NOTICE OF AUDIT COMMITTEE MEETING · and shade sail. s are completed. New street furniture to be installed Other ... 6.2 Audit Completion and Adoption by Council of 2017 General Purpose

MUNICIPAL COUNCIL OF ROXBY DOWNSRichardson Place

PO Box 124 Roxby Downs SA 5725

Phone 08 8671 0010 Email: [email protected] Web: www.roxbvdowns.sa.qov.au

ABN: 68 284 130 046

NOTICE OF AUDIT COMMITTEE MEETING

Notice is hereby given that our AUDIT COMMITTEE MEETING will be held in the Boardroom, Local Government Finance Authority, Suite 1205, 147 Pirie Street Adelaide SA 5000 on 23MARCH 2018 commencing at 10:00 AM.

A copy of the Agenda for the above meeting is attached to this notice.

mailto:[email protected]

http://www.roxbvdowns.sa.qov.au



Phone 08 8671 0010 Email: [email protected] Web: www.roxbydowns.sa.gov.au

ABN: 68 284 130 046

AGENDA

MeetingMUNICIPAL COUNCIL OF ROXBY DOWNSAudit Committee Meeting

Meeting Date & Time Friday 23 March 2018 at 10.00am

Location Boardroom, Local Government Finance Authority, Suite 1205, 147 PirieStreet Adelaide SA 5000

1. Opening Statement

I wish to acknowledge the Kokatha peoples, the traditional owners of the land on which we meettoday and pay my respect to their Elders past and present and extend that respect to otherAboriginal and Torres Strait Islander people who are present today.

2. In Attendance

Welcome to the new Audit Committee - Administrator

3. Conflict of Interest

Any declarations

4. Confirmation of Minutes of the Previous Meeting

That the Minutes of the Audit Committee Meeting held on 24 November 2017 be confirmed as a true andaccurate record of proceedings.

5. Chief Executive’s Report (Verbal)

6. Written Reports

6.1 Review of Terms of Reference

6.2 Review of Audit Committee’s Work Plan

6.3 Audit Committee Meeting Dates and Times

6.4 Budget Development Timetable

6.5 Second Quarter Budget Review

6.6 2018-2019 Budget Assumptions

6.7 Internal Controls

6.8 Asset Management System Update

6.9 Strategic Risk Review Update

6.10 Fraud and Corruption Prevention Policy

6.11 Prudential Management Policy

6.12 Whistleblower Protection Policy

6.13 Review of ICT Major Projects 2017/2018

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http://www.roxbydowns.com/

7. Next Meeting

8. Closure



Phone 08 8671 0010

Email: [email protected] Web: www.roxbydowns.sa.gov.au

ABN: 68 284 130 046

Page 1 of 4

MINUTESMeeting Audit Committee Meeting

Meeting Date & Time Friday 24 November 2017 at 10:02 am.

Location Boardroom, Local Government Finance Authority,Suite 1205, 147 Pirie Street, Adelaide, SA, 5000.

Present David Powell (Chair), Warwick Koster, Trevor Starr.

Staff Present Geoff Whitbread (Administrator), Roy Blight (CE) by telephone, DrewEllis (Finance Manager), Alan Rushbrook (Financial Advisor).

Apologies Nil.

1. Opening Statement

2. Conflict of Interest

No member declared a conflict of interest.

3. In Attendance

Nil.

4. Confirmation of Minutes of the Previous Meeting

Moved: Trevor Starr

The Minutes of the Audit Committee Meeting held on 22 September 2017, with the changefrom “Council” to the “Audit Committee” in item 4, be confirmed as a true and accuraterecord of proceedings.

Seconded: Warwick Koster CARRIED

5. Administrator’s Report

CE First Quarter ReviewReview undertaken. Transition has been satisfactory and new governance processes areworking well.

Waste Management ContractNew arrangements commenced on 1 October 2017.Updated documentation is being prepared and is expected to be executed in the next fewweeks.Expect savings of approximately $250k per year for the remaining eight years of the contract.Further savings may be achievable.

Golf ClubIn negotiation with the Golf Club about the irrigation and grounds maintenance arrangements.Working towards clear and transparent arrangements.Good progress is being made towards a resolution.

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Community Land Management PlansNine plans are currently out for consultation.Leases have been drafted, and once the consultation is completed they will be finalised withthe relevant bodies and executed. The leases fully document the mutual obligations of allparties.

InsuranceCurrently negotiating insurance premiums with Local Government Risk Services.

Strategic PlanTalking to BHP about sharing the provision of their future plans to assist in the developmentof the Strategic Plan.

Restructure of AdministrationThe new structure has been announced and is being consulted on. It incorporates a reductionin the number of management by one position and the consolidation of departments. The keychange is the consolidation of Water, Power and Works into one position. Second levelmanagement will have the title of Group Manager.

About to go to market for a Group Manager for Essential Services and Assets.

Iain Boehm has recently left the organisation. He developed and implemented acomprehensive transition plan prior to his departure.

RoxbylinkRestructure is commencing. An Operations Manager has been appointed.

Water, Sewerage and Electricity TariffsConsidering aligning tariff reviews to financial year not calendar year.

Annual ReportAnnual Report is nearly complete and will be ready for adoption at the next Council meeting.

BHPBHP has announced that it intends to increase its staff by 120 in 2018. There has been anoticeable increase in town activity recently. BHP has started to mine the rich southernsection of their mine.

Richardson PlaceResealing and line marking and shade sails are completed. New street furniture to beinstalled

OtherReviewing the horticultural effort in the town.

Moved: Trevor Starr

That the verbal report by the Administrator be noted.


6. Written Reports

6.1 Review of Audit Committee Performance

Moved: Warwick Koster

That the report on the Review of Audit Committee Performance be received.

Seconded: Trevor Starr CARRIED

6.2 Audit Completion and Adoption by Council of 2017 General Purpose Financial Statements

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Moved: Trevor Starr

That the Audit Committee notes the adoption by Council of the 2017 FY Audited General Purpose Financial Statements.


6.3 First Quarter Budget Review

Moved: Trevor Starr

That the Audit Committee recommends to Council that the amended budget, Review 1, as presented in Attachment 1, be adopted.


Following questions from the Chair an updated Financial Report has been prepared and isattached to the minutes

6.4 Electricity, Water & Rates Payments Policy

Moved: Trevor Starr

That the report on the Electricity, Water & Rates Payments Policy be noted.


6.5 Funding Policy

Moved: Warwick Koster

That the Audit Committee recommend to Council that the Funding policy, as amended, be adopted and the Fees & Charges Policy be abolished.

Seconded: Trevor Starr CARRIED

The Funding Policy with the amended wording is attached to the end of these minutes.

6.6 Treasury Policy

Moved: Trevor Starr

The Committee recommends to Council that the Treasury Policy be adopted and both the Loans Policy and Investment Policy be abolished. Seconded: Warwick Koster CARRIED

7. Chief Executive’s Report

Reform of the Community BoardConsidering a restructure of the Community Board, consistent with the recommendations ofthe Governance Review.Suggesting a more strategic focus, with a reduced number of groups, called shared interestgroups, with bi-monthly meetings.Currently consulting on the changes and planning to implement in the New Year.

Multi-Purpose Pump TrackThe current BMX track is in need on of an upgrade. There is a lot of interest being shown bythe private sector and the school is supportive of the project.

BHPBHP is a sponsor of the Crows women’s AFL team and it is hoped that some close ties canbe made to support and encourage the participation of local women and children in sport.

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Female Friendly Change Facilities The current change facilities are in need of an update. They were designed and constructed when standards were different. Planning to submit applications for funding to upgrade the current facilities to the SA Department of Sports & Recreation, BHP and the Federal Government.

8. Next Meeting

To be advised.

9. Closure

The Administrator gave a note of thanks to all members of the Committee for their contributionover the past 2½ years. He has appreciated the support, counsel and input.

Warwick Koster indicated he will not be reapplying for membership of the Committee.

The Administrator thanked Warwick Koster for his eight years of service to the Committee and toCouncil.

The meeting closed at 11:33am.

…………………………………. David Powell Chair

…………………………………. Date

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Roxby CouncilBudget Financial Statements

Consolidated

2017/2018AdotpedBudget$'000

2017/2018Review 1 Budget$'000

2017/2018Actuals

Sep 2017$'000

Statement of Comprehensive IncomeIncome

Rates 5,472 5,472 5,444

Statutory charges 44 44 6

User charges 10,804 10,796 615

Grants subsidies and contributions 331 334 130

Municipal deficit funding 600 600 0

Investment income 5 5 6

Other income 190 165 65

Total Income 17,446 17,416 6,265

Expenses

Employee costs 5,029 5,165 985

Materials contracts & other expenses 9,337 9,324 1,739

Finance Costs 48 19 7

Depreciation amortisation & impairment 2,620 3,014 753

Total Expenses 17,034 17,521 3,485

OPERATING SURPLUS / (DEFICIT) 412 (105) 2,781

Asset disposal and fair value adjustments 0 0 0

Physical Resources Received Free of Charge 0 0 0

Amounts specifically for new or upgraded assets 0 0 0

NET SURPLUS / (DEFICIT) 412 (105) 2,781

transferred to Equity Statement

Other Comprehensive Income

Transfer Between Reserves 0 0 0

TOTAL COMPREHENSIVE INCOME 412 (105) 2,781

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Consolidated



2017/2018Actuals

Sep 2017$'000

Statement of Financial PositionASSETS

Current Assets

Cash & cash equivalents 1,902 3,538 4,256Trade & other receivables 2,827 3,336 4,540Inventories 27 21 24Total Current Assets 4,756 6,895 8,820

Non-Current Assets

Infrastructure, property, plant & equipment 128,429 119,228 119,715Total Non-Current Assets 128,429 119,228 119,715

Total Assets 133,185 126,124 128,535

LIABILITIES

Current Liabilities

Trades & other payables 1,834 1,326 888Provisions 330 259 274Total Current Liabilities 2,164 1,585 1,162

Non-Current Liabilities

Trade & Other Payables 0 0 0Long term borrowings 0 0 0Long term provisions 0 0 1,178Other non-current liabilities 1,230 1,230 0Total Non-Current Liabilities 1,230 1,230 1,178

Total Liabilities 3,394 2,815 2,340

NET ASSETS 129,791 123,309 126,195

0.5 - - 0.1 EQUITY

Accumulated Surplus 28,912 23,860 26,746Asset Revaluation Reserve 100,879 99,449 99,449TOTAL EQUITY 129,791 123,309 126,195

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Consolidated



2017/2018Actuals

Sep 2017$'000

Statement of Changes in Equity - - -

ACCUMULATED SURPLUS

Balance at end of previous reporting period - AS 28,500 23,965 23,965

Net result for year 412 (105) 2,781

Balance at end of period 28,912 23,860 26,746

ASSET REVALUATION RESERVE

Balance at end of previous reporting period - ARR 100,879 99,449 99,449

Gain on revaluation of infrastructure, property plant & equipment 0 0 0Balance at end of period 100,879 99,449 99,449

TOTAL EQUITY AT END OF REPORTING PERIOD 129,791 123,309 126,195

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Consolidated



2017/2018Actuals

Sep 2017$'000

Statement of Cash Flows

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Rates - general and other 5,472 5,472 5,444Fees and other charges 44 44 6User charges receipts 10,804 10,796 615Grants utilised for operating purposes 331 334 130Municipal deficit funding receipts 600 600 0Investment receipts 5 5 6Other revenues receipts 190 165 65Municipal distribution receipts 0 0 0Changes in Net Assets 128Payments

Employee costs payments (5,029) (5,165) (985)

Materials, contracts & other payments (9,285) (9,324) (1,739)

Finance payments (48) (19) (7)

Net Cash provided by (or used in) Operating Activities 3,085 2,909 3,662

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Amounts specifically for new or upgraded assets 0 0 0Sale of replaced assets 48 48 0

Sale of surplus assets 0 0 0Payments

Expenditure on renewal/replacement of assets (1,264) (1,264) (178)

Expenditure on new/upgraded assets (776) (776) (39)

Net Cash provided (or used in) Investing Activities (1,992) (1,992) (217)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Proceeds from borrowings 0 0 0Payments

Repayments of borrowings 0 0 0

Net Cash provided by (or used in ) Financing Activities

0 0 0

Net Increase / (Decrease) in cash 1,092 916 3,446

Cash & equivalents at beginning of period 810 2,622 810

Cash & equivalents at end of period 1,902 3,538 4,256

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Consolidated



2017/2018Actuals

Sep 2017$'000

Uniform Presentation of Finances

Income 17,446 17,416 6,265

less Expenses (17,034) (17,521) (3,485)

Operating Surplus / (Deficit) 412 (105) 2,781

less Net Outlays on Existing Assets

Capital Expenditure on renewal & replacement of existing assets

1,264 1,264 178

less Depreciation amortisation & impairment (2,620) (3,014) (753)

less Proceeds from sale of replaced assets (48) (48) 0

(1,404) (1,798) (576)

less Net outlays on New and Upgraded Assets

Capital Expenditure on new or upgraded assets 776 776 39

less Amounts received specifically for new & upgraded assets

0 0 0

less Proceeds from sale of surplus assets 0 0 0

776 776 39

Net Lending / (Borrowing) for Financial Year 1,040 916 3,318

Statutory Financial Indicators

Operating Surplus Ratio 2.4% -0.6% 44.4%

Being the operating surplus (deficit) as a percentage of revenue

Net Financial Liabilities Ratio -8% -23% -103%

Being the net financial liabilities / total operating revenue

Asset Sustainability Ratio 1,144 1,143 1,143

Capital expenses on renewal/ replacement assets less sale of replaced assets divided by Infrastructure Asset Management Plan required expenditure

48% 42% 24%

Asset Sustainability Ratio

Capital expenses on renewal/ replacement assets less sale of replaced assets divided by depreciation

111% 111% 16%

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Municipal2017/2018AdotpedBudget$'000


2017/2018Actuals

Sep 2017$'000


Income 8,360 6,594 5,653

plus Municipal Distribution 1,050 1,050 0

less Expenses (10,933) (6,223) (1,393)

Operating Surplus / (Deficit) (1,523) 1,421 4,260


Capital Expenditure on renewal & replacement of existing assets 1,354 955 80

less Depreciation amortisation & impairment (1,628) (1,270) (318)

less Proceeds from sale of replaced assets (48) (48) 0

(322) (363) (237)


Capital Expenditure on new or upgraded assets 439 481 18

less Amounts received specifically for new & upgraded assets 0 0 0

less Proceeds from sale of surplus assets 0 0 0

439 481 18

Net Lending / (Borrowing) for Financial Year (1,640) 1,303 4,479

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Link2017/2018AdotpedBudget$'000


2017/2018Actuals

Sep 2017$'000


Income 0 1,736 398less Expenses 0 (4,872) (934)Operating Surplus / (Deficit) 0 (3,135) (537)


Capital Expenditure on renewal & replacement of existing assets 0 297 97less Depreciation amortisation & impairment 0 (368) (92)less Proceeds from sale of replaced assets 0 0 0

