres
ente
d at
the
Aud
it C
omm
ittee
mee
tings
in
Aug
ust
2013
and
Fe
brua
ry 2
014
whi
ch a
dvis
ed t
hat
(i) t
here
was
sig
nific
ant
prog
ress
mad
e on
im
plem
entin
g au
dit r
ecom
men
datio
ns a
nd (i
i) ac
tion
plan
s w
ere
deve
lope
d fo
r tho
se re
com
men
datio
ns y
et to
be
impl
emen
ted.
Int
erna
l Au
dit
has
unde
rtake
n a
follo
w-u
p on
thi
s pr
ojec
t to
be
repo
rted
in
Apr
il 20
14.
13
13-0
1 B
usin
ess
Ser
vice
R
evie
w
– Fi
nanc
e 7
(Rat
es)
Dec
201
2 A
ug 2
013
Feb
2014
Th
e pr
opos
ed a
udit
reco
mm
enda
tions
wer
e en
dors
ed b
y th
e E
xecu
tive
Team
, ap
prov
ed b
y C
ounc
il an
d fu
lly im
plem
ente
d.
14
13-0
2 B
usin
ess
Ser
vice
R
evie
w
- E
ngin
eerin
g S
ervi
ces
Mar
201
3 Fe
b 20
14
The
Eng
inee
ring
Dep
artm
ent
cont
inue
s to
app
ly t
he m
easu
res
that
hav
e al
read
y be
en m
et.
Th
is a
pplie
s pa
rticu
larly
in
resp
ect
of t
imin
g of
the
pro
ject
s an
d ke
epin
g ot
her
depa
rtmen
ts
info
rmed
of e
xpen
ditu
re a
nd p
roje
ct ti
min
g.
Sta
tus
upda
tes
of n
ote:
•
Min
or p
rogr
ess
has
been
mad
e on
som
e of
the
pro
cess
cha
nges
and
the
nex
t ar
ea o
f fo
cus
will
be
the
flow
char
t with
the
City
Dev
elop
men
t & S
afet
y D
epar
tmen
t. •
Uni
t rat
es in
clud
ed in
to th
e 20
14 re
view
. •
2014
/15
budg
et s
ubm
issi
on m
ade
for
mob
ility
sol
utio
n (in
co-
ordi
natio
n w
ith I
nfor
mat
ion
Ser
vice
s D
epar
tmen
t).
• S
ome
asse
t ow
ners
hip
issu
es h
ave
been
cla
rifie
d.
15
13-0
3 P
roje
ct M
anag
emen
t – B
urns
ide
Sw
imm
ing
Cen
tre
May
201
3 Ju
n 20
13 *
W
e w
ere
advi
sed
by
the
Stra
tegi
c P
roje
cts
Offi
cer
on
18
Oct
ober
20
13
that
th
e re
com
men
datio
ns fr
om th
is re
port
wer
e im
plem
ente
d.
16
13-0
4 Bu
sine
ss S
ervi
ce R
evie
w –
Dev
elop
men
t S
ervi
ces
Sep
201
3 To
be
tabl
ed.
This
aud
it re
port
was
pre
sent
ed t
o th
e E
xecu
tive
Team
in
Nov
embe
r 20
13.
Man
agem
ent
resp
onse
s ar
e pr
esen
tly b
eing
dra
fted.
2013
-14
Inte
rnal
Aud
it Pr
ojec
ts
17
14-0
1 P
roje
ct
Man
agem
ent
– G
lenu
nga
Com
mun
ity H
ub
Jul 2
013
Jul 2
013
* W
e w
ere
advi
sed
by
the
Stra
tegi
c P
roje
cts
Offi
cer
on
18
Oct
ober
20
13
that
th
e re
com
men
datio
ns fr
om th
is re
port
wer
e im
plem
ente
d.
18
14-0
4 B
usin
ess
Ser
vice
Rev
iew
– O
rgan
isat
iona
l D
evel
opm
ent &
Gov
erna
nce
Dec
201
3 To
be
tabl
ed.
The
two
audi
t rep
orts
on
(i) g
over
nanc
e an
d (ii
) pe
ople
and
cul
ture
are
bei
ng r
evie
wed
by
the
Exe
cutiv
e Te
am.
Man
agem
ent
resp
onse
s ar
e to
be
deve
lope
d w
ith t
he t
o-be
-app
oint
ed
Man
ager
– P
eopl
e &
Cul
ture
. 19
14
-05
Bus
ines
s S
ervi
ce R
evie
w –
Offi
ce o
f th
e C
EO
N
ov 2
013
To b
e ta
bled
. Th
is a
udit
repo
rt is
bei
ng re
view
ed b
y th
e E
xecu
tive
Team
.
20
14-0
6 En
terp
rise
Ris
k M
anag
emen
t D
ec 2
013
To b
e ta
bled
. Th
is a
udit
repo
rt is
bei
ng re
view
ed b
y th
e E
xecu
tive
Team
. M
anag
emen
t res
pons
es a
re to
be
deve
lope
d w
ith th
e to
-be-
appo
inte
d M
anag
er –
Peo
ple
& C
ultu
re.
21
14-0
7 W
ork
Hea
lth &
Saf
ety
Dec
201
3 To
be
tabl
ed.
This
aud
it re
port
is b
eing
rev
iew
ed b
y th
e E
xecu
tive
Team
. Man
agem
ent r
espo
nses
are
to b
e
19
IN
TER
NA
L A
UD
IT –
STA
TUS
REP
OR
T (M
arch
201
4)
4 In
tern
al A
udit
- Sta
tus
Rep
ort M
ar 1
4 - P
D F
INA
L 3
No.
Pr
ojec
ts
Com
plet
ed
Dat
e A
udit
Com
mitt
ee
Dat
e St
atus
deve
lope
d w
ith th
e to
-be-
appo
inte
d M
anag
er –
Peo
ple
& C
ultu
re.
22
14-0
8 Fo
llow
-Up
on B
usin
ess
Ser
vice
Rev
iew
of
the
Fina
nce
Dep
artm
ent –
Acc
ount
s P
ayab
le a
nd
Acc
ount
s R
ecei
vabl
e Fu
nctio
ns
Feb
2014
To
be
tabl
ed.
This
aud
it re
port
will
be
pres
ente
d at
a fu
ture
Aud
it C
omm
ittee
mee
ting.
23
14-0
9 Fo
llow
-Up
on B
usin
ess
Ser
vice
Rev
iew
of
the
Fina
nce
Dep
artm
ent –
Pay
roll
Func
tion
Feb
2014
To
be
tabl
ed.
This
aud
it re
port
will
be
pres
ente
d at
a fu
ture
Aud
it C
omm
ittee
mee
ting.
24
14-1
0 In
tern
al C
ontro
ls S
elf-A
sses
smen
t n/
a n/
a Th
e m
ain
obje
ctiv
e of
thi
s in
tern
al a
udit
is t
o pr
ovid
e re
ason
able
ass
uran
ce o
ver
the
self-
asse
ssm
ent u
nder
take
n by
the
City
of B
urns
ide
over
its
sign
ifica
nt fi
nanc
ial i
nter
nal c
ontro
ls fo
r th
e fin
anci
al y
ear e
nded
30
June
201
3. T
his
audi
t spe
cific
ally
cov
ers
inte
rnal
con
trols
rela
ted
to
the
purc
hasi
ng /
proc
urem
ent f
unct
ion.
Fie
ldw
ork
is p
rogr
essi
ng fo
r thi
s pr
ojec
t. 25
14
-12
Bus
ines
s S
ervi
ce
Rev
iew
–
Com
mun
ity
Ser
vice
s n/
a n/
a Th
is p
roje
ct is
pre
sent
ly a
t pla
nnin
g st
age.
* D
irect
to C
ounc
il.
20
1
CO
UN
CIL
PO
LIC
Y R
EVIE
W T
RA
CK
ING
As a
t 11
Mar
ch 2
014
As p
er A
udit
Com
mitt
ee R
esol
utio
n A0
251,
3/4
/12
in p
art:
That
the
Cou
ncil
Pol
icy
Rev
iew
Tra
ckin
g is
pro
vide
d to
the
Aud
it C
omm
ittee
as
a st
andi
ng
agen
da it
em u
ntil
all P
olic
ies
and
Pro
cedu
res
are
up to
dat
e.
KEY
: G
MC
S =
Gen
eral
Man
ager
Cor
pora
te S
ervi
ces
G
MC
DS
= G
ener
al M
anag
er C
omm
unity
& D
evel
opm
ent S
ervi
ces
G
MU
S =
Gen
eral
Man
ager
Urb
an S
ervi
ces
M
OD
G =
Man
ager
Org
anis
atio
nal D
evel
opm
ent &
Gov
erna
nce
C
EO =
Chi
ef E
xecu
tive
Offi
cer
Rev
iew
dat
e or
ado
pted
dat
e =
date
of C
ounc
il M
eetin
g N
FA =
no
furth
er a
ctio
n re
quire
d N
ote
all p
olic
ies
to b
e re
view
ed a
nnua
lly w
ith fu
ll re
view
to b
e co
mpl
eted
as
per “
Rev
iew
to C
ompl
ete”
dat
e.
As re
ques
ted
at th
e D
ecem
ber 2
012
mee
ting
of th
e Au
dit C
omm
ittee
, an
addi
tiona
l col
umn
to in
dica
te w
here
the
polic
y is
requ
ired
unde
r the
Loc
al
Gov
ernm
ent A
ct h
as b
een
adde
d to
this
tabl
e.
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
Acce
ss to
Dev
elop
men
t Doc
umen
tatio
n
GM
CD
S
25/0
9/20
12
C88
73
22/1
0/20
13
C94
47
Oct
201
4 Se
pt 2
014
Aged
Car
e
GM
CD
S
28/0
8/20
12
C88
42
27/0
8/20
13
C93
60
Aug
2014
Ju
l 201
4
21
2
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
Arts
and
Rec
reat
ion
GM
CD
S
28/0
8/20
12
C88
42
May
201
4 Ap
r 201
4 Th
is P
olic
y is
cu
rren
tly b
eing
re
view
ed a
nd w
ill m
ost l
ikel
y be
spl
it in
to tw
o ne
w p
olic
ies
– Ar
ts a
nd C
ultu
ral
Dev
elop
men
t Pol
icy
and
Phys
ical
Act
ivity
an
d Sp
orts
Pol
icy
Asse
t Man
agem
ent
G
MU
S
09/0
7/20
13
C92
77
Jul 2
014
Jun
2014
Bin
Rep
air a
nd R
epla
cem
ent
G
MU
S
21/7
/200
9 O
2554
Ju
n 20
14
May
201
4 Po
licy
to b
e re
voke
d
Blue
ston
e K
erbi
ng
GM
US
19
/6/2
007
Jul 2
014
Jun
2014
To
be
subs
umed
into
Pu
blic
Dom
ain
Stre
etsc
ape
Stra
tegy
Build
ing
Insp
ectio
n
GM
CD
S
26/6
/201
2 C
8762
22/1
0/20
13
C94
48
Oct
201
4 Se
pt 2
014
Bush
fire
Haz
ard
Man
agem
ent (
prev
ious
ly c
alle
d Fi
re
Prev
entio
n)
GM
CD
S
25/9
/201
2 C
8872
10/0
9/20
13
C94
00
May
201
4 Ap
r 201
4
Car
etak
er
91A
M
OD
G
22/2
/201
1 C
8116
Ap
r 201
4 (b
efor
e 20
14
coun
cil
elec
tion)
Apr 2
014
Wai
ting
on L
GA
mod
el p
olic
y to
be
rele
ased
Chi
ldre
n, Y
outh
and
Fam
ilies
GM
CD
S
28/8
/201
2 Au
g 20
14
Jul 2
014
22
3
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
C88
42
27/0
8/20
13
C93
61
City
of B
urns
ide
Flag
Fly
ing
GM
CS
17/2
/200
9 C
S165
4
13/0
8/20
13
C93
33
Aug
2014
Ju
l 201
4
Clo
sed
Circ
uit T
elev
isio
n (C
CTV
)
GM
CS
27
/7/2
010
C79
48
May
201
4 Ap
r 201
4
Cod
e of
Con
duct
for C
ounc
il M
embe
rs (p
revi
ousl
y C
ode
of C
ondu
ct fo
r Ele
cted
Mem
bers
`)
63
MO
DG
25
/10/
2011
C
8465
Cou
ncil
revi
ew /
adop
tion
no
long
er
requ
ired.
Legi
slat
ed
Cod
e 1/
9/20
13
– Pa
rliam
ent
revi
ews,
not
C
ounc
il
NA
G
rieva
nce
proc
edur
e as
soci
ated
with
Cod
e of
Con
duct
cur
rent
ly
with
GM
CS
for
revi
ew.
Cod
e of
Con
duct
for C
ounc
il Em
ploy
ees
(pre
viou
sly
Cod
e of
Con
duct
for E
mpl
oyee
s, S
taff
and
Asso
ciat
es)
110
MO
DG
25
/11/
2011
24/0
9/20
13
C94
09
Empl
oyee
s,
Staf
f &
Asso
ciat
es –
G
ifts
and
Bene
fits
Polic
y ad
opte
d 24
/09/
2013
C
9409
and
2.
7 am
ende
d
Legi
slat
ed
Cod
e 12
/2/2
014
– Pa
rliam
ent
revi
ews,
not
C
ounc
il
NA
An
y sp
ecifi
c cl
ause
s no
t inc
lude
d in
m
anda
ted
code
will
ne
ed to
be
incl
uded
in
eith
er a
n ex
istin
g or
new
Pro
toco
l
23
4
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
in th
e C
ode
Cou
ncil
revi
ew /
adop
tion
no
long
er
requ
ired.
Cod
e of
Pra
ctic
e –
Acce
ss to
Mee
tings
and
D
ocum
ents
Pu
blic
co
nsul
tatio
n re
quire
d. S
.92.
MO
DG
9/
8/20
11
Nov
201
5 (w
ithin
12
mon
ths
of
elec
tion)
Oct
201
5
Cod
e of
Pra
ctic
e –
Mee
ting
Proc
edur
es
Mee
ting
Reg
ulat
ions
7(
2); A
nnua
l re
view
m
anda
tory
.
MO
DG
29/0
1/20
13
C89
98
Jan
2014
D
ec 2
013
Cur
rent
ly w
ith G
MC
S fo
r rev
iew
bef
ore
goin
g to
Exe
cutiv
e.
Com
mun
ity G
arde
ns
G
MU
S
3/2/
2010
S7
313
May
201
4 Ap
r 201
4
Com
mun
ity G
rant
s
GM
CD
S
09/0
7/20
13
C92
74
May
201
4 Ap
r 201
4 D
istri
bute
d fo
r co
mm
ent i
n E
lect
ed
Mem
bers
Info
doc
13/0
3/20
14
Com
plai
nt H
andl
ing
270(
a1)(
b)
GM
CD
S
22/5
/201
2 C
8719
M
ar 2
014
Feb
2014
D
istri
bute
d fo
r co
mm
ent i
n E
lect
ed
Mem
bers
Info
doc
13/0
3/20
14
Cou
ncil
Wor
king
Par
ty
G
MC
S
10/0
9/20
13
C94
02
25/0
2/20
14
Sept
201
4 Au
g 20
14
24
5
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
C96
00
(May
or
exof
ficio
/ qu
orum
onl
y)
Dev
elop
men
t Del
egat
ions
G
MC
DS
25
/9/2
012
C88
77
24/0
9/20
13
C94
10
Sept
201
4 Au
g 20
14
Dis
cret
iona
ry R
ebat
es o
f Rat
es
G
MC
S
25/9
/201
2 C
8875
Se
pt 2
014
Aug
2014
Elec
ted
Mem
ber T
rain
ing
and
Dev
elop
men
t 80
A –
revi
ew
plan
ann
ually
G
MC
S
26/6
/201
2 C
8766
11
/02/
14
C95
85
Feb
2015
Ja
n 20
15
Elec
ted
Mem
bers
M
OD
G
19/6
/200
7 F1
565
Feb
2011
(C
EO)
Mar
201
4 Fe
b 20
14
Cur
rent
ly w
ith G
MC
S fo
r rev
iew
. (In
clud
es
Elec
ted
Mem
bers
R
oom
and
May
ors
Parlo
ur P
olic
y)
Elec
ted
Mem
bers
’ Allo
wan
ces
and
Bene
fits
76
(9)
Allo
wan
ces
tabl
e up
date
d an
nual
ly.
S.77
(1)(
b)
polic
y la
pses
at
each
ele
ctio
n.
MO
DG
12
/11/
2012
12/1
1/20
13
Nov
201
4 (A
llow
ance
s)
Dec
201
4 (C
ompl
ete
Polic
y)
Nov
201
4
Elec
ted
Mem
bers
’ Roo
m a
nd M
ayor
’s P
arlo
ur
M
OD
G
27/4
/201
0 C
7859
Ap
r 201
4 M
ar 2
014
Cur
rent
ly w
ith G
MC
S fo
r rev
iew
. (to
be
incl
uded
with
Ele
cted
25
6
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
Mem
bers
Pol
icy)
Elec
tion
Sig
ns (c
ontro
l of)
M
OD
G
22/2
/201
1 M
ay 2
014
Apr 2
014
Empl
oyee
s, S
taff
and
Asso
ciat
es –
Gift
s an
d Be
nefit
s (r
efer
als
o C
ode
of C
ondu
ct fo
r Cou
ncil
Empl
oyee
s)
C
EO
24/0
9/20
13
C94
09
Sept
201
4 Au
g 20
14
Envi
ronm
ent
GM
US
23
/04/
2013
C
9148
Ap
r 201
4 M
ar 2
014
Foot
path
G
MU
S
14/8
/201
2 C
8823
10/0
9/20
13
C94
01
Jul 2
014
Jun
2014
To
be
subs
umed
into
Pu
blic
Dom
ain
Stre
etsc
ape
Stra
tegy
Frau
d an
d C
orru
ptio
n Pr
even
tion
GM
CS
11
/9/2
012
C88
58
11/2
/14
C95
90
Feb
2015
Ja
n 20
15
Hed
ge E
ncro
achm
ent o
nto
Roa
d R
eser
ve
GM
US
19
/6/2
007
Jul 2
014
Jun
2014
To
be
subs
umed
into
Pu
blic
Dom
ain
Stre
etsc
ape
Stra
tegy
Hire
of C
omm
unity
Ope
n S
pace
and
Fac
ilitie
s
GM
CD
S
12/1
1/20
13
C94
81
Nov
201
4 O
ct 2
014
Inte
rnal
Fin
anci
al C
ontro
ls
125
GM
CS
28
/08/
2012
C
8846
Se
pt 2
014
Aug
2014
Inte
rnal
Rev
iew
of C
ounc
il D
ecis
ions
Pro
cedu
re
270(
1)
MO
DG
18
/1/2
011
C80
77
May
201
4 Ap
r 201
4
Kerb
side
Was
te M
anag
emen
t
GM
US
31
/7/2
012
C88
10
Jun
2014
M
ay 2
014
Incl
ude
revo
ke B
in
repa
ir an
d R
epla
cem
ent P
olic
y at
sam
e tim
e as
26
7
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
revi
ew
Leas
ing
and
Lice
nsin
g of
Com
mun
ity F
acilit
ies
GM
US
24
/01/
2012
IE
0005
12/1
1/20
13
C94
81
Nov
201
4 O
ct 2
014
Libr
ary
GM
CD
S
28/8
/201
2 C
8842
27/0
8/20
13
C93
76
Aug
2014
Ju
l 201
4
Mag
ill C
emet
ery
GM
US
19
/6/2
007
Sept
201
4 Au
g 20
14
Rev
iew
del
ayed
due
to
cha
nges
to th
e Bu
rial &
Cre
mat
ion
Reg
ulat
ions
201
3..
Med
ia
GM
CD
S
27/1
1/20
12,
C89
41
10/0
9/20
013
C93
91
Sept
201
4 Au
g 20
14
Nam
ing
of R
oads
and
Pub
lic R
eser
ves
21
9(5)
G
MU
S
27/7
/201
0 C
7942
M
ar 2
014
Feb
2014
El
ecte
d M
embe
rs
Info
doc
13/0
3/20
14
Occ
upat
iona
l Hea
lth, S
afet
y an
d W
elfa
re a
nd R
epor
t on
Occ
upat
iona
l Hea
lth E
xper
ienc
e an
d Pe
rform
ance
GM
CS
19
/6/2
007
Jun
2014
M
ay 2
014
This
is to
be
revo
ked
as it
is c
over
ed b
y ot
her f
orm
al re
porti
ng
proc
esse
s.
Ope
n Sp
ace
(incl
udes
Ope
n Sp
ace
Res
erve
s Fu
nd)
G
MU
S
20/1
0/20
09
F173
2 O
ct 2
014
Sept
201
4
Ord
er M
akin
g
May
nee
d pu
blic
co
nsul
tatio
n.
S.25
9(5)
GM
CD
S
25/9
/201
2 C
8876
12/1
1/13
Nov
201
4 O
ct 2
014
27
8
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
C94
79
Park
ing
GM
CD
S
10/7
/201
2,
C87
87
23/0
7/20
13
C93
18
11/0
3/20
14
C96
03
Mar
201
5 Fe
b 20
15
Petit
ions
MO
DG
09/0
8/20
11
May
201
4 Ap
r 201
4 R
evie
w a
s pa
rt of
R
evie
w o
f Cod
e of
Pr
actic
e Ac
cess
to
docu
men
ts.
Proc
eeds
from
Eco
nom
ic D
evel
opm
ent A
ctiv
ity
CEO
19
/6/2
007
Sept
201
4 Au
g 20
14
.
Proc
urem
ent
49
GM
CS
24
/4/2
012
C86
83
May
201
4
Prud
entia
l Pro
ject
Man
agem
ent
48(a
a1)
GM
CS
28
/8/2
012
C88
47
5/2/
2014
A0
352
Audi
t
11/0
2/20
14
C95
88
Feb
2015
Ja
n 20
15
Publ
ic C
onsu
ltatio
n (fo
rmer
ly C
omm
unity
C
onsu
ltatio
n)
50
GM
CD
S
April
201
3 (C
9122
) Ap
r 201
4 M
ar 2
014
Rat
ing
123
GM
CS
05
/02/
14
A034
9 11
/02/
14
C95
87
Feb
2015
Ja
n 20
15
Rec
ords
Man
agem
ent P
olic
y
GM
CS
15
/9/2
011
CC
S003
6 Ap
r 201
4 M
ar 2
014
28
9
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
Reg
ulat
ed a
nd S
igni
fican
t Tre
e As
sist
ance
GM
CD
S
24/7
/201
2 C
8802
24/0
9/20
13
C94
24
Sept
201
4 Ju
l 201
4
Req
uest
for S
ervi
ce
270(
a1)(
a)
GM
CD
S
22/5
/201
2,
C87
19
Apr 2
014
Mar
201
4
Ris
k M
anag
emen
t 13
4(4)
(b)
MO
DG
14
/02/
2012
C
8579
Ju
l 201
4 Ju
n 20
14
Rep
ort t
o Ap
ril 2
014
Audi
t Com
mitt
ee
Roa
d an
d Tr
affic
Man
agem
ent
GM
US
12/0
3/20
13
C90
78
13/0
8/20
13
C93
34
Aug
2014
Ju
l 201
4
Soci
al m
edia
GM
CD
S
25/9
/201
2,
C88
42
Mar
201
4 Fe
b 20
14
Spon
sors
hip
G
MC
DS
28
/08/
2012
C
8842
10/0
9/20
13
C93
92
Sept
201
4
Aug
2014
Tele
com
mun
icat
ions
Fac
ilitie
s on
Cou
ncil
Land
G
MU
S
19/6
/200
7 Se
pt 2
014
Aug
2014
Tree
Man
agem
ent
GM
US
26/0
2/20
13
C90
65
revi
ewed
but
no
t ado
pted
May
201
4
Apr 2
014
Publ
ic C
onsu
ltatio
n on
Urb
an T
ree
Stra
tegy
clo
ses
end
Mar
ch 2
014
Use
of R
oad
Res
erve
s fo
r Com
mer
cial
Pur
pose
s
GM
CD
S
28/8
/201
2,
C88
42
8/10
/201
3
Feb
2015
Ja
n 20
15
29
10
Polic
y Ti
tle
Req
uire
d un
der L
G A
ct
Res
pons
ibili
ty
Last
re
view
ed /
adop
ted
Nex
t rev
iew
D
ate
Rev
iew
to
be
Com
plet
e
Prog
ress
C
omm
ents
C94
37
25/0
2/20
14
C96
12
Vehi
cles
G
MC
S
11/1
0/20
11
CC
S004
4 M
ay 2
014
Apr 2
014
Verg
e D
evel
opm
ent
GM
US
19
/6/2
007
Jul 2
014
Jun
2014
To
be
subs
umed
into
Pu
blic
Dom
ain
Stre
etsc
ape
Stra
tegy
Volu
ntee
rs
GM
CD
S
25/9
/201
2,
C88
76
27/0
8/20
13
C93
62
Aug
2014
Ju
l 201
4
War
d Fo
rum
s
G
MC
DS
11
/9/2
012,
C
8858
Ap
r 201
4 M
ar 2
014
Cur
rent
ly w
ith G
M
Cor
pora
te S
ervi
ces
for r
evie
w
Wat
er S
ensi
tive
Urb
an D
esig
n
GM
US
27
/9/2
011
PHI0
064
Jul 2
014
Jun
2014
Wat
erco
urse
Man
agem
ent
GM
US
28
/05/
2013
C
9188
M
ay 2
014
Apr 2
013
Whi
stle
blow
er P
rote
ctio
n
G
MU
S
GM
CD
S
GM
US
23/0
4/20
13
C91
40
14/0
2/20
14
C95
86
Feb
2015
Ja
n 20
15
30
Audit Committee Agenda Item 5.1 15 April 2014 Item No: 5.1 To: Audit Committee Date: 15 April 2014 Author: Louise Miller Frost – General Manager, Corporate Services General Manager and Division
Louise Miller Frost – General Manager, Corporate Services
Contact: 8366 4205 Subject: AUDIT COMMITTEE TERMS OF REFERENCE (STRATEGIC) Attachments: A. Audit Committee Terms of Reference Prev. Resolution: C8044, 14/12/10
C8220, 27/4/11 C8496, 22/11/11 A0279, 7/8/12 C8840, 28/8/12 C9530, 10/12/13 A0350, 5/2/14 C9616, 25/2/14 C9621, 11/3/14 C9622, 11/3/14
Officer’s Recommendation
1. That the Report be received.
2. That members note the amended Terms of Reference for the City of Burnside Audit Committee.
Purpose
1. To provide Audit Committee members with the recently adopted Terms of Reference for the Audit Committee.
Strategic Plan
2. The following Strategic Plan provision is relevant:
“A financially sound Council that is accountable, responsible and sustainable”
Communications/Consultation
3. The following communication / consultation was undertaken during the review of the Audit Committee Terms of Reference:
3.1 The Local Government Association (LGA) commissioned Review of Audit Committee Operations – Final Report 2010.
3.2 LGA Financial Sustainability Information Paper 3 Audit Committees Revised January 2012.
3.3 Discussion with the acting Chief Executive Officer.
3.4 The report was presented to the Audit Committee meeting on 5 February 2014.
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Audit Committee Agenda Item 5.1 15 April 2014
3.5 Legal advice was obtained from Kelledy Jones Lawyers regarding the implications of changing the composition of the Audit Committee Membership, the need for continuity, the immediate appointment of a third Independent Member and the need for changes to the current Terms of Reference.
3.6 The terms of reference were adopted by City of Burnside at the meeting of 11 March 2014 (C9602).
Statutory
4. The following legislation is relevant in this instance:
Local Government Act, 1999, Sections 41 and 126
Local Government (Procedures at Meetings) Regulations, 2013
Local Government (Financial Management) Regulations 2011,
Changes to the membership of the Audit Committee need to be put to Council by resolution and voted upon, Part 4 Reg 26 (2) (b) of the Local Government (Procedures at Meetings) Regulations 2013.
Policy
5. There are no policy implications or requirements associated with this recommendation.
Risk Assessment
6. There are no risks associated with the recommendation.
Finance
7. There are no financial implications for the City of Burnside in respect of this recommendation.
Discussion
Background
8. The Local Government Act, 1999 (the Act) at section 126, requires each Council to have an Audit Committee; however they are actually established under section 41 of the Act. Audit Committees have no authority to act independently of Councils and can only act in areas covered by their Terms of Reference (see Attachment A for the current Audit Committee Terms of Reference).
9. At the 10 December 2013 meeting, Council resolved (C9530) in part:
That the Administration review the Terms of Reference of the Audit Committee, in conjunction with the Audit Committee including giving consideration to the matters highlighted in the document annexed hereto (Attachment B), and provide recommendations (including suggested amendments, if any) to Council in February 2014.
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Audit Committee Agenda Item 5.1 15 April 2014 10. The Administration undertook a preliminary review of the Terms of Reference using the
Audit Committee Terms of Reference (Council Agenda 10/12/13 Item No 11.2, Resolution C9530) as a foundation document, with consideration given to the model Terms of Reference for an Audit Committee.
11. The proposed Terms of Reference was presented to the Audit Committee at its 5 February 2014 meeting, to review and provide recommendations (including amendments, if any) for Council consideration.
12. At the 5 February 2014 meeting, the Audit Committee resolved (A0350):
1. That the Report be received.
2. That the Audit Committee recommends to Council that the Terms of Reference be endorsed with the only amendment being that the membership of the Audit Committee should remain as three Elected Members (including the Mayor) and two independent Members.
3. That the Audit Committee recommends to Council that the Terms of Reference of the Audit Committee be reviewed in November 2014 with a view that membership of the Audit Committee consist of three Elected Members (including the Mayor) and three Independent Members.
13. A Council report was presented at the meeting of 28 February 2014. A formal motion was carried that the matter lay on the table (C9616).
14. At the meeting of 11 March 2014, the matter was retrieved from the table (C9621) and Council resolved (C9622):
1. That the Report be received.
2. That, Council adopts the recommended Audit Committee Terms of Reference, with the following modifications:
2.1. to provide that the composition of the Audit Committee shall be five of whom a majority shall be persons who are not members of Council (“the Independent Members”).
2.2. to provide that the Mayor, if not a member on an ex officio basis, is to be a member of the Audit Committee.
2.3. to provide that the Presiding Member of the Committee shall be appointed by Council and shall be an Independent Member.
2.4. to provide that a quorum for a meeting of the Audit Committee shall be three of whom at least 2 must be independent members. If the Mayor is a member on an ex officio basis, the quorum is to be four of whom at least 2 must be independent members.
2.5 to remove all notes inserted as explanation, being attached to 3.2, 4.1,11.2.2, 11.6.2, and 11.6.3.
2.6 to include a transitional provision which defers the changed requirements of Clause 3, 4 and 5 of the Terms of Reference until the first meeting of Council following the 2014 election .
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Audit Committee Agenda Item 5.1 15 April 2014
2.7 to provide that ideally, the non-Mayor Elected Member representative will have experience in business, legal, audit or financial management/reporting knowledge and experience.
3. That the changed costs of the new Terms of Reference be included in the Draft Business Plan for 2014/2015.Council Minutes 11 March 2014.
4. That Administration undertakes a process to seek Expressions of Interest from interested persons and establishment of a Selection Panel to appoint a third Independent member on the City of Burnside Audit Committee no later than the 9 December 2014 Council meeting.
15. Attachment A is the Audit Committee Terms of Reference amended to reflect the changes indicated in C9602, both immediate, and those changes that are specified as coming into effect after the November 2014 election.
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Audit Committee
Terms of Reference 1. Establishment
1.1 Resolution C8044 of 14 December 2010: The Audit Committee of Council is established under Section 41 of the Local Government Act 1999 (the Act), for the purposes of Section 126 of the Act and in compliance with regulation 17 of the Local Government (Financial Management) Regulations 2011.
1.2 The Committee’s role is to report to Council and provide appropriate advice and recommendations on matters relevant to its Terms of Reference in order to facilitate decision making by the Committee and Council in relation to the discharge of its responsibilities.
1.3 The Audit Committee does not have executive powers or authority to implement actions in areas which management has responsibility and does not have any delegated financial responsibility. The Audit Committee does not have any management functions and is therefore independent from management.
1.4 Resolution C9602 of 11 March 2014
Clauses 3.1, 4.1 and 5.2 will discontinue from the first meeting of the new Council elected after the 2014 Council Election.
1.5 Resolution C9602 of 11 March 2014
Clauses 3.2 & 4.2 will commence at the first meeting of the new Council elected after the 2014 Council Election.
2. Objectives
2.1 The primary objective of the Audit Committee is to assist Council in the effective
conduct of its responsibilities for financial reporting, management of risk and maintaining a reliable system of internal controls.
2.2 The Audit Committee is established to assist the co-ordination of relevant activities of management, the internal audit function and the external auditor to facilitate achieving overall organisational objectives in an efficient and effective manner.
2.3 As part of Council’s Governance obligations to its community, Council has constituted an Audit Committee to facilitate:
2.3.1 the enhancement of the credibility and objectivity of internal and external
financial reporting;
2.3.2 effective management of financial and other risks and the protection of Council assets;
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2.3.3 compliance with laws and regulations as well as use of best practice and Governance guidelines;
2.3.4 the effectiveness of any audit functions; and
2.3.5 the provision of an effective means of communication between the external auditor, management and the Council.
3. Membership
3.1 Members of the Committee are appointed by Council. The Committee shall consist of three members who shall be Members of Council (one of whom is the Mayor) and two members who are not members of Council (the Independent Members). (Refer 1.4)
3.2 Members of the Committee are appointed by the Council. The Committee shall be five of whom a majority shall be persons who are not members of Council (“the Independent Members”). (Refer 1.5)
3.3 Ideally, the non-Mayor Elected Member representative will have experience in business, legal, audit or financial management / reporting knowledge and experience.
