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Audit Committee - Minutes of meeting held 5 February 2015 Page

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MINUTES OF THE MEETING OF THE AUDIT COMMITTEE OF THE BAROSSA COUNCIL

held in the Committee Room, 43-51 Tanunda Road, Nuriootpa, on Thursday 5 February 2015 commencing at 12:00 noon.

1. WELCOME

Mr Peter Brass welcomed everyone to the meeting, extending a particular welcome to the new members. The new members of the Committee Cr Scotty Milne and Tanya Johnston provided a brief introduction to the Committee..

2. PRESENT

Mr Peter Brass, Mr James Heuzenroeder, Ms Tanya Johnston, Cr Angas, Cr Milne, Cr Miller (present 12.05pm onwards)

Invited Staff Members Mr Martin McCarthy, Chief Executive Officer Ms Jo Thomas, Director Corporate & Community Services Mr Mark Lague, Manager Financial Services Ms Vicky Rohrlach, Senior Accountant Mr Alan Jackson, Risk Manager Ms Nicole Rudd, Internal Controls Compliance Officer Ms Susie Roehr, Executive Assistant, Director Corporate & Community Services

3. APOLOGIES Nil 4. CONFIRMATION OF MINUTES FROM PREVIOUS MEETING MOVED Mr Heuzenroeder that the Minutes of the Audit Committee Meeting held 29 October 2014, as circulated, be confirmed as a true and correct record of the proceedings of the meeting. Seconded Cr Angas CARRIED 5. BUSINESS ARISING FROM PREVIOUS MINUTES Included in the agenda. 6. CONSENSUS AGENDA 6.1 REPORTS FOR INFORMATION The meeting discussed item 6.1.1 – Amended Terms of Reference. A few minor amendments were proposed. Document to be updated and distributed to Audit Committee members to ensure proposed amendments are incorporated correctly. Terms of reference will then need to be presented to Council for approval. MOVED Cr Angas that the amended Audit Committees Terms of Reference be noted and changes incorporated for approval by Council. Seconded Cr Miller CARRIED


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6.2 CORRESPONDENCE

The meeting discussed each item. MOVED Mr Heuzenroeder that Correspondence Items 6.2.1 to 6.2.3 be received. Seconded Ms Johnston CARRIED 7.1 DEBATE AGENDA - REPORTS 7.1.1 DRAFT AUDIT COMMITTEE 2015 WORKPLAN INTRODUCTION The Draft Audit Committee Workplan for 2015 was provided for members. MOVED Cr Miller that the Audit Committee approves the draft Audit Committee Workplan for 2015. Seconded Mr Heuzenroeder CARRIED

COMMENT The draft Workplan has been formulated based on a model workplan developed by the Local Government Association. A well-functioning Audit Committee and an appropriate and robust internal audit program (as outlined in the draft Workplan), significantly reduces the likelihood of the need for Efficiency and Economy Audits as prescribed in Section 130A of the Local Government Act 1999. The Workplan has been prepared to include all proposed reports, policy reviews, compliance reviews, etc for 2015. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 – Section 126 FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Adoption and adherence to an annual Workplan is a risk management tool. COMMUNITY CONSULTATION Not required under legislation or Council’s Public Consultation Policy. ACTIONS: • The Chair requested divisional Managers present their risk profiles at a future

meeting(s). The Chief Executive to present risk profile information at November /December meeting.

• September/October – in camera meeting with the external and internal auditor be noted. Workplan to be updated accordingly.

7.1.2 REVIEW OF INVESTMENTS


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In respect of the graph showing Investment Performance verses Benchmark, Members questioned how the Local Government Finance Authority Weighted Average Fixed Interest Rate could fall below the Official Reserve Bank of Australia Cash Rate as depicted in the graph. Officers to provide clarification. INTRODUCTION Pursuant to Section 140 of the Local Government Act 1999, and in accordance with Council’s Investment Policy, Council must undertake an annual performance review of its investments. MOVED Cr Angas that the report on Council’s 2014 Investments be received and noted. Seconded Cr Miller CARRIED

COMMENT During 2014, Reserve Bank interest rates have remained at 2.50%. All investments made during 2014 were held with the Local Government Finance Authority of South Australia (LGFA) or Council’s National Australia Bank (NAB) investment account and are based on the following key factors: Interest rate consistently similar or slightly higher than rates quoted from other

financial institutions. Council staff compared rates between LGFA, National Australia Bank, Bank SA, AMP, Westpac and Commonwealth Bank.

Annual bonus distribution to Councils based on debenture loan/investment

holdings ($47,158 bonus received in 2014/15); Annual contribution to the Local Government Research and Development fund;

Ease of making transactions.

The National Australia Bank ‘investment’ account has a higher interest rate than Council’s operating account and money is automatically transferred overnight whenever the operating account balance is more than $50,000. This maximises interest earnings on a daily basis. The current interest rate as at 31 December 2014 for this account is 3%. Where funds are significantly higher than required for upcoming payments, funds are transferred to the LGFA for deposit of between 0 and 120+ days investment, as per previous practice and dependant on cash flow requirements. These factors are considered consistent with the criteria outlined in Council’s Investment Policy.


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0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

%

INVESTMENT PERFORMANCE VS BENCHMARKJANUARY TO DECEMBER 2014

Official Cash Rate

LGFA Weighted Average Fixed Interest Rate

LGFA Weighted Average Variable Interest Rate

NAB Weighted Average Variable Interest Rate

0

2,000

4,000

6,000

8,000

10,000

12,000

$ INTEREST EARNED JANUARY TO DECEMBER 2014

LGFA Variable Investments LGFA Fixed Investments NAB Investment Account

The weighted average interest rate (fixed and variable) on Council’s investments during 2014 compared to the official Reserve Bank of Australia cash rate, is outlined in the graph below:

Monthly interest earned for 2014 is shown in the following graph:

The level of funds invested during the year is presented in the graph below. The graph excludes Council’s separate operating bank account which was maintained at minimum working capital levels in accordance with the Policy.


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0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

$ LEVEL OF FUNDS INVESTED JANUARY TO DECEMBER 2014

LGFA Investments NAB Investment Account

Council’s total investments as at 31 December 2014 are outlined in the table below: Variable

Interest Rate

$’000

< 1 year Fixed $’000

> 1 year < 5 years

$’000

> 5 years $’000

Non-interest bearing

$’000

TOTAL $’000

LGFA

5,374

1,244

0

0

0

6,618

NAB Investment A/c

772

0

0

0

0

772

TOTAL

6,146

1,244

0

0

0

7,390

LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Section 140 of the Local Government Act 1999 Council Policy Investment Policy Council Strategic Plan Strategy 4.1: Responsibility FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS The review of Council investments monitors performance in this area. COMMUNITY CONSULTATION Community consultation is not required for the operational management of investments. ACTIONS: • Follow up explanation on the Investment Performance verses Benchmark graph

comparing the average interest rate on Council’s investments via Local Government Finance Authority during 2014 compared to the official Reserve Bank of Australia


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cash rate to be provided to members. Future examination of the Policy to be undertaken to see how it is calculated.

7.1.3 TREASURY MANAGEMENT REVIEW INTRODUCTION Pursuant to Section 140 of the Local Government Act 1999, and in accordance with Council’s Treasury Management Policy, Council must undertake an annual performance review of its Treasury Management activities. MOVED Cr Milne hat the report on Council’s 2014 Treasury Management activities be received and noted. Seconded Mr Heuzenroeder CARRIED

COMMENT The key principles within Council’s Treasury Management Policy are as follows: Council will:

• Maintain target ranges for its Net Financial Liabilities ratio;

• Generally only borrow funds when it needs cash and not specifically for particular projects;

• Not retain and quarantine money for particular future purposes unless required

by legislation or agreement with other parties;

• Apply any funds that are not immediately required to meet approved expenditure (including funds that are required to be expended for specific purposes but are not required to be kept in separate bank accounts) to reduce its level of borrowings or to defer and/or reduce the level of new borrowings that would otherwise be required.

Comments regarding the 2014 performance with regard to the above principles are outlined below: (a) Net Financial Liabilities Ratio Council’s policy regarding its net financial liabilities is that they shall not exceed 100% of total operating revenue (adopted February 2010). As at 30 June 2014, Council’s net financial liabilities represented 43% of total operating revenue, and it is projected to increase to 50% as at 30 June 2015. Accordingly, Council is currently operating within its policy threshold. (b) Loan Borrowings Council’s policy relative to loan borrowings states that the use of internal reserves be considered prior to consideration of external loan borrowings. New borrowings for 2014 included $515,000 (Debenture 108) and $125,000 (Debenture 109). Both of these loans were for community group loans (Barossa Valley Hockey Association and Tanunda Tennis Club Inc/Tanunda Netball Club Inc and will be repaid to Council in half yearly repayments.


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The use of internal cash reserves has continued to be used in funding Council’s capital works programs and has subsequently minimised the net interest cost to Council. A summary of the fixed interest rate borrowings are shown below:

Debenture Loans Summary

No. Loan Amount Interest

Rate Final

Payment Date Principal Outstanding as

at 31 December 2014 94 1,500,000 6.75% 16/09/17 429,564 96 2,000,000 6.02% 15/05/18 636,311 97 700,000 5.65% 16/06/18 218,943 98 2,000,000 6.65% 15/01/19 815,809 100 1,954,200 6.45% 15/03/20 937,810 101 2,500,000 6.24% 15/03/21 1,367,081 102 5,000,000 6.62% 16/10/21 2,935,861 103 100,000 6.80% 15/11/21 59,030 104 2,900,000 6.90% 15/03/22 1,811,105 105 7,000,000 7.02% 16/11/24 6,030,543 106 2,000,000 6.85% 15/04/26 1,695,559 107 113,000 4.75% 16/07/22 94,433 108 515,000 6.20% 15/01/34 508,323 109 125,000 5.30% 15/09/29 125,000

17,665,374 (Council did not have any variable interest rate borrowings as at the date of this report.) (c) Reserve Funds A summary of the reserve funds administered by Council are outlined in the table below: Reserve Purpose of Reserve Comments Recreation Facilities Funding of capital

expenditure projects at associated facilities

Reserve administered for each related Section 41 Committee in accordance with Terms of Reference. Favourable/unfavourable budget variances transferred to/from Reserve each year.

Community Hall Facilities

Funding of capital expenditure projects at associated facilities


Main Street Committees

Funding of special projects


Caravan Park Reserves Funding of capital expenditure projects at associated facilities

Operating surpluses transferred to Reserve to fund future capital works.

Environmental Projects

Account for unspent agency/project funds as at 30 June each year

Includes Natural Resource Centre, Bushgardens and Upper Torrens Land Management Project Reserve, where any unspent State Government agency funds are retained each year (if applicable). Other specific Reserves (eg. Quarry Rehabilitation) are projected to be used within the next 12-18 months.

Community Wastewater Management Systems (CWMS) Reserves (various)

To fund future replacement/renewal of CWMS infrastructure and equipment

Council’s CWMS activities operating surplus is transferred to reserves each year to fund future CWMS asset replacement/renewal. Surplus funds in the Reserve are internally borrowed to other Council activities as needed, with an internal interest adjustment to ensure that CWMS ratepayers are not adversely affected.

Refuse and Recycling To fund future Council’s Refuse and Recycling Collection


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Collection Reserves replacement of bins in the district

activities operating surplus is transferred to this Reserve each year to fund future replacement of bins in the district.

Developer Reserve Funding for specific projects/programs

The majority of funds retained relates to Developer Contributions received towards future capital works (eg. open space contributions received as part of development approval process towards future tree-planting, etc at reserves). The funds are subsequently transferred from the Reserve when the related work is undertaken.

Other Reserves Funding for other specific projects/programs

Where funding has been received and needs to be retained for the specific purpose that it has been received, any surplus funds are transferred to a Reserve at end of year and will probably be spent in the following year, depending on the project. This can be operational or capital projects.

For these reserves, only those listed below are actually cash backed:

Investment Reserve Balances as at 31 December 2014

Reserve Invested with Type Maturity

Date Balance Interest Rate

General LGFA Variable N/A 5,248,231 2.50% General LGFA Fixed 08/01/15 500,000 2.65% General LGFA Fixed 15/01/15 500,000 2.65% CWMS Reserves LGFA Variable N/A 20,112 2.50% Developer/Other Reserves LGFA Variable N/A 105,366 2.50% Developer Reserve LGFA Fixed 15/01/15 243,849 3.10% Investment Account NAB Variable N/A 772,323 3.00% Total 7,389,881

(d) Application of surplus funds Surplus funds are invested to maximise investment income and Council’s operating bank account is kept at a minimum level sufficient for working capital purposes. A more detailed review of Council’s 2014 Investments has been included in this agenda (refer Agenda item 7.1.2). LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Section 140 of the Local Government Act 1999 Council Policy Treasury Management Policy Council Strategic Plan Strategy 4.1: Responsibility

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS


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The review of Council’s Treasury Management activities monitors our performance in this area. COMMUNITY CONSULTATION Community consultation is not required for operational Treasury Management. 7.1.4 2015/16 AUDIT COMMITTEE BUDGET INTRODUCTION The Audit Committee considered a draft 2015/16 budget for the Committee’s operations. MOVED Cr Angas That: (1) the draft 2015/16 Audit Committee budget be endorsed for consideration by Council during the budget deliberations; (2) the 2015/16 sitting fee of $550 (excl GST) per meeting for the Independent Chairman of the Audit Committee be endorsed for consideration by Council; (3) the 2015/16 sitting fee of $350 (excl GST) per meeting for the Independent Members of the Audit Committee be endorsed for consideration by Council; and (4) the 2015/16 Consultant budget $3,000 and Training budget $1,000 be endorsed

for consideration by Council. Seconded Cr Milne CARRIED

COMMENT The budget for 2015/16 is being prepared by completing the base budget for activities that are externally and internally required by the Audit Committee. In the Audit Committee budget, two items that require review are Consultant and Training/Seminar expenditure. In the past, consultants have been used to undertake reviews and compliance checks for taxation and accounting, along with purchase and implementation of the internal control tracking tool. The training budget has previously been used by new independent members to attend LGA programs. A proposed 2015/16 budget to support the operations of the Audit Committee is outlined in the following table:

Audit Committee Financial Statement as at 16 January 2015

January YTD

Actuals

Original Budget 2014/15 + Q1 Adj

January YTD

Budget %

variance

Draft 2015/16 Budget

496 - Audit Committee

Salaries (preparation of reports/agendas, attendance at meetings – CEO, Director C&CS, Manager Financial Services, Minute Secretary) 6,588 12,475 47% 13,050

*

Consultants (provision for sundry project work undertaken as part of Committee work plan or specifically requested by Council) 0 3,000 100% 3,000

•

Training / Seminar expenses 0 1,000 100% 1,000 •


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Sitting Fees (Independent Members) 1,700 4,150 59% 5,550 # Advertising 455 0 -100% 470 Insurance & Other 495 501 1% 625

Total 496 - Audit Committee 9,238 21,126

56% 23,695

* Provides for 3.5% EB increase for the Salary cost at existing allocations. Depending on cost centre allocations, this amount may change when the budget is finalised. • Consultants and training expenses are set at the same amounts as the 2014/15 budget and may change after review by Council. # Provides for Sitting Fees as follows: Chairperson $550, Independent Members x 2 - $350 to attend 4 meetings each and the annual report attendance at Council meeting for the Chairperson. LEGISLATIVE / POLICY / COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 – Section 41 Council Policy Annual Budget/Business Plan Policy Council Strategic Plan Strategy 4.1: Responsibility FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Funding to support the operations of the Audit Committee is required to ensure resources are adequate to undertake this vital role within Council and is included in the annual budget. COMMUNITY CONSULTATION A public consultation process of the Annual Budget and Business Plan will be undertaken in May/June 2015. 7.1.5 INTERNAL FINANCIAL CONTROLS COMPLIANCE REPORT INTRODUCTION Update on internal financial control work performed since last Audit Committee meeting. Still working through financial policies and supporting processes. MOVED Mr Heuzenroeder that the report on Internal Financial Controls Compliance be received. Seconded Cr Milne CARRIED

COMMENT In working towards our first audit and auditor opinion on our internal financial controls in the 2015/2016 year we are continuing on focusing on documenting our financial processes and ensuring there are the appropriate controls in place to mitigate any risk around those financial processes. Policies Following is a list of the Financial Policies and their status: Policy Name Date Approved Next Review

Date


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Asset Accounting Policy 27/6/13 1/6/16 Budget and Business Plan and Review Policy 10/9/14 10/9/17 Community Assistance Scheme Policy 16/10/12 1/6/15 Debt Recovery Policy New Policy Disposal of Land and Other Assets Policy 10/9/14 10/9/18 Funding Policy 20/10/09 31/10/12 Investment Policy 15/6/10 1/5/12 Procurement Policy 24/6/14 30/6/16 Prudential Management Policy 15/7/14 15/7/17 Rates Hardship Policy 21/6/11 31/10/12 Remission and Postponement of Fines / Interest Policy New Policy Strategic Rating Policy 17/2/09 30/6/12 Treasury Management Policy 20/10/09 31/10/12 Those policies which are in bold are under current review or are new policies being worked on. These will be forwarded to the Audit Committee as they become available. ControlTrack As reported previously, we have completed our first self-assessment cycle (2013 – Internal Controls First Assessment) of the ‘core’ controls which are contained in the ‘Better Practice Model’. We have tested 194 core controls in our first assessment cycle in which 121 action plans were developed to enhance those controls. Our second self-assessment cycle (2014 – Internal Control Assessment) has commenced, and the results from that cycle will be compared to the initial one with the results again being reported back to the Audit Committee. We have now opted to have our own ‘individual control library’ within ControlTrack instead of staying with the standard ‘shared library’. This will give us the flexibility to tailor the current risks and controls or add additional ones to suit our own operations. We are also looking to extend the use of ControlTrack to the broader Council risk management. Officers are meeting with ControlTrack in early February to initiate the library separation and expand on the organisational risk side of the tool. Risk Assessments The assessment of any financial risks are now being carried out in ControlTrack. Within ControlTrack there is the ability to track the inherent, target and residual risk assessments for each risk. These risks are then mitigated by the controls which are self-assessed within the ControlTrack system. The inherent risk is completed to indicate the severity of the risk should there be no controls in place. The target risk assessment is completed to indicate where we would like to be – should all appropriate controls be in place and effective. During the ‘review’ phase of the Control Self-Assessment Cycle the residual risk assessment is completed indicating the level of risk Council is exposed to with the effectiveness of the controls that are in place.


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LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 – Section 125, 126, 129 (1) (b) Local Government Financial Management (Regulations) 2011, 14(e) Council Strategic Plan Governance and Organisation – Strategy 4.1 : Responsibility. Governance and Organisation – Strategy 4.3 : Systems FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS The regular monitoring and review of Council’s financial internal controls and risk assessments will significantly facilitate the on-going safeguarding of Council assets. The control and review of risks is a core officer function and responsibility. The introduction of the new system supports officers by providing a consistent framework and process. COMMUNITY CONSULTATION Not required under legislation or Council’s Public Consultation Policy. ACTIONS: • Outstanding policies to be presented at the next Audit Committee meeting for review • Officers to provide a demonstration of how Control Track works at the next Audit

Committee meeting.. 7.1.6 REVIEW DRAFT BUDGET 2015-16 AND ANNUAL REVIEW LONG TERM FINANCIAL PLAN INDEXATION AND ASSUMPTIONS INTRODUCTION As per the 2015-16 Annual Budget/Business Plan timetable endorsed by Council in January 2015, the Audit Committee needs to consider and provide comment on the indexation and assumptions for the Annual Budget & Business Plan (AB&BP) 2015-16 and Long Term Financial Plan (LTFP) 2015-16 to 2024-25. MOVED Cr Miller that the Audit Committee notes the indexation and assumptions for the Annual Budget & Business Plan 2015-16 and Long Term Financial Plan (LTFP) 2015-16 to 2024-25. Seconded Mr Heuzenroeder CARRIED Overview The review of indexing and assumptions for the Annual Budget & Business Plan 2015-16 and Long Term Financial Plan (LTFP) 2015-16 to 2024-25 will be considered by Council at the information briefing Workshop on 4 February 2015. This process enables Council to take a long term view and ‘set the big picture’ before starting the annual budget process. A copy of the Council Workshop presentation and background reading papers were provided to the Audit Committee. Key Assumptions & Enhancements


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Each annual review process provides an opportunity to introduce new assumptions or enhance the information base as required, using the existing indexation and assumptions. The main assumptions and indexation being considered during this early stage of budget preparation is the income and expenditure indexation. As included in the presentation paper, Council reviews the proposed rate increase and the indexation application to operational expenditure. The LGPI (Local Government Price Index) is used as a base for the plan(s) and considering local needs and requirements to meet service levels, including external influences such as service contracts where fuel prices and employment costs may vary the service cost. The Local Government Price Index (LGPI) increase for 12 months to 30 June 2014 was 2.3% 30 September 2014 was 2.0%; (noting the Adelaide CPI for the 31 December period was 1.7%). Income Rate increases to fund and ensure service level provision is maintained in line with revised sustainability requirements. The adopted General Rate Revenue indexation rates in the LTFP from last year were split in previous years into Residential and Non-residential rates. From next year both the Residential and Non-residential rate revenue were budgeted to increase at 4.50% in 2015-16, 5% in 2016-17, 4.5% for two years then 3.5% per annum thereafter. The adopted Waste Service Rate Revenue indexation rates in the LTFP from last year was budgeted to increase at 5.0% in 2015-16, 6.5% in 2016-17 and 2017-18, 6.0% in 2018-19 then 4.5% for the next 3 years and then 4.0% and the last year at 3.5%. The adopted Community Wastewater Management Systems Service Rate Revenue indexation rates in the LTFP from last year was budgeted to increase at 2.0% in 2015-16, 2.5% in 2016-17, 3.5% in 2017-18 and then 4.0% per annum thereafter. A review of the service charge is underway following requirements from ESCOSA to now include cost of Capital into the annual operating cost. Other income indexation has a base increase of 2.0%. Expenditure Operating expenditure indexation will be assessed individually for internal and external factors as follows:

• employee costs at the enterprise bargaining agreements scheduled to increase at 3.5%;

• Contractors and materials have a base increase of 2.0%; the default indexation for expenditure;

• selected operating costs have been isolated as increases to these are unique eg. power 6%, water 2%, insurance TBA%, waste collection TBA% all plus changes to service provision, ie. increased number of services provided or usage


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Long term plans for Capital expenditure will be reassessed; ensuring funding is allocated for renewal and replacement assets along with an allowance for new discretionary projects. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 – Section 122 Council Policy Annual Budget/Business Plan Policy Council Strategic Plan Strategy 4.1: Responsibility FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Long-term financial planning is an iterative process - it occurs on a regular basis and experience suggests that it will take many attempts to ‘get it right’. As new information is included in the planning process – from the latest advice on interest rates to information from the community on expected service standards – the plans are discussed, reviewed and fine-tuned. Each annual review process provides an opportunity to introduce new assumptions or enhance the information base as required. COMMUNITY CONSULTATION A public consultation process of the Annual Budget and Business Plan will be undertaken in May/June 2015. 7.1.7 PROGRESS REPORT – RISK MANAGEMENT MOVED Mr Heuzenroeder that the progress report on risk management be received. Seconded Cr Miller CARRIED Risk Management Framework The draft Risk Policy is still in its consultation period. Current work on risk facets including land use agreements, insurance requirement reviews and procurement which are all currently adding to the Risk Management Framework. ControlTrack Council has now purchased an extension of the “ControlTrack” Program currently used by the Finance team. Council’s broader Strategic and Organisational risks are to be identified in ControlTrack and a set of controls developed to mitigate those risks. Meeting set for February will start the import of The Barossa Council risk data, including internal controls, control owners and reviewers, into the new system. This will be achieved by separating the Council’s control library from the shared SALGFMG control library and setting up additional sets of control activities. Mutual Liability Claims


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The status hearing for the McCrystal Claim, that names The Barossa Council as the third defendant in a negligence claim, was set down for January 15th 2015 but has now been postponed to March 12th at the second defendant’s request. WorkCover has now issued a separate summons against the Council as the third defendant in the same case, stating “The third defendant, its servants or agents, were negligent and/or in breach of duty of care”. The WorkCover proceedings will be stayed for 6 months to await the negotiations of the McCrystal primary action. Emergency Planning The Council’s Emergency Plan and Sub - Plans for the Nuriootpa Office, Works Depots, Libraries, Tanunda Gallery, Bushgardens and Barossa Visitor Centre are now ready for implementation. The first emergency drills are scheduled for the Tanunda and Williamstown depots in February. The Emergency Planning Committee have now finalised the purchase of six hand held two way UHF radios for use in emergency response at the Nuriootpa Office. These radios are the same make and model purchased by the Depots for use in emergency response and event management, so they can also act as back up units whilst Nuriootpa Office is closed. Business Continuity Plan After several extensions of the review period, to allow for the completion of outstanding business impact assessments, the majority of these documents have now been received. Work is now underway on compiling and updating Council’s Business Continuity Plan (BCP) and the subordinate Business Unit Recovery Sub Plans. External Audits and Rebates This year’s LGAMLS Risk Review will be undertaken in the next several months. Some of the areas that require work to close out last year’s corrective actions include Tree Management Policy and Guideline development and further implementation of the Volunteer Management Framework across the Organisation. WHS Plan and WHS Management System With the finalisation of the current group of WHS Management System documents a new schedule has been developed for further processes identified through recent task risk assessments. The new processes are progressing with the Vehicle and Driver Safety Process being worked on in conjunction with the Councils Vehicle Policy. The Asbestos Management Process is now in its early draft stage with discussions being held with Council’s Manager - Asset & Infrastructure around the development of an Asbestos Management Plan and relocating the current Asbestos Register into council’s asset management program “Conquest”. The recently reviewed Training and Professional Development Policy and Training Request and Needs Analysis Process are through the consultation phase and have now been signed off by CMT. ACTIONS: • Draft Risk Management Framework to be put on the agenda for next Audit

Committee meeting


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8. OTHER

8.1 AUDIT COMMITTEE ACTION TRACKING MOVED Cr Angas that the progress report on risk management be received. Seconded Cr Milne CARRIED 9. ANY OTHER BUSINESS Nil. 10. NEXT MEETING To be advised. 11. CLOSURE There being no further business, Mr Brass closed the meeting at 1:40 pm.

Confirmed:

Chairman: ...................................... Date: .............................

AUDIT COMMITTEE

REPORTS FOR INFORMATION

24 JUNE 2015 CONSENSUS AGENDA 6.1 REPORTS FOR INFORMATION 6.1.1 REVIEW OF DELEGATIONS

Annual Review The Barossa Council’s Delegations Register (“the Register”) is reviewed: (1) annually in accordance with Section 44(6) of the Local Government Act

1999 (“the Act”), and (2) by way of best practice quarterly and amended if the Local Government Association’s Quarterly Reviews recommend that amended Instruments of Delegation be immediately adopted.

Please find attached (Attachment 1) an extract of the minutes of the Council meeting held on the 17 March 2015, detailing the various resolutions required by the annual review of delegations. Copies of the Instruments of Delegation where amendments were required, as well as Instruments of Delegation where no changes were made are available to Members of the Audit Committee if requested. Due to the file size they have not been included as a part of this report.

Subsequent Review A more recent review of Council’s by-laws and delegations identified a need to review and update the delegation of Council’s powers and functions afforded in the following by-laws:

• Permits and Penalties By-law 2013 • Moveable Signs By-law 2013 • Roads By-law 2013 • Local Government Land By-law 2013 • Dogs By-law 2013 • Cats By-law 2013 • Nuisances Caused By Building Sites By-law 2013

Please find attached (Attachment 2) an extract of the minutes of the Council meeting held on the 21 April 2015 updating the delegation of Council’s powers and functions relating to these by-laws. RECOMMENDATION: That the minutes be noted.

2015/75

The Barossa Council Minutes of Council Meeting held on Tuesday 17 March 2015

Where a referral agency has recommended refusal A land division application which involves more than 20 allotments

Of the 11 applications refused by the Panel in 2012-2014, five were non-complying, one merit residential development and six merit land divisions. Attachment: Amended policy showing the proposed changes. Note: A separate report is being presented to Council regarding the annual review of all delegations. That review has highlighted several changes to delegations to the Panel however they do not relate to the Development Plan Consent Delegation Policy. The changes to the policy will be reflected in sub-delegations by the Chief Executive Officer to staff. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Development Act 1993 Council Strategic Plan 3.5 Planning & Building 4.2 Service 4.3 Systems FINANCIAL AND RISK MANAGEMENT CONSIDERATIONS The ability for staff to refuse certain development applications will create efficiencies and may require fewer meetings of the Development Assessment Panel. The requirement for recommendations to be counter signing by senior management will ensure a legitimate and rigorous process is followed prior to a decision being made to refuse a proposal. COMMUNITY CONSULTATION There is no requirement to undergo consultation in respect to the review of the Development Plan Consent Delegation Policy. 7.3.1.2 ANNUAL REVIEW OF DELEGATIONS

MOVED Cr de Vries

1. Annual Review That the Council has reviewed its delegations for the time being in force, in accordance with Section 44 of the Local Government Act 1999 and has resolved in the terms set out herein with respect to that review.

2. Revocations That having delegated powers and functions to the Chief Executive Officer of the Council on the 18th day of March 2014 under the:

(i) Development Act 1993, Development (Development Plans) Amendment Act 2006 and Development Regulations 2008 (ii) Local Government Act 1999 (iii) Residential Parks Act 2007 (iv) Road Traffic Act 1961 (SA), Road Traffic (Miscellaneous)

Regulations 2014 and Road Traffic (Road Rules – Ancillary and Miscellaneous Provisions) Regulations 2014 the Council hereby revokes this 17th day of March 2015 delegations of those powers and functions under the following Acts set out below made to the Chief Executive Officer of the Council on the 18th day of March 2014:

(i) Development Act 1993, Development (Development Plans) Amendment Act 2006 and Development Regulations 2008:

EXTRACT FROM MINUTES

2015/76


the power pursuant to Development Regulation 78(4)(d) for building rules regarding bushfire prone areas

(ii) Local Government Act 1999: - the power pursuant to section 302B regarding

Whistleblowing (iii) Residential Parks Act 2007:

- the entire Instrument of Delegation (iv) Road Traffic Act 1961 (SA), Road Traffic (Miscellaneous)

Regulations 2014 and Road Traffic (Road Rules – Ancillary and Miscellaneous Provisions) Regulations 2014:

- the powers pursuant to Regulation 6B regarding Event Management Plan and Regulation 14 regarding Permit Zones.

3. Delegations under the Local Government Act 1999 The Council, in exercise of the power contained in Section 44 of the Local Government Act 1999, hereby delegates to the person occupying the office of Chief Executive Officer this 17th day of March 2015, the powers and functions under the following Acts set out below subject to any conditions and/or limitations set out below:

(i) Local Government Act 1999: - the power pursuant to section 302B regarding Whistleblowing

(ii) Residential Parks Act 2007: - the entire Instrument of Delegation

(iii) Road Traffic Act 1961 (SA), Road Traffic (Miscellaneous) Regulations 2014 and Road Traffic (Road Rules – Ancillary and Miscellaneous Provisions) Regulations 2014: - the powers pursuant to Regulation 6 regarding Event Management Plan and Regulation 17 regarding Permit Zones.

4. Delegations under the Development Act 1993

4.1 The Council, in exercise of the power contained in Section 20 and 34(23) of the Development Act 1993 hereby delegates to the person occupying the office of Chief Executive Officer this 17th day of March 2015, the powers and functions under the Development Regulations 2008 set out below subject to any conditions and/or limitations set out below:

- Regulation 47A regarding Minor Variation of Development Authorisation

- Regulation 76D(4a) regarding Swimming Pool Safety

4.2 The Council, in exercise of the power contained in Section 20 and 34(23) of the Development Act 1993 hereby delegates to the Development Assessment Panel this 17th day of March 2015, the powers and functions under the Development Act 1993, and Development Regulations 2008 set out below subject to any conditions and/or limitations set out below:

- Section 34(1a) of the Development Act regarding provision of report to the Development Assessment Commission


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Regulation 74 of the Development Regulations regarding determination of Development Assessment Commission as a Relevant Authority.

5. Authorisations for financial signatories 5.1 To reflect changes in staff members’ roles, Council hereby updates the signatory authorisations as listed on the Authorised Financial Signatory Schedule (which is in Attachment 1 at Appendix 23 and is distributed under separate cover).