0 (70) 5


Capital Expenditure on new or upgraded assets 0 60 21less Amounts received specifically for new & upgraded assets 0 0 0less Proceeds from sale of surplus assets 0 0 0

0 60 21

Net Lending / (Borrowing) for Financial Year 0 (3,125) (563)

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Power2017/2018AdotpedBudget$'000


2017/2018Actuals

Sep 2017$'000


Income 4,429 4,429 166plus Municipal Distribution 0 0 0less Expenses (3,543) (3,701) (641)Operating Surplus / (Deficit) 886 728 -475


Capital Expenditure on renewal & replacement of existing assets 78 12 0less Depreciation amortisation & impairment (622) (776) (194)less Proceeds from sale of replaced assets 0 0 0

(544) (764) (194)



0 66 0

Net Lending / (Borrowing) for Financial Year 1,430 1,426 (281)

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Roxby Water2017/2018AdotpedBudget$'000


2017/2018Actuals

Sep 2017$'000


Income 4,657 4,657 49plus Municipal Distribution (1,050) (1,050) 0less Expenses (2,558) (2,726) (517)Operating Surplus / (Deficit) 1,049 881 (467)


Capital Expenditure on renewal & replacement of existing assets 0 0 0less Depreciation amortisation & impairment (370) (600) (150)less Proceeds from sale of replaced assets 0 0 0

(370) (600) (150)



169 169 0

Net Lending / (Borrowing) for Financial Year 1,250 1,312 (318)

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roxbycouncil FUNDING Policy Date |

Page 1 of 4

POLICY

Responsible Department Finance

Original Adoption Date

Current Adoption Date

Audit Committee Review Date

Date of Review a

TITLE FUNDING

Latest Review Changes This policy replaces the Fees and Charges Guidelines Policy

Previous Council Reviews

Previous Audit Committee Reviews

Applicable Legislation:

Local Government Act 1999, - Section 133 - Sections 146 – 166 - Sections 182 and 182A

Local Government (Financial Management) Regulations 2011 - Regulations 5, 6 and 7

Roxby Downs (Indenture Ratification) Act, 1982

Related Policies (alphabetical list):

Budget Management Policy

Municipal Rating Policy

Leases and Licences to Sporting and Community Organisations

Treasury Policy

Related Procedures:

Reference Documents:

Rating and Other Funding Policy Options – Local Government Association Financial Sustainability Information Paper No 20.

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1 INTRODUCTION

This policy sets out Council’s approach to the funding of services.

The policy is based on an assessment of the beneficiaries of all of Council’s services and how these should be funded. It provides the framework within which Council will raise the revenue necessary to fund expenses of programs set out in its long-term financial plan.

2 POLICY OBJECTIVES

The Funding Policy reflects Council’s determined balance between the principles of: i. user-pays or beneficiary pays; ii. capacity to pay of different sections of the community; iii. costs of provision of services; iv. where relevant, prices charged by others for provision of similar services; v. maximising sourcing of external funding; vi. accommodating individual circumstances of financial hardship; and vii. achieving and preserving reasonable inter-generational equity.

3 POLICY STATEMENTS

3.1 Long-term Financial Plan

Council will adopt a 10 year Long-term Financial Plan (LTFP) that sets out the funding (revenue raising) requirements to equitably fund the identified community needs and preferences in its Strategic Management Plan’s.

The LTFP has also been based on achievement of the targets set by Council for each of its financial sustainability indicators as set out in its Budget Management Policy.

3.2 Budget Planning and Management

Council’s annual budget will be based on the relevant year of its LTFP and in particular the financial strategy that will ensure attainment of specified financial indicator targets for the year, as outline in its Budget Management Policy. Decisions regarding the range and level of services and infrastructure provided will take into account the need to maintain long-term financial sustainability without future unplanned increases in rates or disruptive cuts to services.

3.3 Financial Assistance and Other Discretionary Grants Council receives ongoing Commonwealth Financial Assistance Grants through the SA Local Government Grants Commission (LGGC). Similarly Roads to Recovery Grants from the Commonwealth are an important funding source. Historically, Council has also received funding from the State Government and BHP in accordance with the provisions of the Roxby Downs (Indenture Ratification) Act 1982 which has been used to fund Council activities.

3.4 Specific Purpose Grants Council recognises that opportunities arise from time to time to secure grants or funding for specific projects or purposes.

Council will pursue such opportunities where the funding objectives support the directions of its Strategic Management Plan and its financial sustainability objectives.

When considering a specific purpose grant or funding opportunity Council will assess the whole-of-life costs of a project (including maintenance and other operating costs over the life of the project) and will consider the impact of these costs on Council’s financial sustainability indicators over the life of the project

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3.5 General and Other Rates Council will raise general and other rates from its community in accordance with its Municipal Rating Policy.

Council’s Municipal Rating Policy sets out its application of the following rating

provisions contained in the Local Government Act 1999: Basis of valuation for rating purposes minimum rates or fixed charges; separate rates; service rates and charges; differential rates; rate rebates; postponement of rates.

Council keeps its Municipal Rating Policy under review to ensure it has appropriate regard for Council’s Funding Policy objectives (outlined in 2. above) and in particular any material changes in:

capacity to pay within sections of the community; the extent of opportunity of access to, use of, and benefit from, Council

services by various groupings of service users and ratepayers

Revenue from general rates helps meet a substantial part of the cost of Council services and activities that are widely available to ratepayers.

3.6 User Charges To reduce dependence on rate revenue Council applies user charges to meet the cost of its services where this is equitable, efficient and practical. Charges set have regard to Council’s costs, the benefits to direct users and others from the provision of the services and prices charged elsewhere for similar services.

Council’s user charges are set out in Council’s Fees and Charges Register. The following principles are applied in the setting of fees and charges in each of Council Business Units. Municipal Activities Fees set by regulation will be charged at the regulated rates. Fees and charges for miscellaneous items such as printing and photocopying are set mainly on a commercial basis. Roxby Link Fees for the use of facilities by community organisations are determined in accordance to the provisions of the Leases and Licences to Sporting and Community Organisations Policy. Fees for commercial activities will be set at competitive rates which seeks to cover costs. Participants in sporting and recreational activities will be expected to contribute towards the cost of providing the facilities and / or staff for their activity and fees will be set at a rate which both encourages the use of the facilities and participation in the events. Generally, fees for children will set at a lower rate than adults.

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http://www.legislation.sa.gov.au/LZ/C/A/LOCAL%20GOVERNMENT%20ACT%201999.aspx


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Roxby Power Electricity tariffs are set after consideration of contemporary principles of pricing setting for monopoly electricity retailers. Council also has to comply with the requirements of the Roxby Downs (Indenture Ratification) Act 1982, with respect to electricity tariffs. Council will ensure that all costs, including the replacement of assets are taken into account when setting fees. Roxby Water Water tariffs are set after consideration of contemporary principles of pricing setting for monopoly water retailers, including the National Water Initiative guidelines. Council will ensure that all costs, including the replacement of assets are taken into account when setting fees. Each year a Water Pricing Policy Statement is considered by Council, which describes how the new water tariffs have been determined.

3.7 Borrowings

Loan funds can be a valuable source of funding for capital expenditure when Council does not have sufficient fund of its own for a particular project. Council takes a holistic view of its Treasury Management and may use short term borrowing to support its ongoing activities Council manages decisions about when to borrow and what type of borrowings to raise in through its Budget Management and Treasury Policies.

3.8 Private Sector Contributions/Partnerships Council will seek private sector funding for projects e.g. through joint venture, grants or provision of infrastructure etc where this is considered beneficial to the community. In assessing the community benefit of such arrangements Council will take account of its financial exposure through an analysis of the whole-of-life costs of the project and ensure there is appropriate due diligence undertaken, and transparency, before entering into a significant private sector partnerships.

4. REVIEW OF THE POLICY

To ensure that the principles of open Government are being applied in a proper manner it is anticipated that a review will be conducted every two years. However, Council has the right to review this policy at any time.

5. ACCESSIBILITY

This policy is available to be downloaded free of charge from Council’s website www.roxbydowns.sa.gov.au

Hard copies, for a fee, can be provided in accordance with Council’s Fees and Charges, at the Council office at 6 Richardson Place, Roxby Downs, SA 5725.

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MUNICIPAL COUNCIL OF ROXBY DOWNS Richardson Place


Phone 08 8671 0010


ABN: 68 284 130 046

REPORT FOR AUDIT COMMITTEE MEETING

Meeting Date 23 March 2018 Title of Report Review of Terms of Reference

1. Purpose To consider the draft Terms of Reference for the Audit Committee.

2. Recommendation That the Audit Committee endorses the Draft Terms of Reference for the Audit Committee and recommends adoption by the Council.

3. Background

The Terms of Reference for the Audit Committee have been reviewed and updated and a draft are presented to the Committee for consideration.

4. Discussion

The Terms of Reference are similar to those used in previous years. They recognise the unique legislative position of the Committee due to the provisions of the Roxby Downs (Indenture Ratification) Act and clarifies that the Roxby Downs Municipal Council’s Audit Committee will have the same roles and responsibilities as other Audit Committees appointed by councils across South Australia. The Terms of Reference have been changed to recognise the altered role of the Administrator and the appointment of a Chief Executive. They clarify that all meetings are to be open to the public and the agenda and minutes will be made public, subject to any confidential matters. The Terms of Reference do not include a requirement for members of the committee to submit a Declaration of Interest Primary or Annual Return (as per the Local Government Act 1999), as Council has not made a resolution that members of the Audit Committee are required to do so. The Administrator will canvas this matter with the Committee.

5. Policy Implications 5.1 Financial/Budget

Nil

5.2 Resources Nil 5.3 Legal and Risk Management

Nil

6. Report Consultation Chief Executive Administrator

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7. Attachments Draft Terms of Reference for the Audit Committee

8. Report Authorisers Alan Rushbrook Financial Advisor

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TERMS OF REFERENCE OF THE

MUNICIPAL COUNCIL OF ROXBY DOWNS AUDIT COMMITTEE

Reviewed March 2018

1. ESTABLISHMENT 1.1. Pursuant to Sections 36(1)(c) and 126 of the Local Government Act 1999 ('the Act'), the

Council establishes a committee to be known as the Municipal Council of Roxby Downs Audit Committee (“the Committee”).

1.2. By operation of the Roxby Downs (Indenture Ratification) Act 1982, the provisions of the Act which relate to the establishment and meetings of a Council Committee do not apply to the Council. However, in the interests of sound governance and accountability in decision-making, the Council requires the Committee to observe relevant provisions of the Act that are applied to it by these Terms of Reference.

2. FUNCTIONS & OBJECTIVES

The Committee is established consistent with and for the purpose of undertaking the functions set out at section 126(4) of the Act. Specifically, the Committee will undertake the following functions:

2.1. Financial Reporting

2.1.1. The Committee shall monitor the integrity of the financial statements of the Council, including its annual report, reviewing significant financial reporting issues and findings which they may contain.

2.1.2. The Committee shall review:

2.1.2.1. the consistency of, and/or any changes to, accounting policies;

2.1.2.2. the methods used to account for significant or unusual transactions where different approaches are possible;

2.1.2.3. whether the Council has followed appropriate accounting standards and made appropriate estimates and judgements, taking into account the views of the external auditor;

2.1.2.4. the clarity of disclosure in the Council’s financial reports and the context in which statements are made; and

2.1.2.5. all material information presented with the financial statements.

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Terms of Reference of the Municipal Council of Roxby Downs Audit Committee – Reviewed February 2018

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2.2. Internal Controls and Risk Management Systems

The Committee shall:

2.2.1. keep under review the application and effectiveness of the Council’s internal controls and risk management systems; and

2.2.2. review and recommend the approval, where appropriate, of statements to be included in the annual report concerning internal controls and risk management.

2.3. External Audit


2.3.1. if requested, assist the Administrator in overseeing the selection process for the external auditor.

2.3.2. if an external auditor resigns, the Committee shall investigate the issues leading to this and decide whether any action is required;

2.3.3. assist the Administrator to oversee the Council’s relationship with the external auditor including, but not limited to:

2.3.3.1. the external auditor’s remuneration, and whether the level of fees is appropriate to enable an adequate audit to be conducted;

2.3.3.2. the external auditor’s terms of engagement, including any engagement letter issued at the commencement of each audit and the scope of the audit;

2.3.3.3. satisfying itself that there are no relationships (such as family, employment, investment financial or business) between the external auditor and the Council (other than in the ordinary course of business);

2.3.3.4. monitoring the external auditor’s compliance with legislative requirements on the rotation of audit partners; and

2.3.3.5. assessing the external auditor’s qualifications, expertise and resources and the effectiveness of the audit process (which shall include a report from the external auditor on the audit committee’s own internal quality procedures);

2.3.4. liaise and meet as needed with the external auditor — the Committee shall meet the external auditor at least once a year to discuss the external auditor’s report and any issues arising from the audit;

2.3.5. review and make comment on the annual audit plan, and in particular it’s consistency with the scope of the external audit engagement;

2.3.6. review the findings of the audit with the external auditor — this shall include, but not be limited to the following:

2.3.6.1. a discussion of any major issues which arose during the external audit;

2.3.6.2. any accounting or audit judgements; and

2.3.6.3. levels of errors identified during the external audit;

2.3.6.4. review the effectiveness of the external audit;

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2.3.6.5. review any representation letter(s) requested by the external auditor before they are signed by management; and

2.3.6.6. review the management letter and management’s response (if any) to the external auditor’s findings and recommendations.

2.4. Efficiency and Economy Measures


2.4.1. propose and review, as appropriate, the exercise by the Council of the powers under Section 130A of the Act; and

2.5. Strategic and Annual Business Plans


2.5.1. make proposals and/or provide any information relevant to a review of the Council's strategic management plans and/or annual business plan.

2.6. Reporting Responsibilities

The Committee shall make whatever recommendations to the Administrator it deems appropriate on any area within these Terms of Reference where in its view action or improvement is needed there.

2.7. Other Matters


2.7.1. have access to reasonable resources in order to carry out its functions;

2.7.2. be provided with appropriate and timely training, both in the form of an induction program and on an ongoing basis for all members;

2.7.3. oversee action to follow up on matters raised by the external auditors;

2.7.4. at least once a year, formally review its own performance, constitution and terms of reference to ensure it is operating effectively and recommend changes it considers necessary to the Council for approval; and

2.7.5. consider any other matters or undertake any other tasks referred to it by the Administrator and/or the Chief Executive.

3. MEMBERSHIP

3.1. The Committee will comprise three independent members at least one of whom must have financial experience relevant to the functions of the Committee.

3.2. The Presiding Member will be determined by the Council. The term of office for the Presiding Member shall be 3 (three) years.

3.3. The role of the Presiding Member includes:

3.3.1. overseeing and facilitating the conduct of meetings in accordance with the Local Government Act and these Terms of Reference.

3.3.2. ensuring all Committee members have an opportunity to participate in discussions in an open and encouraging manner; and

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4 | P a g e

3.3.3. where a matter has been debated significantly and no new information is being discussed to call the meeting to order and ask for the debate to be finalised and the motion to be put.