3.4 That the Mayor is to be a member of the Audit Committee on an ex-officio basis. (C9600 25/02/14)
3.5 That the Mayor, if not a member on an ex officio basis, is to be a member of the
Audit Committee. (C9602 2.2 11/03/14)
3.6 The Independent Members of the Committee must have recent and relevant financial, risk management, internal audit experience relevant to the functions of Council’s Audit Committee as determined by Council.
3.7 Only members of the Committee are entitled to vote in Committee meetings. Unless otherwise required (by the conflict of interest provisions in the Act) not to vote, each member must vote on every matter that is before the Committee for decision. The Presiding Member has a deliberative vote but does not, in the event of an equality of votes, have a casting vote.
3.8 All decisions of the Committee shall be made on the basis of a majority decision
of the members present.
3.9 In the event of a tied vote the members have not made a decision, the question is neither carried nor lost. If a vote is tied the matter may be referred back to the Committee (either with or without additional information to inform the debate and decision making) or to referred to Council for resolution.
3.10 The Chief Executive Officer, General Manager Corporate Services, General
Manager Community & Development Services, General Manager Urban Services and other Council employees as directed by the Chief Executive Officer may attend any meeting as observers and/or be responsible for preparing papers for the Committee.
3.11 Council’s external auditors and internal auditor’s may be invited to attend
meetings of the Committee. Council’s external auditor must attend meetings considering the draft annual financial report and results of the external Audit.
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3.12 Elected Member appointments to the Committee shall be for a period of twelve months from the date of appointment, or until the end of the term of the Council. Elected Members are eligible for reappointment at the end of their term.
3.13 The Independent Members shall be appointed for a period of 2 years,
commencing part-way through an election cycle, so that their terms overlap each Council election and provide some continuity. Independent Members are eligible for reappointment at the end of their term.
4. Presiding Member
4.1 The Presiding member of the Committee shall be appointed by the Council and shall be a member of the Council. (refer 1.4)
4.2 The Presiding Member of the Committee shall be appointed by Council and shall be an Independent Member.(Refer 1.5)
4.3 The Presiding Member’s appointment to the Committee shall be for a period of twelve months from the date of appointment, unless their term is due to expire within that period in which case the appointment will be until the date their appointment as an Independent Member is due to expire.
5. Sitting Fees
5.1 The Remuneration Tribunal Determination No. 6 of 2010 dated 23 August 2010 outlines various allowances for Council Members.
5.2 The annual allowance for an Elected Member who is the Presiding Member of one or more standing committees established by a council will be equal to one and a quarter (1.25) times the annual allowance for councilors of that council.(Refer 1.4)
5.3 The Independent Members are to be paid a sitting fee, per meeting, as
determined by Council.
5.4 The annual allowance for an Independent Member who is the Presiding Member of the Audit Committee will be equal to one and a quarter (1.25) times the Independent Member sitting fee per meeting, as determined by Council.
6. Secretarial Resources
6.1 The Chief Executive Officer shall provide sufficient administrative resources to the Committee to enable it to adequately carry out its functions.
7. Quorum 7.1 The quorum for a meeting of the Audit Committee shall be three, of whom at least
2 must be independent members. If the Mayor is present, the quorum is to be four of whom at least two must be independent members.
8. Frequency of Meetings
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8.1 The Committee shall meet at 6.00pm on the third Tuesday of February, April, June, August, October and November or as otherwise determined by Council (whether as the result of a motion upon notice in or an Officer’s Report to Council).
9. Notice of Meetings
9.1 A special meeting of the Committee may be called in accordance with the Act.
9.2 Notice of each meeting confirming the venue, time and date, together with an agenda of items to be discussed, shall be forwarded to each member of the Committee and observers, no later than three (3) clear days before the date of the meeting in accordance with Section 87 of the Act. Supporting papers shall be sent to Committee members (and to other attendees as appropriate) at the same time.
10. Minutes of Meetings
10.1 The Chief Executive Officer shall ensure that the proceedings and resolutions of all meetings of the Committee, including recording the names of those present and in attendance, are minuted and that the minutes otherwise comply with the requirements of the Local Government (Procedures at Meetings) Regulations 2000.
10.2 Minutes of Committee meetings shall be circulated within five (5) days after a meeting to all members of the Committee and members of the Council (in accordance with Section 91(3) of the Act).
11. Role of the Committee
11.1 Financial Reporting
11.1.1 The Committee shall monitor the integrity of the financial statements of the Council, including its Annual Report, reviewing significant financial reporting issues and judgements which they contain.
11.1.2 The Committee shall review and challenge where necessary:
a) the consistency of, and/or any changes to, accounting policies;
b) the methods used to account for significant or unusual transactions where different approaches are possible;
c) whether the Council has followed appropriate accounting standards and made appropriate estimates and judgements, taking into account the views of the external auditor;
d) the clarity of disclosure in the Council’s financial reports and the context in which statements are made; and
e) all material information presented with the financial statements.
11.2 Internal Controls and Risk Management Systems
The Committee shall:
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11.2.1 keep under review the effectiveness of the Council’s internal controls and risk management systems; and
11.2.2 review and recommend the approval, where appropriate, of any material to be included in the Annual Report concerning internal controls and risk management.
11.3 Whistle blowing
The Committee shall review the Council’s arrangements for its employees to raise concerns, in confidence, about possible wrongdoing in financial recording or reporting or other matters. The Committee shall ensure these arrangements allow independent investigation of such matters and appropriate follow-up action.
11.4 Strategic Management Plans and Annual Business Plans
The Committee shall propose and provide information relevant to, a review of the Council’s Strategic Management Plans or Annual Business Plan.
11.5 Other Investigations
The Committee shall, when necessary, propose and review the exercise of Council’s powers under Section 130A of the Local Government Act 1999, in relation to the conduct of Economy Audits that would not otherwise be addressed or included as part of an annual External Audit.
11.6 Internal Audit
The Committee shall:
11.6.1 monitor and review the effectiveness of the Council’s internal audit function in the context of the Council’s overall risk management system;
11.6.2 consider and make recommendation on the program of the internal audit
function and the adequacy of its resources and access to information to enable it to perform its function effectively and in accordance with the relevant professional standards;
11.6.3 review all reports on the Council’s operations from the internal auditors;
11.6.4 review and monitor management’s responsiveness to the findings and
recommendations of the internal auditor; and 11.6.5 where appropriate, meet the ‘head’ of internal audit at least once a year,
without management being present, to discuss any issues arising from the internal audits carried out. In addition, the head of internal audit shall be given the right of direct access to the Principle Member of the Council and to the Presiding Member of the Committee.
11.7 External Audit
The Committee shall:
11.7.1 oversee the selection process for the external auditors and make a recommendation in this regard to the Council;
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11.7.2 develop and implement a policy on the supply of non-audit services by the external auditor, taking into account any relevant ethical guidance on the matter;
11.7.3 consider and make recommendations to the Council, in relation to the
appointment, re-appointment and removal of the Council’s external auditor. If an auditor resigns the Committee shall investigate the issues leading to this and decide whether any action is required;
11.7.4 oversee Council’s relationship with the external auditor including, but not
limited to:
a) recommending the approval of the external auditor’s remuneration, whether fees for audit or non-audit services, and recommending whether the level of fees is appropriate to enable an adequate audit to be conducted;
b) recommending the approval of the external auditor’s terms of engagement, including any engagement letter issued at the commencement of each audit and the scope of the audit;
c) assessing the external auditor’s independence and objectivity
taking into account relevant professional and regulatory requirements and the extent of Council’s relationship with the auditor, including the provision of any non-audit services;
d) satisfying itself that there are no relationships (such as family,
employment, investment, financial or business) between the external auditor and the Council (other than in the ordinary course of business);
e) monitoring the external auditor’s compliance with legislative
requirements on the rotation of audit partners; and
f) assessing the external auditor’s qualifications, expertise and resources and the effectiveness of the audit process;
11.7.5 meet as needed with the external auditor. The Committee shall meet the
external auditor at least once a year, without management being present; to discuss the external auditor’s report and any issues arising from the audit;
11.7.6 review and make recommendations on the annual audit plan, and in
particular its consistency with the scope of the external audit engagement;
11.7.7 review the findings of the audit with the external auditor. This shall include
but not be limited to the following:
a) a discussion of any major issues which arose during the external audit;
b) any accounting and audit judgements; and
c) levels of errors identified during the external audit;
11.7.8 review the effectiveness of the external audit;
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11.7.9 review any representation letter requested by the external auditor before they are signed by management;
[Note that these representation letters are a standard practice of any audit and provide the auditor confirmation from management, (in particular the Chief Financial Officer) that, amongst other matters, accounting standards have been consistently applied, that all matters that need to be disclosed have been so disclosed and that the valuation of assets has been consistently applied.];
11.7.10 review the subsequent audit management letter from the external auditor and management’s proposed response, by the Council, to the external auditor’s findings and recommendations in that audit management letter.
11.8 Regional Subsidiaries
In accordance with Section 126(4) of the Act, the functions of the Audit Committee include, if the council has exempted a subsidiary from the requirement to have an audit committee, the functions that would, apart from the exemption, have been performed by the subsidiary’s audit committee.
12. Reporting Requirements
12.1 The Committee shall make recommendations to the Council as it deems
appropriate on any area within these Terms of Reference where in its view action or improvement is needed. The Presiding Member shall attend these meetings and talk on these matters, as and when required.
12.2 In accordance with Section 41(8) of the Act, the Committee shall after every meeting forward the minutes of that meeting to the next meeting of the Council.
12.3 The Committee shall report annually to the Council summarising the activities of
the Committee during the previous financial year.
13. Conduct and Disclosure of Interests
13.1 Members of the Committee must comply with the conduct and conflict of interest provisions of the Act. In particular Sections 62 (general duties), 63 (code of conduct) and 73-74 (conflict of interest, members to disclose interests) must be adhered to.
14. Register of Interest
14.1 Section 64 of the Act (interpretation) applies to the members of the Committee.
15. Delegations
15.1 Council may delegate additional matters that are within the scope of these Terms of Reference to the Committee in accordance with Section 41 of the Act.
16. Reimbursement of Expenses
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16.1 Reimbursement of Expenses incurred by members of the Committee will be paid
in accordance with the Council's "Elected Members' Allowances and Benefits Policy".
17. Public Access to Meetings
17.1 In accordance with the principles of open, transparent and informed decision making Committee meetings must be conducted in a place open to the public. Members of the public are able to attend all meetings of the Committee, unless prohibited by resolution of the Committee under the confidentiality provisions of Section 90 of the Act.
18. Public Access to Documents
18.1 Members of the public have access to all documents relating to the Committee unless prohibited by resolution of the Committee under the confidentiality provisions of Section 91 of the Act.
19. Other Matters The Committee shall:
19.1 Have access to reasonable resources in order to carry out its duties;
[Note that is subject to any budget allocation being approved by Council.]
19.2 Be provided with appropriate and timely training, both in the form of an induction programme for new members and on an ongoing basis for all members;
19.3 Give due consideration to the Act; and regulations made under the Act;
19.4 Make recommendations on co-ordination of the internal and external auditors;
19.5 Oversee any investigation of activities which are within its terms of reference; and
19.6 At least once a year, review its own performance, constitution and terms of
reference to ensure it is operating at maximum effectiveness and recommend changes it considers necessary to the Council for approval.
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Document history
Date Resolution number 14/12/2010 C8044 27/04/2011 C8220 22/11/2011 C8496 28/08/2012 C8840 10/12/2013 C9530 25/02/2014 11/03/2014
C9600 C9602
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Schedule 1
Audit Committee
Meeting Procedure Protocols
1. The Local Government (Procedures at Meetings) Regulations 2013 apply (as a matter of law) to all meetings of the Committee.
2. The decision of the person presiding at meetings of the Committee in relation to the interpretation and application of these Meeting Procedure Protocols shall be absolute and binding on the Committee.
3. A meeting of the Committee will commence as soon after the time specified in the notice of meeting as a quorum is present.
4. Subject to clause 10 of the Terms of Reference the minutes of proceedings at a meeting of the Committee must include:
(a) the names of the members present at the meeting;
(b) the names of the mover and seconder of each motion;
(c) each motion carried or lost at the meeting;
(d) any disclosure of interest made by a member;
(e) details of the making of an order (to exclude the public) under subsection (2) of section 90 of the Act (see subsection (7) of that section); and
(f) a note of the making of an order (to keep minutes, reports etc confidential) under subsection (7) of section 91 of the Act in accordance with the requirements of subsection (9) of that section.
5. The minutes of the proceedings at a meeting must be submitted for confirmation at the next meeting or, if that is omitted, at a subsequent meeting of the Committee.
6. Business may only be transacted at a meeting of the Committee as follows:
(a) by way of a motion without notice in support of a recommendation set out in an officer's report, or
(b) by way of a motion without notice which is accepted by the Presiding Member as suitable having regard to the 'Guiding Principles' at Regulation 4 of the Local Government (Procedures at Meetings) Regulations 2013, or
(c) by way of a motion without notice which has been given consent by the meeting, or
(d) by way of a notice of motion which has been provided in writing (together with a supporting short explanation) to the Committee support officer at least 7 clear days before the meeting at which it is to be considered.
7. Subject to clause 9 of the Local Government (Procedures at Meetings) Regulations 2013, any motion or amendment which is not seconded will lapse.
8. Only the mover of a motion has a right of reply.
9. A member may speak more than once to a motion with the consent of the Presiding Member of the Committee or the consent of the meeting.
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10. Any member except the mover or seconder of a motion may move an amendment to a motion provided that if they have already spoken in the debate the consent of the Presiding Member of the Committee or the leave of the meeting has first been obtained.
11. Only one amendment may be moved in relation to any motion.
12. All other aspects of the meeting procedure at a Committee meeting will be determined at the discretion of the Principal Member of the Committee having regard to issues of equity and fairness and the Guiding Principles at Regulation 4 of the Local Government (Procedures at Meetings) Regulations 2013 or otherwise with the consent of the meeting.
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Audit Committee Agenda Item 5.2 15 April 2014 Item No: 5.2 To: Audit Committee Date: 15 April 2014 Author: Martin Cooper – Chief Financial Officer General Manager and Division
Louise Miller-Frost – General Manager Corporate Services
Contact: 8366 4202 Subject: DRAFT LONG TERM FINANCIAL PLAN 2015 – 2024 (Strategic) Attachments: A. Draft Long Term Financial Plan 2015–2024 / Draft Statement
of Comprehensive Income, Balance Sheet, Cash Flow, Changes in Equity, Summary and Key Financial Indicators
B. Draft Long Term Financial Plan 2015-2024 / Assumptions and Model Drivers.
C. Draft Long Term Financial Plan 2015-2024 / Capital Expenditure Proposals.
D. Draft Long Term Financial Plan Financial Indicators Dashboard.
Prev. Resolution: N/A
Officer’s Recommendation
1. That the Report be received.
2. That the Audit Committee endorses the assumptions and drivers inherent in the Draft Long Term Financial Plan 2015 – 2024.
3. That the Long Term Financial Plan be presented to the 22 April 2014 meeting of Council for consideration.
Purpose
1. To provide Audit Committee Members with a draft Long Term Financial Plan (LTFP) for consideration and endorsement in accordance with Section 123 of the Local Government Act, 1999.
Strategic Plan
2. The following Strategic Plan provisions are relevant:
“A financially sound Council that is accountable, responsible and sustainable”
Communications/Consultation
3. The following communication / consultation has been undertaken:
3.1. Discussions with the Executive Team and Managers
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Audit Committee Agenda Item 5.2 15 April 2014 Statutory
4. The following legislation is relevant in this instance:
Local Government Act, 1999 (Section 123)
Local Government Act, 1999 (Section 122(4)(a)(i)) Local Government (Financial Management) Regulations, 2011
Policy
5. There are no policy implications or requirements associated with this recommendation.
Risk Assessment
6. The following risks have been identified:
6.1 Material misstatement of forecast financial data and/or a significant change in economic conditions.
6.2 Not achieving the financial ratios and targets recommended by the Local Government Association – Financial Sustainability Work papers.
Finance
7. The ability of Council to deliver on its Strategic Plan is dependent on having the financial resources to do so. Good sustainable financial management requires a LTFP which reflects the future activities of Council in financial terms. The Local Government Act, 1999 requires Council to develop a LTFP and sustainable Infrastructure and Asset Management Plans, both of which form integral parts of Council's Strategic Management Planning Framework. Council has adopted the Asset Management Plan and this has been incorporated into the LTFP.
8. The Local Government Act, 1999 requires only an annual review of the LTFP following the adoption of the Annual Business Plan. Accordingly, this does not necessitate an annual adoption of the LTFP.
9. Only amendments to the LTFP emanating from the adoption of the Annual Business Plan need to be endorsed by Council.
10. The LTFP can be reviewed and amended at any time.
11. The LTFP is based on the 2012/13 Audited Annual Financial Statements; the approved 2013/14 Annual Business Plan with the proposed adjustments up to and including the third quarter budget review; and the latest information from the work on the draft 2014/15 Annual Budget.
12. A list of inherent assumptions and LTFP model drivers has been developed to support and generate the recommended revisions to the current LTFP.
13. Once the assumptions and drivers have been agreed by the Audit Committee, the LTFP will be revised, if necessary, and updated by the Administration prior to final presentation to Council.
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Audit Committee Agenda Item 5.2 15 April 2014 Discussion
Background
14. The LTFP is the primary financial management tool linking the broader Strategic Community Plan with the more detailed Annual Business Plan and Budget. It summarises Council’s activities over the longer term in financial terms and provides guidance in the formulation of the Annual Business Plan and Budget.
15. The LTFP is presented in its required statutory form in Attachment A. The LTFP presents 12 years of data. The first year incorporates data from the 2012/13 Audited Annual Financial Statements. Year 2 represents data from the 2013/14 Adopted Annual Business Plan and Annual Budget, incorporating the approved adjustments up to and including the third quarter budget review. Years 3-12 present 10 years of financial projections from the base data. Key assumptions and model drivers are detailed below and in Appendices B & C.
Legislative Requirements 16. The Local Government Act, 1999 requires Councils to have strategic management
plans which must address:
16.1. the sustainability of its financial performance and position;
16.2. the maintenance, replacement or development needs for infrastructure;
16.3. proposals with respect to debt levels; and
16.4. identification of any anticipated or predicted changes that will have a significant effect upon the costs of council’s activities or operations.
17. Councils are specifically required to have a LTFP covering a period of at least 10 years. In addition, LTFPs must be reviewed by Councils as soon as practicable after adopting their Annual Business Plans, such review to also include a report from the Chief Executive Officer on the sustainability of Council’s long term financial performance and position.
18. The form of the local government LTFP is not prescribed but the Local Government (Financial Management) Regulations, 2011 require it to contain financial statements in the form consistent with the model set of accounts including estimates for Operating Surplus Ratio, Asset Sustainability Ratio and Net Financial Liabilities Ratio.
Status of Council’s Long Term Financial Plan 19. The City of Burnside has prepared a LTFP that is reviewed annually against actual
audited results achieved, approved budgets and revised projections. It is good financial management practice to have a LTFP as it underpins delivery of Council’s Strategic Community Plan and development of its Annual Business Plans and Budgets.
20. The LTFP is essentially a document that analyses and explains the underlying parameters, assumptions, drivers and outputs from a spreadsheet model. Each year, the LTFP is revised and enhanced. The current LTFP is a broad overview covering a 10-year planning horizon of Council’s financial projections. Revenues and expenditures (both operating and capital) are projected largely based on recent actual performance, escalated in accordance with various indices to provide a forward projected view in nominal dollars. As with any projection, confidence in the reliability of numbers diminishes with each successive forecast year in the planning horizon.
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Audit Committee Agenda Item 5.2 15 April 2014 Council’s Commitment to Financial Sustainability
21. Council is committed to financial sustainability. Financial sustainability is defined as:
“Council’s long-term financial performance and position is sustainable where planned long-term service and infrastructure levels and standards are met without unplanned increases in rates or disruptive cuts to services.”
22. This commitment comprises three key elements:
22.1. Program sustainability — ensuring the maintenance of high priority programs including the renewal and replacement of infrastructure;
22.2. Rate stability — ensuring a reasonable degree of stability and predictability in the overall rate burden; and
22.3. Intergenerational equity — ensuring a fair sharing in the distribution of resources and attendant financial burdens between current and future users of services and infrastructure.
23. Key principles in ensuring financial sustainability include:
23.1. Balanced Operating and Capital Budgets — Council aims to fully fund the cost of its services, including depreciation of its infrastructure and assets, to ensure an equitable sharing between current and future service users. Council recognises that insufficient funding shifts the burden of today’s services on to future users in the form of higher rates or reduced services.
23.2. Infrastructure and Asset Management — Council aims to maintain its infrastructure and assets to the predetermined requisite standard to ensure delivery of services to agreed standards. This involves developing and integrating long-term infrastructure and asset management plans with the LTFP to provide for the continued investment in renewal and replacement of asset stock.
23.3. Rate predictability — Council aims to provide its community with a reasonable degree of predictability for rates over the medium term by ensuring ratepayers are fully informed about future rates and the corresponding services provided.
23.4. Debt — Council aims, all other things being equal, to keep its Net Financial Liabilities as low as practicable having regard to the principles of financial sustainability. Council will use debt, when appropriate, to invest in new long-term assets or to replace and/or renew existing assets and thereby spread the cost burden equitably over current and future users of the services provided.
Integration with Asset Management Plans 24. Council’s Asset Management Plans were adopted in November 2008 and again in
2013.
25. Given Council’s substantial investment in infrastructure and other assets (around $603M carrying value as at 30 June 2013), and the corresponding significant allocation of financial resources for appropriate renewal and replacement programs, it is critical that the LTFP and Asset Management Plans are fully integrated.
26. The LTFP currently adopts a high-level macro approach to renewal and replacement expenditure based upon recent experience and indexed for cost escalations. It assumes a relatively steady expenditure pattern.
50
Audit Committee Agenda Item 5.2 15 April 2014 27. The integration of the LTFP and Asset Management Plans is a high priority objective
and, when achieved, will considerably improve the accuracy and reliability of Council’s forward financial projections. It is also recognised that both the Long Term Financial Plan and Asset Management Plans will continue to evolve as input costs are refined, thereby improving the accuracy of future year forecasts.
Key Parameters, Assumptions and Model Drivers
No Policy Change
28. The current LTFP is driven by a variety of assumptions but particularly one of consistency in service delivery. This assumes that existing core services, including assets and infrastructure, will continue to be provided at current service levels. There is no provision for new initiatives that could result in materially significant new assets and infrastructure or new/expanded services with the exception of identified projects listed below. The updated LTFP fully incorporates the impact of the storm in February 2014.
Revenue
29. Rate revenue is projected to increase at a rate moderately in excess of CPI. The LTFP has used a rates increase of 3.9% pa during the 10 year forecast period compared to 3.9% actual in 13/14 and 4.4% in the previous LTFP. In addition, natural growth is projected to increase at a steady historical rate (0.5% pa). However, with growth comes additional expenditure to service the additional requirements. The rates have been set to match expenditure increases which at times can be beyond the influence and control of Council.
Expenditure
30. Similarly, recurrent operating expenditure is projected to increase by 4.0% pa (no change from previous LTFP). Certain significant classes of expenditure which are beyond the influence and control of council, such as water consumption, Utility costs, waste landfill charges, operational contributions to regional subsidiaries and expenditure to acquit project specific Government and other grants received, are anticipated to increase at a rate in excess of CPI.
Basis for Revenue and Expenditure Increases
31. The LTFP revenue increases have been calculated to match projected expenditure increases. This strategy is both prudent and essential in order to produce a balanced and financially sustainable LTFP. To restrict revenue increases to the Australian Bureau of Statistics CPI measurement would be inappropriate and financially unsustainable.
32. In addition, our current revenue forecast practice is to add an annual amount of 0.5% for natural growth. This practice is considered to be prudent and has been consistently incorporated in the LTFP.
33. Future consideration may be given to adopting the alternate LGA price index as a movement determinant. The Local Government Association equivalent (LGA PI) of the Australian Bureau of Statistics Consumer Price Index (CPI) is generally higher than the CPI due to the influence of infrastructure and construction material costs. For the five year period ended 30 September 2013, the average LGA PI was 3.5% compared to the CPI average of 2.6%.
34. The current Enterprise Bargaining Agreements (EBAs) negotiations have yet to be finalised. The LTFP assumption has remained unchanged at 3.3% annual salary & wage increases.
51
Audit Committee Agenda Item 5.2 15 April 2014 Capital Expenditure Projects included in the Long Term Financial Plan
35. Council has indicated a preference to purchase capital expenditure items through the use of Council borrowings. The following individually significant new capital expenditure items have been included in the LTFP. The expenditure for the major additional projects is to be funded by total borrowings of $14.5M in the first three years of the Plan.
Capital Expenditure Project Amount
Swimming Centre Upgrade $ 3.5M Brown Hill Creek $ 4.5M Glenunga Hub $ 5.1M New Infrastructure $ 2.8M
--------- Total $ 15.9M 36. Additional unspecified capital expenditure has also been included in the LTFP. Details
are shown in Appendices B & C. The additional expenditure is to be funded by operating surpluses with the LTFP allowing for additional expenditure of $500K in 2017, $1M in 2018, $1.5M in 2019, $2M in 2020, $2.5M 2021, $2.5M in 2022, $5M in 2023 and $3M in 2024. This level of borrowing remains well within the recommended financial ratio targets.
37. All capital expenditure will be included in the respective Balance Sheets as fixed assets. Depreciation on eligible assets is planned to commence in the year following acquisition. The depreciation calculations have been consistently applied and are a continuation of the rates and methods currently in use.
38. Associated ongoing community facility maintenance and administration costs relating to these assets have not specifically been factored into the LTFP. At this time, such costs have not yet been either identified or quantified. This task will be undertaken once the assets are acquired and commissioned.
39. Where borrowings are required to fund the acquisition of these assets, they have been included unchanged in the LTFP on the basis of loan terms of 15 years at a borrowing variable interest rate of 6.00%. This approach has been adopted for the sake of simplicity in the absence of actual specific transactional information. Loan payments have been calculated on this basis.
Regional Subsidiary Operating Costs and Provisions Highbury Landfill Authority (HLA)
40. The Highbury Landfill has been closed and the post closure costs have been determined by the HLA. These costs cover a period of 25 years and the costs have been restated on a present value basis. Each year, Burnside and the other two constituent Councils are charged an administration fee according to this post closure plan.
41. As at 30 June 2013, the HLA Equity Liability / Provision was $2.04M. This position is in accordance with the audited HLA financial statements for the year ended 30 June 2013.
42. Normal planned operating expenditure for HLA has been incorporated into the LTFP 2015-2024. Unplanned increases to the provision and changes to the Equity Liability account are currently unknown and have not been included in the LTFP.
52
Audit Committee Agenda Item 5.2 15 April 2014 East Waste
43. Normal operating charges are included in the LTFP.
44. Future changes to the Equity Liability account are currently unknown and have not been included in the LTFP.
Eastern Health Authority
45. Normal operating charges are included in the LTFP.
46. Future changes to the Equity Investment account are currently unknown and have not been included in the LTFP.
Borrowings
47. Council’s current policy is to borrow funds, where required, to assist funding its ongoing capital works (i.e. renewal and replacement of assets) and capital expenditure (i.e. upgraded and new assets) programs. The only long term loan currently in existence is an interest free loan to the Toorak Burnside Bowling Club.
48. Short term operating loans from the LGFA are also required during the year. During the months of June, July and August each year, the amount of borrowings from the LGFA is generally maximised. This occurs because the first general rates installment is not due until the beginning of September and payroll, supplier and other expenditures for June, July and August continue irrespective. However, the Administration has in place adequate lines of credit to deal with this temporary funding deficit. Once rates are received, the Administration is then able to repay loans and invest surplus funds. The net effect of this funding cycle has been included in the LTFP.
Carrying Forward of Income and/or Expenditure Items 49. The carry forward of income and/or expenditure transactions has not been incorporated
in the LTFP. The use of the accrual accounting method in situations where funds are controlled is specifically prohibited by the Australian Accounting Standards (AASB1004), the Local Government Act, 1999 and the related regulations. While these transactions will undoubtedly cause variances to the adopted budgets in any 12 month period, over time, they will net out to zero and will not therefore cause any financial impact.
Outcomes 50. The LTFP provides a number of projections for Council’s key financial ratio indicators.
However, as already noted, until the Asset Management Plans are fully integrated with the LTFP, such projections should be considered with some degree of circumspection, particularly when looking forward more than a few years.
Operating Result
51. The LTFP currently projects an Operating Surplus for all years of the 10 year plan.
52. The Operating Surplus / (Deficit) Ratio measures the Operating Result as a percentage of total rate revenue. A negative ratio indicates how much rate revenue would need to increase, all other things being equal, in order to deliver a breakeven Operating Result.
53. During the last five year period, Council has incurred operating deficits amounting to $4.7M.
53
Audit Committee Agenda Item 5.2 15 April 2014 54. It is critically important, and strongly recommended, that an operating surplus be
forecast on an annual basis. Until Council consistently records annual operating surpluses, financial sustainability cannot be achieved.
Asset Sustainability
55. The LTFP delivers the minimum Asset Sustainability Ratio target of 90%. The projections for capital expenditure in the LTFP are based on recent trend patterns and are currently not fully inclusive of the Asset Management Plans until these are completely captured into the Asset Accounting Systems. Accordingly, the projections for the Asset Sustainability Ratio are subject to qualification but nevertheless indicate that they are now projected to meet Council’s rolling target range of 90%-110%.
Asset Consumption Ratio
56. The minimum Asset Consumption Ratio of 65% in 2024 is comfortably above the minimum percentage recommended (40%). The projections for capital expenditure in the LTFP are based on recent trend patterns and are currently not fully inclusive of the Asset Management Plans until these are completely captured into the Asset Accounting Systems. Accordingly, the projections for the Asset Consumption Ratio are subject to qualification but nevertheless indicate that they are comfortably within Council’s rolling target range of 40%-80%.
Key Financial Indicator Targets
57. Net Operating Result – Council’s goal was to achieve a forecast operating surplus as soon as possible. The LTFP currently indicates that an operating surplus will be achieved and maintained from 2014/15. Appropriate actions necessary to achieve consistent operating surpluses are strongly recommended.
58. Net Operating Surplus Ratio – Council’s goal was to achieve a positive ratio as soon as possible. Council’s current ratio is negative due to the storm in 2014 however it will be positive from 2014/15 onwards.
59. Net Financial Liabilities – Council’s projected ratio is comfortably below the LGA recommended maximum target of the value of rates generated. While Council’s objective is to minimise its net financial liabilities position, Council is positioned to borrow funds for capital expenditure where required.
60. Net Financial Liabilities Ratio – Council’s maximum ratio is 50.3% in 2016 comfortably below the LGA recommended maximum target of 100%.
61. Interest Cover Ratio – Council’s maximum ratio is 1.9% comfortably below the LGA recommended maximum target of 10%.
62. Asset Sustainability Ratio – Council’s target is to achieve a rolling target within the recommended range of 90-110%. Council’s current ratio is 101% and is on track to achieve this target.
63. Asset Consumption Ratio – Council’s target is to achieve a rolling target within the recommended range of 40-80%. Council’s current ratio is 71% and is on track to achieve this target.
54
Audit Committee Agenda Item 5.2 15 April 2014 Conclusion 64. The LTFP is Council’s primary financial management tool linking the broader Strategic
Community Plan with the more detailed Annual Business Plan and Budget. It is subject to continual updating and improvement including integration with the Asset Management Plans which are under ongoing development.
65. It is recommended that the Audit Committee considers, revises (if necessary) and endorses the assumptions and drivers inherent in the Long Term Financial Plan 2015 – 2024 as per Attachments A, B, C and D.
66. A Report from the Chief Executive Officer on the sustainability of Council’s long term financial performance and position will be provided to accompany the finalisation of the Long Term Financial Plan when presented to Council.
