Agenda of Finance Policy Committee

Finance Policy Committee 7 February 2017

2.1 Minutes of the Audit and Risk Management Committee - 25 November 2016

TRIM REFERENCE: 2016/2978

AUTHOR: Kathy Woolley, Director Corporate and Commercial Services

EXECUTIVE Summary

The Audit and Risk Management Committee met on 25 November 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

Recommendation

That the minutes of the meeting of the Audit and Risk Management Committee held on 25 November 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

One of the items the Committee has been considering is the amendments to the Committee’s functions which will be altered by the amendments to the Local Government Act 1993. Council is waiting the creation of the Regulations that provide greater guidance on what the NSW Government is requiring the Audit and Risk Management Committee to undertake. The Act has been amended via the Local Government Amendment (Governance and Planning) Act 2016 to include the following broad parameters for the Committee from July 2017:

Part 4A - Internal audit

428A Audit, Risk and Improvement Committee

(1) A council must appoint an Audit, Risk and Improvement Committee.

(2) The Committee must keep under review the following aspects of the council’s operations:

(a) compliance,

(b) risk management,

(c) fraud control,

(d) financial management,

(e) governance,

(f) implementation of the strategic plan, delivery program and strategies,

(g) service reviews,

(h) collection of performance measurement data by the council,

(i) any other matters prescribed by the regulations.

(3) The Committee is also to provide information to the council for the purpose of improving the council’s performance of its functions.

428B Joint internal audit arrangements

A council may enter into an arrangement with another council, or a body prescribed by the regulations for the purposes of this section, to jointly appoint an Audit, Risk and Improvement Committee to exercise functions for more than one council or body.

There will be likely budget implications arising from the amendments to the Act on the functions of Committee.

Attachment

1 Minutes of the Meeting of the Audit and Risk Management Committee held on 25 November 2016

ORANGE CITY COUNCIL

MINUTES OF THE

Audit and Risk Management Committee

HELD IN Committee Room 3, Civic Centre, Byng Street, Orange

ON 25 November 2016

COMMENCING AT 9.15am

1 Introduction

Attendance

Mr P Burgett (Chairperson), Cr J Davis (Mayor), Mr A Fletcher (voting members)

General Manager, Director Corporate and Commercial Services, Manager Financial Services, Internal Auditor (Non-voting members) Manager Administration and Governance (invited attendee).

1.1 Apologies and Leave of Absence

RESOLVED Cr J Davis/Mr A Fletcher

That the apologies be accepted from Cr R Kidd, Cr J Whitton and Mr J O’Malley (External Auditor) for the Audit and Risk Management Committee meeting on 25 November 2016.

1.2 Acknowledgement of Country

1.3 Declaration of pecuniary interests, significant non-pecuniary interests and less than significant non-pecuniary interests

2 Previous Minutes

RESOLVED Mr A Fletcher/Mr P Burgett

That the Minutes of the Meeting of the Audit and Risk Management Committee held on 30 September 2016 (copies of which were circulated to all members) be and are hereby confirmed as a true and accurate record of the proceedings of the Audit and Risk Management Committee meeting held on 30 September 2016.

3 General Reports

3.1 ARMC Action List as at November 2016

TRIM Reference: 2016/2675

RecommendationS Mr A Fletcher/Cr J Davis

1. That the report by the Internal Auditor on ARMC Action List as at November 2016 be acknowledged.

2. That action items marked as completed be deleted from the ARMC Action List.

3. That the verbal report by the Manager Financial Services regarding the 2016 financial year-end statements external audit be noted.

4. That a copy of the External Auditor’s amended conduct of audit report be circulated to members of the Committee out of session.

5. That a copy of the External Auditor’s Management Letter including management comments be circulated to members of the Committee out of session

6. That a meeting of the Chairs of the Audit and Risk Management Committees and the General Managers of Bathurst, Orange and Dubbo Councils be organised through the General Manager’s office.