5.2 That the Chief Executive Officer may review, alter or add financial signatories from time to time.

6. Instruments of Delegation That the Instruments of Delegation as set out at Attachment 1 of this Report dated 17th day of March 2015 under the:

Development Act 1993, Development (Development Plans) Amendment Act 2006 and Development Regulations 2008 Local Government Act 1999 Residential Parks Act 2007 Road Traffic Act 1961 (SA), Road Traffic (Miscellaneous) Regulations 2014 and Road Traffic (Road Rules – Ancillary and Miscellaneous Provisions) Regulations 2014 Authorised Financial Signatories Schedule

be amended in accordance with this resolution. Seconded Cr Harms CARRIED 2014-18/196 INTRODUCTION The Barossa Council’s Delegations Register (“the Register”) is reviewed: (1) annually in accordance with Section 44(6) of the Local Government Act 1999 (“the Act”), and (2) by way of best practice quarterly and amended if the Local Government Association’s Quarterly Reviews recommend that amended Instruments of Delegation be immediately adopted. For the purposes of this review, the Register is divided into two groups of Instruments of Delegation: Attachment 1 contains those Instruments of Delegation in which there have been legislative amendments and which require Council approval to delegate to the Chief Executive Officer. A summary of all amendments is in the Comments section below, and also appear by way of track changes throughout the Attachment. Attachment 2 contains those Instruments of Delegation in which there are no proposed changes, but are provided for Elected Members’ review and information. Both attachments form part of this report, but due to their size they are provided by separate cover and entitled “7.3.1.2 Attachments: Annual Review of Delegations”. Elected Members will note that the Instruments of Delegation in the Register contain both delegations and sub-delegations. The annual review of delegations before Council today deals only with the Council’s delegations. The Chief Executive Officer’s sub-delegations will be reviewed by him in a separate process. COMMENT Background to Delegations


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Council decision-making occurs in one of two ways, when it:

sits formally as the Elected Body at a formally constituted Council meeting; and uses delegations.

Council may only exercise those powers and functions which are conferred on it by legislation. The ways in which Council may exercise its powers and functions are:

when the Council itself exercises the power/function; and where the legislation enables it, a power or function may be delegated pursuant to an Instrument

of Delegation and exercised in the name of a delegate.

Used well, delegations can greatly assist Council by enabling the Elected Body to progress with the strategic/policy element of local government and leave the day-to-day operations and administration of the Council to the staff who have the relevant expertise and experience to deal with such matters thus improving effectiveness and efficiency.

Delegations can range from signing contracts which commit the Council to significant expenditure (in line with approved budgets) to approving development applications and issuing enforcement notices. Accordingly, it is essential to good governance that the Council fully and carefully considers the delegations it proposes to make and demonstrates it has turned its mind to the issue. Process Improvement for Delegations

Council’s past process for the annual Delegations Review was to review, revoke and reissue all the Instruments of Delegation that comprise the Delegations Register, in order to show that the Elected Body had considered each power it delegated to its Chief Executive Officer and others. This process was in accordance with the LGA’s recommendations for transparency, but was beyond what was required in the Act, which called simply to “review”. The administration of the Register has become burdensome due to:

the increasing number of Instruments of Delegation, and the practice of reviewing, revoking and reissuing all Instruments, which then also requires a

review, revoke and reissue of the all sub-delegations to over 70 officers.

Legal advice supports a change in process to further improve administrative efficiency and it is that the Elected Body:

continue to annually review the entire Register in accordance with Section 44(6) of the Act; and only revoke and adopt changes to the relevant power if there was an amendment to the

Instrument of Delegation, which has occurred either due to a legislative change, or if the Elected Body revoked an existing delegation. This means the entire Instrument does not have to be revoked and reissued.

Dates of delegation for each power would continue to be recorded in the Register for transparency and accountability.

Summary of Amendments in Attachment 1

Local Government Act 1999 (Attachment 1 – Appendix 13) Page 85: updated reference to Local Government (General) Regulations 2013 in accordance with legislative amendment.

Road Traffic Act 1961 (Attachment 1 – Appendix 17) Pages 4-5: updated references to Road Traffic (Miscellaneous) Regulations 2014 and minor renumbering in accordance with legislative amendment.

Development Act and Regulations (Attachment 1 – Appendix 18) Page 58: inclusion of new Regulation 81A regarding “minor variation of development

authorisation” – due to legislative addition Page 62: inclusion of new Regulation 94A regarding swimming pool safety – due to legislative addition

Page 63: removal of Regulation 95 regarding Building Rules Bushfire Prone Areas – due to legislative amendment

Development Act and Regulations- to the Development Assessment Panel (Attachment 1 - Appendix 18A)

For certain development proposals the Development Assessment Commission will be the relevant authority, either by default (e.g. crown development or electricity infrastructure) by regulation (e.g. certain land divisions in the Mount Lofty Ranges Watershed) or by special


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declaration (e.g. where the Minister believes Council has a conflict of interest or the Coordinator-General declares certain projects of $3 million or more as being of State significance). In such situations Council is given opportunity to provide comments on the application to the Commission.

Currently the Development Assessment Panel only has delegation to provide comment to the

Commission in respect to crown development or electricity infrastructure, but not for other proposals. While the Chief Executive Officer has delegation which he has sub-delegated to various officers, from time to time proposals are received which delegated officers believe should be presented to the Development Assessment Panel for their independent view.

Pages 2 and 7 – inclusion of powers at sections 11.2 and 74 allows the Panel to provide the Commission with comment on relevant proposals when necessary.

Residential Parks Act 2007 (Attachment 1 – Appendix 22)

This Instrument has been subject to comprehensive review and updated legal advice. Delegations of powers or functions have been retained. Specific references to delegation of statutory duties under the Residential Parks Act 2007 have been removed as they are legal obligations distinct from the operation of a particular function. A tracked changes copy is available upon request, a clean copy is attached. Page 12 - a delegation in respect of requesting reasons from the Tribunal under section 123 of the Residential Parks Act was added.

Authorised Financial Signatories (Attachment 1 – Appendix 23)

Names updated to incorporate changes in staff roles. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Section 44 of the Local Government Act 1999 (the LG Act) provides that:

‘A council may delegate a power or function vested or conferred under this or another Act.’

Various powers cannot be delegated, for example the power to declare a rate – see Section 40(3). In reliance on the above power, the Council is able to delegate many of its powers and functions under many pieces of legislation.

Section 44(2) of the LG Act provides that:

‘A delegation may be – (a) to a council committee; (b) to a subsidiary of the council; or (c) to an employee of the council; or (d) to the employee of the Council for the time being occupying a particular office or position; or (e) to an authorised person.’ The Council may only delegate to those persons listed in Section 44(2) of the LG Act. It is noted that the Council may not delegate a power or function to an elected member including the Mayor.

An ‘authorised person’ means a person appointed by the Council as an authorised person under the LG Act. It is noted elected members may not be appointed authorised persons under the LG Act.

Development Act 1993 Section 20 of the Development Act 1993 (the DAct) provides that: ‘(1) The Minister, the Advisory Committee, the Development Assessment Commission or another authority established under this Act, or a council, may delegate a power or function vested or conferred under this Act. (2) A delegation:

(a) may be made: (i) to a particular person or body; or (ii) to the person for the time being occupying a particular office or position; or (iii) to a subsidiary established under the Local Government Act 1999; and


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(b) must in prescribed circumstances be made to a committee or subcommittee of the Advisory Committee or Development Assessment Commission established by the regulations; and (c) may be made subject to conditions and limitations specified in the instrument of appointment; and (d) subject to any other provision of this Act or the regulations, is revocable at will and does not derogate from the power of the delegator to act in a matter; and (e) in the case of a delegation by the Advisory Committee, the Development Assessment Commission or another authority under this Act – may continue despite a vacancy in the membership of the body. (3) A power or function delegated under this section may, if the instrument of delegation so provides, be further delegated. (4) Subject to subsection (7), a delegate must not act in any matter pursuant to the delegation in which the delegate has a direct or indirect private interest.’

Development Plan Consent – Section 34(23) There is a specific requirement on the Council to delegate its power to determine whether or not to grant development plan consent under the DAct as follows: ‘(23) A council must delegate its powers and functions as a relevant authority with respect to determining whether or not to grant development plan consent under this Act to - (a) its council development assessment panel; or (b) a person for the time being occupying a particular office or position but not including a person who is a member of the council); or (c) a regional development assessment panel (if such a delegation is consistent with the extent to which the panel may act under the provisions of the regulations constituting the panel and in addition to the operation of subsection (1)(ab)). (24) A council may, in connection with the operation of subsection (23) - (a) make a series of delegations according to classes of development; and (b) vary any delegation from time to time, but a council cannot at any time (c) act in its own right in a matter that is subject to delegation under that subsection; or (d) give a direction with respect to the exercise or performance of a power or function under the delegation.

(26) A power or function delegated under subsection (23) may be further delegated (and any such further delegation may be made subject to specified conditions and limitations, is revocable at will and will not derogate from the power of the panel or person making the delegation to act in any matter). (27) A council must - (a) establish a policy relating to the basis upon which it will make the various delegations required by subsection (23); and (b) ensure that a copy of that policy is available - (i) for inspection at the principal office of the council during ordinary office hours; and (ii) for inspection on the Internet.’ Sub-delegation Section 44(4) LG Act relates to sub-delegation and provides that: ‘(4) A delegation - (a) is subject to conditions and limitations determined by the council or specified by the regulations; and (b) if made to the chief executive officer authorises the sub-delegation of the delegated power or function unless the council directs otherwise and if made to anyone else authorises the sub-delegation of the delegated power or function with the approval of the council; and (c) is revocable at will and does not prevent the council from acting in a matter.’


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Strategic Plan: 4. Governance and Organisation – 4.3 Systems: We are committed to ensuring the Systems and Processes of Council support the organisation in delivering the best possible services to our community in an open and transparent manner. FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Failure to conduct an annual review will result in non-compliance with legislation, as an annual review (once in every financial year) is required under section 44(6) of the Local Government Act 1999. The risk of having ineffective or invalid delegations is minimised as the delegations being considered have been recommended by Norman Waterhouse Lawyers (which prepared the Instruments for the LGA) and Wallmans Lawyers which prepared the Residential Parks Act 2007 Instrument. It is imperative that delegations are validly made as consequences of ineffective or invalid delegations include:

the exercise of power may fail – ie the decision made may be liable to being overturned by a court

the cost of a successful challenge to a decision made without lawful delegation will likely be borne by the Council

where the unlawful exercise of the power has caused loss or damage the Council may be liable for such loss or damage.

COMMUNITY CONSULTATION There is no legislative requirement to consult the community in this situation, nor, in officers’ opinions, do the particular circumstances require it as the delegations themselves are based on prescribed LGA templates where there is no option for amendment through community feedback. For transparency, the community has access to the delegations register on Council’s website so is made aware of the powers of the CEO as delegated by the Council, and also the powers of officers as sub-delegated by the CEO. 7.3.2 FINANCE - DEBATE 7.3.2.1 MONTHLY FINANCE REPORT (AS AT 28 FEBRUARY 2015) B411 MOVED Cr Boothby that the Monthly Finance Report as at 28 February 2015 be received and noted. Seconded Cr Miller CARRIED 2014-18/197 INTRODUCTION The Monthly Finance Report (as at 28 February 2015) was provided with the agenda for this meeting. COMMENT The Uniform Presentation of Financials report provides information as to the financial position of Council, including notes on material financial trends and transactions. The report has been prepared comparing actuals to the Original 2014/15 Budget and incorporating the adopted Revised Budgets for September and December 2014. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Local Government (Financial Management) Regulations 2011 - Reg 9(1)(b) LGA Information paper no. 25 – Monitoring Council Budget Performance FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS To enable Council to make effective and strategic financial decisions, a regular up to date high level financial report is provided.


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The Barossa Council Minutes of Council Meeting held on Tuesday 21 April 2015

The Board is now seeking Council approval to pay a Remuneration Fee to Independent members of the NCPA Audit Committee. Pending approval of the proposed Remuneration Fee, the Board will continue to seek to appoint Independent Members. It is understood that a previous Independent Member of the NCPA Audit Committee has now indicated an interest again serving on the Committee. Upon request of the NCPA the unsuccessful nominees for the Independent Member positions on Council’s Audit Committee have been contacted by Council Officers and the contact details of those who expressed an interest in the independent member positions on the NCPA Audit Committee have been forwarded to the Board for consideration. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999, Local Government (Financial Management) Regulations 2011 Policy Charter Nuriootpa Centennial Park Authority Council Strategic Plan 1.3 Recreation 2.1 Tourism 2.2 Business and industry FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial Costs associated with the operation of NCPA;s Audit Committee will be included within NCPA’s 2015/2016 draft budget. Resource As per Clause 38.2.1 of the NCPA Charter, a senior officer(s) of the Council designated by the Chief Executive Officer of the Council will attend Audit Committee meetings in a non-voting capacity – the Director Corporate and Community Services has been appointed in this role. Risk Management The NCPA is legislatively required to have an Audit Committee under Schedule 2 Clause 13(4) of the Local Government Act. COMMUNITY CONSULTATION None required. 7.3.1.4 DELEGATED POWERS UNDER BY-LAWS B2743 MOVED Cr Boothby that: (1) In exercise of the powers contained in Section 44 of the Local Government Act 1999 the powers and functions under the following by-laws and specified in the proposed Instruments of Delegation contained in the annexure to this report marked Attachment 2, are hereby delegated this 21st day of April 2015 by Council to the person occupying the office of the Chief Executive Officer (and anyone acting in that position), subject to the conditions or limitations (if any) specified in the proposed Instruments of Delegation: Permits and Penalties By-law 2013 Moveable Signs By-law 2013

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Roads By-law 2013 Local Government Land By-law 2013 Dogs By-law 2013 Cats By-law 2013 Nuisances Caused By Building Sites By-law 2013 (2) In accordance with sections 44 and 101 of the Local Government Act 1999, the

Chief Executive Officer is authorised to sub-delegate these powers and functions to an officer or officers of Council as the Chief Executive Officer sees fit, provided that any sub-delegation shall be subject to the same conditions and limitations (if any) as are specified in the proposed Instruments of Delegation.

Seconded Cr Hurn CARRIED 2014-18/230 INTRODUCTION On 17 December 2013, The Barossa Council endorsed a suite of seven by-laws which came into effect on 9 May 2014. A recent review of Council’s by-laws and delegations has identified a need to review and update the delegation of Council’s powers and functions afforded in these by-laws. COMMENT Council has had by-laws in place for many years as they provide a valuable tool to assist officers in regulating and resolving a range of matters at a local level which may otherwise be unable to be dealt with through existing primary legislation. At Council’s 17 December 2013 meeting, the following seven by-laws were approved in accordance with the Local Government Act 1999 (‘the Act’). By-Law #1 Permits and Penalties Purpose: A by-law to repeal by-laws, provide for a permit system and continuing penalties in Council by-laws and to clarify the construction of such by-laws. By-Law #2 Moveable Signs Purpose: To protect visual amenity and public safety on roads and footpaths by setting standards for moveable signs and regulating their placement in a manner which recognises the advertising needs of businesses to maximise economic viability. By-Law #3 Roads Purpose For the management, control and regulation of activities on roads in the Council’s area. By-Law #4 Local Government Land Purpose For the management and regulation of the use and access to local government land vested in or under the control of the Council, including the prohibition and regulation of particular activities on local government land. By-Law #5 Dogs Purpose For the Management and control of dogs within the Council’s area and to limit the number of dogs kept in premises. By-Law #6 Cats Purpose To limit the number of cats that can be kept on premises and to provide for the control and management of cats in the Council’s area.

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By-Law #7 Nuisance Caused by Building Sites Purpose To prevent and suppress certain kinds of nuisance caused by rubbish escaping from land on which building work is being undertaken. These by-laws were Gazetted on 9 January 2014 and in accordance with section 249(5) of the Local Government Act 1999 (“the Act”), came into operation four months later on 9 May 2014. Opportunity now presents to appropriately empower the Chief Executive Officer who will sub-delegate to relevant officers to assist them in accordance with their day-to-day duties. Without this delegation, such matters would otherwise need to be presented to Council for approval. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 The Barossa Council By-laws 2013 By-Law #1 Permits and Penalties By-Law #2 Moveable Signs By-Law #3 Roads By-Law #4 Local Government Land By-Law #5 Dogs By-Law #6 Cats By-Law #7 Nuisance Caused by Building Sites FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial There are no additional financial implications of these delegations as the officers nominated would exercise the powers and functions as part of their regular duties. Resource There are no additional resource implications. In fact, the delegation of these powers will reduce the time required for the Elected Body to otherwise have to deal with issues arising under the By-laws. Risk Management Risk is managed by ensuring the delegates are aware of their powers through Instruments of Sub-delegation. COMMUNITY CONSULTATION There is no legislative requirement to consult the community in this situation, nor, in officers’ opinions, do the particular circumstances require it as the powers that are available to the delegate are limited within the By-laws themselves. For transparency, the Delegations Register is a public document through which the public can be made aware of the names, powers and functions of the delegates should they wish. 7.3.2 DEBATE AGENDA - FINANCE 7.3.2.1 MONTHLY FINANCE REPORT (AS AT 31 MARCH 2015) B411 MOVED Cr Miller that the Monthly Finance Report as at 31 March 2015 be received and noted. Seconded Cr Seager CARRIED 2014-18/231

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AUDIT COMMITTEE


24 JUNE 2015 6.1.2 RISK MANAGEMENT REPORT Risk Management Framework Example risk appetite statements have been presented at the June 11th Council Workshop. Development of a Risk Implementation Flowchart has provided an educational tool to help inform management and staff of how risk management impacts on Council operations. The corporate risk register has been migrated to the new council intranet site and workflow testing is now underway. Review of the risk register by Directorate has started. Corporate and Community Services has started the sorting of risk Types and Categories. ControlTrack The ControlTrack project has been progressing with linkages to the LGA Better Practice Model Study and alignment of risk categories and business practices to the developing risk register and draft risk process. Work planned to be carried out with ControlTrack for February this year did not occur due to a hold up with the new ControlTrack IT platform being developed. The library of controls and risks relating to the existing Internal Financial Control data for Barossa Council within ControlTrack has now been separated from the ‘shared’ library. This enables us to add and change existing controls and risks outside the set ‘shared’ library. No further setup of additional sets of control activities and risks has been undertaken as yet and this is being delayed now until the release of the updated ControlTrack platform (anticipated by mid-August 2015). Mutual Liability Claims The 2015 review of Mutual Liability Claims has seen a continuing reduction in the total number of claims against Council. To account for the Statute of Limitations on claims, the report runs over a five year period with a total of 76 claims in this period with 12 claims still unresolved. There has been a steady decline in claim numbers since 2012 (19) to 2015 (6) which may be a reflection on improved proactivity from Councils Works & Engineering Directorate in particular. LGAMLS - Risk Review 2015 The 2015 Risk Review has been completed this month with an unofficial result of 92% compliance. Areas of concern included: Councils Tree and Vegetation Management Framework and requirements for Business Continuity Plan testing scenarios to be undertaken (see Business Continuity Plan below). Emergency Planning The 2015 emergency drill has been successfully completed for the Tanunda Depot with several issues being identified during the fire scenario. Emergency shut off switches required for the fuel store and audibility of the emergency alarm were two requirements to be actioned.

Business Continuity Plan (BCP) After several extensions of the review period, to allow for the completion of outstanding business impact assessments, all impact assessment documents have now been returned. Work is now underway on compiling and updating BCP and the subordinate Business Unit Recovery Sub Plans and instigating a meeting with members of the Business Continuity Working Party. Scenario testing (as per LGAMLS risk review gaps) will need to be scheduled as part of the process. External Audits and Rebates The 2015 LGRWCS Rebate and KPI audit results were the best results achieved by Council to Date with 100% rebate score coming from the results of the 2014 KPI Audit and WorkCover Review combination. WHS Plan and Risk Management System With the finalisation of the current group of WHS Management System documents a new schedule has been developed for further processes identified through recent task risk assessments. The new processes are progressing with the Vehicle and Driver Safety Process being finalised in conjunction with the Councils Vehicle Policy and Councils Safe Site Policy moving into the Consultation phase. The 2015 KPI Action Plan has been submitted to LGAWCS for approval. This Plan will be the backbone of the 2015 KPI audit which will be used to determine the 2016 KPI rebate. The 2015/2017 WHS Plan and this year’s KPI Action plan have been written around the Standards 4 & 5 of the Performance Standards for Self Insurers (PSSI) being S4 Measurement and Evaluation and S5 Management Systems Review and Improvement. Barossa is the first regional council to reach this level of review. RECOMMENDATION: That the report be noted.

AUDIT COMMITTEE


24 JUNE 2015 6.1.3 STRATEGIC PROJECTS FRAMEWORK The attached report is provided as an update on progress against targets and timeframes agreed following review and updating of the framework in January 2015. Both quantitative and qualitative updates have been provided for key projects spanning 2013/14-2014/15. RECOMMENDATION: That report be noted.

The Barossa Council

Strategic Projects Framework

Progress Report - 19 June 2015

Contents

INTRODUCTION .................................................................................................................. 2

FOCUS AREA 1 – MAINTAINING A CONSTRUCTIVE CULTURE ................................................... 2

FOCUS AREA 2 – BUDGET SAVINGS & EFFICIENCIES ................................................................ 4

FOCUS AREA 3 – RISK MANAGEMENT AND WORK HEALTH SAFETY .......................................... 8

FOCUS AREA 4 – BUILDING ORGANISATIONAL & COMMUNITY CAPACITY & EFFICIENCY .......... 10

FOCUS AREA 5 – SUSTAINABILITY ....................................................................................... 13

FOCUS AREA 6 – CORPORATE PLANNING ............................................................................ 16

FOCUS AREA 7 – ORGANISATIONAL IMPROVEMENT (BUSINESS EXCELLENCE) ......................... 17

FOCUS AREA 8 – PERFORMANCE MEASUREMENT & REPORTING ........................................... 20

INTRODUCTION The following report is provided as an update on progress against agreed targets and timeframes for Stage 1 (January 2013 – December 2015) and Stage 2 (January 2015 – June 2016) deliverables as detailed in the updated Strategic Projects Framework approved in January 2015. FOCUS AREA 1 – MAINTAINING A CONSTRUCTIVE CULTURE

Objectives

• Continue to develop our organisational culture by addressing relevant factors of organisational, team and individual behaviours and impacts to:

o Encourage the setting and achieving of goals o Enjoy work and produce high quality services o Support people and be open to new ideas and o Be friendly, open and sensitive.

• Generate improved staff morale and organisation culture. • Encourage flexibility within the workplace and assist in driving efficiency improvements in all

strategies outlined. Performance Results Measure Target Result Comment % shift in the culture survey results to an organisation of progressively improving achievement and self-actualising styles of operation.

10 percentile shift upward

Normed data

18 percentile shift in both

syles

(normed data

Trending above expectations by 8 percentile points.

% of constructive styles above 50th percentile.

100% 50% Two of the four constructive styles are above the 50th percentile, with the other two styles approaching the 45th percentile

% of defensive styles at or below the 49th percentile.

100% 100% All defensive styles are below the 49th percentile

Performance Outputs and Outcomes Project Status Description

Culture and Organisation Action Plan Change Champion: Chief Executive Officer Project Coordinator: Manager, Organisational Development

Phase 1 – COMPLETE Phase 2 – IN PROGRESS

The organisational culture was measured for the second time in August 2014. Results indicate partial achievement of the KPI, in that all ‘defensive’ styles are below the 50th percentile, and half of the ‘constructive’ styles above the 50th percentile. Marked movement have been made toward the 50th percentile in the remaining ‘constructive’ styles. Several actions from the initial Culture Improvement Plan have been initiated and continue: • Life Styles Inventory (LSI) support

sessions for managers are running in the Organisational Management Group meetings. Discussion includes behaviour types and development of understanding and practical application of the information provided.

• LSI opportunities are available to other members of the organisation other than OMG.

• Organisational Management Group (OMG) continues to meet fortnightly to support strategic and operational decision making and culture change agenda

• People Management Group (PMG) continues to meet quarterly for individual and group development.

• Organisational Action Plan and Team Action Plans as a result of the 2014 OCI/OEI have been developed and deployed.

FOCUS AREA 2 – BUDGET SAVINGS & EFFICIENCIES Objectives • Deliver budget savings. • Reduce FBT cost and future taxation policy exposure. • Deliver direct purchasing savings and or organisational efficiencies and limit exposure to

organisational risk in procurement. Performance Results Measure Target Result Comment Actual Operating Expenditure as a % of Budgeted Operating Expenditure

To be Determined

To be Determined

A new performance measure has been designed to more accurately reflect savings achieved. Results are currently being calculated for the 2014/15 financial year.

Actual Capital Expenditure as a % of Budgeted Capital Expenditure

To be Determined

To be Determined

As above

% of eligible purchases that have a matching purchase order by July 2015.

85% 85.71%

Since January 2015 and the implementation of Council’s revised Procurement Policy and Supporting Process documentation, we have seen a steady increase in the % of eligible purchases with a matching purchase order.

Chart 1 – Eligible Purchases with a Matching Purchase Order

76.60%

83.50%

0.00%

92.22%90.18%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Jan-15 Feb-15 Mar-15 Apr-15 May-15

% Payments Checked

% Compliance

Linear (% Compliance)


Budget Improvement Strategy (Zero Based Budgeting, Cost Recovery, Budget Knowledge) Change Champion: Director, Corporate and Community Services Project Coordinator: Manager Financial Services

IN PROGRESS

• Approved budget for 2013/14

developed using zero based budgeting for around 40% of account lines / budget areas.

• The approved budget for 2014/15 completed zero based budgeting for 40% of residual cost centres not completed last year.

• The draft budget 2015/16 completed many of the remaining areas for the zero based budgeting.

• Budget managers reviewed business plans and updated information as required to reflect zero based cost centre activities. A major review was undertaken for the March quarter.

• In September 2014 Council adopted a Disposal of Land or Other Assets Policy and Budget and Business Plan and Review Policy providing detailed principle based guidance to staff in meeting legislative requirements for the Strategic Management Plan, the Annual Business Plan, Council’s Budget and the Long Term Financial Plan.

Contracting/Procurement Strategy Change Champion: Chief Executive Officer Project Coordinator: Manager Strategic Projects

IN PROGRESS

The Barossa Council – Internal Procurement Project • Revised Council Procurement Policy

was approved by Council in June 2014.

• Procurement Planning, Sourcing and Selection Process; Purchasing Process; and Contract and Contractor Management Process approved by CMT in January 2015.

• Tender, Contract and Contractor Registers implemented in SharePoint – currently 72 Suppliers and 49 Contracts entered in the system.

• The above registers are supported by automatic workflows to alert Contract Superintendents when Contractors mandatory documentation such as licences, insurance and induction checklists are due for renewal or contracts are

approaching their expiry. • It is anticipated that the use of the

electronic contract and contractor management systems will reduce duplication of effort in pre-qualifying and inducting suppliers and increase the sharing of information regarding the performance of our suppliers.

• Sharepoint information site launched for procurement in February 2015 as a central one-stop-shop for all information, policies, processes, advice, templates and registers associated with procurement to be presented in a user friendly, intuitive format.

• Mandatory Procurement Framework Awareness Training delivered to all staff in February 2015 – 8 sessions delivered across multiple locations.

• Procurement Framework Awareness introduced as a mandatory requirement within all staff inductions.

The Barossa Regional Procurement Group Initiative • MOU between The Barossa Council,

Light Regional Council, Mid Murray Council, The Town of Gawler and District Council of Mallala signed in September 2014.

• Barossa Regional Procurement Group Project Plan and Resource Sharing Proposal approved by all 5 Councils in December 2014.

• Joint Stationery contract implemented with all 5 Councils in December 2014 – savings estimated for Barossa Council at 18% or $2,899 p.a.

• Resource Sharing Agreement Signed between all 5 Councils in January 2015.

• Regional Procurement Project Officer recruited and commenced in March 2015.

• Standard suite of regional documents (including request for tender, contracts, tender evaluation and tender planning, CEO reporting framework) developed.

• Regional Forward Procurement Plan developed in March 2015.

• Regional Procurement email address

and preliminary branding established. • First joint Request for Tender for

Building Maintenance Services released on 1 April 2015 and closed on 15 May 2015 – was advertised throughout regional papers, on Council websites and via direct mail out to existing suppliers across the Councils. 46 Tenders were received and are currently being evaluated for development of a panel of suppliers.

• Audit Services Tender released via SA Tenders on 19 May 2015 and scheduled to close on 3 June 2015

• Road Reseal and Line Marking Tenders to be released via SA Tenders by 5 June 2015.

FOCUS AREA 3 – RISK MANAGEMENT AND WORK HEALTH SAFETY Objectives • Develop a best practice Risk Management System / Framework. • Achieve and maintain a compliant work health safety and injury management system. Performance Results Measure Target Result Comment Percentage return of WorkCover and MLS scheme rebates.

LGA WCS rebates are maintained at 2012/13 base level. LGA MLS rebates are maintained at 2012/13 base level.

37.95% Rebate

Indication

Not provided at this time

Rebate to apply to next gross Contribution figure Half of available rebate paid on claims cost result half paid on KPI action plan completion This rebate is still to be finalised with early indications of a 92 % score from the Risk Profile Review and the actual number of MLS claims at 6, being the lowest number since 2010.

Percentage return of the KPI audit rebates.

LGA KPI rebates are maintained at 2012/13 base level.

100% This year’s Workers Compensation scheme rebate reflects the excellent 2014 WorkCover Review outcomes and the complete closeout of the eight observations provided as the KPI Action Plan for the year.


Risk Management Strategy Change Champion: Chief Executive Officer Project Coordinator: Manager Risk

IN PROGRESS

• A Risk Appetite Statement has been

developed as a draft document to be discussed at the June 3rd Council Workshop.

• A positive outcome from the 2014 WorkCover Evaluation with no non-conformances recorded against The Barossa Council has meant that we received the maximum rebate % for the KPI review (100%)

• Council’s Risk Register has been further aligned with the “Control Track” terminology to assist with integration of the Finance and Corporate Risk Categories.

• The inside Barossa Risk project being

run by Loftus is progressing slowly with the Risk Register, Incident Register Hazard register and CAPA Register now migrated to new Inside Barossa site. Testing of workflows have started, automated Risk Matrix calculators have been developed and the Nintex Forms have been switched on to allow the development of electronic Incident reporting.

• Meetings have been held with ControlTrack Pty Ltd to progress the implementation of an individual control library for the Council which will add testing procedures and guidance to control activities and set up additional sets of risks and controls to further enhance operational risk management. These meetings have resulted in progress with Councils Risk Library with the agreed modified IT platform not being provided by Control Track in April as agreed.

• Business Continuity Plan (BCP) Impact Assessments have been returned by Teams and the new information included into the BCP Review. The Business Continuity Working Party members list has been updated but not progressed to a meeting of the group.

FOCUS AREA 4 – BUILDING ORGANISATIONAL & COMMUNITY CAPACITY & EFFICIENCY Objectives • Provide identified volunteers with a set of guiding documents and tools that are consistent across

all areas of Council, leading to sustainable volunteer programs and linking volunteer management with other core functions of Council.

• Define realistic and achievable levels of service/response timeframes for responding to customer requests.

• Review existing customer request management processes and develop process improvements to address identified gaps.

• Build a better understanding of The Barossa Council and its value to the community. Performance Results Measure Target Result Comment Annual reduction in % of overdue customer requests.

50%

9%

As at 16 June 2015, there has been a 9% reduction in overdue customer requests (that is the total number of new requests for the financial year which were overdue compared to 2014/15). During 2013/14 52% of all new requests were not completed by the nominated due date. For 2014/15, the rate of overdue requests is currently 43%. It should be noted that the above results may be skewed by the non-close out of customer requests in Council’s Electronic Customer Request Management System even though they have been completed outside of the electronic system.

Chart 2 - Requests Completed on Time vs Overdue, By Date Received


ICT Strategy & Program Development Change Champion: Director, Corporate & Community Services Project Coordinator: Manager Knowledge & Technology Services

PHASE 1 – COMPLETE PHASE 2 – ICT STRATEGIC PLAN IMPLEMENTATION – IN PROGRESS

Original ICT ‘Top 7’ priority projects are complete including: • Electronic Document Records

Management System (TRIM) upgrade • Server Refresh • ‘Website Refresh’ project • ‘Depot Connectivity’ and ‘Depot

Remote Access’ • Nuriootpa Administration Centre PC

and Remote Site PC Refresh Pathway (Property and Rating System) Corporate Administration

• Intranet – Inside.Barossa Phase 1 Additional ICT Projects implemented during 2014/15: • Council-wide Copier Refresh –

delivering 66% savings on copy costs over 4 years and anticipated administrative efficiencies associated with the use of a standard fleet of devices, swipe printing, enforced economy print settings and automated ordering of consumables.

• Large Format Scanner Solution – replacing obsolete mapping plotter and introducing greater capability for electronic capture of wide format documentation associated with development assessments, corporate communication and engineering.

ICT Steering Committee: • Significant amount of work has taken

place to create a draft ‘ICT Strategic Plan’ and provide the next generation of service and process improvements. A collaborative approach has been taken to ensure that ICT requirements across Council have been considered and prioritised. Draft ICT strategy document will be forwarded to Council for approval in July 2015.

ICT Strategic Plan Implementation –

2015/16 Projects • Key projects will commence in

accordance with ICT Strategic Plan in July 2015, progress of which will be reported quarterly.

Customer Relationship Management Strategy Change Champion: Chief Executive Officer

IN PROGRESS

Outstanding technical issues now part of Pathway Administration project. Business as usual issues being addressed by ICT. Next Focus Points: • Booking module implemented for

Tanunda CWA Hall bookings as managed by Barossa Visitor Centre

• Implementation for Risk Management Solution

• Requirements for register management agreed and ready to be implemented

• Continuation of request categorisation, prioritisation and service levels.