55
Cit
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Lo
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Te
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20
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/14
- In
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TIM
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PR
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CO
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ST
AT
EM
EN
T
Ye
ar
En
de
d 3
0 J
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e:
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
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$('0
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$('0
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$('0
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$('0
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INC
OM
E
Rat
es31
,778
33,2
7634
,726
36,2
5437
,850
39,5
1641
,255
43,0
7044
,965
46,9
4349
,010
51,1
67S
tatu
tory
Cha
rges
1,09
01,
046
1,03
71,
067
1,09
81,
129
1,16
11,
194
1,22
81,
263
1,29
91,
336
Use
r Cha
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1,22
81,
012
938
965
992
1,01
91,
047
1,07
81,
109
1,14
01,
173
1,20
6G
rant
s, s
ubsi
dies
, con
tribu
tions
3,55
23,
171
3,59
83,
702
3,80
93,
919
4,03
34,
150
4,27
04,
394
4,52
14,
652
Inve
stm
ent I
ncom
e22
911
416
917
417
918
418
919
420
020
621
221
8R
eim
burs
emen
ts26
834
221
422
022
623
324
024
725
426
126
827
6O
ther
Inco
me
282
325
295
304
313
322
331
341
351
361
371
382
Gai
n - J
oint
Ven
ture
s0
970
00
00
00
00
0
To
tal R
eve
nu
es
38
,42
73
9,3
83
40
,97
74
2,6
86
44
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74
6,3
22
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65
0,2
74
52
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75
4,5
68
56
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45
9,2
37
EX
PE
NS
ES
Em
ploy
ee c
osts
13,8
6714
,348
14,8
1515
,304
15,8
0916
,332
16,8
7117
,428
18,0
0218
,596
19,2
1119
,845
Mat
eria
ls, c
ontra
cts
& o
ther
exp
ense
s16
,093
17,6
1917
,946
17,8
8718
,379
18,9
1319
,488
20,0
8020
,690
21,3
2021
,968
22,6
34D
epre
ciat
ion
7,36
27,
668
7,89
98,
182
8,46
39,
705
9,94
110
,183
10,4
1410
,619
12,1
4912
,379
Fina
nce
Cos
ts29
5488
496
829
881
896
907
855
741
622
562
Loss
- Jo
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res
(25)
00
00
00
00
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00
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se
s3
7,0
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0,7
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3,4
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Net
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7122
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2,7
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53
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56
Cit
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AS
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Cu
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Cas
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Cas
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quiv
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187
732
3412
249
619
938
546
684
31,
583
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15,
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vabl
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271
1,31
61,
362
1,41
01,
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1,51
11,
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1,62
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1,73
81,
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1,86
5In
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men
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Ass
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00
00
00
00
00
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2323
2323
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2323
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2,07
11,
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1,55
51,
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1,73
31,
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2,10
92,
543
3,34
45,
284
7,66
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00
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00
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5,48
32,
071
1,41
91,
555
1,97
91,
733
1,97
22,
109
2,54
33,
344
5,28
47,
666
No
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00
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00
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Inve
stm
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s74
7474
7474
7474
7474
7474
74In
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t Pro
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00
00
00
00
00
00
Infra
stru
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rope
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lant
& E
quip
men
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6,16
761
1,71
662
0,04
162
6,71
070
4,54
170
5,99
970
7,48
770
8,67
370
9,25
679
6,23
279
6,71
379
7,62
1In
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00
00
00
00
00
0O
ther
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00
00
00
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on
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As
se
ts60
6,24
161
1,79
062
0,11
562
6,78
470
4,61
570
6,07
370
7,56
170
8,74
770
9,33
079
6,30
679
6,78
779
7,69
5T
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l A
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61
1,7
24
61
3,8
61
62
1,5
34
62
8,3
39
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6,5
94
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7,8
06
70
9,5
33
71
0,8
56
71
1,8
73
79
9,6
50
80
2,0
71
80
5,3
61
LIA
BIL
ITIE
S
Cu
rre
nt
Lia
bilit
ies
Trad
e &
Oth
er P
ayab
les
4,11
04,
123
4,30
34,
252
4,27
14,
319
4,35
64,
403
4,44
54,
490
4,53
34,
579
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row
ings
064
365
2,55
773
91,
785
2,83
32,
885
1,94
099
71,
059
1,12
5P
rovi
sion
s1,
842
1,93
71,
961
2,02
12,
067
2,12
22,
174
2,23
12,
288
2,34
72,
408
2,47
2O
ther
Cur
rent
Lia
bilit
ies
00
00
00
00
00
00
Sub
-tota
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952
6,12
46,
629
8,83
07,
077
8,22
69,
363
9,51
98,
673
7,83
48,
000
8,17
6Li
abili
ties
Rel
atin
g to
Non
-Cur
rent
Ass
ets
held
for s
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00
00
00
00
00
00
To
tal C
urr
en
t L
iab
ilit
ies
5,9
52
6,1
24
6,6
29
8,8
30
7,0
77
8,2
26
9,3
63
9,5
19
8,6
73
7,8
34
8,0
00
8,1
76
No
n-C
urr
en
t L
iab
ilit
ies
Trad
e &
Oth
er P
ayab
les
00
00
00
00
00
00
Bor
row
ings
181
1,61
78,
252
11,6
9514
,456
13,6
7112
,838
11,9
5311
,013
10,0
168,
957
7,83
2P
rovi
sion
s27
934
335
239
241
745
248
451
955
559
363
267
2O
ther
Non
-Cur
rent
Lia
bilit
ies
2,08
92,
089
2,08
92,
089
2,08
92,
089
2,08
92,
089
2,08
92,
089
2,08
92,
089
To
tal N
on
-Cu
rre
nt
Lia
bilit
ies
2,54
94,
049
10,6
9314
,176
16,9
6216
,212
15,4
1114
,561
13,6
5712
,698
11,6
7810
,593
To
tal L
iab
ilit
ies
8,5
01
10
,17
31
7,3
22
23
,00
62
4,0
39
24
,43
82
4,7
74
24
,08
02
2,3
30
20
,53
21
9,6
78
18
,76
9
NE
T A
SS
ET
S6
03
,22
36
03
,68
86
04
,21
26
05
,33
36
82
,55
56
83
,36
86
84
,75
96
86
,77
66
89
,54
37
79
,11
87
82
,39
37
86
,59
2
57
EQ
UIT
Y
Acc
umul
ated
Sur
plus
211,
283
213,
882
214,
406
215,
527
216,
827
217,
640
219,
031
221,
048
223,
815
227,
468
230,
743
234,
942
Ass
et R
eval
uatio
n R
eser
ve38
9,40
738
9,40
738
9,40
738
9,40
746
5,32
946
5,32
946
5,32
946
5,32
946
5,32
955
1,25
155
1,25
155
1,25
1O
ther
Res
erve
s2,
533
399
399
399
399
399
399
399
399
399
399
399
TO
TA
L E
QU
ITY
60
3,2
23
60
3,6
88
60
4,2
12
60
5,3
33
68
2,5
55
68
3,3
68
68
4,7
59
68
6,7
76
68
9,5
43
77
9,1
18
78
2,3
93
78
6,5
92
Cit
y o
f B
urn
sid
e
Lo
ng
Te
rm F
ina
nc
ial P
lan
20
13
/14
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itia
l
ES
TIM
AT
ED
CA
SH
FL
OW
ST
AT
EM
EN
T
Ye
ar
En
de
d 3
0 J
un
e:
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
Ac
tua
lE
sti
ma
teP
lan
Pla
nP
lan
Pla
nP
lan
Pla
nP
lan
Pla
nP
lan
Pla
n
Ye
ar
1Y
ea
r 2
Ye
ar
3Y
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Ye
ar
5Y
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Ye
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7Y
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ar
9Y
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$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
CA
SH
FL
OW
S F
RO
M O
PE
RA
TIN
G A
CT
IVIT
IES
Rec
eipt
sR
ates
33,2
9234
,700
36,2
2637
,821
39,4
8641
,224
43,0
3744
,931
46,9
0748
,973
51,1
28S
tatu
tory
Cha
rges
1,04
61,
037
1,06
71,
098
1,12
91,
161
1,19
41,
228
1,26
31,
299
1,33
6U
ser C
harg
es1,
034
921
948
974
1,00
11,
028
1,05
81,
089
1,11
91,
152
1,18
4G
rant
s, s
ubsi
dies
, con
tribu
tions
3,03
33,
688
3,66
13,
829
3,91
54,
042
4,15
34,
276
4,39
84,
526
4,65
7In
vest
men
t Inc
ome
3116
617
117
618
118
619
119
720
220
821
4R
eim
burs
emen
ts34
221
422
022
623
324
024
725
426
126
827
6O
ther
Inco
me
325
295
304
313
322
331
341
351
361
371
382
Gai
n - J
oint
Ven
ture
s97
00
00
00
00
00
Pay
men
tsE
mpl
oyee
cos
ts(1
4,25
2)(1
4,74
9)(1
5,22
0)(1
5,73
0)(1
6,24
6)(1
6,78
5)(1
7,33
7)(1
7,90
8)(1
8,49
9)(1
9,11
1)(1
9,74
1)M
ater
ials
, con
tract
s &
oth
er e
xpen
ses
(17,
405)
(17,
889)
(17,
881)
(18,
388)
(18,
857)
(19,
462)
(20,
035)
(20,
655)
(21,
279)
(21,
930)
(22,
593)
Fina
nce
Cos
ts(5
4)(8
8)(4
96)
(829
)(8
81)
(896
)(9
07)
(855
)(7
41)
(622
)(5
62)
Loss
- Jo
int V
entu
res
00
00
00
00
00
0O
ther
Exp
ense
s0
00
00
00
00
00
Ne
t C
as
h p
rovid
ed
by (
or
us
ed
in
) O
pe
rati
ng
Ac
tivit
ies
7,4
89
8,2
95
9,0
00
9,4
90
10
,28
31
1,0
69
11
,94
21
2,9
08
13
,99
21
5,1
34
16
,28
1
CA
SH
FL
OW
S F
RO
M IN
VE
ST
ING
AC
TIV
ITIE
S
Rec
eipt
sA
mou
nts
Spe
cific
ally
for N
ew/U
pgra
ded
Ass
ets
749
295
304
313
322
331
341
351
361
371
382
Sal
e of
Ren
ewed
/Rep
lace
d A
sset
s22
00
00
00
00
00
Sal
e of
Sur
plus
Ass
ets
20
00
00
00
00
0P
roce
eds
of d
ispo
sals
- In
vest
. Pro
p.0
00
00
00
00
00
Net
dis
posa
l of I
nves
tmen
t Sec
uriti
es0
00
00
00
00
00
Pcd
s of
dis
posa
l - R
eal E
stat
e D
evel
.0
00
00
00
00
00
Rep
aym
ents
of L
oans
by
Com
mun
ity G
roup
s0
00
00
00
00
00
Dis
tribu
tions
Rec
eive
d fro
m A
ssoc
iate
d E
ntiti
es0
00
00
00
00
00
Pay
men
tsE
xpen
ditu
re o
n R
enew
al/R
epla
cem
ent o
f Ass
ets
(7,7
76)
(6,8
17)
(10,
428)
(7,9
37)
(8,7
89)
(9,1
32)
(9,4
61)
(9,5
64)
(10,
024)
(10,
965)
(11,
377)
Exp
endi
ture
on
New
/Upg
rade
d A
sset
s(5
,441
)(9
,407
)(4
,423
)(2
,435
)(2
,374
)(2
,297
)(1
,908
)(1
,433
)(1
,649
)(1
,665
)(1
,910
)P
urch
ase
of In
vest
men
t Pro
perty
00
00
00
00
00
0N
et p
urch
ase
of In
vest
men
t Sec
uriti
es0
00
00
00
00
00
58
Acq
uisi
tions
- R
eal E
stat
e de
velo
pmen
ts0
00
00
00
00
00
Loan
s M
ade
to C
omm
unity
Gro
ups
00
00
00
00
00
0C
apita
l Con
tribu
ted
to A
ssoc
iate
d E
ntiti
es0
00
00
00
00
00
Ne
t C
as
h P
rovid
ed
by (
or
us
ed
in
) In
ve
sti
ng
Ac
tivit
ies
(12
,44
4)
(15
,92
9)
(14
,54
7)
(10
,05
9)
(10
,84
1)
(11
,09
8)
(11
,02
8)
(10
,64
6)
(11
,31
2)
(12
,25
9)
(12
,90
5)
CA
SH
FL
OW
S F
RO
M F
INA
NC
ING
AC
TIV
ITIE
S
Rec
eipt
sP
roce
eds
from
Bor
row
ings
1,50
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000
6,00
03,
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1,00
02,
000
2,00
01,
000
00
0P
roce
eds
from
Age
d C
are
Faci
lity
Dep
osits
00
00
00
00
00
0P
aym
ents
Rep
aym
ents
of B
orro
win
gs0
(64)
(365
)(2
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)(7
39)
(1,7
85)
(2,8
33)
(2,8
85)
(1,9
40)
(997
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)R
epay
men
t of F
inan
ce L
ease
Lia
bilit
ies
00
00
00
00
00
0R
epay
men
t of A
ged
Car
e Fa
cilit
y D
epos
its0
00
00
00
00
00
Ne
t C
as
h p
rovid
ed
by (
or
us
ed
in
) F
ina
nc
ing
Ac
tivit
ies
1,5
00
6,9
36
5,6
35
94
32
61
21
5(8
33
)(1
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5)
(1,9
40
)(9
97
)(1
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9)
Ne
t In
cre
as
e/(
De
cre
as
e)
in c
as
h h
eld
(3,4
55
)(6
98
)8
83
74
(29
7)
18
68
13
77
74
01
,87
82
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7
Op
en
ing
ca
sh
, c
as
h e
qu
iva
len
ts o
r (b
an
k o
ve
rdra
ft)
4,18
773
234
122
496
199
385
466
843
1,58
33,
461
Clo
sin
g c
as
h, c
as
h e
qu
iva
len
ts o
r (b
an
k o
ve
rdra
ft)
4,1
87
73
23
41
22
49
61
99
38
54
66
84
31
,58
33
,46
15
,77
8
Cit
y o
f B
urn
sid
e
Lo
ng
Te
rm F
ina
nc
ial P
lan
20
13
/14
- In
itia
l
ES
TIM
AT
ED
ST
AT
EM
EN
T O
F C
HA
NG
ES
IN
EQ
UIT
Y
Ye
ar
En
de
d 3
0 J
un
e:
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
Ac
tua
lE
sti
ma
teP
lan
Pla
nP
lan
Pla
nP
lan
Pla
nP
lan
Pla
nP
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Ye
ar
1Y
ea
r 2
Ye
ar
3Y
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5Y
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00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
AC
CU
MU
LA
TE
D S
UR
PL
US
Bal
ance
at e
nd o
f pre
viou
s re
porti
ng p
erio
d20
5,28
221
1,28
321
3,88
221
4,40
621
5,52
721
6,82
721
7,64
021
9,03
122
1,04
822
3,81
522
7,46
823
0,74
3N
et R
esul
t for
Yea
r1,
882
465
524
1,12
11,
300
813
1,39
12,
017
2,76
73,
653
3,27
54,
199
Oth
er C
ompr
ehen
sive
Inco
me
00
00
00
00
00
00
Tran
sfer
s to
Oth
er R
eser
ves
00
00
00
00
00
00
Tran
sfer
s fro
m O
ther
Res
erve
s4,
119
2,13
40
00
00
00
00
0B
ala
nc
e a
t e
nd
of
pe
rio
d2
11
,28
32
13
,88
22
14
,40
62
15
,52
72
16
,82
72
17
,64
02
19
,03
12
21
,04
82
23
,81
52
27
,46
82
30
,74
32
34
,94
2
AS
SE
T R
EV
AL
UA
TIO
N R
ES
ER
VE
Land
00
00
46,2
1546
,215
46,2
1546
,215
46,2
1598
,028
98,0
2898
,028
Land
Impr
ovem
ents
00
00
176
176
176
176
176
330
330
330
Bui
ldin
gs0
00
06,
372
6,37
26,
372
6,37
26,
372
13,1
0413
,104
13,1
04In
frast
ruct
ure
389,
407
389,
407
389,
407
389,
407
411,
643
411,
643
411,
643
411,
643
411,
643
438,
026
438,
026
438,
026
Pla
nt &
Equ
ipm
ent
00
00
795
795
795
795
795
1,55
11,
551
1,55
1Fu
rnitu
re &
Fitt
ings
00
00
128
128
128
128
128
212
212
212
Ass
et G
roup
70
00
00
00
00
00
0A
sset
Gro
up 8
00
00
00
00
00
00
Ass
et G
roup
90
00
00
00
00
00
0A
sset
Gro
up 1
00
00
00
00
00
00
0B
ala
nc
e a
t e
nd
of
pe
rio
d3
89
,40
73
89
,40
73
89
,40
73
89
,40
74
65
,32
94
65
,32
94
65
,32
94
65
,32
94
65
,32
95
51
,25
15
51
,25
15
51
,25
1
59
OT
HE
R R
ES
ER
VE
S
Bal
ance
at e
nd o
f pre
viou
s re
porti
ng p
erio
d6,
652
2,53
339
939
939
939
939
939
939
939
939
939
9Tr
ansf
ers
from
Acc
umul
ated
Sur
plus
00
00
00
00
00
00
Tran
sfer
s to
Acc
umul
ated
Sur
plus
(4,1
19)
(2,1
34)
00
00
00
00
00
Ba
lan
ce
at
en
d o
f p
eri
od
2,5
33
39
93
99
39
93
99
39
93
99
39
93
99
39
93
99
39
9
TO
TA
L E
QU
ITY
AT
EN
D O
F R
EP
OR
TIN
G P
ER
IOD
60
3,2
23
60
3,6
88
60
4,2
12
60
5,3
33
68
2,5
55
68
3,3
68
68
4,7
59
68
6,7
76
68
9,5
43
77
9,1
18
78
2,3
93
78
6,5
92
Cit
y o
f B
urn
sid
e
Lo
ng
Te
rm F
ina
nc
ial P
lan
20
13
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- In
itia
l
SU
MM
AR
Y S
TA
TE
ME
NT
IN
CL
UD
ING
FIN
AN
CIN
G T
RA
NS
AC
TIO
NS
Ye
ar
En
de
d 3
0 J
un
e:
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
Ac
tua
lE
sti
ma
teP
lan
Pla
nP
lan
Pla
nP
lan
Pla
nP
lan
Pla
nP
lan
Pla
n
Ye
ar
1Y
ea
r 2
Ye
ar
3Y
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r 4
Ye
ar
5Y
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r 6
Ye
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7Y
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0
$('0
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$('0
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$('0
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$('0
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$('0
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$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
$('0
00)
Ope
ratin
g R
even
ues
38,4
2739
,383
40,9
7742
,686
44,4
6746
,322
48,2
5650
,274
52,3
7754
,568
56,8
5459
,237
less O
pe
ratin
g E
xp
en
se
s37
,059
39,6
8940
,748
41,8
6943
,480
45,8
3147
,196
48,5
9849
,961
51,2
7653
,950
55,4
20O
pe
rati
ng
Su
rplu
s/(
De
fic
it)
be
fore
Ca
pit
al A
mo
un
ts1
,36
8(3
06
)2
29
81
79
87
49
11
,06
01
,67
62
,41
63
,29
22
,90
43
,81
7
Le
ss
: N
et
Ou
tla
ys
on
Ex
isti
ng
As
se
ts
Cap
ital E
xpen
ditu
re o
n R
enew
al/R
epla
cem
ent o
f Exi
stin
g A
sset
s7,
092
7,77
66,
817
10,4
287,
937
8,78
99,
132
9,46
19,
564
10,0
2410
,965
11,3
77le
ss D
ep
recia
tio
n, A
mo
rtis
atio
n &
Im
pa
irm
en
t7,
362
7,66
87,
899
8,18
28,
463
9,70
59,
941
10,1
8310
,414
10,6
1912
,149
12,3
79le
ss P
roce
ed
s fro
m S
ale
of R
ep
lace
d A
sse
ts71
220
00
00
00
00
0(3
41
)8
6(1
,08
2)
2,2
46
(52
6)
(91
6)
(80
9)
(72
2)
(85
0)
(59
5)
(1,1
84
)(1
,00
2)
Le
ss
: N
et
Ou
tla
ys
on
Ne
w a
nd
Up
gra
de
d A
ss
ets
Cap
ital E
xpen
ditu
re o
n N
ew/U
pgra
ded
Ass
ets
3,98
55,
441
9,40
74,
423
2,43
52,
374
2,29
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61
City of Burnside Long Term Financial Plan 2014-15 (10 Years: 2015 – 2024) Plan Assumptions Base Model Assumptions:
1. The draft LTFP Model is built upon the 2012/13 Audited Financial Statements and the Q3 Draft Annual Budget as the Current Year Estimate.
2. The 2013/14 Adopted Budget was prepared based on estimates of the
balances of various Balance Sheet items before the 2012/13 Annual Financial Statements were finalised. The Current Year Estimate has been revised to reflect the actual balances for 2012/13 however it has been assumed that the original Adopted Budget balance movements remain unchanged.
1. LTFP Model – Current Drivers (to one percentage decimal point)
a) Organic Growth of Council area (should be reasonably consistent with future population projections) 0.5% All Years (unchanged).
b) Consumer Price Index 2.9% All Years (unchanged)
c) Wages/Salaries (usually CPI + allowance for productivity increases – 1% per
annum is considered an outstanding performance by an economy) 3.3% All Years (unchanged)
i. FTE’s 161.3 LTFP Model assumes no change
d) Materials (Local Govt. history of price increases in excess of CPI) 4% All
Years (unchanged)
e) General Rates Increase (unchanged)
Year 1 Year 2 Year 3 Year 4 Year 5 Other 3.9% 3.9% 3.9% 3.9% 3.9% 3.9%
Infrastructure, Property, Plant & Equipment (IPP&E) Prime Cost Depreciation rates (updated):
i. Land 0.0% ii. Land Improvements 3.5% iii. Building 1.3% iv. Infrastructure 1.4% v. Plant & Equipment 7.1% vi. Furniture & Fittings 4.2%
f) Natural Resource Management Levy 2013/14 $1.3m + cost drivers g) Parking Fines and Expiation Fees & Fines March 2014 YTD annualised +
cost drivers
62
h) Grants, Subsidies and Contributions Includes 2014/15 Commonwealth Financial Assistance Grant estimate of $1.38M based upon full year actual grant for 2013/14 less the supplementary road grant funding of $310k + cost drivers.
i) IPP&E Disposals ($’s & Year achieved): Light Vehicles only.
j) Amounts specifically for New/Upgraded Assets: $295k 14/15 + CPI k) Productivity Savings ($’s & Year achieved):
i. Employee costs Nil ii. Material, contract & other expenses Nil iii. Other Nil
l) New Initiatives (introduction of a new facility / service or the termination or
disposal of an existing facility or service: Nil 2. Strategy – Financial Ratio Targets (unchanged)
a. Operating Result: Annual surplus position strongly recommended b. Operating Result Ratio: 1 – 7% of revenue c. Net Financial Liabilities: to maximum of $23m d. Net Financial Liabilities Ratio: to maximum of 50% of revenue e. Interest Cover Ratio: to maximum of 2% of revenue f. Asset Sustainability Ratio: to minimum of 86% of depreciation g. Asset Consumption Ratio: to minimum of 65% of Net Asset WDV.
3. Differential Rating No differential rating has been assumed. 4. Discretionary Operating Projects Based upon 14/15 forecast less $500k impact of storm + cost drivers. 5. Loan Borrowings New Loan Borrowings ex LGFA to fund Additional Capital Expenditure: $7m 14/15 an additional $4m 15/16 and $3.5m 16/17; Loan Term – 15 years; and Loan Interest Rate – 6.00%
63
6. Civic Centre Refurbishment - $266k expenditure in 14/15; and - Phased expenditure from 16/17 to 24/25 of $5.1m included in renewal capital
expenditure. 7. Brown Hill Keswick Creek Stormwater Project (2015 – 2023) Assumes total project Burnside contribution (12%) $9.381m. 8. ERA Stormwater Harvesting Project Assumed cost neutral for LTFP.
64
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67
68
Audit Committee Agenda Item 5.3 15 April 2014
Item No: 5.3 To: Audit Committee Date: 15 April 2014 Author: Martin Cooper – Chief Financial Officer General Manager and Division
Louise Miller-Frost – General Manager, Corporate Services
Contact: 8366 4202 Subject: REGIONAL SUBSIDIARY 2013/14 PERIODICAL FINANCIAL
RESULTS (OPERATIONAL) Attachments: A. Eastern Health Authority (December 2013) Second Budget
Review for 2013/2014 B. Eastern Waste Management Authority Board Minutes and
Budget Review to 31 December 2013 C. Highbury Landfill Authority Financial Statements for period
ended 28 February 2014 Prev. Resolution: N/A
Officer’s Recommendation
1. That the Report be received.
2. That the Audit Committee notes the reports for the periods reported to date for the three regional subsidiaries of the City of Burnside.
Purpose
1. To provide Audit Committee Members with an updated position on the year to date operating performance to budget and budget reviews for the three regional subsidiaries of the City of Burnside.
Strategic Plan
2. The following Strategic Plan provision is relevant:
“A financially sound Council that is accountable, responsible and sustainable”
Communications/Consultation
2. Discussions were held with each of the regional subsidiaries regarding their respective year to date performance and amended budgets for the year ended 30 June 2014.
Statutory
3. The following legislation is relevant in this instance:
Local Government Act, 1999
69
Audit Committee Agenda Item 5.3 15 April 2014
Policy
4. There are no policy implications or requirements associated with this recommendation.
Risk Assessment
5. Council has three regional subsidiary entities whose financial results can have a significant impact on the financial performance of the City of Burnside. Furthermore, Council is contractually liable for any debts incurred by these entities. Accordingly, it is in Council’s best interest to monitor the actual and forecast financial performances for these entities throughout the year. Failure to do so may adversely impact the financial sustainability of the City of Burnside.
Finance
6. The status of the financial statements prepared by the three regional subsidiaries, the operating results and amended budgets for various periods within the year ending 30 June 2014 are detailed in this Report.
Discussion
8. Under Section 43 of the Local Government Act, 1999, the City of Burnside recognises three regional subsidiary entities, these being:
8.1. Eastern Health Authority (EHA);
8.2. Eastern Waste Management Authority Incorporated (East Waste); and
8.3. Highbury Landfill Authority (HLA).
9. On an annual basis, in accordance with the relevant Australian Equity Accounting Standard, Council is required to record the results of these regional subsidiaries as reported in their audited annual financial statements.
10. The standard requires that Council records its share of the trading results for the year and that Council adjusts the carrying value of its own investment holding in each of the entities, where appropriate.
11. The recording of these results can have a material effect on the final results recorded for the City of Burnside. Therefore, it is prudent to monitor the operating results achieved and amended budgets for these entities throughout the year.
12. Accordingly, the purpose of this Report is to provide an update on the year to date operating results and forecast end of year outturn for each entity as disclosed in their financial statements.
13. To date, Council has received financial statements and/or budget reviews from each of the regional subsidiaries.
70
Audit Committee Agenda Item 5.3 15 April 2014
14. The following table notes Council’s share of the operating surplus / (deficit) for each entity based on the amended budgets for 2013/14 as indicated in Column 3:
15. The following commentary provides an update on the current status of the regional subsidiary finances and the likely impact on the City of Burnside.
Eastern Health Authority (EHA)
16. EHA undertook its second budget review in December 2013 (refer Attachment A). A number of variances were identified to budgeted operating lines with a net $21,000 (positive) impact on the estimated budget result reducing the net deficit from $33,562 to $12,562.
17. A formal request from the EHA for impacting budget variance adjustments in accordance with regulation 9 of the Local Government (Financial Management) Regulations, 2011 was presented at the EHA’s Board of Management meeting held on 19 February 2014.
18. The December 2013 budget variances requested by EHA do not show any significant issues. As such, there is unlikely to be any material financial impact on the financial statements of the City of Burnside
Eastern Waste Management Authority Incorporated (East Waste)
19. Year to date financial statements have been prepared by East Waste to 31 December 2013 (refer Attachment B) showing an operating profit of $38,604. The extrapolated June 2014 results and common fleet costing calculations indicate that East Waste will be ahead of budget by $158,277. Burnside’s share of that, if there is no change over the last two quarters, will be $36,177. The Balance Sheet will be varied by a credit back to Member Councils of approximately $74,994 if there are no significant changes in the last two quarters.
20. The anticipated 2014 common fleet costing for Burnside is projected to be $1,583,852 compared to the approved budget of $1,595,357 equating to a refund of $11,505.
Entity Year Ending
Amended Budget – Full Year Operating Result
Surplus /Deficit
Burnside Share %
Burnside Share $
Surplus/ Deficit
EHA 30-Jun-14 (12,562) Deficit 25.197% (3,165) Deficit
East Waste
30-Jun-14 217,057 Surplus 16.667% 36,177 Surplus
HLA 30-Jun-14 119,979 Surplus 50.406% 60,476 Surplus Total 349,598 Surplus 93,488 Surplus
71
Audit Committee Agenda Item 5.3 15 April 2014
Highbury Landfill Authority (HLA)
21. The HLA has a provision in the accounts for the post-closure management of the Highbury Landfill to the year 2035 and this provision is recurrently funded by Member Councils in their equity proportions. The provision is calculated by projecting the cash outflows and inflows for that period and then calculating the Net Present Value of those cash flows using a discount rate that is the 10 year Commonwealth Bond rates that are advised quarterly.
22. Council was required to record its proportional share (50.406%) of HLA’s provision for post closure remediation costs in its Balance Sheet as at 30 June 2013. This provision amounted to $2,040,000 ($2,290,000 as at 30 June 2012).
23. As at December 2013, the revised bond rates have reduced the provision by $327,768. The budget estimated a reduction of $170,000.
24. The HLA costs are charged / expensed against this provision and it is anticipated minimal annual operating costs for this entity. However, additional capital contributions may be required to support specific funding needs. Contributions by Member Councils are as predicted in the budget.
25. Expenses are projected to be $20,000 over the HLA original budget. The HLA will monitor expenditure with a view to try and meet the original budget. There were one-off works carried out on the site to meet WHS requirements for the ongoing environmental monitoring by external consultants. This work has been completed.
26. Year to date results for the HLA, as at 28 February 2014, show an operating surplus of $113,324 (refer Attachment C). The projected Actuals for 2013/14 show a surplus improvement of $136,304 from an original adopted deficit of $16,325 to a projected surplus of $119,979.
27. The City of Burnside will be asked to fund approximately $60,000 next year as its share of equity to fund the provision.
Conclusion
28. The updated position of the three regional subsidiaries has been included in the Quarter 3 Revised Budget Review for the City of Burnside.
29. The Administration will provide a further report on the operating results of the three regional subsidiaries to the August 2014 meeting of the Audit Committee.
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
PO Box 26, Mansfield Park SA 5012 Ph: 8347 5111 Fax: 8240 3244 www.eastwaste.com.au
EASTERN WASTE MANAGEMENT
AUTHORITY
AGENDA
ORDINARY MEETING OF THE BOARD OF MANAGEMENT
Meeting to be held on Thursday, 13th February 2014 commencing at 5:30pm, at the City of Norwood, Payneham & St Peters,
175 The Parade, Norwood 1. PRESENT
Welcome to the new General Manager
2. APOLOGIES 3. CONFIRMATION OF THE MINUTES Page 2 RECOMMENDED: That the Minutes of the Eastern Waste Management Authority Ordinary Board Meeting held on Thursday, 21 November 2013 and the Minutes of the Special Board Meeting held on Thursday, 5
th December 2013, be received, confirmed and adopted.
4. MATTERS ARISING FROM THE MINUTES 5. QUESTIONS WITHOUT NOTICE 6. ACTING GENERAL MANAGER’S REPORT 6.1 Progress Report to 31 January 2014 Page 6 7. OTHER BUSINESS 8. NEXT MEETING OF THE BOARD
The next Board Meeting to be decided at the meeting.
9. CLOSURE OF MEETING.
87
Minutes of the Eastern Waste Management Authority Inc. held on 21 November, 2013 Page 1
EAST WASTE Member Councils: Adelaide Hills Council City of Burnside Campbelltown City Council
City of Mitcham City of Norwood, Payneham & St. Peters Corporation of the Town of Walkerville MINUTES OF THE ORDINARY BOARD MEETING OF THE EASTERN WASTE MANAGEMENT AUTHORITY, held on Thursday, 21st November 2013, at the City of Norwood, Payneham & St Peters commencing at 5.30pm.
1. PRESENT Directors: Mr Brian Cunningham Independent Chairperson Mr Matthew Pears City of Mitcham Mr Mario Barone City of Norwood, Payneham & St Peters Cr Gianni Busato Corporation of the Town of Walkerville Cr Grant Piggott City of Burnside In Attendance: Mr Andrew Aitken Adelaide Hills Council Mr Trevor Hockley Acting General Manager Mrs Ann Blinman Office Manager Mr Ray Pawa Operations Manager 2. APOLOGIES Mr Paul Di Iulio Campbelltown City Council Cr Linda Green Adelaide Hills Council
3. CONFIRMATION OF THE MINUTES
Moved Cr Piggott, that the minutes of the Eastern Waste Management Authority Special Board Meeting held on Tuesday, 1st October 2013, be received, confirmed and adopted. Seconded Mr Barone
Carried
4. CONFIDENTIAL ITEM – CONFLICT OF INTEREST Moved Cr Busato, that pursuant to Section 90 (2) and (3) of the Local Government Act 1999, an order be made by the East Waste Board that the public, the Acting General Manager and East Waste office staff be excluded from attendance at the meeting to the extent (and only to the extent) that the Board considers it to be necessary and appropriate to act in a meeting closed to the public in order to receive, discuss and consider in confidence: (a) Information the disclosure of which would involve the unreasonable disclosure of information concerning the personal affairs of any person (living or dead): Seconded Cr Piggott
Carried The time being 5.40pm Mr Trevor Hockley, Mrs Ann Blinman and Mr Ray Pawa left the meeting.
Moved Mr Barone, pursuant to Section 91(7) and (9) of the Local Government Act 1999, that the Board orders the report and the decision of the Board remain confidential. Seconded Cr Busato
Carried The time being 5.55pm Mr Hockley, Mrs Blinman and Mr Pawa returned to the meeting. 5. MATTERS ARISING FROM THE MINUTES
Moved Cr Busato, that the tabled General Manager Recruitment Committee’s Terms of Reference be received and noted. Seconded Cr Piggott
Carried
88
Minutes of the Eastern Waste Management Authority Inc. held on 21 November, 2013 Page 2
6. QUESTIONS WITHOUT NOTICE Nil The time being 6.20pm Mr Mario Barone left the meeting 7. ACTING GENERAL MANAGER’S REPORT 7.1 PROGRESS REPORT TO 7TH NOVEMBER 2013
Moved Cr Piggott, that it be noted that the cost to purchase the secondhand Adelaide Hills Council litter truck is $40,000 and that the Board give delegation to the Acting General Manager to finalise this purchase from equity funds. Seconded Cr Busato
Carried Moved Mr Pears, that the Local Government Schemes Distribution 2013 of $21,350 be used in the risk management of collection rounds in Member Council areas. Seconded Cr Piggott
Carried Moved Cr Piggott, that the Board ratifies the Audit Committee recommendation that the Diesel Fuel Rebate received from the ATO be refunded to Member Councils in the equity proportions consistent with the East Waste Charter. Seconded Cr Busato
Carried 10 Year Business Plan Directors discussed the process for the 10 Year Business Plan Workshop to be held in February 2014. A meeting has been organised for Monday, 16th December 2013 between 9:00am and 12 noon in the boardroom of Mr Brian Cunningham’s offices. Moved Cr Busato, that the Acting General Manager’s Report be received and noted. Seconded Cr Piggott
Carried
8. OTHER BUSINESS Cr Piggott discussed the issue of what the Board requires to receive on a regular basis in the Agenda. This will be discussed in the 10 Year Business Plan meeting.
