minutes of the audit committee meeting held on 13 august ... · minutes of the audit ... in the...

Minutes of the Audit Committee Meeting

Held on 13 August 2012

in the

Large Meeting Room

Commencing at 10.17am

ALEXANDRINA COUNCIL

MINUTES FOR THE AUDIT COMMITTEE MEETINGHELD ON 13 AUGUST 2012 AT 10:17 AM

IN THE LARGE MEETING ROOM

TABLE OF CONTENTS

ITEM NO. SUBJECT PAGE NO.

CONFLICT OF INTEREST ............................................................................................................ 3ITEM 1 CONFIRMATION OF MINUTES................................................................................ 42. BUSINESS ARISING........................................................................................................... 43. QUESTIONS WITHOUT NOTICE ....................................................................................... 44. QUESTIONS WITH NOTICE............................................................................................... 45. NOTICE OF MOTION.......................................................................................................... 46. GENERAL REPORTS ......................................................................................................... 4

6.1 Report on Internal Audit Group.................................................................................. 56.2 Interim Audit Letter .................................................................................................... 76.3 Independence of Council Auditor ............................................................................ 106.4 Non Council and Community Buildings, Structures and Associated Assets ............ 126.5 Banking Review....................................................................................................... 146.6 Draft Risk Management Procedure ......................................................................... 166.7 Resolution Register ................................................................................................. 186.8 Draft Community Strategic Plan 2013-23 ................................................................ 20

7. OTHER MATTERS............................................................................................................ 258. CONFIDENTIAL REPORTS .............................................................................................. 259. CLOSURE ......................................................................................................................... 25

Alexandrina Council Audit Committee MinutesMonday 13 August 2012

ALEXANDRINA COUNCIL

MINUTES OF THE AUDIT COMMITTEE MEETINGHELD IN THE LARGE MEETING ROOM

ON 13 AUGUST 2012 AT 10:17 AM

PRESENT

Cr Grant Gartrell (Acting Chair)Cr Madeleine WalkerMayor Kym McHughJohn Comrie (Independent Member) via phoneClaudia Goldsmith (Independent Member) via phone

APOLOGIES

Nil

IN ATTENDANCE

Peter Dinning (Chief Executive)Robyn Dunstall (General Manager – Corporate & Community Services)Elizabeth Williams (Finance Manager)Kate Jessep (General Manager – Organisational Development)Jason Geraghty (Asset Accountant)Anne Liddell (Strategy Officer)Joe Hill (Manager HR & Risk)Stephanie Juhas (Audit Committee Administrator)

CONFLICT OF INTEREST

Section 73 of the Local Government Act 1999


ITEM 1 CONFIRMATION OF MINUTES

Minutes of the Alexandrina Council Audit Committee Meeting held on

Moved Cr Walker seconded John Comrie:

That the minutes of the Alexandrina Council Audit Committee Meeting heldon 30 April 2012 as circulated to members be received as a true and accuraterecord.

2. BUSINESS ARISING

Nil

3. QUESTIONS WITHOUT NOTICE

Nil

4. QUESTIONS WITH NOTICE

Nil

5. NOTICE OF MOTION

Nil


6. GENERAL REPORTS

6.1 Report on Internal Audit Group

File Ref: 9.24.1Officer Resp. for Report: Kate Jessep

Strategic Plan:* Strategic Focus: Governance and Organisation* Goal: Progressive leadership, good governance,

efficient and effective services* Outcome: 4.7 Financial sustainability and

accountability for performance* Strategy: 4.7.4 Provide internal and external audit

functions to review Council’s performance,risk management, financial governance andreporting

Purpose

To provide a regular update on the progress of the Internal Audit Group (IAG).

Discussion

Since the last report to the Audit Committee the IAG has held one meeting on 30May 2012.

At this meeting Tricia de Vink was thanked for her two year term on the IAG andColin Shackleford was welcomed as a member of the IAG.

Various recurring checks were reported as completed with no anomalies beingidentified.

An updated list of Council’s cheque signatories was recommended and variousfinancial authority limits were recommended.

At this meeting the Internal Audit Group also undertook its annual reviews andadvised the following:

Internal Audit Charter – the IAG recommends discussion of thecomposition of membership be discussed with the Audit Committee,Auditors and Chief Executive before proposing any amendment to thecharter. Whilst the IAG supports the intent of the current compositionrequirement detailed in the charter, it is felt that there should always be arepresentative from Organisation Development Division and Corporate andCommunity Services Division.


