ORANGE CITY COUNCIL
Finance Policy Committee
Agenda
2 May 2017
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 May 2017.
Garry Styles
General Manager
For apologies please contact Michelle Catlin on 6393 8246.
Finance Policy Committee 2 May 2017
2.1 Minutes of the Audit and Risk Management Committee - 24 March 2017
3.1 Statement of Bank Balances as at 31 March 2017
3.2 Request for Financial Assistance
Finance Policy Committee 2 May 2017
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. |
TRIM REFERENCE: 2017/758
AUTHOR: Kathy Woolley, Director Corporate and Commercial Services
EXECUTIVE Summary
The Audit and Risk Management Committee (ARMC) met on 24 March 2017 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
If an external resource is to be engaged to review the internal audit function across the three councils who share the internal audit function, the ARMC Chairperson has indicated the costs would be in the order of $10,000 per Council for a total of $30,000. There is no current allocation of this amount in the budget so this money would have to be allocated in a quarterly review. The ARMC Chairperson is to finalise the brief and present it to the three General Managers prior to the commissioning of this task. If an external resource is to be engaged as suggested by the Committee to undertake a review of Council’s Risk Management system mitigation strategies, additional funds will be required.
Policy and Governance Implications
Nil
|
1 That Council note the proposed external review of the internal audit function will be considered by the General Managers in Bathurst, Orange and Dubbo Councils, before the review is commissioned with a quarterly budget adjustment to be made to allocate funding to the item if required. 2 That in regard to item 3.7 of the draft ARMC meeting minutes of 24 March 2017, the item concerning the review of the implementation of the mitigation strategies in the Corporate Risk Register be undertaken by staff, not an external resource, given: a the level of knowledge across the entire Council required to undertake such a review b the work already done by staff who are Council’s risk experts on this specific task c the costs associated with bringing in an external resource in dollar terms plus time staff will have to dedicate to manage the process d That the ARMC Committee members be given an opportunity to comment on the methodology to be undertaken for the mitigation strategy review for the General Manager’s consideration in finalising the scope of the project. 3 That the balance of the minutes of the meeting of the Audit and Risk Management Committee held on 24 March 2017 be adopted. 4 That the Annual Report of the Audit and Risk Management Committee for year to December 2016 from the Chairperson 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.
SUPPORTING INFORMATION
The Committee received a report covering the Audit Office’s proposed client service plan and an update on expectations arising from the appointment of the Audit Office as the Council’s external auditor. Intentus has been subcontracted to undertake the audit.
The minutes illustrate two comments suggesting additional resourcing for the Internal Audit function.
1 The first is a component in the Chairperson’s update on the joint meeting of the Bathurst, Orange and Dubbo Councils regarding their shared Internal Audit project. At this meeting the discussion included possible consideration of an external resource to undertake a review of the internal audit function across the three councils. It is suggested by the ARMC Chairperson that the cost associated with this review would be in the order of $10,000 per Council. There is no current budget allocation for this item and it would have to be the subject of a quarterly budget adjustment. As the Committee is not empowered to allocate funding, the minutes suggestion that an agreement was made on the allocation of funds is unable to be accepted. Hence, the recommendation is that, subject to the approval of the scope of the works, the costs associated with the matter would require a quarterly adjustment to the budget to allocate funds to this exercise.
2 The second comment is implied in item 3.7 as the minutes indicate the Committee is recommending the outsourcing of a review of the achievement of the Council’s Corporate Risk Register mitigation strategies implementation within the Enterprise Risk Management System. The Committee received an updated Corporate Risk Register at a prior meeting held in November 2016 and were advised that the mitigation strategies had been reviewed and any that had not been actioned were reclassified as tasks to be done. This action occurred as a direct request from the Committee. The Manager Administration and Governance is responsible for managing the Enterprise Risk environment for Council. Individual risks are “owned” by other staff and they are responsible for implementing the mitigation strategies on their risk issues. The Manager Administration and Governance has a broad view across the Council’s functions which is not easily learnt by an external resource and given the recent review of the strategies the Manager did to provide the Risk Register update in November 2016, it is considered the most effective cost management and efficient approach is for the Manager to be charged with the further review of the implementation of the mitigation strategies. In essence, the Committee is seeking assurance that the council is managing its risks via the mitigation strategies and that these strategies have actually been implemented. Other compliance based checks of a similar nature are undertaken by staff.