9. NEXT MEETING The next Board meeting will be held at City of Norwood Payneham & St Peters on Thursday
13th February, 2014 at 5.30pm.
10. CLOSURE OF MEETING There being no further business the meeting closed at 7:30 pm.
Confirmed DATE________________ CHAIRMAN_________________________
89
Minutes of the Special Board Meeting of East Waste held on 5 December 2013 Page 1
E AS T W AS TE
Member Councils: Adelaide Hills Council City of Burnside Campbelltown City Council
City of Mitcham City of Norwood, Payneham & St. Peters Corporation of the Town of Walkerville MINUTES OF THE SPECIAL BOARD MEETING OF THE EASTERN WASTE MANAGEMENT AUTHORITY, held on Thursday, 5th December 2013, involving the contemporary linking together of Directors by telephone commencing at 8:30am.
1. PRESENT Directors: Mr Brian Cunningham Independent Chairperson Mr Matthew Pears City of Mitcham Mr Mario Barone City of Norwood, Payneham & St Peters Mr Paul Di Iulio Campbelltown City Council In Attendance: Mr Trevor Hockley Acting General Manager Mrs Ann Blinman Office Manager 2. APOLOGIES Cr Linda Green Adelaide Hills Council Cr Gianni Busato Corporation of the Town of Walkerville Cr Grant Piggott City of Burnside
3. APPOINTMENT OF GENERAL MANAGER Moved Mr Barone, that pursuant to Section 90 (2) and (3) of the Local Government Act 1999, an order be made by the East Waste Board that the public, be excluded from attendance at the meeting to the extent (and only to the extent) that the Board considers it to be necessary and appropriate to act in a meeting closed to the public in order to receive, discuss and consider in confidence: (a) Information the disclosure of which would involve the unreasonable disclosure of information concerning the personal affairs of any person (living or dead): Seconded Mr Di Iulio
Carried Moved Mr Barone,
That the Panel Selection Report be received and noted, That the Board endorse the appointment of Mr Adam Faulkner as the East Waste General Manager, That the Selection Panel finalise a 4 year performance based employment contract consistent with the Charter and the adopted terms of reference for the General Manager Recruitment Committee, and That pursuant to Section 91 (7) and (9) of the Local Government Act 1999, the Board orders the report and the discussion remain confidential. Seconded Mr Di Iulio
Carried
90
Minutes of the Special Board Meeting of East Waste held on 5 December 2013 Page 2
4. CLOSURE OF MEETING
The meeting closed at 8:35 am.
Confirmed DATE________________ CHAIRMAN_________________________
91
EAST WASTE Member Councils Adelaide Hills Council City of Burnside City of Norwood, Payneham & St Peters
City of Campbelltown Corporation of The Town of Walkerville City of Mitcham
PO Box 26 Mansfield Park SA 5012 Phone (08) 8347 5111 Fax (08) 8240 3244
www.eastwaste.com.au
Agenda Item 6.1
REPORT SUBJECT: Progress Report to 31 January 2014 REPORT AUTHOR: Acting General Manager MEETING DATE: Thursday, 13 February 2014 ATTACHMENTS: Attachment 1 – Operations Performance Report July 2013 – June 2014 Attachment 2 – Budget Review Report to 31 December 2013 Attachment 3 – Bank Reconciliation to 31 January 2014, Credit Card Transactions to 31 January 2014 Legal Expenses July 2013 – June 2014 Consulting Expenses July 2013 – June 2014
Purpose of the Report To provide the Board with an update on the administrative, operational and governance issues of East Waste. Background This report provides the Board with an update on the progress of implementing the 2013/ 2014 Annual Plan adopted by the Member Councils of East Waste. Governance Audit Committee The Audit Committee met on Thursday, 6th February 2014. Minutes of this meeting will be circulated prior to the Board Meeting. Key issues:
Budget Review to 31 December 2013 (see later in this report)
Auditor has 1 more year of a 5 year contract
Internal control review to be completed
Diesel fuel rebate approximately $50,000 paid to each Member Council at end of January 2014. Administration and Management Occupational Health, Safety & Welfare Members are referred to the report at Attachment 1. East Waste reached a record in consecutive days without a lost time injury of 408 days, unfortunately a driver had a minor accident resulting in 4 days lost time. Collection Service Performance Management and GPS System Collection Services through the Christmas/ New Year period were handled without any major issues. The At Call Hard Waste Service for Mitcham continues and the new compactor should be delivered middle of February 2014. Campbelltown Council has requested a discussion regarding the possibility of accessing this service. Operationally with the proper sized compactor the benchmark of 70 services per day can be met. TPI
92
EAST WASTE Member Councils Adelaide Hills Council City of Burnside City of Norwood, Payneham & St Peters
City of Campbelltown Corporation of The Town of Walkerville City of Mitcham
PO Box 26 Mansfield Park SA 5012 Phone (08) 8347 5111 Fax (08) 8240 3244
www.eastwaste.com.au
are also reviewing their competitive rate for hard waste. The rate in the new financial year will be adjusted after considering the revenue from recovered resources in the waste collected. A meeting was held with Mitcham to review the Hard Waste service and collection services. There were no issues and a request for possible further use of the hard waste truck for illegal dumping clean‐up in the Council area. East Waste commenced the illegal dumping clean‐up for Norwood, Payneham & St Peters this week. This service was provided without any issues. All new trucks, except the hard waste compactor, have been delivered and fitted with the 3 Logix GPS system. East Waste will now transition to this system that provides better reporting options and real‐time photographic evidence and capability. Litter collection in Adelaide Hills has commenced and the litter trucks continue to replace the external contractor on difficult to access collection streets. Financial Management Members are referred to the budget review report at Attachment 2. The Audit Committee has referred the review to the Board. The Bank Reconciliation, Credit Card Transactions and Legal and Consulting Expenses are at Attachment 3. Annual Plan and Budget 2014/ 2015 The new General Manager (GM) and myself have discussed the preparation of a Draft Budget and Annual Plan. Given the need for the new GM to understand and own the Annual Plan and Budget for next year it is suggested that this be produced for a Board Meeting early April that will then allow Member Councils to consider the Annual Plan to meet the date for approval being 31st May 2014. The Budget can then be approved by the Board at a June Board Meeting to meet the requirements of the Charter. 10 Year Business and Financial Plan The revised Discussion Paper from the Board’s strategic discussion last year will be circulated next week to Board Members. The Board should consider a date for the programmed Workshop with key stakeholders around April 2014. Operations Management East Waste is now working with the EPA regarding early starts with a view to agree an approach that the EPA acknowledge is acceptable for the collection of waste that can only be made outside the hours specified in the Act. RECOMMENDATIONS That the Acting General Manager’s Progress Report be received and noted, and That the Budget Review to December 2013 be received by the Board and Member Councils be notified of the projected impact on East Waste fees for the full financial year.
93
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g-13
Nil
4.15
%N
il7.
59%
Sep-
13N
il2.
84%
Nil
3.00
%O
ct-1
3N
il4.
18%
Nil
1.86
%N
ov-1
3N
il2.
07%
Nil
7.36
%D
ec-1
3N
il3.
99%
Nil
2.40
%Ja
n-14
0.16
%1.
16%
Nil
3.20
%Fe
b-14
Mar
-14
Apr-
14M
ay-1
4Ju
n-14
0.00
%10
.00%
20.0
0%30
.00%
40.0
0%50
.00%
60.0
0%70
.00%
80.0
0%
Jul-1
3A
ug-
13S
ep-
13O
ct-
13N
ov-
13D
ec-
13Ja
n- 14Fe
b-14
Mar
-14
Apr
-14
May
-14
Jun- 14
Axi
s Ti
tle
Wor
kers
Com
pens
atio
n Lo
st T
ime
inO
pera
tions
Sic
k Le
ave
Lost
Tim
e in
Ope
ratio
ns
Wor
kers
Com
pens
atio
n fo
r Adm
inis
tratio
n
Sic
k Le
ave
Lost
Tim
e in
Adm
inis
tratio
n
Att
achm
ent
1
94
EAST WASTE Member Councils Adelaide Hills Council City of Burnside City of Norwood, Payneham & St Peters
City of Campbelltown Corporation of The Town of Walkerville City of Mitcham
PO Box 26 Mansfield Park SA 5012 Phone (08) 8347 5111 Fax (08) 8240 3244
www.eastwaste.com.au
Audit Committee Agenda Item 4
REPORT SUBJECT: Budget Review to 31 December 2013 REPORT AUTHOR: Acting General Manager MEETING DATE: Thursday, 6th February 2014 APPENDICES: Appendix A – Profit & Loss Report, Approved Budget compared to
Projected Actual June 2014 and Actual Profit & Loss July – December 2013.
Appendix B – Common Fleet Costing ‐ Extrapolated to June 2014 Appendix C – Common Fleet Costing – Actual July – December 2013 Appendix D – Statement of Comprehensive Income Appendix E – Statement of Financial Position Appendix F – Statement of Changes of Equity Appendix G – Cash Flow Statement
Purpose of the Report To track the income and expenditure of East Waste for the first half of the 2014 financial year compared to the approved budget. Discussion The full year projected results from the half yearly actual results indicates East Waste expending the approved budget. The major variances in the full year projection relate mainly to labour. This is likely a timing difference and a seasonal difference as the pay periods were 27 weeks to the 31 December 2013 and included the public holidays for the Christmas period and other overtime expenses related to fire ban days. The overall projection is on budget and with careful control it may be possible to further reduce projected expenditure (refer Appendix A). The common fleet costing for Member Councils compared to budget for the 6 months is at Appendix C and indicates that Walkerville is $5,000 over expended and Adelaide Hills is $76,000 over expended. These variations relate to the percentage difference from the original budget to the actual GPS times. As stated in the first quarter review the Adelaide Hills percentage is 2% higher than the budget reflecting the extra travel time to the Brinkley Landfill. Appendix B shows the anticipated final charges showing the same trend with Walkerville an over‐expenditure by $10,000 and Adelaide Hills $141,000. All other Councils are projecting a refund as per the report. RECOMMENDATIONS That the Report be received and noted and referred to the Board of East Waste.
Attachment 2
95
$ $ $ $ $ $INCOMEAdministration 202,812 202,812 - Household Refuse 9,887,306 9,887,306 - Waste Disposal Income 1,942,228 1,966,816 24,588- Litter Revenue 134,950 130,000 4,950 Green Organics - G/O Disposal Income 786,829 921,171 134,342- Unley G/O Disposal - Recyclables - Unley 2nd bins 5,333 5,333- Bin Supply - AHC 168,092 232,670 64,578- Bin Supply - Campbelltown 43,180 43,180- Bin Supply - Norwood 148,881 192,546 43,665- Bin Supply - Mitcham 285,700 317,960 32,260- Recycling Fees Unley 1,830,237 1,791,375 38,862 At Call Mticham 270,760 175,000 95,760 Collection Charges: 15,657,795 15,691,169 33,375- Profit/Loss on Sale of Asset
Equity Loan 44,565 122,018 77,453- Paid Parental Leave - Sundry Income 93,009 93,009- Other Income: 44,565 215,028 170,463- TOTAL INCOME 15,702,360 15,906,197 203,837-
EXPENSESWages & Salaries 3,069,593 3,321,449.42 251,857- Superannuation 271,605 238,113 33,492 Workers Compensation 95,530 42,433 53,097 Wages: Casual Agency 691,416 729,149 37,733- Payroll Tax 20,308 20,083 225 Employee Costs: 4,148,452 4,351,227 202,776- Account Fees 702 1,129 427- Accounting & Audit 7,073 16,872 9,799- Sundry Office Expenses 175 - 175 Bank Charges 1,701 1,353 348 Bank Guarantee Charges 1,717 2,500 783- Board Fees 16,500 17,050 550- Bill Fees 1,535 505 1,030 Consulting 36,471 32,370 4,101
1,608 1,608- Communications 27,458 25,694 1,765 Contractor 185,400 166,296 19,104 Dumping Fees - Contamination 411,726 364,694 47,032 Disposal Fees - Waste 1,942,228 1,966,816 24,588- Disposal Fees - G/O 786,829 921,171 134,342- Entertainment 1,552 254 1,298 Equipment Hire 9,635 28,000 18,365- Education & Training 20,388 19,680 708 Fire / Security Service 10,103 11,808 1,705- Fuel; Gas & Oil 1,403,554 1,395,324 8,230 GPS Monthly Tracking 11,886 9,280 2,606 Insurance 15,981 19,707 3,725- Interest - Norwood Bins 11,742 11,742 - Interest - AHC Bins 13,257 13,257 - Interest - Mitcham Bins 20,804 20,804 - Interest - Unley Bins 10,143 10,143 - Interest - Equity Loan 44,565 44,565 - Kerdside Audits 9,091 Legal Fees 25,236 20,156 5,080 Lease: Two-way Radio 3,918 3,854 64 Licence Fees 918 6,324 5,407- Maintenance: Motor Vehicle 30,489 37,580 7,091- Maintenance: Trucks 1,800,437 1,571,159 229,277 Maintenance: Bins 182,912 257,510 74,598- Other Items - Ottoway 29,288 28,792 497 Other Items - Mitcham waste 4,610 - Power 30,730 21,295 9,435 Print/Stationery/Post/Courier 31,845 32,000 155- Promotion & Advertising 22,788 18,566 4,221 Protective Clothing 34,995 25,733 9,262 Telephone 48,407 36,006 12,401 Outgoings Ottoway Depot 34,612 35,000 388- Processing G/O Unley 164,725 190,332 25,608- Processing Costs Mitcham 72,800 27,639 45,161 Regist'n & Insurance: Trucks 307,809 308,547 738- Rent - Ottoway 113,110 111,582 1,528 Risk Assesment Expenses 1,245 Staff Amenities 28,966 36,995 8,029- Staff Medical 1,489 908 581 Subscriptions 1,916 8,892 6,976- Sundry Items 166,121 155,082 11,038 Sorting Fees 776,939 774,886 2,053 Tools, Minor Equipment 37,300 38,149 849- Resource Transfer - - Materials, contracts & other expenses: 8,945,488 8,859,946 85,542 Depreciation 2,208,850 2,169,976 38,874 Depreciation: 2,208,850 - 2,169,976 38,874 Interest Expense 340,790 307,990 32,800 Finance Costs: 340,790 307,990 32,800 TOTAL EXPENSES 15,643,579 15,689,140 45,561-
- TOTAL PROFIT/LOSS 58,780 217,057 158,277-
APPROVED BUDGET JUNE 2014 JULY- DEC 2013 EXTRAPOLATED TO JUNE 2014 JOB COSTING BUDGET VARIANCEAppendix A
96
JOB COSTING PROFIT & LOSS
$ $INCOME
Administration 101,406
Household Refuse 2,120,528
Waste Disposal Income 983,408
Litter Revenue 50,000
Green Organics 1,401,921
G/O Disposal Income 460,585
Unley G/O Disposal 87,446
Recyclables 2,146,270
Unley 2nd bins 2,667
Bin Supply ‐ AHC 116,335
Bin Supply ‐ Campbelltown 21,590
Bin Supply ‐ Norwood 96,273
Bin Supply ‐ Mitcham 158,980
Recycling Fees Unley 83,177
At Call Mticham 45,127
Collection Charges: 7,875,712
Profit/Loss on Sale of Asset ‐
Interest
Prepayment Equity Loan ‐
Equity Loan
Paid Parental Leave
Sundry Income 46,505
Other Income: 46,505
TOTAL INCOME 7,922,216
EXPENSES
Wages & Salaries 1,698,225
Superannuation 119,057
Workers Compensation 21,217
Wages: Casual Agency 364,575
Payroll Tax 10,041
Employee Costs: 2,213,114
Account Fees 565
Accounting & Audit 8,436
Sundry Office Expenses
Bank Charges 677
Bank Guarantee Charges 1,250
Board Fees 8,525
Bill Fees 252
Consulting 16,185
Conference 804
Communications 12,847
Contractor 83,148
Dumping Fees ‐ Contamination 182,347
Disposal Fees ‐ Waste 983,408
Disposal Fees ‐ G/O 460,586
Entertainment 127
Equipment Hire 19,865
Education & Training 9,840
Fire / Security Service 5,904
Fuel; Gas & Oil 697,662
GPS Monthly Tracking 4,640
Insurance 9,853
Interest ‐ Norwood Bins 6,963
Interest ‐ AHC Bins 17,142
Interest ‐ Mitcham Bins 12,478
Interest ‐ Unley Bins 6,822
Interest ‐ Equity Loan 22,934
Kerdside Audits 9,091
Legal Fees 10,078
Lease: Two‐way Radio 1,927
Licence Fees 3,162
Maintenance: Motor Vehicle 18,790
Maintenance: Trucks 785,580
Maintenance: Bins 128,755
Other Items ‐ Ottoway 14,396
Other Items ‐ Mitcham waste
Power 10,647
Print/Stationery/Post/Courier 21,063
Promotion & Advertising 9,283
Protective Clothing 12,867
Telephone 18,003
Outgoings Ottoway Depot 29,100
Processing G/O Unley 95,166
Processing Costs Mitcham 13,819
Regist'n & Insurance: Trucks 154,274
Rent ‐ Ottoway 55,791
Risk Assesment Expenses 623
Staff Amenities 18,497
Staff Medical 454
Subscriptions 4,446
Sundry Items 77,541
Sorting Fees 387,443
Tools, Minor Equipment 19,075
Resource Transfer
Materials, contracts & other expenses: 4,473,131
Depreciation 1,066,652
Depreciation: 1,066,652
Interest Expense 130,715
Finance Costs: 130,715
TOTAL EXPENSES 7,883,612
TOTAL PROFIT/LOSS 38,604
JULY‐ DEC 2013
Appendix A
97
COMMON FLEET
COSTING EXTR
APOLA
TED 2014
$
TOTA
L EX
PEN
SES AS PER
P&L
15,689,140
Less:
LITTER
EXPEN
SES
130,000
AT CALL M
ITCHAM EXPEN
SES
175,000
15,384,140
Less:
Sorting Fees (excluding Unley)
629,638
Dumping Fees‐Contamination
364,694
Disposal Fees‐Waste
1,966,816
Disposal Fees‐G/O
921,171
Interest‐Equity Loan
44,565
Unley Expen
ses
1,800,000
Bin M
aintenance (excluding Unley)
160,000
Mitcham
Waste
‐
MGB costs (excluding Unley dep
reciation)
600,000
Litter
‐
Fixed Admin Reven
ue and sundry
280,000
Total Member Council non‐collection costs
6,766,884
Total Collection Costs
8,617,256
MEM
BER
COUCILS
C&T %
COSTS TO
BE
ALLOCATED
VISY
COSTS
BIN COSTS
TOTA
L
COSTS
APPROVED
BUDGET
2014
VARIANCE
Burnside
18.38%
1,583,852
‐
‐
1,583,852
1,595,357
11,505
Walkerville
3.58%
308,498
34,134
10,000
352,632
342,523
10,109
‐
N P St P
16.42%
1,414,953
200,097
10,000
1,625,050
1,733,481
108,431
Adel Hills
26.14%
2,252,551
191,802
4,500
2,448,853
2,307,053
141,800
‐
Cam
pbelltown
20.68%
1,782,049
233,853
10,000
2,025,901
2,149,795
123,894
Mitcham
14.80%
1,275,354
316,873
6,000
1,598,227
1,759,097
160,870
Total
100%
8,617,256
976,758
0%
40,500
9,634,514
9,887,306
252,792
App
endi
x B
98
COMMON FLEET
COSTING JULY ‐ DEC
2013
$
TOTA
L EX
PEN
SES AS PER
P&L
7,883,612
Less:
LITTER
EXPEN
SES
86,066
AT CALL M
ITCHAM EXPEN
SES
61,073
7,736,473
Less:
Sorting Fees (excluding Unley)
314,819
Dumping Fees‐Contamination
182,347
Disposal Fees‐Waste
983,408
Disposal Fees‐G/O
460,586
Interest‐Equity Loan
22,934
Unley Expen
ses
917,751
Bin M
aintenance (excluding Unley)
83,940
Mitcham
Waste
4,871
MGB costs (excluding Unley dep
reciation)
292,081
Fixed Admin Reven
ue and sundry
147,911
Total Member Council non‐collection costs
3,410,647
Total Collection Costs
4,325,826
MEM
BER
COUCILS
C&T %
COSTS TO
BE
ALLOCATED
%VISY COSTS
%BIN COSTS
TOTA
L
COSTS
BUDGET
TO
DEC
2013
VARIANCE
Burnside
18.38%
795,087
0.00%
‐
0.00%
‐
795,087
797679
2,592
Walkerville
3.58%
154,865
3.51%
17,454
5%
4,514
176,833
171262
5,571
‐
N P St P
16.42%
710,301
20.41%
101,465
8%
6,411
818,176
866741
48,564
Adel Hills
26.14%
1,130,771
19.46%
96,768
2%
2,039
1,229,579
1153527
76,052
‐
Cam
pbelltown
20.68%
894,581
24.14%
120,018
5%
4,571
1,019,170
1074898
55,728
Mitcham
14.80%
640,222
32.48%
161,460
3%
2,935
804,617
879549
74,931
Total
100%
4,325,826
100.00%
497,166
24%
20,470
4,843,462
4943653
100,191
App
endi
x C
99
STATEMEN
T OF COMPREH
ENSIVE INCOME
FY 2013
APPROVED
BUDGET
2014
PROJECTED JUNE 2014
VARIANCE
$$
$$
INCOME
Collection Charges
13,400,493
15,757,795
15,691,169
66,626
‐
Investmen
t income
40,762
Other income
888,646
44,565
215,028
170,463
Total Income
14,329,901
15,802,360
15,906,197
103,837
‐
EXPEN
SES
‐
Employee costs
3,914,629
4,148,452
4,351,227
202,776
Materials, contracts & other expen
ses
8,046,678
9,045,488
8,859,946
185,542
‐
Dep
reciation, amortisation & im
pairm
ent
1,958,761
2,208,850
2,169,976
38,874
‐
Finance Costs
411,319
340,790
307,990
32,800
‐
Total Expenses
14,331,387
15,743,580
15,689,140
OPER
ATING SURPLU
S / (DEFICIT)
1,486
‐
58,780
217,057
158,277
Net gain (loss) on disposal or revaluation of assets
78,999
Income Tax Equivalen
t Charge arising from the Principle of
Competitive Neu
trality
19,768
‐
NET SURPLU
S / (DEFICIT)
57,745
58,780
217,057
158,277
Other Comprehen
sive Income
Total O
ther Comprehen
sive Income
TOTA
L COMPREH
ENSIVE INCOME
57,745
58,780
217,057
158,277
App
endi
x D
100
STATEMENT OF FINANCIAL POSITION FY 2013 APPROVED BUDGET 2014 PROJECTED JUNE 2014 VARIANCE
$ $ $ $
ASSETS
Current Assets
Cash and cash equivalents 2,064,227 1,160,189 1,627,891 467,701‐
Trade & other receivables ‐5,980 908,320 964,120 55,800‐
Inventories 2,916 12,771 15,000 2,229‐
Other
Total Current Assets 2,061,163 2,081,280 2,607,010 525,730‐
Non‐current Assets
Infrastructure, Property, Plant & Equipment 6,541,665 5,904,691 4,425,678 1,479,013
Total Non‐current Assets 6,541,665 5,904,691 4,425,678 1,479,013
Total Assets 8,602,828 7,985,972 7,032,688 953,283
LIABILITIES
Current Liabilities
Trade & Other Payables 1,426,284 1,226,924 1,473,686 246,762‐
Borrowings 2,021,622 1,885,000 1,398,711 486,289
Provisions 221,056 195,516 317,079 512,595‐
Total Current Liabilities 3,668,962 3,307,440 3,189,476 273,068‐
Non‐current Liabilities
Borrowings 5,146,936 4,778,880 3,782,316 996,564
Provisions 78,981 64,416 135,891 200,307‐
Total Non‐current Liabilities 5,225,917 4,843,296 3,918,207 796,257
Total Liabilities 8,894,879 8,150,736 7,107,683 523,189
NET ASSETS ‐292,051 ‐164,764 ‐74,994 89,770‐
EQUITY
Accumulated Surplus / (Deficit) ‐292,051 164,765‐ ‐74,994
TOTAL EQUITY ‐292,051 ‐164,765 ‐74,994 89,771‐
Appendix E
101
STATEMEN
T OF CHANGES IN
EQUITY
Accumulated
Surplus
Asset Revaluation
Reserve
Other
Reserves
TOTA
L
EQUITY
Accumulated
Surplus
Asset Revaluation
Reserve
Other
Reserves
TOTA
L
EQUITY
Accumulated
Surplus
Asset Revaluation
Reserve
Other Reserves
TOTA
L
EQUITY
$$
$$
$$
$$
$$
$$
Balance at en
d of previous reporting period
‐349,796
‐349,796
223,545
‐
223,545
‐
‐292,051
‐292,051
Adjustmen
ts due to compliance with revised
‐
0
Accounting Standards
‐
0
Adjustmen
ts to give effect to changed
‐
0
accounting policies
‐
‐
Restated Opening Balan
ce
‐349,796
00
‐349,796
223,545
‐
‐
‐
223,545
‐
292,051
‐
‐
‐
292,051
‐
Net Surplus/ (Deficit) for Year
57,745
57,745
58,780
58,780
217,057
217,057
Other Comprehensive
Income
0‐
Gain on revaluation of infrastructure
0‐
property, plant & equipmen
t 0
‐
Transfers between reserves
0‐
Distributions to M
ember Councils
0
Balan
ce at end of period
‐292,051
00
‐292,051
164,765
‐
‐
‐
164,765
‐
74,994
‐
‐
‐
74,994
‐
FY 2013
Approved Budget 2014
Projected June 2014
App
endi
x F
102
CASH
FLO
W STA
TEMEN
TFY
2013
APPROVED
BUDGET
2014
PROJECTED JUNE 2014
VARIANCE
$$
$
CASH
FLO
WS FR
OM OPER
ATING ACTIVITIES
Receipts
Operating receipts
14,824,633
15,702,360
15,739,938
Investmen
t receipts
40,762
‐
Payments
Interest Expen
ses
369,202
‐
441,301
‐
307,990
‐
Distribution to M
ember Councils: Tax Equivalen
ts
19,767
‐
Operating paymen
ts to suppliers & employees
11,754,104
‐
12,993,429
‐
14,008,912
‐
Net Cash provided by (or used in) Operating Activities
2,722,322
2,267,630
1,423,036
CASH
FLO
WS FR
OM IN
VESTING ACTIVITIES
Receipts
Sale of replaced assets
151,851
‐
‐
Payments
Expen
diture on new
/upgraded
assets
3,957,691
‐
1,700,000
‐
2,100,000
‐
Net Cash provided by (or used in) Investing Activities
3,805,840
‐
1,700,000
‐
2,100,000
‐
CASH
FLO
WS FR
OM FINANCING ACTIVITIES
Receipts
Proceed
s from Borrowings
3,439,078
1,700,000
2,100,000
Payments
Rep
aymen
ts of Borrowings
1,628,074
‐
2,219,724
‐
1,859,372
‐
Net Cash provided by (or used in) Finan
cing Activities
1,811,004
519,724
‐
240,628
Net Increase (Decrease) in
cash held
727,486
47,907
436,336
‐
Cash & cash equivalen
ts at beginning of period
1,336,741
1,112,283
2,064,227
Cash & cash equivalents at end of period
2,064,227
1,160,190
1,627,891
467,701
App
endi
x G
103
Bank Reconciliation Statement as at 31st January, 2014Balance as per last statement Credit $210,386.08+ Receipts 5345 to 5363 inclusive $2,723,717.13+State Bank Current A/c Interest $0.00+ Redeemed LGFA - 24 hr call $1,000,000.00+ LGFA Cash Advance $0.00
Credit $3,934,103.21
-Cheques 121402 to 121406 inclusive $4,126.40-Electronic Funds Transfer $1,998,318.71-Bank Charges $256.35-Logicoil Bio Diesel $137,831.85-Caltex Charge $32,399.62-National Aust Bank Standing charge $32,079.13-Bank Bill $0.00-St George Bank Standing charge $87,457.54-LGFA Standing charge $0.00
Total Payments $2,292,469.60Balance @ 31/01/2014 Credit $1,641,633.61
Balance as per Bank Statement 31/01/2014 Credit $1,641,751.61Less Unpresented Cheque/Finance Charges -$118.00Add unpresented deposits $0.00
Credit $1,641,633.61
Invested FundsLGFA 24 hr call - Bonus/Interest July 2013- June 2014 $23,028.74LGFA 24 hr call @ 2.50% $724,792.76LGFA Fixed 31 days @ 3.00% $500,000.00Total Invested Funds $1,247,821.50
Accounts for PaymentEFT Payments in excess of $5,000 for January 20143Logix Pty Ltd New Trucks 20,286.20$ Atkins Waste Pty Ltd Collection fee 10,935.10$ Adelaide Iveco Truck Maintenance 5,286.08$ Beaurepaires Truck Maintenance 33,505.22$ Cummins South Pacific Pty Ltd Truck Maintenance 33,663.11$ Daimler Trucks Truck Maintenance 6,016.95$ Heavy Automatics Pty Ltd Truck Maintenance 17,399.48$ Jade Chemicals Unley waste lids 6,534.00$ MacDonald Johnston Eng Pty Ltd Truck Maintenance 51,080.44$ Mastec Australia Pty Ltd Bin Maintenance 31,763.97$ TJH Management Services Pty Ltd Contractor 16,660.49$ Valvoline (Australia) Pty Ltd Truck Maintenance 6,128.71$ Ionex Nominees Pty Ltd Lease Temple Court 10,308.07$ Rexco Pty Ltd Casual Wages 12,397.30$ Trojan Workforce Casual Wages 17,846.54$ Visy Recycling Processing Recycling 105,271.78$ WasteCare SA Disposal Waste 177,411.21$ Jeffries Processing G/O 94,744.81$ Superior Pak Pty Ltd Truck Purchase 377,523.40$ Rexco Pty Ltd Casual Wages 5,348.02$ Dynamic 3E Delivery calendars 9,174.00$ North East Isuzu Hire of H/W truck 5,500.00$ Recruitco Pty Ltd Casual Wages 6,100.04$ Rexco Pty Ltd Casual Wages 9,801.94$ Trojan Workforce Casual Wages 15,696.19$ LGA Asset Mutual M/V Insurance 10,749.84$ Atkins Waste Pty Ltd Collection fee 11,908.60$ Adelaide Iveco Truck Maintenance 12,201.78$ Cummins South Pacific Pty Ltd Truck Maintenance 6,959.89$ Daimler Trucks Truck Maintenance 5,035.07$ Heavy Automatics Pty Ltd Truck Maintenance 14,242.90$ Jeffries Processing G/O 85,948.31$ MacDonald Johnston Eng Pty Ltd Truck Maintenance 54,036.00$ Mastec Australia Pty Ltd Bin Maintenance 10,916.41$ Roxen Auto Electrics Truck Maintenance 5,714.50$ Supreme Printers Pty Ltd Printing Calendars 7,620.29$ TJH Management Services Pty Ltd Contractor 13,940.41$ Visy Recycling Processing Recycling 107,788.06$ WasteCare SA Disposal Waste 198,813.40$ Beaurepaires Truck Maintenance 31,348.76$ Statewide Superannuation Superannuation 24,345.25$
1,687,952.52$
Attachment 3
104
Jan-
14EA
STER
N W
AST
E M
AN
AG
EMEN
T A
UTH
OR
ITY
CR
ED
IT C
AR
D T
RA
NS
AC
TIO
N L
OG
SH
EE
T
DA
TEP
UR
CH
AS
E D
ETA
ILS
AC
CO
UN
T N
OA
CTI
VIT
YA
MO
UN
TA
UTH
OR
ISA
TIO
N26
-Dec
Targ
et A
ustra
liaS
taff
Am
eniti
es5
Litre
jugs
for e
mpl
oyee
s$8
00.0
0R
Paw
a19
-Jan
Offi
cew
orks
Tool
s, m
inor
pla
ntP
rinte
r for
Mec
hani
c$1
67.0
0A
Blin
man
29-J
anC
lark
Rub
ber
Sun
dry
Item
sP
last
ic to
cov
er b
oard
tabl
e$1
31.7
0A
Blin
man
TOTA
L$1
,098
.70
Pai
d by
EFT
21/
02/2
014
-$80
0.00
Pai
d by
EFT
21/
02/2
014
-$29
8.70
Bal
ance
NIL
INT
6-19
21$8
00.0
0IN
T 6-
2001
$167
.00
INT
6-19
24$1
31.7
0$1
,098
.70
$2,1
97.4
0
Att
achm
ent
3
105
LEG
AL
EXPE
NSE
S FO
R T
HE
YEA
R 2
013
- 201
4
Mon
thN
ame
Am
ount
Des
crip
tion
Tota
l for
yea
rJu
l-13
Cos
off C
udm
ore
Kno
x$1
,845
.00
Bor
row
ings
LG
FA L
oan
Agr
eem
ent N
o 5
Nor
man
Wat
erho
use
$1,2
58.5
0E
mpl
oym
ent a
dvic
eTo
tal f
or M
onth
$3,1
03.5
03,
103.
50$
Aug
-13
Cam
pbel
l Law
$488
.00
Cha
rter
Pet
er G
R F
ishe
r$2
88.7
5V
isy
Con
tract
Tota
l for
Mon
th$7
76.7
53,
880.
