ORANGE CITY COUNCIL
Finance Policy Committee
Agenda
2 August 2016
Notice is hereby given, in accordance with the provisions of the Local Government Act 1993 that a Finance Policy Committee meeting of ORANGE CITY COUNCIL will be held in the Council Chamber, Civic Centre, Byng Street, Orange on Tuesday, 2 August 2016.
Garry Styles
General Manager
For apologies please contact Michelle Catlin on 6393 8246.
Finance Policy Committee 2 August 2016
2.1 Minutes of the Audit and Risk Management Committee - 24 June 2016
3.1 Statement of Bank Balances as at 30 June 2016
3.2 Request for Financial Assistance
The provisions of Chapter 14 of the Local Government Act, 1993 (the Act) regulate the way in which Councillors and designated staff of Council conduct themselves to ensure that there is no conflict between their private interests and their public role.
The Act prescribes that where a member of Council (or a Committee of Council) has a direct or indirect financial (pecuniary) interest in a matter to be considered at a meeting of the Council (or Committee), that interest must be disclosed as soon as practicable after the start of the meeting and the reasons given for declaring such interest.
As members are aware, the provisions of the Local Government Act restrict any member who has declared a pecuniary interest in any matter from participating in the discussion or voting on that matter, and requires that member to vacate the Chamber.
Council’s Code of Conduct provides that if members have a non-pecuniary conflict of interest, the nature of the conflict must be disclosed. The Code of Conduct also provides for a number of ways in which a member may manage non pecuniary conflicts of interest.
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Recommendation It is recommended that Committee Members now disclose any conflicts of interest in matters under consideration by the Finance Policy Committee at this meeting. |
TRIM REFERENCE: 2016/1581
AUTHOR: Kathy Woolley, Director Corporate and Commercial Services
EXECUTIVE Summary
The Audit and Risk Management Committee (ARMC) met on 24 June 2016 and the minutes of that meeting are provided to the Finance Policy Committee for adoption.
Link To Delivery/OPerational Plan
The recommendation in this report relates to the Delivery/Operational Plan strategy “1.3 Our City - Ensure a robust framework that supports the community’s and Council’s current and evolving activities, services and functions”.
Financial Implications
Council has been advised that as a council included in the NSW Government’s merger proposals under consideration by the Office of Local Government since referral on 6 January 2016, Council must comply with the merger proposal period guidelines issued under S23A of the Local Government Act 1993.
The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.
Any expenditure outside the adopted budget requires the identification of clear and compelling grounds and must be approved by Council at a meeting that is open to the public. The guidelines indicate the resolution of Council for increased expenditure must specify the reasons why the expenditure is required and warranted.
If increased expenditure is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, Council is required to exhibit the increase to the budget and consider comments received.
Council must also avoid entering into contracts or undertakings where expenditure or revenue is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, unless the contract or undertaking is as a result of a decision or procurement process commenced prior to the merger proposal period or where entering into a contract or undertaking is reasonably necessary for the purposes of meeting the ongoing service delivery commitments of the Council or was previously approved in the Council’s Delivery/Operational Plan.
Policy and Governance Implications
Nil
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1 That the Council endorse the preparation of a brief for an external audit of the Internal Audit program and Audit and Risk Management Committee performance, but that the General Manager discuss with the General Managers of Bathurst Regional Council and Western Plains Regional Council the deferment of the project until the merger decisions are made and proposed amendments to the Local Government Act regarding internal audit are determined. 2 That the balance of the minutes of the meeting of the Audit and Risk Management Committee held on 24 June 2016 be adopted. |
further considerations
Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.
SUPPORTING INFORMATION
External review of internal audit program
The Committee makes a recommendation on an external review of the internal audit program with members of the Committee to provide input into the brief for the commissioning of an external entity to complete the review. It is timely to assess the outcomes of the shared internal audit program between Bathurst Regional Council and Western Plains Regional Council as it has been in operation since 2009. Currently the three councils each has its own Audit and Risk Management Committee with some common independent members. There is one staff member attending to the internal audit program shared by the three councils equally.
The cost of a review is yet to be determined and is not budgeted at this stage. A budget adjustment through the quarterly review process can be undertaken once the brief and quotations are sought for the works.
However, the timing of the review, if approved by Council, should countenance the impact of mergers and the proposed changes to the Local Government Act that will have a large impact on the internal audit function.
There would be significant merit in assessing the internal audit program and the Audit and Risk Committees and aims post-merger decisions being made. This would enable all former councils internal audit program and committees to be assessed if mergers were undertaken. This would be very useful information to assist in the formation of new Committees and the drafting of new internal audit programs should the mergers occur.
There are also significant changes proposed for the internal audit functions, and in particular the Committees’ tasks, if the NSW Government’s proposed changes to the Local Government Act are adopted. Broad changes to the functions and tasks to be assigned to the Audit and Risk Management Committees are included in these proposed amendments and these changes would require the internal audit program to be significantly altered. The proposed changes would require Council to review the resourcing in terms of remuneration to committee members plus the staffing allocation.
