ORANGE CITY COUNCIL

Finance Policy Committee

 

Agenda

 

3 April 2018

 

 

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, 3 April 2018.

 

 

Garry Styles

General Manager

 

For apologies please contact Michelle Catlin on 6393 8246.

    

 


Finance Policy Committee                                                                              3 April 2018

Agenda

  

1                Introduction.. 3

1.1            Declaration of pecuniary interests, significant non-pecuniary interests and less than significant non-pecuniary interests. 3

2                Committee Minutes. 5

2.1            Audit and Risk Management Committee meeting of 12 March 2018. 5

 


Finance Policy Committee                                                                              3 April 2018

 

1       Introduction

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

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.

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.

 


Finance Policy Committee                                                                              3 April 2018

 

 

2       Committee Minutes

2.1     Audit and Risk Management Committee meeting of 12 March 2018

RECORD NUMBER:       2018/706

AUTHOR:                       Nick Redmond, Manager Corporate and Community Relations    

 

 

EXECUTIVE Summary

The Audit and Risk Management Committee (ARMC) met on 12 March 2018 and the recommendations from that meeting are presented 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

Nil

Policy and Governance Implications

Nil

 

Recommendation

1    That Council acknowledge the reports presented to the Audit and Risk Management Committee at its meeting of 12 March 2018.

2    That Council determine the recommendations 3.1, 3.4, 3.7, 3.8, 3.9, 3.10, 3.11 and 3.12 made by the Audit and Risk Management Committee.

3    That the remainder of the minutes of the Audit and Risk Management Committee meeting held on 12 March 2018 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.

 

Attachments

1        Minutes of the Meeting of the Audit and Risk Management Committee held on 12 March 2018

2        ARMC 12 March 2018 Agenda, D18/15275

 



ORANGE CITY COUNCIL

MINUTES OF THE

Audit and Risk Management Committee

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

ON 12 March 2018

COMMENCING AT 9.32AM


 1      Introduction

Attendance

Voting Members: Mr P Burgett (Chairperson), Mr B Gillooly AM, Cr R Kidd (Mayor), Cr J McRae (Deputy Mayor)

Non-Voting Attendees: General Manager, Acting Director Corporate and Commercial Services, Manager Financial Services, Internal Auditor

Invited: Manager Administration and Governance, Mr J O’Malley Audit Partner (Intentus Chartered Accountants) – Agenda Items 3.2 and 3.3, Karen Taylor (Director Financial Audit Services - Audit Office of NSW) – Agenda Items 3.2 and 3.3

 

1.1     Apologies and Leave of Absence

Nil

 

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

Nil


 

3       General Reports

3.1     Audit and Risk Management Committee Charter

TRIM Reference:        2018/142

Recommendation                                                                        Cr R Kidd/ B Gillooly AM

1    That the Audit and Risk Management Committee Charter be amended as follows:

  • The date of this version of the Charter should be March 2018.
  • Amend clause 3.2.2 to read “members” in place of “attendee”.
  • Clause 7.3.(e) delete dot point number 3. The appointment of the Auditor General of NSW as Council’s auditor is now mandatory.
  • Clause 7.3.(f) delete dot point number 5.
  • The date of the current version of the Internal Audit Activity Charter is March 2018.

2    That the Audit and Risk Management Committee endorse and recommend to Council the adoption of the Audit and Risk Management Committee Charter, subject to amendments proposed by the Committee.

3    That the Committee note the Internal Audit Activity Operational Policy.

 

 

The Mayor, Cr R Kidd left the meeting, the time being 9:45 AM.

 

The external auditors, Mr J O’Malley (Intentus Chartered Accountants) and Ms K Taylor (Audit Office of NSW) dialed into the meeting the time being 9:58 AM and 10:00AM respectively.

3.2     Audit Office Client Service Plan 2017/18

TRIM Reference:        2018/218

Recommendation                                                                      B Gillooly AM/Cr J McRae

That the Audit and Risk Management Committee note the Audit Office of New South Wales Client Service Plan.

 

 

3.3     Management Letter - Final - 2016/2017

TRIM Reference:        2018/451

Recommendation                                                                      B Gillooly AM/Cr J McRae

That the Audit and Risk Management Committee note the final Management letter for the 2016/2017 external audit.

 

 

The external auditors, Mr J O’Malley (Intentus Chartered Accountants) and Ms K Taylor (Audit Office of NSW) left the meeting, the time being 10:38AM

 

Cr R Kidd returned to the meeting at 10:46AM.

3.4     Corporate Risk Register Review

TRIM Reference:        2018/525

Recommendation                                                                      Cr J McRae/B Gillooly AM

1        That the review of the Corporate Risk Register be acknowledged.

2        That a report be submitted to the Committee highlighting an assessment of the following   risks, related risk mitigation strategies and the status of scheduled tasks:

a               risk number 5421 regarding legacy issues arising from mine subsidence including the risk of contamination of creeks and impact of re-zoning of land by Council.

b               risk number 5422 regarding the Aquatic centre, including an explanation on the procedures around the regular maintenance of facilities.  

c                risk number 5418  - waste management.

d               risk number 10703, should include the risks associated with changes to government funding on childcare services and Companion Animals Act including operation of the animal pound.

e               The impact of  fire retardant at the Orange airport

 

3        That the risk relating to Council merger proposal be archived for now.

4        That the annual and on-going tasks be timetabled into the Compliance Activities schedule reported to each meeting of the Audit and Risk Management Committee.