Customer Service Strategy Change Champion: Director Corporate and Community Services Project Coordinator: Manager Administration Services

IN PROGRESS

• Strategic project tasks identified • Strategic vision of organisational

customer service principles to be approved by CMT and OMG

• OMG Working group to be established

• Links to organisational culture and effectiveness to be agreed

• Customer Service team framework drafted

FOCUS AREA 5 – SUSTAINABILITY Objectives • A Business Case for Future Investment at the Nuriootpa Centennial Park for 2013/14 to 2016/17,

including proposed capital investment and asset management plan, governance model and financial modelling is approved and implemented.

• A new model for the sustainable delivery of Council services historically facilitated by Section 41 Community Committees is developed and implemented.

• Future capital and maintenance expenditure costs are determined for predetermined levels of service.

• Assets that may be divested from Council under sale, lease or other mechanisms are identified. • The correlation between depreciation expenses, service levels and capital and maintenance

expenditure costs for the future is identified and used to inform recommendations for change. • A reduction in depreciation based on a more accurate reflection of the consumption of Council

assets. Performance Results Measure Target Result Comment Growth in NCPA cabin occupancy rates.

(Total occupancy rate across all cabin types)

60% by June 2016

35%

Occupancy rates are moderate for Cabernet Suites (49%), Ensuite Cabins (43%), Jayco Cabins (56%), Park View Deluxe (38%) and Family Ensuite Cabins (43%). Occupancy rates for all other cabin types are well below the target of 60% occupancy.

Increase in average useful life of each of Council’s asset types

5% (2014/15

compared to 2013/14)

Pending Useful lives have traditionally been provided by (or in the very least) confirmed by an independent body, generally a consultant. This is the approach that we have continued in the 2014 / 2015 Financial Year. It has been indicated by the CEO that the amount of depreciation that is being funded by Council does not reflect the annual expenditure spent to maintain the assets. This is either a service level issue or an understatement of useful lives of Council’s assets. As such, a deviation from the normal process of independent verification of unit rate by a consultant is scheduled to occur. A meeting has been scheduled for 18 May 2015 with the CEO and key stakeholders to review the existing useful lives and to radicalise the result to more accurately reflect the maintenance expenditure against the depreciation expense.

Performance Outputs and Outcomes

Project Status Description

NCPA Business Case For Future Investment Change Champion: Chief Executive Officer

Phase 1 – COMPLETE Phase 2 – IN PROGRESS

PHASE 1 • At its Council Meeting on 24 June

2014, Council resolved to approve the proposed capital expenditure set out in the NCPA Asset Management Plan; Approved funding Option 2 (New Loan and Additional Capital Expenditure Forecast Beyond 2017/18 and Option 5 – Absorption of NCPA’s Net Deficit Within Council’s Overall Operations); Approved the ongoing retention of Council ownership of the Barossa Valley Tourist Park; and Approved governance Option 1 (with the NCPA remaining a wholly owned subsidiary under s42 of the Local Government Act and continuing to manage and maintain the entire Nuriootpa Centennial Park precinct) subject to the conditions set out in the Business Case.

• Council’s approval of the proposed Capital Expenditure over the next 5 years is subject to annual review and approval as part of the ongoing business/budget review process.

PHASE 2 • Building rules assessment is pending

for Stage 1 Infrastructure development.

• Tenders have closed for Stage 1 works.

• A loan facility has been approved by Council and lodged with the Local Government Finance Authority to fund a portion of the works (as per the original business case approved by Council).

• Martin McCarthy (Council’s NCPA Board Representative) is currently updating the financial projections model with current financial data and tender pricing with a view to putting a revised position to the July 2015 Council Meeting.

Redefining Community

STAGE 1 – COMPLETE

STAGE 1 COMPLETE - Business Case for

Committees Change Champions: Mayor and Chief Executive Officer Stage 2 Project Coordinator: Manager Administration Services

STAGE 2 – IN PROGRESS

Change Approved

A Final Business Case and Implementation Plan were presented to Council at its August 2014 meeting at which time Council resolved to formally adopt the Business Case for Change; approve the recommendations encompassed within the Business Case for Change, specifically adoption of new models for Town Committees, Asset Management and S41 Peak Advisory Committees; and adopt the implementation plan and approve recommendations encompassed within the plan. STAGE 2 – IN PROGRESS - Implementation of New Models • Working Party established • Suite of tools and templates provided

to most committees according to the approved schedule

• Angaston Management Group received approval for transition

• Strategic discussions in progress for Lyndoch, Williamstown and Mt Pleasant townships, Tanunda and Angas Recreation Parks

• Angaston Hall and Old Union Chapel next groups to seek approval for transition

Asset Management Project Change Champion: Director, Works & Engineering Services Project Coordinator: Manager Assets & Infrastructure

IN PROGRESS

• The project is focussed on achieving

core level of compliance with Asset Management Maturity standards as a minimum and driving improvement towards more advanced Asset Management.

• Asset Management Strategy final draft is sitting with CMT for signoff prior to presentation to Council for endorsement.

• Building condition assessments commenced in November 2013 to estimate current value, determine costs for ongoing maintenance and identify future capital work requirements – final report received August 2014.

• Revised Project Plan has been presented to CMT.

FOCUS AREA 6 – CORPORATE PLANNING Objectives • A cascading planning framework is embedded across the organisation. • A systems based approach consistent with the Business Excellence Framework is applied during

the development and alignment of Council’s Strategic Plan, Corporate Plan and Holistic Reporting Framework.

Performance Results Measure Target Result Comment % of staff who agree that they have a clear line of sight between what they do and Council’s strategic goals and objectives

75%

Data to be established

upon implementation

of reporting framework

Measure still under construction.

Average OMG rating of the usefulness of the Corporate Business Plan in translating Strategic Plan goals and objectives to real actions

Average ‘Useful’ Rating

Data to be established

upon implementation

of Corporate Plan

Measure still under construction

% of staff who feel that their work is reflected in their directorate plan

75% Data to be established

upon implementation of Directorate

Plans

Measure still under construction


Corporatising the Strategic Plan Change Champion: Chief Executive Officer Project Coordinator: Manager Strategic Projects

IN PROGRESS

• Draft Corporate Plan developed for

broader staff consultation – plan will be distributed for all staff feedback in June 2015.

FOCUS AREA 7 – ORGANISATIONAL IMPROVEMENT (BUSINESS EXCELLENCE) Objectives • Review and update Council Plans in accordance with Council’s policy framework and governance

standards. • Decision making is driven at all levels of the organisation by sound information and knowledge

management systems. • A culture of continuous improvement is embedded across the organisation, with tools, processes

and systems being used to achieve sustainable business improvements Performance Results Measure Target Result Comment Rate of compliance with Records Management Act requirements (as indicated by State Records Act Self-Assessment Audit)

100%

Pending

Results are due in June 2015. Results will be reviewed and disseminated to communicate the organisation’s actual level of operational compliance.

% of Council’s data storage capacity utilised

< 75% - Measure under construction *Note – measure to be reviewed as part of Knowledge Management Project

% of staff who agree that they have access to the right information to do their job in accordance with legislative and council policy requirements

75% Data to be collected upon

implementation of knowledge management

project deliverables

Measure under construction

Average confidence rating of staff in Council’s information and knowledge management systems

4 - Confident Data to be collected upon




% of staff who agree that they feel that they have the skills, tools and support to identify and implement better ways of doing things





Performance Outputs and Outcomes

Project Status Description

Knowledge Management Strategy Change Champion: Director Corporate and Community Project Coordinator: Manager Knowledge & Technology Services

IN PROGRESS

Development of a Knowledge Management Framework has commenced with a TRIM User Group review of Council’s Records Management Policy and Process. In addition, the focus to date has been on addressing operational actions arising from recommendations for immediate remediation of non-compliance identified by Wendy Fewsdale of InfoOsmosis in a report commissioned by Council in June 2014. Operational improvements include: • Implementation of Barcode Scanning

for tracking and auditing hardcopy records.

• TRIM refresher training delivered across the organisation during January 2015.

• Organisation-wide deployment of a standard Global Toolbar and Customisation of the List and View Pane Fields for all record types within TRIM.

• Audit and reorganisation of the space in the Archives to commence the remediation of legacy issues associated with the retention and storage of Council records.

• Transition to electronic management of Knowledge Services/Records requests for Service – via helpdesk request system.

• Introduction of KPIs for core records management functions including mail sorting, help desk requests and document scanning and registration.

• The import of the Classification Scope Notes to assist staff in identifying the correct location for records.

• The import of the current version of the General Disposal Schedule 20 Version 5 to allow the disposal program to commence and also management of the permanent records compliantly.

• Entry of identified risks under the State Records Act in respect to legacy records, hardcopy files, historical books, archive infrastructure,

unappraised records into Council’s Risk Register.

• Review and update of the Knowledge Services Business Continuity Plan and emergency repose procedures.

• Development of a records foundation/knowledge base to guide records management in accordance with best practice principles.

• Seeking of advice in respect to record retention for records stored in our corporate applications.

• Continually updating the metadata within the EDRMS (TRIM) to manage the electronic records under the Act.

FOCUS AREA 8 – PERFORMANCE MEASUREMENT & REPORTING Objectives • The organisation’s performance is measured, monitored and sustained based on the collection,

analysis and presentation of data on key measures relating to not only outputs, but also processes, systems and outcomes.

Performance Results Measure Target Result Comment Average OMG satisfaction rating for the quality of reporting on outputs.

4 (satisfied) or higher

Data to be collected upon

implementation of holistic reporting

framework

Measure Under Construction

Average OMG satisfaction rating for the quality of reporting on processes, systems and outcomes.

4 (satisfied) or higher

Data to be collected upon


framework


% of staff who agree that they have the right information to tell them they are doing their job well.



framework



Holistic Reporting Framework Change Champion: Chief Executive Officer Project Coordinator: Manager Strategic Projects

IN PROGRESS

• The project will apply a systems

based approach consistent with the Business Excellence Framework during the development and alignment of Council’s Strategic Plan, Corporate Plan and Holistic Reporting Framework.

• ICT Committee has included this project in Council ICT Strategic Plan to ensure that data collection improvements, reporting tools, software upgrades etc are cognisant of reporting framework impacts and requirements.

• Corporate Management Team has arrived at an overall KPI reporting framework - further work will be completed by Organisational Management Group to refine reporting requirements.

• Preliminary work has been undertaken to develop two streams of reporting – activity reporting (output based information statistics which inform the deployment of resources showing movement and trends over time) and performance reporting (outcome based performance measurement showing progress towards a goal or target to inform Council’s strategy – ie results oriented and target based).

• A preliminary set of measures have been embedded in the Strategic Projects Framework, Draft ICT Strategic Plan and the Draft Corporate Plan to form the basis of Council’s Performance Reporting Framework.

AUDIT COMMITTEE


24 JUNE 2015 6.1.4 NURIOOTPA CENTENNIAL PARK AUTHORITY AUDIT COMMITTEE

UPDATE

The Nuriootpa Centennial Park Authority (NCPA) Audit Committee held a meeting of the new Committee, following the appointment of the following members by Council at its meeting on 19 May 2015 for a period not exceeding two years from 11 May 2015: Mr Dafydd Llewelyn - Independent Chair Mr Jonathon Gerhardy – Independent Member Mr Guy Martin – Chair NCPA Board Cr Leonie Boothby – NCPA Board Mrs Joanne Thomas – Director, Corporate and Community Services (non-voting member)

The NCPA Audit Committee will meet quarterly. The Terms of Reference for the NCPA Audit Committee have been reviewed and work action plans are developed. RECOMMENDATION: That report 6.1.4 be noted. 6.1.5 ICT STEERING COMMITTEE UPDATE

The ICT Steering Committee has continued to meet on a regular basis to work on finalising the Draft ICT Strategic Plan. The Plan is close to being finalised and will be presented to the Corporate Management Team (CMT) on 1 July and then to Organisational Management Group (OMG) for feedback and refinement. Once the draft is finalised through this process, it will be presented to Council for consideration and adoption. RECOMMENDATION: That report 6.1.5 be noted. 6.1.6 ASSET REVALUATION AND CONDITION ASSESSMENT PROGRAM

FOR 2014-15 AND THE NEXT TWO YEARS

A report on the Asset Revaluation and Condition Assessment program for 2014-15 and the next two years has been presented to the Corporate Management Team (CMT) and is attached for information.

RECOMMENDATION: That report 6.1.6 be noted.

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DATE: 9 June 2015 TO: CMT FROM: Mark Lague

Manager Financial Services SUBJECT: Asset Revaluation and Condition Assessment

program for 2014-15 & the next two years

RESPONSE: Nil CC: Audit Committee, Asset Management Working Group, Vicky

Rohrlach, Neil Tait, Michael Clark, Elizabeth Waters, Nicole Rudd

TRIM: B342

Introduction In order to consider our asset valuation and condition assessment for 2014-15 a meeting and dialogue was initiated in September 2014 with Council staff Mark Lague, Brendon Lyons and Elizabeth Waters to substantiate our position on this process for this financial year and for an update with Council’s auditor. This process is to meet for accounting and engineering requirements but wherever practical and possible should be scheduled to align with other work that can be progressed at the same time. It is noted that for selected assets the Barossa Council is reviewing its leases with Community groups and clubs. Responsibility for the building and recreation asset maintenance is in a transitional phase with an officer now appointed by Council to coordinate this work between relevant Council departments and the community volunteer aspect for the section 41 committees. Models for the future management of assets traditionally “managed” via section 41 committees are being evaluated and transition plans developed through Redefining Community Committees, Strategic Project implementation. This document is to substantiate our final decision for asset revaluations and condition assessments for the current year. It includes a review of indexation and its application to our asset classes and complies with Council’s Asset Accounting Policy. Refer to Council’s Asset Class Management Program (as per separate spreadsheet) for a full explanation of the forward strategy.

REPORT

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Accounting Standards Accounting standards require a five yearly revaluation of assets - best practice for some asset classes is a maximum of three to four years. Annual reviews are needed though, particularly where assets experience significant and volatile changes in fair value. In line with AASB 116.31 the notes in the Model Financial Statements state: “Revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the reporting period”. AASB13 provides a definition of Fair Value and a requirement to allocate Level 1, 2 or 3 for each asset depending on the application of the relevant valuation methodology. Indexation As an indexation source there is the Consumer Price Index (CPI) and the Local Government Price Index (LGPI) along with other market indicators for other asset types e.g. for land assets the Valuer General provides annual updates for valuations for site and capital values within the district. Movements in site value can be used as an indicator for Council land assets. It is best practice in Local Government (LG) in SA to use the LGPI as a general index for Council service and capital cost. The LGPI uses data from various sources to assess the cost changes for the local government industry and provide indices. This independent industry standard, has been used as a valuation base default tool for this annual assessment. However local market valuations also are a factor in certain aspects including property values. Other factors to consider are the capital cost movements of construction for Buildings and Infrastructure types of assets. Currently periodic unit rate reviews are undertaken for each asset class, consideration for future annual revaluations to utilise the LGPI - Capital cost movement for selected asset classes such as Buildings, Transport, Bridges, Stormwater, CWMS and Recreation with periodic independent revaluations. As part of Councils assets rolling review program previous valuation dates vary from 1 July 2010, 1 July 2012 and 1 July 2013. For consideration in 2014-15; if the replacement cost of each asset class has changed materially since those assets were last valued (1 July 2010 or 1 July 2012) do they need to revaluation? The LGPI - Capital cost movement in the 48 months up to 1 July 2014 is 9.8% (June 2011 at 2.1%, June 2012 at 2.8%, June 2013 at 2.5% and June 2014 at 2.4%). The most recent index in the 12 months up to December 2014 was at 2.3% (March 2015 was at 1.7%).

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Statement of Comprehensive Income Depreciable assets are valued as at 1 July ie.at the beginning of the financial year. As shown above the movement in the LGPI from 1 July 2010 to 1 July 2014 was an aggregate of 9.8% and from 1 July 2012 to 1 July 2014 was an aggregate of 4.9%. Consideration of the movement in cost for each asset class is from 9.8% to 4.9%, along with the effect of this index on depreciation for each asset type. Each asset type or group within the asset class are assessed for their individual cost increases as different asset types have other factors effecting cost changes, including long term contracts for sealing, kerbing, rubble supply, (where contract clauses state: no cost change), annual review, CPI and employment cost (EBA's). In order to assist in the importance and timeliness of each asset class review, the depreciation expense as for the year ended 30 June 2014 and percentage value of the total depreciation expense is shown below:

Asset Class Dep'n

Amount $’000

Dep'n % of total

Valuation date

LGPI Factor

%

LGPI Factor $’000

Dep'n movement portion* %

Land N/A N/A 1-Jul-13 N/A N/A N/A Buildings & Other Structures 1,312 20.1% 1-Jul-13 2.4% 31 0.48%

Transport 2,522 38.6% 1-Jul-12 4.9% 124 1.89% Bridges, Floodways and Major Culverts

366 5.6% 1-Jul-12 4.9% 18 0.27%

Community Wastewater Management Systems (CWMS)

605 9.3% 1-Jul-10 9.8% 59 0.91%

Stormwater & Drainage 283 4.3% 1-Jul-10 9.8% 28 0.42%

Recreation 207 3.2% 1-Jul-10 9.8% 20 0.31% Other Infrastructure 22 0.3% 1-Jul-10 N/A - 0.00%

Plant & Equipment 1,163 17.8% N/A N/A - 0.00% Furniture & Fittings 54 0.8% N/A N/A - 0.00% Total 6,534 100% 280 4.29%

*Calculation based on the total Depreciation amount divided by the individual asset class LGPI Factor $. This is done to check any potential materiality issues when using LGPI as an indicator to estimate the depreciation effect. From the table above it can be seen that the asset classes that have the greatest depreciation impact on the Statement of Comprehensive Income are Building and Transport. If the relevant indexation LGPI* since last valuation is

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applied to each asset class from this assessment the main focus would be on assessing the Transport valuation (see further reviews under each heading in this report). The LGPI % change is an indicative indicator only but where the change is showing a considerable movement the asset class will be reviewed for unit rates and check the asset class valuation movement. Balance Sheet Each Asset class as listed in the Balance Sheet is assessed individually for revaluation and condition assessments. Revaluing and checking condition assessments at regular intervals relevant to each asset class will ensure (to the best of our knowledge) current costs are recorded and will improve the validity of the information. An annual review using the LGPI as a revaluation factor will be undertaken to check for build/purchase costs as compared to Council’s valuation and applied as/if appropriate. In order to assist in the importance and timeliness of each asset class review the carrying amount as at 30/6/2014 and percentage value of the total asset value is shown below: Asset Class Carrying Amount

$’000 Asset % of total

Land 56,529 19.83% Buildings & Other Structures 41,704 14.63% Transport 113,865 39.95% Bridges, Floodways and Major Culverts 19,359 6.79%

Community Wastewater Management Systems (CWMS) 22,283 7.82%

Stormwater & Drainage 20,006 7.02% Recreation 5,303 1.86% Other Infrastructure** 973 0.34% Plant & Equipment** 4,794 1.68% Furniture & Fittings** 220 0.08% Total 285,036 100.00% **These asset classes are not included with this valuation and condition assessment process.

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Proposed asset revaluation and condition assessment program Land Class - Last Valuation 1/7/2013 Land has not been included in the program for review in 14-15. As per normal process Land contributed by developers has been brought into the accounts at the date of the handover and recorded in that year Financial Statements. Land and land improvements are shown at fair value hierarchy level 3 and level 2 as appropriate based on the valuation inputs and methodology. Land assets valuations were valued at 1 July 2013 by Opteon (Valuer engaged by Opus International Consultants (Australia) Pty Ltd). Additions are recognised at fair value. Revaluation In-house investigation of the fair value every year and if indicators, including but not limited to those provided by the State Valuation Office for Council land for the current rating year, show material change then a revaluation will be made for all land assets. Every 3 years a full assessment is made to check if there needs to be a revaluation. In any event in the fifth year a full revaluation will be conducted. Condition Assessment Not applicable. Community Land A review of the Community Land Register will be undertaken in 2015-16 particularly in relation to any land assets where Community Land status has been revoked. This will also include consideration of Community Land Asset information being transferred to and maintained in Conquest. 3 Year Program 2014-15 – In-house investigation of the fair value, if indicators show material change then an independent sample of 10% is applied to all assets**. 2015-16 – **Repeat process; and/or review the use and application of independent valuations provided by the State Valuation Office for Council land. 2016-17 –**Repeat process; if indicators show material change then an independent sample of 10% is applied to all assets. Building Class - Last Valuation 01/07/2013 An extensive building review and componentisation was initially conducted in 2010-11 then further enhancements was undertaken in 2013-14. A periodic review of this class of assets will include (over the short to medium term) the asset useful lives (particularly for the building sub-structure) in accordance with:

• Australian Accounting Standards, • IPWEA Australian Infrastructure Financial Management Guidelines, • National Asset Management Framework guidelines, • IPWEA International Infrastructure Management manual, • building longevity, • local conditions and, • best practice.

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In conjunction with relevant third parties and Council at workshops, an ongoing review of the assets contained within the building asset class is being undertaken to assess the function, usefulness and ownership. A working group is reviewing the mechanism regarding leased properties and this is progressing. With the introduction of AASB13 Councils assets have been reviewed for application of a “Market Valuation”. Most of Council’s building assets are currently valued at “Depreciated Replacement Cost” with three properties being assigned for a “Market Valuation” by Council’s contracted valuation consultant. As noted in the table above the depreciation assessment at 20.1% Building assets represents a considerable percentage of the total depreciation. Applying the LGPI index of 2.4% to the depreciation amount of $1,312k equates to an increase of $31k. The increase of $31k added to the existing depreciation of $6,534k equates to an increase of 0.48%. This amount would not likely be considered material on Council’s Financial Statements. Revaluation and Condition Assessment As building valuation is best to be kept relatively up to date, a full revaluation and condition assessment at each component level was completed for this asset class in 2013-14. In 2014-15 a selected sample of buildings and their component costs have been compared to Rawlinsons Australian Construction Handbook edition 33 for current construction costs. This has shown that there has been no material change in costs since the revaluation undertaken in 2013-14. Revaluation Every year if indicators (LGPI Capital Index) show a material change then a 10% sample will be selected and compared to the Rawlinsons Construction Manual for the current construction costs. Where there is a material difference apply the LGPI capital index to all building assets. Notwithstanding if considered appropriate an annual revaluation index using the LGPI Capital index may be applied to this asset class. Every 3 years a full assessment for the need of a revaluation is undertaken. In any event in the fifth year a full revaluation will be conducted. Condition Assessment Separate components may have independent condition assessments conducted. In the fifth year a full condition assessment will be conducted. 3 Year Program 2014-15 – Every year if indicators (LGPI Capital Index) show a material change then a 10% sample will be selected and compared to the Rawlinsons Construction Manual for the current construction costs. Where there is a material difference apply the LGPI capital index to all building assets. Notwithstanding if considered appropriate an annual revaluation index using the LGPI Capital index may be applied to this asset class. Review depreciation for Market Value assets**. 2015-16 – **Repeat process.

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2016-17 – Component level condition assessment; Full assessment for the need of a full revaluation to be undertaken. Transport Class - Last Valuation 01/07/2012 There are various asset types held within this asset class. Road asset types represent a major portion of this asset class. Other transport asset include: kerbing, footpaths and car-parks, each of these asset types have distinct condition assessment processes (refer to separate spreadsheet). As the transport assets are a major portion of the asset values along with depreciation and have many factors internal and external affecting the build cost it is imperative regular checks are made for the current valuation. As noted in the table above the depreciation assessment at 38.6% Transport assets represents a good portion of the total depreciation. If we applied the LGPI index of 4.9% in the depreciation amount of $2,522k this equates to an increase of $124k. The increase of $124k added to the existing depreciation of $6,534k equates to an increase of 1.90%. This amount is likely to be considered immaterial but a significant amount on Council’s Financial Statements. Annual sealed and unsealed road asset programs are validated internally to confirm the budget allocation. A check of local build costs using an independent revaluation process for unit rates and useful lives is being undertaken in 2014-15 for this asset class. Due to the service requirements, risk management exposure, high visibility and overall cost of transport assets, regular reviews of asset condition and build cost is imperative. An in-house review of the useful lives of this asset class has occurred resulting in an increase in the lives of some assets, decreases in others and no change in the remainder. Revaluation If indicators (LGPI Capital Index) show a material change then a 10% sample will be selected and compared to the current construction costs. Where there is a material difference, apply the LGPI capital index to all transport assets. Notwithstanding if considered appropriate an annual revaluation index using the LGPI Capital index may be applied to this asset class. Periodically an independent consultant will be engaged to provide unit rates for all asset types within this class in order to carry out the revaluation. In-house expertise will be used to carry out due diligence on these rates in comparison to real costs and contractor rates. Condition Assessment Unless already undertaken with annual reviews in the fifth year a full Condition Assessment will be conducted.

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3 Year Program 2014-15 – An independent consultant has been engaged to provide unit rates for all asset types within this class in order to carry out the revaluation. An in-house condition assessment of Footpaths and Unsealed Roads will be carried out. 2015-16 – Apply LGPI Capital index to entire class of asset. 2016-17– If indicators (LGPI Capital Index) show a material change then a 10% sample will be selected and compared to the current construction costs. Where there is a material difference, apply the LGPI capital index to all transport assets. Bridges, Floodways and Major Culverts - Last Valuation 01/07/2012 An in-house Condition Assessment and revaluation was undertaken in the 2012-13 year using independent assistance as/when required. A check of local build costs against an independent revaluation for unit rates and useful lives was undertaken in 2012-13 for this asset class. Revaluation Every year if indicators (LGPI Capital Index) show a material change an independent unit rate is applied to all assets. Notwithstanding if considered appropriate an annual revaluation index using the LGPI Capital index may be applied to this asset class. Every 5 years a full revaluation is undertaken. Condition Assessment Periodic in-house and/or engineering consultant to be engaged to undertake a condition assessment, at least in the fifth year a full Condition Assessment will be conducted. 3 Year Program 2014-15 – No asset assessments undertaken. 2015-16 – Apply LGPI Capital index to entire class of asset. 2016-17 – In-house investigation of the fair value as compared to the current construction costs, where this shows a material change then a revaluation is applied to all assets. CWMS Class - Last Valuation 01/07/2010 This asset class contains CWMS lagoons, pipe systems, pump stations and Wastewater treatment plants (WWTPs’). A selection of these asset types have been condition assessed as an ongoing process, including the use of cameras for pipe system inspection. As noted in the table above the depreciation assessment at 9.3% for CWMS assets represents a small portion of the total depreciation. Applying the LGPI index of 9.8% to the depreciation amount of $605k equates to an increase of $59k. The increase of $59k added to the existing depreciation of $6,534k equates to an increase of 0.90%. This amount would not likely be considered material on Council’s Financial Statements.

Page | 9

Lagoons, Waste Water Treatment Plants and Pump Station assets are all currently valued as specific items and not as unit rates. A complete unit rate review and revaluation is scheduled to occur in the 2014-15 financial year. Revaluation Every year if indicators (LGPI Capital Index) show a material change an independent unit rate is applied to all assets. Notwithstanding if considered appropriate an annual revaluation index using the LGPI Capital index may be applied to this asset class. Every 5 years a full revaluation is undertaken. Condition Assessment Rolling condition assessment to be undertaken in-house and independent overview as needed. In any event in the fifth year every asset type a sample condition assessment will be conducted. 3 Year Program 2014-15 – An independent consultant has been engaged to provide unit rates for pipes. All other asset types within this class will be valued using in-house expertise applying market cost in order to carry out the revaluation. An internal assessment of CWMS assets has been carried out to enable componentisation of assets for revaluation using unit rate. Ongoing in-house rolling condition assessment on pipe systems. On-going validation of the existing network together with the addition of assets and removal of redundant network assets all to be reflected in GIS/Conquest. 2015-16 – Ongoing in-house rolling condition assessment on pipe systems and pump station. Apply LGPI Capital index to entire class of asset. 2016-17 – Ongoing independent condition assessment on pipes, lagoons and WWTP’s. If indicators (LGPI Capital Index) show a material change then a 10% sample will be selected and compared to the current construction costs. Where there is a material difference, apply the LGPI capital index to all CWMS assets. Stormwater & Drainage Class - Last Valuation 01/07/2010 This asset class contains cross drains (under roads), drainage channel and stormwater drains. A review of the useful lives for concrete and PVC pipe as used in cross drains, will be part of an ongoing in-house assessment. The regular independent condition assessment based on sample township stormwater drains, will continue in 2015-16. As noted in the table above the depreciation assessment at 4.3% for Stormwater & Drainage assets represents a very small portion of the total depreciation. Applying the LGPI index of 9.8% to the depreciation amount of $283k equates to an increase of $28k. The increase of $28k added to the existing depreciation of $6,534k equates to an increase of 0.43%. This amount would not likely be considered material on Council’s Financial Statements. A complete independent unit rate review and revaluation has been undertaken in the 2014-15 financial year together with an in-house review of the useful

Page | 10

lives of this asset class. This review of useful lives has resulted in an increase in lives of the assets in this class. Revaluation Every year if indicators (LGPI Capital Index) show a material change an independent unit rate is applied to all assets. Notwithstanding if considered appropriate an annual revaluation index using the LGPI Capital index may be applied to this asset class. Every 5 years a full revaluation is undertaken. Condition Assessment Rolling condition assessment to be undertaken in-house and independent overview as needed. In the fifth year every asset type a sample condition assessment will be conducted. 3 Year Program 2014-15 – An independent consultant has been engaged to provide unit rates for all asset types within this class in order to carry out the revaluation. In-house review of the useful lives of assets within this class. 2015-16 – Rolling condition assessment in-house based on sample of cross drains (under roads) and drainage channel**. Apply LGPI Capital index to entire class of asset. 2016-17 – **Repeat process. If indicators (LGPI Capital Index) show a material change then a 10% sample will be selected and compared to the current construction costs. Where there is a material difference, apply the LGPI capital index to all stormwater & drainage assets. Recreation Class - Last Valuation 01/07/2010 This asset class contains infrastructure. It includes asset types held at Council’s recreation parks, parks & gardens and reserves. The infrastructure assets have previously been assessed in conjunction with Council’s other infrastructure assets ie. roads, drains, etc. Note introduction comments: “Responsibilities for the building and recreation asset maintenance is in a transitional phase with some movement between departments and the community volunteer aspect for the section 41 committees”. Revaluation of assets in the class above materiality threshold using an independent source for the construction costs eg. Rawlinsons Construction Manual and unit rates obtained during the revaluation of Transport assets class. A materiality revaluation threshold is being assessed and will be applied to this asset class, where selected assets under the threshold will not be revalued and will continue to be held at cost. Assets identified during the 2014-15 revaluation process of this class that have been previously misclassified will be transferred from the Recreation asset class to the relevant asset class.

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Revaluation This asset class is immaterial to the total asset value representing only 1.86% of the total asset value so revaluations are not mandatory for the AASB 116 paragraphs 31-42 purposes. However it is noted that this asset class includes Council subsidiary Nuriootpa Centennial Park Authority Infrastructure assets. This is a major asset class for this authority therefore a revaluation is required. Periodic revaluation of assets in the class above materiality threshold using an independent source for the construction costs eg. Rawlinsons Construction Manual and unit rates obtained during the revaluation of Transport assets class. If considered appropriate an annual revaluation index using the LGPI Capital index may be applied to this asset class. Condition Assessment Condition assessment and asset maintenance plans are needed from a community and management perspective. For the asset type infrastructure an in-house site inspection of these assets was undertaken in 2010-11. 3 Year Program 2014-15 – Revaluation of assets in the class above materiality threshold using an independent source for the construction costs eg. Rawlinsons Construction Manual and unit rates obtained during the revaluation of Transport assets class. 2015-16 – An annual revaluation index using the LGPI Capital index may be applied to this asset class. Condition Assessment in-house will be undertaken. 2016-17 – An annual revaluation index using the LGPI Capital index may be applied to this asset class. Community Infrastructure Class - Last Valuation 01/07/2010 This asset class contains asset types for bushgardens, cemetery, fencing, monuments, fire, other structures and waste management. This asset class is immaterial to the total asset value representing only 0.34% of the total value so revaluations are not necessary and should not occur. Only periodic audits will be conducted to ensure the assets are required for Council business and in the condition needed. Plant & Equipment This asset class consists of assets held at cost and are therefore not revalued. Periodic stocktake is undertaken to check for existence, utilisation and replacement. Residual values are applied as appropriate to selected asset types, eg. heavy plant and machinery. Stocktake responsibility lies with the relevant manager who should ensure that this is performed annually and that the relevant process is followed with regard to assets that are not located, found to be obsolete or beyond economical repair. Furniture & Fittings This asset class consists of assets held at cost and are therefore not revalued. Periodic stocktake is undertaken to check for existence, utilisation and replacement.