3.4. The ordinary members of the Committee are appointed for a term of two years.

3.5. Members of the Committee are eligible for re-appointment at the expiration of their term of office.

4. OPERATIONAL MATTERS

4.1. The Committee does not have delegated authority to undertake any powers or functions of the Council. Accordingly, all decisions of the Committee constitute recommendations to the Council.

4.2. The Committee will meet at least four times per year on such dates and at such times as the Presiding Member of the Committee, or the Committee by resolution, may determine. The Council may direct the Committee to hold any additional meetings.

4.3. The Council will provide a support officer for the purposes of co-ordination and preparation of agendas and reports for and minutes of Committee meetings and as a point of contact for all Committee members.

5. NOTICE OF MEETING AND MEETING PROCEDURE

5.1. The Committee shall conduct its meetings in accordance with the Meeting Procedures set out in the Appendix to these Terms of Reference.

5.2. Notice of Committee meetings will be given to members of the Committee pursuant to section 87 of the Act by email or as otherwise agreed by Committee members at least three clear days before the date of the meeting.

5.3. All formally convened meetings of the Committee will be open to the public and a public notice of the meeting will be given by way of publication on the Council’s website.

5.4. A quorum for a meeting of the Committee shall be two members of the Committee.

5.5. A member may, at the discretion of the Chair of the Committee, attend and participate in the meeting by telephone or by other approved electronic means.

5.6. All members of the Committee present at a meeting must vote on a question arising for decision.

5.7. All decisions of the Committee shall be made on the basis of a majority decision of the members present.

5.8. Every member of the Committee has a deliberative vote only. In the event of a tied vote the person presiding at the meeting does not have a second or casting vote.

5.10 Insofar as these Terms of Reference do not prescribe the procedure to be observed in relation to the conduct of a meeting of the Committee, the Committee may determine its own procedure.

5.11 Any decision of the Committee must be supported in the minutes of the meeting by clear reasons for the decision.

6. CONDUCT AND DISCLOSURE OF INTEREST

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Members of the Committee must comply with the conduct and conflict of interest provisions of the Act. In particular, Sections 62 (general duties), 63 (mandatory code of conduct) and 73-74 (material conflict of interest) must be observed.

7. COUNCIL WORK BY COMMITTEE MEMBERS

At the sole discretion of the Administrator, Committee members may, if requested, perform other work for Council as a separate engagement subject to individual members declaring an interest and refraining from participating in the decision making should that matter come before the Committee for consideration.

8. REMUNERATION

Remuneration (meeting fee) for the independent members will be determined by the Council from time to time.

9. REPORTING

The Presiding Member of the Committee will, where necessary, provide a written report to the Administrator recommending any items that require a specific decision by the Council.

Roy Blight Chief Executive Enc Appendix 1 Meeting Procedures

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MUNICIPAL COUNCIL OF ROXBY DOWNS AUDIT COMMITTEE

APPENDIX 1

MEETING PROCEDURES

1. The Council requires the Committee to observe parts 1, 3 and 4 of the Local Government (Procedures at Meetings) Regulations 2000, which apply in respect of all meetings of the Committee.

2. The decision of the Presiding Member at meetings of the Committee in relation to the interpretation and application of these Meeting Procedures shall be absolute and binding on the Committee.

3. A meeting of the Committee will commence as soon after the time specified in the notice of meeting when a quorum is present.

4. The minutes of proceedings at a meeting of the Committee must include

4.1. the names of the members present at the meeting; and

4.2. the names of the mover and seconder of each motion

4.3. each motion carried or lost at the meeting; and

4.4. any disclosure of interest made by a member.

5. The minutes of the proceedings at a meeting must be submitted for confirmation at the next meeting or, if that is omitted, at a subsequent meeting of the Committee.

6. Business may only be transacted at a meeting of the Committee as follows:

6.1. by way of a motion without notice in support of a recommendation set out in an officer's report, or

6.2. by way of a motion without notice which is accepted by the Presiding Member as suitable having regard to the 'Guiding Principles' at Part 1 of the Local Government (Procedures at Meetings) Regulations, or

6.3. by way of a motion without notice which has been given consent by the meeting, or

6.4. by way of a notice of motion which has been provided in writing (together with a supporting short explanation) to the Committee support officer at least 7 clear days before the meeting at which it is to be considered.

(NOTE: for the purposes of 6.4 the motion must be provided in written form)

7. Only one amendment may be moved in relation to any motion. An amendment to a motion may not be moved by the mover and seconder of the motion.

8. Subject to clause 9 any motion or amendment which is not seconded will lapse.

9. Any motion or amendment may be varied where the mover and the seconder agree.

10. Only the mover of a motion has a right of reply.

11. A member may speak more than once to a motion with the consent of the Presiding Member or the consent of the meeting.

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Appendix Meeting Procedures for the Roxby Council Audit Committee – July 2015

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12. A member does not have a right to speak to any agenda item which is for information only unless the Presiding Member or the meeting grants consent to speak.

13. All other aspects of the meeting procedure at a Committee meeting will be determined at the discretion of the Presiding Member having regard to issues of equity and fairness and the Guiding Principles at Regulation 5 of the Local Government (Procedures at Meetings) Regulations or otherwise with the consent of the meeting.

Note: where the Presiding Member refuses to grant consent to any matter in accordance with these Meeting Procedures and provision is made for consent to be provided by the meeting, the Presiding Member must put the issue to the meeting at the request of the member seeking the consent.

Roy Blight Chief Executive

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Phone 08 8671 0010


ABN: 68 284 130 046


Meeting Date 23 March 2018 Title of Report Review of Committee’s Work plan for 2018 to 2019

1. Purpose To consider the Work Plan of the Audit Committee for 2018 to 2019.

2. Recommendation The Committee adopts the Audit Committee Work Plan for 2018 to 2019.

3. Background

At the beginning of each new Audit Committee consideration is given to the development of a Work Plan which will guide the Committee’s activities for the coming years.

4. Discussion The attached draft Work Plan supports the draft Terms of Reference and outlines when reports will be presented to the Committee for their consideration. Consistent with past practice a schedule of policies relevant to the Audit Committee has been included, the review dates of which have been coordinated with Council’s Policy Register review dates.


Budget provision has been made for the work of the Audit Committee, including meeting costs and administrative support.

5.2 Resources Staff resources to provide administrative support and production of reports. 5.3 Legal and Risk Management

Proactive program for the Audit Committee is integral to ensuring sound governance and effective oversight of Council’s business.

6. Report Consultation

Chief Executive Group Manager Corporate Services

7. Attachments Draft Audit Committee Work Plan 2018 to 2109.


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23-Mar-18

Meeting Date Activity Completion Date

Mar 18 Fraud and Corruption PolicyMar 18 Review Control track action plan progress

Mar 18 Update on Internal Audit ProgramMar 18 Whistleblower Protection Policy

Mar 18 Prudential Management Policy

Jun 18 Register of Staff Salaries - Benefits Policy

Jun 18 Rate Debt Recovery Policy

Jun 18 Credit Card Policy

Jun 18 Municipal Rating Policy

Jun 18 Disposal of Land & Assets

Oct 18 Bad Debt Policy

Oct 18 Procurement Policy

Dec 18 Budget Management Policy

Dec 18 Review Strategic Risks

Dec 18 Update on Internal Audit Program

Dec 18 Financial Internal Control Policy

Mar 19 Review Control track action plan progress

Mar 19 Gifts and Benefits Policy

Mar 19 Risk Management Policy

Mar 19 Update on Internal Audit Program

Oct 19 Asset Accounting Policy

Dec 19 Review Strategic Risks

Dec 19 Funding Policy

Dec 19 Update on Internal Audit Program

Dec 19 Treasury Policy

Municipal Council of Roxby Downs Draft Audit Committee Work Plan - 2018 to 2019

Internal Controls and Risk Management SystemsKeep under review the application and effectiveness of the Council’s internal controls and risk management systems and review and recommend the approval, where appropriate, of statements to be included in the annual report concerning internal controls and risk management.

page 1 of 3

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23-Mar-18Municipal Council of Roxby Downs Draft Audit Committee Work Plan - 2018 to 2019


Mar 18 2017/18 Budget Review 2

Jun 18 2017/18 Budget Review 3

Jun 18 2018/19 Draft Budget

Oct 18 2017/18 Budget Review 4

Oct 18 2017/18 Financial Statements

Dec 18 2018/19 Budget Review 1

Mar 19 2018/19 Budget Review 2

Jun 19 2018/19 Budget Review 3

Jun 19 2019/20 Draft Budget

Oct 19 2019/20 Budget Review 4

Oct 19 2019/20 Financial Statements


Mar 18 Audit Plan for financial year

Oct 18 Meeting with Auditors

Dec 18 Review External Auditor Management Letter

Mar 19 Audit Plan for financial year

Oct 19 Meeting with Auditors

Dec 19 Review External Auditor Management Letter

ongoing Monitor Auditors legislative compliance

ongoing Review External Auditor correspondence

Financial ReportingMonitor the integrity of the financial statements of the Council, including its annual report, reviewing significant financial reporting issues and findings which they may contain. The Committee shall review the consistency of, and/or any changes to accounting policies; methods used to account for significant or unusual transactions where different approaches are possible; whether the Council has followed appropriate accountingstandards and made appropriate estimates and judgements, taking into account the views of the external auditor and the clarity of disclosure in the Council’s financial reports and the context in which statements are made, and all material information presented with the financial statements.

External AuditAssist the Administrator to oversee the Council’s relationship with the external auditor including, but not limited to:The external auditor’s remuneration, and whether the level of fees is appropriate to enable an adequate audit to be conducted; The external auditor’s terms of engagement, including any engagement letter issued at the commencement of each audit and the scope of the audit; Satisfying itself that there are no relationships (such as family, employment, investment financial or business) between the external auditor and the Council (other than in the ordinary course of business); and monitoring the external auditor’s compliance with legislative requirements on the rotation of audit partners; Assessing the external auditor’s qualifications, expertise and resources and the effectiveness of the audit process (which shall include a report from the external auditor on the audit committee’s own internal quality procedures);Liaise and meet as needed with the external auditor and :Review and make comment on the annual audit plan, and in particular it’s consistency with the scope of the external audit engagement; review the findings of the audit with the external auditor to include, but not be limited to the following; a discussion of any major issues which arose during the external audit; any accounting or audit judgements; and Levels of errors identified during the external audit; review the effectiveness of the external audit; review any representation letter(s) requested by the external auditor before they are signed by management; and review the management letter and management’s response (if any) to the external auditor’s findings and recommendations.

page 2 of 3

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23-Mar-18Municipal Council of Roxby Downs Draft Audit Committee Work Plan - 2018 to 2019

As required


Jun 18 Draft Annual Business Plan and BudgetJun 19 Draft Annual Business Plan and Budget

as prepared Review draft Strategic Management Plans

as required


Dec 18 Review Audit Committee Performance

Oct 18 Consider Investment Report

Oct 18 Consider Report on Bad Debts written off

Dec 18 Review Audit Committee Performance

Oct 19 Consider Investment Report

Oct 19 Consider Report on Bad Debts written off

ongoing Update on Asset Management Systems

ongoing Update on Asset Management Systems

Other MattersOversee action to follow up on matters raised by the external auditors;At least once a year, formally review its own performance, constitution and terms of reference to ensure it is operating effectively and recommend changes it considers necessary to the Council for approvalConsider any other matters or undertake any other tasks referred to it by the Council and / or Chief Executive.

Strategic and Annual Business PlansMake proposals and/or provide any information relevant to a review of the Council's strategic management plans and/or annual business plan.

Reporting ResponsibilitiesMake whatever recommendations to the Administrator it deems appropriate on any area within these Terms of Reference where in its view action or improvement is needed there.

Efficiency and Economy MeasuresPropose and review, as appropriate, the exercise by the Council of the powers under Section 130A of the Act.

page 3 of 3

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Phone 08 8671 0010


ABN: 68 284 130 046


Meeting Date 23 March 2018 Title of Report Audit Committee’s Meeting Dates and Times

1. Purpose To consider the future meeting dates, times and locations of the committee.

2. Recommendation

That the Audit Committee endorses the schedule of ordinary meetings on 1 June, 9 November and 7 December 2018.

3. Background

The Audit Committee is required to meet four times a year. Most meetings are held in Adelaide, with occasional meetings in Roxby Downs.

4. Discussion

The following schedule of meetings is proposed for the Audit Committee for 2018. Date Location Friday, 1 June 2018 Roxby Downs Friday, 9 November 2018 Adelaide Friday, 7 December 2018 Adelaide

Should matters that arise that require the convening of the Audit Committee at times other than the dates above this will be arranged through direct communication with members of the committee. It is proposed that subject to the continued support of the Local Government Finance Authority the Adelaide meetings be held at the Boardroom of the Local Government Finance Authority. Meetings at Roxby Downs will be held in the Council Boardroom. Meetings will be scheduled to start at 10:00am and would not be expected to extend beyond midday.


Nil

5.2 Resources Staff time to organise meeting arrangements, logistics and travel. 5.3 Legal and Risk Management

Under the Terms of Reference for the Committee four (4) ordinary meetings will be held each year.

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6. Report Consultation Administrator Chief Executive Group Manager Corporate Services


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Phone 08 8671 0010


ABN: 68 284 130 046


Meeting Date 23 March 2018 Title of Report Budget Development Timetable

1. Purpose To consider a development timeline for the 2018-2019 Annual Business Plan and Budget.

2. Recommendation That the Audit Committee notes the timeline adopted by the Council at its meeting on 28 February 2018.

3. Background

Council is required to adopt an Annual Business Plan and Budget. The development process is complex and lengthy, so a schedule of key activities is required for internal management and monitoring of the process.

4. Discussion

The timeline aims for the adoption by Council of the Annual Business Plan & Budget at the Council meeting scheduled for Wednesday 27 June 2018. This will be one month earlier than for the previous year. The Audit Committee will be presented with the Draft Budget and Annual Business Plan together with the public consultation results at the meeting schedule for 1 June 2018.


Nil


This policy provides guidance on the management of interest rate risks, for both loans and investments


Chief Executive Administrator Financial Advisor

7. Attachments 2018-2019 Budget Development Timeline

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8. Report Authorisers Drew Ellis Group Manager Corporate Services

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Activity Date Comments

Draft Long Term Financial Plan updated Tue 27/02/2018 Update for F17 actual and F18 budget

Workforce Plan F19 Tue 27/02/2018 All SMTs to consider structure, resources, trg

& development issues

Annual Business Plan & Budget development

starts Wed 28/02/2018

Budget templates to relevant officers Wed 28/02/2018 They have until 9/3 to complete

Group Managers present strategic projects to

Senior Management TeamWed 28/02/2018 Supported by agreed business case template.