The minutes also suggest Council should consider increasing the budget for internal audit. Council is advised that there has been no increase in the internal audit program in the draft Delivery/Operational Plan for 2017/18 – 2020/21 that Council has been discussing at the three recent budget briefing sessions. There does not seem to be an immediate need for this to be increased because:
· The Committee received the presentation from an Audit Office session held in March 2017 which confirms that the Office of Local Government will not enact the changes to the Local Government Act regarding internal audit committees and their functions until after the next general local government election in 2020. Therefore the committee and the internal audit program can continue to function as it currently is.
· The proposed external review of the audit function is yet to be scoped and costed and until these elements are known an assessment of the affordability assessment cannot be undertaken.
The Committee also considered the rolling 3 year internal audit program including the list of other process improvement initiatives and other management representations as necessary to give the Committee an insight on the Council’s governance and risk management framework.
The Committee also considered the ARMC Chair’s annual report which shows the Committee’s achievements for the year ended 31 December 2017 and recommended that it be referred to Council. This report is attached.
Attachments
1 Minutes of the Meeting of the Audit and Risk Management Committee held on 24 March 2017
2 Audit and Risk Management Committee Chair Annual report - year ended 31 December 2016, D17/18505⇩
ORANGE CITY COUNCIL
MINUTES OF THE
Audit and Risk Management Committee
HELD IN THE GENERAL MANAGER’S OFFICE, Civic Centre, Byng Street, Orange
ON 24 March 2017
COMMENCING AT 9:34am
1 Introduction
Attendance
Voting Members: Mr P Burgett (Chairperson), Cr J Davis (Mayor), Cr J Whitton, Mr A Fletcher,
Non-Voting Members: Acting General Manager (Mr Chris Devitt) , Director Corporate and Commercial Services, Internal Auditor
Invited: External Auditors – Mr J O’Malley Audit Partner (Intentus Chartered Accountants), Mr D Klein Director Financial Audit Services (Audit Office of NSW) via teleconference (for item 3.5 only), Manager Administration and Governance (for items 1 to 3.2), Manager Human Resources (for item 3.3 only).
1.1 Apologies and Leave of Absence
|
RESOLVED Cr J Davis/Cr J Whitton That the apologies be accepted from Cr R Kidd and the General Manager for the Audit and Risk Management Committee meeting on 24 March 2017. |
1.2 Acknowledgement of Country
1.3 Declaration of pecuniary interests, significant non-pecuniary interests and less than significant non-pecuniary interests
Cr J Whitton declared a non-pecuniary interest in item 3.6 as he is a practitioner in cyber security and information technology services and that that his business dealt with offering solutions to the risks raised by this issue.
MATTER ARISING
The Chair gave an update on the results of a meeting between the General Managers of the Bathrust Orange Dubbo (BOD) Alliance member councils and their Audit and Risk Management Committee Chairpersons, noting the Dubbo Chair was absent. The group resolved that each of the 3 Councils proceed to purchase ACL software. The meeting also dicussed the review of the effectiveness of the internal audit function and resourcing of the internal audit function was also identified along with a consideration by the Councils of funding these matters in 2017/18 budget considerations.
3 General Reports
|
TRIM Reference: 2017/310 |
|
Recommendation Mr A Fletcher/Cr J Whitton That the Audit of the Asbestos Management Plan be noted.
|
The Manager Administration and Governance left the meeting with the time being 10:07AM.
The Manager Human Resources joined the meeting with the time being 10:08AM.
|
TRIM Reference: 2017/394 |
|
Recommendation Mr A Fletcher/Cr J Davis That the Internal Audit Review – Work Health and Safety be noted.
|
The Manager Human Resources left the meeting with the time being 10:24AM.
|
TRIM Reference: 2017/477 |
|
Recommendation Mr A Fletcher/Cr J Davis That the Committee note the update from the Audit Office for Audit and Risk Management Committees.
|
Mr David Klein (Director Financial Audit Services – Audit Office of NSW) joined the meeting via teleconference with the time being 10:45AM
Mr David Klein (Director Financial Audit Services – Audit Office of NSW) left the meeting with the time being 11:07AM
The Acting General Manager (Mr C Devitt) left the meeting with the time being 11:30AM.