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Stocktake responsibility lies with the relevant manager who should ensure that this is performed annually and that the relevant process is followed with regard to assets that are not located, found to be obsolete or beyond economical repair. Summary For a number of years Council has been conducting a comprehensive review of its asset holdings along with revaluations and componentisation of building assets, this work has substantially improved asset management data, reporting and records. The Asset Management Working Group along with resources dedicated to asset management, accounting and maintenance will continue to assist Council to manage and utilise the asset service potential. To ensure assets revaluation and condition assessment is given adequate consideration a budget of $53,979 is included for 2014-15. In summary identified work for the current financial year 2014-15, is as follows: Land In-house investigation of the fair value, if indicators show material change then an independent sample of 10% is applied to all assets. Building If indicators (LGPI Capital Index) show a material change then a 10% sample will be selected and compared to the Rawlinsons Construction Manual for the current construction costs. Where there is a material difference apply the LGPI capital index to all building assets. Notwithstanding if considered appropriate an annual revaluation index using the LGPI Capital index may be applied to this asset class. Review depreciation for Market Value assets. Transport An independent consultant has been engaged to provide unit rates for all asset types within this class in order to carry out the revaluation. An in-house condition assessment of Footpaths and unsealed roads will be carried out. Bridges, Floodways and Major Culverts No asset assessments undertaken. CWMS An independent consultant has been engaged to provide unit rates for pipes. All other asset types within this class will be valued using in-house expertise applying market cost in order to carry out the revaluation. An internal assessment of CWMS assets has been carried out to enable componentisation of assets for revaluation using unit rate. Ongoing in-house rolling condition assessment on pipe systems. Stormwater & Drainage An independent consultant has been engaged to provide unit rates for all asset types within this class in order to carry out the revaluation.

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Recreation Revaluation of assets in the class above materiality threshold using an independent source for the construction costs eg. Rawlinsons Construction Manual and unit rates obtained during the revaluation of Transport assets class. Community Infrastructure No work required. Plant & Equipment No work required. Furniture & Fittings No work required.

AUDIT COMMITTEE

CORRESPONDENCE

24 JUNE 2015 6.2 CORRESPONDENCE

6.2.1 DEAN NEWBERY & PARTNERS – EXTERNAL AUDIT MANAGEMENT REPORT– FINANCIAL YEAR ENDED 30 JUNE 2015 Dean Newbery & Partners’ correspondence advising they have completed the first audit attendance of the 2014/15 financial year audit at the Council and have detailed the findings and recommendations as a result of their audit testing.

6.2.2 RESPONSE TO DEAN NEWBERY & PARTNERS – EXTERNAL AUDIT MANAGEMENT REPORT– FINANCIAL YEAR ENDED 30 JUNE 2015 Response from The Barossa Council’s, Manager Financial Services to Dean Newbery & Partners addressing matters raised in the External Audit Management Report.

RECOMMENDATION: That correspondence items 6.2.1 to 6.2.2 be received.

AUDIT COMMITTEE

MANAGER FINANCIAL SERVICES

REPORT

24 JUNE 2015 7.1.1 2015/16 – 2024/25 LONG TERM FINANCIAL PLAN AND 2015/16 ANNUAL BUDGET AND BUSINESS PLAN B345 INTRODUCTION Council, at a Special Meeting held 3 June 2015, endorsed the draft Annual Budget & Business Plan 2015/16 incorporating the Long Term Financial Plan 2015/16 to 2024/25 has been prepared for public consultation. A copy of the document is provided in Attachment 1 and an excerpt from the Minutes of the Special Council Meeting is provided in Attachment 2. RECOMMENDATION That the report on the draft Annual Budget and Business Plan (AB&BP) 2015/16, incorporating the annual review of the Long Term Financial Plan (LTFP) 2015/16 to 2024/25 for consultation, be received and noted. COMMENT The Annual Budget & Business Plan (AB&BP) 2015/16 incorporates the Long Term Financial Plan (LTFP) 2015/16 to 2024/25 in the one document but under separate sections. The financial information has been prepared in accordance with the Council Budget and Rating workshops held in the last few months. All strategic parameters and indexation as discussed have been used in the calculation of the financial reports and statements A delay has been made for the purchase of selected plant and equipment expenditure in the years 2016/17, 2017/18 and 2018/19 to the year 2021/22 to remain in a net positive cash position. The LTFP is incorporated with the AB&BP process to ensure the two Plans align, as the AB&BP represents the first year in the LTFP. Preparing the two Plans concurrently enables the community to be involved in the short and long term planning of Council’s Budget. The public consultation period will commence from 10 June 2015 closes on 30 June 2015. Wo verbal submissions were made at the Council Meeting on 16 June 2015. The adoption of the Budget is due to be held in the first week of July (date to be confirmed).

LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN • Local Government Act • Annual Budget/Business Plan Policy

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS The adoption of the Budget is required between 1 June and 31 August 2015. In order to meet this time line, the Budget process, including the adoption of the draft document for public consultation purposes, is required to be underway in May. COMMUNITY CONSULTATION Detailed in the body of the Report.

Annual Budget and Business Plan 2015-16 | The Barossa Council | Page 1 of 44

The Barossa Council Annual Budget and Business Plan

For Consultation

2015-16 Incorporating the annual review of the

Long Term Financial Plan - 2015-16 to 2024-25


Version Control:

Version Status Date Version 1.0 Draft for Council adoption for Public Consultation 3 June 2015 Version 1.1 Adopted Draft for Public Consultation 4 June 2015

Questions? Members of the community who have questions regarding the Annual Budget and Business Plan, or who seek further information regarding the finances of Council, are encouraged to contact Council office during business hours, via the website, or via email.

Principal Office and Library:

Phone: 08 8563 8444

43-51 Tanunda Road, Nuriootpa

Website: www.barossa.sa.gov.au Email: [email protected]

All photographs by permission of the South Australian Tourism Commission. All rights reserved.

mailto:[email protected]


Contents

From the Mayor 4

Our Council 5

Overview 8

Annual Business Plan

Strategic Directions 9

Joint Ventures and Associated Entities

11

Directions for 2015-16 12

Capital Works Program 2015-16 15 Funding Our Activities

20

Implications for Our Rates

21

Measuring Our Performance

25

Non-Financial measures

28

Annual Budget

Budgeted Financial Statements 2015-16 29

Long Term Financial Plan 2015-16 to 2024-25

Introduction and Assumptions Financial Sustainability Appendix: A1 - Key Performance Indicators and Financial Parameters A2 - Long Term Plan Financial Statements 2015-16 to 2024-25 A3 - Capital Expenditure

35

37

39

40

44


From the Mayor

After extensive budget discussions in conjunction with Elected Members and Council officers, Council is pleased to present its Annual Budget and Business Plan 2015-16. There remain multiple challenges within the budget environment including growing cost of services and reduced levels of support from State and Federal governments. Council believes we have again produced a balanced budget which increases rates in accordance with the long term financial plan to maintain our current levels of service in many areas, and also commencing further investment into core services; primarily being roads, footpaths and infrastructure. The 2015-16 financial year will reap benefits from a period of budget consolidation and investment in core services with many new initiatives being approved. Significant changes and highlights in this year's budget include:

Addressing the growing costs of delivering services including staffing, utilities, insurance, materials and legislative compliance.

New investment in key infrastructure: Accelerated footpath program of $600k to

address the existing network condition; Maintenance of additional funding to rural road

resheeting works of $300k (indexed per annum) to $1.3m for 2015-16;

Funding of $1m for renewal and upgrades to existing infrastructure and playing surfaces at Council's major sporting and recreational ovals.

Various building projects. Continued investment in upgrading the Barossa

Valley Tourist Park; $628k for sealing of strategic roads in 2015-16

with an anticipated further $300k additional works in 2016-17;

$1.16m for resealing of the existing sealed road network;

$1.1m for installing a new wastewater mains line to service Williamstown.

Funding for existing services remains in accordance with adopted plans in addition to some new service spending in the following areas:

Providing for the release of reserve funds held by Council for current Section 41 Committees to support transition to new arrangements and undertake small projects;

Undertaking a feasibility study into the concept of a Southern Barossa Recreational Hub and other associated economic opportunities;

Year one of three for increased township tree planting being $25k in 2015-16, increasing to $100k in 2017-18 (depending on future budget allocations);

Extension to funding for a further year for the World Agrarian Landscape Heritage Bid.

The draft Annual Budget and Business Plan incorporating the annual review of the Long Term Financial Plan is available on Council's website, libraries and at the front desk of the Nuriootpa office. On behalf of the Elected Members of The Barossa Council, I am pleased to endorse this plan to the Community for comment.

Mayor Bob Sloane


Our Council The Barossa Council was originally formed in 1996 after the amalgamation of the District Councils of Barossa, Tanunda and Angaston. The majority of the District Council of Mount Pleasant was later amalgamated in 1997. The Council covers an area of approximately 894 square kilometres, is located approximately 80 kilometres north east of Adelaide, adjacent to the town of Gawler, and is home to a population of over 22,100. Prior to European settlement, the Barossa region was inhabited by the Peramangk and Ngadjuri people. Colonel William Light first visited the area in 1837, naming the Barossa Range from which the region derives its name. The settlement of the Barossa region began in 1840, with settlers originating from the British Isles, Prussia and Silesia. Those settlers quickly established the early townships of the region, such as Lyndoch, Rowland Flat, Tanunda, Nuriootpa, Angaston, Stockwell, Eden Valley, Mt Pleasant, Williamstown and Springton. Early farmers of the Barossa established vineyards in the 1840s and 1850s to supplement their primary activities of wool and livestock production and crop farming. In the late 1880s and 1890s there were substantial increases in the production of wine in the region which resulted in the establishment and subsequent expansion of a number of cellars. The driving forces behind this growth were the outbreak of phylloxera in other States and the development of an export market that provided some protection from the recession experienced in the rest of Australia during that time. The wine industry has continued to grow from these early beginnings and is the major source of income for the region. The cultural landscape of the present day Barossa is reflective of the substantial influence of the early British and German settlers. Vineyards and paddocks dominate the landscape but historical towns, churches, wineries and stone ruins contribute substantially to the charm and character. The natural vegetation of the Barossa has been retained in many areas and underpins the visual appearance and biological diversity of the area.

The Barossa is recognised as Australia's premier wine region. The wine experience, combined with the region's distinctive history, has made it a significant tourist attraction. The establishment of major festivals and high quality accommodation and restaurants has complemented these attractions. The Barossa experience is a diverse one. In addition to our premier wine and food attractions there are unique nature trails, parks and historical points of interest. The rich pastoral lands of the historic towns of Mount Pleasant and Williamstown produce fine wool, dairy products and prime lamb and beef. Forestry is also a major industry, and together with three reservoirs and national parks, provides recreational opportunities. The tourism industry continues to grow and has become a major focus for the continued development of the region.

Principal Office and Library:

43-51 Tanunda Road, Nuriootpa

Postal Address:

PO Box 867, Nuriootpa SA 5355

Branch Office/Libraries:

29 Barossa Valley Way, Lyndoch

130-132 Melrose Street, Mount Pleasant

Washington Street, Angaston

Library only 66-68 Murray Street, Tanunda

Website: www.barossa.sa.gov.au

Email: [email protected]

Localities in The Barossa Council: Altona, Angaston, Barossa Goldfields, Bethany, Cockatoo Valley, Concordia, Craneford, Cromer, Dorrien, Eden Valley, Flaxman Valley, Kalbeeba, Krondorf, Light Pass, Lyndoch, Moculta, Mount Crawford, Mount McKenzie, Mount Pleasant, Nuriootpa, Penrice, Pewsey Vale, Rosedale, Rowland Flat, Sandy Creek, Springton, Stockwell, Tanunda, Taunton, Vine Vale, Williamstown and Wilton.

Major Industries: Wine making, grapes, grain and spirit distillation; tourism; beef, wool and fat lamb production; cement manufacturing, dried fruit processing and packaging; forestry; water storage; mineral extraction industries; plastic injection moulding and plant manufacturing.

Distance of Principal Office from Adelaide CBD

80km

Area of Council 893.5km2

Number of Rateable Assessments 12326 Number of Non Rateable Assessments 526

mailto:[email protected]

Annual Budget and Business Plan 2015-16 | The Barossa Council | Page of 44 6

Statistics from the Australian Bureau of Statistics 2011 Census:

Key Statistics Number % Age Structure Number % Males 10,966 49.5 Infants 0 to 4 years 1,443 6.5 Females 11,203 50.5 Children 5 to 17 years 2,968 13.4 Total Population 22,169 100 Young adults 15 to 19 years 1,393 6.3 Adults 18 to 64 years 12,669 57.1 Mature adults 65 to 84 years 3,146 14.2 Senior Citizens 85 years + 550 2.5 Birthplace Number % Families Number % Australia 18,736 84.5 Couple without child(ren) 2,866 45.0 Overseas / Not Identified 3,433 15.5 Couple with child(ren) 2,763 43.4 Single parent / other family 738 11.6 Total families 6,367 100

For more, visit www.abs.gov.au

http://www.abs.gov.au/


Services provided:

Executive Services Australia Day Awards Media Communications

Business Excellence Organisational Development

Citizenship Ceremonies Risk Management

Economic Development Strategic Projects

General Management Sustainability

Governance (shared) Tourism

Human Resources Work Health and Safety

Services provided:

Director Building Assessment Food Inspection

Development and Café Licences Heritage

Environmental Services Community Wastewater Management

System (CWMS Administration)

Immunisation

Liquor Licences

Development Control Natural Resources

Dog and Cat Control Parking and Traffic Control

Dry Areas Implementation Public Health

Environmental Health Strategic Development Planning

Fire Prevention and Safety Waste Management

Services provided:

Director Corporate Services :

Corporate and Administration Community Committees

Community Services Administration Customer Service

Community Land/Policy

Financial, Rating, Payroll and Financial Internal Controls

General Administration

Governance (shared)

Information and Communication Technology and Records Management

Operation of Recreation Facilities

Tourism/Visitor Information Services

Community Services :

Arts and Culture

Barossa/Light Volunteer Resource Centre

Community Development

Library Services

Youth Services

Services provided:

Director Asset Construction and Maintenance Management of Plant and Machinery

Works and Engineering Bridge Construction and Maintenance Playgrounds

Services Cemeteries Public Lighting Requirements

CWMS Maintenance and Repairs Public Toilets

Development and Maintenance of Parks and

Reserves

Road Construction and Maintenance

Road Safety Control

Footpath Construction and Maintenance

Infrastructure Development

Roadside Vegetation Management and

Control

Maintenance of Council Buildings/Facilities Stormwater Drainage and Construction

The Barossa CouncilMayor and 11 Elected Members

Home and Care Services - Community Transport, Home Assist and Barossa Leisure Options


Overview The Annual Budget and Business Plan is The Barossa Council’s statement of intended programs and outcomes for the coming financial year. This Plan has been developed through a rigorous process of consultation and review with Council Officers and Elected Members, and follows the Business Planning Framework outlined in the Strategic Directions area of this document. It includes both continuing services, programs and new initiatives, and follows the strategic directions outlined in Council’s Strategic Plan 2011-15, Long Term Financial Plan (LTFP) – the annual review is included in this document) and Long Term Infrastructure and Asset Management Plan. Local Government is the most asset-intensive tier of government. The Barossa Council acts as custodian of approximately $285m of community assets, including road infrastructure encompassing 346 kilometres of sealed, 566 kilometres of unsealed roads and 69 kilometres of unformed roads. This presents Council with a number of complexities, including how to allocate resources in order to satisfy community demands for new and expanded services, whilst ensuring appropriate resources are provided for maintenance and future replacement of existing community assets. Council is committed to ensuring that the wide variety of services and activities it provides to the community reflect financial sustainability. The key measure of financial sustainability is ensuring operating expenditure (inclusive of depreciation) is fully funded from recurrent operating revenue streams. This means that Council should generally have sufficient recurrent revenue funds generated over a three year average in order to finance the programmed replacement of existing community assets at the end of their useful lives. Underlying Assumptions

A 4.5% average increase in general rates from existing ratepayers;

An increase in refuse/recycling service charges of 5.0% to ensure service is sustainable plus increase in number of services;

The separate rate which transparently reflects the cost of constructing The Rex Barossa Aquatic and Fitness Centre ended in the 2014-15 financial year;

All other Income and expenditure has been increased in line with the current cost for providing those services and consideration of Councils Long Term Financial Plan (LTFP);

Community Waste Management Systems (CWMS) operations has an increase of only 2.0% applied to the CWMS service rate;

Staff inclusions are: part time General Inspector; Local Emergency Management and Regional Procurement Project Officers the latter two primarily funded through grant or shared service funding arrangements. All other areas will remain constant and staffing costs increase in line with Enterprise Bargaining Agreements, Superannuation Legislation and contractual agreements;

The SA Local Government Price Index was 1.4% as at March 2015 and the general price index was 1.1% as at March 2015;

Selected operating costs have been isolated from general expenditure, e.g. electricity, water, insurance premiums, waste collection and disposal service costs. The projected increases for these are higher than the base rate and range from 2.5% to 4%;

Financial Assistance Grants: The supplementary roads portion of this funding ceased from 2014-15 ($210k) and the Financial Assistance Grants will not be indexed in 2015-16 (and for the following year) reducing income a further $20k.

For further information on rating and its impact please refer to the relevant areas within this document.

Key Features

A comprehensive capital works program of $10.1m, including $4.0m on transport assets for reseal and resheeting for roads (including a further $300k per annum for up to 9 years to rural road resheeting program to address condition issues), new and replacement of footpaths, drainage works for $491k


and $1,467k on our Community Waste Water Management Systems;

Expenditure of $165k for the renewal and/or replacement works on various buildings;

Upgrade and renewal to Recreation Park ovals $1,003k;

A second oval at Stockwell Recreation Park $345k (dependant on grant funding);

Installation of air conditioning at the Rex Aquatic and Fitness Centre $227k;

New cabins, multipurpose meeting room and swimming pool works at Nuriootpa Centennial Park $621k;

Refer also to “Capital Works Program 2015-16” in this document for more details.

Annual Business Plan

Strategic Directions The Barossa Council’s current Strategic Plan was adopted in 2011, in accordance with Section 122 of the Local Government Act 1999, and will continue in force until 2015. The Strategic Plan provides an explanatory framework to highlight objectives and targets, and guides efforts and the allocation of resources.

Objectives in the current Strategic Plan have been grouped under four Key Result Areas, as follows:

Community Wellbeing: a cohesive and healthy community, enjoying a high quality of life

Health & Family

Youth

Recreation

Safety & Security

Culture

Economic Wellbeing: a growing and diverse economic base supported by strong regional cooperation

Tourism

Business & Industry

Digital Economy

Natural and Built Environment: attractive and sustainable natural and built environments through planned and informed development and management

Character & Heritage

Environmental Sustainability

Waste

Infrastructure

Planning & Building

Governance and Organisation: a consultative and inclusive organisation dedicated to good governance, proactive leadership and high quality services

Responsibility

Service

Systems

People


The Business Planning Framework Council’s Business Planning Framework describes how these Key Result Areas, their associated Objectives, and the Strategies to reach these Objectives, provide guidance to the preparation of other Council long term and operational plans. These plans include:

Long Term Financial Plan which provides financial directions for the next 10 years;

Long Term Infrastructure and Asset Management Plan which provides the upgrade, replace and renewal programs for Council assets and infrastructure;

Annual Budget and Business Plan which provides the annual financial and operational plans, objectives and performance targets for Council;

Annual Report which describes the performance of Council on objectives set in the Annual Budget and Business Plan, as well as disclosing statutory information regarding the status of Council and Council services;

Development Plans which provide policy direction for the continued development of the Council area;

Infrastructure and Asset Management Plans which describe the programs of upgrade, replacement and renewal of assets and infrastructure;

Quarterly Business Plan and Budget Reviews which outline financial performance against the Annual Budget and Business Plan;

Monthly Financial Reports which regularly track the finances of Council.

The Strategic PlanCommunity Wellbeing | Economic Wellbeing | Natural and Built

Environment | Governance and Organisation

The Corporate PlanPeople | Systems and Processes | Finance | Assets

Service Delivery

Council Strategic Management Plans

Council Operations

Measures

Long Term Financial Plan

Long Term Infrastructure and

Asset Management Plan

Annual Business Plan and Budget

Infrastructure and Asset Management Plans

Business Unit PlansExecutive | Administration | Finance | Library Services |

Environmental Services | Planning | Building and Health | Visitor Information Centre | Information Technology | Community

Services | Capital Works | Engineering Services | Community Wastewater Management Scheme (CWMS) | Section 41

Committees

Individual Performance Plans

Community Survey, Elected Member Survey, Policies, KPIs

Staff Surveys, Quarterly Review, KPIs

Quarterly Reports, KPIs

Annual Report, Financial Indicators, KPIs

Financial Indicators

Staff Performance Reviews, KPIs

Financial Indicators

External Strategies

Business Planning Framework

Business Planning Framework | The Barossa Council

Development Plans

South Australia Strategic Plan

Greater Adelaide 30 Year Plan

Regional Development Australia

Barossa Health

Barossa Wine and Grape Association

Natural Resource Management Regional Plans

Local Government Association

Southern and Hills Local Government Association

Central Local Government Region

Tourism Barossa

Wakefield Group


Joint Ventures and Associated Entities

Nuriootpa Centennial Park Authority Established as a subsidiary of Council pursuant to Section 42 of the Local Government Act 1999, the Nuriootpa Centennial Park Authority manages and maintains the Nuriootpa Caravan Park and adjacent sporting and leisure facilities on behalf of Council. To this end, and in accordance with the Authority’s Charter, operating surpluses of the Caravan Park activities are utilised to maintain the Nuriootpa Recreation Park facilities (including tennis courts, 3 ovals and associated buildings and infrastructure), as well as the picturesque Coulthard Reserve located adjacent to the Caravan Park. Operating surpluses from the Caravan Park activities are also utilised to provide important funding for the programmed upgrade and replacement of the facility assets managed by the Authority. The 2 ovals, a soccer pitch and eight tennis courts are extensively used by local sporting clubs. The four-star rated Caravan Park facilities include on-site cabins and vans, a camp kitchen, and various other standard amenities. The projected 2015-16 Income Statement for the Authority is included within Council’s financial statements, contained within this document.

Southern & Hills Local Government Association Established in 1969, this organisation is formed under Section 43 of the Local Government Act 1999 and operates as a regional subsidiary of councils included in the membership . An amount of $18,000 is included for the subscription.

Central Local Government Association Established in 1998, this organisation is formed under Section 43 of the Local Government Act 1999 and operates as a regional subsidiary of councils included in the membership. An amount of $10,367 is included for the subscription.

Gawler River Floodplain Management Authority Established in 2002, this organisation is responsible for the construction, operation and maintenance of flood mitigation infrastructure in the Gawler River catchment. An amount of $11,020 is included for the operational & maintenance subscription. Council has a share in the Net Assets $1,658,655 as at 30 June 2014. An adjustment for the movement from last year’s balance is not as yet reflected in the Financial Statements in this document.


Directions for 2015-16

Economic Environment Together with Light Regional Council, the Town of Gawler and the District Council of Mallala, The Barossa Council contributes financially to Regional Development Australia Barossa Inc (RDA), and has Board representation. The RDA proactively supports and promotes sustainable economic growth and innovation in the region. Council is also working with local groups such as the Nuriootpa Futures Association, Tourism Barossa, Food Barossa and local town committees to support and grow the local economic opportunities.

Climate Change The RDA Barossa, The Barossa Council, Light Regional Council, the District Council of Mallala, Barossa Grape & Wine Association and the Adelaide and Mount Lofty Ranges NRM Board have developed this Regional Climate Change Adaptation Plan. The Plan reflects the Region’s commitment to adapting to climate change and continues the work started following signing of the Barossa Regional Sector Agreement on climate change in March 2011 by RDA Barossa. The Plan has been developed by undertaking an Integrated Vulnerability Assessment and an adaptation options assessment, informed by a stakeholder workshop. The Integrated Vulnerability Assessment identified six key areas of decision making to focus adaptation actions on for the Region covering the following themes: 1. Viticulture 2. Water resources management 3. Community services 4. Biodiversity management 5. Emergency services management 6. Manufacturing Further work will be undertaken during the 2015-16 financial year to address other key areas identified within the Plan from existing resources.

Waste Collection Council will continue to provide the following services:

Weekly general waste collection service for premises across the area with the provision of 140 litre mobile garbage bins (MGBs) with optional 240 litre MGB collection service only for families having 6 or more members (provided at the same charge as a 140 litre MGB)

Fortnightly 240 litre MGB co-mingled recyclable materials collection service to all applicable premises

Weekly 140 litre MGB or optional 240 litre MGB service for commercial/ industrial premises

Optional fortnightly 240 Litre MGB green waste collection service provided to residents within Angaston, Lyndoch, Mount Pleasant, Nuriootpa, Stockwell, Tanunda and Willliamstown

One Waste Transfer Station located at Springton opening on two Saturdays per month

Council also will continue the operation of its waste oil disposal facility at the Tanunda Works Depot.

Members of the community are also able to drop off full syringe containers at the Council’s principle office or any Council library. Environmental Health Officers appropriately store, transport and dispose of full syringe containers in a safe and environmentally friendly manner. Replacement syringe containers are available at cost price from Council’s offices. Council works vehicles are supplied with sharps containers and safe handling equipment to enable prompt and proper collection and disposal of discarded syringes in public areas. Council Environmental Health Officers provide guidance, advice and reference of appropriate control and disposal of hazardous substances. Proactive initiatives include regular media releases and information provided through local newspapers and radio.

Community Wastewater Management System (CWMS) The Barossa produces about 2.2 million litres of sewage a day, which is transported from homes and businesses to Council treatment plants via approximately 128 kilometres of pipes and 31 pumping stations. Regular monitoring and maintenance of the CWMS system is carried out to ensure effective performance and safety. Spread across the region are five wastewater treatment plants, four sets of treatment lagoons, five irrigation storage lagoons and associated ancillary pumps and plant required to effectively treat wastewater. Council is committed to continuously reducing the impact these services have on the environment with 90% of water entering into the system being able to be recycled (800 million litres a year). Continued focus for CWMS operations will be monitoring the condition of aging assets to ensure their continued safe and reliable operation. The outcomes of these condition monitoring programs will allow the CWMS Capital works program to be focused and effective. The duplication of the Williamstown rising main to allow


further township growth, address a serious risk to the service due and the effective management of aging assets has been highlighted as a priority and will be undertaken during 2015-16.

Strategic Planning Council’s strategic land use planning projects revolve around Local and State Government development policy reviews. These reviews respond to state initiatives such as the 30 Year Plan and the Character Preservation (Barossa Valley) Act; as well as community consultation on council projects such as its Strategic Directions Report and Rural Areas and Character Review. At a Council level, several projects are being implemented to maintain our region’s unique character and amenity while also maintaining its township living and working environment. Key projects in the next financial year will include the following local studies and investigations:

Implementation of the Rural Areas and Character Review through policy amendments to Council’s Development Plan. These amendments will introduce changes to policies for rural areas, protection for primary production, agricultural significance and character elements to better protect our region;

Finalisation of Kalbeeba infill investigations and consultation on relevant findings relating to future development options;

Initiating a region-wide Townships Review which will examine planning policies and desired character statements for each town future design and spatial planning. This extensive project will require an analysis of constraints and opportunities for growth in the context of recent Character Preservation amendments to the State Planning Strategy. There will also be investigations of the potential for higher density residential development (reviewing allotment size and desired building heights) in major townships.

There will also be continuing Council involvement in the regional bid for world heritage area classification. This is being undertaken on a joint basis with a number of Councils in the Mount Lofty Ranges region. At a State level, Council will continue to make submissions to the Government on behalf of the community in an effort to identify future reforms for improved regulations and assessment procedures, and maintain its input to strategic planning generally to enhance both local and regional policies. A key focus in the next financial year will be examining a range of planning reforms which the State Government has commenced, including potential new development legislation.

Council’s planning activities will continue to respond to ongoing State strategies, especially the ’30-year Plan for Greater Adelaide’ which is to be reviewed during the 2015-16 period. This document originally created new growth areas for transport‐oriented development and housing and established regional population targets which now require updating. There has also been confirmation that the State Government is continuing its high-level strategic study and investigations into the long term potential for urban development at Concordia, in an area that lies east of Gawler. During 2015-16 Council will review its organisational strategic planning framework with the review of the current strategic plan with a view to developing a long term Community Plan. The Community Plan will be a visionary document and supported by enhanced Corporate Planning, Business Planning and associated reporting systems.


Asset Management Council has a selection of Infrastructure and Asset Management Plans covering its major asset classes. The plans for Transport, Stormwater, Community Wastewater Management System, Recreation and Buildings lay out the strategies for maintaining and developing existing assets, and for providing new assets which meet the needs of the Community.

Council reviews and updates these plans regularly, assessing asset life cycles, safety, sustainability and levels of service. The financial implications for managing these assets inform Council’s Long Term Financial Plan, as per Council’s Business Planning Framework.

Whilst there will always be community demand for the provision of new and upgraded assets, it is imperative that capital expenditure priority is given to the replacement and renewal of existing assets before considering the construction or purchase of new assets.

Additionally, with finite financial resources, it is also important that Council gives consideration to the disposal of surplus or non-performing assets – thereby releasing financial resources to more appropriate asset management activities.

Note: not including donated assets *Includes all NCPA assets

Council Capital Works Budget 2015-16 $’000 Land Building & Other Structures*

0 1,079

Transport 4,030 Bridges 122 CWMS 1,467 Stormwater & Drainage 491 Recreation 1,608 Equipment, Plant & Vehicles 1,262

Sub Total Amounts specifically for new or upgraded assets Proceeds on disposal replaced assets

10,059 (1,193)

(320)

Proceeds on disposal surplus assets 0

Net Capital Program 8,546


Funding Our Activities Council is budgeting the expenditure of $44.7m in 2015-16 on the delivery of services, programs and the maintenance of assets and development of new or upgraded assets and loan servicing.

Operating Revenue The Budget provides for operating revenue to increase from the last year third Budget Update of $33.8m to $34.6m – an increase of 2.4%. Recurrent revenue streams of Council are:

$M % Type Description 27.2 78.6% General Rates and

Service Charges General rates on properties as well as service rates (i.e. sewerage and refuse/recycling rates)

2.7 7.8% User Pay Charges set by Council

Charges for the Council’s fee based facilities and services such as caravan parks, swimming pools, community halls, cemeteries and refuse dump fees

2.9 8.4% Grants and Subsidies

Council seeks to attract as much grant funding from other tiers of government as possible, thereby reducing the reliance on other revenue streams

1.2 3.5% Investment, Reimbursements & Other income

Interest received on Council’s internal cash reserves and deposits, Reimbursements for work undertaken and Other Income

0.6 1.7% Statutory charges set by State Government

Fees and charges set by State Government regulation and received by the Council for regulatory functions undertaken such as assessment of development and building applications, and dog control management

Operating Expenditure The Budget provides for operating expenditure to increase from the last year third Budget Update of $33.9m to $34.5m – an increase of 1.8%. Full Cost Attribution has not yet applied to this version. This is an allocation of internal services to external services and does not affect the overall net result. It will be included in the final version of this plan for adoption after Public Consultation. Recurrent expenditures incurred by Council are:

$M % Type Description 13.9 40.3% Contractual Services,

Materials & Other Expenses

Payments for external provision of services Payments for physical goods such as water, fuel, energy, road materials, office consumables and stationary Includes expenses not separately classified above such as insurances, postage, telephone, government levies, contributions and donations

12.2 35.4% Employee Costs All labour related expenses such as wages and salaries, and on-costs such as allowances, leave entitlements and employer superannuation

7.3 21.1% Depreciation Annual consumption of Council’s fixed assets (e.g. infrastructure, equipment, buildings, etc) over their useful lives

1.1 3.2% Finance Costs Costs of financing Council’s activities through borrowings or other types of financial accommodation


Implications for Our Rates Council plans to raise a net sum of $23,004,281 from rates in 2015-16 (including growth, but excluding service charges, separate rates and the State Government’s NRM levy).

Council recognises that ratepayers wish increases to their rates to be as low as possible; however it is necessary to ensure that current services are properly funded and can continue to be delivered without significantly impacting standards or passing on a financial burden to future ratepayers or cutting services utilised by the community. Current assets and infrastructure owned by Council deteriorate over time through wear and tear and must be replaced or renewed at appropriate intervals in order to prolong their lives and continue to deliver services to the community.

The proposed increase in rate revenue will provide the necessary funding to meet the programmed upgrade, renewal and replacement plans in place as outlined in the Long Term Infrastructure and Asset Management Plan, ensuring that existing services to the community will be maintained.

Council is aware of the impact on ratepayers and is committed to providing and developing options to ease the rate burden through increasing its own efficiency and by providing those under hardship with appropriate alternatives to suit their circumstances.

Rating Policy Section 147 of the Local Government Act 1999 provides Council with the power to rate all land within The Barossa Council, except for land specifically exempted, such as Crown land and land occupied by Council.

Council is mindful of its responsibility to continually review its rating policy to ensure it is fair and equitable on its residents. The current rating policy is available for

inspection at all Council branches and can be downloaded from Council’s website at www.barossa.sa.gov.au.

