Finance Policy Committee

 

Agenda

 

3 March 2020

 

 

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 Glenroi Community Centre, Garema Road, Orange on Tuesday, 3 March 2020.

 

 

David Waddell

Chief Executive Officer

 

For apologies please contact Administration on 6393 8218.

  

 


Finance Policy Committee                                                                             3 March 2020

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 14 February 2020. 5

 


Finance Policy Committee                                                                             3 March 2020

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 March 2020

2       Committee Minutes

2.1     Audit and Risk Management Committee Meeting of 14 February 2020

RECORD NUMBER:       2020/313

AUTHOR:                       Shephard Shambira, Internal Auditor    

 

 

EXECUTIVE Summary

The Audit and Risk Management Committee (ARMC) held its quarterly meeting on 14 February 2020. A copy of the minutes of the ARMC meeting of 14 February 2020, and the related Agenda and the ARMC Annual Report as at 31 December 2019 are attached.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.1 Collaborate - Provide representative, responsible and accountable community governance”.

Financial Implications

The findings of the audit of contaminated land noted potential issues which might require funding from Council or other sources. The extent of financial commitment is not fully determined at this stage.

Policy and Governance Implications

The ARMC meeting considered updates to the Fraud and Corruption Prevention Policy which is now recommended for adoption by Council.

 

Recommendation

1     That Council acknowledge the reports presented to the Audit and Risk Management Committee at its meeting held on 14 February 2020.

2     That the remainder of the minutes of the Audit and Risk Management Committee at its meeting held on 14 February 2020 be adopted.

3     That Council acknowledge the Audit and Risk Management Committee Annual Report for the Year ended 31 December 2019.

 

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 Audit and Risk Management Committee (ARMC) held its quarterly meeting on 14 February 2020. The Committee received a verbal report from the Audit Office NSW Director of Financial Audit regarding the Council’s preparations for the 2020 financial audit.


 

A selection of tasks included in a proposed 3 year internal audit plan was considered and adopted by the Committee subject to a further update of the 3 year plan to incorporate additional tasks based on results of a risk assessment which is expected to be completed later in this calendar year.

The Committee also considered a draft Fraud and Corruption Prevention Policy which has been reviewed by management and provided feedback to enhance the risk management framework.

Management reports regarding progress with process improvement initiatives and regular compliance reports were noted. The Committee requested for a further update on the Action List to be circulated out of session including certain sections of the report which were incomplete at the time of the meeting.

A confidential report following an audit of contaminated land owned or occupied by Council was discussed at length and progress with work to strengthen the risk management process was noted.

The Audit and Risk Management Committee Charter requires that the Committee should report to Council regarding the Committee’s activities. Section 7.3.(g) of the Charter notes that the Committee shall “Report annually to the Council, describing the committee’s compositions, responsibilities and how they were discharged, and any other information required by law, including non-audit services. The annual report outlining the Committee’s achievements for the calendar year ended 31 December 2019 is at Attachment 3.

A copy of the minutes of the ARMC meeting of 14 February 2020, and the related Agenda and the ARMC Annual Report as at 31 December 2019 are attached.

 

Attachments

1        Minutes of the Meeting of the Audit and Risk Management Committee held on 14 February 2020

2        ARMC Agenda 14 February 2020, D20/6697

3        ARMC Annual Report for the Year ended 31 December 2019, D20/9652

 



ORANGE CITY COUNCIL

 

MINUTES OF THE

Audit and Risk Management Committee

HELD IN THE CoUNCILlors WORKROOM, Civic Centre, Byng Street, Orange

ON 14 February 2020

COMMENCING AT 9:35AM


 1      Introduction

Attendance

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

Non-Voting Members: Chief Executive Officer, Acting Director Corporate and Commercial Services, Manager Financial Services, Internal Auditor, Cr J Whitton

Invited: Audit Office (NSW) Mr Chris Harper via teleconference

 

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

Nil

2       Previous Minutes

RECOMMENDATION                                                                  Mr B Gillooly AM/Cr J McRae

That the Minutes of the Meeting of the Audit and Risk Management Committee held on 25 October 2019 (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 25 October 2019.

 


 

3       General Reports

3.0     VERBAL UPDATE FROM THE AUDITOR GENERAL NSW

vERBAL REPORT BY mR cHRIS hARPER – dIRECTOR fINACIAL aUDIT: AUDIT oFFICE NSW

Recommendation                                                                  Mr B Gillooly AM/Cr J McRae

That the verbal report regarding progress with preparations for the Council’s 2020 financial statements be noted.