6.1 Report on Internal Audit Group(continued)

IAG Effectiveness and Performance – Overall the IAG was satisifed withitw work for trhe year, in terms of effectiveness, the IAG proposed toprepare a procedure for each type of recurring check. This task has beencompleted and the draft procedures are attached for comment by the AuditCommittee.

Work Program – The IAG has updated its Work Program andrecommends to the audit committee that Serial 1 “Grants” from the IAGWork Program include reviews of the Strengthening Basin Communitiesand Centenary Hall projects.

The next meeting of the Internal Audit Group is scheduled for 4 September 2012 tocoincide with the next visit from the Auditors who will be extended an invitation toattend the meeting.

Statutory Responsibilities

Section 125 of the Local Government Act specifies that a council must ensure thatappropriate polices, practices and procedures of internal control are implementedand maintained. The Internal Audit Group has been formed to aid Council inmeeting this compliance requirement.

Summary

The Internal Audit Group will continue to report its progress to each AuditCommittee meeting on its work program and other activities undertaken.

ACAC115 Moved Mayor McHugh seconded John Comrie:

That the Internal Audit Group's Minutes and amended Work Program astabled be received, particularly noting the completion of the annual reviewof:

The Internal Audit Charter The Internal Audit Group effectiveness and performance The Internal Audit Group Work Program

CARRIED


6.2 Interim Audit Letter

File Ref: 7.1.028Officer Resp. for Report: Elizabeth Williams (Finance Manager)Consultation: General Manager Corporate & Community

Services, General Manager InfrastructurePlanning & Design



accountability for performance* Strategy: 4.7.1 Provide financial services to support

Council’s operations and to meetsustainability planning, reporting andaccountability requirements

Purpose

To receive Dean Newbery & Partners External Audit Management Letter regardingthe findings of their Interim Audit undertaken during March 2012 for the financialyear ending 30 June 2012.

Background

Dean Newbery & Partners are Council’s External Auditor and undertake an InterimAudit and Balance Date Audit each year. The Interim Audit normally consists oftransaction testing and a review of internal controls.

Discussion

The Interim Audit Letter raises a number of points for consideration by the Council.Council administration has reviewed the letter and provide the following response:

1. Formal adoption of Asset Service StandardsAsset service standards will be formalised with the review andupdate of Council’s Asset Management Plans. It is our intentionthat the service standards will be encapsulated within service leveldocuments (such as Council’s sealed road maintenance plan) whichwill form an appendix to the Infrastructure and Asset ManagementPlan. Whilst Council has currently adopted only one service leveldocument (sealed road maintenance plan) further documents will bedeveloped including an unsealed road maintenance plan and


6.2 Interim Audit Letter(continued)

community wastewater management scheme maintenance plan.Council’s administration considers this the preferred method ofoutlining service standards as the maintenance plans will be usedas operational plans for field services staff.

2. Review and update of Council’s Asset Management PlansCouncil will be updating its Asset Management Plan for inclusion inthe adoption of Council Strategic Management Plans in November2012. Council’s ten year capital works program including asset,renewal, expansion and upgrade has already been determined andwill form the basis of the long term financial plan. Counciladministration will be investigating the correlation between currentrenewal expenditure and depreciation projections, this may lead toa revision of long lived assets useful lives.

3. Council’s adopted 2012 Budget – Statutory ComplianceNo further action required.

4. Formal development and adoption of Debt Recovery PolicyCouncil staff are in the process of formalising Council’s debtrecovery policy and procedure. The debt recovery policy will bepresented to the Audit Committee before the end of 2012.

5. Processed General JournalsNo additional action required. Quarterly independent reviews willcontinue to be undertaken by the Internal Audit Group.

6. Processed Rates Journals – 2012 Financial YearNo additional action required. Biannual independent reviews willcontinue to be undertaken by the Internal Audit Group.

7. Development of a formal Government Grants RegisterA Synergy module has been purchased to formally track Council’sgrants on an ongoing basis, currently finance staff reconcile allgrants received annually at 30 June. Staff are in the process ofdeveloping procedures for the modules implementation. It isexpected implementation will occur by the end of 2012.