 

 

3.5     Compliance Activities - 2017/18 Financial Year - July 2017 to February 2018 Update

TRIM Reference:        2018/531

Recommendation                                                                         Cr J McRae/B Gillooly AM

That the update on compliance activities be acknowledged.

 

 

3.6     Process Improvements - 2017/18 Financial Year - July 2017 to February 2018 Update

TRIM Reference:        2018/521

Recommendation                                                                           B Gillooly AM/Cr R Kidd

That the report on Performance Improvements update be acknowledged.

 

 


 

3.7     Internal Audit Review Plan - Section 64/94 Contributions

TRIM Reference:        2018/532

Recommendation                                                                        B Gillooly AM/Cr R Kidd

1               That the updated internal audit review plan on payroll transactions be approved.

2               That the internal audit review report be submitted to the July 2018 meeting.

 

 

3.8     Internal Audit Review Plan - Payroll Transactions

TRIM Reference:        2018/541

Recommendation                                                                              Cr J McRae/Cr R Kidd

1        That the updated internal audit review plan on payroll transactions be approved.

2        That the internal audit review report be submitted to the July 2018 meeting.

 

 

3.9     ARMC Annual report for the year ended December 2017

TRIM Reference:        2018/539

Recommendation                                                                     B Gillooly AM/Cr J McRae

1        That section 3.2 of the report be corrected to properly reflect the post-nominal title for Mr Bill Gillooly AM – that is, by including the designatory letters “AM”.

2        That the ARMC Chair’s ARMC Annual report be endorsed and referred to Council.

 

 

3.10   3 Year Internal Audit Programme Status Report as at February 2018

TRIM Reference:        2018/478

Recommendation                                                                         Cr R Kidd/B Gillooly AM

1        That the updated delivery timetable be acknowledged.

2        That the report by the Internal Auditor on internal audit programme status report as at February 2018 be noted.

3        That the Committee endorse the postponement of audit of contaminated lands to the 2018/19 financial year.

 

 


 

 

3.11   ARMC Action List - Item 2017A06.10 - Internal Audit Programme Update

TRIM Reference:        2018/143

Recommendation                                                                              Cr J McRae/Cr R Kidd

1        That the audit of Airport Security processes risk mitigation strategies as identified in the corporate risks register be considered for inclusion in the internal audit program to be completed by June 2019.

2        That the report be noted.

 

 

3.12   ARMC Action List as at March 2018

TRIM Reference:        2018/144

Recommendation                                                                              Cr R Kidd/Cr J McRae

1        That the report by the Internal Auditor on ARMC Action List as at March 2018 be acknowledged.

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

3        That action item # 2014A01.00 - schedule of proposed meeting dates for the         remainder of the 2018 calendar year be amended to 20 July 2018, 28 September 2018 and 23 November 2018.

4        That action item number 2016A04.01 and item number 2017A06.07 be merged into      one action item showing the 3 projects agreed to be undertaken by the General   Managers at the most recent meeting of the BOD Alliance General Managers and          ARMC Chairs. (i) Insurance to be coordinated by Bathurst Regional Council. (ii)         Asbestos management to be coordinated by Orange City Council. (iii) Calamitous          events management to be coordinated by Dubbo Regional Council.

5        That action item number 2016A11.04 be marked as complete and deleted, noting that a relevant report was submitted to the March 2018 meeting.

6        That the Aquatic Centre be added to the list of Council sites to be toured by the Committee in the future.

7        That in response to the Internal Auditor’s advice that some task completion dates had    not been updated for this meeting’s report, the ARMC requested all target dates be   reviewed and updated with a revised ARMC Action List circulated to members of   the    Committee out of session including an updated progress report on the asbestos      management project.

8        That an update on the outcome of the BOD Alliance Internal Audit Quality Assurance     review be provided to the next meeting.

 

 

 

 

 

3.13   ARMC Action List - Item No 2017A03.01 - Cyber security and privacy risks

TRIM Reference:        2018/548

Recommendation                                                                      Cr J McRae/B Gillooly AM

That the report on cyber security and privacy risks be acknowledged.

 

 

 3.14  OTHER BUSINESS

VERBAL RePORT BY THE CHAIR

Recommendation                                                                     B Gillooly AM/Cr J McRae

That the Committee note that Council has resolved to appoint Mr P Burgett as the Chair following the Committee’s recommendation passed at the Audit and Risk Management Committee’s induction meeting held on 12 December 2017.

 

The Meeting Closed at 11.58AM.

 

 

 


Finance Policy Committee                                                                                  3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                                        3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                  3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                                        3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                  3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                                        3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                                        3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                  3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                                        3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                  3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                                        3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                                        3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                                        3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                  3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                                        3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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Finance Policy Committee                                                                                  3 April 2018

2.1                       Audit and Risk Management Committee meeting of 12 March 2018

Attachment 1      ARMC 12 March 2018 Agenda

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