While a brief for an external review can be prepared, it is recommended that the review not commence until the merger decisions have been made and the Local Government Act amendments relating to internal audit have been determined.
Mr Fluffy information provision
The Committee has recommended that Council provide information on this matter to the public.
Council has issued a number of press releases on this topic and plans to issue another release before the current inspection registration processes close on 1 August 2016. Materials have also already been published via Council’s social media services. Additional information will be provided on the issue via the social media tools. Printed material has been available at the Customer Service counter for some time.
Previous promotions have seen three articles on the Mr Fluffy issues included in the local newspaper since February 2016. The NSW Fair Trading loose fill asbestos implementation taskforce held a community forum in Orange on 2 March, and a radio promotion has been undertaken outlining the Government’s program.
The taskforce has offered an inspection program since June 2015. 596 Orange homes have registered for testing and 350 homes have been tested. All of Council’s properties have been registered.
Attachment
1 Minutes of the Meeting of the Audit and Risk Management Committee held on 24 June 2016
ORANGE CITY COUNCIL
MINUTES OF THE
Audit and Risk Management Committee
HELD IN CoUNCILLORS WORK Room, Civic Centre, Byng Street, Orange
ON 24 June 2016
COMMENCING AT 9.08am
1 Introduction
Attendance
Mr P Burgett (Chairperson), Cr C Gryllis (Deputy Mayor), Mr A Fletcher, General Manager, Manager Administration and Governance, Manager Financial Services, Internal Auditor
1.1 Apologies and Leave of Absence
1.2 Acknowledgement of Country
1.3 Declaration of pecuniary interests, significant non-pecuniary interests and less than significant non-pecuniary interests
3 Presentations
4 General Reports
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TRIM Reference: 2016/989 |
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RECOMMENDATION Mr A Fletcher/Cr C Gryllis That the report by the Internal Auditor on BOD Joint Process Improvement Initiatives Process be acknowledged.
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TRIM Reference: 2016/1339 |
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RECOMMENDATION Cr C Gryllis/Mr A Fletcher That the draft Emergency Procedures and Business Continuity Plan be noted.
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TRIM Reference: 2016/630 |
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RECOMMENDATION Mr P Burgett/Cr C Gryllis That the report by the ARMC Chairperson on ARMC self-assessment be acknowledged.
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Other business
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Recommendation Cr C Gryllis/Mr A Fletcher That a report be provided to the Committee on the court case involving Orange City Council’s consideration of a boutique hotel development at 62 Byng Street covering among other matters, the cost and resources involved in defending Council’s refusal of the application against the recommendation of planning staff.
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The Meeting Closed at 10:20AM.
TRIM REFERENCE: 2016/1626
AUTHOR: Kim Thompson, Accounting Officer - Management
EXECUTIVE Summary
Council operates one Bank Account and is required to carry out a Bank Reconciliation at the end of each month. As at 30 June 2016 the Cash Book Balance was $1,384,677.84.
Link To Delivery/OPerational Plan
The recommendation in this report relates to the Delivery/Operational Plan strategy “1.2 Our City - Information and advice provided for the decision-making process will be succinct, reasoned, accurate, timely and balanced”.
Financial Implications
Council has been advised that as a council included in the NSW Government’s merger proposals under consideration by the Office of Local Government since referral on 6 January 2016, Council must comply with the merger proposal period guidelines issued under S23A of the Local Government Act 1993.
The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.
Any expenditure outside the adopted budget requires the identification of clear and compelling grounds and must be approved by Council at a meeting that is open to the public. The guidelines indicate the resolution of Council for increased expenditure must specify the reasons why the expenditure is required and warranted.
If increased expenditure is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, Council is required to exhibit the increase to the budget and consider comments received.
Council must also avoid entering into contracts or undertakings where expenditure or revenue is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, unless the contract or undertaking is as a result of a decision or procurement process commenced prior to the merger proposal period or where entering into a contract or undertaking is reasonably necessary for the purposes of meeting the ongoing service delivery commitments of the Council or was previously approved in the Council’s Delivery/Operational Plan.
Policy and Governance Implications
Nil
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That the information provided in the report by the Accounting Officer – Management on the Statement of Bank Balances as at 30 June 2016 be acknowledged. |
further considerations
Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.
1 Bank Reconciliation as at 30 June 2016, D16/29061⇩
Finance Policy Committee 2 August 2016
3.1 Statement of Bank Balances as at 30 June 2016
Attachment 1 Bank Reconciliation as at 30 June 2016
TRIM REFERENCE: 2016/1641
AUTHOR: Josie Sanders, Management Accountant
EXECUTIVE Summary
Council is in receipt of requests for financial assistance under section 356 of the Local Government Act 1993.
Link To Delivery/OPerational Plan
The recommendation in this report relates to the Delivery/Operational Plan strategy “3.3 Our City – Recognise that members of the community will take different leadership pathways, the Council will support this growth and development through appropriate activities, initiatives and assistance”.