Land Valuation Method Council uses the capital value determined by the State Valuation Office as the basis for valuing land and calculating rates.

Council considers that this method provides the fairest method of distributing the rate burden across all ratepayers on the following basis:

The equity principle of taxation requires that ratepayers of similar wealth pay similar taxes and ratepayers of greater wealth pay more taxes than ratepayers of lesser wealth;

Property value is a relatively good indicator of market value of a property, providing the fairest method of calculating rates.

The total Property rateable valuations provided by the State Valuation Office as at 21 April 2015 was $4,614,767,167, a 4.02 % increase over last year.

Land Use Total Valuation Movement

Residential 4.41% Commercial 0.85% Industry – Light 13.94% Industry – Other (0.80)% Primary Production 3.28% Vacant Land 21.39% Other (1.50)%

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


Differential Rates General rates payable for each ratepayer is determined by the capital valuation multiplied by the rate-in-the-dollar set by Council. Council applies differential general rates based on the land use of the property, as outlined in the Land Use table.

Fixed Charge As part of the general rates, Council applies a fixed charge component so that all rateable properties make a fixed contribution towards the cost of administering Council’s activities. The fixed charge has increased from $300 to $316 per assessment.

Service Rates Council provides various prescribed services pursuant to Section 155 of the Local Government Act 1999 which includes community wastewater management systems, refuse collection and kerbside recycling service. The cost of these services, including a component for future capital works where appropriate, is recovered from those ratepayers utilising the service.

Separate Rate – “The Rex” Aquatic and Fitness Centre The construction of the Rex was in part funded by a separate rate applied (pursuant to Section 154 of the Local Government Act 1999) on all rateable properties excluding vacant allotments for a period of 6 years. The 2014-15 financial year was the final year for the separate rate and the average increases for each rate type except vacant land reflects this.

Land Use Table Year Average Valuation $ Rate Charge $ Residential: residential dwellings, flats, units 2014-15 309,423 0.003307

2015-16 318,422 0.003375 Commercial: Retail shops, professional services e.g. accounting, legal, engineering, etc.

2014-15 454,246 0.005050 2015-16 455,013 0.005282

Industry – Light: Vehicle repairs, workshops 2014-15 295,416 0.005258 2015-16 297,156 0.005486

Primary Production: Agriculture, livestock, horticulture, commercial forestry

2014-15 510,050 0.0033462 2015-16 519,826 0.003375

Vacant Land: Vacant allotments 2014-15 157,139 0.005900 2015-16 164,357 0.006148

Other: Government agencies, education, public utilities 2014-15 356,360 0.005360 2015-16 359,013 0.005610

Industry – Other: Wineries, manufacturing 2014-15 2,273,707 0.014738 2015-16 2,282,859 0.015447

In order to obtain an average valuation, the data did not include past assessments that were removed and/or new assessments in 2015-16. The calculations are based on the average valuation as at week 42 from the Valuer General, as shown above and growth from development is not included in the average valuations. Individual assessments may vary from these amounts.

State Government Levies The Barossa Council collects a regional Natural Resource Management (NRM) Levy on behalf of two regional NRM Boards on all rateable properties. In this capacity, Council is operating as a revenue collector for the State Government and does not retain the revenue or determine how it is spent. Further information is available from the relevant State Government agencies.

Mandatory Rebates Council is required under the Local Government Act 1999 to rebate rates payable on some land. Specific provisions are made for land used for specific purposes, e.g. health services, public cemeteries and educational institutions.

Discretionary Rebates Discretionary rebates may be applied by the Council on land used for community purposes under Section 166 of the Act. Application forms giving full criteria are available from Council.

Residential Rate Capping Council offers a rebate of general rates to the principal ratepayer where the increase in general rates levied upon a property exceeds the 2014-15 general rates levied by more than:

7.5% for ratepayers on fixed government incomes;

15% for other ratepayers Application forms with eligibility criteria are available from Council’s Principal Office or any branch office.


Concessions and Postponement In order to support ratepayers who are in receipt of fixed incomes, a number of concessions are available for eligible pensioners and self-funded retirees. These concessions are administered by the Department for Communities and Social Inclusion (DCSI) who determine eligibility and pay the concession. Concessions are only available on the principal place of residence. In 2015-16 it is expected that the Council rate concession (last year at 60% to a maximum of $190) will be paid directly to eligible pensioners. Any sewerage concession will continue to be paid to Council by DCSI and will be shown as a deduction from the rates. In addition and in accordance with the Local Government Act 1999, persons who hold a Seniors Card may apply to postpone payment for any amount in excess of $500 ($125 per quarter), less any concession entitlement for their principal place of residence. The Barossa Council encourages ratepayers who are experiencing difficulties in paying rates to contact Council on (08) 8563 8444 to discuss support that may be available to alleviate any financial hardship. Such enquiries are treated confidentially by Council.

Paying Your Rates Council provides for quarterly payment of rates in September, December, March and June each year. Payments can be made via Australia Post Billpay, B-Pay, via Council’s website (www.barossa.sa.gov.au), by mail, or by cash/cheque/EFTPOS over the counter at the Nuriootpa or branch offices.

Expected Impact on Ratepayers Consistent with Council’s adopted Long Term Financial Plan 2014-15 to 2023-24, the 2015-16 Annual Budget and Business Plan reflects an overall increase of 4.5% for general rate revenue with a further 1.74% from new property growth being required to fund the recurrent services, activities and major works program incorporated within the plan. For more information on

the rate revenue increases please refer to the Long Term Financial Plan section in this document. The following table incorporates the proposed overall rating and its impact using average valuations as shown in the Land Use Table (on the previous page); rate changes for individual assessments will likely vary from these amounts.

Understanding the Numbers The Residential CWMS Service charge will increase from $300 to $306 and the service rate has been removed. The Springton residential service charge will increase from $290 to $306 (to bring it into line with other schemes). The Non-Residential CWMS service rate for each of the townships has been increased to $0.001197. Many Springton properties are charged a capital contribution of $245 for a 15 year period. An annual service charge of $55 is applied to vacant allotments in Springton and an annual service charge of $100 is applied for all other vacant allotments where CWMS is available but not connected. The CWMS rate service charges will raise $2.43m, adding to other revenue for a total CWMS income amount of $2.68m for 2015-16. The operating expenditure for the same period is expected at $2.55m generating a surplus of $0.13m. This surplus is used towards capital expenditure to ensure the services are maintained and grow with service demands into the short to medium term. Total expenditure for CWMS renewal, replacement, new and upgrades at $1.5m. CWMS charges are shown in the following chart. The Refuse collection service rate has been increased by 5.00 % on 2014-15 charges from $108.00 to $113.40 for a 140 litre bin and from $147.10 to $154.50 for a 240 litre bin. The Recycling collection service rate has also increased from $51.90 to $54.50 – 240 litre bin. The two service rates are shown together in the following chart under Refuse/Recycling.

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


Rates for Land Use Categories based on Average Valuation (see table on page 22)

In the table below, “Rex” refers to the Aquatic & Fitness Centre separate rate.

Type Year General

Rates Fixed

Charge CWMS Refuse/

Recycling “Rex” Total

Residential 2014-15 $1,023.30 $300.00 $300.00 $159.90 $59.80 $1,843.00 2015-16 $1,074.70 $316.00 $306.00 $167.90 $0.00 $1,864.60

Commercial 2014-15 $2,293.90 $300.00 $542.60 $159.90 $150.20 $3,446.60 2015-16 $2,403.40 $316.00 $544.70 $167.90 $0.00 $3,432.00

Industry - Light

2014-15 $1,553.30 $300.00 $352.90 $159.90 $97.70 $2,463.80 2015-16 $1,630.20 $316.00 $355.70 $167.90 $0.00 $2,469.80

Primary Production

2014-15 $1,706.70 $300.00 $0.00 $159.90 $36.70 $2,203.30 2015-16 $1,754.40 $316.00 $0.00 $167.90 $0.00 $2,238.30

Vacant Land 2014-15 $927.10 $300.00 $100.00 $0.00 $0.00 $1,327.10 2015-16 $1,010.50 $316.00 $100.00 $0.00 $0.00 $1,426.50 Other 2014-15 $1,910.10 $300.00 $0.00 $159.90 $117.80 $2,487.80

2015-16 $2,014.10 $316.00 $0.00 $167.90 $0.00 $2,498.00 Industry - 2014-15 $33,509.90 $300.00 $0.00 $50.40 $1,753.00 $35,613.30 Other 2015-16 $35,263.30 $316.00 $0.00 $54.50 $0.00 $35,633.80 Note: Rates have been calculated using information from the Land Use table on Page 22.

Land Use Code Year Total Rates % Average Total Increase

Residential 2014-15 1843.002015-16 1864.60 1.17%

Commercial 2014-15 3446.602015-16 3432.00 -0.42%

Industry - Light 2014-15 2463.802015-16 2469.80 0.24%

Primary Production 2014-15 2203.302015-16 2238.30 1.59%

Vacant Land 2014-15 1327.102015-16 1426.50 7.49%

Other 2014-15 2487.802015-16 2498.00 0.41%

Industry - Other 2014-15 35613.302015-16 35633.80 0.06%

Percentage increase in Rates & Charges for Land


Measuring Our Performance Measuring and monitoring performance is important to ensure our objectives are achieved and services are delivered to our community. Council monitors financial performance through its Business Planning Framework (see the section entitled “Strategic Directions” above). This includes:

Monthly Financial Reports which regularly track Council finances;

Quarterly Budget Reviews which outline financial performance against the Annual Budget and Business Plan;

Audited Financial Statements which are included in the Annual Report as required under the Local Government Act 1999;

the Annual Report which describes the performance of Council on objectives set in the Annual Budget and Business Plan;

Council’s Strategic Plan 2011-2015 which lays out the long term objectives and strategies Council is striving to achieve.

To provide advice and recommendations on financial and governance matters, Council has appointed an Audit Committee which includes independent members with qualifications and experience in related disciplines.

Key Performance Indicators Council has a number of financial Key Performance Indicators (KPI’s) which measure the impact of the annual budget on Council’s financial position. Each of these indicators, together with associated comments, is outlined below: Legend: Target

Not Met Target At Risk

Target Met

Forecast is the third Budget Update (Q3) for the year, adopted by Council at the May 2015 meeting and material financial information received since that time has been included. The Key Performance Indicator: Asset Consumption Ratio is no longer showing within this report. The Local Government (Financial Management) Regulations 1999 no longer require the inclusion of this KPI with the budget estimates.

Key Performance Indicator: Operating Result ($’000) Council has set the following target - To achieve an operating break-even position, or better, over any five year period. Individual periods are shown; refer to the long term financial plan section in this document for a rolling 3 year period. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 148 78 (123) 145 Status


Key Performance Indicator: Operating Surplus/(Deficit) Ratio Expresses the projected Operating Surplus/(Deficit) result as a percentage of general rate revenue. Council has set the following target - To achieve an operating surplus ratio of between -2% to 10, over a rolling 3 year period. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 0.6% 0.3% -0.5% 0.5% Status

Key Performance Indicator: Net Financial Liabilities ($’000) Council has set the following target - Council's level of net financial liabilities is no greater than its annual operating revenue and not less than zero. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 13,143 13,986 15,384 16,567 Status

Key Performance Indicator: Net Financial Liabilities Ratio Expresses the projected Net Financial Liabilities as a percentage of total operating revenue for each year. It is Council policy (and industry best practice) that this ratio shall not exceed 100%. Council has set the following target - Net financial liabilities ratio is greater than zero but less than 100% of total operating revenue. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 42% 43% 46% 47% Status

Key Performance Indicator: Interest Cover Ratio Expresses the net interest expense (i.e. interest expense less investment income) as a percentage of total operating revenue. Council has set the following target - Net interest is greater than 0% and less than 8% of operating revenue. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 3.1% 3.0% 2.9% 2.7% Status

Key Performance Indicator: Asset Sustainability Ratio Expresses the rate by which assets are wearing out and being replaced by comparing capital outlays on renewal/replacement of existing assets (net of any proceeds from the sale of replaced assets) to the annual depreciation expense allocated against such assets. Council has set the following target - Capital outlays on renewing/replacing assets net of proceeds from sale of replaced assets is greater than 80% but less than 110% of Infrastructure Asset Management Plans over a rolling 3 year period. Year 2012-13 Actual 2013-14 Actual 2014-15 Forecast Q3 2015-16 Budget Result 98% 81% 85% 98% Status


Operating Expenditure The following graphs show operating expenditure proposed for the 2015-16 year and for the third Budget Update 2014-15 by the following functions: Administration, Business Undertakings, Community Amenities, Community Support, Cultural Services, Economic Development, Environment, Health Services, Library Services, Public Order and Safety, Recreation, Regulatory Services, Transport, Waste Management. (Full Cost Attribution has been applied to the 2015-16 budget graph using 2014-15 original budget amounts – this will be updated in the final version for adoption.)


Non - Financial Measures Council is reviewing its Key Performance Indicators to improve the measurement of performance. This is part of Council’s Strategic Plan, as well as continuous improvement initiatives related to Council’s Business Planning Framework. Non-financial indicators measuring the performance of Council in relation to the Annual Business Plan can be found below.

They provide information with regards to Council’s capacity to effectively deliver services to our community, and the targets Council intends to meet. Council’s performance against these indicators is then reported in the Annual Report.

Indicator Purpose Target

People Employee Retention Rate (annual trend) Measure of organisational capacity 90%

Systems and Processes Percentage of Business Unit Plan activities on track

Measure of delivery of services and programs planned

>95% completed or on track

Finance Management & Regulatory Financial reporting meeting scheduled timetable, including monthly (12), quarterly (4) & annual (3)

Measure that information is presented at a strategic level, succinct and easy to follow and available to all stakeholders within deadlines

Target 100%

Internal control compliance Measure number of risk areas being checked for compliance and existence of controls

Target 90%

Assets Percentage of Capital Renewal Program scheduled works on track

Measures Capital Works Program, Capital new Initiatives, and other scheduled capital programs against projected completion times

Actual to be consistent with Annual Budget projections at least 90% achieved.

Service Delivery Percentage of customer requests responded to in accordance with the Request for Service Policy

Measures all requests through Council’s customer request system, and all complaints lodged with Council’s regulatory systems

90%


Annual Budget

Budgeted Financial Statements 2015-16 The following pages contain Council’s budgeted financial statements, including the Nuriootpa Centennial Park Authority, in a format consistent with the requirements of Regulation 5B of the Local Government (Financial Management) Regulations, comprising for the year ending 30 June 2016:

Statement of Comprehensive Income

Balance Sheet Statement of Changes in Equity Cash Flow Statement

Uniform Presentation of Finances Please note: the format of the following Financial Statements is based on the 2014 Model Financial Statements.

Annual Budget and Business Plan 2015-16 | The Barossa Council | Page - 30 of 44


Long Term Financial Plan 2015-16 to 2024-25

Introduction and Assumptions Under Section 122 of the Local Government Act 1999, Councils are required to have a Long Term Financial Plan (for a minimum period of 10 years) as part of their suite of Strategic Management Plans. This document subsequently reflects an annual review of Council’s Long Term Financial Plan and acts as a starting reference point in the formulation of Council’s 2015-16 Annual Budget & Business Plan. The Long Term Financial Plan is designed as a ‘high-level’ document that summarises the future planning of Council’s financial operations – particularly in relation to key components such as rate movements, service levels to our community, major infrastructure asset replacement/renewal, loan indebtedness and internal cash reserves.

On this basis and given the ‘high-level’ nature of the document, the Plan has been developed based on a number of key assumptions previously discussed and endorsed by Council. Further, Council has also previously endorsed a number of strategic financial policies which have also driven the formulation of the Plan.

Section 122 of the Local Government Act also prescribes that Councils must have a long term Infrastructure and Asset Management Plan to guide the future replacement, renewal and maintenance of our significant fixed asset base. Council’s Infrastructure and Asset Management Plan was adopted by Council in 2012 – with an ongoing review process to provide improved asset data and information.

Consequently, in recognition of this, it is appropriate that a cautious and conservative approach be undertaken with financial modelling as part of the update to the Long Term Financial Plan. With a significant fixed asset base, being predominantly comprised of major community infrastructure such as roads, footpaths, stormwater drainage and community wastewater management systems, it is imperative that

there is an appropriate link and consistency between the Infrastructure and Asset Management Plan and the Long Term Financial Plan – towards ensuring that the Long Term Financial Plan provides for the necessary capital outlays (as identified in the Infrastructure and Asset Management Plan) for the renewal and replacement of existing community assets – herein referred to as ‘non-discretionary’ capital expenditure. General Assumptions

Long term financial plans have been prepared for each of the following areas to measure and check financial sustainability: CWMS; Waste; Nuriootpa Centennial Park Authority (NCPA); all other Council operations and a consolidated LTFP

The NCPA operational LTFP is based on the 2015-16 budget year using Council indexing. The capital budget as provided by NCPA has been reduced to ensure the cash position is maintained

The SA Local Government Price Index as at March 2015 of 1.4%

The LTFP reflects existing recurrent service levels to our community being maintained. Council’s budget process considers on-going Services Delivery and Commitments and New Expenditure items or Initiatives

For New Initiatives (NI’s) over $100,000, a Due Diligence Report – level 2 is prepared to assess the financial commitment in order that current and future budgets are accurate and that Council has full information regarding the financial risks of their decisions

All discretionary NI’s were then assessed using a Bid Analysis Tool and given a score against set criteria.

Operations

General Rate Revenue increments have been reviewed to ensure funding and service level provision is maintained in line with sustainability


requirements. (Increments are listed in the Financial Parameters following this report.)

Operating Cost – Employee, Contractors & Materials have been increased at an index rate plus half of the rates growth 1.0%.

Selected operating costs have been isolated from general expenditure, eg. energy use for electricity, water costs, insurance premiums, and waste collection and disposal service costs. The projected increases for these are higher than the base rate.

Depreciation has been calculated on existing asset classes, structures, valuation and condition rating; asset componentisation has been included as appropriate to selected asset types. A review of useful lives of transport assets and components is included within this review.

Rubble raising cost at $328k in 2015-16 with remaining stock to be used in the years following.

Section 41 Committees operational budgets are included in the 2015-16 budget and throughout the LTFP.

Roads to Recovery grant funding of $328k per year is confirmed for a five year period but has been included for the life of the LTFP. In 2015-16 an additional $328k has been added to the capital expenditure program and income as a one-off item.

Staff levels will remain constant with only minor changes included and overall increases projected to be in line with Enterprise Bargaining Agreements.

Full Cost Attribution - an allocation of internal services to external services has been estimated in the LTFP. This allocation does not affect the overall net result.

Capital

Asset Renewal and/or Replacement expenditure is provided for on various buildings, for the reseal and resheeting works on Council roads and other infrastructure.

Discretional Capital expenditure has been included at $350k per year from 2016-17 to 2020-21 and an increased amount for the remaining years.

Capital Grants in this review only include estimation for funding allocation for library books.

Council has identified land and building assets considered surplus both for the needs of the community and its operations. These surplus assets have been identified through an appropriate process, including consultation with the Community and the State Government.

A reduction has been included for purchase of selected plant and equipment expenditure in the years 2015-16 to 2017-18 and reinstated in the year 2021-22 to remain in a net positive cash position.

Loan Principal & Interest Repayment

The loan from Council to NCPA for $650k included in the LTFP is repaid starting from the 2015-16 year at $65k each year. Other external loans are then included for NCPA to purchase cabins and other

assets, these loans repayments start by NCPA from 2018-19.

An internal loan of $2.9m is required to ensure Council general operations meet financial sustainability indicators. The loan is transferred from the CWMS operations reserve with repayments made within the 10 year plan.

No other new external loans are included in this Plan. This is reflected in the reducing Net Financial Liabilities Ratio.

Council loan total for this plan is $17m as at 30 June 2015.

Key Performance Indicators

Council has established targets for the three Key Performance Indicators (KPI’s) as recorded within the LTFP document, as follows: KPI - No. 1 Achieve an operating breakeven

position, or better, over any five year period KPI - No. 2 Achieve an operating surplus ratio of

between -2% to 10% KPI - No. 4 Net financial liabilities ratio is greater

than zero but less than 100% of total operating revenue.

KPI - No. 6 Capital outlays on renewing/replacing assets net of proceeds from sale of replaced assets is greater than 80% but less than 110% of Infrastructure Asset Management Plans over a rolling 3 year period.

Financial Sustainability Performance Report

KPI - No. 1 - It is noted that for years cumulative 2015-16 to 2019-20 are within a surplus position.

KPI No. 2 - Operating surplus ratios have been amended and are now measured against total operating revenue. Council’s expected forecast results are within the target range.

KPI - No. 6 - the KPI target is being met in this review of the LTFP. As further reviews of planned expenditure from the Infrastructure and Asset Management Plan are undertaken, then a full assessment and measurement of the KPI will be done.

All other KPI’s are within the target ranges.

Council has reviewed its financial parameters for the LTFP including the indexation used for forward projections on income and expenditure. A full list is contained in the following tables.

In line with Council Policy a regular review of Council’s treasury management will be required to ensure a positive cash position is maintained.

This analysis indicates that The Barossa Council is currently financially sustainable for the forecast period covered by the LTFP. Noting that unless significant additional operating revenue is generated, or expenses and service levels are reduced, the Council does not have the capacity to financially undertake major additional discretionary proposed projects or services over the 10 year period, (other than the discretionary amount included within the plan).


Financial Sustainability The Barossa Council is committed to the principles of financial sustainability. The importance of financial sustainability is to ensure that each generation ‘pays their way’, rather than any generation ‘living off their assets’ and leaving it to future generations to address the issue of repairing worn out infrastructure. Such issues are frequently referred to as ‘intergenerational equity’. With community infrastructure such as roads, footpaths, and stormwater drainage comprising a major proportion of Council’s balance sheet, it is important that Council implement appropriate strategies towards the effective upkeep of such assets – so that the maintenance and renewal of such assets is fairly and equitably funded from current ratepayers (i.e. general rate income) and future ratepayers (long term loan borrowings). Given the importance of ensuring financial sustainability of Council operations in the longer term, it is a legislative requirement that individual councils adopt Long Term Financial Management and Infrastructure and Asset Management Plans (minimum 10 years) as part of future planning. The Long Term Financial Plan is designed as a ‘high-level’ summarised document towards the future planning of Council’s financial operations – particularly in relation to key components such as rate movements, service levels to our community, major infrastructure asset replacement/renewal, loan indebtedness and internal cash reserves. Council conducts an annual review of its Long Term Financial Plan. Council’s initial ‘high-level’ Infrastructure and Asset Management Plan was adopted by Council in November 2012 – with the Plan outlining a scheduled improvement process to further develop and enhance the Plan to a more comprehensive and detailed level over a four year period. To ensure each generation ‘pays its way’, it is subsequently crucial that current ratepayers effectively

fund the current net cost of services provided and community assets consumed. Without this being achieved (i.e. an operating deficit), future generations are effectively subsidising the current cost of service provision and asset consumption. Based on this, the financial sustainability of a Council is measured by the surplus/deficit (before capital revenues) disclosed in the Income Statement financial report – with a consistent breakeven or operating surplus result indicative of a Council that is financially sustainable in the long term. Other financial sustainability indicators recommended by the Financial Sustainability Inquiry and endorsed by The Barossa Council, are separately included within this report.

Our Financial Principles As part of its commitment to financial sustainability, Council operates under the following key financial principles in preparing the Annual Business Plan:

Ongoing education and training such that all Council Members and Staff understand and fulfil their financial governance responsibilities

Policies and practices that support decision making and assessment of performance

Budget and financial information is presented at a strategic level, succinct and easy to follow

Budget and financial information is based on the Long Term Financial Plan

The Asset Management Plans are maintained and reflect whole of life costs

The Rating strategy is equitable and generates sufficient revenue to meet financial needs

Financial performance is managed using suitable financial indicators and targets

A robust audit and internal control process is in place to ensure effective financial and governance compliance

Information provided to the community is open, transparent and relevant


Appendix

Key Performance Indicators and Financial Parameters

A1

Long Term Plan Financial Statements 2015-16 to 2024-25

A2

Capital Expenditure A3


A1 Consolidated Results: Key Performance Indicators and Financial Parameters OB = Original Budget; LTFP = Long Term Financial Plan 2015-16

LTFP % 2016-17 LTFP %

2017-18 LTFP %

2018-19 LTFP %

2019-20 LTFP %

2020-21 LTFP %

2021-22 LTFP %

2022-23 LTFP %

2023-24 LTFP %

2024-25 LTFP %

Key Performance Indicators (KPI’s) - Summary

KPI 1 - Operating Surplus cumulative forward 5 year period* 145 145 371 953 1,694

KPI 2 – Operating Surplus Ratio – rolling 3 year 0.1% 0.0% 0.3% 0.7% 1.3% 1.6% 1.5% 1.6% 1.6% 1.9%

KPI 4 – Net Financial Liabilities ratio 47.1% 42.9% 37.6% 31.9% 25.9% 20.5% 15.0% 8.4% 2.6% -2.9% KPI 6 – Asset Sustainability Ratio – rolling 3 year 97.5% 108.1% 92.0% 90.7% 94.7% 98.7% 103.6% 105.5% 108.4% 107.4%

Financial Parameters - Indexation

RATE REVENUE INCREASES

Residential – General Rate Revenue Increase 4.5% 4.5% 4.0% 3.5% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5%

Non-Residential – General Rate Revenue Increase 4.5% 4.5% 4.0% 3.5% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5%

General – Rate Revenue Increase Net (excl growth) 4.5% 4.5% 4.0% 3.5% 3.0% 2.5% 2.5% 2.5% 2.5% 2.5%

Natural Growth – Development 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Separate Rate – The REX Ended - 2014-15

CWMS – Rate revenue Increase (excl growth) 2.0% 2.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.0% 3.0%

Waste Services – Rate Revenue Increase (excl growth) 5.0% 6.5% 6.5% 5.5% 3.5% 3.0% 2.5% 2.5% 2.5% 2.5%

OPERATING REVENUE

Operating Grants 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Statutory Charges 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

User Charges 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Investment Income 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Reimbursements 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Other Revenue 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

OPERATING EXPENDITURE

Service Cost Natural Growth** 0.5% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

Employee Costs 3.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Contracts, Materials & Other 2.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% Power Costs 2.0% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Water Costs 1.1% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Insurance 5.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%

ASSET REVALUATION INCREMENTS

Land Assets 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%

Building Assets 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3%

Recreation Assets 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Infrastructure Assets 1.5% 1.5% 1.5% 1.5% 1.5% 2.0% 2.0% 2.0% 2.0% 2.0%

CWMS 2.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%

Stormwater Assets 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%

* All amounts in KPI 1 are in $’000 **Index added to Employee Costs and Contracts, Materials & Other


A2-1 Consolidated Results: Budgeted Income Statement OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 REVENUES Rates 27,206 28,677 30,136 31,527 32,809 33,998 35,218 36,482 37,775 39,114 Statutory Charges 626 639 652 665 678 692 705 720 734 749 User Charges 2,667 2,796 2,892 2,986 3,061 3,138 3,219 3,301 3,387 3,412 Grants, subsidies and contributions 2,870 2,595 2,620 2,666 2,713 2,760 2,809 2,859 2,909 2,961 Investment Income 213 92 56 60 54 65 77 145 185 197 Reimbursements 514 524 534 545 556 567 578 590 602 614 Other Income 540 552 563 574 586 597 609 622 634 647 Net Gain – Joint Venture 0 0 0 0 0 0 0 0 0 0 TOTAL INCOME 34,636 35,875 37,453 39,023 40,457 41,817 43,215 44,719 46,226 47,694 EXPENSES

Employee Costs 12,190 12,571 13,037 13,497 13,965 14,451 14,953 15,472 16,010 16,541 Materials, Contracts & Other Expenses 13,897 14,318 14,980 15,438 15,952 16,606 17,267 17,509 18,149 18,610 Depreciation, Amortisation & Impairment 7,254 7,941 8,278 8,702 9,122 9,564 10,035 10,487 10,948 11,410 Finance Costs 1,150 1,045 932 804 677 556 441 363 306 165 Net Gain – Joint Venture 0 0 0 0 0 0 0 0 0 0 TOTAL EXPENSES 34,491 35,875 37,227 38,441 39,716 41,177 42,696 43,831 45,413 46,726 OPERATING SURPLUS / (DEFICIT) 145 0 226 582 741 640 519 888 813 968 Asset disposal & fair value adjustments (645) (547) (547) (604) (643) (674) (705) (757) (776) (817) Amounts specifically for new or upgraded assets 1,202 282 336 350 442 152 157 163 170 176 Physical Resources received free of charge 100 1,846 1,594 1,640 1,692 1,744 1,797 1,850 1,904 1,959 Operating result from discontinued operations NET SURPLUS / (DEFICIT) 802 1,581 1,609 1,968 2,232 1,862 1,768 2,144 2,111 2,286 Transfer to Equity Statement Other Comprehensive Income Changes in revaluation surplus – infrastructure, property. Plant & equipment

- - - - - - - - - -

Total Other Comprehensive Income 0 0 0 0 0 0 0 0 0 0 TOTAL COMPREHENSIVE INCOME 802 1,581 1,609 1,968 2,232 1,862 1,768 2,144 2,111 2,286


A2-2 Consolidated Results: Budgeted Balance Sheet OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 ASSETS Current Assets Cash and cash equivalents 1,864 983 730 443 541 669 1,408 3,307 5,281 5,342 Trade & other receivables 2,956 2,956 2,956 2,956 2,956 2,956 2,956 2,956 2,956 2,956 Other financial assets 7 7 7 7 7 7 7 7 7 7 Inventories 129 129 129 129 129 129 129 129 129 129

4,956 4,075 3,822 3,535 3,633 3,761 4,500 6,399 8,373 8,434 Non-Current Assets held for Sale 0 0 0 0 0 0 0 0 0 0

Total Current Assets 4,956 4,075 3,822 3,535 3,633 3,761 4,500 6,399 8,373 8,434 Non-Current Assets Financial Assets 642 642 642 642 642 642 642 642 642 642 Equity accounted investments in Council businesses 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 1,723 Infrastructure, Property, Plant & Equipment 302,829 310,952 318,913 327,099 335,450 343,704 351,881 359,991 368,418 376,636 Other Non-Current Assets 0 0 0 0 0 0 0 0 0 0

Total Non-Current Assets 305,194 313,317 321,278 329,464 337,815 346,069 354,246 362,356 370,783 379,001

TOTAL ASSETS 310,150 317,392 325,100 332,999 341,448 349,830 358,746 368,755 379,156 387,435 LIABILITIES Current Liabilities Trade & other payables 3,124 3,112 3,115 3,110 3,110 3,122 3,143 3,176 3,219 3,253 Borrowings 1,997 2,046 1,817 1,720 1,623 1,195 668 703 3,244 306 Provisions 2,410 2,415 2,420 2,425 2,431 2,437 2,443 2,449 2,455 2,461

Total Current Liabilities 7,531 7,573 7,352 7,255 7,164 6,754 6,254 6,328 8,918 6,020 Non-Current Liabilities Trade & other payables 0 0 0 0 0 0 0 0 0 0 Borrowings (External) 13,615 11,765 10,416 8,574 6,811 5,457 4,611 3,708 500 259 Provisions 650 650 650 650 650 650 650 650 650 650

Total Non-Current Liabilities 14,265 12,415 11,066 9,224 7,461 6,107 5,261 4,358 1,150 909 TOTAL LIABILITIES 21,796 19,988 18,418 16,479 14,625 12,861 11,515 10,686 10,068 6,929 NET ASSETS 288,354 297,404 306,682 316,520 326,823 336,969 347,231 358,069 369,088 380,506

EQUITY Accumulated Surplus 63,066 64,542 66,281 68,400 70,589 72,559 73,645 75,250 77,098 78,533 Asset Revaluation Reserve 220,037 227,506 235,175 243,045 251,116 259,400 267,894 276,588 285,496 294,628 Other Reserves 5,251 5,356 5,226 5,075 5,118 5,010 5,692 6,231 6,494 7,345 TOTAL EQUITY 288,354 297,404 306,682 316,520 326,823 336,969 347,231 358,069 369,088 380,506


A2-3 Consolidated Results: Budgeted Statement of Cash Flows OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts: Operating Receipts 34,423 35,782 37,397 38,963 40,403 41,752 43,138 44,573 46,041 47,497 Investment Receipts 213 92 56 60 54 65 77 145 185 197 Payments: Operating Payments to Suppliers & Employees (26,085) (26,884) (28,012) (28,930) (29,912) (31,051) (32,214) (32,975) (34,152) (35,145) Finance Payments (1,150) (1,045) (932) (804) (677) (556) (441) (363) (306) (165)

Net Cash Provided by (or used in) Operating Activities 7,401 7,945 8,509 9,289 9,868 10,210 10,560 11,380 11,768 12,384