25$
Sep
-13
Cam
pbel
l Law
$132
.00
City
of U
nley
adv
ice
Nor
man
Wat
erho
use
$741
.00
Em
ploy
men
t adv
ice
Tota
l for
Mon
th$8
73.0
04,
753.
2 5$
Oct
-13
Nil
4,75
3.2 5
$
Nov
-13
Nil
4,75
3.2 5
$
Dec
-13
Nor
man
Wat
erho
use
$3,4
78.0
0G
M C
ontra
ct/E
mpl
oym
ent a
dvic
eC
osof
f Cud
mor
e K
nox
$1,8
46.5
0Lo
an A
gree
men
t No
6To
tal f
or M
onth
$5,3
24.5
010
,077
.75
$
Jan-
14C
ampb
ell L
aw$1
,024
.00
Con
flict
adv
ice
Cam
pbel
l Law
$1,5
50.0
0R
ecyc
ling
Con
tract
adv
ice
Tota
l for
mon
th$2
,574
.00
12,6
51.7
5$
Feb-
14
Mar
-14
Apr
-14
May
-14
Jun-
14
Att
achm
ent
3
106
CONSULTING EXPENSES FOR YEAR JULY 2013 - JUNE 2014
Month Name Amount Description Total for yearJul-13 TJH Management Services Pty Ltd $2,400.00 Website development
My Business Locum $75.00 MYOB assistanceTotal for Month $2,475.00 $2,475.00
Aug-13 Alltraders Pty Ltd $55.00 Website developmentDean Newbery & Partners $320.00 LSL WorksheetTotal for Month $375.00 $2,850.00
Sep-13 Waste & Management Services Pty Ltd $900.00 Tenders for Truck purchasesGestalt Database $1,625.00 Database Total for month $2,525.00 $5,375.00
Oct-13 Stillwell Management Consultants $2,917.00 Recruitment General ManagerGestalt Database $1,343.75 Database updatesMy Business Locum $100.00 MYOB assistanceTotal for month $4,360.75 $9,735.75
Nov-13 Deloitte $98,429.00 Fuel Tax Credit claimStillwell Management Consultants $2,917.00 Recruitment General ManagerTotal for month $101,346.00 $111,081.75
Dec-13 Stillwell Management Consultants $2,916.00 Recruitment General Manager Final paymentWastecare SA $316.25 Ball Public Relations re ICACStillwell Management Consultants $300.00 Sundry costs re Recruitment General ManagerTotal for month $3,532.25 $114,614.00
Jan-14 Gestalt $843.75 Database updatesTotal for month $843.75 $115,457.75
Feb-14
Mar-14
Apr-14
May-14
Jun-14
July TJH Management Services Pty Ltd $8,654.80 ex GSTAug TJH Management Services Pty Ltd $9,427.55 ex GSTSept TJH Management Services Pty Ltd $21,018.80 ex GSTOct TJH Management Services Pty Ltd $16,227.75 ex GSTNov TJH Management Services Pty Ltd $15,145.90 ex GSTDec TJH Management Services Pty Ltd $12,673.10 ex GSTJan TJH Management Services Pty Ltd $12,518.55 ex GST
Attachment 3
107
UN
IFO
RM
PR
ESEN
TATI
ON
OF
FIN
AN
CE
JULY
201
3 - J
UN
E 20
14
30/06/2013
Audit Actuals
Projected June 2014
Approved Budget
Bud
get V
aria
nce
Comments
OPE
RA
TIN
G A
CTI
VITI
ES:
$$
$$
Operating Income
2,91
1
1,88
9
2,60
6
717
-
less Operating Expen
ses
493,
958
-
118,
090
-
18,9
31
13
7,02
1-
O
pera
ting
Surp
lus
/ (D
efic
it)49
6,86
9
11
9,97
9
16
,325
-
13
6,30
4
CA
PITA
L A
CTI
VITI
ES:
Net
Out
lay
on E
xisi
ting
Ass
ets
Capital Expen
diture on ren
ewal & rep
lacemen
t of Exsisting Assets
-
-
-
-
less Dep
reciation, A
mortisation & Im
pairm
ent
7,39
5
7,39
5
7,39
5
-
less Proceed
s from Sale of Rep
laced Assets
Net
Out
lay
on E
xisi
ting
Ass
ets
7,39
5
7,39
5
7,39
5
-
Net
Out
lay
on N
ew &
Upg
rade
d A
sset
sCapital Expen
diture on New
& Upgraded
Assets
-
-
-
less Amounts received specifically for New
& Upgraded
Assets
-
-
-
less Proceed
s from Sale of Surplus Assets
-
-
-
Net
Out
lay
on N
ew &
Upg
rade
d A
sset
s-
-
-
Net
Len
ding
/ (B
orro
win
g)48
9,47
4
11
2,58
4
23
,720
-
13
6,30
4
108
INCOME STATEMEN
T BUDGET
REV
IEW FY 2014
FEB 2014
Actuals
Projected June
2014
Budget
2014
Variance
Comments
INCOME
$$
$S
undr
y In
com
eLG
FA B
onus
Rec
eive
d-
225
225
(0
)
Inte
rest
Rec
eive
d 1,
109
1,66
4
2,38
1
(7
17)
Total R
evenues
1,10
9
1,
889
2,
606
EXPEN
SES
Dep
reci
atio
n4,
930
7,39
5
7,39
5
-
Hig
hbur
y C
losu
re P
rovi
sion
- P
aym
ents
134,
855
20
2,28
3
18
2,00
0
20,2
83
M
ovem
ent i
n P
rovi
sion
(252
,000
)
(3
27,7
68)
(1
70,4
64)
(157
,304
)
Total Expenses
(112
,215
)
(1
18,0
90)
18
,931
NET
SURPLU
S/(DEFICIT)
113,
324
11
9,97
9
(1
6,32
5)
Note: T
he F
Y20
14 P
roje
cted
Act
uals
are
bas
ed o
n th
e Fe
brua
ry fi
gure
s (2
8.02
.201
4) e
xtro
plat
ed to
30
June
201
4.Th
e m
ovem
ent i
n pr
ovis
ion
is b
ased
on
RB
A ra
tes
as a
t 31.
12.2
013
109
20/03/2014
MYO
B / Excel
2:55 PM
BALA
NCE SH
EET BUDGET
REV
IEW FY 2014
FEB 2014 Actuals
Projected June
2014
Budget 2014
Variance
Comments
ASS
ETS
$$
$C
urre
nt A
sset
sC
ash
and
Cas
h E
quiv
alen
ts45
,533
54,0
93
65
,363
(1
1,27
0)
Trad
e an
d O
ther
Rec
eiva
bles
3,51
2
3,51
2
2,62
6
886
To
tal C
urre
nt A
sset
s49
,045
57,6
04
67
,989
Non
-Cur
rent
Ass
ets
Mon
itorin
g S
tatio
ns26
,450
23,9
85
23
,985
-
To
tal N
on-C
urre
nt A
sset
s26
,450
23,9
85
23
,985
To
tal A
sset
s75
,495
81,5
90
91
,974
LIA
BIL
ITIE
SC
urre
nt L
iabi
litie
sTr
ade
and
othe
r pay
able
s5,
561
5,
000
55
(4
,945
)
Pro
visi
on fo
r Clo
sure
Cos
ts12
4,00
0
12
4,00
0
18
2,00
0
(5
8,00
0)
Tota
l Cur
rent
Lia
bilit
ies
129,
561
129,
000
182,
055
Non
-Cur
rent
Lia
bilit
ies
Pro
visi
on fo
r Clo
sure
Cos
ts3,
829,
000
3,
829,
000
4,
265,
000
(4
36,0
00)
Tota
l Non
-Cur
rent
Lia
bilit
ies
3,82
9,00
0
3,82
9,00
0
4,26
5,00
0
Tota
l Lia
bilit
es3,
958,
561
3,
958,
000
4,
447,
055
NET
ASS
ETS
(3,8
83,0
65)
(3,8
76,4
10)
(4,3
55,0
81)
EQU
ITY
Acc
umul
ated
sur
plus
(3,8
83,0
66)
(3,8
76,4
10)
(4,3
55,0
81)
To
tal E
quity
(3,8
83,0
66)
(3,8
76,4
10)
(4,3
55,0
81)
Page 3
110
STATEMEN
T OF CHANGES IN
EQUITY BUDGET
REV
IEW FY 2014
App
rove
d B
udge
tFY
2013
Pro
ject
ed
Act
uals
Bud
get
Varia
nce
Comments
$$
$A
CC
UM
ULA
TED
SU
RPL
US
Bal
ance
at b
egin
ning
of t
he y
ear
(4,4
38,7
57)
(4,0
46,3
90)
392,
367
C
hang
e in
fina
ncia
l pos
ition
resu
lting
from
ope
ratio
ns(1
6,32
5)
11
9,97
9
136,
304
Fu
nds
from
Mem
ber C
ounc
ils10
0,00
0
10
0,00
0
-
TOTA
L EQ
UIT
Y(4
,355
,081
)
(3
,826
,411
)
52
8,67
1
Not
e: T
he c
alcu
latio
n of
the
App
rove
d B
udge
t ope
ning
bal
ance
, was
bas
ed o
n 20
13
budg
et fi
gure
s.Th
e P
roje
cted
Act
uals
hav
e be
en a
djus
ted
to re
flect
the
audi
ted
clos
ing
figur
es a
s at
30.
06.2
013.
111
STATEMEN
T OF CASH
FLO
WS BUDGET
REV
IEW FY 2014
FEB 2014
Actuals
Projected June 2014
Budget 2014
Variance
Comments
CA
SH F
LOW
S FR
OM
OPE
RA
TIN
G A
CTI
VITI
ES$
$$
Rec
eipt
sB
ank
Inte
rest
& S
undr
y1,
109
1,66
4
2,38
1
(7
17)
H
ighb
ury
Levy
-
-
-
O
ther
Rev
enue
14,5
95
17,6
00
225
17
,375
GS
T
Pay
men
tsP
aym
ents
to s
uppl
iers
Fina
nce
paym
ents
Net
Cas
h pr
ovid
ed b
y (o
r use
d in
) Ope
ratin
g A
ctiv
ities
15,7
04
19,2
64
2,
606
CA
SH F
LOW
S FR
OM
INVE
STIN
G A
CTI
VITI
ESP
aym
ents
from
Pro
visi
on(1
47,4
04)
(192
,404
)
(1
82,0
00)
(10,
404)
N
et C
ash
paid
for I
nves
ting
Act
iviti
es(1
47,4
04)
(192
,404
)
(1
82,0
00)
CA
SH F
LOW
S FR
OM
FIN
AN
CIN
G A
CTI
VITI
ESFu
nds
paid
by
Mem
ber C
ounc
ils50
,000
10
0,00
0
10
0,00
0
-
Net
Cas
h pr
ovid
ed b
y (o
r use
d in
) Fin
anci
ng A
ctiv
ities
50,0
00
100,
000
100,
000
Net
Incr
ease
(Dec
reas
e) in
cas
h he
ld(8
1,70
0)
(73,
140)
(79,
394)
Cas
h an
d ca
sh e
quiv
alen
ts a
t beg
inni
ng o
f per
iod
127,
233
12
7,23
3
12
7,23
3
Ope
ning
bal
ance
adj
uste
d to
refle
ctFi
nanc
ial S
tate
men
ts 3
0.06
.201
3C
ash
and
cash
equ
ival
ents
at e
nd o
f per
iod
45,5
33
54,0
93
47
,839
6,25
3
Tota
l Cas
h an
d ca
sh e
quiv
alen
ts a
t end
of p
erio
d45
,533
54
,093
47,8
39
112
Audit Committee Agenda Item 5.4 15 April 2014
Item No: 5.4 To: Audit Committee Date: 15 April 2014 Author: Kenneth Ng – Internal Audit Manager Contact: 8366 4263 Subject: FOLLOW-UP ON BUSINESS SERVICE REVIEW OF FINANCE –
PAYROLL (OPERATIONAL) Attachments: A. Report – Follow-Up on Business Service Review of Finance
Department – Payroll Function Prev. Resolution: N/A
Officer’s Recommendation
That the Report be received.
Purpose
1. To provide the Audit Committee with the results of the follow-up conducted on the Business Service Review of the Finance Department – Payroll Function that was completed in October 2012.
Strategic Plan
2. The following Strategic Plan provision is relevant:
“Delivery of good governance in Council business”
Communications / Consultation
3. The following communication / consultation has been undertaken:
3.1 Discussions with the Chief Financial Officer and relevant staff from the Finance Department.
Statutory
4. There are no statutory implications or requirements associated with this recommendation.
Policy
5. There are no policy implications or requirements associated with this recommendation.
Risk Assessment
6. Failure to implement the recommendations arising from the internal audit may result in lost opportunities to achieve performance improvement opportunities in effectiveness and efficiency.
113
Audit Committee Agenda Item 5.4 15 April 2014
Finance
7. Failure to implement the recommendations arising from the internal audit may result in lost opportunities to strengthen internal controls that may potentially lead to financial losses.
Discussion
8. The Business Service Review of the Finance Department was completed in late 2012. It comprised seven reports. The report on the payroll function was completed in October 2012 and tabled at the Audit Committee meeting in June 2013. Updates from the Finance Department on the progress of implementation of audit recommendations were tabled at the Audit Committee meetings in August 2013 and February 2014.
9. This follow-up review was designed to assess the status of the Finance Department’s progress in implementing the audit recommendations covering the payroll function and to determine whether the recommendations achieve their intended purposes.
10. The following table summarises the status of audit recommendations as at February 2014.
Audit Findings No.
Completed 8
In-Progress 4
Outstanding 0
Total 12
11. The recommendations arising from the original audit necessitated relatively significant changes to processes. Finance management and the Payroll Officer have invested significant work towards developing the required control procedures, particularly the various exception reports generated from the CHRIS21 Payroll System.
12. Finance management and the Payroll Officer should be commended for embracing the implementation of these additional controls so that they are now embedded as part of standard payroll procedures. The Administration can report that there is a strong focus in the Finance Department on internal controls over the payroll function.
Conclusion
13. The Finance Department has implemented eight of the 12 recommendations from the Business Service Review of the payroll function.
14. The majority of ‘in-progress’ recommendations are under the responsibility of other departments such as the People and Culture Department.
114
Internal Audit
Follow-Up on Business Service Review of Finance Department –
Payroll Function
Ref: 14-09 February 2014
115
Contents Executive Summary 1
Internal Audit Recommendations 3
Distribution
For action For information
Martin Cooper Chief Financial Officer Paul Deb Chief Executive Officer Gary Long Manager - Finance Nigel Morris General Manager – Urban
Services Louise Miller-Frost General Manager – Corporate
Services Graeme Brown General Manager – Community
& Development Services
116
Follow-Up on Business Service Review of Finance Department – Payroll Function
5.4 BSR Finance Payroll B. Project Report - Follow up report 1
Executive Summary Objective The main objective of this internal audit was to follow-up on the business service review of the Finance Department – payroll function that was completed in October 2012. Essentially, this follow-up review was designed to: Assess the status of the Finance Department’s progress in implementing the
recommendations arising from the business service review (specifically covering the payroll function); and
Determine whether the recommendations achieve their intended purposes.
Summary The following table summarises the status of audit recommendations as at February 2014.
Audit Findings No. Completed 8
In-Progress 4
Outstanding 0
Total 12
The majority of ‘in-progress’ recommendations are under the responsibility of other departments such as the People and Culture Department. The recommendations arising from the original audit necessitated relatively significant changes to processes. Finance management and the Payroll Officer have invested significant work towards developing the required control procedures, particularly the various exception reports generated from the CHRIS21 Payroll System. Finance management and the Payroll Officer should be commended for embracing the implementation of these additional controls so that they are now embedded as part of standard payroll procedures. We are pleased to report that there is a strong focus in the Finance Department on internal controls over the payroll function.
Background Residing within the Finance Department, the payroll function is performed by the sole Payroll Officer providing a service to 188 full-time and part-time employees (as at February 2014).
Department Full-Time
Part-Time Total
Operation Services 47 3 50 Library, Learning & Volunteers 13 13 26 City Development & Safety 19 5 24 Community Services 9 7 16 Asset Services 9 3 12 Information Systems 9 1 10
117
Follow-Up on Business Service Review of Finance Department – Payroll Function
5.4 BSR Finance Payroll B. Project Report - Follow up report 2
Department Full-Time
Part-Time Total
Finance 8 1 9 Engineering Services 7 2 9 Customer Services 6 2 8 Office of the CEO 3 1 4 Risk Services & Governance 3 1 4 Corporate Services Administration 3
3
Procurement & Contracts 3
3 Community Engagement 2 1 3 People & Culture 2
2
Community & Development Services Administration 1 1 2 Urban Services Administration 1 1 2 Strategic Projects 1
1
146 42 188
118
Follow-Up on Business Service Review of Finance Department – Payroll Function
5.4 BSR Finance Payroll B. Project Report - Follow up report 3
Internal Audit Recommendations 1. Management Review of Payroll Exception Reports Summarised Findings and Impact Due to the payroll function being a one-person function, it is currently possible for the Payroll Officer to create a new employee, modify critical pay details such as salary levels and bank accounts, and process payroll runs without any of these processes being counter-signed, reviewed or approved by a second person. This reinforces the necessity for the Manager – Finance to review exception reports from the CHRIS Payroll System as a standard internal control to detect any fraudulent transactions or errors.
Original Recommendations 1. We recommend that the Manager – Finance review a suite of exception reports after
each payroll run as a standard control practice. Examples of exception reports that should be reviewed include: • Newly appointed employees since the previous payroll run; • Amendments to salary levels of employees since the previous payroll run; • Payments other than normal remuneration; • Employees with a pre-determined percentage or absolute value change in base
salaries (e.g. 5% or $100 increase) since the previous payroll run; • Overtime; • Higher duties allowance; • Position changes; • Amendments to banking details of employees since the previous payroll run; and • Resigned employees since the previous payroll run. This internal control of someone independent of the payroll function reviewing exception reports represents a strong deterrent against the perpetration of payroll fraud as well as providing opportunities to identify and resolve unauthorised transactions and payroll errors in a timely manner.
2. We recommend that the Manager – Finance review the pay data master file every six months. This review process should be undertaken diligently and the practice of blindly signing-off these reports without a proper review is to be avoided. The Manager – Finance has the responsibility of ensuring that (i) satisfactory explanations and / or (ii) appropriate documentation are obtained from the Payroll Officer in order to sign-off the exception reports. This is the prescribed method for reviewing the payroll exception reports.
Follow-Up Review 1. All exception reports are reviewed by the Chief Financial Officer (CFO) every payroll
119
Follow-Up on Business Service Review of Finance Department – Payroll Function
5.4 BSR Finance Payroll B. Project Report - Follow up report 4
run including sign-off as evidence of review and approval. We sighted the payroll exception reports that were signed-off by the CFO for a random sample of 3 payroll runs. The exception report to review comparative gross pays between the current and previous pay period is manually annotated by the Payroll Officer. In February 2014, the Payroll Officer developed the exception report to review changes to banking details since the previous payroll run. This was the final outstanding exception report, and it will now be generated together with all other exception reports from the payroll run on 26 February onwards.
2. The annual salary increment arising from the Enterprise Agreement generated a suite of reports that facilitated a complete review of the pay data by the CFO in July 2013. In December 2013 and February 2014, the CFO, Finance Consultant and Payroll Officer reviewed two random 25% samples of both administration and field staff’s pay data against the data as per July 2013. We sighted the reviews signed-off by the Finance Consultant and the Payroll Officer. These reviews included documentation of the reasons for any unexpected discrepancies. In February 2014, the Payroll Officer developed a report to download or export the payroll master file. This will now enable the payroll master file to be reviewed every six months.
Status Completed.
120
Follow-Up on Business Service Review of Finance Department – Payroll Function
5.4 BSR Finance Payroll B. Project Report - Follow up report 5
2. Management Review of Annual Salary Revisions Summarised Findings and Impact Any amendments to employee’s remuneration including the annual increment are essentially processed by the Payroll Officer without review by management.
Original Recommendations 3. We recommend that the Manager – Finance review and approve the annual process to
upload salary increments as confirmation that the salary data has been completely and accurately captured into the payroll system.
Follow-Up Review 3. The annual salary increment arising from the Enterprise Agreement generated a suite
of reports that facilitated a complete review of the pay data by the CFO in July 2013. We sighted the annual review that was signed-off by the CFO. This is now intended to be an annual process.
Status Completed.
121
Follow-Up on Business Service Review of Finance Department – Payroll Function
5.4 BSR Finance Payroll B. Project Report - Follow up report 6
3. Payments to Resigned Employees Summarised Findings and Impact Payments to resigned employees are calculated by the Payroll Officer and not reviewed by the Manager – Finance or any other individual.
Original Recommendations 4. We recommend that the final payment made to resigned employees as calculated by
the Payroll Officer should be counter-checked by a senior member of the Finance Department. We recommend that a standard payment calculation worksheet be used for all such calculations. We recommend that the person double checking the final payment calculation sign-off on the worksheet as evidence of approval of the computation for payment.
Follow-Up Review 4. From March 2013 onwards, the CFO reviewed and approved all termination payments
with the Payroll Officer. This involved reviewing CHRIS21 screen dumps of leave entitlements, marginal tax payments, and gross and net pay calculations from the Payroll System. From June 2013, an Excel template was used to standardise the presentation of the termination pay calculation for approval by the CFO. We have sighted the termination payment worksheet signed by the Payroll Officer and CFO for a sample of 15 employees who departed from the organisation since January 2013.
Status Completed.
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4. Leave Management Summarised Findings and Impact The critical issue is the inability to identify situations where staff have taken leave without submitting appropriate documentation to the Payroll Officer for the leave to be processed within the Payroll System. This is the responsibility of the employee and the manager involved, and not the Payroll Officer. Without any practical controls, there are opportunities for staff to intentionally or unintentionally take leave without reducing their leave balances.
Original Recommendations 5. We recommend that Executive issue an official communication reminding all
employees of the necessity to submit leave application forms on a regular basis. 6. We recommend that Executive implement the requirement that the Manager – Finance
issue a listing of employees with their leave balances for each department’s manager to review and approve every six months. This would place an onus on management to affirm the accuracy of existing leave records. However, management should ensure that this verification exercise is carried out diligently for it to be effective.
Follow-Up Review 5. Numerous reminders were issued to staff on the necessity of submitting leave
applications. A more effective communication tool is the current practice since June 2013 where the Payroll Officer produces a fortnightly ‘name and shame’ report that lists instances of annual leave, sick leave, long service leave, rostered days off (RDOs) and time-off in lieu of leave (TOIL) submitted on timesheets but not captured in the Employee Self-Service (ESS) for Executive to review. This report also highlights staff that have not submitted timesheets for the pay period and timesheets not approved by the due date prior to the payroll run. We have sighted all fortnightly ‘name and shame’ reports.
6. From August 2013, the Payroll Officer generates and distributes bona fide reports to managers and supervisors that highlights: (i) standard, overtime and extra hours worked and (ii) leave, RDOs and TOIL taken for all their staff. If the managers and supervisors reject the information contained in the bona fide reports, the Payroll Officer liaises with that manager or supervisor to resolve the discrepancies. We have sighted a sample of the bona fide reports that documented investigation of discrepancies.
Status Completed.
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5. Employee Exit Checklist Summarised Findings and Impact Failure to comply with this requirement may result in the risk of critical procedures in the employee exit process not being carried out such as: (i) company property (including motor vehicle, credit card, mobile phone, laptop, equipment and keys) not returned by employees, (ii) resigned employees with active user accounts to our information systems, (iii) transferred employees with inappropriate access to systems that are incompatible with their new job responsibilities and (iv) continued remuneration being paid to employees after resignation.
Original Recommendations 7. We recommend that the completion and sign-off of the employee exit checklist be
made a compulsory requirement in processing the resignation payment of employees. 8. We recommend that the employee exit checklist should also be applied to staff
transferring to other roles within the same department or to different departments (i.e. any change of duties). Their new job responsibilities may require their previous system access to be modified or even removed, or the return of company assets.
Follow-Up Review 7. We were advised by management that the employee exit checklist is a compulsory
requirement. However, we noted that the checklist was not compulsorily enforced, i.e. termination payments and resignations are processed even if the checklists are not completed. We sighted that exit checklists were completed for a sample of 19 out of 22 employees who resigned since October 2012 (the date of the original audit). Given the high compliance rate, we concluded that it was not imperative to compulsorily enforce the completion of these checklists in order to process resignations.
8. We were advised by management that the employee exit checklist is applied to staff transferring to other roles within the same department or to different departments. However, we were advised by the Organisational Development Consultant that no checklists were completed for a sample of 3 transferred employees. We recommend that Policy No.35 Exit Procedure – Return of Property / Records Management should be amended to include the requirement for the employee exit checklist to be applied to staff transferring departments.
Status In Progress (expected completion end of June 2014).
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6. Data Mining Tests Summarised Findings and Impact Data analytics involves exporting the payroll database into a spreadsheet program where indicative analytical tests are conducted utilising principles of data mining and matching to large quantities of data. The results of these tests are not definitive. They are indicative tests in that they identify ‘red flags’ or possible anomalies that may not otherwise be detected through standard procedures and reviews of paper audit trails.
Original Recommendations 9. We recommend that the Manager – Finance periodically conduct data mining tests.
Follow-Up Review 9. In February 2014, the Payroll Officer developed a report to download or export the
payroll master file. This will now enable the Manager – Finance to conduct data mining tests on the payroll master file every six months. Planned tests include (i) employee names that appear more than once on the payroll register, and (ii) bank accounts that appear more than once on the payroll register.
Status Completed.
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7. Business Continuity Summarised Findings and Impact A business continuity and disaster recovery plan was developed to safeguard the payroll function in July 2010. However, we were advised by management that this plan was not fully implemented and remains outdated. Hence, there are doubts over the viability and effectiveness of any back-up plan in the event that the Payroll System is malfunctioning, the payroll payment file is rejected or the banking system is offline.
Original Recommendations 10. We recommend the determination of a back-up plan in the event that the Payroll
System is malfunctioning, the payroll payment file is rejected or the banking system is offline.
Follow-Up Review 10. This issue will be actioned as part of the update to the City of Burnside’s Business
Continuity Plan to be driven by the Work Health Safety & Risk Management Co-Ordinator with Local Government Risk Services. The update is expected to commence in March 2014 with completion in May to be followed by training and testing of the continuity plan by July.
Status In-Progress (expected completion date July 2014).
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8. User Access to CHRIS Summarised Findings and Impact Access levels (e.g. functionality to only view data or functionality to input and amend data) granted to CHRIS21 should be appropriate for the scope of responsibilities and job duties of each user of the payroll system.
As payroll data is materially significant and confidential, it would be prudent for the Manager – Finance to periodically review that only valid users have access to CHRIS and their level of access is appropriate for their work responsibilities and duties.
Original Recommendations 11. We recommend the removal of user profiles of the following staff who have full access
including the ability to process the payroll run, amend payroll related data and view salaries even though their job responsibilities do not require such functionality within CHRIS21 – the Manager – Organisational Development and Governance, the Systems Accountant, the Financial Accountant, the OHS&W / Risk Management Co-Ordinator and the Information Systems Officer.
12. We recommend that the Manager – Finance review CHRIS21 user access profiles at least every six months. This control procedure is the fall-back for identifying any resigned staff with active user profiles to CHRIS21 or existing staff with inappropriate levels of access due to a change in their job functions.
Follow-Up Review 11. At the date of our follow-up review, the Finance Department had removed the user
accounts of many of the staff that did not require access to CHRIS21. Arising from this follow-up review, we recommend the Finance Department make the following changes in CHRIS21: Delete the user accounts of seven current or former employees. The accounts of
these employees are currently locked. From a controls perspective, these accounts should be deleted if the employees have resigned or no longer require access to CHRIS21. The names of these employees were not disclosed in this report but they were separately provided to the Finance Department. The department should confirm with Frontier whether deletion of user accounts would also remove transaction histories of these accounts. If this is the situation, then the Finance Department should leave these accounts locked as ‘inactive’.
Delete the user account of the Manager – Finance whose account is linked to the master security profile which enables addition, modification or deletion of pay data including remuneration and bank accounts. The Manager – Finance does not require access to CHRIS21 as part of his normal duties.
Modify the user account of the Work Health Safety & Risk Management Co-Ordinator from the master security profile to another profile which enables view only access. The Work Health Safety & Risk Management Co-Ordinator does not
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require his current wide-ranging access to execute his normal duties. Create specific user accounts for the Finance Business Systems Support Officer
and the IT Projects Co-Ordinator. Cease the ability to utilise generic user accounts. Both employees access CHRIS21 for various purposes including to make system changes, to create or delete user accounts, and to write reports. However, both employees utilise a user account dedicated to consultants from Frontier (the software provider of CHRIS21). When employees utilise generic user accounts, this creates difficulties in definitively identifying the person for audit trail purposes or in the event of investigations. In addition, members of the Information Systems Department are able to utilise this generic user account.
12. The CFO conducted reviews of CHRIS user access profiles in March 2013 and January 2014. We were advised that such reviews will now take place every 6 months.
Status In Progress (expected completion date end of March 2014).
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9. Physical Security Summarised Findings and Impact Doors to the Pay Office where the Payroll Officer is stationed are not locked outside of business hours. Unauthorised staff are able to access hard copies of reports that contain employees’ salaries, bank account details, addresses as well as other pay run information.
Original Recommendations 13. We recommend that the Pay Office is locked outside of business hours. The Manager
– Finance should be provided with a spare key.
Follow-Up Review 13. As there is no lock in the Pay Office, a lockable cabinet was provided to store payroll
documentation from May 2013 onwards. From December 2013, the Payroll Officer moved into a shared office with the Finance Business Systems Support Officer. We were advised by the Payroll Officer that the cabinet is locked after business hours. Only the Payroll Officer and the Finance Clerk have keys to this cabinet. The Finance Clerk requires access to utilise the cheques which are stored in the cabinet.
Status Completed.
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10. Policies and Procedures Summarised Findings and Impact HR Policy No.8 Higher Duties applies to the appointment of employees to higher duties. However, this policy / procedure has not been revised since its last review in November 2005.
Organisational Development Policy No.11 - Leave applies to the processing of the various types of leave available to employees. However, this policy / procedure has not been revised since its last review in May 2007.
Policy No.35 Exit Procedure – Return of Property / Records Management stipulates that the department manager and resigned employee are required to complete the employee exit checklist. However, this policy / procedure has not been revised since its last review in May 2008.
Original Recommendations 14. We recommend updating the payroll related policies and procedures and ensuring that
they are revised on a regular basis so that they capture the latest required processes. 15. We recommend issuing regular communication (such as an e-mail to all staff every six
months) to remind employees of the requirement to comply with payroll policies, procedures and forms.
Follow-Up Review 14. We were advised by the Organisational Development Consultant that payroll related
Human Resource management protocols will be reviewed on a prioritised order by the end of June 2014. At the date of our follow-up review, the Organisational Development Policy No.11 – Leave was being re-drafted. As the Enterprise Agreement essentially covers only the eligibility to these conditions, management protocols are still required to document the stipulated procedures.
15. The communication of payroll related Human Resource management protocols will be actioned by the new Manager – People and Culture when these protocols are updated.
Status In Progress (expected completion end of June 2014).
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11. Efficiencies in Payroll Summarised Findings and Impact The Payroll Officer spends approximately 4 hours every payroll run following-up with (i) staff who failed to submit timesheets, (ii) managers who failed to approve timesheets and (iii) staff with inconsistencies between their timesheets and the ESS System. This resulted in an unnecessary wastage equivalent to 13 business days per year.
Original Recommendations 16. We recommend implementing the following procedure:
• The Payroll Officer provides listings of (i) staff who failed to submit timesheets, (ii) managers who failed to approve timesheets and (iii) staff with inconsistencies between their timesheets and the ESS to department managers every payroll run. The department managers are responsible for following-up with the relevant staff. It should no longer be the responsibility of the Payroll Officer to follow-up with staff.
• Outstanding or incomplete timesheets should be approved and submitted on time.
Transferring the responsibility for following-up on outstanding or incomplete timesheets to department managers should increase their diligence on communicating and enforcing the correct submission of timesheets with their department’s staff.
Follow-Up Review 16. Since June 2013, the Payroll Officer produces a fortnightly ‘name and shame’ report
for Executive and Management to follow-up on the following instances: Annual leave, sick leave, long service leave, RDOs and TOIL submitted on
employees’ timesheets but not captured in the ESS; Staff that have not submitted timesheets for the pay period; and Timesheets not approved by the due date prior to the payroll run. We have sighted the fortnightly ‘name and shame’ reports produced by the Payroll Officer for Executive and Management review. We were advised by the Payroll Officer that non-compliance has reduced since the introduction of the ‘name and shame’ report. The time savings of 4 hours per fortnight or 13 business days per year resulting from this audit recommendation was utilised by the Payroll Officer to (i) generate and review the payroll exception reports and (ii) implement other recommendations on internal controls arising from the business service review.
Status Completed.
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12. Structure of the Payroll Function Summarised Findings and Impact The structure of the payroll function within the Finance Department or the Organisational Development and Governance Department varies across Councils. The main benefit of structuring the payroll function within the Finance Department is the expectation that there would be appropriate and robust controls over payroll risks due to the function being managed by a manager with financial expertise. The main benefit of structuring the payroll function within the Organisational Development and Governance Department is the improved co-ordination of work processes due to the close linkage between human resources and payroll activities.
Original Recommendations 17. We recommend that Executive re-assess and determine the most appropriate structure
for the payroll function, i.e. whether to retain the function within the Finance Department or whether to transfer the function to the Organisational Development and Governance Department.
Follow-Up Review 17. After consideration of the advantages and disadvantages, the General Manager –
Corporate Services, the CFO, the Manager - Organisational Development and Governance and the Payroll Officer agreed that the payroll function should remain with the Finance Department in August 2013. This position was re-confirmed with the Acting Chief Executive Officer and the Acting General Manager – Corporate Services in February 2014.