Liaise with Council officers as required

Payroll modelling Tue 6/03/2018

Budget lists from Officers to Group Manager

Corporate Services together with justifications

and explanatory narratives

Fri 9/03/2018

Strategic projects proposed by Senior

Management Team reviewed in aggregateFri 16/03/2018 To be reviewed 23/3/18

Power, Sewer & Water modelling Tue 13/03/2018

Asset Maintenanace & Renewal Program end of March Project by Michael Lange completed.

Strategic projects agreed by Senior

Management Team Fri 23/03/2018

BHP & Dept of Premier and Cabinet

ConsultationMarch/April

Draft document completed and authorised for

release for public consultationTue 3/04/2018

Placement of document, promotion &

advertising consultation & recruitment of

submissions

April

Annual Business Plan consultation begins Mon 9/04/2018

Annual Business Plan workshop Thurs 19/04/2018 Last year was Wed 10/5/17

Written submissions close Mon 30/04/2018 Last year was Mon 29/5/17

Rates modelling Tue 8/05/2018 Or when data available

Public Hearing - Opportunity for verbal

submissions to Council from publicWed 23/05/2018 Last year was Wed 7/6/17

Formal Council adoption of Annual Business

Plan and Budget Wed 27/06/2018 Last year was Wed 26/7/17

Proposed 2018/2019 Budget Development Timeline

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ABN: 68 284 130 046

REPORT FOR AUDIT COMMITTEE MEETING Meeting Date 23 March 2018

Title of Report Second Quarter Budget Review

1. Purpose

To consider a review of Council’s 2017/2018 budget performance and associated matters.

2. Recommendation

That the Audit Committee recommends to Council that it adopts the Second Quarter BudgetReview 2017/2018 as delineated in item 4 below.

3. Background

Council is required by legislation to review its budget on four occasions each financial year.

4. Discussion

A review of the budget against 31 December 2017 actuals was undertaken. The financialstatements attached to this report show the adopted budget, the budget inclusive of therecommended changes (Review 2) and the actuals as at 31 December 2017.

Actuals were found to be tracking well against the adopted budget for most accounts.Budget accounts identified as requiring adjustment have been examined andrecommendations provided.

The impact of these changes on the budget can be summarised as follows:Income: to be increased by $19K Expenses: to be increased by $60K Overall impact on ‘operating’ budget: $41K (reduction in surplus).Capital expenditure: to be reduced in CY by $165K (a saving this FY)

As a result of the review the following adjustments are recommended to be made to the2017/18 annual budget.

Item Account Account type: Income (I)

Expenditure (E) Capital (C)

Comments Impact on Operating

Surplus $’000

1 Investment Income

I Higher than expected interest earned

19

2 Insurance E Income protection insurance adjustment for prior year based on audited salaries and wages paid calculations

-20

3 Other Cultural Expenses Community Art

E Arts Strategy submission – approved by Administrator 3/1/18

-8

4 Pool Operating E The cost of water usage was underprovided for. This was due largely to the introduction of the

-42

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splashpad and an insufficient allowance for water losses through evaporation and usage over the summer quarter. Further, a significant internal credit in the prior year (16/17) actuals (that related to the prior year 15/16) distorted the 16/17 actual. The ‘reasonableness check’ of the proposed 17/18 budget numbers was based largely upon this distorted 16/17 actual.

5 Pool Building Maintenance

E Pool resurfacing – allowance provided on basis of original verbal estimate. Following physical inspections of required works by possible suppliers revealed the estimate was not realistic

-18

6 Oval surface Main Maintenance

E The expense relating specifically to water irrigation was underestimated. The budget was based on consistent watering patterns across the FY, and not on actual seasonal usage patterns (ie higher watering demands over summer). (This was due largely to the timing of the budgeting process, meaning summer usage numbers were not available at the time). The budget methodology around water usage has now been changed and should ensure more accurate water usage predictions.

-112

7 Leisure Admin Operating

E Council is now expecting to achieve a saving in this expense line. These savings will help offset item 5

100

8 Functions Operating

E The pattern of functions hosted by Roxbylink has changed, both in timing and nature. This FY has seen fewer but larger functions condensed into fewer months. There are now few remaining functions expected to be held for the remainder of the FY. Most of the unspent budgeted amount is now available to be realised as a budget saving. The function-related income is still expected to be consistent with that budget line

40

9 Computer Software

C Refer to attached report 6.13 Review of ICT Major Projects

255

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2017-2018’. This budget adjustment relates collectively to 2 separate projects: - Deferment or re-think of

Open Office replacement - Bringing forward of Asset

Management System (a reprioritisation based on revised internal assessment)

10 New Project C Off leash dog park. Collaborations with Roxby Downs Area School to design what the off leash dog park should look like and where ideally it should be located. Evaluating project submissions to determined preferred design and location. Proposal will then be subject to public consultation and feedback results will be further considered prior to forming a business case to look at design and location. This process will extend into FY2018 prior to the commencement of construction works

40

11 Richardson Place Redevelopment

C Co-contribution by Council to match State Government grant funding for Richardson Place Upgrade

-130

These proposed changes, if adopted, will lead to an overall operating budget for the FY of: After 2nd Qtr Review After 1st Qtr Review Original Total Income $17,435K $17,416K $17,446K Total Expenses ($17,581K) ($17,521K) ($17,034K) Operating (Deficit) ($146K) ($105K) $412K

Council has not yet adopted this review, and it is earmarked for its consideration again at next Council Meeting on 28 March 2018.


Nil


Nil

6. Report Consultation Chief Executive Administrator

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Financial Advisor

7. Attachments Budget Financial Statements


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Phone 08 8671 0010


ABN: 68 284 130 046


Meeting Date 23 March 2018 Title of Report 2018-2019 Budget Assumptions

1. Purpose To advise the Audit Committee of initial assumptions shaping the preparation of the 2018-2019 budget.

2. Recommendation That the Audit Committee convey to Council that the initial assumptions behind the preparation of the 2018-2019 budget appear to be sound and reasonable.

3. Background Council is required by legislation to prepare an annual budget. The 2018-2019 budget will be prepared in the following context:

Review of the Long Term Financial Plan (LTFP) is underway Dependent relationship with BHP and State Government Fluctuating property valuations Local economic activity is driven by BHP Local cost factors re major projects and works, especially in relation to contractors timing

and availability Additions to Senior Management Team (including new Chief Executive & Group Manager

Essential Services & Assets) and restructuring which has resulted in cost reductions.

4. Discussion The following key assumptions have been assessed as having a significant impact on the 2018-2019 budget: General economic activity in Roxby Downs will be characterised by:

Continued low vacancy rates for rental properties Increased property sale activity Property prices to rise marginally (assumed based on expected 8% increase in SA (VG,

unofficial presentation to RPSA, Feb 2018)) Staff turnover to be consistent with 2017-2018 levels Residential population to grow marginally over 2017-2018 levels Demand for electricity to be consistent with 2017-2018 Demand for water to be consistent with 2017-2018

General rates Overall revenue from general rates will reflect Council’s intention to pass on a 0% increase (notionally) over 2017-2018 levels. This will be third consecutive year without any increase. Electricity demand This will be materially consistent with 2017-2018 levels. Tariff increases to be in the order of 1% at 1 July 2018 (based on the realignment of review date with financial year). Solar buy-back rate to continue to trend down over time. For budgeting purposes, and to be conservative, the current rate of 16.3 cents per kW/hr to be used.

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Water demand This will be materially consistent with 2017-2018 levels. Tariffs expected to change by 1% at 1 July 2018 (based on realignment of review date with financial year). Municipal Deficit Funding From BHP & State Government assumed to be consistent with 2017-2018. Asset maintenance costs These are expected to increase in line with the age of the assets. General cost of goods and services Where actual costs cannot be predicted reliably, an allowance for general CPI increase of 2.0% will be used (based on 1.9% Australia, December quarter), except for contract-related costs which will use the higher Local Government Price Index (LGPI) rate of 2.9%. The LGPI showed annual 2.9% (SA) and 2.3% (Adelaide only) based on the December quarter. Operational efficiency to improve through new software systems (eg Asset Management System). Staff remuneration Every employee under the EA will receive a scheduled automatic increase of 1.5% on 1 January 2019. Contracted senior managers will be subject to individual performance based contracts. Capital expenditure There will be no new major projects without majority funding from external sources (eg. Grants). Non-externally funded capital expenditure will be limited to renewal and replacement of existing assets.

5. Policy Implications 5.1 Financial/Budget 5.2 Resources 5.3 Legal and Risk Management

6. Report Consultation Chief Executive Financial Advisor Group Manager Lifestyle & Sports Group Manager Governance & Community Group Manager Essential Services and Assets

7. Attachments Funding Policy


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roxbycouncil FUNDING Policy Date |20.12.17

Page 1 of 4

POLICY


Original Adoption Date 20.12.17

Current Adoption Date 20.12.17

Audit Committee Review Date 24.11.17

Date of Review 20.12.19

TITLE FUNDING

Latest Review Changes This policy replaces the Fees and Charges Guidelines Policy



24 November 2017


Local Government Act 1999, - Section 133 - Sections 146 – 166 - Sections 182 and 182A

Local Government (Financial Management) Regulations 2011 - Regulations 5, 6 and 7

Roxby Downs (Indenture Ratification) Act, 1982


Budget Management Policy

Municipal Rating Policy

Leases and Licences to Sporting and Community Organisations

Treasury Policy

Related Procedures:


Rating and Other Funding Policy Options – Local Government Association Financial Sustainability Information Paper No 20.

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Page 2 of 4

1 INTRODUCTION

This policy sets out Council’s approach to the funding of services.

The policy is based on an assessment of the beneficiaries of all of Council’s services and how these should be funded. It provides the framework within which Council will raise the revenue necessary to fund expenses of programs set out in its long-term financial plan.

2 POLICY OBJECTIVES

The Funding Policy reflects Council’s determined balance between the principles of:

i. user-pays or beneficiary pays; ii. capacity to pay of different sections of the community; iii. costs of provision of services; iv. where relevant, prices charged by others for provision of similar services; v. maximising sourcing of external funding; vi. accommodating individual circumstances of financial hardship; and vii. achieving and preserving reasonable inter-generational equity.

3 POLICY STATEMENTS

3.1 Long-term Financial Plan

Council will adopt a 10 year Long-term Financial Plan (LTFP) that sets out the funding (revenue raising) requirements to equitably fund the identified community needs and preferences in its Strategic Management Plan’s.

The LTFP has also been based on achievement of the targets set by Council for each of its financial sustainability indicators as set out in its Budget Management Policy.

3.2 Budget Planning and Management

Council’s annual budget will be based on the relevant year of its LTFP and in particular the financial strategy that will ensure attainment of specified financial indicator targets for the year, as outline in its Budget Management Policy. Decisions regarding the range and level of services and infrastructure provided will take into account the need to maintain long-term financial sustainability without future unplanned increases in rates or disruptive cuts to services.

3.3 Financial Assistance and Other Discretionary Grants Council receives ongoing Commonwealth Financial Assistance Grants through the SA Local Government Grants Commission (LGGC). Similarly Roads to Recovery Grants from the Commonwealth are an important funding source. Historically, Council has also received funding from the State Government and BHP in accordance with the provisions of the Roxby Downs (Indenture Ratification) Act 1982 which has been used to fund Council activities.

3.4 Specific Purpose Grants Council recognises that opportunities arise from time to time to secure grants or funding for specific projects or purposes.

Council will pursue such opportunities where the funding objectives support the directions of its Strategic Management Plan and its financial sustainability objectives.

When considering a specific purpose grant or funding opportunity Council will assess the whole-of-life costs of a project (including maintenance and other

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Page 3 of 4

operating costs over the life of the project) and will consider the impact of these costs on Council’s financial sustainability indicators over the life of the project

3.5 General and Other Rates Council will raise general and other rates from its community in accordance with its Municipal Rating Policy.

Council’s Municipal Rating Policy sets out its application of the following rating provisions contained in the Local Government Act 1999:

Basis of valuation for rating purposes minimum rates or fixed charges; separate rates; service rates and charges; differential rates; rate rebates; postponement of rates.

Council keeps its Municipal Rating Policy under review to ensure it has appropriate regard for Council’s Funding Policy objectives (outlined in 2. above) and in particular any material changes in:

capacity to pay within sections of the community; the extent of opportunity of access to, use of, and benefit from, Council

services by various groupings of service users and ratepayers

Revenue from general rates helps meet a substantial part of the cost of Council services and activities that are widely available to ratepayers.

3.6 User Charges To reduce dependence on rate revenue Council applies user charges to meet the cost of its services where this is equitable, efficient and practical. Charges set have regard to Council’s costs, the benefits to direct users and others from the provision of the services and prices charged elsewhere for similar services.

Council’s user charges are set out in Council’s Fees and Charges Register. The following principles are applied in the setting of fees and charges in each of Council Business Units. Municipal Activities Fees set by regulation will be charged at the regulated rates. Fees and charges for miscellaneous items such as printing and photocopying are set mainly on a commercial basis. Roxby Link Fees for the use of facilities by community organisations are determined in accordance to the provisions of the Leases and Licences to Sporting and Community Organisations Policy. Fees for commercial activities will be set at competitive rates which seeks to cover costs. Participants in sporting and recreational activities will be expected to contribute towards the cost of providing the facilities and / or staff for their activity and fees will

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http://www.legislation.sa.gov.au/LZ/C/A/LOCAL%20GOVERNMENT%20ACT%201999.aspx


Page 4 of 4

be set at a rate which both encourages the use of the facilities and participation in the events. Generally, fees for children will set at a lower rate than adults. Roxby Power Electricity tariffs are set after consideration of contemporary principles of pricing setting for monopoly electricity retailers. Council also has to comply with the requirements of the Roxby Downs (Indenture Ratification) Act 1982, with respect to electricity tariffs. Council will ensure that all costs, including the replacement of assets are taken into account when setting fees. Roxby Water Water tariffs are set after consideration of contemporary principles of pricing setting for monopoly water retailers, including the National Water Initiative guidelines. Council will ensure that all costs, including the replacement of assets are taken into account when setting fees. Each year a Water Pricing Policy Statement is considered by Council, which describes how the new water tariffs have been determined.

3.7 Borrowings Loan funds can be a valuable source of funding for capital expenditure when Council does not have sufficient fund of its own for a particular project. Council takes a holistic view of its Treasury Management and may use short term borrowing to support its ongoing activities Council manages decisions about when to borrow and what type of borrowings to raise in through its Budget Management and Treasury Policies.

3.8 Private Sector Contributions/Partnerships Council will seek private sector funding for projects e.g. through joint venture, grants or provision of infrastructure etc where this is considered beneficial to the community. In assessing the community benefit of such arrangements Council will take account of its financial exposure through an analysis of the whole-of-life costs of the project and ensure there is appropriate due diligence undertaken, and transparency, before entering into a significant private sector partnerships.