8. Accounts payable sample transaction testingNo action required.


6.2 Interim Audit Letter(continued)

9. Sample testing – Employee Payroll TransactionsNo additional action required. Biannual independent reviews willcontinue to be undertaken by the Internal Audit Group.

10. Payroll Reports – Internal Control ReviewThe process around the authorisation of the payroll process hasbeen reviewed and minor process changes will be implemented tomitigate the control risk identified. The GL Impact Statement listingthe total of the pay run will be presented with the Compare GrossPays report and this will be verified by the second authorisingofficer against the bank receipt for the pay run processed. The GLImpact Statement is produced when the pay run is finalised and thiswill ensure no amendments can be made to the file afterauthorisation has occurred.


Section 129(1)(b) of the Local Government Act requires that the Council’s externalauditor must undertake and audit of the controls exercised by the Council duringthe relevant financial year.

Financial Implications

There are no financial implications, any work required to be undertaken will bedone within existing budgets.

Risk Assessment

Undertaking the suggested actions will enhance Council’s existing financial internalcontrols.

Summary

Council will undertake the identified actions in response to the Interim Audit Letterincorporating actions as necessary into the Audit Committee and Internal AuditGroup work programs.

ACAC116 Moved Cr Walker seconded John Comrie:

That the Audit Committee receive the 2012 Interim Audit letter and requestthe incorporation of relevant actions into the Internal Audit Groups 12/13Work Program.

CARRIED


6.3 Independence of Council Auditor

File Ref: 7.8.001Officer Resp. for Report: Elizabeth Williams (Finance Manager)





Purpose

For the Presiding member of the Audit Committee to make a statement thatprovides certification as to the independence of the auditor for the financial yearending 2012.

Background

The preparation of the financial statements of a council must be in accordance withthe requirements set out in the Model Financial Statements. They require the ChiefExecutive and the Presiding member to confirm that Council’s Auditor DeanNewbery & Partners have maintained independence in accordance with therequirements of the Local Government Act 1999 and Local Government (FinancialManagement) Regulations 2011.

Discussion

Councils Auditor, Dean Newbery & Partners are in the process of undertaking thebalance date audit of Alexandrina Council. They were on site for one day on 30July examining current assets and current liabilities and will return for two days on3 and 4 September to finalise the 11/12 audit.

The draft 11/12 financial statements incorporating feedback from the auditors willbe presented to the Audit Committee at the meeting to be held on 2 October 2012.

Council has not engaged Council’s Auditor, Dean Newbery & Partners to provideany services outside the scope of the Auditors function as Council’s Auditor.


6.3 Independence of Council Auditor(continued)


Division 3 of the Local Government (Financial Management) regulations2011 specifies the independence requirements of Council’s auditor.

S22(1) provides that a council must not engage its auditor to provideservices to the council outside the scope of the auditor’s functions underthe Act.

22(3)(a) states that the following persons must each provide, on an annualbasis, a statement that provides a certification as to compliance for therelevant financial year with the requirement that the auditor be independent ofthe council, council subsidiary or regional subsidiary (as the case may be):(a) in a case involving a council or council subsidiary—the chief executive

officer of the relevant council and the presiding member of the auditcommittee of the relevant body;


There are no financial implications if the motion is carried.

Risk Assessment

Financial, people, reputation, environmental and service delivery risks are allassessed as being low.

Summary

That the Presiding member be authorised to sign the Auditor IndependenceStatement certifying that to the knowledge of the Audit Committee the Auditor hasmaintained independence for 2011/12 financial year.

ACAC117 Moved John Comrie seconded Cr Gartrell:

That the Presiding member be authorised to sign the Auditor Independencestatement certifying that to the knowledge of the Audit Committee theAuditor has maintained independence for the 2011/12 financial year.

CARRIED


6.4 Non Council and Community Buildings, Structures and Associated Assets


Services, Asset Accountant, BuildingsManager, Property Officer





Purpose

To consider an amendment to Council’s asset accounting policy to clarify Council’sposition on the recognition of non council and community buildings, structures andassociated assets on crown land.

Background

In accordance with Australian Accounting Standards, Maloney Field Servicesundertook a full revaluation of Council’s buildings and structures as currentlylisted on Council’s asset register as at 1 July 2011. Maloney Field Services, atthe request of Council undertakes a desktop valuation of our building andstructure assets annually, with the last full revaluation being undertaken in 2007.