Status Completed.
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Audit Committee Agenda Item 5.5 15 April 2014
Item No: 5.5 To: Audit Committee Date: 15 April 2014 Author: Kenneth Ng – Internal Audit Manager Contact: 8366 4263 Subject: FOLLOW-UP ON BUSINESS SERVICE REVIEW OF FINANCE –
ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE (OPERTAIONAL)
Attachments: A. Report – Follow-Up on Business Service Review of Finance Department – Accounts Payable and Accounts Receivable Functions
Prev. Resolution: N/A
Officer’s Recommendation
That the Report be received.
Purpose
1. To provide the Audit Committee with the results of the follow-up conducted on the Business Service Review of the Finance Department – Accounts Payable and Accounts Receivable Functions that was completed in December 2012.
Strategic Plan
2. The following Strategic Plan provision is relevant:
“Delivery of good governance in Council business”
Communications / Consultation
3. The following communication / consultation has been undertaken:
3.1. Discussions with the Chief Financial Officer and relevant staff from the Finance Department.
Statutory
4. There are no statutory implications or requirements associated with this recommendation.
Policy
5. There are no policy implications or requirements associated with this recommendation.
Risk Assessment
6. Failure to implement the recommendations arising from the internal audit may result in lost opportunities to achieve performance improvement opportunities in effectiveness and efficiency.
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Finance
7. Failure to implement the recommendations arising from the internal audit may result in lost opportunities to strengthen internal controls that may potentially lead to financial losses.
Discussion
8. The Business Service Review of the Finance Department was completed in late 2012. It comprised seven reports. The report on the accounts payable and accounts receivable functions was completed in December 2012 and tabled at the Audit Committee meeting in June 2013. Updates from the Finance Department on the progress of implementation of audit recommendations were tabled at the Audit Committee meetings in August 2013 and February 2014.
9. This follow-up review was designed to :
9.1. assess the status of the Finance Department’s progress in implementing the audit recommendations covering the accounts payable and accounts receivable functions; and
9.2. determine whether the recommendations achieve their intended purposes.
10. The original Business Service Review in December 2012 concluded that there was a high risk of fraudulent electronic funds transfer (EFT) and cheque payments. The Finance Department has addressed this risk through implementation of the following controls:
10.1. Two CommBiz authorisers to release EFT disbursements.
10.2. Management review of system-generated exception reports on (i) new vendors added and (ii) changes to the banking details of vendors.
10.3. Vendors are required to provide documents on their letterhead to support (i) the addition of new vendors or (ii) amendments to details of existing vendors within the supplier master file.
11. The following table summarises the status of audit recommendations as at February 2014.
Audit Findings No.
Completed 8
In-Progress 4
Outstanding 0
Total 12
12. As a result of the original audit, the new leadership in the Finance Department has cultivated a strong culture focusing on internal controls of financial processes within the Department. This was reflected by the fact that the Finance Department has completed implementation of the majority of recommendations arising from the original audit.
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13. This control-oriented culture was also evident in several cases outside of audit projects. In these cases, staff members of the Finance Department sought advice from the internal audit function as to the adequacy of internal controls over proposed changes to finance procedures.
Conclusion
14. The Finance Department has implemented eight of the 12 recommendations from the Business Service Review of the accounts payable and accounts receivable functions.
15. The majority of ‘in-progress’ recommendations mostly involved other departments or external parties.
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Internal Audit
Follow-Up on Business Service Review of Finance Department – Accounts Payable and Accounts
Receivable Functions
Ref: 14-08 February 2014
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Contents Executive Summary 1
Recommendations – Accounts Payable 2
Recommendations – Accounts Receivable 11
Distribution
For action For information
Martin Cooper Chief Financial Officer Paul Deb Chief Executive Officer Gary Long Manager - Finance Nigel Morris General Manager – Urban
Services Louise Miller-Frost General Manager – Corporate
Services Graeme Brown General Manager – Community
& Development Services
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Executive Summary Objective The main objective of this internal audit was to follow-up on the business service review of the Finance Department – accounts payable and accounts receivable functions that was completed in December 2012. Essentially, this follow-up review was designed to: Assess the status of the Finance Department’s progress in implementing the
recommendations arising from the business service review (specifically covering the accounts payable and accounts receivable functions); and
Determine whether the recommendations achieve their intended purposes.
Summary The following table summarises the status of audit recommendations as at February 2014.
Audit Findings No. Completed 8
In-Progress 4
Outstanding 0
Total 12
As a result of the original audit, the new leadership in the Finance Department has cultivated a strong culture focusing on internal controls of financial processes within the department. This was reflected by the fact that the Finance Department has completed implementation of the majority of recommendations arising from the original audit. ‘In-progress’ recommendations mostly involved other departments or external parties. This control-oriented culture was also evident in several cases outside of audit projects. In these cases, staff members of the Finance Department sought advice from the internal audit function as to the adequacy of internal controls over proposed changes to finance procedures.
Background Our original business service review in December 2012 concluded that there was a high risk of fraudulent electronic funds transfer (EFT) and cheque payments at the City of Burnside. The Finance Department has addressed this risk through implementation of the following controls: Two CommBiz authorisers to release EFT disbursements. Management review of system-generated exception reports on (i) new vendors added and
(ii) changes to the banking details of vendors. Vendors are required to provide documents on their letterhead to support (i) the addition of
new vendors or (ii) amendments to details of existing vendors within the supplier master file.
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Recommendations – Accounts Payable 1. Fraud Exposure Relating to Cheque Payments Summarised Findings and Impact All staff members of the Finance Department are able to perpetrate fraudulent cheque payments through their ability to perform the following tasks: Create a new vendor in the supplier maintenance module of Finance One; Make changes to the supplier master file; Create a journal transaction for cheque payment; and Process cheque payment runs. The weaknesses in internal controls included: Inadequate segregation of duties; No reviews of system-generated reports on additions and amendments to the supplier
master file; and No reviews of system-generated reports on cheque payments from Finance One.
Original Recommendations 1. We recommend that the Manager – Finance review two reports on the supplier master
file: (i) new vendors added and (ii) changes to the banking details of vendors. This review should coincide with the fortnightly payment runs. The objective of this review is to confirm that newly created vendors or amendments to banking details are supported by documentation from the vendors.
2. We recommend that the General Manager – Corporate Services periodically review the two abovementioned reports. This is to obtain assurance that the Manager – Finance has reviewed both reports on a regular basis. This is necessary as the review of both reports by the Manager – Finance is a critical control that must be strictly enforced due to the absence of segregation of duties surrounding the cheque payment process.
3. We recommend that vendors provide documents on their letterhead to support new vendors or amendments to details of existing vendors within the supplier master file.
Follow-Up Review 1. Technology One Consulting was engaged to develop the two reports on new vendors
and changes to banking details which were implemented in September 2013. We sighted these reports signed by the Manager – Finance.
2. Periodic reviews by the Chief Financial Officer (CFO) of the two reports on new vendors and changes to banking details commenced in January 2014. We sighted these reports signed by the CFO.
3. The requirement for letterhead documents from vendors was implemented in May 2013. From January 2014 onwards, these documents were saved in the supplier master file on Finance One which enables easy retrieval for confirmation. From March 2014 onwards, the Finance Officer attaches the letterhead documentation for new suppliers or suppliers with changes to banking details together with the two reports reviewed by the Manager – Finance every payment run.
Status Completed.
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2. Fraud Exposure Relating to EFT Payments Summarised Findings and Impact All staff members of the Finance Department are able to perpetrate fraudulent electronic funds transfer (EFT) payments through their ability to perform the following tasks: Create a fictitious vendor in the supplier maintenance module of Finance One; Amend the banking details of vendors in the supplier master file to their own personal
bank account; Create a journal transaction for EFT payment; Allow the transaction to be captured within the fortnightly EFT payment run; and The EFT is processed and deposited into the perpetrator’s own bank account. The weaknesses in internal controls included: Inadequate segregation of duties; No reviews of reports on additions and amendments to the supplier master file; and No reviews of system-generated reports from Finance One or CommBiz. The
selection criteria should focus on payment types with a higher probability of being suspicious transactions or unexpected patterns that warrant further investigation. Enforcement of this control would serve as a deterrent to perpetration of EFT fraud.
Original Recommendations 4. We recommend that the Manager – Finance review a suite of system-generated
reports on a regular basis (every three or six months). Examples include: Payments above a stipulated dollar value; Payments above a stipulated amount to the same vendor; Payments of the same amount to the same vendor; More than a determined no. of payments to the same vendor; Audit logs; Attempts to gain unauthorised access, i.e. incorrect passwords; Attempts to initiate unauthorised functions; Attempts to exceed transaction limits; and Rejected transmissions.
Follow-Up Review 4. In May 2013, CommBiz confirmed that only audit logs were available. With the
assistance of Information Systems and Records Management Department, the quarterly audit log was reviewed in June 2013. This review revealed that the audit log offered minimal value. In a report from the statutory auditor to Council for the financial year ended 30 June 2013, an issue was raised on single authorisation for release of EFT funds. In December 2013, the CommBiz administrator implemented the requirement for two authorisers to approve EFT disbursements.
Status Completed.
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3. Review of CommBiz User Accounts Summarised Findings and Impact Our review of current users highlighted (i) four staff members who do not require access given their position duties and (ii) four staff members whose accounts are suspended but these accounts should be terminated to prevent inadvertent re-activation. The above findings may indicate that CommBiz user accounts are not regularly reviewed by the Manager – Finance.
Original Recommendations 5. We recommend that the Manager – Finance remove user accounts of the
abovementioned eight staff members from CommBiz. 6. We recommend that the Manager – Finance review user accounts to the CommBiz
System every six months to ensure that (i) accounts exist only for staff members who are required to use the system in accordance with their position responsibilities and (ii) the level of access granted is appropriate for the users’ duties. Accounts of any users not meeting these requirements should be removed from the system.
Follow-Up Review 5. The abovementioned eight staff members were removed from CommBiz in April 2013.
We sighted and confirmed the validity of the list of CommBiz users and authorisers provided by the Information Systems Department as at February 2014.
6. Two reviews of CommBiz user accounts were completed in April 2013 and January 2014. Half-yearly reviews will continue as recommended.
Status Completed.
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4. CommBiz EFT Payment Files Summary Findings and Impact The EFT file with payment details that is uploaded onto the CommBiz System is saved on a shared drive for the Finance Department. This file is an editable text file which means that the payment details can be modified. Both the file and directory are not password protected, which enables any staff member of the department to access and modify the file.
Original Recommendations 7. We recommend that the Manager – Finance store the EFT payment files in a directory
that is restricted to only personnel who are required to access these files – namely the Manager – Finance, Finance Officer and Accounts Payable Officer.
Follow-Up Review 7. With the assistance of the Information Systems and Records Management
Department, a secured directory was created to save EFT payment files for exporting to CommBiz. This directory is accessible to the CFO, Finance Officer and Accounts Payable Officer. We independently confirmed the security of this directory with the Information Systems Department.
Status Completed.
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5. Segregation of Duties Relating to Manager - Finance Summary Findings and Impact A new Manager – Finance has been appointed by the City of Burnside. It is anticipated that the new Manager – Finance may review and implement changes to the department’s structure and processes. Some of these changes may relate to the Manager – Finance’s own access and functionality to Finance One, CommBiz and other finance related systems.
Original Recommendations 8. We recommend a review of the system access of the Manager – Finance to ensure
that the new manager does not have the functionality to initiate, approve, execute and review financial processes as this would constitute inadequate segregation of duties.
Follow-Up Review 8. During April and May 2013, the Systems Accountant and Payroll Officer provided the
General Manager – Corporate Services with details of the access levels of the CFO to financial and payroll systems. This review concluded that the CFO does not have the functionality to initiate, approve, execute and review financial and payroll processes.
Status Completed.
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6. Promotion of EFT Payments Summary Findings and Impact In 2011-12, the City of Burnside paid the following creditors:
Quantity $ EFT 5,246 $26.090 million
Cheques 1,123 $3.686 million
Total 6,369 $29.776 million
Cheques are a relatively high cost payment method. The Council would achieve processing cost savings through reduced usage of cheques and greater usage of electronic payment methods.
Original Recommendations 9. We recommend that the Manager – Finance develop action plans to promote the use
of EFT payments to vendors. The outcomes of these action plans should be monitored, enhanced and reported to the General Manager – Corporate Services.
Follow-Up Review 9. There were several vendors paid by cheques that offer a BPay option which is
available in CommBiz. From April 2013, investigations revealed that two new fields to record the biller code and reference no. were required to be created in the supplier master file to streamline the BPay process on CommBiz. This would enable the BPay payment run to generate a BPay file for import to CommBiz similar to an EFT payment run. This functionality was expected to be completed by end of March 2014. In January and February 2014, we sighted letters that were distributed to all suppliers promoting the preferred payment method of EFT and BPay with the intention to cease cheque payments in March 2014.
Status In Progress (expected completion date end of March 2014).
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7. Business Continuity Plan Summary Findings and Impact The City of Burnside’s business continuity and disaster recovery plans do consider the CommBiz EFT System. However, the plan is not sufficiently detailed with respect to a contingency plan in the event of EFT system failure.
Original Recommendations 10. We recommend that the Manager – Finance ensure that future revisions of the
Council’s Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP) capture the requirements for a specific contingency plan for EFT system failure. This may entail the authorised signatories sending the payment files directly to the bank for processing. However, if e-mail is used to communicate with the bank, communications are not encrypted as there is no special protection over e-mails. Users should not submit EFT confidential data, files or passwords through e-mails.
Follow-Up Review 10. This issue will be actioned as part of the update to the City of Burnside’s BCP to be
driven by the Work Health Safety & Risk Management Co-Ordinator with Local Government Risk Services. The update is expected to commence in March 2014 with completion in May to be followed by training and testing of the continuity plan by July.
Status In Progress (expected completion date July 2014).
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8. Stop Payment Procedures Summary Findings and Impact Due to the fact that it has rarely occurred, the Finance Department is not sufficiently familiar with the procedures to be taken in the event that an EFT payment run has to be reversed or recalled from the Commonwealth Bank of Australia (CBA). Such recalls may be required in the event of processing error or suspected fraud.
Original Recommendations 11. We recommend that the Manager – Finance develop and document an internal
procedure for recalling EFT payment runs from the bank. This may involve issuing a stop payment command to the bank. Management should ensure that such reversals are investigated with appropriate documentation supporting the basis for initiating the reversal. ‘As of’ adjustments, open items, reversals and other anomalies in system operations present a potential for fraudulent manipulation that should be stringently controlled and monitored.
Follow-Up Review 11. CommBiz has confirmed that the Finance Department should contact the help desk of
the CBA via telephone or e-mail with the transaction details. An internal procedure was developed for stopping payments for both EFT and cheques. This procedure was provided to the Audit Committee at its meeting on 5 February 2014.
Status Completed.
146
Follow-Up on Business Service Review of Finance Department
5.5 BSR Finance Accounts Payable B. Project Report follow up 10
9. Corporate Cabcharge Cards Summary Findings and Impact Whilst there is no cost to the Council for utilising corporate cabcharge cards other than administrative time, the low usage ($177.16 was incurred on corporate cabcharge cards by one user in 2011-12) and the alternate payment option of using the corporate credit card would seem to eliminate the need for the corporate cabcharge cards.
Original Recommendations 12. We recommend that executive cancel corporate cabcharge cards.
Follow-Up Review 12. After consideration of the advantages and disadvantages of using the cabcharge cards
rather than credit cards, Executive decided to continue utilisation of cabcharge cards in December 2012 with the following stipulations: (i) each General Manager’s expenditure is approved by the Chief Executive Officer (CEO) and (ii) the CEO’s expenditure is approved by the Mayor. We enquired with the Finance Department, the Office of the CEO and the Customer Services Team, and we were advised that cabcharge statements on the corporate cards have not been approved by the CEO or Mayor since at least the original audit in December 2012. We recommend the Finance Department to forward monthly cabcharge statements on the corporate cards to the Office of the CEO for approval by the CEO or Mayor.
Status In-Progress (expected completion date end of March 2014).
147
Follow-Up on Business Service Review of Finance Department
5.5 BSR Finance Accounts Payable B. Project Report follow up 11
Recommendations – Accounts Receivable 10. Procedures for Discounts, Waivers, Postponements and Write-Offs of Fees and Charges Summary Findings and Impact Some departments have management protocols covering the procedures for authorising discounts, waivers, postponements and write-offs for amounts owing to Council. Some departments’ management protocols are outdated and do not reflect current or desired practice. Some departments do not have management protocols for these situations. It is imperative that all departments develop formalised procedures for managing discounts, waivers, postponements and write-offs. Lack of prescribed management protocols and poor controls in enforcing these protocols may result in loss of revenue for Council.
Original Recommendations 13. We recommend that departments develop management protocols for managing
discounts, waivers, postponements and write-offs for revenue sources relevant to these departments.
14. We recommend that department managers perform regular self-audits of their department’s compliance with these management protocols. This should involve confirming whether discounts, waivers, postponements and write-offs were approved by appropriate authorities and whether they satisfied the types of circumstances that constituted sufficient justification. Department managers should review a report of discounts, waivers, postponements and write-offs to identify any ‘suspicious’ approvals or unexpected trends that warrant further investigation. These self-audits should be conducted every six months.
Follow-Up Review 13. The Finance Department plans to obtain Executive agreement on the approach for
department managers to develop management protocols covering discounts, waivers, postponements and write-offs for departments that generate income. Due to the different departmental practices, an umbrella management protocol may not be applicable. Research will be conducted on equivalent protocols at other Councils. A key component will be confirming and potentially refining information systems to develop the report of discounts, waivers, postponements and write-offs for management reviews on a regular basis.
14. The self-audit assessments would commence after adoption of the proposed protocol. Status In Progress (expected completion date end of June 2014).
148
Follow-Up on Business Service Review of Finance Department
5.5 BSR Finance Accounts Payable B. Project Report follow up 12
11. Follow-Up Procedures Summary Findings and Impact Section 181 of the Local Government Act, 1999 refers to late payment penalties for rates in arrears. In addition, the Finance Department has a stipulated procedure for following-up on overdue rates notices. However, there is an absence of formalised procedure for recovering debtors other than rate debtors. Even though responsible officers may follow certain procedures, these procedures may not be reflective of best practice and these undocumented procedures may be lost in the event that the officers resign from the City of Burnside. Implementing and adhering to a good set of practices for recovering amounts owed to Council may make a difference to the timeliness and recoverability of these debts.
Original Recommendations 15. We recommend that relevant department managers develop a management protocol
for following-up on debtors other than rate debtors. An important feature should cover documentation of follow-up actions taken by officers as this history is important for subsequent recovery efforts as well as potential legal action.
Follow-Up Review 15. The Finance Officer prints the aged listing of non-rate debtors every month. Recovery
actions are focused on debtors over 60 days overdue or debtors with significant balances. Recovery actions are agreed with relevant department managers, and debt collection expertise is sought from the Rates Office where appropriate. Supporting documentation is attached to the aged listing of debtors as evidence of follow-up action. The CFO and Finance Officer review the aged listing of non-rate debtors every month. This process proved successful in controlling the non-rate debtors in 2012-13. We sighted a sample of the aged debtors reports that contained notation of recovery actions undertaken.
Status Completed.
149
Follow-Up on Business Service Review of Finance Department
5.5 BSR Finance Accounts Payable B. Project Report follow up 13
12. Debtor Invoice Requests Summary Findings and Impact Staff members from other departments submit a Debtor Invoice Form through the Finance Request System to the Finance Department to create a debtor and / or raise an invoice. However, some staff members submit the Debtor Invoice Form through e-mail or via internal mail.
Original Recommendations 16. We recommend that debtors are created only from the Debtor Invoice Form submitted
through the Finance Request System. All other practices should be discouraged by the Finance Department.
Follow-Up Review 16. This was reinforced to all departments in April 2013. As at March 2014, we were
advised by the Finance Department that departments have subsequently complied with this procedure. In the odd situation where a staff member has submitted the Debtor Invoice Form through e-mail, the Finance Officer duly advises the staff member of the correct procedure.
Status Completed.
150
Audit Committee Agenda Item 5.6 15 April 2014 Item No: 5.6 To: Audit Committee Date: 15 April 2014 Author: Stephen Smith – Corporate Planning and Risk Coordinator General Manager and Division
Louise Miller-Frost – General Manager, Corporate Services
Contact: 8366 4205 Subject: UPDATE TO RISK MANAGEMENT POLICY (STRATEGIC) Attachments: A. Risk Management Policy (track changes)
B. Risk Management Policy (new version) Prev. Resolution: A0225, 7/2/2012
Officer’s Recommendation
1. That the Report be received.
2. That the updated Risk Management Policy be endorsed.
3. That the updated Risk Management Policy be presented to Council for consideration.
Purpose
1. To provide the Audit Committee with an update on areas of improvement within the Risk Management Policy.
Strategic Plan
2. The following Strategic Plan provision is relevant:
“Delivery of good governance in Council business”
Communications/Consultation
3. The following communication / consultation has been undertaken:
3.1. Discussions with Victor Di Maria – Manager Risk from the Local Government Association Mutual Liability Scheme.
Statutory
4. The following legislation is relevant in this instance:
Section 134(4)(b) of the Local Government Act,1999 (the Act) requires Council to adopt risk management policies, controls and systems specifically in relation to borrowing and related financial arrangements
Policy
5. The following Council Policy is relevant in this instance:
Risk Management
151
Audit Committee Agenda Item 5.6 15 April 2014 Risk Assessment
6. There are no risks associated with the recommendation.
Finance
7. There are no financial implications for the City of Burnside in respect of the recommendation.
Discussion
8. The City of Burnside has had a Risk Management Policy and Framework in place since 2003.
9. The Policy was last reviewed by the Audit Committee on 7 February 2012 and bought into line with the recently published new Australian Standard AS31000.
10. The Policy has been reviewed in part as a result of the recent business interruption event on 4 February 2014. An outcome of this review has been to link or highlight more clearly the relationship between risk management and business continuity planning in managing business disruption risks.
11. In reviewing this Policy, comparison has been made with a number of other metropolitan Council’s risk management policy statements to ensure consistency and appropriate coverage of all aspects of the risk management process.
12. A new statement has been included in the responsibility part of the Policy to define the responsibility of Council into relation to the oversight of the management of risk.
13. There is no significant change in the way the City of Burnside documents and manages risks as a result of the modifications to this Policy.
14. Subject to the adoption of the Risk Management Policy, the Risk Management Framework document will then be reviewed and updated as necessary to ensure it remains consistent with the updated Policy. The updated framework will then be tabled at a future Audit Committee meeting for approval.
Conclusion
15. The Risk Management Policy has been reviewed to update the Policy to clearly specify how business continuity planning fits within the Risk Management Policy and more widely the management of risk.
152
City of Burnside Policy Manual Page 1
Risk Management Policy
Classification: Council Policy
Policy Name: Risk Management
First Issued / Approved: March 2008
Last Reviewed: 7th FebruaryApril 20124 (A0225)
Next Review: January 2015 April 2015
ECM tracking number: TBA
Responsible Officer: Manager Organisational Development and GovernanceManager People and Culture
Relevant Legislation: Local Government Act 1999
Related Documents:
ISO31000:2009 Risk Management – Principles and Guidelines
City of Burnside Risk Management Framework
Internal Financial Controls Policy (Audit Committee A0273)
1. Introduction
Council will adopt a structured and systematic approach to Risk Management with the aim of improving its decision-making practices and performance and thereby minimising risk.
2. Strategic Plan Desired Outcomes
2.1 Leading best practice and compliance in Council BusinessDelivery of good governance in Council business
3. Our Approach
3.1 Remain compliant with all relevant legislation, standards and codes through effective risk managementRegularly review, update and adopt leading governance, risk management and administrative practices.
3.2 Ensure provision of Council services meets community needs.Review services to
ensure they meet community needs facilitating efficient and effective outcomes of the Strategic Community Plan.
4. Legislative Requirements and Corporate Policy Context
4.1 Section 125 of the Local Government Act 1999 requires Council to ensure that appropriate policies practices and procedures of internal control are implemented and maintained in order to assist the Council to carry out its activities in an efficient and orderly manner to achieve its objectives,.
4.2 Section 134(4)(b) of the Local Government Act 1999 (the Act) requires Council to
adopt risk management policies, controls and systems specifically in relation to borrowing and related financial arrangements.
153
City of Burnside Policy Manual Page 2
4.2 It is prudent for Council to make this Policy in order to address other “risks” identified in other legislation such as Emergency Management Act, Work Health and Safety Act, etc.
5. Definitions
5.1 Risk Management - the culture, processes and structures directed towards realising potential opportunities, whilst managing adverse effects.
5.2 Risk - the effect of uncertainty on Council’s business objectives whether it be
positive (opportunity) or negative (threat)... 6. Policy
6.1 The City of Burnside is committed to applying risk management principles across all of its operations and functions (inclusive of business continuity arrangements), in order to more effectively realise Council’s Vision, Desired Outcomes, Approaches and Actions.
6.2 Risk Management involves adopting systematic procedures and practices to
identify, evaluate, treat and monitor risk in all Council activities so that the risks associated with these activities are controlled and opportunities maximised. The process of Rrisk Mmanagement comprises identifying opportunities as for avoiding or mitigating losses as well as for responding to an adverse event or action.
6.3 Council will integrate risk management practices into its dealing with
stakeholders, corporate culture and its everyday business operations at the strategic and operational levels. Included in this are arrangements to minimise the impact of business disruptions on Council’s critical functions or community services.
6.4 Council will maintain a Risk Management Framework consistent with the
guidelines and principles of risk management as set out in International Standard ISO31000:2009 – Risk Management Principles and guidelines. The aim of this framework is to provide a consistent process for dealing with uncertainties likely to impact on the achievement of the Vision.
Scope 6.5 This policy encompasses every member of the organisation, including Elected
Members, Chief Executive Officer, Leadership Team, employees and volunteers given that each has responsibility for the effective management of risk with their area(s) of responsibility.
Responsibility 6.6 Council is responsible for setting the organisation’s risk appetite and oversight of
the organisation’s systems for managing risk. To assist Council in discharging its responsibility in relation to risk management, the Council may seek the views of the Audit Committee.
6.67. Chief Executive Officer is responsible for ensuring that a risk management
process is established, implemented and maintained in accordance with this Risk Management Policy.
154
City of Burnside Policy Manual Page 3
6.78 Leadership Team members are accountable for the implementation, maintenance and evaluation of risk management within their areas of responsibility in accordance with the Risk Management Framework. They are responsible for creating an environment where each staff member is responsible for and actively involved in managing risk.
6.89 Employees, Volunteers and Contractors are responsible for identifying
potential risks and for the effective management of risk as part of their employment or contractual obligations with the Council.
155
City of Burnside Policy Manual Page 1
Risk Management Policy
Classification: Council Policy
Policy Name: Risk Management
First Issued / Approved: March 2008
Last Reviewed: 15 April 2014
Next Review: April 2015
ECM tracking number: TBA
Responsible Officer: Manager People and Culture
Relevant Legislation: Local Government Act 1999
Related Documents:
ISO31000:2009 Risk Management – Principles and Guidelines
City of Burnside Risk Management Framework
Internal Financial Controls Policy (Audit Committee A0273)
1. Introduction
Council will adopt a structured and systematic approach to Risk Management with the aim of improving its decision-making practices and performance and thereby minimising risk.
2. Strategic Plan Desired Outcomes
2.1 Delivery of good governance in Council business 3. Our Approach
3.1 Regularly review, update and adopt leading governance, risk management and administrative practices.
3.2 Review services to ensure they meet community needs facilitating efficient and effective outcomes of the Strategic Community Plan.
4. Legislative Requirements and Corporate Policy Context
4.1 Section 125 of the Local Government Act 1999 requires Council to ensure that appropriate policies practices and procedures of internal control are implemented and maintained in order to assist the Council to carry out its activities in an efficient and orderly manner to achieve its objectives.
4.2 Section 134(4)(b) of the Local Government Act 1999 (the Act) requires Council to
adopt risk management policies, controls and systems specifically in relation to borrowing and related financial arrangements.
4.2 It is prudent for Council to make this Policy in order to address other “risks”
identified in other legislation such as Emergency Management Act, Work Health and Safety Act, etc.
156
City of Burnside Policy Manual Page 2
5. Definitions
5.1 Risk Management - the culture, processes and structures directed towards realising potential opportunities, whilst managing adverse effects.
5.2 Risk - the effect of uncertainty on Council’s business objectives whether it be
positive (opportunity) or negative (threat). 6. Policy
6.1 The City of Burnside is committed to applying risk management principles across all of its operations and functions (inclusive of business continuity arrangements), in order to more effectively realise Council’s Vision, Desired Outcomes, Approaches and Actions.
6.2 Risk Management involves adopting systematic procedures and practices to
identify, evaluate, treat and monitor risk in all Council activities so that the risks associated with these activities are controlled and opportunities maximised. The process of risk management comprises identifying opportunities for avoiding or mitigating losses as well as for responding to an adverse event or action.
6.3 Council will integrate risk management practices into its dealing with
stakeholders, corporate culture and its everyday business operations at the strategic and operational levels. Included in this are arrangements to minimise the impact of business disruptions on Council’s critical functions or community services.
6.4 Council will maintain a Risk Management Framework consistent with the
guidelines and principles of risk management as set out in International Standard ISO31000:2009 – Risk Management Principles and guidelines. The aim of this framework is to provide a consistent process for dealing with uncertainties likely to impact on the achievement of the Vision.
Scope 6.5 This policy encompasses every member of the organisation, including Elected
Members, Chief Executive Officer, Leadership Team, employees and volunteers given that each has responsibility for the effective management of risk with their area(s) of responsibility.
Responsibility 6.6 Council is responsible for setting the organisation’s risk appetite and oversight of
the organisation’s systems for managing risk. To assist Council in discharging its responsibility in relation to risk management, the Council may seek the views of the Audit Committee.
6.7. Chief Executive Officer is responsible for ensuring that a risk management
process is established, implemented and maintained in accordance with this Risk Management Policy.
6.8 Leadership Team members are accountable for the implementation,
maintenance and evaluation of risk management within their areas of responsibility in accordance with the Risk Management Framework. They are responsible for creating an environment where each staff member is responsible for and actively involved in managing risk.
157
City of Burnside Policy Manual Page 3
6.9 Employees, Volunteers and Contractors are responsible for identifying potential risks and for the effective management of risk as part of their employment or contractual obligations with the Council.
7. Availability
7.1 The Policy is available to be downloaded, free of charge, from Council’s website www.burnside.sa.gov.au
7.2 The Policy will be available for inspection without charge at the Civic Centre
during ordinary business hours and a copy may be purchased at a fee as set annually by Council.
City of Burnside Civic Centre 401 Greenhill Road, Tusmore SA 5065
Telephone; 8366 4200 Fax; 8366 4299 Email; [email protected]
Office hours: Monday to Friday, 8.30am to 5.00pm (except public holidays)
158
Audit Committee Agenda Item 5.7 15 April 2014 Item No: 5.7 To: Audit Committee Date: 15 April 2014 Author: Stephen Smith – Corporate Planning and Risk Coordinator General Manager and Division
Louise Miller-Frost – General Manager, Corporate Services
Contact: 8366 4205 Subject: STRATEGIC RISK REGISTER (STRATEGIC) Attachments: A. Risk Register as at March 2014 Prev. Resolution: N/A
Officer’s Recommendation
That the Report be received.
Purpose
1. To provide the Audit Committee with an understanding of the identified strategic risks that may impact upon Council.
Strategic Plan
2. The following Strategic Plan provision is relevant:
“Delivery of good governance in Council business”
Communications/Consultation
3. The following communication / consultation has been undertaken:
3.1. Discussions with Local Government Association Mutual Liability Scheme to identify any industry wide strategic risks that the staff members or Executive may have not been aware of or considered.
3.2. A number of discussions have been held with the Executive and other relevant staff members.
Statutory
4. The following legislation is relevant in this instance:
Local Government Act, 1999
Policy
5. The following Council Policy is relevant in this instance:
Risk Management
159
Audit Committee Agenda Item 5.7 15 April 2014 Risk Assessment
6. There is a risk that a material strategic risk has not been identified during the process of developing the strategic risk register.
Finance
7. There are no financial implications for the City of Burnside in respect of the recommendation.
Discussion
8. In line with Council’s risk management framework, a process of identifying and assessing potential strategic risk that may impact upon Council was commenced in late 2013.
9. The strategic risk assessment process was undertaken over a number of sessions with Executive and involved consultation with significant other staff members such as the Chief Financial Officer and Internal Audit Manager.
10. Strategic risks have been identified as those directly related to Council’s strategic or long term organisational objectives and the means by which those objectives will be achieved and concerning or impacting upon the whole organisation.
11. The identified risk, existing controls, rating of the risk and any additional controls required have been documented in a register (refer Attachment A).
12. For those risks where additional controls have been identified, they have either been accounted for in the development of actions in individual Department’s Departmental Programs or as an input into operational or capital budget bids for 2014/15.
13. The strategic risks identified and assessed are known to Executive and other consulted stakeholders at the time of the assessment. These risks are potentially subject to change and it is intended to either present information on risks with an extreme or high residual risk to the Audit Committee as they are identified and assessed or at least on an annual basis.
Conclusion
14. The Executive has undertaken a process of identifying and assessing the strategic risk impacting upon Council using the tools within the risk management framework.
15. The identified strategic risks have either been considered in the development of actions in Departmental Programs or budget bids.
16. Information on risks with an extreme or high residual risk will be presented as identified or at least on annual basis
160
Ris
k A
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to
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Hig
h At
tend
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m
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s.