7. That the 6 joint process improvement initiatives identified in the Action List (Action item number 2016A04.01) be included on the agenda for the meeting between the Chairs of the Audit and Risk Committees and the General Managers of Bathurst, Orange and Dubbo Councils.

3.2 Internal Audit Programme Status Report as at November 2016

TRIM Reference: 2016/2673

Recommendation Cr J Davis/Mr A Fletcher

1. That the allocation of programme tasks for completion by other resources in the Internal Audit program be noted.

2. That the balance of the report be noted.

3.3 Review of Corporate Risk Register

TRIM Reference: 2016/2751

Recommendation Mr A Fletcher/Cr J Davis

1. That the update to the Corporate Risk Register be acknowledged.

2. That an updated copy of the Corporate Risk Register with the inclusion of risk tolerance be circulated to members of the Committee out of session.

3. That the format of future Corporate Risk Registers revise mitigation strategies so they are outcomes focused and tasks are separated into the relevant section of the system.

The Meeting Closed at 9:55AM.

Finance Policy Committee 7 February 2017

3 General Reports

3.1 Statement of Bank Balances as at 6 January 2017

TRIM REFERENCE: 2017/33

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 6 January 2017 the Cash Book Balance was $135,089.53.

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

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.

Policy and Governance Implications

Nil.

Recommendation

That the information provided in the report by the Accounting Officer – Management on the Statement of Bank Balances as at 6 January 2017 be acknowledged.

further considerations

Attachment

1 Bank Reconciliation as at 6 January 2017, D17/1434 ⇩

Finance Policy Committee 7 February 2017

3.2 Request For Financial Assistance

TRIM REFERENCE: 2017/83

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. The report provides details of applications received.

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

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.

Implications in this report

None of the applications are recommended to be funded because there are no uncommitted available funds for the applications attached to the report given both the General Donations and Major Promotions budget have been fully expended.

The Donations Policy is promoted widely as part of the budget process and all applicants (successful or not) who have sought donations in the past couple of years, are individually written to with an invitation for them to make submissions for donations/sponsorships so their allocation is more certain given it is included in the budget processes.

For the first time this year, $2,000 for each Councillor has been reserved to enable Councillors to allocate up to $2,000 each to requests as they arise throughout the year. If any of the attached are supported by a Councillor, an allocation can be made from their remaining allocation. A table is provided below and it will be updated with each report to show how much each Councillor has apportioned to their supported projects.

The overall donations/sponsorship budget for 2016/17 is as follows:

Program	Adopted Budget	Actual/Committed	Remaining balance
General Donations	84,378	84,378*	Nil
Major Promotions	72,127	72,127	Nil

* The allocation of 19 x $100 reserved for school prize giving is accounted for in the actual/committed column of the table. The actual/committed column also includes the Councillor allocation of $24,000 ($2,000 per Councillor) which is available to be allocated by Councillors throughout the year.

Process for the application of the remaining budget allocation

A Council resolution is required to allocate funds to any external entity, including as a donation. Hence, the provision of donations can only occur upon a Councillor’s request being specifically included in a resolution.

Applications are considered against the criteria outlined in the Donations Policy. There is an application form that should be submitted to commence the process of making a donation to another entity. The form contains details that inform Council that the donation aligns with the intentions the Council has established in the Community Strategic Plan.

Where a Councillor has advised they wish to pledge money to a particular cause, the pledge will be noted in the financial assistance report.

The steps to have donations considered are as follows:

1 Applicant completes donations form – available on the Council website or can be sent to the applicant.

2 Application is assessed against the criteria in the Donations Policy and reported to Council in the financial assistance report.

3 Council considers applications at a Council Meeting with Councillors specifically including in a resolution the amount and recipient of any donations supported.

4 In accordance with s356 of the Local Government Act, some donations require advertising and then a report back to Council of any submissions is required (i.e. where the recipient acts for financial benefit for example).