Discussion

The draft revaluation report for the 11/12 financial year indicated a significantincrease in valuations and depreciation from the 10/11 audited figures. Thedepreciation increase is partly attributable to the further componentisation ofbuildings for 11/12. Further investigation also highlighted a portion of buildings,structures and associated assets listed on Council’s asset register that are notunder the direct care and control of Council other than being on crown land.

Following discussions with our Auditor and reviewing other Council’s policies andpractices, it is recommended that non council and community buildings,structures and associated assets (on crown land that is under the control ofCouncil) will not be valued in Councils asset register and therefore will not bedepreciated.


6.4 Non Council and Community Buildings, Structures and Associated Assets(continued)

Council will only recognise an asset in the event of expiration/termination of thelease and the abandonment of the building and associated assets, unless thelease agreement specifies otherwise.

In the event of a loss, it is recognised that Council would not necessarily replacethe building and associated assets. Council may still conduct insurancevaluations as per terms of lease agreements currently in place.

It is proposed that Council’s asset accounting policy be amended as presented,and that the buildings, structures and associated assets identified as not beingunder the direct care and control of Council be removed from Council’s assetregisters effective 1 July 2011.


In accordance with Part 3 of the Local Government (Financial Management)Regulations 2011, Council must ensure that all accounting records, accounts andfinancial statements are prepared and maintained in accordance with all relevantAustralian Accounting Standards.


The draft valuation report from Maloney Field Services, indicated a replacementcost of Council’s current building and major structures assets was $82,822,706, anincrease of $20,767,026 from the 10/11 audited figures. The draft report alsoindicated that annual depreciation was going to be $1,780,486, an increase of$767,584 from 10/11 audited figures.

The identified buildings, structures and associated assets on crown land for whichCouncil currently has no direct care and control have a replacement cost of$19,478,220 and annual depreciation of $456,402. It is recommended theseassets be removed from Council’s asset register.

Risk Assessment

Financial, people, reputation, environmental and service delivery risks are allassessed as being low. All buildings on crown land will continue to be valued forinsurance purposes.

Mayor McHugh left the meeting at 10.43am


6.4 Non Council and Community Buildings, Structures and Associated Assets(continued)

Summary

That Council’s asset accounting policy is amended to clarify Council’s position onthe recognition of assets not under the direct care and control of Council for noncouncil and community buildings, structures and associated assets on crown land.


1. That the Audit Committee supports what is trying to be achieved regardingassets on crown land. The Audit Committee requests further work identifyingformal agreements for assets on crown land.

2. That the 2011/12 financial statements have a note identifying the treatmentof assets on crown land.

CARRIED

6.5 Banking Review


Services



accountability for performance* Strategy: 4.7.1 Provide financial services to support

Council’s operations and to meetsustainability planning, reporting andaccountability requirements

Purpose

To review Council’s banking requirements.

Background

Best practice indicates that Council should review its banking services andproducts. Council spends approximately $110,000 annually on banking transactioncosts and this has been identified as an area for potential savings.


6.5 Banking Review(continued)

Discussion

In 2011 Whitmore Consulting were engaged to benchmark our banking servicesand products. Andrew Whitmore from Whitmore Consulting has over twenty fiveyears experience in the transaction banking sector of the Banking and FinanceIndustry and has worked at four of the major domestic banks and Citigroup duringthat time. Whitmore Consulting have undertaken benchmarking exercises for 12South Australian Councils and conducted 3 tenders to date.

Whitmore Consulting manage the entire review process from the development oftender specifications, conduct the tender, prepare a report on the submissionsreceived and provide a recommendation. The tender will be conducted inaccordance with Council’s Contracts, Tenders and Purchasing Policy. It isproposed that the following attributes and weightings form the basis of Council’sevaluation criteria:

Product Sophistication 30%Price 25%Level of Relationship Management Support 15%Commitment to the Local Community 15%Ability to Implement 10%Degree of Innovation 5%


The Local Government Act 1999 states that a Council must, in the performance ofits roles and functions, seek to ensure that council resources are used fairly,effectively and efficiently.


As a result of the benchmarking exercise, Whitmore Consulting identified apotential saving of $41,000 between our current costs and market costs.