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C
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sus
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able
to
mee
t ope
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er re
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pact
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t Man
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lans
C
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mai
nten
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re
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Goo
d go
vern
ance
in
budg
etar
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oces
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Ong
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get a
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smen
t an
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porti
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Hig
h Im
prov
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Man
agem
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Plan
s an
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stin
g in
form
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ill al
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get b
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allo
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M
anag
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161
Ris
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ateg
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ncer
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ide’
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Con
trol
s C
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ntly
in P
lace
In
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R
isk
Rat
ing
Add
ition
al C
ontr
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Req
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Ris
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Res
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ibili
ty
for C
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Whe
n
Cus
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rela
tions
N
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man
age
com
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expe
ctat
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in re
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vice
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re
sulti
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requ
est a
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mun
ity
cons
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and
with
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dis
clos
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of h
ow
deci
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is re
ache
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publ
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C
onsu
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rvey
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evel
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ent a
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impl
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ice
Prog
ram
Mod
erat
e M
anag
er
Cus
tom
er
Serv
ice
July
20
14 -
ongo
ing
Ass
ets/
Cus
tom
er
rela
tions
/Fin
ance
La
ck o
f ada
ptio
n of
Cou
ncil’s
ass
ets,
ser
vice
s or
ser
vice
leve
ls to
acc
ount
for e
xtre
mes
of
wea
ther
resu
lting
in in
crea
sed
cost
s an
d cu
stom
er re
latio
ns im
pact
s
Asse
t Man
agem
ent P
lan
for
maj
or c
lass
es o
f ass
ets.
Hig
h C
ontin
ue to
revi
ew a
nd
upda
te A
sset
Man
agem
ent
Plan
to a
ccou
nt fo
r cha
ngin
g w
eath
er p
atte
rns.
Mod
erat
e As
set M
anag
ers
ongo
ing
Pro
cure
men
t /
Fina
nce
Failu
re to
com
ply
with
pre
scrib
ed p
roce
dure
s on
pro
cure
men
t or c
ontin
uatio
n of
his
toric
al
proc
urem
ent p
ract
ices
lead
ing
to in
crea
sed
risk
of fr
aud,
ope
ratin
g co
sts
and
finan
cial
re
porti
ng is
sues
.
Proc
urem
ent p
olic
y an
d pr
oced
ures
. Ac
coun
ts p
ayab
le a
nd
Fina
nce
One
bus
ines
s ru
les.
In
-bui
lt sy
stem
con
trols
that
pr
ohib
it in
appr
opria
te
prac
tices
. Se
greg
atio
n of
dut
ies.
M
onth
ly re
view
of e
xcep
tion
repo
rts.
Proc
urem
ent K
PIs
for
depa
rtmen
t man
ager
s
Hig
h O
ngoi
ng tr
aini
ng a
nd
info
rmat
ion
diss
emin
atio
n ab
out p
rocu
rem
ent
proc
edur
es.
Mod
erat
e Ex
ecut
ive
Man
agem
ent
Team
ongo
ing
Gov
erna
nce
Cou
ncil
and/
or E
lect
ed M
embe
r con
duct
not
pr
oper
ly m
anag
ed re
sulti
ng in
poo
r go
vern
ance
and
dec
isio
n m
akin
g
Man
dato
ry E
lect
ed M
embe
r C
ode
of C
ondu
ct
Trai
ning
of e
lect
ed m
embe
rs
in re
latio
n to
the
Cod
e of
C
ondu
ct.
Mod
erat
e C
ontin
ued
elec
ted
mem
ber
train
ing
sche
dule
M
oder
ate
CEO
/ G
over
nanc
e C
oord
inat
or
ongo
ing
162
Ris
k C
ateg
ory
Ris
k (T
he e
ffect
of u
ncer
tain
ty u
pon
City
of B
urns
ide’
s ob
ject
ives
and
the
achi
evem
ent o
f the
se)
Con
trol
s C
urre
ntly
in P
lace
In
itial
R
isk
Rat
ing
Add
ition
al C
ontr
ols
Req
uire
d R
esid
ual
Ris
k R
atin
g
Res
pons
ibili
ty
for C
ontr
ols
Whe
n
Hum
an
Res
ourc
es
Inab
ility
to re
crui
t and
reta
in a
ppro
pria
tely
qu
alifi
ed s
taff
and
man
age
staf
f per
form
ance
.
Adho
c in
tern
al in
form
al
depa
rtmen
tal s
ucce
ssio
n pl
ans
PDR
pro
cess
. D
raft
plan
dev
elop
ed
Mod
erat
e St
rate
gic
wor
kfor
ce p
lan
to b
e ap
prov
ed a
nd im
plem
ente
d O
ngoi
ng tr
aini
ng fo
r m
anag
ers
and
team
lead
ers
Mod
erat
e M
anag
er -
Peop
le a
nd
Cul
ture
Sep
t 20
14
Ass
ets
and
Cus
tom
er
Ser
vice
A si
gnifi
cant
, unp
lann
ed, a
dver
se e
vent
pr
esen
ting
a th
reat
to th
e co
ntin
uity
of
Cou
ncils
crit
ical
func
tions
or o
pera
tions
Busi
ness
Con
tinui
ty P
lan
IT d
isas
ter r
ecov
ery
infra
stru
ctur
e an
d pl
an
Mod
erat
e W
ork
with
LG
RS
to re
view
ex
istin
g B
CP
as p
art o
f m
aint
enan
ce a
gree
men
t
Mod
erat
e M
anag
er -
Peop
le&C
ultu
re
and
LGR
S
ongo
ing
IT
Failu
re to
ado
pt re
leva
nt te
chno
logy
and
re
late
d so
lutio
ns to
enh
ance
bus
ines
s pr
oces
ses.
Subm
issi
on o
f bus
ines
s ca
ses
from
Dep
artm
ents
to
Info
rmat
ion
Sys
tem
s fo
r as
sess
men
t prio
r to
appr
oval
. R
egul
ar In
form
atio
n S
yste
m
user
gro
ups
mee
tings
. An
nual
inte
rnal
sta
keho
lder
en
gage
men
t by
Info
rmat
ion
Sys
tem
s D
epar
tmen
t.
Mod
erat
e
Low
ongo
ing
Dev
elop
men
t Lo
ss o
f con
trol i
n am
endi
ng th
e C
ity o
f Bu
rnsi
de’s
Dev
elop
men
t Pla
n (p
artic
ular
ly
urba
n co
rrid
or z
ones
) due
to th
e M
inis
ter f
or
Plan
ning
und
erta
king
Min
iste
rial
Dev
elop
men
t Pla
n Am
endm
ents
.
Com
mun
ity c
onsu
ltatio
n on
ge
nera
l dev
elop
men
t gro
wth
in
the
City
of B
urns
ide
(cur
rent
). W
ard
foru
ms
and
Citi
zens
Ju
ry to
pro
pose
re
com
men
datio
ns o
n fu
ture
of
resi
dent
ial g
row
th in
Cou
ncil
area
(pla
nned
for e
arly
201
4).
Dev
elop
men
t pla
n to
ach
ieve
th
e C
ity o
f Bur
nsid
e’s
dwel
ling
targ
ets
in a
ccor
danc
e w
ith th
e St
ate
Gov
ernm
ent’s
30-
Year
Pl
an fo
r Gre
ater
Ade
laid
e (p
lann
ed fo
r 201
4).
Reg
ular
com
mun
icat
ion
of
rele
vant
info
rmat
ion
to E
lect
ed
Mem
bers
.
Mod
erat
e Pr
oact
ive
rela
tions
hip
man
agem
ent w
ith th
e M
inis
ter f
or P
lann
ing
and
the
Dep
artm
ent o
f Pla
nnin
g,
Tran
spor
t and
Infra
stru
ctur
e (D
PTI).
C
ontin
ued
proa
ctiv
e re
latio
nshi
p m
anag
emen
t with
co
mm
unity
par
ticul
arly
lobb
y gr
oups
.
Low
Ex
ecut
ive
Man
ager
– C
ity
Dev
elop
men
t an
d Sa
fety
ongo
ing
163
164
Council Agenda Item 5.8 15 April 2014 Item No: 5.8To: Audit Committee Date: 15 April 2014 Author: Stephen Smith – Corporate Planning and Risk Coordinator General Manager and Division
Louise Miller-Frost – General Manager, Corporate Services
Contact: 8366 4213 Subject: WHS MANAGEMENT SYSTEM OBJECTIVE APPRAISAL
(STRATEGIC) Attachments: A. Local Government Association Workers Compensation
Scheme Objective Appraisal Action Plan Prev. Resolution: A0336, 4/12/13
Officer’s Recommendation
That the Report be received.
Purpose
1. To advise the Audit Committee of actions completed following the Local Government Association Workers Compensation Scheme – Work Health and Safety Management System Objective Appraisal.
Strategic Plan
2. The following Strategic Plan provision is relevant:
“A respected organisation that is resilient, progressive and adaptable with a culture that encourages well-being, learning and development”
Communications/Consultation
3. The following communication / consultation has been undertaken:
3.1. Consultation with Local Government Association Workers Compensation Scheme (LGAWCS) has taken place in relation to allocation of resources to assist with non-conformances identified.
Statutory
4. There are no statutory implications or requirements associated with this recommendation.
Policy
5. There are no policy implications or requirements associated with this recommendation.
165
Council Agenda Item 5.8 15 April 2014 Risk Assessment
6. Failure to close out non-conformances documented in the Action Plan (developed post-audit) will impact upon Council’s Workers Compensation premium any rebate received.
Finance
7. The LGAWCS operates a self-insurance scheme for workers compensation, for which the insurance premiums are lower than those for organisations directly insured with Work Cover. However, the self-insurance scheme and hence lower premiums are contingent upon compliance by the scheme members with the PSSI Standards.
Discussion
Background
8. The City of Burnside, along with all other South Australian councils, is a member of the Local Government Association Workers Compensation Scheme (LGAWCS) which holds a private self-insured license to manage Work Health and Safety (WHS) and Injury Management (IM) on behalf of Local Government.
9. The City of Burnside’s WHS Management system is bound to conform to the Performance Standards for Self Insurers (PSSI).
Analysis
10. The City of Burnside is subject to an audit by LGAWCS self-insurance assurance activities and premium establishment.
11. The LGAWCS Objective Appraisal Summary Report (9 and 10 October 2013) was received by the City of Burnside on 23 October 2013.
12. The LGAWCS has provided Council with resources to assist it in closing out the non-conformances as far as practicable before the April/May 2014 Work Cover audit.
13. To date the following outcomes have been achieved:
13.1. 48 per cent of all non-conforming items have been completed;
13.2. 36 per cent of all non-conforming items are currently being closed out; and
13.3. 16 per cent of all non-conforming items are at present still outstanding, due to their long-term or ongoing nature.
14. Ongoing or remaining items (e.g. training) have been scheduled or are intended to be closed out within the next couple of months.
15. Attachment A provides further information on individual non-conformances and actions completed or outstanding.
Conclusion
16. Through joint LGAWCS and City of Burnside action, work has been completed or is currently being undertaken to close out the majority of non-conformances identified in the October 2013 Appraisal.
166
LGAW
CS
& L
GR
S O
bjec
tive
App
rais
al A
ctio
n Pl
an 2
013
Is
sue
No:
1
Prin
ted
copi
es a
re c
onsi
dere
d un
cont
rolle
d.
Issu
e D
ate:
Bef
ore
usin
g a
prin
ted
copy
, ver
ify th
at it
is th
e cu
rren
t ver
sion
R
evie
w D
ate:
1 | P
ag
e
Obj
ectiv
e A
ppra
isal
Act
ion
Plan
St
anda
rd
Ref
eren
ce
Find
ings
R
ecom
men
datio
ns
CO
B R
espo
nse
Cur
rent
Sta
tus
(Com
men
ts)
1.1
The
WH
S an
d IM
pol
icy
is n
ot c
urre
nt a
s it
is d
ated
01/
07/2
013.
The
LG
AWC
S ha
s re
cent
ly is
sued
an
upda
ted
polic
y ba
sed
on c
hang
es to
the
WH
S le
gisl
atio
n.
1.1.
1 U
pdat
e W
HS&
IM p
olic
y m
ap
agai
nst t
he L
GAW
CS
WH
S&IM
pol
icy
to
ensu
re p
olic
y m
eets
requ
irem
ents
and
is
curr
ent,
endo
rsed
and
dis
tribu
ted
New
pol
icy
tabl
ed a
t 24/
10/2
013
WH
S C
omm
ittee
mee
ting
cons
ider
atio
n
Com
plet
ed.
Polic
y ap
prov
ed a
nd d
istri
bute
d.
1.1.
2 En
sure
cou
ncils
pol
icy
sche
dule
is
mon
itore
d to
gua
rant
ee fu
nctio
n is
w
orki
ng c
orre
ctly
to p
reve
nt a
ny p
olic
ies
goin
g ou
t of d
ate
Polic
ies/
Pro
cedu
res
are
curr
ently
be
ing
mon
itore
d th
roug
h in
trane
t no
tific
atio
ns. M
ajor
ity o
f doc
umen
ts
out o
f dat
e du
e to
wai
ting
on
LGAW
CS
‘one
sys
tem
’ upd
ates
. Ad
ditio
nal i
tem
in C
APA
regi
ster
for
polic
y/pr
oced
ure
revi
ews.
1.2
Ther
e ar
e 33
pol
icie
s/ p
roce
dure
s th
at a
re
over
due
for r
evie
w.
Site
spe
cific
Em
erge
ncy
Man
agem
ent
proc
edur
es in
pla
ce th
at a
re c
onsi
sten
t w
ith A
S374
5-20
12. H
owev
er n
o ov
erar
chin
g em
erge
ncy
man
agem
ent
plan
.
1.2.
1 Al
l pol
icie
s/ p
roce
dure
s/ fo
rms
that
ar
e ov
erdu
e ar
e re
view
ed/ u
pdat
ed a
nd
rolle
d ou
t/ im
plem
ente
d
Sche
dule
has
bee
n de
velo
ped
and
agre
ed b
y W
HS
Com
mitt
ee a
nd
Exec
pre
viou
sly.
Rev
iew
, dev
elop
men
t and
co
nsul
tatio
n on
spe
cific
upd
ated
pr
oced
ures
to b
e ne
gotia
ted.
Com
plet
ed a
revi
ew w
ith L
GR
S of
out
stan
ding
pro
cedu
res.
Out
of a
tota
l of 3
3 po
licie
s an
d pr
oced
ures
, 20
polic
ies
and
proc
edur
es a
re u
p-to
-dat
e.
13 p
olic
ies
and
proc
edur
es
have
bee
n co
mpl
eted
and
are
aw
aitin
g ad
optio
n.
1.2.
2 Th
ere
is c
urre
ntly
a s
ched
ule
in
plac
e to
upd
ate
thes
e po
licie
s an
d pr
oced
ure
– th
is n
eeds
to b
e m
onito
red
to e
nsur
e ac
cura
cy a
nd e
ffici
ency
Sche
dule
to b
e m
onito
red.
See
1.
1.2
for f
urth
er d
etai
ls
Ref
er to
1.1
.2.
1.2.
3 D
raft
and
impl
emen
t an
over
arch
ing
Emer
genc
y M
anag
emen
t pr
oced
ure
(as
per O
ne S
yste
m)
Agre
e, p
roce
dure
is re
quire
d as
lo
ng a
s it
does
n’t d
uplic
ate
cont
ents
alre
ady
exis
ting
in c
urre
nt
docu
men
ts, B
CP
and
emer
genc
y re
spon
se m
anua
l.
LGR
S co
nsul
tant
spe
cial
isin
g in
Em
erge
ncy
Man
agem
ent h
as
been
eng
aged
to d
raft
over
arch
ing
proc
edur
e.
Dra
ft ha
s be
en re
ceiv
ed,
revi
ewed
, and
is re
ady
for
adop
tion.
167
LGAW
CS
& L
GR
S O
bjec
tive
App
rais
al A
ctio
n Pl
an 2
013
Is
sue
No:
1
Prin
ted
copi
es a
re c
onsi
dere
d un
cont
rolle
d.
Issu
e D
ate:
Bef
ore
usin
g a
prin
ted
copy
, ver
ify th
at it
is th
e cu
rren
t ver
sion
R
evie
w D
ate:
2 | P
ag
e
Stan
dard
R
efer
ence
Fi
ndin
gs
Rec
omm
enda
tions
C
OB
Res
pons
e C
urre
nt S
tatu
s (C
omm
ents
)
2.1.
5 A
haza
rd re
gist
er h
as b
een
deve
lope
d,
how
ever
ther
e is
mis
sing
dat
a an
d so
me
asse
ssm
ents
dat
e ba
ck to
200
4.
Man
ager
s of
Dep
artm
ents
are
not
aw
are
of th
e H
azar
d R
egis
ter a
nd o
f its
ong
oing
us
e.
2.1.
5.1
Rev
iew
and
upd
ate
Haz
ard
Reg
iste
r with
eac
h de
partm
ent
Actio
n cu
rrent
ly b
eing
und
erta
ken
to c
lose
out
gap
s on
regi
ster
and
co
mpl
ete
risk
asse
ssm
ents
as
part
of th
is p
roce
ss. N
egot
iate
with
LG
AWC
S fo
r add
ition
al re
sour
ces
for t
hem
to a
ssis
t in
certa
in
Dep
artm
ents
.
Haz
ard
Reg
iste
r is
goin
g to
be
revi
ewed
by
each
Dep
artm
ent
as p
art o
f the
Haz
ard
Man
agem
ent t
rain
ing
for
Man
ager
s an
d Su
perv
isor
s,
sche
dule
d to
com
men
ce in
late
Ap
ril 2
014.
C
orre
spon
ding
Ris
k As
sess
men
ts a
re g
oing
to b
e co
mpl
eted
or r
evie
wed
at t
he
sam
e tim
e.
2.1.
5.2
Ensu
re e
ach
haza
rd is
‘clo
sed
off’
or h
as a
sch
edul
ed d
ate
for r
evie
w
Agre
ed s
ome
haza
rds
do n
ot h
ave
next
revi
ew d
ate.
Tho
ugh
haza
rd
man
agem
ent p
roce
dure
doe
s sp
ecify
tim
ing
for t
he re
view
of r
isk
asse
ssm
ents
.
Each
haz
ard
will
be a
ssig
ned
a sc
hedu
led
revi
ew d
ate
in th
e as
sess
men
t act
ivity
und
erta
ken
durin
g th
e H
azar
d M
anag
emen
t tra
inin
g.
2.1.
5.3
Trai
n M
anag
ers
so th
ey a
re
awar
e of
regi
ster
and
its
func
tions
Fu
rther
trai
ning
wou
ld b
enef
it so
me
man
ager
/ tea
m le
ader
s H
azar
d M
anag
emen
t tra
inin
g fo
r Man
ager
s an
d Su
perv
isor
s is
sch
edul
ed to
com
men
ce a
t th
e en
d of
Apr
il 20
14.
The
train
ing
sche
dule
is g
oing
to
be
com
plet
ed b
y ea
rly M
ay
2014
.
3.3.
2 Ac
coun
tabi
lity
mec
hani
sms
are
in p
lace
bu
t fur
ther
revi
ew re
quire
d fo
r spe
cific
ex
ampl
es.
WH
S ke
y pe
rform
ance
indi
cato
rs a
re n
ot
set a
nd re
view
ed a
s pa
rt of
indi
vidu
al
perfo
rman
ce re
view
s. T
here
is a
dra
ft pr
opos
al to
set
and
revi
ew W
HS
KPIS
as
part
of p
erfo
rman
ce re
view
s.
3.3.
2.1
Und
erta
ke a
furth
er re
view
on
spec
ific
exam
ples
of a
ccou
ntab
ility
eg
wha
t act
ion
has
occu
rred
prev
ious
ly if
co
rrec
tive
actio
ns, t
rain
ing,
etc
. is
not
com
plet
ed
Esca
latio
n al
read
y bu
ilt in
to C
APA
regi
ster
and
mon
thly
repo
rt hi
ghlig
hts
outs
tand
ing
actio
ns.
Qua
rterly
repo
rt to
be
run
for e
ach
Man
ager
from
CAP
A an
d cc
’d to
G
M’s
Two
quar
terly
repo
rts h
ave
been
com
plet
ed to
dat
e.
3.3.
2.2
Rev
iew
furth
er e
xam
ples
of
acco
unta
bilit
y, fo
r exa
mpl
e if
actio
ns a
re
not c
ompl
eted
wha
t fol
low
s
As a
bove
168
LGAW
CS
& L
GR
S O
bjec
tive
App
rais
al A
ctio
n Pl
an 2
013
Is
sue
No:
1
Prin
ted
copi
es a
re c
onsi
dere
d un
cont
rolle
d.
Issu
e D
ate:
Bef
ore
usin
g a
prin
ted
copy
, ver
ify th
at it
is th
e cu
rren
t ver
sion
R
evie
w D
ate:
3 | P
ag
e
Stan
dard
R
efer
ence
Fi
ndin
gs
Rec
omm
enda
tions
C
OB
Res
pons
e C
urre
nt S
tatu
s (C
omm
ents
)
3.3.
2.3
Impl
emen
t WH
S KP
Is fo
r M
anag
ers
and
rele
vant
sta
ff an
d re
view
as
par
t of p
erfo
rman
ce re
view
s
Dra
ft KP
I’s to
be
disc
usse
d w
ith
Exec
and
Man
ager
s
Agre
ed K
PI’s
to b
e up
load
ed to
BB
C (a
nd a
cces
sibl
e in
PD
R
syst
em) f
or a
ll D
epar
tmen
ts,
Man
gers
and
Sta
ff as
par
t of
busi
ness
pro
gram
repo
rting
and
PD
R.
KPI’s
hav
e be
en d
iscu
ssed
and
ag
reed
to w
ith E
xec
and
Man
ager
s.
They
are
yet
to b
e as
sess
ed
and
repo
rted
upon
.
3.7.
1 Ev
acua
tion
exer
cise
s ha
ve b
een
cond
ucte
d at
all
site
s. T
he S
wim
min
g Po
ol
and
Civ
ic C
entre
are
the
only
dep
artm
ents
th
at, t
o da
te, h
ave
cond
ucte
d sc
enar
io
base
d te
stin
g (e
g ch
emic
al s
pill)
.
3.7.
1.1
Emer
genc
y sc
enar
io te
stin
g is
im
plem
ente
d w
ith a
ll si
tes/
dep
artm
ents
Tw
o m
ost r
ecen
t em
erge
ncy
exer
cise
s ha
ve a
lread
y be
en
unde
rtake
n ba
sed
on s
cena
rios;
th
is w
ill co
ntin
ue to
be
the
case
as
exer
cise
s ar
e ru
n fo
r loc
atio
ns.
3.7.
1.2
Rec
ord
all s
cena
rio b
ased
test
ing
on c
urre
nt s
ched
ule
to m
onito
r and
co
ntro
l exe
rcis
e
All a
ttend
ance
s cu
rrent
ly re
cord
ed
and
will
cont
inue
to b
e so
.
3.7.
1.3
Ensu
re w
hole
em
erge
ncy
syst
em/ p
roce
dure
s ar
e te
sted
(Ref
er
2.1.
5 –
over
arch
ing
One
Sys
tem
Em
erge
ncy
Man
agem
ent)
Ref
er to
1.2
.3
Ref
er to
1.2
.3.
3.8.
1 H
azar
d re
gist
er h
as b
een
deve
lope
d,
how
ever
it is
not
com
plia
nt d
ue to
as
sess
men
ts d
atin
g ba
ck to
200
4 w
ithou
t an
y ac
tions
or s
ched
uled
act
ions
re
cord
ed.
3.8.
1.1
Ref
er to
2.1
.5.1
and
2.1
.5.2
Ref
er to
2.1
.5.1
and
2.1
.5.2
.
3.8.
1.2
Reg
iste
r nee
ds to
be
kept
cur
rent
an
d ea
sily
acc
essi
ble
and
user
frie
ndly
fo
r sta
ff
Dis
cuss
with
IT p
ossi
bilit
y of
re
crea
ting
curr
ent E
CM
doc
umen
t in
to S
hare
Poin
t lis
t on
the
intra
net.
As a
n in
terim
mea
sure
the
Haz
ard
Reg
iste
r cou
ld b
e sa
ve o
ut o
f EC
M
and
uplo
aded
to th
e in
trane
t on
a m
onth
ly b
asis
.
The
Haz
ard
Reg
iste
r has
bee
n m
igra
ted
to S
hare
Poi
nt a
nd is
ac
cess
ible
to a
nd a
ble
to b
e up
date
d by
all
Cou
ncil
staf
f. Ad
ditio
nally
, the
Haz
ard
/Inci
dent
Rep
ort F
orm
has
bee
n m
igra
ted
to S
hare
Poi
nt; i
ts
func
tiona
lity
is c
urre
ntly
bei
ng
test
ed.
169
LGAW
CS
& L
GR
S O
bjec
tive
App
rais
al A
ctio
n Pl
an 2
013
Is
sue
No:
1
Prin
ted
copi
es a
re c
onsi
dere
d un
cont
rolle
d.
Issu
e D
ate:
Bef
ore
usin
g a
prin
ted
copy
, ver
ify th
at it
is th
e cu
rren
t ver
sion
R
evie
w D
ate:
4 | P
ag
e
Stan
dard
R
efer
ence
Fi
ndin
gs
Rec
omm
enda
tions
C
OB
Res
pons
e C
urre
nt S
tatu
s (C
omm
ents
)
3.8.
2 In
terv
iew
s an
d ev
iden
ce d
ispl
ayed
that
st
aff d
id n
ot h
ave
any
know
ledg
e on
the
haza
rd re
gist
er o
r its
func
tions
.
3.8.
2.1
Incr
ease
d kn
owle
dge
for s
taff
of
haza
rd re
gist
er
See
2.1.
5.3.
Add
ition
ally
, WH
S C
omm
ittee
Mem
bers
to d
iscu
ss a
t Te
am o
r Dep
artm
enta
l mee
tings
Haz
ard
regi
ster
to b
e in
clud
ed
as a
sta
ndin
g ite
m o
n th
e W
HS
Com
mitt
ee a
gend
a.
New
haz
ards
or o
utst
andi
ng
revi
ews
iden
tifie
d ar
e re
cord
ed
on th
e C
APA
Reg
iste
r and
re
laye
d to
rele
vant
sta
ff at
Te
am o
r Dep
artm
enta
l m
eetin
gs.
3.8.
2.2
Ensu
re h
azar
d re
gist
er is
eas
ily
acce
ssib
le
See
3.8.
1.2
Ref
er to
3.8
.1.2
.
3.8.
2.3
Upd
ate
haza
rd re
gist
er a
s pe
r 2.
1.5.
1 an
d 2.
5.1.
2 Se
e pr
evio
us it
ems
Ref
er to
2.1
.5.1
and
2.5
.1.2
3.8.
4 Th
ere
is n
o fo
rmal
doc
umen
ted
proc
ess
as to
how
the
orga
nisa
tion
man
ages
ch
ange
in th
e w
orkp
lace
and
co
nsid
erat
ion
give
n to
WH
S.
3.8.
4.1
Dra
ft ch
ange
pro
cess
and
im
plem
ent t
hrou
ghou
t cou
ncil
WH
S C
onsu
ltatio
n an
d C
omm
unic
atio
n pr
oced
ure
cove
rs
this
are
a.
Follo
w u
p w
ith L
GAW
CS
as to
w
hat i
s ex
actly
requ
ired.
A ch
ange
pro
cess
is c
urre
ntly
be
ing
draf
ted.
3.8.
4.2
Doc
umen
t for
mal
pro
cess
for
man
agin
g ch
ange
and
con
side
ring
WH
S W
HS
Con
sulta
tion
and
Com
mun
icat
ion
proc
edur
e co
vers
th
is a
rea.
Follo
w u
p w
ith L
GAW
CS
as to
w
hat i
s ex
actly
requ
ired.
As a
bove
.
3.8.
5 Th
ere
is a
pre
-hire
che
cklis
t, w
hich
is
com
plet
ed p
rior t
o hi
ring/
leas
ing
equi
pmen
t. Th
ere
is n
o pr
e-pu
rcha
se
chec
klis
t for
pla
nt, e
quip
men
t and
su
bsta
nces
.
3.8.
5.1
Dev
elop
and
impl
emen
t a p
re-
purc
hase
pro
cedu
re a
nd p
roce
ss fo
r pu
rcha
sing
of p
lant
, equ
ipm
ent a
nd
subs
tanc
es –
this
sho
uld
incl
ude
a pr
e-pu
rcha
se c
heck
list
Plan
t and
Haz
ard
Man
agem
ent
Proc
edur
es c
urre
nt c
over
this
are
a.
Feed
back
on
the
proc
ess
curre
ntly
un
derta
ken
by o
ther
Cou
ncils
to b
e so
ught
and
revi
ewed
.
A pl
ant r
isk
asse
ssm
ent i
s in
pl
ace
and
unde
r ong
oing
re
view
.
3.8.
6 St
aff t
hat e
ngag
e an
d m
anag
e co
ntra
ctor
s ha
ve n
ot h
ad fo
rmal
WH
S C
ontra
ctor
M
anag
emen
t tra
inin
g. N
ot a
ll de
partm
ents
un
derta
ke a
nd d
ocum
ent s
ite v
isits
/ in
spec
tions
of C
ontra
ctor
s. N
ot a
ll de
partm
ents
con
duct
a fo
rmal
do
cum
ente
d re
view
of t
he C
ontra
ctor
s pe
rform
ance
.
3.8.
6.1
Prov
ide
WH
S C
ontra
ctor
M
anag
emen
t tra
inin
g to
sta
ff w
ho
man
age
cont
ract
ors
Agre
ed, f
urth
er tr
aini
ng w
ould
be
usef
ul fo
r sta
ff m
anag
ing
cont
ract
ors.
Bes
t opt
ion
wou
ld b
e to
alig
n th
is w
ith 2
.1.5
.3
A sc
hedu
le fo
r Con
tract
or
Man
agem
ent t
rain
ing
has
been
dr
afte
d.
Trai
ning
ses
sion
s ar
e ex
pect
ed
to c
omm
ence
in la
te M
ay 2
014.
3.8.
6.2
Impl
emen
t doc
umen
ted
cont
ract
or s
ite v
isits
/ ins
pect
ions
in
Dep
artm
ents
that
are
not
cur
rent
ly
unde
rtaki
ng o
r doc
umen
ting
this
act
ivity
Rai
se is
sue
at M
anag
ers
Team
m
eetin
g an
d as
k th
em to
rais
e at
Te
am m
eetin
gs
Ong
oing
dis
cuss
ions
with
re
leva
nt D
epar
tmen
t Man
ager
s.
170
LGAW
CS
& L
GR
S O
bjec
tive
App
rais
al A
ctio
n Pl
an 2
013
Is
sue
No:
1
Prin
ted
copi
es a
re c
onsi
dere
d un
cont
rolle
d.
Issu
e D
ate:
Bef
ore
usin
g a
prin
ted
copy
, ver
ify th
at it
is th
e cu
rren
t ver
sion
R
evie
w D
ate:
5 | P
ag
e
Stan
dard
R
efer
ence
Fi
ndin
gs
Rec
omm
enda
tions
C
OB
Res
pons
e C
urre
nt S
tatu
s (C
omm
ents
)
3.8.
6.3
Impl
emen
t for
mal
con
tract
or
revi
ew m
eetin
gs (f
or a
ppro
pria
te
cont
ract
ors)
to re
view
thei
r per
form
ance
, in
clud
ing
WH
S
Iden
tify
long
term
con
tract
s/
cont
ract
or a
nd re
leva
nt
Dep
artm
ents
.
Dev
elop
tem
plat
e fo
r con
tract
re
view
mee
ting
incl
usiv
e of
WH
S.
Safe
ty/R
isk
has
been
im
plem
ente
d as
a s
tand
ing
agen
da it
em in
con
tract
or
mee
tings
at G
lenu
nga
Hub
and
Sw
imm
ing
Pool
site
s.
171
172
Audit Committee Agenda Item 5.9 15 April 2015 Item No: 5.9 To: Audit Committee Date: 15 April 2014 Author: Stephen Smith – Corporate Planning and Risk Coordinator General Manager and Division
Louise Miller-Frost – General Manger, Corporate Services
Contact: 8366 4213 Subject: UPDATE ON 2013 LOCAL GOVERNMENT ASSOCIATION
MUTUAL LIABILITY SCHEME (LGAMLS) RISK MANAGEMENT REVIEW (STRATEGIC)
Attachments: A. City of Burnside Risk Management Review 2013 - Improvement Plan
Prev. Resolution: A0340, 4/12/13
Officer’s Recommendation
That the Report be received.
Purpose
1. To present the Audit Committee with an update on actions arising from the 2013 Local Government Association Mutual Liability Scheme (LGAMLS) Risk Management Review.
Strategic Plan
2. The following Strategic Plan provision is relevant:
“Delivery of good governance in Council business”
Communications/Consultation
3. The following communication / consultation has been undertaken:
3.1. Consultation with LGAWCS Manager Risk has taken place to discuss the findings and clarify or outline Council’s intended actions in response to the review.
Statutory
4. There are no statutory implications or requirements associated with this recommendation.
Policy
5. There are no policy implications or requirements associated with this recommendation.
173
Audit Committee Agenda Item 5.9 15 April 2015 Risk Assessment
6. Failure to implement an action or response to a suggestion within the risk review may result in minor financial impacts upon Council’s liability insurance premium.
Finance
7. The Local Government Association (LGA) operates a Performance Bonus System. Essentially this means the City of Burnside can receive an annual rebate on the insurance premiums it contributes to the LGAMLS. The 2013 Risk Review forms part of the performance bonus system for the 2013/2014 contribution period.
Discussion
8. The 2013 LGAMLS Risk Management Review Report was tabled with the Audit Committee at its 4 December 2013 meeting.
9. The LGAMLS recommended that instead of creating single stand-alone action plans, any agreed actions are incorporated into existing planning processes. Additionally, LGAMLS is expecting continuous improvement across all risk review areas and has not set timeframe for close out of actions.