Individual Councillor allocations are as follows:

Councillor	Adopted Budget	Actual/Committed (as resolved)	Remaining balance
Councillor Davis	$2,000	$2,000 – Forbes Flood Appeal	Nil
Councillor Hamling	$2,000	$500 – Canobolas High School $500 – Orange White Ribbon $500 – Clontarf Foundation $500 – Orange Bush Nippers	Nil
Councillor Brown	$2,000	$2,000 - Leukaemia Foundation	Nil
Councillor Duffy	$2,000	$500 – Come Together Choir $500 – Foodcare Orange $500 – Fusion $500 – Carewest Preschool	Nil
Councillor Gander	$2,000	$1,500 – Foodcare Orange $500 - Fusion	Nil
Councillor Gryllis	$2,000	$500 – Canobolas High School $500 – Carewest Preschool $1,000 – Forbes Flood Appeal	Nil
Councillor Jones	$2,000	$2,000 - Riding for the Disabled	Nil
Councillor Kidd	$2,000	$2,000 – Light it Red for Dyslexia	Nil
Councillor Munro	$2,000	$2,000 – Anson St School	Nil
Councillor Taylor	$2,000	$500 – Community Christmas Lunch	$1,500
Councillor Turner	$2,000	$500 – Come Together Choir	$1,500
Councillor Whitton	$2,000	$350 – Riding for the Disabled $500 – Community Christmas Lunch $200 – Tiarah Jade Fisher	$950

Policy and Governance Implications

Nil

Recommendation

1 That a donation of $1,500 to be made to At the Vineyard from Cr Turner’s allocation.

2 That Councillors specify any other donation recipients and the amounts for each donation.

further considerations

SUPPORTING INFORMATION

Kishaya Delaney – Give a Heart to Africa

Kishaya is participating in a not for profit program to teach at a women’s school in Tanzania, and teach local children.

Policy position – Outside scope of Council Policy - $1,000 has been requested.

Orange Elephant Ball

The Batyr organisation focuses on preventative education in the area of youth mental health, and raises money for people living with mental health.

Policy position – 50% up to a maximum of $500. Complies with policy and if budget had been available staff would have recommended approval of the application. $3,228 has been requested for all costs associated with the hire of the Function Centre.

At the Vineyard

A concert will be held at Borrodell and workshops with school children are proposed. The application is seeking $15,000 in total. Half of the funds is to be put towards costs of running the children’s workshops and the other half to the costs of the concert.

Policy position – Maximum of $5,000 in sponsorship category. Complies with the Policy and if budget had been available, staff would have recommended approval of the application.

Councillor Turner has advised of a pledge of $1,500.

Attachments

1 Donation Table, D17/3209 ⇩

2 Kishaya Delaney, IC17/1140 ⇩

3 Orange Elephant Ball, IC17/840 ⇩

4 At the Vineyard application, D17/3859 ⇩

Finance Policy Committee 7 February 2017

3.2 Request For Financial Assistance

Attachment 4 At the Vineyard application

DONATIONS AND GRANTS APPLICATION FORM

Before completing this application, Council’s “Donations and Grants” Strategic Policy (ST029) and Operational Policy (OP012) should be read to ensure that your application will receive consideration by Council. Copies of the “Donations and Grants” policies are available from Council’s website www.orange.nsw.gov.au.

F286 - D16/2

APPLICANT’S DETAILS

Name of organisation, group or person seeking funding At the Vineyard
Address Lake Canobolas Road Orange NSW
Postal Address (if different from above)
Name and position of the contact person
Name	Luisa Machielse
Position
Phone (BH)			Phone (AH)
Phone (M)
Email
What is the legal status of your organisation? (eg Incorporated, Association, etc.) If not for profit please attach evidence – such as charter/constitution showing no personal gain will be available to members, charitable status advice or a statutory declaration Company
Is your group / organisation registered for GST?				Yes No
ABN (if applicable)		50616757129	ACN (if applicable)

BANK ACCOUNT DETAILS for payment

BSB No			Account No
Account Name
Bank

NOTE: An Organisation, Group, Person or other entity is limited to one donation or grant in any financial year.

NOTE: Government Departments or their agencies/representatives are ineligible to receive financial assistance from Council under this policy.