5. ACCESSIBILITY



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Phone 08 8671 0010


ABN: 68 284 130 046


Meeting Date 23 March 2018 Title of Report Internal Controls

1. Purpose To provide an update to the Audit Committee on internal controls.

2. Recommendation That the Audit Committee notes this report.

3. Background Council is subject to review of its internal controls. This is done both internally and externally. Internal reviews are conducted by the Financial Advisor on a monthly basis, and by external auditors on an annual basis. The data management system that is used to report on the internal controls is Controltrack. The Controltrack system is accessed via a web portal under an annual licence agreement. The Controltrack system enables internal controls to be ‘assessed’ by relevant officers, and then the assessments ‘reviewed’ by a relevant, (generally) more senior officer. This process results in a rating for each control from which areas of risk can be identified and reported. Other aspects of our internal controls include CCTV which is employed as a means of supervising staff when engaged in key, high-risk activities (eg . cash handling). Council is currently undertaking a review of the CCTV plan, part of which aims to ensure that CCTV cameras have adequate coverage of areas where cash is handled at tills and where banking deposits are prepared. Separation of duties, as well as reconciliations (& their independent review) also form an important part of Council’s internal controls. These are reviewed and reported on regularly.

4. Discussion Council is using the same version of Controltrack for 2017-2018 that it used last year. Although an upgraded version was offered (and at a similar cost), Council opted to stick with the more familiar version for one more year. The main thinking behind this decision was that it would be preferable to defer needing to have several staff ‘learn’ how to use a new version of the system given all the other operational priorities they are facing at the moment. Council has been assured by the Auditors that this version will satisfy their requirements in terms of compliance with Australian Accounting Standards. Council is likely to upgrade to the newer version for 2018-2019 FY. The Controltrack activities will run concurrent with other Annual Business Plan & budget processes. An indicative timeline for the 2017-2018 Controltrack activities is: - ‘Assessments’ will begin mid-March and continue for around four weeks. - The ‘reviews’ window will then open and remain open for around three weeks.

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Nil


Controltrack is a primary tool in identification, rating and reporting of risks.

6. Report Consultation Chief Executive Financial Advisor


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Phone 08 8671 0010


ABN: 68 284 130 046


Meeting Date 23 March 2018 Title of Report Asset Management System Update

1. Purpose To provide an update to the Audit Committee on how the procurement of an Asset Management System is progressing.

2. Recommendation That the Audit Committee notes this report.

3. Background

Council is the owner/controller of fixed assets with a value in excess of $120m. The operational and financial management of these assets has been done without a dedicated, purpose-built system. To date an internally-built spreadsheet has represented Council’s asset management system. Council was influenced to reassess its software system priorities by the following key events: - The departure of senior manager, Iain Boehm (who held most of the asset-related

expertise and had developed & maintained the spreadsheet in use by Council) - The prior year’s ‘incomplete’ asset revaluation project - Auditor comments (Interim Audit Report) around asset management and the need for a

suitable asset management system

4. Discussion

Council has embarked on a project to procure a suitable asset management system. A summary of the procurement process to date is: - A project team was established comprising: Group Manager Corporate Services, the

Financial Advisor, Acting Group Manager Essential Services & Assets and ICT Officer. - A review of the IT market was conducted and suitable candidate systems identified. - A limited Request for Expressions of Interest was sent to suppliers of the candidate

systems. - EOIs were received from all four candidates. The four candidates were: Assetic,

Conquest, Confirm & Open Office. The EOIs included information that had been specifically requested and related to Council’s specific system requirements.

- A comparative review was conducted of each EOI by each project team member independently. From this review, one candidate, Open Office, was eliminated.

- Product demonstrations were then arranged for each of the remaining candidate systems. These demonstrations have now been completed and the team are again re-assessing each system based on the demonstrations. One or more may be eliminated once this assessment has been completed.

Remaining activities in the procurement process will include: - Formal tender process - Selection of preferred system - Contract negotiations

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Before installation and training on the new system can be implemented, Council intends to: - Appoint a dedicated council officer to maintain the system and be responsible for

administrative support to the Essential Services and Assets team - Conduct a review (either internal or external) of asset data to assess its integrity and

condition for inputting into the new system.

These activities may take some time and could potentially push the system delivery timeframe into the 2018-2019 FY.


Refer below in 5.2.

5.2 Resources

The need for a dedicated employee to manage the data in the new system has been identified by Council. This is likely to be in the order of 0.5 FTE and is being factored in to the 2018-2019 payroll budget.

5.3 Legal and Risk Management

Implementation of a suitable system will satisfy a specific point raised by auditors in their Interim Audit Report 2016-2017.


Chief Executive Financial Advisor


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Phone 08 8671 0010


ABN: 68 284 130 046


Meeting Date 23 March 2018 Title of Report Strategic Operational Risk Review Update

1. Purpose To provide the committee with an update on the review of Council’s Strategic Risk & Operational Management Plan

2. Recommendation That the Audit Committee recommend to Council the adoption of the Consequence Rating Table and Risk Matrix for the purposes of the 2018 review of the Council’s Key Strategic and Operational Risk Profile. The report on the review of Council’s Strategic Risk Management Plan be received and noted.

3. Background In 2015 the Municipal Council of Roxby Downs conducted a risk management project facilitated by Powell & Co. The project included a review of the Roxby Risk Policy, training on risk management and a workshop with key personal to identify and assess key strategic and operational risks for the Council. The project resulted in the production of the Key Strategic and Operational Risk Profile. Risk management is included in Senior Management Team (SMT) meeting programs on a recurrent theme for evaluation of known and documented risk, as well as consideration of new/emerging risks/situations.

4. Discussion The Council’s SMT has commenced an update of the Key Strategic and Operational Risk Profile. This has included an initial workshop on the results of the previous work. In terms of continuity only one member of the Council’s management group involved is currently employed with Council (Michelle Hales – then Manager Corporate Strategy and Governance now holding the position of Group Manager Governance and Community). The Consequence Rating Table and the Risk Matrix developed in 2015 have been assessed as remaining relevant for 2018. A copy of the Consequence Rating Table and the Risk Matrix are attached to this report. The endorsement of the Audit Committee is sought for the continued of the Consequence Rating Table and the Risk Matrix. The work plan for the current update includes:

SMT consultation Referral to Council’s Audit Committee Report to Council

5. Policy Implications

5.1 Financial/Budget

Part of Council’s ongoing governance obligations and commitment.

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5.2 Resources

In house Staff resources for consultation and production. Consultation with Local Government Risk Services through their Regional Outreach and Extension Program.


Ongoing maintenance and evaluation of Strategic and Operational Risk Profile is an integral part of Council’s strategic management planning under the Local Government Act.


7. Attachments Consequence Rating Table Risk Matrix

8. Report Authorisers Roy Blight Chief Executive

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Powell & Co

Page 7

Consequence Rating CONSEQUENCES

Insignificant (E) Minor (D) Moderate (C) Major (B) Catastrophic (A)

R

ISK

CA

TE

GO

RIE

S

SUMMARY Minimal, no injury or barely noticeable. Immaterial, slight injury or insignificant deficiency

Material, considerable injury or significant deficiency.

Sever, extensive injury or significant deficiency.

Catastrophic, fatal or complete failing.

FINANCIAL Financial impact (expenditure or revenue) <$50,000. (Budget variation manageable in the short term).

Financial impact (expenditure or revenue) between $50,000 -$250,00

(Budget variation manageable without impact on bottom line of budget absorbed over current financial year).

Financial impact (expenditure or revenue) between $250,000-$1,000,000.

(Impact on budget beyond current financial year but manageable within next financial year).

Financial impact (expenditure or revenue) between $1,000,000 – $5,000,000.

(Impact on budget with recovery over proceeding two or three financial years).

Financial impact (expenditure or revenue) $5,000,000 (Impact on budget with recovery over proceeding three or more financial years).

EMPLOYEE WELFARE /

PUBLIC SAFETY

Injuries requiring localised treatment/first aid; or Injury involving lost time in the work place.

Injury requiring professional medical intervention. Hospital admission as an inpatient for

1-2 days

Routine and follow up medical attention after initial medical treatment.

Hospital admission as an inpatient for 3-5 days

Temporary disability.

Long term hospital admission

Permanent disability; or death.

LEGAL Dispute that may be resolved without legal remedy or internal consultation only.

Fines or penalties of a minor nature being imposed on the Council. .

Council directed to undertake specific activities to remedy breaches in legislation. or

Involvement of legal firms

Deliberate breach or gross negligence/ Formal investigations from third

parties (Ministerial Involvement or Ombudsman)

Major breach of legislation resulting in major Council penalties, fines; or Imprisonment of Council staff; or Class Action.

ENVIRONMENT Minor adverse event that can be remedied immediately.

Isolated instances of environmental damage requiring effort to fix in the short term and reversible.

Adverse events that cause widespread damage but reversible in the short to medium term.

Significant adverse event causing widespread damage which may be reversed through appropriate remedial action in the medium term.

Major adverse environmental event requiring continuing long term remedial attention.

REPUTATION / BRAND IMAGE /

POLITICAL

No media attention. A number of adverse local complaints. Increase use of staff resources to

manage the event

Localised community concern. Media coverage but not adverse

State wide adverse media attention; or Detrimental inter-governmental relationships.

National adverse media attention; or Ongoing disagreement between State Government and the Council.

Prolonged adverse media attention; or Irreparable damage to government relations; or Mayor / Councillors / CEO forced to resign.

SERVICE DELIVERY

Interruption to a service not requiring any further remedial action and with minimal impact on customers.

Interruption to a service requiring further remedial action and with moderate impact on customers.

Interruption to core business function or essential service with significant customer impact for up to 48 hrs.

Interruption to core business function or essential service for 2-7 days.

Interruption to core business function or essential service for more than 7 days.

Page 64

Powell & Co

Page 8

Risk Matrix The final risk score for each risk is calculated as the product of the likelihood and consequence scores producing ratings as outlined below:

Determine a Risk Rating

CONSEQUENCE

Insignificant

(E)

Minor

(D)

Moderate

(C)

Major

(B)

Catastrophic

(A)

Almost Certain (5) Medium

High High Extreme Extreme

Likely (4) Medium

Medium

High High

Extreme

Possible (3) Low Medium

High High High

Unlikely (2) Low Low Medium

Medium

High

Rare (1) Low Low Medium

Medium

High

Page 65



Phone 08 8671 0010


ABN: 68 284 130 046

REPORT FOR AUDIT COMMITTEE MEETING Meeting Date 23 March 2018 Title of Report Fraud and Corruption Prevention Policy

1. Purpose To review the Fraud and Corruption Prevention Policy

2. Recommendation

That the Audit Committee recommends that Council adopt and implement the revised Fraud and Corruption Policy.

3. Background The Fraud and Corruption Prevention Policy is due for periodic review. This policy aims to protect public funds and assets and the integrity, security and reputation of the Council. It outlines the Council’s approach to preventing, minimising, identifying and controlling fraudulent/corrupt behaviour and summarises the associated responsibilities of Council and Council Employees

4. Discussion The Fraud and Corruption Policy has been updated to align with the model policy developed by the Local Government Association. Due to the change in Council’s Governance Structure and division of responsibilities on 31 July 2017 some references to the Administrator have been replaced with Chief Executive.


Nil 5.2 Resources

Nil


The Local Government Act 1999 requires that councils have appropriate policies, practices and procedures in place to ensure compliance with statutory requirements and to achieve and maintain standards of good public administration.


Senior Management Team

7. Attachments Fraud and Corruption Prevention Policy

8. Report Authorisers Michelle Hales Group Manager Governance and Community

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roxbycouncil POLICY – FRAUD AND CORRUPTION

PREVENTION Policy Date |30.05.13

Electronic version on the Intranet is the controlled version. Printed copies are considered uncontrolled.

Before using a printed copy, verify that it is the current version. Page 1

POLICY

Responsible Department Human Resources





TITLE POLICY Fraud and Corruption Prevention

Latest Review Changes Updated to reflect the Model Policy developed by the Local Government Association


17.11.11

30.05.13


17.11.11

30.05.13


Local Government Act 1999 Criminal Law Consolidation Act 1935 Independent Commissioner Against Corruption Act 2012 Whistleblowers Protection Act 1993


Code of Conduct for Local Government Employees Gifts and Benefits Policy Internal Control Policy Whistleblowers Protection Policy

Related Procedures:


Fraud and Corruption Prevention Model Policy – Local Government Association SA

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1. Introduction

1.1 Roxby Council ("the Council") is committed to acting in the best interest of the

community and to upholding the principles of honesty, integrity and transparency, which are all key components of good governance.

1.2 The Council recognises that Fraud and Corruption in Public Administration have the

potential to cause significant financial and non-financial harm and that, therefore, the prevention and control of Fraud and Corruption should feature predominantly within the systems and procedures of a responsible Council.

2. Policy Statement

2.1 This Policy is designed to protect public funds and assets and the integrity, security

and reputation of the Council.

2.2 This Policy outlines the Council's approach to the prevention or minimisation, identification and control of fraudulent and/or corrupt activity and, summarises the associated responsibilities of Council and Council Employees.

2.3 The Council will not tolerate fraudulent or corrupt activity and is committed to its control

and prevention by:

complying with the requirements of the Independent Commissioner Against Corruption Act 2012 (ICAC Act);

establishing and maintaining an effective system of internal controls and enforcing compliance with those controls;

regularly undertaking risk assessments to identify circumstances in which fraud and corruption could potentially occur;

implementing fraud and corruption prevention and mitigation strategies in its day to day operations;

taking appropriate action in response to allegations of fraudulent and/or corrupt activity including, reporting allegations in accordance with the ICAC Act and the reporting system established by the Independent Commissioner Against Corruption (ICAC) under section 20 of the ICAC Act and where allegations are substantiated, in addition to applicable criminal sanctions, may take disciplinary action in accordance with the Codes of Conduct for Council employees or, if relevant, a Council Employee’s contract of employment with the Council;

ensuring all Council Employees are aware of their obligations in regards to the prevention of fraud and corruption within the Council and the inclusion of preliminary education in any induction process;

active participation in education and evaluation of practices relevant to fraud and corruption;

fostering an ethical environment in which dishonest and fraudulent behaviour is actively discouraged; and

generating community awareness of the Council's commitment to the prevention of fraud and corruption.

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3. Scope

3.1 This Policy is intended to complement and be implemented in conjunction with other Council policies, including:

Whistleblower Protection Policy;

Internal Control Policy;

Code of Conduct for Local Government employees;

Gifts & Benefits Policy. 3.2 This Policy applies to all disclosures that relate to the actual or suspected occurrence

of fraud and/or corruption within the Council.

4. Definitions

For the purposes of this Policy the following definitions apply: 4.1 Corruption in public administration means:

a) an offence against Part 7 Division 4 (Offences relating to public officers) of the Criminal Law Consolidation Act 1935, which includes the following offences: (i) bribery or corruption of public officers;

(ii) threats or reprisals against public officers;

(iii) abuse of public office;

(iv) demanding or requiring benefit on basis of public office;

(v) offences relating to appointment to public office.

b) any other offence (including an offence against Part 5 (Offences of dishonesty)

of the Criminal Law Consolidation Act 1935) committed by a public officer while acting in his or her capacity as a public officer or by a former public officer and related to his or her former capacity as a public officer, or by a person before becoming a public officer and related to his or her capacity as a public officer, or an attempt to commit such an offence; or

c) any of the following in relation to an offence referred to in a preceding paragraph:

(i) aiding, abetting, counselling or procuring the commission of the offence;

(ii) inducing, whether by threats or promises or otherwise, the commission of the offence;

(iii) being in any way, directly or indirectly, knowingly concerned in, or party to, the commission of the offence;

(iv) conspiring with others to effect the commission of the offence.