 

 

** Mr Chris Harper left the meeting with the time being 9:45am **

 

** The Mayor Cr R Kidd joined the meeting with the time being 10:11am **

 

3.1     Proposed Internal Audit Programme - 2020 to 2023

TRIM Reference:        2020/112

Recommendation                                                                     Mr B Gillooly AM/Cr R Kidd

1        That the proposed internal audit programme be approved.

2        That the paper on investments process be noted and that the Internal Auditor      consider allocating time to a high level compliance review of controls in the    investments process.

3        That the Committee confirm the work plan for the remainder of this financial year.

4        That the Internal Auditor be requested to redraft the remaining 3 years of the plan to   programme in the unallocated hours and reflect changes in priorities proposed by          the Committee.

 

 

3.2     Fraud and Corruption Prevention Policy Review

TRIM Reference:        2020/98

Recommendation                                                                     Mr B Gillooly AM/Cr R Kidd

1        That the report be acknowledged.

2        That feedback be provided to the Internal Auditor by 21 February 2020.

 

 


 

3.3     Process Improvements - 2019/20 Financial Year - Update - September 2019 to January 2020

TRIM Reference:        2020/176

Recommendation                                                                               Cr J McRae/Cr R Kidd

That the update on process improvements be acknowledged.

 

 

3.4     Compliance Activities - 2019/20 Financial Year - Update - September 2019 to December 2019

TRIM Reference:        2020/177

Recommendation                                                                  Mr B Gillooly AM/Cr J McRae

That the update on compliance activities be acknowledged.

 

 

3.5     ARMC Action List as at January 2020

TRIM Reference:        2020/99

Recommendation                                                                     Mr B Gillooly AM/Cr R Kidd

1        That the report by the Internal Auditor on ARMC Action List as at January 2020 be acknowledged.

2        That action items marked as completed (100%) be deleted from the ARMC Action List.

3        That an updated ARMC Action List be prepared and distributed to Committee members out of session within 21 days from the date of this meeting.

4        That the Committee noted that the ARMC Action List progress report appeared incomplete as at the date of the meeting.

5        That the Chief Executive Officer request the Information Services Manager to make a presentation to the next meeting outlining the Council’s information technology strategy roadmap. 

 

 


 

 

3.6     Audit and Risk Management Committee Annual Report for the Year Ended 31 December 2019 (in-camera discussion)

TRIM Reference:        2020/185

RecommendationS                                                                   Mr B Gillooly AM/Cr R Kidd

1       That the report by the ARMC Chair be acknowledged.

2     That Committee members’ feedback on the report be submitted to the Committee     Chair.

3       That the report be submitted to the next Council meeting.

 

 

4       Closed Meeting

In accordance with the Local Government Act 1993, and the Local Government (General) Regulation 2005, in the opinion of the General Manager, the following business is of a kind as referred to in Section 10A(2) of the Act, and should be dealt with in a Confidential Session of the Audit and Risk Management Committee meeting closed to the press and public.

In response to a question from the Chairperson, the Chief Executive Officer advised that no written submissions had been received relating to any item listed for consideration by the Closed Meeting of Audit and Risk Management Committee.

The Chairperson extended an invitation to any member of the public present at the meeting to make a presentation to the Audit and Risk Management Committee as to whether the meeting should be closed for a particular item.

Recommendation                                                                     Cr R Kidd/Mr B Gillooly AM

That Audit and Risk Management Committee adjourn into a Closed Meeting and members of the press and public be excluded from the Closed Meeting, and access to the correspondence and reports relating to the items considered during the course of the Closed Meeting be withheld unless declassified by separate resolution. This action is taken in accordance with Section 10A(2) of the Local Government Act, 1993 as the items listed come within the following provisions:

4.1     Internal Audit Review Report - Contaminated Land (Council Owned)

This item is classified CONFIDENTIAL under the provisions of Section 10A(2) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

 

The Chairperson declared the open meeting of the Committee adjourned for the conduct of the closed meeting at 11:35am.

The Chairperson declared the open meeting of the Committee resumed at 12:10pm.


 

5       Resolutions from Closed Meeting

4.1     Internal Audit Review Report - Contaminated Land (Council Owned)

TRIM Reference:        2020/196

Recommendation                                                                     Cr R Kidd/Mr B Gillooly AM

That the report by the Internal Auditor regarding contaminated land and related management comments and action plans be acknowledged.

 

 

 

The Meeting Closed at 12:12PM.

 

 


Finance Policy Committee                                                                                                     3 March 2020

Attachment 1      ARMC Agenda 14 February 2020

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Finance Policy Committee                                                                                                     3 March 2020

Attachment 2      ARMC Annual Report for the Year ended 31 December 2019

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