CATEGORY SELECTION - PLEASE TICK ONE CATEGORY ONLY

CATEGORY 1 – RATES REIMBURSEMENT

considered annually

Not for Profit organisations only – applies to general rates only

CATEGORY 2 – SPORTS PARTICPANT PROGRAM considered quarterly – please select one only from the following:
£	Individual Excellence in sporting achievement – up to a maximum of $100 ex GST
£	Regional/State representative – Individual – up to a maximum of $100 ex GST
£	Regional/State representative – Group/team – up to a maximum of $200 ex GST
£	National/International representative – Individual – up to a maximum of $250 ex GST
£	National/International representative – Group/team – up to a maximum of $750 ex GST

CATEGORY 3 – ANNUAL DONATION

considered annually

Annual allocation – up to a maximum of $3,000 (ex GST)

CATEGORY 4 – SPORTS FACILITIES PROGRAM

considered annually

One-off allocation for capital expenditure projects – up to a maximum of $15,000 (ex GST) on a matching funding basis.

CATEGORY 5 – GENERAL REQUESTS considered quarterly – select one only from the following:
£	Excellence in educational – Individual – up to a maximum of $100 ex GST
£	Prize giving – per school/organisation – up to a maximum of $100 ex GST
£	Reduction in Council Venue hire fees (of 50% up to a maximum of $500 ex GST)
£	Miscellaneous – up to a maximum of $500 ex GST
£	Community event – seed funding – event must be managed by a not for profit or community group – up to a maximum of $1,000 ex GST

CATEGORY 6 – EVENT / MAJOR PROMOTION SPONSORSHIP

considered quarterly

Sponsorship – up to a maximum of $5,000 (ex GST) per organisation/event

CATEGORY 7 – HERITAGE ASSISTANCE

considered annually

Heritage Assistance Fund

Description of organisation and its purpose

One of the venues for the national inaugural concert series Charlie Siem and the Omega Ensemble is scheduled for 1 April at Borrodell Vineyard.

Charlie Siem will also be conducting workshops with school children offering them a unique first hand experience with an international musician.

Description of the event/project, where will the event be held, what is the expected impact

The workshops offer a wonderful opportunity for local students to see an international artist and learn from a virtuoso. Council sponsorship of the workshops is sought to the value of $7,500. The organiser will work with the Orange Regional Conservatorium and local schools to develop a program where Charlie Siem works with children to provide guidance in the development of their musical skills.

The Concert will provide an opportunity to see Charlie Siem perform with the Omega Ensemble. Council sponsorship of the concert is sought to a value of $7,500.

This concert is part of a national tour and marketing and advertising will promote the Orang region to a broad audience.

The concert will be held at Borrodell on 1^st April. The workshops will be held in the week prior to the event.

Time frame of your project

Start Date mid January 201

End Date 2 April 2017

Project Costs

Total Project Cost (ex GST)

$ 33,000

Amount seeking from Council in cash (ex GST)

$15,000

Are you seeking any in-kind support from Council? If so, please identify the services required

Use of baby grand piano, assistance with organising promotion of the workshops and concert, assistance in contact lists to organise the concert.

If you are applying under categories 3, 4 or 6, you must complete the following section to illustrate matching $ for $ from your organisation. For other categories a demonstration of your cash contribution would be favourably assessed.

What is the cash amount you/your organisation will be contributing (ex GST)?	$ 18,000
What, if any, is the in-kind amount you/your organisation will be contributing?	$

Are you applying for funding for a capital project (equipment purchase, building or property improvements etc.)?

If yes to this item, you must attach three (3) quotations to this application form

ALIGNMENT TO THE COUNCIL’S STRATEGIC COMMUNITY PLAN

ALL APPLICANTS ARE TO COMPLETE THIS SECTION

Council must align its expenditure to the directions in the Community Strategic Plan (CSP). Copies of the CSP are available at Council offices, Libraries and from the Council website www.orange.nsw.gov.au. The CSP lists the directions and their associated strategies and objectives in detail and should be consulted to ensure your application links to the appropriate element(s). Alignment with Councils CSP will substantially strengthen your application.