4.2 Directions and Guidelines is a reference to the Directions and Guidelines issued pursuant to section 20 of the ICAC Act, which are available on the Commissioner’s website (www.icac.sa.gov.au)

4.3 An Employee is any person who is employed by the Council, but also includes any

contractors, volunteers and consultants undertaking work for, or on behalf of the Council.

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http://www.legislation.sa.gov.au/index.aspx?action=legref&type=act&legtitle=Criminal%20Law%20Consolidation%20Act%201935





4.4 A False Disclosure is a disclosure of information relating to Fraud or Corruption that is made by a person who knows the information to be false or, who is reckless as to whether it is false.

4.5 Fraud is an intentional dishonest act or omission done with the purpose of deceiving. Note: unlike ‘Corruption’ there is no statutory definition of ‘Fraud’. Fraud is a style of

offending. The offences addressed under Part 5 and Part 6 of the Criminal Law Consolidation Act 1935 are considered to constitute Fraud offences

4.6 Independent Commissioner Against Corruption (Commissioner) means the

person holding or acting in the office of the Independent Commissioner Against Corruption.

4.7 Manager means any Employee of the Council who is responsible for the direct

supervision of other Employees, and/or, for the management of a Council Department. 4.8 Office for Public Integrity (OPI) is the office established under the ICAC Act that has

the function to:

(a) receive and assess complaints about public administration from members of the public;

(b) receive and assess reports about corruption, misconduct and maladministration in public administration from the Ombudsman, the Council and public officers;

(c) make recommendations as to whether and by whom complaints and reports

should be investigated;

(d) perform other functions assigned to the Office by the Commissioner. 4.9 Public administration defined at section 4 of the ICAC Act 2012 means without

limiting the acts that may comprise public administration, an administrative act within the meaning of the Ombudsman Act 1972 will be taken to be carried out in the course of public administration.

4.10 Public Officer defined under the ICAC Act 2012 includes:

a Council Member;

a member of a Local Government body (including a subsidiary of a council established under the Local Government Act 19990 ; and

an Employee or Officer of the Council;

4.11 A Responsible Officer is a person (or persons) appointed by the Council pursuant to

section 302B of the Local Government Act 1999 who is (are) authorised to receive and act upon disclosures of public interest information reported to him/her under the Whistleblowers Protection Act 1993.

5. Prevention

5.1 The Council recognises that:

the occurrence of fraud and corruption will prevail in an administrative environment where opportunities exist for waste, abuse and maladministration; and

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the most effective way to prevent the occurrence of fraud and corruption is to promote an ethical environment in which internal control mechanisms have been implemented.

5.2 In general, the Council expects that Public Officers will assist in preventing fraud and

corruption within the Council by:

understanding the responsibilities of their position;

familiarising themselves with the Council’s policies and procedures and adhering to them;

understanding what behaviour constitutes fraudulent and/or corrupt conduct;

maintaining an awareness of the strategies that have been implemented by the Council to minimise fraud and corruption;

being continuously vigilant to the potential for fraud and/or corruption to occur; and

reporting suspected or actual occurrences of fraud or corruption in accordance with Part 7 of this Policy

5.3 Specific Responsibilities

5.3.1 Collectively, as the decision making body of the Council, the Administrator is responsible for ensuring that the Council:

o promotes community awareness of the Council's commitment to the prevention of fraud and corruption;

o provides adequate security for the prevention of fraud and corruption. This includes the provision of secure facilities for storage of assets, and procedures to deter fraudulent or corrupt activity from occurring;

o provides mechanisms for receiving allegations of fraud or corruption, including by ensuring a Responsible Officer is appointed;

o ensures that, where appropriate, proper investigations are conducted into allegations that involve fraud or corruption;

o makes reports in accordance with Part 7 of this Policy and facilitates cooperation with any investigation undertaken by an external authority (such as SAPOL or the Commissioner);

o ensures that all Employees are aware of their responsibilities in relation to fraud and corruption through the provision of appropriate and regular training;

o promotes a culture and environment in which fraud and corruption is actively discouraged and is readily reported should it occur; and

o undertakes a fraud and corruption risk assessment on a regular basis.

5.3.2 Managers are responsible for:

o the conduct of any Employees whom they supervise and, will be held accountable for such;

o any property under their control and, will be held accountable for such;

o reporting in accordance with Part 7 of this Policy

o creating an environment in which fraud and corruption is discouraged and readily reported by Employees. Such an environment shall be fostered by the Manager's own attitude and behaviours to fraud and corruption and, by the accountability and integrity they both display and encourage from other Employees;

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o ensuring that new Employees for whom they are responsible are aware of their responsibilities in relation to fraud and corruption and, of the standard of conduct expected from all Employees as outlined in the Code of Conduct for Council Officers and this Policy;

o identifying potential fraud and corruption risks; and

o leading by example to promote ethical behaviour. 5.3.3 Employees are responsible for:

o performing their functions and duties with care, diligence, honesty and integrity;

o conducting themselves in a professional manner at all times;

o adhering to these guidelines and other Council procedures that have been established to prevent fraud or corruption;

o taking care for Council's property which includes avoiding the waste or misuse of the Council's resources;

o maintaining and enhancing the reputation of the Council;

o remaining scrupulous in the use of Council information, assets, funds, property, goods or services; and

o reporting in accordance with Part 7 of this Policy

6. Fraud and Corruption Risk Assessment Process

6.1 The Council’s main objective in the prevention and control of fraud and corruption is to

minimise the occurrence of fraud and corruption within the Council. This objective is generally achieved by:

identifying fraud and corruption Risks;

determining strategies to control those risks; and

defining responsibility for and, the time frame within which the strategies will be implemented.

6.2 Managers must be alert to the potential of fraud and corruption to occur and remain

wary of factors which may leave the Council vulnerable to fraud and corruption, including:

changes to Council delegations;

implementation of cost cutting measures;

contracting out and outsourcing;

the impact of new technology; and

changes to risk management practices.

7. Reporting and Investigation

Reporting Corruption in Public Administration to the OPI Reports by Employees or Council Members to the OPI 7.1 Any Employee who has or acquires knowledge of actual or suspected Corruption in

public administration must report this information to the OPI as soon as practicable.

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7.2 Where an Employee suspects Corruption in public administration, that suspicion must be reasonably held. Section 6 of the Directions and Guidelines address what is required to form a reasonable suspicion. In this regard it is to be noted that suspicion is a state of mind that is distinct from a belief. It is not necessary for the Employee to believe the relevant conduct amounts to Corruption in public administration. All that is required to make a report to the OPI is a reasonable suspicion based upon a proper consideration of the available facts (i.e. there must be a factual basis for the suspicion).

7.3 Reports to the OPI by an Employee must be made in accordance with the reporting

obligations contained in section 11 of the Directions and Guidelines. In particular, the following information must be included in the report:

7.3.1 the Employee identity; and

7.3.2 the identity of the Council;

7.3.3 the Employee’s Council address, telephone number and email.

7.4 In addition, the report must:

7.4.1 identify the matter by reference to the conduct that the Employee suspects is

Corruption in public administration; and

7.4.2 expressly identify that the Employee suspects the conduct to be Corruption; and

7.4.3 identify any public officer or other person suspected of having engaged in the

conduct; and

7.4.4 be accompanied by: 7.4.4.1 a statement as to how the Employee became aware of the conduct;

and

7.4.4.2 the evidence known to the Employee including any documentation relevant to the conduct; and

7.4.4.3 a list of those persons who the Employee believes can give evidence relevant to the conduct.

7.5 A report to the OPI by an Employee must be made on the online report form available

at www.icac.sa.gov.au.

7.6 Where the Employee’s knowledge of Corruption has arisen due to a complaint/report he/she has received from another person (the informant), the Employee should not include the informant’s details in the report to the OPI if:

7.6.1 the report/complaint was made under the Whistleblowers Protection Act 1993;

and

7.6.2 the informant has not consented to the informant’s identity being divulged; and

7.6.3 it is not necessary to divulge the identity of the informant to ensure that the matters to which the report to the OPI relates are properly investigated.

7.7 Nothing in this section is intended to prevent an Employee from reporting Corruption in

public administration internally to a Responsible Officer in accordance with the Council’s Whistleblowers Protection Policy. Where an internal report relating to Corruption in public administration is received by another under the Whistleblowers Protection Policy the Responsible Officer must report the matter to the OPI in accordance with this Policy.

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http://www.icac.sa.gov.au/





Reports by the Council to the OPI 7.8 Where the Council (i.e. Council Members collectively) has or acquires knowledge of

actual or suspected Corruption in public administration it must report this information to the OPI as soon as practicable after the Council becomes aware of the matter. The Chief Executive Officer is responsible for preparing a report to the OPI on behalf of the Council for these purposes. The Chief Executive Officer must prepare the report immediately upon receiving direction from the Council (such as via the Mayor) to do so.

7.9 Any suspicion the Council has regarding conduct that constitutes Corruption in public administration must be reasonably held. Section 6 of the Directions and Guidelines address what is required to form a reasonable suspicion. In this regard it is to be noted that suspicion is a state of mind that is distinct from a belief. It is not necessary for the Council to believe the relevant conduct amounts to Corruption in public administration. All that is required to make a report to the OPI is a reasonable suspicion based upon a proper consideration of the available facts (i.e. there must be a factual basis for the suspicion).

7.10 The report must:

7.10.1 identify the matter by reference to the conduct that the Council suspects is Corruption; and

7.10.2 expressly identify that the Council suspects the conduct to be Corruption in public administration; and

7.10.3 identify any public officer or other person suspected of having engaged in the

conduct; and

7.10.4 be accompanied by:

7.10.4.1 a statement as to how the Council became aware of the conduct; and

7.10.4.2 the evidence known to the Council including any documentation relevant to the conduct; and

7.10.4.3 a list of those persons who the Council believes can give evidence relevant to the conduct.

7.11 A report to the OPI by the Chief Executive Officer on behalf of the Council must be

made on the online report form available at www.icac.sa.gov.au.

7.12 Where the Council’s knowledge of Corruption has arisen due to a complaint/report it received from another person (the informant), the Chief Executive Officer should not include the informant’s details in the report to the OPI if:

7.12.1 the report/complaint was made under the Whistleblowers Protection Act 1993;

and

7.12.2 the informant has not consented to the informant’s identity being divulged; and

7.12.3 it is not necessary to divulge the identity of the informant to ensure that the matters to which the report to the OPI relates are properly investigated.

7.13 Any consideration by the Council of information relating to Corruption in public

administration or a Council report to the OPI during a Council meeting must be considered in confidence. The grounds under section 90(3)(f) and (g) of the Local Government Act 1999 may be relied upon to move into confidence for these purposes.

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Reporting Fraud

7.14 Any Employee that has or acquires knowledge of actual or suspected Fraud that: 7.14.1 does not constitute Corruption in public administration;1 and

7.14.2 impacts or causes detriment (or has the potential to impact or cause detriment)

to the Council -

must report such information to the Responsible Officer or the Anti-Corruption branch of SAPOL.

7.15 A report made under clause 714 may be made under the Whistleblowers Protection Act 1993 and managed in accordance with the Council’s Whistleblower Protection Policy.

8. Action by the Chief Executive Officer Following Report and/or Investigation into Fraud or Corruption

8.1 Following any report to the OPI or SAPOL under this Policy (or the Whistleblower

Protection Policy as the case may be) of which the Chief Executive Officer has knowledge and, subject to the finalisation of any investigation undertaken by the Commissioner or SAPOL, the Chief Executive Officer will undertake a review into the area in which the Fraud or Corruption occurred to determine the cause for the breakdown in controls and, will report the findings of the review and provide recommendations (if any) to the Council. In undertaking any review, the Chief Executive Officer will have regard to any recommendations received from the Commissioner or the Ombudsman.

8.2 In the event that allegations of Fraud and/or Corruption are substantiated, the Council

may take disciplinary action against any Employee who was involved.

9. False Disclosure

9.1 A person who knowingly makes a false or misleading statement in a complaint or report

under the ICAC Act or makes a false or misleading disclosure, under the Whistleblowers Protection Act 1993, is guilty of an offence.

9.2 An Employee who makes a false disclosure, in addition to being guilty of an offence,

may face disciplinary action that may include dismissal.

1 Such conduct may, for example, relate to persons who are not a public officer such as a non-elected member of a Council Committee and/or a member of a Development Assessment Panel.

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10. Educating for Awareness

10.1 The Council recognises that the success and credibility of this Policy will largely depend

upon how effectively it is communicated throughout the organisation and beyond. 10.2 The Council will, therefore, from time to time take proactive steps towards ensuring that

the wider community is aware of the Council's zero-tolerance stance towards fraud and corruption.

10.3 The Council will increase community awareness by:

promoting the Council’s initiatives and policies regarding the control and prevention of fraud and corruption on the Council’s website and at the Council's offices;

make reference to the Council's fraud and corruption initiatives in the Council's Annual Report; and

facilitating public access to all of the documents that constitute the Council's fraud and corruption framework.

11. Review and evaluation

11.1 The Council has established a number of procedures to assist with the prevention and

control of Fraud and Corruption. The effectiveness of these procedures will be continuously reviewed and assessed and will remain up to date with any future developments in Fraud and Corruption prevention and control techniques.

11.2 The Council will review this Policy each year as a part of its Annual Policy Review.

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Phone 08 8671 0010


ABN: 68 284 130 046


Meeting Date 23 March 2018 Title of Report Prudential Management Policy

1. Purpose To inform the Audit Committee of changes to the Prudential Management Policy.

2. Recommendation That the Audit Committee endorse the Prudential Management Policy and recommends that Council formally adopt the updated Prudential Management Policy.

3. Background All Council policies are subject to periodic review. Council engages in a wide range of procurement projects. These projects each have different profiles in terms of financial risk, value and complexity. It is important that each project:

has an appropriate level of due diligence is evaluated afterwards can be shown to comply with Section 48 of the Local Government Act 1999.

This policy aims to ensure that the above requirements are met for each project by prescribing specific actions/requirements that are needed based on various project parameters (chiefly around risk and value).

4. Discussion This key points addressed by the policy are:

Due diligence before a decision on whether to proceed o For projects with a Low risk rating and whole of life cost under $100,000 o For projects with whole of life cost over $100,000 or a risk rating of Medium, High

or Extreme Due diligence during a project Due diligence after a project

This review has been quite extensive. This reflects both the relative complexities of procurement projects in general and also Council’s commitment to getting the process right. The policy has been revised by the Council’s Senior Management Team.