Council staff have followed up with our providers requesting a product review and‘best price’. From the revised figures an $11,000 saving is possible via our ownnegotiations.

Whitmore Consulting have indicated that a further $30,000 saving is possible bygoing to tender. To engage Whitmore Consulting to conduct the tender processwill be $4,800 +GST and can be done within existing budgets.


6.5 Banking Review(continued)

Risk Assessment

Financial, people, reputation, environmental and service delivery risks are allassessed as being low.

Summary

A tender of Council’s banking requirements is recommended to ensure we areusing the appropriate banking products for our needs and that our pricing iscompetitive.

ACAC119 Moved Cr Walker seconded Cr Gartrell:

That the Audit Committee recommends that Council go to tender for itsbanking requirements.

CARRIED

6.6 Draft Risk Management Procedure

File Ref: 9.24.1Officer Resp. for Report:Consultation: Joe Hill (Manager Human Resources and

Risk)Strategic Plan:* Strategic Focus: Governance and Organisation* Goal: Progressive leadership, good governance,



functions to review Council’s performance,risk management, financial governance andreporting.

Purpose

To seek Audit Committee comment on the revised, draft, Alexandrina Council RiskManagement Procedure.


6.6 Draft Risk Management Procedure(continued)

Discussion

In February and March, the Executive Management team and other selectedofficers have were involved in a number of workshops to review Council’s riskmanagement policy and procedure and to develop a corporate risk framework.These sessions were facilitated by Victor Di Maria from the Local GovernmentAssociation Mutual Liability Scheme.

The three workshops were held on the following dates with strong representationfrom all Divisions:

Workshop 1 – 15 February 2012Workshop 2 – 5 March 2012Workshop 3 – 21 March 2012

During these workshops, Victor Di Maria facilitated a comprehensive analysis ofCouncil’s current Risk Management Policy and Procedure which led to the decisionto review both of these documents. The workshop also provided an opportunity toidentify and discuss the internal and external drivers that can create uncertainty forCouncil.

In April the revised Risk Management Policy was presented to the Audit Committeefor comment prior to being presented to Council and endorsement on 21 May2012.

To facilitate implementation of this policy, the draft Risk Management Procedurehas been revised to incorporate the new strategic risk framework.


Local Government Acts48 Prudential Reporting and project risk managements80 Insurance of memberss122 Strategic management plan requirements.s134 (4) Risk management for borrowing and financial arrangementss139 (3) the nature of and risk associated with existing council investments and therisk of capital or income loss or depreciations215 (2) Special provisions for certain kinds of roadwork in relation to risk toadjoining propertiess245 Liability for injury, damage or loss caused by certain trees


6.6 Draft Risk Management Procedure(continued)

Risk Assessment

This recommendation relates to an internal administrative action and it isconsidered that there are no risks associated with the recommendation.

Summary

Having an up-to-date and relevant Risk Management Procedure in place willimprove the ability of the staff to implement Council’s Strategic and operational riskmanagement processes. This will support Council’s decision making, reduceCouncil’s risk exposure and ensure compliance with the Local Government Act.

ACAC120 Moved Cr Walker seconded Cr Gartrell:

That the Audit Committee recommends the revised Draft Risk ManagementProcedure to Executive Management for endorsement.

CARRIED

6.7 Resolution Register

File Ref: 9.24.1Officer Resp. for Report: Christine Hamlyn (Governance Officer)

Background

In response to a recommendation from the Auditors, liaison has occurred with theprogrammers of Council’s SynergySoft Program, with regard to the“Agenda/Minutes Module”, the program which Council uses to create the majorityof its agenda and minute documents.

A report has been developed which is produced after each Council meeting, toshow an “outstanding action list” for each Council item and associated resolutionrequiring an action.

Discussion

After negotiation, programming and trialling, an “Outstanding Resolution Register”is now produced after each Council Meeting. This became effective from theCouncil Meeting held on 7 May 2012. As an example, please find attached theOutstanding Resolution Register produced following the Council Meetings held on18 June and 2 July 2012.


6.7 Resolution Register(continued)

The report shows the following information:

Responsible department Minute no. Council meeting date Resolution Officer Action Required Follow-up Action

Reports can be produced for selected periods of time e.g. over a three monthperiod, six month period etc.