Financial Implications
Council has been advised that as a council included in the NSW Government’s merger proposals under consideration by the Office of Local Government since referral on 6 January 2016, Council must comply with the merger proposal period guidelines issued under S23A of the Local Government Act 1993.
The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.
Any expenditure outside the adopted budget requires the identification of clear and compelling grounds and must be approved by Council at a meeting that is open to the public. The guidelines indicate the resolution of Council for increased expenditure must specify the reasons why the expenditure is required and warranted.
If increased expenditure is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, Council is required to exhibit the increase to the budget and consider comments received.
Council must also avoid entering into contracts or undertakings where expenditure or revenue is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, unless the contract or undertaking is as a result of a decision or procurement process commenced prior to the merger proposal period or where entering into a contract or undertaking is reasonably necessary for the purposes of meeting the ongoing service delivery commitments of the Council or was previously approved in the Council’s Delivery/Operational Plan.
Implications in this Report
The requests in this report total $7,669.15 however the General Donations budget has a remaining balance of $4,416.50. If Council resolves as per the recommendations of this report the Donations will be allocated on a first-in-first-served basis based on when each application was received, so that only the remaining balance of the General Donations budget is allocated. Should the Councillors wish to donate the full amounts requested, then the additional funding will need to be sought and resolved from the Councillor’s donation allocations.
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Program |
Adopted Budget |
Actual/Committed |
Remaining balance |
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General Donations |
84,378 |
84,378* |
Nil |
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Major Promotions |
72,127 |
72,127 |
Nil |
*Note: This amount includes the Councillor budget of $24,000 ($2,000 per Councillor) which is available to be allocated by Councillors throughout the year. Each quarterly report will include a table with the balance of the allocation remaining unspent for each councillor. Also includes 19 x $100 reserved for school prize giving.
Policy and Governance Implications
Nil
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1 That Council approve the requests from Catherine McAuley School to the amount of $1,169.15, Orange Business Chamber to the amount of $3,000.00, Parkrun to the amount of $247.35, and decline the request from Orange District Cricket Association as the General Donations budget is fully allocated. 2 That Council decline the request from Event Trekkerz, and note the in-kind support already provided and on offer. |
further considerations
Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.
SUPPORTING INFORMATION
In relation to the request from Event Trekkerz, this event is a ticketed event with a maximum of 2,000 tickets being made available. Council staff have already provided in-kind event management support, together with assisting with the promotion of the event through avenues such as Council’s social media. Council’s marquee has also been made available should it be required. Council has already declined their first request at the Finance Policy Committee meeting held 5 July 2016 for Sponsorship $4,596, as the Major Promotions budget had been fully expended.
As identified in the financial implications, given the General Donations budget will be fully expended, only $247.35 is available for the Parkrun event (request was for $3000). The $500 request from the Orange District Cricket Association has been also been declined.
1 Donation Tables, D16/31492⇩
2 Catherine McAuley School, IC16/9447⇩
3 Orange Business Chamber, IC16/9568⇩
4 Parkrun Australia, IC16/9622⇩
5 Orange District Junior Cricket Association, D16/32701⇩
6 Event Trekkerz, IC16/10536⇩
Finance Policy Committee 2 August 2016
3.2 Request for Financial Assistance
Attachment 1 Donation Tables
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No |
Applicant |
Amount Sought |
Policy Position |
Purpose |
Comment |
Recom-mended |
To be advertised |
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A.1
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Catherine McAuley School |
$1,169.15 |
Annual Allocation – Up to a max of $3,000 |
Family Aquatic Centre Pool Pass to be used for fund raising at school. |
Policy Applied |
Yes |
No |
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A.2 |
Orange Business Chamber |
$3,000
|
Annual Allocation – Up to a max of $3,000 |
To facilitate business breakfasts, redevelop Cambers website, provide business support, and Banjo Business Awards. |
Policy Applied |
Yes |
No |
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A.3 |
Parkrun Australia |
$3,000 |
Annual Allocation – Up to a max of $3,000 |
To conduct weekly 5km runs at Gosling Creek to provide a free, feel good local event. |
Policy Applied |
Yes |
Yes |
|
A.4 |
Orange District Junior Cricket Association |
$500 |
Miscellaneous - Up to a max of $500 |
To assist costs of uniforms to fields a second U14 rep team. |
Policy Applied |
Yes |
No |
|
A.5 |
Event Trekkerz |
$500 |
Reduction in Council venue hire fees (50% up to a max of $500) |
The Live Life Live Festival to be held in the Northcourt 24 Sept 2016. |
This event is a ticketed event, and Council staff has already provided in-kind event management support. |
No |
Yes |
3.2 Request for Financial Assistance
Attachment 2 Catherine McAuley School
3.2 Request for Financial Assistance
Attachment 3 Orange Business Chamber
3.2 Request for Financial Assistance
Attachment 4 Parkrun Australia
3.2 Request for Financial Assistance
Attachment 5 Orange District Junior Cricket Association