5. Policy Implications 5.1 Financial/Budget Dependent on specific project. 5.2 Resources Dependent on specific project.

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5.3 Legal and Risk Management This policy should enhance legal and risk management.

6. Report Consultation Chief Executive Financial Advisor Group Manager Lifestyle & Sports Group Manager Governance & Community Acting Group Manager Essential Services & Assets

7. Attachments Prudential Management Policy


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roxbycouncil POLICY –PRUDENTIAL MANAGEMENT Policy Date | 01.06.14



POLICY






TITLE POLICY – PRUDENTIAL MANAGEMENT

Latest Review Changes Update policy references


01.05.14


27.6.14

9.12.16


Local Government Act 1999, section 48(aa1)


Internal Financial Controls Policy

Procurement Policy

Risk Management Policy

Related Procedures:


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roxbycouncil POLICY – PRUDENTIAL MANAGEMENT Policy Date | 01.06.14



1. INTRODUCTION

This document sets out the policy of the Municipal Council of Roxby Downs for prudential management of all its projects. This policy applies to all projects (as defined below) regardless of size.

2. DEFINITIONS

Due Diligence To act prudently (i.e. with care and thought) in evaluating associated risks.

Project a new and discrete undertaking or activity that would involve the expenditure of money, and/ or deployment of resources, and/or incurring or assuming a liability, accepting an asset or divestment of an asset

Whole of Life Cost The total cost of owning an asset over its entire life such as design and building costs, operating costs, associated financing costs, depreciation, and disposal costs. Whole-life cost also includes environmental impact and social costs.

3. POLICY OBJECTIVES

This policy has three Objectives.

(a) to ensure that a Council project is undertaken only after an appropriate level of “due diligence” is applied to the proposed project; and

(b) to ensure that each Council project is managed during the project and evaluated after the project, to achieve identified public benefits or needs and to minimise financial risks

(c) to ensure compliance with Section 48 of the Local Government Act 1999.

4. LEGISLATION

This Policy is made pursuant to section 48(aa1) of the Local Government Act 1999 (“the Act”) which provides:

A Council must develop and maintain prudential management policies practices and procedures for the assessment of projects to ensure that the Council:

(a) acts with due care diligence and foresight; and

(b) identifies and manages risks associated with a project; and

(c) makes informed decisions; and

(d) is accountable for the use of Council and other public resources.

As such, this Policy applies to all Council projects, no matter how large or small, to ensure compliance with this provision, and that decision-making in respect of any project is made with reliable, accurate and timely information.

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5. RELATIONSHIP TO PROCUREMENT POLICY

Council’s Procurement Policy requires that a Business Case and Risk Statement be prepared as part of the planning for simple and complex procurement modes. This policy provides guidance on the content of these documents.

For a project that meets the requirements of Section 48(1) a separate Prudential Report will need to be prepared in addition to a Business Case and Risk Statement.

6. DUE DILIGENCE BEFORE A DECISION ON WHETHER TO PROCEED

To document and demonstrate appropriate due diligence a Business Case (including a risk statement) (BC) is to be prepared prior to a decision being made to commence the project. The content and extent of the BC will depend on the level of due diligence required. When assessing the risk of a project reference should be made to Council’s Risk Management Policy.

As a guide the following content should be included in a BC -

For projects with a Low risk rating and whole of life cost under $100,000, the BC should consider, at a minimum:

• Analysis of the need or demand for the project;

• Whether the project will (or might) generate any additional risks for Council;

• Identification and quantification of the expected financial and other benefits;

• Identification and quantification of the likely whole of life financial and other costs of the project; and

• Assessment of the financial risks and consideration of ways they can be manage / and or mitigated.

For the smallest projects with least financial risk, this BC may comprise only a single page.

For Projects with whole of life cost over $100,000 or a risk rating of Medium, High or Extreme, the BC should consider;

• All of the elements of a basic BC listed above; plus

• Feasibility Study;

• High level consideration of expected costs and revenues over the life of the project, using discounted cashflow analysis; and

• Consideration of the reliability of cashflow.

For projects that meet the requirements of Section 48(1),(i.e. cost of the project over 5 years is greater than 20 per cent of the Council’s average annual operating expenses over the previous five financial years (as shown in Council’s financial statements) or the expected capital cost of the project over the ensuing five years is likely to exceed $4.0m (indexed by CPI from 1 January 2011), excluding road construction or maintenance and drainage projects, or the projects which are of high public interest, a Prudential Report must be prepared and must consider:

• the relationship between the project and relevant strategic management plans;

• the objectives of the Development Plan in the area where the project is to occur;

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• the expected contribution of the project to the economic development of the local area, the impact that the project may have on businesses carried-on in the proximity and, if appropriate, how the project should be established in a way that ensures fair competition in the market place;

• the level of consultation with the local community, including contact with persons who may be affected by the project and the representations that have been made by them, and the means by which the community can influence or contribute to the project or its outcomes;

• if the project is intended to produce revenue, revenue projections and potential financial risks

• the recurrent and whole-of-life costs associated with the project including any costs arising out of proposed financial arrangements

• any risks associated with the project, and the steps that can be taken to manage, reduce or eliminate those risks (including by the provision of periodic reports to the Council Chief Executive);

• the financial viability of the project, and the short and longer term estimated net effect of the project on the financial position of the Council;

• the most appropriate mechanisms or arrangements for carrying out the project.

• if the project involves the sale or disposition of land, the valuation of the land by a qualified valuer under the Land Valuers Act 1994.

If a project meets the requirements of section 48(1) and a full Prudential Report is not sought, the Council will record its reasons for not obtaining such a report. This might be satisfied simply by noting (if appropriate) that the proposed project has been assessed as being of low or negligible financial risk.

A full Prudential Report may also be commissioned under section 48, for “any other project for which the Council considers that it is necessary or appropriate”.

A report prepared under Section 48(1) must be prepared by a person considered qualified to address the prudential issues required, and who does not have an interest in the project. Council can ensure compliance with this requirement by appointing an external consultant to prepare this report. Reports prepared under Section 48(1) are to be made available to the public after a decision is made on whether to proceed with the project, unless Council orders that it be kept confidential.

7. DUE DILIGENCE DURING A PROJECT

After a decision has been made to commence a project, it will be managed according to the principles of due diligence.

The Council will take action to manage the project so that:

• the project remains focussed upon the expected public benefits or needs that have been identified in the BC and / or Prudential Report; and

• financial risks identified in the BC and / or Prudential Report are managed appropriately.

8. DUE DILIGENCE AFTER A PROJECT

After a project has been completed, it will be evaluated, according to the principles of due diligence, to determine the extent to which the project:

• has achieved the public benefits or needs identified in the BC and / or Prudential Report that it was intended to;

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• achieve or satisfy; and

• has avoided or mitigated the financial risks identified in the BC and / or Prudential Report.



10. ACCESSIBILITY



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Phone 08 8671 0010


ABN: 68 284 130 046

REPORT FOR AUDIT COMMITTEE MEETING Meeting Date 23 March 2018 Title of Report Whistleblower Policy

1. Purpose To review the Whistleblower Policy

2. Recommendation

That the Audit Committee recommends that Council adopt and implement the updated Whistleblower Policy

3. Background The Whistleblower Policy is due for periodic review. This policy aims to facilitate the disclosure, in the public interest, of maladministration and waste within Council and of corrupt or illegal conduct generally. It provides for the appropriate protection for those who make disclosures in accordance with the Whistleblower Protection Act 1993.

4. Discussion Due to the change in Council’s Governance Structure and division of responsibilities on 31 July 2017 some references to the Administrator have been replaced with Chief Executive.

5. Policy Implications 5.1 Financial/Budget Nil 5.2 Resources

Nil 5.3 Legal and Risk Management

The Local Government Act 1999 requires that councils have appropriate policies, practices and procedures in place to ensure compliance with statutory requirements and to achieve and maintain standards of good public administration.


Senior Management Team

7. Attachments Whistleblower Protection Policy

8. Report Authorisers Michelle Hales Group Manager Governance and Community

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roxbycouncil POLICY – WHISTLEBLOWER PROTECTION Policy Date |22.02.17



POLICY

Responsible Department Governance





TITLE POLICY Whistleblower Protection Policy

Latest Review Changes Where applicable references to Administrator have been replaced with Chief Executive.


08.07.13

22.02.17


08.07.11

22.02.17


Local Government Act 1999 (Section 132A) Independent Commissioner Against Corruption Act (ICAC) 2012 Whistleblowers Protection Act 1993


Code of Conduct for Local Government Employees Internal Control Policy Risk Management Policy Fraud and Corruption Prevention Policy

Related Procedures:


Local Government Association Model Whistleblower Protection Policy

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1. POLICY STATEMENT

Roxby Downs Council is committed to upholding the principles of transparency and accountability in its administrative and management practices and, therefore, encourages the making of disclosures that reveal public interest information.

2. PRINCIPLES

This Policy applies to appropriate disclosures of public interest Information that concerns a public officer and is made in accordance with the Act by the Administrator of the Council, Employees of the Council, and members of the public. This Policy is also intended to complement the reporting framework und the ICAC Act.

The Policy is designed to complement the existing communication channels within the Council, and will operate in conjunction with existing policies, including;

Fraud & Corruption Prevention Policy;

Code of Conduct for Local Government Employees; and

Internal Review of Council Decisions Policy under section 270 of the Local Government Act 1999.

The Council is committed to:

referring, as necessary, appropriate Disclosures to the Appropriate Authority, which, depending on the nature of the disclosure include a Minister of the Crown, the SA Police, the Anti-Corruption Branch of the SA Police, the Auditor-General or the Ombudsman. Further, where the Disclosure relates to Corruption it must be reported directly to the OPI in accordance with the Directions and Guidelines. A report of Misconduct or Maladministration may be made to the OPI, but it must be reported to the OPI if the Disclosure gives rise to a reasonable suspicion of serious or systemic Misconduct and/or Maladministration unless there is knowledge that the Disclosure has already been reported to the State Ombudsman;

otherwise facilitating the investigation of all appropriate Disclosures of Public Interest Information in a manner which promotes fair and objective treatment of those involved; and

rectifying any substantiated wrong doing to the extent practicable in all circumstances.

3. POLICY OBJECTIVES

The purpose of this Policy is to ensure that Roxby Downs Council:

properly fulfils its responsibilities under the Whistleblower Protection Act 1993; encourages and facilitates disclosures of Public Interest information which may

include occurrences of Maladministration and Waste within the Council, and corrupt or illegal conduct in general, so that internal controls may be strengthened;

provides a process by which disclosures may be made so that they are properly

investigated; provides appropriate protection for those who make Disclosures in accordance with the

Act; and recognises the need to appropriately support the Whistleblower, the Responsible

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Officer and, as appropriate, those Public Officers affected by any allegation that

4. DEFINITIONS

For the purposes of this Policy the following definitions apply:

Act means the Whistleblower Protection Act 1993. An Appropriate Authority that receives disclosure of public interest information includes:

a Minister of the Crown; a member of the police force - where the information relates to an illegal activity; the Auditor-General – where the information relates to the irregular or

unauthorised use of public money; the Ombudsman – where the information relates to a public officer; a Responsible Officer, where the information relates to a matter falling within the

sphere of responsibility of a Local Government body; or any other person1 to whom, in the circumstances of the case, it is reasonable and

appropriate to make the disclosure. Corruption in public administration means:

an offence against Part 7 Division 4 (Offences relating to public officers) of the Criminal Law Consolidation Act 1935, which includes the following offences:

(i) bribery or corruption of public officers; (ii) threats or reprisals against public officers; (iii) abuse of public office; (iv) demanding or requiring benefit on basis of public office; (v) offences relating to appointment to public office.

any other offence (including an offence against Part 5 (Offences of dishonesty) of the

Criminal Law Consolidation Act 1935) committed by a public officer while acting in his or her capacity as a public officer or by a former public officer and related to his or her former capacity as a public officer, or by a person before becoming a public officer and related to his or her capacity as a public officer, or an attempt to commit such an offence; or

any of the following in relation to an offence referred to in a preceding paragraph:

(i) aiding, abetting, counselling or procuring the commission of the offence; (ii) inducing, whether by threats or promises or otherwise, the commission of the offence; (iii) being in any way, directly or indirectly, knowingly concerned in, or party to, the commission of the offence; (iv) conspiring with others to effect the commission of the offence

Detriment includes: injury, damage or loss; or intimidation or harassment; or discrimination, disadvantage or adverse treatment in relation to a person's

1 Such a person may include:

a Council employee (such as the Chief Executive) to whom the whistleblower feels comfortable making the disclosure; and/or

The OPI where the disclosure relates to corruption, maladministration or misconduct in public administration.

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employment; or threats of reprisal

Directions and Guidelines is a reference to the Directions and Guidelines issued pursuant to section 20 of the ICAC Act, which are available on the Commissioner’s website (www.icac.sa.gov.au). Disclosure means an appropriate disclosure of public interest information made by the Whistleblower to an Appropriate Authority, including to a Responsible Officer.

A person makes an appropriate disclosure of public interest information if : (a) the person -

i. believes on reasonable grounds that the information is true; or ii. is not in a position to form a belief on reasonable grounds about the truth of the information but believes on reasonable grounds that the information may be true and is of sufficient significance to justify its disclosure so that its truth may be investigated; and

(b) the disclosure is made to an Appropriate Authority. Employee refers to all the Council's employees and includes trainees, work experience students, volunteers, and contractors whether they are working in a full-time, part-time or casual capacity . Fraud is an intentional dishonest act or omission done with the purpose of deceiving. ICAC Act is the Independent Commissioner Against Corruption Act 2012. Immunity is an undertaking given by the Council (in accordance with the Act) to a Whistleblower in relation to action it does not intend to take against a Whistleblower as a result of receiving an appropriate disclosure of public interest information from the Whistleblower. Independent Assessor is the person responsible for investigating, a disclosure made to a Responsible Officer. The Independent Assessor will be appointed by the Responsible Officer on a case-by-case basis (depending upon the nature of the disclosure) in accordance with clause 7.3 of this Policy. The Council may prepare a list of pre-approved persons who may be appointed as an Independent Assessor in any given circumstances, in which case, the Responsible Officer must have regard to this list in appointing the Independent Assessor.

Maladministration is defined in the Whistleblowers Protection Act 1993 to include impropriety or negligence. Section 4 of the Independent Commissioner Against Corruption Act 2012 defines Maladministration in public administration; (a) to mean-

(i) conduct of a public officer, or a practice, policy or procedure of a public authority, that results in an irregular and unauthorised use of public money or substantial mismanagement of public resources; or (ii) conduct of a public officer involving substantial mismanagement in or in relation to the performance of official functions; and

(b) to include conduct resulting from impropriety, incompetence or negligence; and

(c) is to be assessed having regard to relevant statutory provisions and administrative instructions and directions.

Misconduct in public administration defined at Section 4 of the ICAC Act means:

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contravention of a code of conduct by a public officer while acting in his or her capacity

as a public officer that constitutes a ground for disciplinary action against the officer; or other misconduct of a public officer while acting in his or her capacity as a public officer.