CASH FLOW FROM INVESTING ACTIVITIES Receipts: Amounts Specifically for New or Upgraded Assets 1,202 282 336 350 442 152 157 163 170 176 Sale of Replaced Assets 262 487 293 474 553 524 646 788 664 737 Sale of Surplus Assets 0 0 0 0 0 0 0 0 0 0 Net Return of Investment Securities 0 0 0 0 0 0 0 0 0 0 Repayment of Loans by Community Groups 0 0 0 0 0 0 0 0 0 0 Payments: Expenditure on Renewal/Replacement of Assets (5,431) (5,137) (4,839) (5,833) (6,321) (6,196) (7,444) (7,440) (7,459) (7,840) Expenditure on New/Upgraded Assets (4,628) (2,663) (2,980) (2,634) (2,590) (2,787) (1,813) (2,131) (2,509) (2,217) Net Purchases of Investment Securities 0 0 0 0 0 0 0 0 0 0 Loans Made to Community groups 0 0 0 0 0 0 0 0 0 0

Net Cash Provided by (or used in) Investment Activities (8,595) (7,031) (7,190) (7,643) (7,916) (8,307) (8,454) (8,620) (9,134) (9,144)

CASH FLOWS FROM FINANCING ACTIVITIES Receipts: Proceeds from Borrowings 297 137 409 0 0 0 0 0 0 0 Proceeds from internal Borrowings (NCPA) 0 0 0 0 0 0 0 0 0 0 Proceeds from internal Borrowings (CWMS) 2,150 800 0 15 0 0 0 0 0 0 Payments: Repayment of Borrowings (1,811) (1,932) (1,981) (1,933) (1,854) (1,775) (1,367) (861) (660) (3,179) Repayment of Finance Lease 0 0 0 0 0 0 0 0 0 0 Repayment of Internal Borrowings (CWMS) (2,150) (800) 0 (15) 0 0 0 0 0 0 Repayment of internal borrowings (NCPA) 0 0 0 0 0 0 0 0 0 0

Net Cash Provided by (or used in) Financing Activities (1,514) (1,795) (1,572) (1,933) (1,854) (1,775) (1,367) (861) (660) (3,179)

Net Increase (Decrease) in Cash held (2,708) (881) (253) (287) 98 128 739 1,899 1,974 61 Cash at beginning of Period 4,572 1,864 983 730 443 541 669 1,408 3,307 5,281 CASH AT END OF PERIOD 1,864 983 730 443 541 669 1,408 3,307 5,281 5,342


A2-4 Consolidated Results: Uniform Presentation of Finances OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 Operating Revenues 34,636 35,875 37,453 39,023 40,457 41,817 43,215 44,719 46,226 47,694 Less Operating Expenses (34,491) (35,875) (37,227) (38,441) (39,716) (41,177) (42,696) (43,831) (45,413) (46,726)

Operating Surplus / (Deficit) 145 0 226 582 741 640 519 888 813 968

Less Net Outlays on Existing Assets Capital Expenditures on Renewal and Replacement of Existing Assets

5,431 5,137 4,839 5,833 6,321 6,196 7,444 7,440 7,459 7,840

Less Depreciation, Amortisation and Impairment (7,254) (7,941) (8,278) (8,702) (9,122) (9,564) (10,035) (10,487) (10,948) (11,410) Less Proceeds from Sale of Replaced Assets (262) (487) (293) (474) (553) (524) (646) (788) (664) (737)

(2,085) (3,291) (3,732) (3,343) (3,354) (3,892) (3,237) (3,835) (4,153) (4,307)

Less Net Outlays on new and Upgraded Assets Capital Expenditure on New and Upgraded Assets 4,628 2,663 2,980 2,634 2,590 2,787 1,813 2,131 2,509 2,217 Less Amounts Received Specifically for New and Upgraded Assets

(1,202) (282) (336) (350) (442) (152) (157) (163) (170) (176)

Less Proceeds from Sale of Surplus Assets 0 0 0 0 0 0 0 0 0 0

3,426 2,381 2,644 2,284 2,148 2,635 1,656 1,968 2,339 2,041 Net Lending / (Borrowing) for Financial Year (1,196) 910 1,314 1,641 1,947 1,897 2,100 2,755 2,627 3,234


A3 Consolidated Results: Budgeted Capital Expenditure OB = Original Budget; LTFP = Long term Financial Plan 2015-16

LTFP $’000

2016-17 LTFP

$’000

2017-18 LTFP

$’000

2018-19 LTFP

$’000

2019-20 LTFP

$’000

2020-21 LTFP

$’000

2021-22 LTFP

$’000

2022-23 LTFP

$’000

2023-24 LTFP

$’000

2024-25 LTFP

$’000 Renewal/Replacement Capital Summary: Non-Discretionary Land 0 0 0 0 0 0 0 0 0 0 Buildings 203 253 293 259 263 266 569 579 690 700 Recreation 842 30 30 30 30 30 30 30 30 30 Transport – Roads & Footpaths 2,869 3,107 3,262 3,361 3,594 3,773 3,961 4,158 4,365 4,582 Stormwater, Bridges & Floodplain 122 0 300 17 392 0 300 300 300 300 CWMS 169 228 104 143 99 101 157 157 101 101 Equipment – Plant & Vehicles 1,226 1,519 850 2,023 1,943 2,026 2,427 2,216 1,973 2,127 Other Assets – Inc. Library books 0 0 0 0 0 0 0 0 0 0

Note: includes internal allocations 5,431 5,137 4,839 5,833 6,321 6,196 7,444 7,440 7,459 7,840

New/Upgrade Capital Summary: Discretionary Land 0 0 0 0 0 0 0 0 0 0 Buildings (Inc. Discretionary spend $350k per year) 876 674 884 350 350 350 500 500 500 700 Recreation 766 70 70 70 70 70 70 70 70 70 Transport – Roads & Footpaths 1,161 80 80 204 215 221 228 236 243 252 Stormwater, Bridges & Floodplain 491 936 641 615 660 701 320 330 250 250 CWMS 1,298 1,420 1,535 1,643 1,559 1,725 993 1,307 1,774 1,293 Equipment – Plant & Vehicles 36 0 2 0 0 0 0 0 0 0 Other Assets 0 0 0 0 0 0 0 0 0 0

Note: including donated assets 4,628 3,180 3,212 2,882 2,854 3,067 2,111 2,443 2,837 2,565

TOTAL CAPITAL EXPENDITURE 10,059 8,317 8,051 8,715 9,175 9,263 9,555 9,883 10,296 10,405

2015/171

The Barossa Council Minutes of Special Council Meeting held on Wednesday 3 June 2015

MINUTES OF THE SPECIAL MEETING

OF THE BAROSSA COUNCIL held on Wednesday 3 June 2015, commencing at 5.00pm

in the Council Chambers, 43-51 Tanunda Road, Nuriootpa

1.1 WELCOME Mayor Sloane declared the meeting open at 5.00pm. 1.2 MEMBERS PRESENT Mayor Bob Sloane, Crs Leonie Boothby, Mark Grossman, Michael (Bim) Lange, Scotty Milne, Michael Seager, Richard Miller and Christopher Harms (5.01pm)

1.3 LEAVE OF ABSENCE Nil

1.4 APOLOGIES Cr Margaret Harris Cr John Angas Cr Dave de Vries Cr Tony Hurn

2. DEBATE AGENDA 2.1 FINANCE – DEBATE

2.1.1 2015/16 – 2024/25 LONG TERM FINANCIAL PLAN AND 2015/16 ANNUAL BUDGET AND BUSINESS PLAN B345

MOVED Cr Milne that Council endorse:

(1) The draft Annual Budget and Business Plan 2015/16 incorporating the annual review of the draft Long Term Financial Plan for the period 2015/16 to 2024/25 for the purpose of community consultation and authorise the Chief Executive Officer to make minor changes to the document, in consultation with the Mayor prior to its release, including the removal, for future clarification of the anticipated resealed road program for 2015-16.

(2) The consultation period being from 10 June 2015 to 30 June 2015 and that an

allowance of one hour be made at the Council Meeting 16 June 2015 for verbal submissions in response to public consultation, commencing at 10 am.

Seconded Cr Miller

2015/172


Discussion ensued on the matter with the following amendments to be made to the document:

1. Page 15 – Building Assets – change ‘Tanunda Recreation Park Poultry Pavilion – Replace Iron Sheeting to ‘Tanunda Recreation Park – Minor Shed Upgrade’;

2. Page 15 – Bridges, Floodways and Major Culverts – change ‘Seiboths Road, Eden Valley Bridge Replacement to Guardrails’ to ‘Minor Bridge Replacement and Guardrails’;

3. Page 16 – Stormwater Drainage – change ‘Nuriootpa – Greenock Road – Open Drain Upgrade’ and ‘Nuriootpa – Old Kapunda Road – Open Drain Upgrade’ to one line of $180K and titled ‘Nuriootpa Stormwater Management Study’.

4. Page 16 – Stormwater Drainage – change ‘Concordia – Kalbeeba Drainage’ to ‘Kalbeeba Drainage’.

5. Page 18 – Anticipated Resealed Road Program for 2015-16 – remove table and leave the following line: ‘Council is further reviewing the program for the 2015-16 resealed road program priorities in their entirety – details of the $1.1M program will be approved once this further review is completed’.

6. Page 28 – Operating expenditure pie charts – the tabled adjusted charts replace those in the draft document.

Cr Lange requested Council to consider borrowing funds to undertake a sealing reconstruction of Frederick Street, Lyndoch. This request will be further assessed during the consultation phase as to road priorities and service levels against all other priorities and the budget impact and reported back to Council as part of considering consultation submissions. The motion was put and CARRIED 2014-18/266 INTRODUCTION Further to the recent Budget/Rating Workshops, the draft Annual Budget and Business Plan 2015/16 incorporating the Long Term Financial Plan 2015/16 to 2024/25 has been prepared for public consultation. COMMENT The Annual Budget and Business Plan (AB&BP) 2015/16 incorporates the Long Term Financial Plan (LTFP) 2015/16 to 2024/25 in the one document but under separate sections. The financial information has been prepared in accordance with the Council Budget and Rating workshops held in the last few months. All strategic parameters and indexation as discussed have been used in the calculation of the financial reports and statements. The draft budget incorporates the base budget, corporate and other new initiatives as discussed and presented at the Council workshop held on the 19 May 2015 along with items discussed for inclusion and or removal as follows: Capital budget items: Added - Recreation parks – ovals $1m (allocated to both renewal/replacement and new/upgrade asset work for major ovals), Stockwell oval – re-establish second oval $345k (grant/other funding requirement $230k – project will not proceed without grant funding), Tanunda Recreation Park Oval lighting upgrade $200k (contributions requirement $100k – project will not proceed without third party contributions and a full due diligence report to be assessed), Tanunda main street works design $50k, Footpaths acceleration of renewal and upgrade work $355k, Williamstown QVJP court resurfacing $45k (grant/other funding requirement $32k), Tanunda Show Hall Lighting Replacement $30k, Curdnatta Park - Kitchen renewal $11k, Curdnatta Park - Retaining Wall $10k, Full phased Air Cooling Solution - The Rex Stadia Option 2 $227k (contribution funding $22k), Jack Bobridge Track Cycle Connection $50k and new sealing works $300k (transferred from reseal).

2015/173


Reduction - resealing works $300k (transferred to new seal). Operating budget items: (Unless otherwise shown all are one-off entries for 15/16) as follows: Added - AMG - Railway Station Master Plan $5k, Redefining Community Committees - Incorporation and Insurance Costs $7.5k*, Redefining Community Committees - Initial startup cash float from reserve $38k, Redefining Community Committees - ongoing Accounting and Insurance Costs $5k*, Redefining Community Committees - Reserve Funds $100k*, Street Tree Planting Budget Increase $25k ($25k in 16-17, $50k in 17-18 and $30k ongoing in the LTFP), Feasibility study on Southern Barossa Sport and Recreation sporting hub and Williamstown future use study $25k and Gawler to Tanunda Bike Path maintenance $63k. *Funding period - three years or relevant Committee reserve extinguished – whatever comes first. Other items were further assessed and then reduced/removed by the Corporate Management Team as follows: Capital - CWMS (Community Wastewater Management Systems) Rising Main Duplication Williamstown $400k (estimate now $1.1m not $1.5m) and CWMS Tanunda Class B Reuse Plant $320k, Plant and Equipment (net of proceeds) $654k, Drainage upgrade Para Road, Tanunda $150k, bridge upgrade general works $100k and Nuriootpa Office air-conditioning renewal program $35k. Operating – a further comprehensive review was undertaken to the base budget with an increase to income for workers compensation rebate and income for insurance claims and a reduction to various expenditure lines, finding overall savings of approximately $350k. To ensure alignment to the long term financial plan requirements of a total general rate revenue increase of 4.5% (plus growth, currently at 1.74%), a small reduction in the rates in the dollar has been made to all land use codes to amounts presented at the Council workshop held on 19 May 2015. The total general rate revenue amount remains the same but the increase for individual ratepayers will be slightly less than was presented at the workshop, due to changes to land use codes during the last few weeks. A delay has been made for the purchase of selected plant and equipment expenditure in the years 2016/17, 2017/18 and 2018/19 to the year 2021/22 to remain in a net positive cash position. A full analysis of life cycle costs on major plant and equipment will be carried out in 2015/16 with a view to reallocate the program over a longer life cycle and thus generating overall budget savings. The changes including the savings made will allow Council to deliver the accelerated community infrastructure program in 2015/16 of approximately $1.8m without additional borrowings and has positioned the operating budget for a slight surplus. The changes to the base budget and its impacts on the long term financial plan, subject to working within the current estimates, will return a slight operating budget surplus and returns future years discretionary funds, an estimated reduction in general rate increases from 4.5% in 2014/15 scaling back to 2.5% in 2020/21, whilst meeting long term asset plans and service levels as they currently stand as set by Council.

Other operating income and expenditure indexation for future years in the LTFP has been reduced to reflect the current cost of services. The LTFP is incorporated with the AB&BP process to ensure the two Plans align, as the AB&BP represents the first year in the LTFP. Preparing the two Plans concurrently enables the community to be involved in the short and long term planning of Council’s Budget. The public consultation period will commence from 10 June 2015 and closes on 30 June 2015. Verbal submissions will be considered at the Council meeting on 16 June 2015. Public submissions will be considered by Council at a special meeting to be held following the consultation period. The adoption of the Budget is due to be held in the first week in July (date to be confirmed). LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Local Government Act Local Government (Financial Management) Regulations 2011 - Reg 9(1)(b) Annual Budget/Business Plan Policy

2015/174


FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS The adoption of the Budget is required between 1 June and 31 August 2015. In order to meet this time line, the Budget process, including the adoption of the draft document for public consultation purposes, is required to be underway in May. COMMUNITY CONSULTATION Detailed in the body of the Report. 3. NEXT MEETING Tuesday16 June 2015 at 9.00am 4. CLOSURE OF MEETING Mayor Sloane declared the meeting closed at 5.28pm.

Confirmed at Council Meeting – Tuesday 16 June 2015

Date:......................................... Mayor:...................................

AUDIT COMMITTEE


REPORT

24 JUNE 2015 7.1.2 BUDGET UPDATE (AS AT 31 MARCH 2015) B345 INTRODUCTION The Budget Update for 2014/15 (as at 31 March 2015) was presented to Council at its 19 May 2015 Council Meeting, and the budget variations contained therein were adopted. A copy of the document is provided in Attachment 1. RECOMMENDATION That the Budget Update for 2014/15 (as at 31 March 2015) be received.

COMMENT The report provides information as to the financial position of Council, containing budget update reports which include Executive Summary, Uniform Presentation of Finances, Key Performance Indicators, Summary of Operating Budget Variance Adjustments and Summary of Capital Budget Variance Adjustments. There are numerous variances between the original budget and this budget update. These are listed on the operating and capital budget adjustment pages 5 to 34.

The report also includes a quarterly review of the business units showing a high level financial report, new initiatives and capital expenditure. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN LEGISLATION: Local Government Act 1999 Local Government (Financial Management) Regulations 2011 COUNCIL STRATEGIC PLAN: 4.1 – Responsibility 4.3 – Systems

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Council to consider approving budget variations as included with the financial report.

COMMUNITY CONSULTATION Community Consultation was part of the original budget adoption process in June 2014, as per legislation. This report is advising Council of the quarterly finance position compared to that budget

Budget Update 2014-15 – as at 31 March 2015 | The Barossa Council | Page 1

Annual Budget and Business Plan

2014-15

Budget Update As at 31 March 2015

Executive Summary 2

Uniform Presentation of Finances 3

Key Performance Indicators 4

Summary of Operating Budget Variance Adjustments 5

Summary of Capital Budget Variance Adjustments 30

Statement of Comprehensive Income 35

Annual Business Plan Report

Executive Services 36

Corporate and Community Services 37

Development and Environmental Services 39

Works and Engineering Services 40

Nuriootpa Centennial Park Authority 42

Budget Update Report


Statements - Actual Report

Executive Summary

This report is the Budget Review as at 31 March 2015 for the 2014-15 financial year pursuant to Regulations 7, 9 and

10 of the Local Government (Financial Management) Regulations 2011 under the Act. Unless otherwise indicated

figures shown are for the 2014-15 financial year and the variance report comparison is actual to original budget.

The proposed Revised Budget adjustments include a number of ‘one-off’ variations shown as Favourable (F) or

Unfavourable (U). Only larger variances are highlighted for further details refer to variance adjustments, please refer

to pages 3 and 5-34 within this report for further information on the note number:

(1-7) Development Application Fees reduced $26k (U); Reduced Caravan park income $101k (U); Electricity on-

charges to the REX now direct $249k (U). Net $120k (U)

(8-11) Roadside slashing extra $47k (U); Waste collection cost less than expected $40k (F); extra Roadside tree

trimming $151k (U); extra Road seal linemarking $54k (U); Reduction to building maintenance $36k (F)

additional pipe/drain/culvert cleaning and repairs $157k (U); extra footpath repairs $125k (U); roads grading

and road shoulders $119k (U); Road Shoulder works transferred to capital $150k (F); sealed roads patching

$260k (U); Saving for plan amendments not spent $59k (F); Electricity on-charges to the REX now direct

$255k (F); CWMS electricity costs reduced $45k (F); Recovery charges to Capital expenditure $ 96k (F);

Depreciation for bike path and road seals increases $173k (U) . Net $4k (U)

(12) Tanunda Tennis and Netball Courts $115k (U); Risk Management/Corporate Reporting software c/fwd to

2015/16 $73k (F); Additional Resheeting works $292 (U); Resheeting works deferred to 2015/16 $55K (F);

Road Shoulder works transferred from Operating $150k (U); Allendale Road drainage project overspend

$100k (U); Transfer from Capital Buildings to Operating $73k (F). Net $395k (U)

(13) Nuriootpa Centennial Park Authority Games Room, Kitchen upgrade, Roadways and Kerbing c/fwd to

2015/16 $212k (F); CWMS projects not required $76k (F); Road Drain, Murray Street, Tanunda project not

commenced $200k (F); Road Drain, Kalbeeba Road, Concordia c/fwd to 2015/16 $98 (F); Depot Concrete Bulk

Bays not budgeted $61k (U); Angaston Streetscaping c/fwd to 2015/16 $40k (F). Net $563k (F)

(14) Flood Mitigation Works recovery $15k (F); Tanunda Tennis and Netball Courts capital contribution for rubble

$22k (F). Net $37k (F)

Long Term Financial Plan (LTFP) - Review

Since the adoption of the Budget, Council has made decisions on projects that have material financial implications not

only for the 2014-15 year (these are included within the yearly budget wherever possible) but also may affect the

longer term. In some cases not all information is available for these projects and therefore is not included in the

budget review. The following list is a summary of these types of projects:

� A review of the Council’s Asset condition, useful and remaining lives to more accurately reflect the actual service

needs and consumption of the assets will continue. It is expected that Council’s understanding and management of

this important function will potentially improve the operating result in the LTFP.

� A higher than expected amount was received in 2014-15 for the Federal Financial Assistance Grant Income. It is

probable but not known if this increased amount will continue and improve the operating position in the ensuing

years.

� Council approved in principle support for the gifting of Council owned land at Newcastle Street, Angaston; as this

land was identified as a surplus asset if approved a reduction in cash received will result.

� Forward projections for rate income in the plan did not anticipate the large valuation objection processed this year

and therefore the future net rate income is currently overstated by $30k.

� Any savings from the Regional procurement program to offset cost for the shared resource is yet to be specifically

identified and recognised.

� Extra costs to the plan to implement the Redefining Community Committees Project as approved by Council August

2014.

� Budget adjustment reviews have been submitted to incorporate additional expenditure for the current year –

whether these service adjustments have a long term effect is unknown at this stage.


Uniform Presentation of Finances

Note

Original

Full year

Budget

$’000

Actuals as

at 31 Mar

$’000

Full- year

Revised

Budget in

last Update

$’000

Variance OB

to RB

$’000

Proposed

Full- year

Revised

Budget

$’000

Current Full-

year Revised

Forecast

$’000

OPERATING ACTIVITIES:

Operating Income 1-5 33,634 31,782 33,931 (120) 33,811 33,811

Less Operating Expenses 6-8 33,573 24,354 33,929 (5) 33,934 33,934

Operating Surplus (Deficit) (a) 61 7,428 2 (125) (123) (123)

Less Net Outlays on Existing Assets

Capital Expenditure on Renewal and

Replacement of existing assets 9 4,819 4,460 6,430 395 6,825 6,825

Less Depreciation, Amortisation and

Impairment 8 6,682 4,959 6,612 173 6,785 6,785

Less Proceeds from Sale of Replaced

Assets 10 595 786 933 - 933 933

Net Outlays on Existing Assets (b) (2,458) (1,285) (1,115) 222 (893) (893)

Less Net Outlays on New and

Upgraded Assets

Capital Expenditure on New and

Upgraded assets 11 1,864 1,180 3,494 (563) 2,931 2,931

Less Amounts received specifically for

New and Upgraded Assets 12 612 628 696 37 733 733

Less Proceeds from Sale of Surplus

Assets - 145 566 - 566 566

Net Outlays on Existing Assets (c) 1,252 407 2,232 (600) 1,632 1,632

Net Lending / (Borrowing) (a) - (b)-

(c)

1,267 8,306 (1,115) 253 (862) (862)

Funding Source for the movement in Net Lending / (Borrowing)

Original Full year Budget Net Lending / (Borrowing)

$’000

1,267

Carried Forward Budget Adjustments – Report on Financial Results.

Funds were held for these projects in cash and investments at 30 June

2014

(2,283)

Other Budget Adjustments - September Budget Update. Funds

required for these items will decrease Councils cash and investments.

This amount includes amendments approved at the Council meeting

held August 2014; refer to information on Budget Variance

Adjustments within this report.

(19)

Budget Adjustments - December Mid-year Budget Review. Funds

required for these items will decrease Councils cash and investments (80)

Budget Adjustments - March Budget Update. Funds required for these

items will decrease Councils cash and investments 253

Proposed Full- year Revised Budget -

Net Lending / (Borrowing)

(862)


Key Performance Indicators (KPI)

Key Performance Indicators (KPI) Original Budget

30 June 15

Revised Budget

30 June 15

Operating Surplus / (Deficit) ($’000)

61 (123)

Target To achieve an operating breakeven position, or better, over any five year period.

Notes Operating Surplus decreased as a result of the increase to operating costs. Carried forward items of $211k

from last year are included in this result.

Operating Surplus Ratio (0.05%) 0.15%

Target To achieve an operating surplus ratio of between -2% to 10, over a rolling 3 year period.

Notes The ratio is improved marginally due to the adjustments made as listed within this document. Council’s long

term financial plan is to return to a surplus position. In order to achieve this, savings will be identified with

reports and recommendations to Council to reduce expenditure and/or improve income. The revised budget

ratio includes last year’s actual results.

Net Financial Liabilities ($’000) 16,800 N/A

Target Council's level of net financial liabilities is no greater than its annual operating revenue and not less than

zero.

Notes This KPI has not been provided for this review

Net Financial Liabilities Ratio 50% N/A

Target Net financial liabilities ratio is greater than zero but less than 100% of total operating revenue.

Notes This KPI has not been provided for this review

Interest Cover Ratio 3.1% 2.9%

Target Net interest is greater than 0% and less than 8% of operating revenue.

Notes No major changes on this ratio.

Asset Sustainability Ratio* 95% 103%

Target Capital outlays on renewing/replacing assets net of proceeds from sale of replaced assets is greater than

80% but less than 110% of Infrastructure Asset Management Plans (previously Depreciation) over a rolling 3

year period.

Notes Expenditure on Renewal & Replacement Assets has increased as a result of projects carried forward from last

year.

*The Asset Sustainability Ratio is now using planned expenditure data from the Councils Infrastructure and

Asset Management Plans (IAMP). Council IAMP’s have been revised where information on planned

expenditure has not been included depreciation for that asset class/portfolio has been included. For the

2014-15 year an amount of $4,419k has been used for this calculation for planned expenditure.

Summary of Operating Budget Variance Adjustments

Business Unit Type of

Adjustment

Adjustment Title Reason for Budget Adjustment/Carried Forward Adjustment $

Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Operating Adjustments

Corporate and

Community Services

Transfer Large Valuation objection for Angas Park

Fruit

Large Valuation objection for the Angas Park Fruit premises in Angaston - Q2

adjustment put to incorrect account

0 0

Corporate and

Community Services

Addition Land use amendments Unlikely for more Land use amendments 5,000 5,000

Corporate and

Community Services

Addition Discretionary Rebates 100% rebate approved for Nuriootpa Futures Association - Assessment No 201230

and 201498

(4,000) (4,000)

Note 1 1,000

Development and

Environmental Services

Reduction Inspection fees reduce income. No inspections anticipated this year. (453) (453)

Development and


Reduction Development Application Fees Estimated number of applications appears to be trending downwards - indicating

reduced income from fees

(26,400) (26,400)

Development and


Addition Increase in Income Increase in Income - Dog Registration Fees 3,000 3,000

Development and


Reduction Reduction in income - Parking Expiations Reduction in income - Parking Expiations (1,000) (1,000)

Development and


Addition Increase in Income Increase in Income - Dog Expiations 1,000 1,000

Development and


Addition Additional food auditing fees income. Additional audits unforseen. 1,000 1,000

Note 2 (22,853)

Works and Engineering

Services

Addition Additional cemetery fees income Additional cemetery fees income 2,000 2,000


Services

Addition Additional cemetery plaques income Additional cemetery plaques income 2,800 2,800


Services

Addition Additional lease fees Heinemann Park Additional lease fees Heinemann Park 500 500


Services

Addition Additional income lease fees Additional income lease fees - phone towers 4,095 4,095

Corporate and

Community Services

Addition Bike hub activities Income expected from Bike hub activities 2,856 2,856

Nuriootpa Centennial

Park Authority

Reduction NCPA - Rec Park Fees NCPA - Forecast reduction in Recreation Park fee income (15,000) (15,000)

Corporate and

Community Services

Reduction Car client contributions Revenue less than anticipated (7,500) (7,500)

Corporate and

Community Services

Addition Admin - Chamber Income Additional Income 600 600


Park Authority

Addition NCPA - Sports Centre User Charges NCPA - Sports Centre user charges not on original budget 15,000 15,000

Development and


Addition Additional Income Additional Income - Cage hire fees 260 260

Corporate and

Community Services

Addition Budget adjustment Increase in Market revenue 1,754 1,754

Corporate and

Community Services

Addition Bike hub activities Income expected from Bike hub activities 400 400

Corporate and

Community Services

Addition WQVJP - Extra Income Caravan Park fees trending higher than predicted. 20,000 20,000

Budget Update - as at 31 March 2015 | The Barossa Council | Page 5



Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services



Park Authority

Addition NCPA - Caravan Park Site Fees NCPA - Caravan Park Site Fees - forecast increase in site fees 20,000 20,000

Corporate and

Community Services



Park Authority

Reduction NCPA - Caravan Park Cabin Fees NCPA - Caravan Park Cabin Fees - forecast reduction in cabin fees due to delay in

replacement of cabins

(170,563) (170,563)

Corporate and

Community Services

Addition WQVJP - Extra Income Caravan Park fees trending higher than predicted. 800 800


Park Authority

Addition NCPA - Caravan Park Other Income NCPA - Caravan Park Other Income - forecast increase in other income 7,000 7,000

Corporate and

Community Services

Reduction Friends of Bushgardens contribution Budget adjustment was incorrectly recorded in Q1 (20,745) (20,745)

Corporate and

Community Services

Addition Budget adjustment Increase in souvenir sales 4,000 4,000

Corporate and

Community Services

Reduction Budget adjustment Decrease in income (now running through BookEasy) (2,467) (2,467)

Note 3 (104,210)

Corporate and

Community Services

Transfer DCSI / HACC Income Reallocate budget - Incorrect coding 0 0

Corporate and

Community Services

Reduction Other Income Reallocate budget (3,400) (3,400)

Corporate and

Community Services

Addition Post School Options income Increase in income due to additional group members and higher than expected CPI

increase

20,000 20,000

Executive Services Addition Local Emergency Management Project Project approved by Council February 2014 resolution number 2014-18/169. 22,000 22,000

Executive Services Addition Regional Secretariat Project Regional investigation project solely funded through LGA R&D Grant. 2,500 2,500

Corporate and

Community Services

Carried Fwd ICAN GRANT ICAN Grant will not be completed until November 2015 as it will run for two terms

with Nuriootpa High School. Carry forward Remaining income at 30 June

(7,000) (7,000)


Services

Carried Fwd Angaston Railway Precinct Upgrade

funding-income

Angaston Railway Precinct Upgrade funding - operating income - Payment received

in advance from 13/14 (14/15)

(21,499) (21,499)

Note 4 12,601

Corporate and

Community Services

Reduction Reduce interest income LGFA Reduce interest income LGFA - reduction in interest rates (4,000) (4,000)

Corporate and

Community Services

Addition Increase bank interest income Increase bank interest income 11,000 11,000

Note 5 7,000

Development and


Reduction Reduction in block slashing expenditure -

Not required

Reduction in block slashing expenditure - Not required. Refer reduction in income. (2,000) (2,000)

Development and


Addition European wasp fund income. Additional nest notifications for the year. 2,250 2,250

Executive Services Addition Shared Procurement Initiative As per report to Council December 2014 resolution number 2014-18/71. 25,266 25,266

Corporate and

Community Services

Reduction Adjustment direct billing of Electricity

Belgravia

Previous arrangement of Council payment and oncharge to Belgravia adjusted with

bills being sent direct to Belgravia for settlement on receipt by Council

(249,293) (249,293)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net


Services

Addition Reimbursement from TX Australia Reimbursement from TX Australia for works at Angaston TV Tower 6,435 6,435

Executive Services Addition Income Received From Other Councils -

Facet5's

Income Received From Other Councils - Facet5's. Council has been conducting

Facet5's on behalf of The Town of Gawler and D.C of Mallala as apart of the Shared

Services Agreement.

1,950 1,950

Executive Services Addition OD/HR Service Additional Revenue Generated from OD/HR Service 3,300 3,300


Services

Addition Budget adjustment Atze Parade footpath income 7,040 7,040

Corporate and

Community Services

Reduction Budget adjustment Decrease income - library now taking photocopy income (700) (700)

Note 6 (205,752)

Executive Services Addition Risk Services - Additional Revenue Additional revenue from reimbursements. 340 340

Corporate and

Community Services

Reduction Workers Comp Rebate Scheme Rebate higher than expected 20,061 20,061

Corporate and

Community Services

Reduction Workers Comp Rebate Scheme Rebate higher than expected 2,182 2,182

Corporate and

Community Services

Addition Car service contribution other councils Revenue greater than anticipated 567 567

Executive Services Addition Local Emergency Management Project Project approved by Council February 2014 resolution number 2014-18/169. 22,500 22,500

Corporate and

Community Services

Addition Income for septic tank CWA/bike hub Income received towards costs of new septic tank required for CWA/bike hub - not

capital

1,045 1,045

Development and


Addition Funding from Friends of the

Bushgardens

Funding from friends of the Bushgardens re storage shed 22,100 22,100

Development and


Addition Funding received from friends of the

Bushgardens

Funding received from Friends of the Bushgardens - part for storage shed, part for

Nursery project

5,000 5,000

Corporate and

Community Services

Addition Car service donations Revenue greater than anticipated 3,000 3,000

Corporate and

Community Services

Reduction Friends Donations Over estimated donations for 14/15, Provided funds for Lyndoch in June 2014

therefore less for 14/15

(2,000) (2,000)

Corporate and

Community Services

Addition Bike hub activities Bike hub activities 2,800 2,800

Corporate and

Community Services

Addition Budget adjustment Increase in commissions revenue 6,700 6,700

Corporate and

Community Services

Addition Budget adjustment Increase in Sealink commissions 2,500 2,500

Corporate and

Community Services

Addition Other Income Reallocate budget 3,400 3,400

Corporate and

Community Services

Addition Youth Bus - Data Plan Reimbursement -

Revenue

Council has agreed to include the Barossa Lower North Futures Youth Bus Data

Plan within Councils sharable data pool and Telstra Acct. This will be a nil impact for

Council as we will be reimbursed the full costs of the Youth Bus Data Plan ($130 per

month). This adjustment is to record the revenue we will receive upon

reimbursement of the Youth Bus expense.