10. In response to this, actions have been undertaken by relevant Managers as appropriate. Budget bids or action in Departmental Programs will be created to assist in meeting the risk review recommendations.
11. To date, action has been completed or is being undertaken against each of the areas of improvement. Attachment A provides an outline of actions completed, currently underway or intended to be undertaken in order to resolve the identified improvement area. Outstanding actions will either be completed by the end of this financial year, with remaining actions expected to be closed within the 2014/15 financial year or be under continuous review due to their ongoing changing nature.
12. Whilst not officially notified to Council, indications are that at this stage LGAMLS will not be conducting a full risk management review during 2014. LGAMLS will start working with the Administration in May 2014 to identify risk management areas of continued concern to both LGAMLS and Council.
Conclusion
13. The LGAMLS identified areas of improvement across a number of risk review areas as a result of the 2013 risk review.
14. Actions have been completed or are currently being undertaken against each of the areas of improvement.
174
Aud
it C
omm
ittee
Age
nda
Item
5.9
15 A
pril
2015
A
ttach
men
t A
City
of B
urns
ide
Ris
k M
anag
emen
t Rev
iew
201
3 - I
mpr
ovem
ent P
lan
A
fter r
evie
win
g th
e R
M R
evie
w re
sults
it is
agr
eed
that
the
follo
win
g A
ctio
ns w
ill b
e im
plem
ente
d w
ith th
e C
ounc
il:
Cat
egor
y C
urre
nt C
ontr
ols
- Li
abili
ty/R
isk
R
isk
Man
agem
ent C
onsi
dera
tion
Res
pons
e to
Dat
e an
d Pl
anne
d Fu
ture
Act
ions
Ris
k M
anag
emen
t Sys
tem
s &
Fra
mew
orks
R
isk
Man
agem
ent F
ram
ewor
k
Form
al im
plem
enta
tion
and
revi
ew p
roce
ss
shou
ld b
e re
view
ed in
line
with
Cou
ncils
S
trate
gic
and
Bus
ines
s P
lann
ing
proc
ess.
R
isk
Ass
essm
ent p
roce
ss s
houl
d be
im
plem
ente
d fo
r use
acr
oss
all B
usin
ess
Uni
ts
Ris
k M
anag
emen
t Pol
icy
revi
ewed
and
tabl
ed a
t Apr
il 20
14 A
udit
Com
mitt
ee, R
isk
Man
agem
ent F
ram
ewor
k ne
xt fo
r re
view
and
tabl
ing
at J
une
2014
Au
dit C
omm
ittee
. Ris
k As
sess
men
t pro
cess
inte
grat
ed
into
201
4/15
bud
get b
iddi
ng
proc
ess
and
Dep
artm
enta
l Pr
ogra
m d
evel
opm
ent.
Bus
ines
s C
ontin
uity
Pr
ogra
m
BCP
– C
ontin
ual r
evie
w
Rev
iew
and
test
ing
regi
me
mus
t be
revi
ewed
to
ens
ure
com
patib
ility
with
evo
lvin
g C
ounc
il st
ruct
ure
and
criti
cal f
unct
ions
.
Loca
l Gov
ernm
ent R
isk
Serv
ices
re
tain
ed to
ass
ist C
ounc
il w
ith
revi
ew o
f exi
stin
g do
cum
enta
tion.
In
tern
al D
ebrie
f fol
low
ing
Febr
uary
sto
rm e
vent
and
issu
es
to b
e fe
d in
to c
urre
nt re
view
.
Gov
erna
nce
Stru
ctur
es
Sect
ion
41 C
omm
ittee
Stru
ctur
es
Con
side
r the
cap
acity
for t
he R
isk
Man
agem
ent F
ram
ewor
k to
con
side
r and
as
sess
func
tions
of a
Sec
tion
41 C
omm
ittee
(if
rele
vant
) to
ensu
re c
onsi
sten
cy w
ith o
ther
bu
sine
ss fu
nctio
ns.
Will
be c
onsi
dere
d w
hen
Ris
k M
anag
emen
t Fra
mew
ork
revi
ew
unde
rtake
n.
175
Aud
it C
omm
ittee
Age
nda
Item
5.9
15 A
pril
2015
Cat
egor
y C
urre
nt C
ontr
ols
- Li
abili
ty/R
isk
R
isk
Man
agem
ent C
onsi
dera
tion
Res
pons
e to
Dat
e an
d Pl
anne
d Fu
ture
Act
ions
Vo
lunt
eer M
anag
emen
t
Con
side
r rev
iew
pro
cess
to e
nsur
e th
at
Vol
unte
ers
prog
ram
s ar
e as
sess
ed w
ithin
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May
201
4.
Con
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limita
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of li
abilit
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quire
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gn o
ff of
the
rele
vant
Gen
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M
anag
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reem
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s re
ache
d w
ith th
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arty
.
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/Ass
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Roa
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/Ada
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Cap
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quire
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tech
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man
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Envi
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iver
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rate
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evel
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as
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peci
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stat
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s st
rate
gy -
“res
pons
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hang
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clim
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. As
soci
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goa
l are
st
rate
gic
obje
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chan
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and
succ
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mea
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se
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pora
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Ris
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oord
inat
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bei
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ulte
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the
deve
lopm
ent o
f th
is s
trate
gy.
176
Aud
it C
omm
ittee
Age
nda
Item
5.9
15 A
pril
2015
Cat
egor
y C
urre
nt C
ontr
ols
- Li
abili
ty/R
isk
R
isk
Man
agem
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onsi
dera
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Res
pons
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Dat
e an
d Pl
anne
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ture
Act
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trem
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dapt
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sses
smen
t out
com
es to
influ
ence
op
erat
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mai
nten
ance
pro
cess
es.
Con
side
ratio
n fo
r fut
ure
plan
ning
.
Exac
t res
pons
e to
this
act
ion
item
will
in p
art d
epen
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the
final
stra
tegy
con
tent
s. R
evie
w
of A
sset
Man
agem
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lans
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an a
ctio
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Engi
neer
ing
and
Asse
t Ser
vice
s D
epar
tmen
tal P
rogr
ams
for
2014
/15.
Inhe
rent
in th
is re
view
is
a c
onsi
dera
tion
of e
xtre
me
wea
ther
ada
ptat
ion
for e
ach
asse
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ss.
Even
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Perm
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C
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Per
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view
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ms
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incl
ude
esse
ntia
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HS
issu
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re b
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re id
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frast
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ased
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Cen
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232
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lant
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an T
ree
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ently
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nsul
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til 2
1/4/
2014
. The
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aft d
ocum
ent s
trong
ly
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gnis
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le ri
sk
177
Aud
it C
omm
ittee
Age
nda
Item
5.9
15 A
pril
2015
Cat
egor
y C
urre
nt C
ontr
ols
- Li
abili
ty/R
isk
R
isk
Man
agem
ent C
onsi
dera
tion
Res
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Dat
e an
d Pl
anne
d Fu
ture
Act
ions
ov
eral
l Stra
tegi
c P
lans
Tr
ee S
trate
gy c
ontin
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to c
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der t
he
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ther
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latio
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the
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asse
ssm
ent p
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ss to
cur
rent
issu
es
rais
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man
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as to
pla
y in
the
man
agem
ent o
f Bur
nsid
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urba
n tre
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sets
.
Stra
tegi
c O
bjec
tives
St
rate
gic
Plan
s S
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Pla
nnin
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to c
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isks
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portu
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gram
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ster
dev
elop
ed.
178
Audit Committee Agenda Item 5.10 15 April 2014 Item No: 5.10 To: Audit Committee Date: 15 April 2014 Author: Mary McDade – Manager, Customer Service General Manager and Division
Graeme Brown – Manager, Community and Development Services
Contact: 8366 4205 Subject: POLICY REVIEW - COMPLAINT HANDLING POLICY – APRIL
(Strategic) Attachments: A. Complaint Handling Policy (track changes version)
B. Complaint Handling Policy (new version) Prev. Resolution: C8719, 22/5/12
Officer’s Recommendation
1. That the Report be received.
2. That the revised Complaint Handling Policy be endorsed.
3. That the revised Complaint Handling Policy be presented to Council for consideration.
Purpose
1. To provide Audit Committee with recommended changes to the Complaint Handling Policy for consideration and endorsement.
Strategic Plan
2. The following Strategic Plan provisions are relevant:
“A respected organisation that is resilient, progressive and adaptable with a culture that encourages well-being, learning and development”
“Continuously improve service delivery to balance customer expectation, value of service and organizational capacity to deliver.”
Communications/Consultation
3. The following communication / consultation has been undertaken:
3.1. Comments were provided by the General Manager, Community and Development Services and Manager Customer Service.
3.2. The revised Policy was circulated to Elected Members for comment on 13 March 2014. A number of comments were received and incorporated into the policy as appropriate.
Statutory
4. The following legislation is relevant in this instance:
Local Government Act, 1999
179
Audit Committee Agenda Item 5.10 15 April 2014
Ombudsman Act, 1972
State Records Act, 1997
Freedom of Information Act, 1991
Privacy Act, 1988
Whistleblowers Protection Act, 1993
Policy
5. The following Council Policy is relevant in this instance:
Code of Conduct for Elected Members
Code of Conduct for Employees, Staff and Associates
Fraud and Corruption Prevention
Internal Review of Council Decisions Procedure
Whistleblowers Protection
Risk Assessment
6. There are no risks associated with the recommendation.
Finance
7. There are no financial implications for the City of Burnside in respect of the recommendation.
Discussion
8. City of Burnside has a number of Council Policies which inform and guide the way the Administration does the business of Council.
9. These policies are reviewed and presented to Council for endorsement to ensure that they reflect the current legislative, financial and political environment.
10. Council is required in accordance with Section 270(a1) and 270(a2) of the Local Government Act 1999 to adopt a Complaint Handling Policy and these have been reviewed for Council endorsement.
11. The Complaint Handling Policy is a key document that governs Council’s handling of complaints across the organisation. Complaint Handling has been an area of interest to the Ombudsman and is a significant area of risk management in enabling relevant issues to be identified and resolved or managed.
12. Suggested changes are outlined in track changes in Attachment A, with Attachment B presenting a “clean” version of the same document with the changes incorporated. Key changes include:
12.1. Acknowledgement of receipt of correspondence has been changed from 10 days to up to five days in the Complaints Handling Policy.
180
Audit Committee Agenda Item 5.10 15 April 2014
12.2. Flowchart illustrating the steps in the process of managing complaints for ease of reference.
12.3. Please note that this is acknowledgement of receipt of correspondence not resolution of correspondence.
Conclusion
13. It is recommended that the draft Complaint Handling Policy presented to the Audit Committee is endorsed and referred to Council for consideration and adoption as appropriate.
181
City of Burnside Policy Manual Page 1
Complaint Hhandling
Classification: Council Policy
Policy Name: Complaint Hhandling
First Issued / Approved: 22 May 2012, C8719
Last Reviewed: n/a
Next Review: May 2015
ECM Tracking No.: 1453094
Responsible Officer: General Manager, Community and Development Services
Relevant Legislation:
Local Government Act 1999 Ombudsman Act 1972 State Records Act 1997 Freedom of Information Act 1991 Privacy Act 1988 Whistleblowers Protection Act 1993 ICAC Act 2013
Related Policies:
Code of Conduct for Elected Members Code of Conduct for Employees, Staff and Associates Fraud and Corruption Prevention HACC Compliments, Complaints and Appeals Internal Review Procedure Request for Service Whistleblower’s Protection Policy
Related Procedures Complaint and Compliments
1. Introduction
1.1 Local Government provides an extensive range of services and infrastructure to the community and discharges obligations under many pieces of legislation.
1.2 The aim of this policy is to provide a fair, consistent and structured process for
Council’s customers if they are dissatisfied with a Council action or service and wish to make a formal complaint.
1.3 The policy and the associated procedures apply where Council has failed to meet
the normal standards for a service which has been, or should have been, delivered.
2. Strategic Plan Desired Outcomes
2.1 The community’s views are heard, understood, genuinely valued and reflected in Council business.
2.2 Leading best practice and compliance in Council business.
3. Our Approach
3.1 Facilitate the involvement of the community in Council’s decision making processes.
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City of Burnside Policy Manual Page 2
3.2 Remain compliant with all relevant legislation, standards and codes through
effective risk management. 3.3 Ensure provision of Council services meets community needs.
4. Legislative Requirements
The policy is required under Section 270(a1)(b) of the Local Government Act 1999. Its purpose is the management of complaints (as defined below). Requests for service or the review of a Council decision are dealt with under separate policies and procedures.
5. Interpretation
5.1 For the purpose of this policy:
5.1.1 “Complaint” means an expression of dissatisfaction with a product or service delivered by the Council, or its representatives, that has failed to reach the standard stated, implied or expecteddocumented. This includes complaints about a request for service that has been, or should have been delivered.
5.1.2 “Complainant” is a person who makes a complaint. Complaints canmay
originate from members of the public, elected members, contractors or staff.
5.1.3 “Council” means the City of Burnside. 5.1.4 “Business day” means Monday to Friday inclusive (except for public
holidays). 5.1.5 “Employee” means a person employed by the Council. 5.1.6 “Staff and associates” means a person engaged through an employment
agency, a contractor, volunteer, or a committee member appointed by Council under Section 41 of the Act, who act/work on behalf of Council.
5.1.7 “The Act” means the Local Government Act 1999. 5.1.8 “Request for service” means an application to have Council or its
representative take some form of action to provide a Council service. 6. Policy
6.1 The City of BurnsideCouncil is committed to the provision of quality service to customers and regards complaints as an opportunity to resolve the matters and then to improve practices, and procedures and the level of customer service if applicable..
6.2 The purpose of this policy is to ensure that complaints from the public about
regarding a Council product or service are examined fairly and objectively and resolved as far as possible to the Ccomplainant’s satisfaction.
183
City of Burnside Policy Manual Page 3
6.3 Staff should assess the risk to Council, the community and the Complainant and take action as appropriate.
6.4 If there is a likelihood of negative publicity then the corporate cCommunications
Advisory and the relevant departmental Manager and General Manager should be immediately notified as appropriate.
6.53 Emphasis will be placed on resolving complaints as quickly as possible.
However, whereWhere complaints cannot be settled in the first instance, Council will ensure that they are dealt with through appropriate, more formal procedures by staff with the authority to make decisions.
6.64 Council will aim to use findings from the complaint management process as a way
of improving services and programs as applicable wherever possible. 6.75 Council also receives service requests and feedback across all areas of
operations and clarification may be necessary to make these distinctions for the purpose of this policy.
Policy Does Not Apply Where:
6.6 There are also other complaint procedures which that apply to particular types of complaints. Where the complaint would be more properly dealt with by another process this will be explained to the Ccomplainant at the outset. For example:
6.6.1 Complaints against a Councillor or the Chief Executive Officer.
6.6.2 Insurance claims.
6.6.3 Decisions made under legislation other than the Local Government Act, such as the Development Act 1993 or Expiation of Offences Act 1996.
6.6.4 Complaints which that are determined to be about matters that are not Council’s responsibility, such as those of a personal or private natureprivate disputes between neighbours.
6.6.5 Where a complaint or dispute mechanism is available under the auspices of a program such as the Home and Community Care Program (HACC).
6.6.6 Referral to a formal review of a Council decision conducted under
Section 270(1) of the Act. 6.6.7 A complaint made under the Whistleblowers Protection Policy and
Whistleblowers Protection Act.
6.7 All customer complaints will be assessed and recorded. However, Wwhere a complaint is found to be frivolous, malicious, or vexatious, no further action will be taken on the complaint until the Chief Executive Officer has reviewed the asssement and the Ccomplainant will be advised accordingly.
7. Anonymous Complaints
7.1 All An anonymous complaints will be examined and taken seriously as long asprovided there is sufficient information to enable an investigation to be undertaken. It is acknowledged that Complainants have a right to make an
Formatted: Font: Italic
184
City of Burnside Policy Manual Page 4
anonymous complaint, notwithstanding that it is preferred that Complainants provide their name and contact details so that the Ccomplainant may be advised of the outcome of the complaint, which in turns allows them to dispute the outcome if they so wish. only be acted upon if the matter is considered serious and there is sufficient information in the complaint to enable an investigation to be undertaken.
8. How to Make a Complaint
8.1 A complaint may be made;
In person at the Civic Centre, Library, Burnside Swimming Centre, and Pepper Street Arts Centre. and Council Depot, or By completing the Customer Service Complaint form on the Council website, or By telephone, or Email, or By fax or letter addressed to the Chief Executive Officer.
8.2 To assist the Council administration to process the complaint, the Ccomplainant
should include the following details if relevant:
Date, time and location of event(s), Description of the event(s), Names of Council employee(s) to whom the Ccomplainant spoke and dates, Copies or references to letters or documents relevant to the complaint, The outcome that the Ccomplainant hopes to achieve.
8.3 A complaint about the Library, Burnside Swimming Centre or Pepper Street Arts
Centre, may be made at those facilities or at the Civic Centre, or via the website etc as shown at 8.1 above.
8.4 For contact details see “Availability” at clause 17 below.
9. Timeframe for Response
9.1 Where a complaint cannot be resolved immediately, the Ccomplainant will be advised of the process to be undertaken.
9.2 The Ccomplainant will be advised of the likely timeframe required to investigate
and resolve a complaint and regularly updated as to progress where necessaryas appropriate.
9.3 Council will acknowledge receipt of the complaint within five (5) business days.
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City of Burnside Policy Manual Page 5
10. Remedies
10.1 Where a complaint is found to be justified Council will, where practicable, remedy the situation in a manner which is consistent and fair for both Complainant and Council and complainant if possible. The solution chosen will aim to be proportionate and appropriate to the circumstances.
10.2 Where appropriate, Complainants will be provided with an explanation of changes
proposed or made as a result of the investigation of their complaint. 10.3 The complaint should in the first instance be investigated by the relevant line
manager of the area to which the complaint pertains.
10.4 If the complaint cannot be resolved by the relevant line manager then the complaint will be escalated to the next level of decision making within Council as required and in accordance with all relevant policies and protocols.
11. Using Complaints to Improve Service
11.1 Quality of service is an important measure of Council’s effectiveness. Council will review and evaluate the information gained through its complaints handling process to identify systemic issues and opportunities for improvements to service.
11.2 A report on the number and nature of complaints will be provided to Council at
least once a year. 11.3 Where appropriate, complainants will be provided with an explanation of changes
proposed or made as a result of the investigation of their complaint. 12. Record Keeping
12.1 All complaints will be captured and maintained recorded in Council’s electronic document records management records management system (EDRMS) in accordance with the State Records Act 1997 and Council’s Records Management Policy.
13. Privacy and Confidentiality
13.1 Complainants have a right to expect that their complaint will be investigated confidentiallyin private, to the extent possible. The identity of Ccomplainants will be made known only to those who need to know in the process of investigating and resolving the complaint. The complaint should not be revealed or made public by the Council, except where required by law or at the request of the Complainant.
13.2 All complaints lodged with Council are subject to the Freedom of Information Act
1991 and confidentiality cannot be guaranteed under the provisions of that legislation.
13.3 Information may be disclosed publicly in a de-identified format for annual
reporting, employee training and other purposes required by legislation.
Formatted: Indent: Left: 0 cm, Firstline: 0 cm
Formatted: Indent: Left: 0.95 cm,Hanging: 1.05 cm
186
City of Burnside Policy Manual Page 6
14. Other Forms of Resolution
14.1 While Council prefers to work with its customers to resolve complaints quickly and effectively, a Ccomplainant will always retain the right to seek other forms of resolution, such as a facilitator, Office for Public Integrity, Independent Commission Against Corruption, contacting the Ombudsman, or taking legal action at any time. Note however that as a general rule, the Ombudsman prefers a complaint to be addressed by Council in the first instance, unless this is inappropriate not appropriate in the circumstances.
15. Unreasonable Complainant Conduct
15.1 All complaints received by Council will be treated seriously and Ccomplainants will be treated fairly and courteously.
15.2 Occasionally the conduct of a Ccomplainant can may be ‘unreasonable’. This
may take the form of unreasonable persistence, unreasonable demands, lack of cooperation, argumentative, or aggressive behaviour. What can be termed ‘unreasonable’ will vary depending on a number of factors and Council aims seeks to manage these situations in a fair and equitable manner.
15.32 Where a Ccomplainant’s behaviour consumes an unwarranted amount of Council
resources or impedes the investigation of their complaint, or is considered to be an occupational work, health and safety hazard, a decision may be made to apply restrictions on contact with the personCcomplainant. Before making any decision to restrict contact, the Ccomplainant will be warned that, if the specified behaviour(s) or actions continue, restrictions may be applied.
15.3 Any decision to suspend action on a complaint will be made by the Chief
Executive Officer or his/her delegate and communicated in writing to the complainant.In the event that after a warning the behaviour contininuescontinues, the Chief Executive Officer or delegate may take action to mitigate the risk to Council and any Employee. This action will be communicated in writing to the Complainant.
16. Review
16.1 In order to ensure Council continues to provide the best possible complaints handling service for its customers, this policy will be subject to periodic evaluation and review.
17. Availability
17.1 The policy and the Customer Service Complaint form are available to be downloaded, free of charge, from Council’s internet site www.burnside.sa.gov.au
17.2 The policy will be available for inspection without charge at the Civic Centre
Customer Service desk during ordinary business hours and a copy may be purchased at a fee as set annually by Council.
17.3 A copy of the Customer Service Complaint form may be obtained from the Civic
Centre Customer Service desk.
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City of Burnside Policy Manual Page 7
City of Burnside Civic Centre 401 Greenhill Road, Tusmore SA 5065 Enquiries may be directed to the Manager Customer Service Telephone; 8366 4200 Fax; 8366 4299 email: [email protected] Civic Centre Office hours: Monday to Friday, 8.30am to 5.00pm (except public holidays)
Formatted: Indent: Left: 1.9 cm, Firstline: 0 cm
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188
City of Burnside Policy Manual Page 9
Customer Application Process DELETE THIS PAGE
Complaint
Process Request for Service
Request for Service
Is it a complaint that can be resolved at the first point of contact by
Resolved?
Note: Complaints can be directed to the State Ombudsman at any time within the process by the person making the complaint.
Yes
No
No Complainant may seek a formal review under Section
270 of the Local Govt Act
Inform Customer and document
resolution
Yes
No
Complaint received by the CEO for
review.
Yes
Resolved within
approved timeframe
Document details and escalate to Manager
Yes No
Notify resident of delay in resolution
Able to complete investigation
Yes
No
Complaint escalates to General Manager, assessed,
and decision made.
Resolved?
Document complaint and resolution
Document Compliment/Feedback
Officer to confirm whether it is a compliment / feedback,
complaint or a request for service
Was Request Actioned?
Inform Customer and document
resolution
Inform Customer and document
resolution
Customer Informed
Customer Unhappy?
Yes
No
Manager informed
Yes
Formatted: Font: Bold, Highlight
Formatted: Left
189
City of Burnside Policy Manual Page 1
Complaint Handling
Classification: Council Policy
Policy Name: Complaint Handling
First Issued / Approved: 22 May 2012, C8719
Last Reviewed: n/a
Next Review: May 2015
ECM Tracking No.: 1453094
Responsible Officer: General Manager, Community and Development Services
Relevant Legislation:
Local Government Act 1999 Ombudsman Act 1972 State Records Act 1997 Freedom of Information Act 1991 Privacy Act 1988 Whistleblowers Protection Act 1993 ICAC Act 2013
Related Policies:
Code of Conduct for Elected Members Code of Conduct for Employees, Staff and Associates Fraud and Corruption Prevention HACC Compliments, Complaints and Appeals Internal Review Procedure Request for Service Whistleblower’s Protection Policy
Related Procedures Complaint and Compliments
1. Introduction
1.1 Local Government provides an extensive range of services and infrastructure to the community and discharges obligations under many pieces of legislation.
1.2 The aim of this policy is to provide a fair, consistent and structured process for
Council’s customers if they are dissatisfied with a Council action or service and wish to make a complaint.
1.3 The policy and the associated procedures apply where Council has failed to meet
the normal standards for a service which has been, or should have been, delivered.
2. Strategic Plan Desired Outcomes
2.1 The community’s views are heard, understood, genuinely valued and reflected in Council business.
2.2 Leading best practice and compliance in Council business.
3. Our Approach
3.1 Facilitate the involvement of the community in Council’s decision making processes.
190
City of Burnside Policy Manual Page 2
3.2 Remain compliant with all relevant legislation, standards and codes through
effective risk management. 3.3 Ensure provision of Council services meets community needs.
4. Legislative Requirements
The policy is required under Section 270(a1)(b) of the Local Government Act 1999. Its purpose is the management of complaints (as defined below). Requests for service or the review of a Council decision are dealt with under separate policies and procedures.
5. Interpretation
5.1 For the purpose of this policy:
5.1.1 “Complaint” means an expression of dissatisfaction with a product or service delivered by the Council, or its representatives, that has failed to reach the standard stated, implied or documented. This includes complaints about a request for service that has been, or should have been delivered.
5.1.2 “Complainant” is a person who makes a complaint. Complaints may
originate from members of the public, elected members, contractors or staff.
5.1.3 “Council” means the City of Burnside. 5.1.4 “Business day” means Monday to Friday inclusive (except for public
holidays). 5.1.5 “Employee” means a person employed by the Council. 5.1.6 “Staff and associates” means a person engaged through an employment
agency, a contractor, volunteer, or a committee member appointed by Council under Section 41 of the Act, who act/work on behalf of Council.
5.1.7 “The Act” means the Local Government Act 1999. 5.1.8 “Request for service” means an application to have Council or its
representative take some form of action to provide a Council service. 6. Policy
6.1 The City of Burnside is committed to the provision of quality service to customers and regards complaints as an opportunity to resolve the matters and then to improve practices, procedures and the level of customer service if applicable.
6.2 The purpose of this policy is to ensure that complaints regarding a Council
product or service are examined fairly and objectively and resolved as far as possible to the Complainant’s satisfaction.
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6.3 Staff should assess the risk to Council, the community and the Complainant and take action as appropriate.
6.4 If there is a likelihood of publicity then corporate communications and the relevant
departmental Manager and General Manager should be immediately notified as appropriate.
6.5 Emphasis will be placed on resolving complaints as quickly as possible. Where
complaints cannot be settled in the first instance, Council will ensure that they are dealt with through appropriate, more formal procedures by staff with the authority to make decisions.
6.6 Council will aim to use findings from the complaint management process as a way
of improving services and programs as applicable wherever possible. 6.7 Council also receives service requests and feedback across all areas of
operations and clarification may be necessary to make these distinctions for the purpose of this policy.
Policy Does Not Apply Where:
6.6 There are also other complaint procedures that apply to particular types of complaints. Where the complaint would be more properly dealt with by another process this will be explained to the Complainant at the outset. For example:
6.6.1 Complaints against a Councillor or the Chief Executive Officer.
6.6.2 Insurance claims.
6.6.3 Decisions made under legislation other than the Local Government Act, such as the Development Act 1993 or Expiation of Offences Act 1996.
6.6.4 Complaints that are determined to be about matters that are not Council’s responsibility, such as those of a personal or private nature between neighbours.
6.6.5 Where a complaint or dispute mechanism is available under the auspices of a program such as the Home and Community Care Program (HACC).
6.6.6 Referral to a formal review of a Council decision conducted under
Section 270(1) of the Act. 6.6.7 A complaint made under the Whistleblowers Protection Policy and
Whistleblowers Protection Act.
6.7 All customer complaints will be assessed and recorded. Where a complaint is found to be frivolous, malicious, or vexatious, no further action will be taken on the complaint until the Chief Executive Officer has reviewed the asssement and the Complainant will be advised accordingly.
7. Anonymous Complaints
7.1 All anonymous complaints will be examined provided there is sufficient information to enable an investigation to be undertaken. It is acknowledged that Complainants have a right to make an anonymous complaint, it is preferred that
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Complainants provide their name and contact details so that the Complainant may be advised of the outcome of the complaint, which in turns allows them to dispute the outcome if they so wish.
8. How to Make a Complaint
8.1 A complaint may be made;
In person at the Civic Centre, Library, Burnside Swimming Centre, and Pepper Street Arts Centre. , or By completing the Customer Service Complaint form on the Council website, or By telephone, or Email, or By fax or letter addressed to the Chief Executive Officer.
8.2 To assist the Council administration to process the complaint, the Complainant
should include the following details if relevant:
Date, time and location of event(s), Description of the event(s), Names of Council employee(s) to whom the Complainant spoke and dates, Copies or references to letters or documents relevant to the complaint, The outcome that the Complainant hopes to achieve.
8.4 For contact details see “Availability” at clause 17 below. 9. Timeframe for Response
9.1 Where a complaint cannot be resolved immediately, the Complainant will be advised of the process to be undertaken.
9.2 The Complainant will be advised of the likely timeframe required to investigate
and resolve a complaint and regularly updated as to progress as appropriate. 9.3 Council will acknowledge receipt of the complaint within five (5) business days.
10. Remedies
10.1 Where a complaint is found to be justified Council will, where practicable, remedy the situation in a manner which is consistent and fair for both Complainant and Council if possible. The solution chosen will aim to be proportionate and appropriate to the circumstances.
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10.2 Where appropriate, Complainants will be provided with an explanation of changes
proposed or made as a result of the investigation of their complaint. 10.3 The complaint should in the first instance be investigated by the relevant line
manager of the area to which the complaint pertains.
10.4 If the complaint cannot be resolved by the relevant line manager then the complaint will be escalated to the next level of decision making within Council as required and in accordance with all relevant policies and protocols. 11. Using Complaints to Improve Service
11.1 Quality of service is an important measure of Council’s effectiveness. Council will review and evaluate the information gained through its complaints handling process to identify systemic issues and opportunities for improvements to service.
11.2 A report on the number and nature of complaints will be provided to Council at
least once a year.
12. Record Keeping
12.1 All complaints will be captured and maintained in Council’s electronic document records management system (EDRMS) in accordance with the State Records Act 1997 and Council’s Records Management Policy.
13. Privacy and Confidentiality
13.1 Complainants have a right to expect that their complaint will be investigated confidentially, to the extent possible. The identity of Complainants will be made known only to those who need to know in the process of investigating and resolving the complaint. The complaint should not be revealed or made public by the Council, except where required by law or at the request of the Complainant.
13.2 All complaints lodged with Council are subject to the Freedom of Information Act
1991 and confidentiality cannot be guaranteed under the provisions of that legislation.
13.3 Information may be disclosed publicly in a de-identified format for annual
reporting, employee training and other purposes required by legislation. 14. Other Forms of Resolution
14.1 While Council prefers to work with its customers to resolve complaints quickly and effectively, a Complainant will always retain the right to seek other forms of resolution, such as a facilitator, Office for Public Integrity, Independent Commission Against Corruption, contacting the Ombudsman, or taking legal action at any time. Note as a general rule, the Ombudsman prefers a complaint to be addressed by Council in the first instance, unless this is inappropriate in the circumstances.
15. Unreasonable Complainant Conduct
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15.1 All complaints received by Council will be treated seriously and Complainants will
be treated fairly and courteously. 15.2 Occasionally the conduct of a Complainant may be ‘unreasonable’. This may
take the form of unreasonable persistence, unreasonable demands, lack of cooperation, argumentative, or aggressive behaviour. What can be termed ‘unreasonable’ will vary depending on a number of factors and Council seeks to manage these situations in a fair manner.
15.3 Where a Complainant’s behaviour consumes an unwarranted amount of Council
resources or impedes the investigation of their complaint, or is considered to be a work, health and safety hazard, a decision may be made to apply restrictions on contact with the Complainant. Before making any decision to restrict contact, the Complainant will be warned that, if the specified behaviour(s) or actions continue, restrictions may be applied.
15.3 In the event that after a warning the behaviour continues, the Chief Executive
Officer or delegate may take action to mitigate the risk to Council and any Employee. This action will be communicated in writing to the Complainant.
16. Review
16.1 In order to ensure Council continues to provide the best possible complaints handling service for its customers, this policy will be subject to periodic evaluation and review.
17. Availability
17.1 The policy and the Customer Service Complaint form are available to be downloaded, free of charge, from Council’s internet site www.burnside.sa.gov.au
17.2 The policy will be available for inspection without charge at the Civic Centre
Customer Service desk during ordinary business hours and a copy may be purchased at a fee as set annually by Council.
17.3 A copy of the Customer Service Complaint form may be obtained from the Civic
Centre Customer Service desk.
City of Burnside Civic Centre 401 Greenhill Road, Tusmore SA 5065 Enquiries may be directed to the Manager Customer Service Telephone; 8366 4200 Fax; 8366 4299 email: [email protected] Civic Centre Office hours: Monday to Friday, 8.30am to 5.00pm (except public holidays)
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CUSTOMER APPLICATION PROCESS
Customer Application received
Officer to confirm whether it is a compliment/
feedback, complaint or a request for
service
Request for Service
Process Request for Service
Was Request Actioned? No
Yes
Customer informed
Customer Unhappy?
DocumentCompliment / Feedback
Complaint
Manager informed
Is it a complaint that can be resolve at the first point of contact by staff
member?
Yes
Document complaint and
resolution
No
Document details and escalate to
Manager
Resolved within approved timeframe
Notify resident of delay in resolution
No
Able to complete investigation
Yes
Inform Customer and
document resolution
Yes
Yes
Complaint escalates to General
Manager, assessed, and decision made
No
Resolved?
Complaint received by the CEO for
review
No
Resolved?
Complainant may seek a formal review under
Section 270 of the Local Govt Act
No
Inform Customer and
document resolution
Yes
Inform Customer and
document resolution
Yes
Note: Complaints can be directed to
the State Ombudsman
and/or ICAC at any time
within the process by the person making the complaint.
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