Office for Public Integrity (OPI) is the office established under the ICAC Act that has the

function to:

receive and assess complaints about public administration from members of the public;

receive and assess reports about corruption, misconduct and maladministration in public administration from the Ombudsman, the Council and public officers;

make recommendations as to whether and by whom complaints and reports should be investigated;

perform other functions assigned to the Office by the Commissioner.

Public administration defined at section 4 of the ICAC Act means without limiting the acts that may comprise public administration, an administrative act within the meaning of the Ombudsman Act 1972 will be taken to be carried out in the course of public administration.

Public interest information2 means information that tends to show:

(a) that an adult person, a Council or other Government Agency, is or has been involved in:

i. an illegal activity; or

ii. an irregular and unauthorised use of public money; or

iii. substantial mismanagement of public resources; or

iv. conduct that causes a substantial risk to public health or safety, or to the environment; or

(b) that a public officer is guilty of maladministration in or in relation to the performance of official functions.

Public Officer includes: the Administrator and Employee or Officer of the Council;

Responsible Officer is a person appointed pursuant to Section 302B of the Local Government Act 1999 who is authorised to receive and act upon public interest information received from a Whistleblower3. Each Council must ensure that a member of the staff of the Council (with qualifications prescribed by the Regulations4) is designated as a Responsible Officer for the Council for the purposes of the Act.

Victimisation occurs when a person causes detriment to another on the grounds, or substantially on the grounds, that the other person (or a third person) has made or intends to make an appropriate disclosure of public interest information.

Waste refers to the waste of public resources (including public money), which occurs as a result of the substantial mismanagement, irregular or unauthorised use of public resources.

Whistleblower is any person who makes an appropriate disclosure of public interest information.

2 This definition captures conduct that constitutes corruption, misconduct and maladministration in public administration. 3 It is recommended that the Responsible Officer is one or two Council Officers and is not the Chief Executive. The Responsible Officer is an administrative role and the principles of good governance require division between the administrative and governing bodies of a council 4 Regulation 33 of the Local Government (General) Regulations 2013, states that the prescribed qualifications are the qualifications determined by the Minister. The Minister has not yet made any determination.

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5. CONFIDENTIALITY

The identity of a Whistleblower will be maintained as confidential in accordance with the Act. Confidentiality will remain in all circumstances, unless the Whistleblower consents to his/her identity being disclosed or, disclosure is otherwise required so that the matter may be properly investigated. The Act does not expressly require any other information relating to a Disclosure (i.e. the nature of the allegations) to be maintained as confidential.

A Whistleblower may wish to remain anonymous. In the event that an anonymous Disclosure is made, the Whistleblower must ensure that the allegation is sufficiently supported by the provision of necessary details and evidence to enable the matter to be properly investigated. Accordingly, if an allegation is not supported by sufficient evidence it will not be investigated under the provisions of the Act.

6. DISCLOSURE PROCESS

6.1. A Disclosure is to be made to the Responsible Officer. A Whistleblower may alternatively

choose to disclose Public Interest Information directly to an Appropriate Authority.

6.2. The following are relevant considerations for the Whistleblower in determining where to direct a Disclosure:

subject to this clause, when choosing to make a Disclosure internally, Disclosures relating to a member of council staff, other than the Chief Executive (or person acting in that position), should be made to a Responsible Officer;

any Disclosure relating to a person appointed as a Responsible Officer should be made to the other person appointed as a Responsible Officer or failing this, to an Appropriate Authority external to the Council;

any Disclosure relating to the Chief Executive should be made external to the Council to the Ombudsman or, where it relates to Corruption in public administration to the OPI;

any Disclosure relating to Maladministration or Misconduct in public administration may be reported in accordance with the ICAC Act or, if there is a reasonable suspicion that the Maladministration or Misconduct is serious or systemic, it must be reported to the OPI in accordance with the Directions and Guidelines;

if a Disclosure contains allegations of Fraud or Corruption, the Whistleblower should report the matter in accordance with the Council’s Fraud and Corruption Policy. That is, if the Disclosure relates to Corruption in public administration it should be reported to the OPI in the first instance5. If the Disclosure relates to Fraud, it may be reported to the Responsible Officer or direct to SAPOL.

Any allegations of Fraud or Corruption and/or criminal conduct will not be investigated by an Independent Assessor under this Policy.

6.3. Nothing in this Policy prevents a person from making a Disclosure to an Appropriate Authority

external to the Council (i.e. the Ombudsman or the OPI). This is a choice to be made by the Whistleblower at his/her discretion.

5 The OPI is the authority charged with receiving complaints and reports relating to such information. However, it remains open to the Whistleblower to make a disclosure relating to corruption in public administration to the Responsible Officer if he/she feels more comfortable doing so.

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6.4. A Disclosure made to the Responsible Officer may be made in person, by telephone or in writing. The relevant contact details are:

Telephone 8671 0010

Email [email protected]

Address Confidential Group Manager Governance and Community


6.5 Where a Disclosure is made by telephone, the Responsible Officer must take notes of the

conversation and, where possible ask the Whistleblower to verify and sign the notes 7. The Role of the Responsible Officer

7.1. Upon the receipt of a Disclosure, the Responsible Officer will:

undertake a preliminary assessment in accordance with Part 7 of this Policy below to determine the nature of the Public Interest Information contained within the Disclosure; and

either refer the Disclosure to the Appropriate Authority (where it is appropriate to do so), or proceed with the an investigation process outlined in Part 8 of this Policy.

7.2. If the Disclosure relates to the Chief Executive (or a person acting in that position), the Responsible Officer will immediately refer it to the Ombudsman for investigation as the Ombudsman deems appropriate. Alternatively, if the Disclosure relates to Corruption in public administration, the Responsible Officer must immediately report the matter to the OPI in accordance with the Directions and Guidelines.

7.3. In making any determination under this Policy (i.e. such as to refer a disclosure to the Appropriate Authority or proceed with an assessment or otherwise determining whether to pursue an investigation) :

the Responsible Officer may seek legal advice from Council’s Lawyers and/or seek guidance from SAPOL or the Ombudsman in relation to the best course of action to pursue; and

is authorised to incur costs in accordance with the Council’s Budget for this purpose.

7.4. In the event that the Responsible Officer determines that the Disclosure warrants further investigation by the Council, the Responsible Officer will appoint an Independent Assessor for these purposes under paragraph 7.3 of this Policy.

7.5. The Responsible Officer will liaise with the Independent Assessor and the Whistleblower in relation to any ensuing investigation process and will ensure that the Whistleblower is provided with adequate support and protection as necessary.

7.6. The Whistleblower will be notified of the progress of any investigation by the Responsible Officer and, wherever practicable and in accordance with the law, of the final outcome.

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8. Preliminary Assessment of Complaint

8.1. Where the identity of the Whistleblower is known to the Responsible Officer or is reasonably ascertainable, the Responsible Officer will acknowledge receipt of the Disclosure within 2 days and in doing so, will provide a copy of this Policy to the Whistleblower.

8.2. Upon receipt of a disclosure, the Responsible Officer will undertake a preliminary assessment to determine whether it:

is frivolous, vexatious or trivial, in which case, no further action will be taken in relation to the complaint; or

warrants referral to an Independent Assessor for a formal investigation and report to Council; or

requires referral to an Appropriate Authority external to the Council;

8.3. The Responsible Officer must report the outcome of his/her determination under paragraph 7.2 above to the Chief Executive (unless the disclosure relates to the Chief Executive in which case it is to be dealt with pursuant to clause 6.2 above and must not be investigated by an Independent Assessor). Where the Responsible Officer determines the disclosure warrants investigation, the Responsible Officer will, having regard to available resources, appoint the Independent Assessor and refer the Disclosure to the Independent Assessor for investigation.

8.4. Where the Responsible Officer determines the Disclosure warrants referral to an external body, the Responsible Officer will undertake the referral.

8.5. The Responsible Officer will inform the Whistleblower of the outcome of his/her determination under paragraph 7.2 above in writing as soon as is reasonably practicable after the determination has been made.

8.6. If the Whistleblower is dissatisfied with the Responsible Officer’s determination it is open to him/her to report the Disclosure to an Appropriate Authority external to the Council.

9. Investigation Procedure

9.1. The objectives of the investigation process are:

to investigate the substance of the disclosure and to determine whether there is evidence in support of the matters raised or, alternatively, to refute the report made;

to collate information relating to the allegation as quickly as possible. This may involve taking steps to protect or preserve documents, materials and equipment;

to consider the information collected and to draw conclusions objectively and impartially;

to observe procedural fairness in the treatment of any person who is subject of the disclosure;

to make recommendations arising from the conclusions drawn concerning remedial or other appropriate action; and

9.2. The Independent Assessor will observe the principles of natural justice throughout the investigation process. The investigation will be conducted in an efficient manner and will involve a thorough and balanced assessment of the available evidence and any other factors deemed relevant to making a fair and reasonable judgement about the matter.

9.3. The Act requires that the Whistleblower assist with certain investigations that may result from his/her Disclosure. In the event that the Whistleblower fails, without reasonable excuse, to

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assist with an investigation process the protection afforded to him/her under the Act may be forfeited6.

9.4. Upon receipt of a Disclosure, the Independent Assessor will bring the fact of the Disclosure to the attention of the person who is the subject of it in writing within 5 days, and provide them with an opportunity to respond to the disclosure within a reasonable timeframe (either in writing or in person). The full details of any allegations contained in the Disclosure need not be brought to the person’s attention if the Independent Assessor considers that doing so will compromise the success of the investigation.

9.5. At any time the Independent Assessor is required to communicate with the person subject of the Disclosure, the Whistleblower and/or other witnesses for the purposes of the investigation, the Independent Assessor will ensure the relevant person is aware of the reason for and purpose of the communication. Such notification will be provided to the relevant person at least 48 hours before such communication is to take place.

9.6. During any interview with the Independent Assessor, the person who is the subject of a Disclosure may be accompanied by any person providing support to him/her (including a lawyer) as he/she considers fit. Any costs incurred in relation to obtaining the assistance of a support person are the personal expenses of the person subject of the Disclosure. The support person is bound by a duty of confidentiality in relation to any matter discussed during such interview.

9.7. The investigation will be undertaken in confidence. The Independent Assessor will keep the identity of the Whistleblower confidential unless Disclosure of his/her identity is necessary to ensure that the proper investigation of the Disclosure.

9.8. The Independent Assessor will keep the Responsible Officer informed of the expected timeframes for completion of the investigation and the provision of a report to the Council.

10. Final Report and Recommendation

10.1. Upon finalising a detailed investigation the Independent Assessor must prepare a report that will contain the following:

the allegation(s); an account of all relevant information received including any rejected evidence, and the

reasons why the rejection occurred; the conclusions reached and the basis for them; any recommendations arising from the conclusions; and any remedial action which should be taken by the Council.

The report will be accompanied by: the transcript or other record of any verbal evidence taken, including tape recordings; and all documents, statements or other exhibits received by the officer and accepted as

evidence during the course of the investigation.

10.2. The report will not disclose particulars that will or are likely to lead to the identification of the Whistleblower.

10.3. The report must be provided to the Chief Executive to action as he/she considers appropriate.

11. Handling of Information

11.1. The Independent Assessor must ensure accurate records of the investigation process are maintained including notes of all discussions, phone calls, and interviews. It is recommended

6 Refer section 6(3) of the Act.

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that the interviewee sign written records of interviews and interviews be taped, but only where the interviewee has consented to this. Witness statements should also be signed.

11.2. In performing his/her duties, the Independent Assessor will maintain a confidential file of information (including written documents, disks, tapes, film or other objects that contain information) that relates to a disclosure and/or is a product of the associated investigation/reporting process. All such information will be recorded in a register which is to remain confidential and be securely stored7.

12. Protection for the Whistleblower

12.1. The Act provides immunity from criminal or civil liability for Whistleblowers, and protection for Whistleblowers against victimisation. Accordingly the Council will take action as appropriate to protect Whistleblowers from victimisation. Furthermore, in the event that a Whistleblower is victimised, the Council will, immediately refer the matter to the SA Police.

12.2. The Act does not provide any protection to people who knowingly make false disclosures or are reckless as to whether their disclosures are true.

12.3. A person who knowingly makes a false Disclosure or is reckless as to whether the disclosure is true is guilty of an offence and may be prosecuted.

12.4. A Public Officer who knowingly makes a false disclosure, or is reckless as to whether the Disclosure is true, in addition to being guilty of an offence under the Act, may face disciplinary action taken by the Council.

13. Availability of the Policy

13.1. This Policy will be available for inspection at the Council's Offices during ordinary business hours and via the Council's website www.roxbydowns.sa.gov.au. Copies will also be provided to the public upon request, and upon payment of a fee in accordance with the Council's Schedule of Fees and Charges.

7 The Responsible Officer, in conjunction with the independent assessor will ensure all information relating to an appropriate disclosure is maintained as confidential and as such, will be solely responsible for the secure storage of this information. It is recommended that the information be stored separately from the Council’s records. In the event that a person’s appointment as a Responsible Officer is terminated, the person must provide this information to the newly-appointed Responsible Officer and having done so will continue to be bound by a duty of confidentiality in respect of the Whistleblower’s identity and the information received.

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ABN: 68 284 130 046

REPORT FOR AUDIT COMMITTEE MEETING Meeting Date 28 March 2018

Title of Report Review of ICT Major Projects 2017-2018

1. Purpose

To provide an update on ongoing ICT projects to the Audit Committee.

2. Recommendation

That the Audit Committee notes this report.

3. Background

In its Interim Report on Audit Findings 30 June 2017, Council’s auditors identified the needfor Council to have a more systematic approach to asset management. Council currentlyhas over $120m worth of assets, and utilises only spreadsheets to manage them. A needfor a suitable Asset Management System has therefore been identified, and a procurementproject is now underway.

Council has also recognised the need for a wider review around its various other ICTsystems, and this review will soon get underway.

4. Discussion

Asset Management SystemIn the Interim Report on Audit Findings 30 June 2017, the auditors commented on the ad-hoc nature of asset management and condition assessment. Council has committed toprocuring a suitable asset management system as a way of satisfying auditors’requirements. This has become the priority ICT project for 2017-2018.

The project is currently underway, with Council having already identified a preferred system. Three out of four shortlisted candidates were eliminated through a formal Expression Of Interest (EOI) and Evaluation process.

Review of ICT SystemsA formal review of Council’s other ICT systems is soon to get underway. It is expected thatthis will at least commence (if not also be completed) before the end of 2017-2018. It willmost likely be conducted by Warwick Moyse. The review will explore Council’s ICT needsand the effectiveness of its current systems including Business Information System, OpenOffice, and Roxbylink’s Facilities Management and POS system, Links. The review shouldresult in specific recommendations around whether to retain, upgrade or replace thesevarious systems.

5. Policy Implications

5.1 Financial/Budget

As noted above.

5.2 Resources

Review of ICT systems likely to be performed by Warwick Moyse on a contract basis.

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5.3 Legal and Risk Management Nil


Senior Management Team Finance Advisor


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