Which direction from Council’s Community Strategic Plan (CSP) does your application best align to? – select one from Our City, Our Community, Our Economy or Our Environment.

OUR CITY
£	The Orange community will embrace and support strong, accountable leadership to ensure effective, long term, inclusive planning and decision making within the region
Having consulted the Community Strategic Plan, which strategies in the Our City Section does your project support? List the numbers of the strategies only.		List numbers:

OUR COMMUNITY
£	The Orange community will support and enhance a healthy, safe and liveable city with a range of recreational, cultural and community services to cater for a diverse population.
Having consulted the Community Strategic Plan, which strategies in the Our Community Section does your project support? List the numbers of the strategies only.		List numbers:

OUR ECONOMY
ü	The Orange community will plan and grow an innovative, diverse and balanced economy which protecting the character of the City and the region
Having consulted the Community Strategic Plan, which strategies in the Our Economy Section does your project support? List the numbers of the strategies only.		List numbers: 11.1

OUR ENVIRONMENT
£	The Orange community will pursue the balance of growth and development and the protect and enhancement of the built and natural environment while recognising climate impact and the diverse needs of the urban, village and rural communities
Having consulted the Community Strategic Plan, which strategies in the Our Environment Section does your project support? List the numbers of the strategies only.		List numbers:

Are you using any local businesses?

This will assist in demonstrating the local benefit of your project to other members of our community. Using local services will significantly strengthen your application.

If an acquittal is required you will need to confirm the level of expenditure to local businesses compared to the level you identify here and also provide evidence that payment has been made to these businesses.

Engaging with local businesses will assist in a favourable assessment of your application.

Business name	Services Provided	Estimated amount to be paid to them (Ex GST)
Kennards Hire	Television at launch event	$200
Orange City Council	Use of Baby Grand	$0 – although this would have cost $4,000 if had to be hired
Marquee hire	Hire	$4,500
Advertising	Promotions	$2,000
Sound and stage	Hire	$2,000
Buses	Hire	$1000
Toilets	Hire	$500
Printing	Program printing	$500

Will your project create any jobs – either short or long term?
Estimated long term full time jobs to be created	0
Estimated short term (up to 6 months) jobs to be created		1

DECLARATION

ALL APPLICANTS ARE TO COMPLETE THIS SECTION

On behalf of At the Vineyard

I declare that the information provided above is complete and correct

ü	I have read and understood Council’s “Donations and Grants” Strategic Policy (ST029) and Operational Policy (OP012).

Signed

Luisa Machielse

___________________________________________________________________________

Print name

___________________________________________________________________________

Position in organisation

Owner______________________________________________________________________

Date 26 January 2017

___________________________________________________________________________

THE INFORMATION YOU PROVIDE IS PERSONAL INFORMATION FOR THE PURPOSES OF THE PRIVACY AND PERSONAL INFORMATION PROTECTION ACT 1998. THE SUPPLY OF THE INFORMATION BY YOU IS VOLUNTARY. IF YOU CANNOT PROVIDE OR DO NOT WISH TO PROVIDE THE INFORMATION SOUGHT, YOUR APPLICATION MAY BE UNABLE TO BE PROCESSED. THIS PERSONAL INFORMATION IS BEING COLLECTED FROM YOU IN ORDER TO PROCESS YOUR APPLICATION.

No	Applicant	Amount Sought	Policy Position	Purpose	Comment	Recom-mended	To be advertised
A.1	Kishaya Delaney	$1,000	General Request – Up to a maximum of $500	To teach women and local children in Tanzania	Policy Applied	No	No
A.2	Orange Elephant Ball	$3,228	Reduction in Council Hire Fees – 50% up to a maximum of $500	Charity Ball being held at the Orange Function Centre for preventative education for youth mental health.	Policy Applied	No	No
A.3	At the Vineyard	$1,500	General Request – policy position would be up to $5,000 if funds were still available	Concert and workshops for children who play string instruments	Policy Applied	No	Yes