390 390

Executive Services Addition Risk Services - Additional Revenue Additional revenue from insurance reimbursements 19,000 19,000

Executive Services Addition Risk Services - Additional Revenue Additional revenue from increased bonus payment than anticipated. 1,500 1,500




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Development and


Addition Water usage on-charged Water usage charged to Upper Torrens Land Management - Budget Adjustment also

for additional expenditure

10,000 10,000

Development and


Transfer Distribution of income generated by NRC

activities

Reallocation of budget 2,930 2,930


Services

Addition CWA hall income for 50% insurance

costs

CWA hall income for 50% insurance costs 445 445

Corporate and

Community Services

Reduction Decrease in Workshop income for

financial year

There has been a decrease in both workshops and workshop funding for this

financial year, adjustment to reflect this

(2,000) (2,000)


Services

Transfer Income & Expenditure transfer - cost

neutral

Kalimna Road - North Para River Drainage finished surface remediation works 995 995


Services

Addition Budget adjustment Developer contributions 20,000 20,000


Services

Addition Budget adjustment Road reserve sale 18,000 18,000

Corporate and

Community Services

Addition Budget adjustment Increase income - BGWA contribution septic tank lid & paving 5,622 5,622

Corporate and

Community Services

Addition Budget adjustment Increase in staff contributions towards increased expenses - Tourism awards 422 422

Corporate and

Community Services

Addition Legal costs recovered income Legal costs recovered income - debtors 171 171


Services

Addition Additional diesel fuel rebate income Additional diesel fuel rebate income received estimate to 30 June 24,280 24,280

Executive Services Addition Executive Services - Minor adjustment Minor adjustment to match actuals 145 145

Corporate and

Community Services

Addition Phone usage repayment income Phone usage repayment income - finance 70 70

Note 7 192,165


Services

Reduction Transfer from wages to cover additional

Contractor

Transfer from wages to cover additional Contractors - Relief Staff 56,109 56,109


Services

Reduction Wages Cleaners - now contractors Reduce budget wages for Cleaners - now contractors 37,060 37,060


Park Authority

Addition NCPA - Salaries & Wages NCPA - Salaries & Wages - forecast increase in costs (17,612) (17,612)


Park Authority



Park Authority



Park Authority

Reduction NCPA - Superannuation NCPA - Superannuation - to provide superannuation as 9.5% of salaries & wages 5,162 5,162


Park Authority

Reduction NCPA - Superannuation NCPA - Superannuation - to provide superannuation as 9.5% of salaries & wages 387 387


Park Authority

Reduction NCPA - Superannuation NCPA - Superannuation - to provide superannuation as 9.5% of salaries & wages 903 903

Development and


Transfer Allocation of NRC Budget Reallocation of budget across natural accounts (1,370) (1,370)

Executive Services Addition Local Emergency Management Project Project approved by Council February 2014 resolution number 2014-18/169. (463) (463)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Transfer Long Service Leave provision to salary Rates resource to cover long service leave from internal staff allocation from

provision

0 0

Corporate and

Community Services

Addition Additional working hours-payroll

backup/EOY/Budget

Additional working hours - payroll backup/EOY/budget for April to June 2015 (3,320) (3,320)

Development and


Transfer Budget adjustment Transfer from Natural Resource Centre director/EA to Bushgardens (in salary) 0 0

Corporate and

Community Services

Reduction Agency Admin costs / Admin salary cost

reduction

Appropriate coding for agency staff providing relief cover for admin contract position 23,423 23,423

Executive Services Addition Shared Procurement Initiative As per report to Council December 2014 resolution number 2014-18/71. (26,679) (26,679)

Corporate and

Community Services

Reduction Consulting - Other for Redefining

Communities

Transfer to Consulting - Other for Redefining Communities (in salary) 60,205 60,205

Corporate and

Community Services

Reduction Budget adjustment Due to no employee in position for 7+ months 24,643 24,643

Corporate and

Community Services

Reduction Budget adjustment Due to no employee in position for a number of months 10,694 10,694

Executive Services Addition Local Emergency Management Project Project approved by Council February 2014 resolution number 2014-18/169. (8,092) (8,092)

Executive Services Reduction Budget adjustment Transfer to ICT 13,050 13,050

Corporate and

Community Services

Reduction Agency ICT support / Helpdesk salary

cost reduction

Appropriate coding for agency staff providing relief cover for ICT contract position 6,240 6,240

Corporate and

Community Services

Transfer Temp Help Desk Officer - Funding

Transfer

The Temp Help Desk Officer resource is required for an additional five weeks whilst

Council recruits a new Officer. Funding for this contractor needs to be drawn from

the salary allowance for the vacant position.

12,000 12,000

Corporate and

Community Services

Addition Insurance - Workers Comp Premium Balance off insurance (7,991) (7,991)

Corporate and

Community Services

Addition Insurance - Workers Comp Premium Balance off insurance (519) (519)

Note 8 179,427

Corporate and

Community Services

Addition WQVJP - Extra Income - Extra

Commission

Caravan Park fees trending higher than predicted therefore commission higher. (10,000) (10,000)

Development and


Addition Euro wasp destruction Higher than seasonal averages of euro wasp nest notifications and destructions by

contractor.

(300) (300)


Services

Addition Increase in Community Building Repair No budget allocated for Pest Control Services. (1,000) (1,000)

Development and


Addition Pest control contractor engagement

European Wasp.

Additional wasp nest notifications. (4,000) (4,000)

Development and


Reduction Reallocate from Pest Control to Wasp

Control.

Funds not required for pest control, transfer to wasp contractor. 500 500

Development and


Addition Bushgardens General Budget

adjustments

Bushgardens budget reallocations and budget increases (510) (510)


Park Authority

Reduction NCPA - Contractors - Pest NCPA - Contractors - Pest - Forecast reduction in expenditure 1,000 1,000


Services

Reduction Cleaning contract being booked to

correct area

Reallocate budget for cleaning contract 0 0


Services

Addition Public Conveniences - Clean Additional services for cleaning of public conveniences (7,371) (7,371)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net


Services

Addition Hall - CWA Tanunda Additional Cleaning Contractors (4,961) (4,961)


Services

Addition Contractors - cleaners contract to end of

June

Contractors - cleaners contract to end of June Transfer from wages (11,800) (11,800)

Corporate and

Community Services

Addition Bike hub activities Bike hub activities (250) (250)

Corporate and

Community Services

Addition Contractors - Cleaning Services Increase in expense (95) (95)


Services

Addition Roadsides - Tree Trimming Additional Waste Disposal Services (11,734) (11,734)


Services

Addition Private Works Increased Contractors - Waste Disposal Services (1,711) (1,711)


Services

Reduction Parks & Gardens - Grass/Lawn

Maintenance

Reduced Contractors - Waste Disposal Services 7,000 7,000


Services

Reduction Kerb - Repair Reduced Contractors - Waste Disposal Services 10,000 10,000


Services

Addition Roadsides - Remove Litter Additional Contractors - Waste Disposal Services (5,896) (5,896)

Development and


Reduction Contractors - Waste Disposal Services Expenditure line no longer required. 20,000 20,000

Development and


Addition Contractors - Waste Disposal Services Waste collection - expected growth (15,000) (15,000)

Corporate and

Community Services


Corporate and

Community Services

Reduction Contractors - Fire Equipment Service Decrease in expenses 500 500

Corporate and

Community Services

Transfer Talunga Park - Contractors Re-assignment of budget 0 0

Corporate and

Community Services

Transfer Tanunda Rec Park Trees Reallocate budget from Building Maintenance to Trees 0 0


Services

Addition Increase of Office - Repairs and

Maintenance

Reactive maintenance actual costs greater than budgeted (10,000) (10,000)


Services


Maintenance



Services

Addition Increase of Office - Bldg Operational Exp Reactive maintenance actual costs greater than budgeted (21,605) (21,605)


Services


Maintenance


Corporate and

Community Services

Reduction Vandalism Repairs - Misc Reduced Contractors - Bldg Maintenance Services 6,000 6,000


Services

Reduction Public Conveniences - Misc Additional Contractors - Bldg Maintenance Services 500 500


Services

Reduction Hall - CWA Tanunda Reduced Contractors - Bldg Maintenance Services 3,000 3,000

Corporate and

Community Services

Reduction Hall - Rowland Flat - Contractors -

Building Maintenance

Budget adjustment agreed with Rowland Flat S41 540 540

Corporate and

Community Services

Reduction Barossa Gallery - Contractors - Building

Maintenance

There will be reduction on this unexpended amount ($14,300) awaiting response

from Chair

10,000 10,000




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Reduction Recreation Park - Curdnatta - reallocate

budget

Curdnatta Park - transfer from Contractors - Building Maintenance to Direct

Purchases Assets <$5,000

0 0


Services

Reduction Contractors - Building Maint Serv Budget adjustment 300 300


Services

Addition Increase in Public Conveniences Misc Actual costs greater than budgeted (1,000) (1,000)

Corporate and

Community Services

Transfer Agency ICT support / Helpdesk salary

cost reduction

Appropriate coding for agency staff providing relief cover for ICT contract position -

no budget impact

(6,240) (6,240)

Corporate and

Community Services

Transfer Elections Reduce Contractors - Relief Staff 6,000 6,000


Services

Addition Private Works Additional Contractors - Relief Staff (56,109) (56,109)

Development and


Transfer Relief Staff Funds not required before end of financial year. Request transfer to Heritage

Advisor

5,000 5,000

Corporate and

Community Services

Addition Relief Staff Transfer from salaries to contractors relief staff - Admin (23,423) (23,423)

Corporate and

Community Services

Transfer Budget adjustment Transfer from contractors relief staff to stationery 0 0

Development and


Reduction Reduction in block slashing income - Not

required

Reduction in block slashing income - Not required. Refer reduction in expenditure. 2,000 2,000


Services

Addition Roadsides - Slash Roadside Additional Grass Slashing Contractor Services (46,739) (46,739)


Services

Addition Mowing/slashing contract-stormwater Mowing/slashing contract-stormwater contract - estimate to 30 June (4,070) (4,070)

Development and


Reduction Contractors - Domestic Waste Collection Contractor service charges below projected estimates for financial year. 40,000 40,000


Services

Addition Increase of Office - Building Operational

Expenditure

Building security monitoring actuals greater than budgeted. (5,000) (5,000)


Services

Reduction Security monitoring budget reduction Security monitoring budget reduction 14/15 11,000 11,000

Corporate and

Community Services

Reduction Contractors Building Security Monitoring Decrease in expenses 839 839

Corporate and

Community Services

Reduction Budget adjustment Underspend on Schoolies Bus 600 600


Services

Addition Tree Removals at Tanunda Rec Park As per recent Treevolution Arborist report. High risk trees require removal. Seeking

reimbursement from Kiel fund via Council Report.

(43,200) 43,200 0


Services

Addition Roadsides - Tree Trimming Additional Contractor Services (151,113) (151,113)


Services

Addition Parks & Gardens Tree/Shrub

Maintenance

Additional Contractors - Tree Trimming Services (570) (570)


Services

Reduction Budget adjustment Reduce tree trimming budget -transfer to Tanunda Rec Pk. Reduce tree trimming -

additional $43200 already in Tanunda Rec Park

43,200 43,200


Services

Addition Road Seal - Linemarking Additional Contractors - Linemarking Services (54,111) (54,111)

Corporate and

Community Services

Reduction Finance vehicle service - contractors Finance vehicle service - contractors - remaining budget not required 260 260


Services

Reduction Reduce budget vehicle machinery

servicing

Reduce budget vehicle machinery servicing - contractors 9,000 9,000




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net


Services

Addition Cemeteries - Grave/Dig/Backfill Additional Contractors - Grave Digging Services (6,000) (6,000)

Corporate and

Community Services

Addition Increase in Post School Options

Contractor expenses

Increase in Contractor expenses due to increase in group numbers - additional

income to come from grant funding

(20,000) (20,000)

Development and


Reduction Immunisation Changes to immunisation service (as per council report 16/12/14). 300 300


Services

Addition Transfer from Works Conferences to OD

Recruitment

Facet 5 for Leading Worker Positions (1,815) (1,815)

Executive Services Addition Memory device for shared service

arrangement

Purchase of a memory device to be used in shared service arrangement with Gawler

and Mallala

(89) (89)

Corporate and

Community Services

Transfer Addition to Contractor expenses Transfer from direct purchases line to fund report on structural integrity of the

Nuriootpa pool with no net budget impact. $3k from Community asset budget

(5,000) (5,000)

Executive Services Addition Police Checks request Police checks are tracking higher than anticipated. (1,500) (1,500)

Development and


Reduction European Wasp destruction Higher than seasonal averages of euro wasp nest notifications and destructions by

contractor.

300 300


Services

Transfer Rawlinson's Construction Guide

Handbook 2014 & 2015

Transfer to cover purchase of Rawlinson's Construction Guide Handbook 2014 &

2015

0 0

Corporate and

Community Services

Transfer WQJVP pool Chemical to rec park

contractors

WQJVP pool Chemical to rec park contractors 5,000 5,000

Corporate and

Community Services

Transfer Temp Help Desk Officer - Funding Top

Up

The Temp Help Desk Officer resource is required for an additional five weeks whilst

Council recruits a new Officer. Funding for this contractor needs to be drawn from

the salary allowance for the vacant position.

(12,000) (12,000)

Executive Services Reduction Injury Management Payment - Medical

Costs

The is no current budget for internal injury management payments that are not put

through as WorkCover Claims.

(156) (156)

Executive Services Addition Non WorkCover Medical Costs Budget required for unbudgeted non WorkCover medical expenses. (160) (160)

Corporate and

Community Services

Transfer Elections Increase Contractor - Other Services (6,000) (6,000)


Services

Reduction Reduction of Works Asset Management

Plan from Cont

Actual costs greater than budgeted. 294 294


Services


Plan from Cont

Actual costs greater than budgeted. 1,934 1,934

Executive Services Addition Facet5's Council has been conducting Facet5's on behalf of The Town of Gawler and D.C of

Mallala as apart of the Shared Services Agreement.

(1,950) (1,950)

Executive Services Addition Criminal History Checks and Facet5's Transfer of monies to cover the purchase of Facet5's for new staff and the renewal

of Criminal History Checks for current staff

0 0

Development and


Reduction Third party contractor services not

required.

Third party contractor services not required Legionella control inspections. 500 500

Executive Services Reduction Executive Services - Budget Saving Minor budget saving. 500 500


Services

Reduction Public Conveniences - Building Repair Reduction of Contractors costs for Building Repairs 36,000 36,000


Services

Addition Pipe/Drain/Culvert - Clean Additional Contractor Services (92,997) (92,997)


Services

Addition Pipe/Drain/Culvert - Repair Additional Contractor Services (64,147) (64,147)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net


Services

Reduction Stormwater Drainage - Misc Reduced Contractor Services 10,000 10,000


Services

Reduction Footbridge - Repair Reduce Footbridge Contractor Services 3,600 3,600


Services

Addition Footpath - Repair Additional Contractor Services and transfer of operating to capital (124,930) (124,930)


Services

Addition Kerb - Repairs Additional Contractor Services (16,174) (16,174)


Services

Addition Roadsides - Tree/Shrub Maintenance Additional Contractor Services (33,316) (33,316)


Services

Reduction Roadside - Slash Roadside Reduced Contractors - Other Services 19,000 19,000


Services

Reduction Unsealed Roads - Patch/Repair Reduced Contractors - Other Services 29,000 29,000


Services

Addition Roads Grade/Resheet Shoulders -

Contractors - Other Services

Additional Contractor - Other Services and transfer of operating to capital (119,121) (119,121)


Services

Addition Sealed Roads - Patch/Repair Additional Contractor - Other Services (260,650) (260,650)


Services

Addition Cemeteries - Other Maintenance Additional Contractors - Other Services (5,643) (5,643)


Services

Addition Misc Land/Bldg/Struct/Equip/F&F - Maint Additional Contractors - Other Services (18,589) (18,589)

Corporate and

Community Services

Addition Misc Building - Remove Graffiti Additional Contractors - Other Services (5,785) (5,785)


Services

Addition Fence - Repair Additional Contractors - Other Services (15,264) (15,264)


Services

Addition Public Conveniences - Misc Additional Contractors - Other Services (946) (946)


Services

Reduction Parks & Gardens - Grass/Lawns

Maintenance

Reduced Contractors - Other Services 8,000 8,000

Corporate and

Community Services

Addition Parks & Gardens Tree/Shrub

Maintenance

Additional Contractors - Other Services (3,260) (3,260)


Services

Addition Parks & Gardens - Miscellaneous Additional Direct Purchases - Irrigation Supplies (19,475) (19,475)


Services

Reduction Road Seal - Linemarking Reduced Contractors - Other Services 5,000 5,000


Services

Reduction Guard Rail - Repair/Replace Reduced Contractors - Other Services 10,000 10,000


Services

Addition Fences - Misc Additional Contractors - Other Services (2,035) (2,035)


Services

Addition Roadsides - Remove Litter Additional Contractors - Other Services (700) (700)

Corporate and

Community Services

Transfer Movement of transitional funding Funds claimed back from transition funding underspend were less than anticipated (1,336) (1,336)

Development and


Addition Heritage Advisor Existing funds insufficient to cover cost of five more visits (potential maximum-actual

will be as required) this financial year. Can be covered by transfer from Relief Staff.

(6,500) (6,500)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net


Park Authority

Carried Fwd NCPA - Contractors - Other NCPA - Contractors - Other - demolition expenditure re cabins, meeting rooms and

ablution block expected to be carried out in 15-16

39,500 39,500


Services

Reduction Reduction in contractors other vandalism Reduction in contractors other vandalism 1,500 1,500

Corporate and

Community Services

Carried Fwd ICAN Grant Expenditure ICAN Grant will not be completed until November 2015 as it will run for two terms

with Nuriootpa High School. Carry forward remaining expenditure at 30 June

7,000 7,000


Services

Reduction Reduce budget depot contractors other Reduce budget depot contractors other 5,000 5,000

Corporate and

Community Services

Transfer Addition to Contractor expenses Transfer from direct purchases line to fund report on structural integrity of the

Nuriootpa pool with no net budget impact

3,000 3,000


Services

Carried Fwd Angaston Railway Precinct Upgrade exp-

operating

Angaston Railway Precinct Upgrade funding - operating expenditure - grant funded 21,499 21,499

Corporate and

Community Services

Reduction CWA Hall remodelling wall/room trsf

capital works

CWA Hall remodelling wall/room transfer to capital works 14,751 14,751

Corporate and

Community Services

Addition Expenditure for Grant Received -

Barossa Illuminate

To reflect agreed budget expenditure for grant funding received for the project -

Barossa Illuminated

(6,020) (6,020)

Corporate and

Community Services

Transfer Reallocation of funds for shop stock

expenditure

An increase in shop stock expenditure has been required - request reallocation of

funds from Contractors (other services) to cover. Reduction in contract staff has

allowed for this to occur.

0 0


Services

Transfer Income & Expenditure transfer - cost

neutral

Kalimna Road - North Para River Drainage finished surface remediation works (995) (995)

Corporate and

Community Services

Transfer WQVJP - Levies to Contractors Reallocation of budget 0 0


Services

Addition Machinery/equip repairs - Contractors

other

Machinery/equip repairs - Contractors other - additional budget (7,029) (7,029)

Corporate and

Community Services

Reduction Contractors - Other Services Budget adjustment 1,000 1,000

Corporate and

Community Services

Reduction Contractors - Other Services Budget adjustment 100 100


Services

Addition Budget adjustment Core sampling oval (1,000) (1,000)

Corporate and

Community Services

Addition Budget adjustment Eden Valley Rec Park - Transfer assets to building maint. 0 0


Services

Reduction Tour Down Under - Contractors - Other

Services

Budget adjustment 5,570 5,570

Corporate and

Community Services

Carried Fwd Budget adjustment This saving was being quarantined to assist in funding the Conquest/Pathway

integration project which was taken out of next year's NI's as CMT requested that it

be brought forward and funded this year. Total quoted cost for project = $50k

29,000 29,000

Corporate and

Community Services

Reduction Community Assets Fund - Contractors -

Other Services

Under budget 15,000 15,000

Corporate and

Community Services

Reduction Office Equipment - Contractors - Other

Services


Corporate and

Community Services

Reduction Office Equipment - F&F - Contractors -

Other Services

Budget not needed 1,000 1,000

Corporate and

Community Services

Reduction Arts Officer - Contractors - Other

Services

No further workshops for the financial year 6,000 6,000




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Development and


Reduction Disabled Access Committee -



Development and


Reduction Other health Services - Contractors -

Other Services

Under budget 990 990

Development and


Reduction Manage Food Act - Contractors - Other

Services

Under budget 500 500

Development and


Reduction Native Vegetation - Contractors - Other

Services


Corporate and

Community Services

Reduction Asset Sales - Contractors - Other

Services

Budget not needed 13,325 13,325


Services

Reduction CWMS Infrastructure Maintenance -


Budget reductions required 30,488 30,488

Corporate and

Community Services

Addition Visitors Centre - Contractors - Other

Services

Budget adjustment (852) (852)


Services

Addition Misc Land/Bldg/Struc/Equip/F&F - Maint Additional Contractor - Painting Services (6,608) (6,608)


Services

Addition Bethany Reserve Additional Contractors - Painting Services (381) (381)

Corporate and

Community Services

Reduction Angaston Hall - Painting Contract Budget adjustment - paid by building maint 4,605 4,605

Corporate and

Community Services

Reduction Hall - Rowland Flat - Contractors -

Painting Services

Budget adjustment agreed with Rowland Flat S41 500 500

Corporate and

Community Services

Reduction Williamstown Hall - Painting Contract Budget adjustment - paid by building maint 8,263 8,263

Corporate and

Community Services

Reduction Mt Pleasant Hall - Painting Contract Budget adjustment - paid by building maint 5,355 5,355


Services

Reduction Road Safety Audit Covered by provision. Transfer Consultants Engineering from Angaston Dump to

Engineering Services

0 0

Development and


Reduction Planning - Ministerial Project & Strategic Contingency funds to respond to state government changes not required. 40,000 40,000

Development and


Reduction Planning - Development Plan

Amendments

Funds to commission DPA's not required due to delays in approval for projects. 59,000 59,000


Services

Addition Increase in Works Asset Management

Plan Consultant

Actual costs greater than budgeted. (1,934) (1,934)


Services

Addition Works Asset Management Plan Reallocate budget (8,375) (8,375)

Executive Services Reduction Office Furniture Office furniture required for office movements. 1,000 1,000

Development and


Addition Immunisation Changes to immunisation service (as per council report 16/12/14) (2,100) (2,100)

Executive Services Reduction Purchase of New Filing Cabinet Transfer of monies to allow for the purchase of a new filing cabinet and additional

direct purchase required before the end of the financial year e.g name badges for

new staff

0 0

Executive Services Addition Risk Management SharePoint Upgrade

and Migration

Requirement to progress the Migration of the Risk Management System over to

Inside Barossa.

(2,294) (2,294)

Corporate and

Community Services

Transfer FBT/GST review (transfer budget) Additional process to be installed for the implementation electronic Payroll input and

processing for Employee Self Service in financial systems (Transfer budget from

GST/FBT review consulting)

4,000 4,000




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Executive Services Reduction Customer Survey - Conduct Budget savings on customer survey costs. 8,000 8,000

Executive Services Addition Executive Services - Director

Recruitment Costs

As per report to March meeting of Council. (2,500) (2,500)

Corporate and

Community Services

Addition Stormwater Drainage - Miscellaneous Additional Consultants - Other (1,810) (1,810)

Executive Services Addition Regional Secretariat Project Regional investigation project solely funded through LGA R&D Grant. (2,500) (2,500)


Park Authority

Addition NCPA - Consulting fees NCPA - Consulting Fees - not included in original budget (540) (540)

Corporate and

Community Services

Reduction Reduce consultants budget - Audit

Committee

Reduce consultants budget - Audit Committee - balance not required 14/15 2,200 2,200

Corporate and

Community Services

Addition Consulting - Other for Redefining

Communities

Transfer to Consulting - Other for Redefining Communities (in salary) (35,000) (35,000)

Corporate and

Community Services

Reduction Consultants - Other Budget adjustment 1,500 1,500

Corporate and

Community Services

Reduction Consultants - Other Budget adjustment 10,000 10,000

Corporate and

Community Services

Reduction Administer Volunteer Resource Centre No contractors required for the rest of financial year 2,500 2,500

Corporate and

Community Services

Reduction Consultants - Other Budget adjustment 500 500

Development and


Reduction Planning Appeals - Consultants - Other Under budget 3,000 3,000

Corporate and

Community Services

Reduction Elections - Consultants - Other Budget not needed - Council elections 11,000 11,000

Corporate and

Community Services

Addition GIS Quarterly Mapping Updates DEWNR Increase for quarterly mapping updates (1,000) (1,000)

Development and


Reduction Health Services - Consultants GIS data

management



Services

Reduction Unsealed Roads - Patch/Repair Reduce External Plant Hire 5,000 5,000


Services

Reduction Footpath Repair - External Plant Hire

(Rollers)

Operating to capital 1,000 1,000


Services

Reduction Pipe/Drain/Culvert - Clean Reduced External Plant Hire - Other 2,000 2,000


Services

Addition Streetsweeping Additional External Plant Hire (Other) (6,875) (6,875)


Services

Reduction Tour Down Under Committee External plant hire under budget 5,094 5,094


Services

Reduction Footpath Repair - External Plant Hire

(Other)



Services

Reduction Roads Grade/Resheet Shoulders -

External Plant Hire (Other)


Corporate and

Community Services

Reduction Info tech lease Agreements Funds not allocated for offsetting any expenditure. 18,000 18,000




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Reduction Photocopier Rental reduction Library photocopiers (Lyndoch, Mt Pleasant, Tanunda, Nuriootpa 1 and 2) are under

'rental' agreements. New natural account has been created for this amount. Budget

to be transferred & Budget adjustment

5,500 5,500


Services

Reduction Community Building Repair - Contractors

Tagging

Budget not required 20,000 20,000

Corporate and

Community Services

Transfer Electronic Employee Self Service payroll Additional process to be installed for the implementation electronic Payroll input and

processing for Employee Self Service in financial systems (Transfer budget from

GST/FBT review consulting)

(4,000) (4,000)

Corporate and

Community Services

Reduction Trim Licences This saving is required to offset expenditure for 2013-14 HP Trim Licences (110 user

licences) not paid last financial year

15,000 15,000

Corporate and

Community Services

Addition Trim licence support renewal Trim licence support renewal (15,410) (15,410)


Services

Reduction Software - Annual Licence Budget adjustment 8,832 8,832

Corporate and

Community Services

Addition TRIM Licensing Adjustment of budget line for purchase of additional TRIM user licenses and

maintenance based on current operational requirements

(2,200) (2,200)


Services


Plan

No costs allocated to this line 10,000 10,000

Executive Services Reduction Budget Saving - OD Budget saving on software costs. 3,000 3,000

Corporate and

Community Services

Reduction Reduce budget annual financial

statements software

Reduce budget for annual financial statements software - balance not required 14/15 1,125 1,125

Corporate and

Community Services

Addition Budget adjustment 10 TRIM licence required (5,500) (5,500)


Services

Addition Works Asset Management Plan Budget addition required (1,600) (1,600)

Corporate and

Community Services

Addition Increase for TRIM support services Increase required for TRIM support services during interim period between

knowledge management staff. To be offset by savings in other areas

(3,100) (3,100)

Corporate and

Community Services

Reduction Reduce budget for internal controls

software

Reduce budget for internal controls software - balance not required 14/15 1,000 1,000

Corporate and

Community Services

Reduction Conquest/Pathway integration project This saving was being quarantined to assist in funding the Conquest/Pathway

integration project which was taken out of next year's NI's as CMT requested that it

be brought forward and funded this year. Total quoted cost for project = $50k

5,000 5,000

Corporate and

Community Services

Reduction Library Link Project Delay Self check for Lyndoch to 15/16 4,000 4,000

Corporate and

Community Services

Addition Depot Maint - Energy Cost -

Fuel/Lubricants

Reallocate budget (5,000) (5,000)


Services

Addition Staff Training - Works Purchase of Revised Work-zone Traffic Management Books. (1,702) (1,702)

Development and


Reduction Transfer to offset purchase of WWS

application folders

Previously cost shared with records 200 200

Corporate and

Community Services

Transfer Admin - Transfer publication to printing Transfer publication to printing 0 0

Corporate and

Community Services

Reduction Reduce budget administer GST/FBT -

publications

Reduce budget administer GST/FBT - publications - not required 14/15 500 500

Corporate and

Community Services

Addition Asset revaluations publications Asset revaluations publications - purchase of Rawlinson's guide (182) (182)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Addition Quarterly rating lots reports Quarterly rating lots reports - increase to budget (90) (90)

Corporate and

Community Services

Reduction Budget adjustment Publications 800 800

Corporate and

Community Services

Transfer Additional funds to Contractor expenses Report required on structural integrity of pool - transfer budget from purchases line to

have no net impact on overall budget costs

2,000 2,000

Executive Services Addition Office Furniture Office furniture required for office movement. (1,000) (1,000)


Services

Addition Street Furniture - Repair/Replace Litter Additional Direct Purchases - Assets < $5,000 (1,560) (1,560)


Services

Addition Direct Purchases - assets <$5,000 Budget adjustment (4,155) (4,155)

Corporate and

Community Services

Reduction Direct Purchases - assets <$5,000 Budget adjustment 6,150 6,150

Corporate and

Community Services

Reduction Direct Purchases - assets <$5,000 Some of these funds had been earmarked to fund the Records Counter partition

works (up to $2K max). This work is considered important to the Records Team to

assist with utilisation of the desk closest to the counter and to mitigate distractions

associated with high traffic volumes and interruptions to work. Also flagged as

funding for desk alterations and funds for reactive repairs or replacement of

phones/tablets etc

3,000 3,000

Corporate and

Community Services

Reduction Direct Purchases - assets <$5,000 Budget adjustments agreed with Rowland Flat S41 1,000 1,000

Corporate and

Community Services


Corporate and

Community Services

Reduction Direct Purchases - assets <$5,000 Equipment 1,000 1,000

Corporate and

Community Services

Reduction Direct Purchases - assets <$5,000 Furniture and Fittings 3,000 3,000

Corporate and

Community Services



Services

Reduction Signs - Repair/Replace Reduced Direct Purchases - Signs 15,000 15,000

Corporate and

Community Services


Corporate and

Community Services

Reduction Budget adjustment Library signs 1,600 1,600

Corporate and

Community Services

Addition Bus repairs More repairs than anticipated (3,900) (3,900)


Services

Addition Vehicle/Plant direct purchases Vehicle/Plant direct purchases - additional budget required (13,676) (13,676)


Services

Addition Vehicle machinery parts-repairs - direct

purchases

Vehicle machinery parts-repairs - direct purchases - increase budget (11,443) (11,443)

Development and


Reduction Purchase of WWS application folders Transfer to offset cost of WWS application folders (previously cost shared with

records)

240 240

Development and


Addition Food inspection stationery. Inspection folders required as per Food Act. (212) (212)


Park Authority

Reduction NCPA - Direct Purchases - Stationery NCPA - Direct Purchases - Stationery - forecast reduction in expenditure 1,000 1,000




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Reduction The REX - last year of ratepayer

discount

The REX - last year of ratepayer discount 1,000 1,000

Corporate and

Community Services

Reduction Direct Purchases - Stationery Budget adjustment 90 90

Corporate and

Community Services

Addition Garden Bed Maintenance Additional Direct Purchases - Irrigation Supplies (3,341) (3,341)

Corporate and

Community Services

Addition Rec Park - Lyndoch Additional Direct Purchases - Irrigation Supplies (1,129) (1,129)


Services

Reduction Reduce budget irrigation supplies depot Reduce budget irrigation supplies depot 4,000 4,000


Services

Reduction Parks & Gardens Tree/Shrub

Maintenance

Reduce Direct Purchases - Plants/Shrubs 3,000 3,000


Services

Addition Garden Bed Maintenance Additional Direct Purchases - Plants/Shrubs (5,760) (5,760)


Services

Addition Personal Safety Equipment - Provide Additional Direct Purchases - Safety Equip or Clothing (4,961) (4,961)

Corporate and

Community Services

Transfer WQJVP pool Chemical to rec park

contractors

WQJVP pool Chemical to rec park contractors (5,000) (5,000)

Corporate and

Community Services

Reduction Budget adjustment Williamstown pool chemicals not needed 4,500 4,500


Services

Reduction Reduce budget - loose tools Reduce budget - loose tools 3,500 3,500


Services

Reduction Misc Buildings - Remove Graffiti Reduced Direct Purchases - Building Repairs 3,000 3,000

Corporate and

Community Services

Reduction Vandalism Repairs - Misc Reduced Direct Purchases - Building Repairs 2,000 2,000

Corporate and

Community Services

Reduction Public Conveniences - Building Repair Reduced Direct Purchases - Building Repairs 2,000 2,000

Corporate and

Community Services


Development and


Reduction Immunisation Changes to immunisation service (as per council report 16/12/14) 780 780

Development and


Addition Thermometers To adjust natural account for GST on thermometer purchase 0 0


Services

Addition Correct budget import error Budget reduced twice in error - this adjustment to correct back to zero (20,000) (20,000)

Development and


Addition Purchase of WWS application folders Transfer to offset costs of WWS application folders (cost previously shared with

records)

(200) (200)

Development and


Addition Purchase of WWS application folders Transfer to offset cost of WWS application folders (previously shared with records) (240) (240)

Development and


Addition Purchase of WWS application folders Transfer to offset cost of WWS application folders (cost previously shared with

records)

(300) (300)

Corporate and

Community Services

Transfer Payroll entry resource Transfer of materials budget to Payroll entry/process resource to replace HR

assistance and provide contingency for leave

1,000 1,000


Services

Addition Increase in Direct Purchases under

Works Asset Man

Actual costs greater than budgeted. (294) (294)

Executive Services Addition Over Spent - Direct Purchases Other Over Spent - Direct Purchases Other. Budget adjustment required to transfer funds (750) (750)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Development and


Reduction Direct purchases not required for current

year.