The Meeting Closed at 12:30Pm.
Finance Policy Committee 2 May 2017
2.1 Minutes of the Audit and Risk Management Committee - 24 March 2017
Attachment 1 Audit and Risk Management Committee Chair Annual report - year ended 31 December 2016
Orange City Council
Audit and Risk Management Committee
Annual Report
For Year Ended 31 December 2016
CONTENTS
1.0 Introduction
2.0 ARMC Purpose
3.0 Membership and Meetings
3.1 Management Meetings
3.2 ARMC Meeting Attendance
4.0 ARMC Charter
5.0 Internal Audit
5.1 Internal Audit appointment
5.2 Internal Audit Performance
5.3 Internal Audit Plan
5.4 Internal Audit Assignments
5.5 Limitation on the Internal Auditor
5.6 Management Responses
5.7 Internal Audit Resource Distribution
6.0 Other Reports and Presentations Considered by the ARMC. 7
7.0 External Audit
8.0 Risk Management
9.0 Conclusion…………………………………………………………………………………………………………….8
1.0 Introduction
The Bathurst, Orange and Dubbo (BOD) Alliance introduced the services of an Internal Auditor in April 2009 and each Council created an Audit and Risk Management Committee (ARMC).
One of the benefits of sharing an Internal Audit function is that it allows the three (3) Councils to share “best practice” experience and knowledge. This has been further enhanced with the ARMC having a shared independent member that provides an exchange of ideas and experience at a senior level. This report covers the period 1 January 2016 to 31 December 2016.
The support, experience and commitment of the General Manager, Directors and staff during the year in facilitating the work of the ARMC enabled continuing improvement in the effectiveness of the ARMC meeting its responsibilities under the ARMC Charter.
2.0 ARMC Purpose
The ARMC is an independent advisory Committee assisting the Council to fulfil its governance and oversight responsibilities. The primary duties and responsibilities of the ARMC are to assist the Council to discharge its responsibilities relating to:
§ Financial reporting process
§ Business ethics, policies and practices
§ Management and internal controls
§ The integrity of the Council’s financial reporting practices and finance and accounting compliance
§ Council’s internal control framework, key corporate risks and all internal and external audit related matters
§ Encouraging continuous improvement of Council’s systems and practices
§ Internal audit
§ The Council's process for monitoring compliance with policies, laws and regulations and the Council code of conduct.
During the period under review a number of changes to the framework governing the terms of reference for audit and risk committees in the local government sector were introduced. However, at the time of preparing this report the sector was still awaiting promulgation of detailed Internal Audit Guidelines by the Office of Local Government. These Regulations are expected to provide further clarification on certain major changes to the structure and purpose of audit and risk committees in local government but from what is known at this time, the objectives and responsibilities are likely to be more expansive. Essentially, the new legislation has indicated that the Audit, Risk and Improvement Committees will be expected to carry out certain functions which includes a strong emphasis on process improvement. While the current practice has been that the Audit and Risk Management Committee provides input on process improvement initiatives, the extent of the proposed legislative requirements in this area is not yet clear. The level of resources which Council is expected to commit to this purpose is also not yet defined but in view of the foreshadowed wider objectives and responsibilities, the investment by Council is likely to increase.
Orange City Council has fortunately already taken a path of converting the Internal Audit planning into a broader process improvement approach. The Annual Plan includes updates on compliance based reporting against many operational areas. This monitoring is in addition to the internal audit program the Internal Auditor is tasked to deliver during the year.
3.0 Membership and Meetings
The Council makes all appointments to the ARMC. The ARMC consists of voting and non-voting members. The tables below shows the list of members and schedule of meetings held during the period and the number of meetings attended.
3.1 Management Meetings
The independent members met with the General Manager to discuss the operations of the ARMC as required.