Reports can be produced to show the following:

Resolution Register – Not Confidential – Action required Resolution Register – Not Confidential – Action completed Resolution Register – Not Confidential – Full report

ACAC121 Moved Cr Gartrell seconded Cr Walker:

That the report be received.

CARRIED


6.8 Draft Community Strategic Plan 2013-23

File Ref: 9.24.1Officer Resp. for Report: Anne Liddell (Strategy Officer)From: Office of the Chief ExecutiveRoyal Park

SalvageConsultation: Executive Management; Council (21

November 2011; 27-28 February; 19 March2012; 18 June 2012; 6 August 2012);numerous community consultations asoutlined in this report.


efficient and effective services* Outcome: 4.4 Effective strategic management planning

and performance management* Strategy: 4.4.1 Develop, implement and review

Council’s Strategic Management Plans andCorporate Business Plans

ESD Impact/Benefit:-* Environmental: Sustainable natural and built environments

that meet the needs of a growing communityand economy

* Social: A vibrant, cohesive and diverse communityproviding a healthy, quality lifestyle.

* Economic: Sustainable economic growth supportingindustries and businesses

Purpose

To seek audit committee recommendation to Council that the draft CommunityStrategic Plan 2013-23 to proceed to formal community consultation. Thissupports Council’s current review of Strategic Management Plans, in accordancewith Section 122 (4) of the Local Government Act 1999.

Background

At its meeting of 19 September 2011, Council endorsed the following approach toits Section 122 review of Strategic Management Plans:

a 14 month process resulting in three rounds of public consultationthroughout late 2011 and during 2012;

a visioning element of community aspirations for 2040; a 2013-23 community strategic plan; and


6.8 Draft Community Strategic Plan 2013-23(continued)

resourcing strategies from 2013-23 (including the long term financialplan and infrastructure and asset management plan).

Pursuant to Section 122 of the Local Government Act 1999, the Council mustdevelop, adopt and review plans to effectively manage its area, to be collectivelyknown as the Strategic Management Plans.

Under subsection (4)(b), Council must ‘undertake a comprehensive review of itsstrategic management plans within 2 years after each general election of theCouncil’.

In addition, under subsection (6), Council must ‘adopt a process or processes toensure that members of the public are given a reasonable opportunity to beinvolved in the development and review of its strategic management plans.’

At its meeting on 21 November 2011, Council endorsed the review process torevise and develop the Community Strategic Plan 2013-2023.

The adopted consultation and engagement process supporting the review includes:

Vision 2040 public forums in townships around Alexandrina from 30November to 8 December 2011 and raising awareness amongholiday makers during the festive season;

2013-23 Community Strategic Plan public and key stakeholderforums during March – June 2012 that included keynote speakersfrom the SA State Government Community Engagement Board,Department for Premier and Cabinet, Office of the Chief Scientistand Integrated Design Commission;

Draft 2013-23 Community Strategic Plan for formal consultationduring August – September 2012, including distribution to allratepayers and key stakeholders for comment; and

attendance at stakeholder meetings, range of advertising vianewspapers and newsletters and “My Say Alexandrina” onlineforums throughout.

The Review consultation and engagement strategy is consistent with theInternational Association of Public Participation (IAP2) spectrum by achieving the‘Inform-Consult-Involve’ levels as a minimum. Other SA councils including AdelaideCity Council and City of Charles Sturt also adopted a three phase development andconsultation model.



Discussion

Phases one and two of the Community Strategic Plan Review have beencomprehensively undertaken and as a result a draft Community Strategic Plan2013-2023 has been drafted.

In summary, the methods used to develop the draft Community Strategic Plan2013-2023 are as follows:

Evaluation of the existing plan by elected members and staff (late2011) including the interplay of national, State and regional trendsthrough a local lens.

Research and development (throughout) including an economicreport on Alexandrina LGA economic indicators and opportunities byEconSearch.

Consultation (late 2011-mid 2012) – Three phase iterative modelover Ten months: 1861 engagements to date (1050 of these under17 years; 629 online; 182 at community meetings).

Consultation Target of 3% of 2011 Estimated Resident Population(738 people) has been exceeded by Phase 2 – currently at 7.5%(yet to be controlled for small levels of repeat engagement)

Phase Three will be run as a formal consultation under s.50 ands.122 during late August-September. Two consultation documents:Draft Community Strategic Plan 2013-23 and Review of CSPCompanion Report (summarising research, consultation and wardprofiles).