3.2 ARMC Meeting Attendance
The table below shows the attendance of voting and non-voting members at each meeting scheduled by Council for the year.
|
Voting Members |
Name |
Meetings |
Appointed/Resigned |
|
|
Councillor Members |
|
Attended |
Held |
|
|
Mayor |
Cr John Davis |
1 |
4 |
Appointed 1/11/’09 |
|
Councillor |
Cr Chris Gryllis |
2 |
4 |
Appointed 1/11/’09 |
|
Councillor |
Cr Reg Kidd |
1 |
1 |
Appointed 6/9/16 |
|
|
|
|
|
|
|
Independent External Members |
|
|
|
|
|
Chair |
Phillip Burgett |
4 |
4 |
Appointed 11/6/’14 |
|
Independent Member |
Andrew Fletcher |
4 |
4 |
Appointed 1/11/’09 |
|
|
|
|
|
|
|
Non-Voting Attendees |
|
|
|
|
|
General Manager/Acting General Manager |
Garry Styles |
3 |
3 |
|
|
Director - Technical Services/Acting GM |
Chris Devitt |
1 |
1 |
|
|
Director - Corporate & Commercial Services |
Kathy Woolley |
3 |
4 |
|
|
Internal Auditor |
Shephard Shambira |
4 |
4 |
|
|
Invitees |
|
|
|
|
|
Manager Financial Services |
Aaron Jones |
4 |
|
|
|
Manager Administration & Governance |
Michelle Caitlin |
2 |
|
|
|
External Auditor |
John O’Malley |
- |
|
|
4.0 ARMC Charter and Internal Audit Activity Charter
The ARMC Charter was adopted by Orange City Council meeting held on 3 July 2009.
The Charter is reviewed annually and where necessary changes are recommended to Council for a resolution. The ARMC resolved at its meeting on 30 September 2016 that a review of the ARMC Charter be deferred until after a decision regarding the mergers of member councils in Bathurst, Dubbo and Orange have been made. The Charter review should also contemplate the impact of the amendments to the Local Government Act (1993) (NSW) relating to the Internal Audit function.
5.0 Internal Audit
5.1 Internal Audit Appointment
Mr Shephard Shambira (CPA) was appointed to the position of Internal Auditor for the BOD Alliance on 20 April 2009. This appointment was for an initial term of 3 years, which has been extended. The current contract extension will expire in 2017.
5.2 Internal Audit Performance
The ARMC has approved the annual and three (3) year audit plan and overseen the satisfactory implementation of the internal audit function into the governance activities of Council.
The Internal Auditor has built strong relationships with staff based on the quality and manner of the reviews and the recommendations made in internal audit reports presented to date.
The ARMC expects a strong direct correlation of the annual and medium term internal audit plans and the risk ratings identified in Council’s corporate risk register. Over the course of 2016 the Internal Auditor has improved the linkage between Council’s corporate risks and internal audit work priorities incorporated in the internal audit plans and will be expected to continue to develop the narrative between Council’s corporate risks and the scope of work covered in the internal audit plans to ensure appropriate assurance is provided on the effective application of controls managing the major corporate risks of Council.
Clause 7.3(d) of the ARMC Charter requires the ARMC to review the effectiveness of the internal audit function and objectives, including compliance with The Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing’. Whilst the ARMC has been satisfied with the work being undertaken by the internal audit function, best practice requires a formal independent assessment of the performance of the Internal Audit function. A review was foreshadowed in the 2016 ARMC Report to Council but was not undertaken as no budgetary allocation was available and Council was in the midst of the merger considerations. The review should be contemplated by all BOD Councils again. The General Managers of the BOD Councils have agreed to make an appropriate budget allocation in their respective Councils 2017 – ’18 budgets.
5.3 Internal Audit Plan
The ARMC is responsible to approve the internal audit plan and amendments including the scope of work covered in each specific review undertaken during the period. Over the course of the year the internal audit plan structure was modified to improve the alignment of the work undertaken with Council’s corporate risk register.
The table of Internal Audit Assignments in Paragraph 5.4 confirms that a limited number of reviews were completed in 2016 and none were finalised for consideration by the Committee in the second-half of the year. The Committee is concerned with this outcome and will examine the contributing factors with a commitment to ensure adequate resources are committed to complete the agreed internal audit programme in 2017 –’18.
5.4 Internal Audit Assignments
The ARMC also requires the scope of work for each internal audit review to be documented and agreed by each member of the ARMC. This ensures that the work undertaken addresses the specific needs of Council, management and the ARMC.
Each meeting of the ARMC received status reports on the Rolling 3 Year Internal Audit Programme. The table below shows the status of various assignments carried out by internal audit during the year under review.
|
Process reviewed |
Status |
Comments |
|
Compliance framework |
Completed |
Tabled at ARMC Meeting – June 2016 |
|
Fees and Charges |
Not completed |
Work in progress as at 31 December 2016 |
|
Work Health and Safety Compliance Review |
Not completed |
Work in progress as at 31 December 2016 |
|
Section 64 Contributions Process |
Not undertaken |
Deferred to future years |
|
Development Applications Process |
Not completed |
Work in progress as at 31 December 2016 |
|
Developer Contribution Plans |
Not undertaken |
Deferred for completion in 2017 |
|
Records Management – Compliance with policies, responsiveness to incoming correspondence |
Deleted |
Now that the merger plans are unlikely to proceed this review needs to be scheduled in Council’s Three-Year Internal Audit Plan.
|
|
Asbestos Management Plan – rollout success, compliance and awareness, testing of application of site controls on Naturally Occurring Asbestos sites |
Not completed |
Work in progress as at 31 December 2016 |
|
Coordinating joint process improvement initiatives across the BOD Alliance |
On-going |
The consultative forums in place have not resulted in any tangible benefits and are not continuing in a structured manner. BOD Councils need to reconsider the philosophy of ‘joint process improvement’ and resolve the level of commitment. ARMC Chairs met with BOD General Managers in February 2017.
|
|
Annual review of the ARMC Charter and Internal Audit Activity Charter (Operational Policy OP081) |
Completed |
Annual review of the Audit and Risk Management Committee Charter was deferred until after a decision regarding the mergers of the member councils in Bathurst, Dubbo and Orange have been made. The charter review will also contemplate the impact of the amendments to the Local Government Act (1993) relating to the Internal Audit function. The review will be completed in the 2017 calendar year. |
|
Specific requests from the General Manager |
Completed |
Specific requests made by the General Manager are made in consultation with the ARMC Chair |
5.5 Limitations on Internal Auditor
The ARMC is not aware of any restrictions placed on the work of the Internal Auditor.
5.6 Management Responses
The ARMC reviews all internal audit reports including unplanned or special reports and has satisfied itself that management’s responses to audit findings and recommendations are constructive, responsible and timely. All issues arising have been dealt with, or are being dealt with to the satisfaction of the ARMC.
5.7 Internal Audit Resource Distribution
The following table shows the distribution of internal audit time among the three (3) BOD Alliance member Councils as at December 2016. On average, 20% of the time allocated to Orange City Council is utilised on operational meetings, administrative activities such as ARMC meetings, professional workshops and training.
Allocation of Internal Audit Time
|
Council |
Bathurst Regional Council |
Orange City Council |
Dubbo Regional Council |
|
Percentage share of time available from 1 January 2016 to 31 December 2016* |
27% |
55% |
18% |
* At the end of the financial year each of the three (3) Councils will have received a 33% share of the available internal audit time.
6.0 Other Reports and Presentations Considered by the ARMC
6.1 Other Reports
§ Presentation on the Macquarie Pipeline Project Key Milestones and Risk Management Framework (April 2016)
§ Analysis of Wages and Related Risks of Financial Sustainability (April 2016)
§ Asbestos Management Procedures (June 2016)
§ Draft Emergency Procedures and Business Continuity Plan (June 2016)
§ Financial Statements External Audit Timetable (September 2016)
§ 2016 Audited Financial Statements
§ External Auditor’s Management Letter – Second Interim Audit (September 2016)
§ Review of Corporate Risks Register (November 2016)
7.0 External Audit
During the period under review, the Council’s external audit was contracted to Intentus Chartered Accountants. However, due to legislative changes the Audit Office was appointed as the External Auditor to all Councils in New South Wales. The Audit Office retained the services of Intentus Chartered Accountants as a contractor to the Auditor General assigned to carry out the external audit of Council’s financial statements for the 2016/17 year.