Testing (mid 2012) Three Staff and Elected Member workshops;meeting with Regional Development Australia (Adelaide HillsFleurieu and Kangaroo Island) and inviting regional Councils tocomment.

Consideration of the Kungun Ngarrindjeri Yunnan Agreement(Listening to Ngarrindjeri People Talking) and liaison meetingrequested.

The evaluation of the current strategic plan found the existing Plan was toooperational and functional with approximately 30% more components than the SAStrategic Plan (with many unused during the last cycle). This has resulted in asubstantial re-work of the structure and presentation of the Community StrategicPlan to be more understandable, streamlined, integrated and flexible.

Further details on the method to develop the draft Community Strategic Plan 2013-202 are included in the Review of CSP Companion Report. This will be finalisedprior to the commencement consultation period.



The new plan has a 2040 vision, four aspirations, twelve outcomes and no morethan 36 strategies. It also proposed to include priorities for each of the fouraspirations that reflect areas of most common and prominent community interest.The model is designed to support synergies and linkages between all areas asdemonstrated in the aspiration model.

Alexandrina Council’s existing 2009-2013 Community Strategic Plan does notinclude indication of measurement or the trends that might influence theperformance of strategic management plans over time. This was identified in theLGA SA Continuous Improvement Plan as a limitation with agreed action includingconsideration of data and amendment of strategic management plans.

As this represents a major shift for Alexandrina Council, further work is still to becompleted to select and refine measures and targets. In terms of implementation, itwill require the commitment of Council and staff to develop appropriate skill setsand utilise modest budget resources to ensure measures and targets aremonitored and analysed robustly. Integrity in data selection and management iscritical to supporting community confidence that Council is able to adapt and adjustdirections and priorities as appropriate. Selected targets and measures will bepresented to the Audit Committee at its meeting of 2 October 2012 prior to beingincluded in the Community Strategic Plan 2013-2023 proposed for adoption toCouncil (anticipated for the agenda Council’s meeting of 19 November 2012).For the purpose of community consultation on the draft Community Strategic Plan2013-2023, a description of the proposed methodology for targets and measureswill be provided as well possible examples.

The diagram demonstrates the relationships between levels of strategic andoperational monitoring and evaluation currently under consideration as anunderpinning framework.

Research of measures and targets appropriate to aspiration and outcome levels iscurrently underway and has included consideration of relevant SA Strategic Plantargets.

Upcoming Phase Three consultation is proposed to include:

A synopsis of the draft Community Strategic Plan 2013-2023 will be providedas a direct mail out to all ratepayers with a reply paid response section;

advertising in the local newspapers; promotion on Alex FM during the fortnightly Council interview; online using Council’s website and engagement tool – MySay; via Council’s electronic noticeboard in both main offices; and on display hard copies available from Council’s display offices on request.




The proposed framework and timeframe for the Review meet requirements undersection 122 of the Local Government Act 1999 and Council’s Public ConsultationPolicy under section 50 of the Local Government Act 1999.


Within operating budget.

Risk Assessment

This review originally rated high given its legislative origin and the significantimplications if it is not achieved by the required deadline.

By adopting this recommendation to proceed to formal consultation, the risk of notmeeting legislative compliance is reduced to low.

Summary

The process supporting the Draft Community Strategic Plan 2013-23 has seendemonstrable improvement in methodology, approach and engagement since theprevious plan was developed in 2008-09.

Council has endeavoured to address: a tailored re-alignment of Community needs and expectations with

Council operations based on robust community consultation; recommendations from LGA Continuous Improvement Plan Review

particularly regarding measurement and improving standards to be morein step with emerging approaches in strategic planning; and

consistency with the 2011 SA Strategic Plan, Regional DevelopmentAuthority Adelaide Hills, Fleurieu and Kangaroo Island Roadmapdevelopment and consideration of key national influences such asclimate adaption and the intergenerational effects of demographicchange.


The Audit Committee recommends that Council proceed to formalcommunity consultation on the draft Community Strategic Plan 2013-2023and notes that further input from the audit committee will be sought on theproposed targets and measures at their meeting of 2 October 2012.

CARRIED


7. OTHER MATTERS

Nil

8. CONFIDENTIAL REPORTS

Nil

9. CLOSURE

The chair declared the meeting closed at 11.08am

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