The ARMC has not independently assessed the performance of the External Auditor for the year but has reviewed the external audit plan and have maintained contact with the Audit Principal, John O’Malley and satisfied itself that all undertakings required under the contract have been addressed.
The ARMC is not aware of any non-audit services provided or any other circumstances which would pose a threat to the independence of the external auditor.
The External Auditor’s interim and final management letters were presented to the ARMC during the year under review and the ARMC is monitoring management’s implementation of the agreed action plans and responses to issues raised by the External Auditor.
The ARMC has no concerns with the External Auditor’s audit report on Council’s Financial Statements for the 2015/16 financial year. The ARMC Chair discussed the audit work with the Audit Principal and there are no outstanding issues.
8.0 Risk Management
ARMC has reviewed Council’s risk management strategy and continues to monitor progress on the implementation of an enterprise wide risk management (ERM) plan.
Council made significant progress with the development and implementation of a Corporate Risk Register. Over the course of the period under review the number of risks identified was reviewed and consolidated to better reflect an organisation-wide perspective allowing more efficient prioritisation of key risks. Whilst the ERM Plan retains a record of all identified operational and strategic risks the ARMC now regularly receives a report on Council’s 20 Top Corporate Risks and how they are being managed to deliver a residual risk outcome within Council’s risk tolerances.
9.0 Conclusion
The ARMC has overseen an internal audit and external audit program for the year under review in which the scope and approach to the work undertaken has been appropriate and consistent with the current understanding of Council’s enterprise risk framework.
The ARMC confirms that based on the information provided to the ARMC from management, internal audit and external audit, it is satisfied with the adequacy and effectiveness of Council’s arrangements for governance, risk management, internal control and regulatory compliance.
The areas of responsibility of the ARMC set out in Clause 7 of the Audit and Risk Management Committee Charter are managed in conjunction with the internal audit and external audit plans executed during the year.
In that regard, following a recommendation from the ARMC, the Councils explored the implementation of an internal audit software platform which will provide the capability of more extensive interrogation of transactions to verify the application of risk management controls and policies as mitigation factors in managing the residual risks recorded in the enterprise risk management register.
The impact of this objective on the structure of the internal audit plan and allocation of resources between internal audit and external audit will be reflected in the 2017-’18 Internal Audit Plan.
PP Burgett
Chairman
TRIM REFERENCE: 2017/774
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 31 March 2017 the Cash Book Balance was $461,536.94.
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
Nil
Policy and Governance Implications
Nil
|
That the information provided in the report by the Accounting Officer – Management on the Statement of Bank Balances as at 31 March 2017 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 31 March 2017, D17/25389⇩
Finance Policy Committee 2 May 2017
3.1 Statement of Bank Balances as at 31 March 2017
Attachment 1 Bank Reconciliation as at 31 March 2017
TRIM REFERENCE: 2017/775
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
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.
$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 $500 – Blossoms Rescue |
$1,000
|
|
Councillor Turner |
$2,000 |
$500 – Come Together Choir $1,500 – At The Vineyard |
Nil |
|
Councillor Whitton |
$2,000 |
$350 – Riding for the Disabled $500 – Community Christmas Lunch $200 – Tiarah Jade Fisher |
$950 |
Policy and Governance Implications
Nil
|
That Council approve the donation request to Blossoms Rescue of $500 from Councillor Taylor’s allocation. |
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
Blossoms Rescue – This organisation rehomes stray, injured and abandoned cats. Cr Taylor has pledged $500 from his remaining allocation.
1 Donation Table - 2 May 2017, D17/25396⇩
2 Blossoms Rescue, IC17/7335⇩
Finance Policy Committee 2 May 2017
3.2 Request for Financial Assistance
Attachment 1 Donation Table - 2 May 2017
|
No |
Applicant |
Amount Sought |
Policy Position |
Purpose |
Comment |
Recom-mended |
To be advertised |
|
A.1
|
Blossoms Rescue |
$500 |
General Request – Up to a maximum of $500 |
Blossoms Rescue rehomes stray, injured and abandoned cats. |
Cr Taylor has pledged to support this request from his remaining allocation |
Yes |
No |