Direct purchases not required for current year. 250 250

Development and


Reduction Sharps container purchase reduction. No further sharps containers required for current year. 850 850

Executive Services Reduction Executive Services - Minor Budget

Saving

Minor budget saving. 3,200 3,200

Executive Services Addition Elected Members Budget to support Governor visit costs - pending report to Council April 2015. (3,000) (3,000)


Services

Reduction Bridge - Repair Reduced Direct Purchases 15,000 15,000


Services

Reduction Cemeteries Grass/Lawn Maintenance Reduced Direct Purchases 200 200


Services

Addition Cemeteries - Other Maintenance Additional Direct Purchases - Other (3,134) (3,134)

Corporate and

Community Services

Addition Cemeteries - Plaques Additional Direct Purchases - Other (1,092) (1,092)


Services

Reduction Fence - Repair Reduce Direct Purchases - Other 2,200 2,200

Corporate and

Community Services

Addition Public Conveniences - Misc Additional Direct Purchases (189) (189)


Services

Reduction Street Furniture - Repair/Replace Litter Reduced Direct Purchases - Other 5,000 5,000


Services

Addition Machine/Vehicle/Equip - Repair Additional Direct Purchases - Others (1,919) (1,919)


Services

Addition Parks & Gardens - Miscellaneous Additional Direct Purchases - Other (4,010) (4,010)


Services

Reduction Guard Rail - Repair/Replace Reduced Direct Purchases - Other 3,850 3,850


Services

Reduction Traffic Management - Misc Reduced Direct Purchases - Other 5,000 5,000

Corporate and

Community Services

Reduction Bus direct purchases Spending less than anticipated 1,000 1,000


Park Authority

Addition NCPA - Direct Purchases Other NCPA - Direct Purchases Other - forecast increase in expenditure (913) (913)

Executive Services Addition Governors Visit Additional budget as resolved at Council meeting 21 April resolution 2014-18/224 (3,000) (3,000)


Services

Addition Direct purchases other Direct purchases other - increase budget (16,189) (16,189)

Corporate and

Community Services

Reduction Direct Purchases - Other Budget adjustment 4,000 4,000

Corporate and

Community Services

Reduction Direct Purchases - Other Budget adjustment 400 400

Corporate and

Community Services

Reduction Budget adjustment Next holidays program is in July - can reduce spending until then 1,000 1,000

Corporate and

Community Services

Reduction Budget adjustment Friends of the library - not needed 1,000 1,000

Corporate and

Community Services

Reduction Budget adjustment Library purchases - not needed 2,000 2,000




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Reduction Budget adjustment Williamstown car park materials - not needed 1,800 1,800

Corporate and

Community Services

Reduction Hall - Rowland Flat Budget adjustment agreed with Rowland Flat S41 300 300


Services

Reduction Tour Down Under Committee Budget not required 2,000 2,000

Corporate and

Community Services

Reduction Budget adjustment Office equipment - not needed 2,000 2,000

Corporate and

Community Services

Reduction Budget adjustment Money still left in the account to cover strategic day (Gallery) 700 700


Services

Reduction Direct Purchases - Other Budget adjustment 555 555

Corporate and

Community Services

Addition Budget adjustment Increase in expenses - tracking over in office supplies (250) (250)

Corporate and

Community Services

Addition Budget adjustment Increase in exp - stock (under budgeted) (5,000) (5,000)


Services

Addition Footpath - Repair To cover reallocation of capital to operating (3,458) (3,458)


Services

Reduction Reduce budget office consumables

depot

Reduce budget office consumables depot 2,500 2,500

Corporate and

Community Services

Addition Men's Shed Relocation New Budget line required for electricity costs for Men's Shed. Previously included

within rent paid for old site.

(500) (500)

Corporate and

Community Services

Reduction Adjustment direct billing of Electricity

Belgravia

Payment of electricity now made direct by Belgravia and not expensed through

Council

255,393 255,393


Park Authority

Reduction NCPA - Energy Costs - Electricity NCPA - Energy Costs - Electricity - suggested reduction in budget due to current

costs compared to budget

10,000 10,000


Services

Reduction Reduce street lighting electricity Reduce street lighting electricity - not required 14/15 30,000 30,000


Services

Reduction Reduce CWMS electricity Reduce CWMS electricity - not required 14/15 45,000 45,000

Corporate and

Community Services



Park Authority

Reduction NCPA - Energy Cost - Gas NCPA - Energy Cost - Gas - forecast reduction in expenditure 3,500 3,500

Corporate and

Community Services


Executive Services Addition Energy Costs and Fuel - Vincent

Marsland

Increase to cover usage costs of new vehicle (1,400) (1,400)

Executive Services Reduction Executive Services Budget Savings Minor budget saving. 1,000 1,000

Corporate and

Community Services

Addition Increase in Post School Options

Contractor fuel

Increase in anticipated costs (2,000) (2,000)


Park Authority

Reduction NCPA - Energy Cost - Fuel/Lubricants NCPA - Energy Cost - Fuel/Lubricants - forecast reduction in expenditure 1,000 1,000


Park Authority

Reduction NCPA - Energy Cost - Fuel/Lubricants NCPA - Energy Cost - Fuel/Lubricants - forecast reduction in expenditure 1,000 1,000


Services

Reduction Budget adjustment Reduce fuel budget-no expenditure to this GL 14 /15 1,100 1,100




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net


Services

Reduction Depot Maint - Energy Cost -

Fuel/Lubricants

Depot Maint - Energy Cost - Fuel/Lubricants Reallocate budget 5,000 5,000

Corporate and

Community Services

Reduction Budget adjustment Spending less on fuel since price reduction 500 500

Development and


Addition Increased Waters Usage costs Increased water usage costs - offset by additional income as on-charged to UTLMP (10,000) (10,000)


Services

Reduction Car parks - Miscellaneous Reduced Road Materials - Rubble (External) 2,000 2,000


Services

Addition Unsealed Roads - Patch/repair Additional Road Materials - Rubble (external) (12,502) (12,502)


Services

Addition Road Pavement - Patrol Grading Additional Road Materials - Rubble (External) (5,246) (5,246)


Services

Reduction Roads - Grade/Resheet Road Shoulders Reduced Road Materials - Rubble (External) and Operating to capital 50,000 50,000


Services

Reduction Budget adjustment Operating to capital 6,348 6,348


Services

Reduction Sealed Road - Patch/Repair Reduced Road Materials - Screenings 18,000 18,000


Services



Services

Reduction Sealed Roads - Patch/Repair Reduced Road Materials - Bitumen/Cold Mix 70,000 70,000


Services



Services

Addition Budget adjustment Operating/capital reallocation (4,351) (4,351)


Services

Addition Pipe/Drain/Culvert - Repair Additional Purchase Drainage Pipes (4,889) (4,889)


Services


Executive Services Addition Bank Charges Bank Charges - Not Budgeted (12) (12)

Corporate and

Community Services

Reduction Budget adjustment Decrease in expenses - bank fees tracking under 200 200

Corporate and

Community Services

Addition Insurance - Income Protection Balance off insurance (12,259) (12,259)

Corporate and

Community Services

Addition Insurance - Income Protection Balance off insurance (1,131) (1,131)


Park Authority

Reduction NCPA - Insurance - Buildings/Contents NCPA - Insurance - Buildings/Contents - costs less than budget 1,224 1,224

Corporate and

Community Services

Reduction Insurance - Building & Contents Balance off insurance 7,582 7,582

Corporate and

Community Services

Reduction Insurance - Building & Contents Balance off insurance 289 289


Park Authority

Reduction NCPA - Insurance - Public Liability NCPA - Insurance - Public Liability - Actual costs less than budget 286 286

Corporate and

Community Services

Reduction Insurance - Public Liability Balance off insurance 60 60




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Reduction Insurance - Public Liability Balance off insurance 4,619 4,619

Corporate and

Community Services

Reduction Insurance - Public Liability Balance off insurance 14 14

Corporate and

Community Services

Reduction Insurance - Personal Accident Balance off insurance 86 86


Park Authority

Addition NCPA - Insurance - Motor vehicle NCPA - Insurance - Motor Vehicle - actual costs higher than budget (2,246) (2,246)

Corporate and

Community Services

Reduction Insurance - Vehicle Balance off insurance 2,148 2,148

Corporate and

Community Services

Reduction Insurance - Vehicle Balance off insurance 808 808

Executive Services Reduction Non WorkCover medical expenses &

Volunteer Impact Subscription

There is no current budget for internal injury management payments that are not put

through as WorkCover Claims.

1,152 1,152

Executive Services Reduction Budget savings - OD Budget savings on advertising for strategic plan work. 1,500 1,500

Executive Services Addition Executive Services - Director

Recruitment Costs

As per March report to Council - advertising costs (under original estimate reported

by approx. $1300).

(4,200) (4,200)

Corporate and

Community Services

Reduction Bus advertising Spending less than anticipated 250 250

Corporate and

Community Services

Addition Car advertising Spending greater than anticipated (455) (455)

Development and


Reduction Planning - Ministerial, Project, Strategic Advertising funds not required due to delays in project approval. 2,000 2,000

Development and



Amendments

Unrequired advertising funds due to delays in project approval. 5,000 5,000



Park Authority

Addition NCPA - Advertising NCPA - Advertising - increase in promotional costs - partly covered by reduction in

Subscriptions & memberships - reclassification of expenditure

(8,600) (8,600)

Corporate and

Community Services

Addition Advertising budget - rating Increase advertising budget - rating - adoption of rates (922) (922)

Corporate and

Community Services

Reduction Advertising Reallocate budget 500 500

Corporate and

Community Services

Addition Advertising Advertising AB&BP 15/16 (550) (550)

Corporate and

Community Services

Reduction Advertising Budget adjustment 1,000 1,000

Corporate and

Community Services


Corporate and

Community Services

Reduction Budget adjustment No further advertising for the financial year 1,000 1,000

Corporate and

Community Services

Reduction Budget adjustment Advertising costs will only be required for Volunteer Week 1,000 1,000

Corporate and

Community Services

Reduction Budget adjustment No further advertising for the financial year 900 900

Corporate and

Community Services

Reduction Budget adjustment No further advertising for the financial year 2,200 2,200




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Development and


Reduction Advertising Under budget 1,600 1,600

Development and



Development and



Development and



Corporate and

Community Services

Reduction Advertising Under budget 500 500

Corporate and

Community Services

Transfer Advertising Increase in advertising expenses - budget reallocated from printing 0 0

Corporate and

Community Services

Addition Overdue notices - 3rd quarter 2014/2015 Transfer from Rate notices budget pending increase at next review (2,000) (2,000)

Corporate and

Community Services

Reduction Printing Rate Notices Transfer from Training to print overdue notices 1,200 1,200


Corporate and

Community Services

Reduction Reduce printing budget debtors Reduce printing budget debtors - not required 14/15 200 200

Corporate and

Community Services

Reduction Printing Can delay printing heritage maps until July 2015 5,000 5,000

Development and


Reduction Printing Under budget 1,700 1,700

Development and


Reduction Printing Under budget 1,500 1,500

Corporate and

Community Services

Reduction Printing Minimal service impact - printing requirements can wait till next FY 3,184 3,184

Development and


Addition Staff training Staff turnover (and previous high training investment in staff member) (900) (900)


Services

Reduction Transfer from Works Conferences to OD

Recruitment

Facet 5 for Leading Worker Roles 1,815 1,815

Development and


Reduction Training FSA training not now required in 14/15 health budget, thus compensating for

significant reduction to original 14/15 building training budget and unexpected

increase (125%) to TAFE Building Surveying course charges.

1,500 1,500

Development and


Addition Training & AIBS SA annual Building

Conference

FSA training not now required in 14/15 health budget, thus compensating for

significant reduction to original 14/15 building training budget and unexpected

increase (125%) to TAFE Building Surveying course charges. Compensating for

reductions previously made to training budget by CMT

(2,100) (2,100)

Executive Services Addition Shared Procurement Initiative As per report to Council December 2014 resolution number 2014-18/71. (500) (500)

Executive Services Reduction SharePoint Development - Migration and

Upgrade

Requirement to progress the Migration of the Risk Management System over to

Inside Barossa.

2,294 2,294

Executive Services Addition Elected Members Additional T&D budget required to support expected costs and ALGA conference -

pending report to Council April 2015.

(3,000) (3,000)


Services

Addition Staff Training - Works Staff Training for Cert 4 Civil Construction and Conquest Mobile Training

Configuration charge

(12,750) (12,750)

Executive Services Addition Elected Member Training Additional budget as resolved at Council meeting 22 April resolution 2014-18/219 (3,000) (3,000)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Reduction Reduce budget - annual financial

statements training

Reduce budget for annual financial statements training - not required 14/15 800 800

Corporate and

Community Services

Reduction Reduce budget for internal controls

training

Reduce budget for internal controls training - not required 14/15 500 500

Corporate and

Community Services

Reduction Reduction budget - rates staff training Reduction budget - rates staff training - balance not required 14/15 800 800

Corporate and

Community Services

Reduction Reduce training budget - Audit

Committee

Reduce training budget - Audit Committee - not required 14/15 1,000 1,000

Corporate and

Community Services

Addition Arts officer Training Budget adjustment Overspend on line seminar/conference fees (staff training) with an under spend on

travel expenses and accommodation expenses as both where in the total of invoice

0 0

Corporate and

Community Services

Reduction Training Training not yet allocated 2,000 2,000

Corporate and

Community Services

Reduction Training Further reduction to training budget not likely to be used by year end 1,500 1,500

Corporate and

Community Services

Reduction Training Further reduction to training budget not likely to be used by year end 700 700

Corporate and

Community Services

Reduction Staff Training - Conference Fees Budget adjustment 400 400

Corporate and

Community Services

Reduction Budget adjustment No further training for financial year as per direction 500 500

Executive Services Carried Fwd ICAM training ICAM training - delay until 15-16 4,000 4,000


Services

Reduction Training Conquest Mobile Training Configuration charge 1,650 1,650

Corporate and

Community Services

Reduction Training Impact of staff training needs - bookeasy conference and computer training planned 3,000 3,000

Corporate and

Community Services

Reduction Training No further training for financial year as per direction 800 800

Corporate and

Community Services

Reduction Training No further training for financial year as per direction 1,000 1,000

Development and


Reduction Staff training Staff turnover (and previous high training investment in staff member) 900 900

Executive Services Addition Over Spent - Staff Training - Travel

Expenses

Over Spent - Staff Training - Travel Expenses. Budget adjustment required to

transfer funds

(400) (400)



(750) (750)


Corporate and

Community Services

Reduction Staff Training - Travel Will not spend - did not attend ALIA conference 400 400

Corporate and

Community Services

Reduction Staff Training - Travel Impact of staff training needs - bookeasy conference and computer training planned 500 500

Development and


Reduction AIBS SA Annual Building conference Compensating for reductions previously made to training budget by CMT 600 600

Corporate and

Community Services

Transfer Printing Rate Notices Transfer from Accommodation to print overdue notices 500 500




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Executive Services Reduction Over Spent - Direct Purchases Other Over Spent - Direct Purchases Other. Budget adjustment required to transfer funds 750 750



(1,250) (1,250)


Services

Addition Staff Training - Works Additional Staff Training - Accommodation Expenses (573) (573)

Development and


Reduction Staff training - Accommodation Reduction in Expenditure - Not Required for 14/15 400 400


Corporate and

Community Services

Reduction Staff training - Accommodation Accommodation budgets not used 360 360

Executive Services Reduction Staff training - Accommodation Not previously budgeted 12 12

Executive Services Reduction Staff training - Accommodation Not previously budgeted 10 10

Corporate and

Community Services

Reduction Staff training - Accommodation Will not spend - did not attend ALIA conference 530 530

Corporate and

Community Services

Reduction Staff training - Accommodation Impact of staff training needs - bookeasy conference and computer training planned 247 247


Park Authority

Reduction NCPA - Telephone NCPA - Telephone - reduction in forecast expenditure 2,040 2,040

Corporate and

Community Services

Reduction Telephone Decrease expenses - telephone tracking under 800 800

Development and


Reduction Postage Reduction in Expenditure - Postage Costs - Not required for 14/15 300 300

Development and


Reduction Postage Reduction in Expenditure - Postage Costs 400 400

Corporate and

Community Services

Addition Postage Increase postage budget - rates - recovery of outstanding debts (535) (535)

Corporate and

Community Services

Reduction Postage Reallocate postage budget to match actual expenses 0 0

Corporate and

Community Services

Reduction Postage No major impact 400 400

Corporate and

Community Services

Addition Postage Increase expenses - postage tracking over (1,695) (1,695)

Corporate and

Community Services

Addition Courier/Freight Charges Courier expenditure is expected to be $3,500 over budget, due to increase in One

Card transactions.

(3,500) (3,500)

Corporate and

Community Services

Reduction Courier/Freight Charges No need for courier for rest of financial year 700 700

Executive Services Addition Courier/Freight Charges Freight charges - Not Budgeted (10) (10)

Corporate and

Community Services

Addition Youth Bus Initiative Data Plan Hosting Council has agreed to include the Barossa Lower North Futures Youth Bus Data

Plan within Councils sharable data pool and Telstra Acct. This will be a nil impact for

Council as we will be reimbursed the full costs of the Youth Bus Data Plan ($130 per

month). A separate budget adjustment will be added to record the revenue received

for this initiative. Adjustment is for three remaining months of this F/Y.

(390) (390)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Reduction Mobile Phone Expenses Budget adjustment 100 100

Corporate and

Community Services

Reduction Mobile Phone Expenses Underspent on mobile for year 200 200

Development and


Reduction Wireless Broadband Reduction in Expenditure - Wireless broadband not used in 14/15 430 430

Executive Services Reduction Wireless Broadband Under budget 2,000 2,000


Park Authority

Addition NCPA - Emergency Services Levy NCPA - Emergency Services Levy - increase in costs (38) (38)


Park Authority

Addition NCPA - Audit NCPA - Audit - forecast increase in expenditure (380) (380)

Corporate and

Community Services

Reduction Reduce audit expenses budget Reduce audit expenses budget - balance not required 14/15 250 250

Corporate and

Community Services

Reduction Audit fees Reduction in audit fees 2,212 2,212


Park Authority

Addition NCPA - Honorarium NCPA - Honorarium - not in original budget (5,455) (5,455)

Executive Services Addition Over Spent - Contractors - Other

Services

Over Spent - Contractors - Other Services. Budget adjustment required to transfer

funds

(50) (50)

Executive Services Addition Executive Services - Minor adjustment Minor adjustment to match actual. (140) (140)

Corporate and

Community Services

Carried Fwd Events Strategy Reduce budget and add again in 2015/16 year. 16,750 16,750

Executive Services Addition Executive Services - Minor adjustment Minor adjustment to match actuals. (185) (185)

Development and


Carried Fwd Heritage Grants Funds allocated at December 2014 meeting but not yet claimed. Grant conditions

permit funds to be claimed within 12 months. Keep current fund amount as majority

has been allocated.

8,190 8,190

Executive Services Addition Brand SA Awards Additional budget allocated for Brand SA awards as per Council resolution 2014-

18/223 21/4/15

(300) (300)

Corporate and

Community Services

Addition Budget adjustment Increase in expenses - business name renewal not budgeted (68) (68)

Executive Services Transfer Legal Fees Support for advice related to 2 employee issues. Being transfer from CCS and DES. (2,000) (2,000)

Development and


Transfer Legal Fees Support for advice related to 2 employee issues. Being transferred from CCS and

DES to Exec Svcs.

1,000 1,000

Corporate and

Community Services

Transfer Legal Fees Support for advice related to 2 employee issues. Being transferred from CCS and

DES to Exec Svcs.

1,000 1,000

Executive Services Addition Legal Fees Additional fees incurred than budgeted. (3,000) (3,000)

Executive Services Addition Shared Procurement Initiative As per report to Council December 2014 resolution number 2014-18/71. (100) (100)

Corporate and

Community Services

Carried Fwd Admin Legals To 2015/16 budget 20,000 20,000

Development and


Reduction Legal fees not required. Legal fees not required for current year. 520 520




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Executive Services Reduction Budget Savings - OD Budget savings on legals. 2,000 2,000

Development and


Addition Planning - Legal Fees Unforeseeable increase in appeal costs (10,000) (10,000)

Development and


Reduction Planning - Ministerial, Project, Strategic Funds not required for this financial year. 5,000 5,000

Development and



Amendments

Legal fees not required this financial year. 4,000 4,000

Corporate and

Community Services

Reduction Reduce legal fees budget - finance Reduce legal fees budget - finance - not required 14/15 500 500

Corporate and

Community Services

Reduction Legal Fees Legal fees not required this financial year. 5,000 5,000

Corporate and

Community Services

Reduction Men's Shed Relocation Men's Shed rent not required beyond March 2014 - money to be transferred to cover

electricity and insurance costs for remainder of 14/15 financial year

1,000 1,000

Corporate and

Community Services

Addition Budget adjustment Increase in expenses - Cycle Hub paving $11,244, Septic $5,740 from joint maint

fund

(11,984) (11,984)

Executive Services Addition Yearly subscription to Volunteer Impact Unbudgeted for the 14/15 year. (836) (836)

Executive Services Reduction Over Spent - Staff Training - Travel

Expenses

Over Spent - Staff Training - Travel Expenses. Budget adjustment required to

transfer funds

400 400

Executive Services Addition Executive Services - Minor adjustment Minor adjustment to match actuals. (150) (150)


Park Authority

Reduction NCPA - Subscriptions & Membership NCPA - Subscriptions & Membership - reduction in expenditure - also part

reclassification of expenses to advertising

9,040 9,040

Corporate and

Community Services

Reduction Reduce Subscriptions budget - Finance Reduce Subscriptions budget - Finance - balance not required 14/15 975 975


Services

Addition Increase subscriptions budget-Southern

& Hills

Increase subscriptions budget-Southern & Hills membership 14/15 (100) (100)

Corporate and

Community Services

Reduction Budget adjustment Membership LGP 500 500


Services

Reduction Subscriptions/Memberships Budget adjustment 107 107

Corporate and

Community Services

Reduction Subscriptions/Memberships Discretionary expenditure - not spent 100 100



Corporate and

Community Services

Transfer Movement of transitional funding Funds claimed back from transition funding underspend were less than anticipated 1,336 1,336



Park Authority

Addition NCPA - Miscellaneous Expenses NCPA - Miscellaneous Expenses - forecast increase in expenses (40) (40)

Corporate and

Community Services

Reduction Other Misc. Expenses - Sundry Budget adjustment 500 500

Corporate and

Community Services

Reduction Other Misc. Expenses - Sundry No major impact 2,000 2,000




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Reduction Other Misc. Expenses - Sundry Decrease in expenses - misc expenses not required 500 500

Executive Services Reduction Over Spent - Contractors - Other

Services

Over Spent - Contractors - Other Services. Budget adjustment required to transfer

funds

50 50

Executive Services Addition Elected Members - Minor Adjustment Minor adjustment to match actuals - EM xmas function. (1,300) (1,300)

Corporate and

Community Services

Reduction Entertainment Budget adjustment 600 600

Corporate and

Community Services

Addition Entertainment Increase in expenses - Tourism awards council contrib to 50% tickets (569) (569)


Services

Addition Internal Allocations - Plant Hire Plant hire recovery increase budget to actuals 45,570 45,570


Services

Addition Internal Allocations - Wages Overhead Wages overheads recovery - variance to increase to 130% from 85% - capital wages 50,087 50,087


Services

Reduction Internal Allocations - Wages Overhead Wages overheads transfer to capital transfer from operating budget to capital for

overheads

25,000 25,000


Services

Reduction Internal Allocations - Wages Overhead Wages overheads transfer to capital transfer from operating budget to capital for

overheads

20,200 20,200

Note 9 (23,633)

Corporate and

Community Services

Addition Gawler - Tanunda Bike Path

Depreciation

Gawler - Tanunda Bike Path Depreciation - Increase due to reduced useful life from

whole of life to actual asset plus increased cost of asset

(92,000) (92,000)

Corporate and

Community Services

Addition Roads (Sealed) Depreciation Roads (Sealed) Depreciation - increase due to additional assets through

accumulated capital works.

(81,000) (81,000)

Note 10 (173,000)


Park Authority

Reduction NCPA - Loan Interest - LGFA NCPA - Loan Interest - LGFA - forecast reduction in expenditure due to additional

funds not being drawn

12,917 12,917

Note 11 12,917

NET TOTAL - Operating Adjustments (124,338) (124,338) 43,200 (81,138)


Summary of Capital Budget Variance Adjustments


Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Capital Expenditure on Renewal and Replacement of

existing assets

Executive Services Carried Fwd Reporting System Funds - Carry Over Funds for Reporting System from 2013-14 insurance scheme bonus will not be

spent, project commenced however no direct expenditure likely to be incurred until

2015-16

73,307 73,307

Corporate and

Community Services

Reduction Reduce Community Transport Vehicles CapEx Cost of replacement vehicles expected to be less than budgeted. 10,000 10,000

Corporate and

Community Services

Reduction Reduce Hill & Son Organ CapEx budget Hill and Son organ expenditure to be less than budget (Capital grant funding also

reduced)

20,000 20,000


Services

Addition Tanunda Tennis & Netball Courts - increased expenditure Tanunda Tennis & Netball Courts - Rubble (58,286) (58,286)


Services

Transfer Replace high risk retaining wall at WQVJP Transfer of Capex in Buildings to Recreation Infrastructure. These are the same

function (Buildings & Recreation) in the budget approved by Council. The work is to

replace a high risk retaining wall at Williamstown QVJP.

15,400 15,400


Services

Transfer Replace high risk retaining wall at WQVJP Transfer of Capex in Buildings to Recreation Infrastructure. These are the same

function (Buildings & Recreation) in the budget approved by Council. The work is to

replace a high risk retaining wall at Williamstown QVJP.

(15,400) (15,400)


Services

Reduction Reduction of Capital Expenditure - Misc Community Reduction of Capital Expenditure - Misc Community Properties to fund operating

overspend from budget. Actuals higher than budgeted.

10,000 10,000


Services



21,605 21,605


Services



20,463 20,463


Services



5,000 5,000


Services



1,000 1,000


Services

Reduction Reduction of Capital Expenditure - Misc Community Reduction of Capital Expenditure - Misc Community Properties 1,000 1,000


Services

Reduction Identified savings Identified savings 13,675 13,675


Services

Addition Tanunda Tennis & Netball Courts - increased expenditure Additional expenditure as per Council report 21/04/15 (13,883) (13,883)


Services

Addition Tanunda Tennis & Netball Courts - increased expenditure Accounting for overspends (193) (193)


Services

Addition Tanunda Tennis & Netball Courts - Rubble and Haul Provision of rubble and haulage for Court development plus misc. Majority to be

reimbursed (rubble and haulage). Budget Adjustment for Income entered

(27,698) (27,698)


Services

Addition Tanunda Tennis & Netball Courts - Wages Overheads Accounting for overspend. (11,801) (11,801)


Services

Addition Tanunda Tennis & Netball Courts - Plant Hire Accounting for overspend (3,550) (3,550)


Services

Transfer Correct prior quarter budget adjustment Correct prior quarter budget adjustment (79,849) (79,849)


Services

Transfer Correct prior quarter budget adjustment Correct prior quarter budget adjustment 79,849 79,849


Services

Reduction Major Plant Savings EOY Major Plant Purchases completed. End of Year Savings realised. 9,473 9,473


Services

Reduction Depot Trucks Savings EOY Depot Trucks Purchases are completed. End of Year Savings realised. 44,211 44,211

Budget Update 2014-15 as at 31 March 2015 | The Barossa Council | Page 30



Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net


Services

Reduction CWMS coordinator vehicle From CWMS Ute 1 to CWMS Co-ord Vehicle to cover true cost of Vehicle 4,782 4,782


Services

Addition CWMS Coordinator Vehicle From CWMS Ute 1 to CWMS Co-ord Vehicle to cover true cost of Vehicle (4,782) (4,782)


Services

Reduction CWMS UTE 2 From CWMS UTE 1 to CWMS UTE 2 to cover true cost of replacement 7,000 7,000


Services

Addition CWMS UTE 2 From CWMS UTE 1 to CWMS UTE 2 to cover true cost of replacement (7,000) (7,000)


Services

Addition 601322 - Truck 1 Budget Increase budget to meet expenditure (11,865) (11,865)


Services

Addition 401596 Isuzu Tandem Increase budget to match actual expenditure (1,850) (1,850)


Services

Carried Fwd Specialised Vehicle replacement 15/16 Additional costs in replacing ute 1 incorporating jetter and crane 16,218 16,218


Services

Addition Jane Place Ford Contribution of Joint Works Light Regional Council undertook works to Jane Place, Tanunda Ford (Floodway).

Request to re-allocate budget from Road Reseal Budget to accommodate

expenditure.

(17,297) (17,297)


Services

Reduction Reallocation Road Reseal Budget to Jane Place Ford Reduction of Road Reseal Budget for Jane Place Ford (Floodway) project as a

result of Light Regional Council scheduled works in 2014/15.

17,297 17,297


Services

Addition Thiele Road Floodway Overspend Reallocation of Road Reseal Budget to Thiele Road Floodway due to lack of

detailed design and substantial scope variations.

(58,045) (58,045)


Services

Reduction Reallocation of Road Reseal Budget to Thiele Road Reduction of Road Reseal Budget to reallocate to Thiele Road Floodway Project. 58,045 58,045


Services

Addition Allendale Road Floodway Reallocation of Road Reseal Budget to Allendale Road Floodway project (100,000) (100,000)


Services

Reduction Road Reseal Project to Allendale Road Reduction of Road Reseal Budget to Allendale Road Floodway Project 100,000 100,000


Services

Addition Wages overheads trsf to capital Wages overheads transfer to capital - transfer from operating budget to capital for

overheads

(45,200) (45,200)


Services

Addition Wages overheads recovery - increase capital O/H Wages overheads recovery - variance to increase to 130% from 85% - capital

wages

(50,087) (50,087)


Services

Reduction Road reseal budget Savings in Moppa Road 45,000 45,000


Services

Reduction Resheet Budget Road Resheets deferred to 15/16 - Barossa Boundary 31,300 31,300


Services

Reduction Resheet Budget Road Resheets deferred to 15/16 - Burge Road 13,300 13,300


Services

Reduction Resheet Budget Road Resheets deferred to 15/16 - Concordia Road 10,650 10,650


Services

Addition Road Pave Jacob Road, Rowland Flat Road Resheets additional work done - Jacob Road (1,250) (1,250)


Services

Addition Road Pave Wirra Wirra Road, Williamstown Road Resheets additional work done - Wirra Wirra Road (8,750) (8,750)


Services

Addition Road Pave Mugge Road, Kalbeeba Road Resheets additional work done - Mugge Road (11,900) (11,900)


Services

Addition Road Pave Little Kaiserstuhl Road, Tanunda Road Resheets additional work done - Little Kaiserstuhl Road (18,250) (18,250)


Services

Addition Road Pave Ken Hick Road, Mt Pleasant Road Resheets additional work done - Ken Hick Road (18,761) (18,761)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net


Services

Addition Road Pave E Starricks Road, Springton Road Resheets additional work done - E Starricks Road (19,226) (19,226)


Services

Addition Road Pave Verralls Road, Springton Road Resheets additional work done - Verralls (29,750) (29,750)


Services

Addition Road Pave Gruenberg Road, Moculta Road Resheets additional work done - Gruenberg Road (39,300) (39,300)


Services

Addition Road Pave Ash Street, Tanunda Road Resheets additional work done - Ash Street (43,350) (43,350)


Services

Addition Road Drain Allendale Road, Kalbeeba Allendale culvert drainage - estimated overspend (100,000) (100,000)

Corporate and

Community Services

Carried Fwd NCPA - Roadways / Kerb NCPA - Roadways / Kerbing works not expected to be carried out in 14-15,

therefore carry forward to 15-16 requested.

25,000 25,000


Services

Addition Road Pave Tanunda Creek Road, Angaston Road Resheets additional work done - Tanunda Creek Road (101,165) (101,165)


Services

Addition Road Shoulder Budget Capital work to road shoulders (149,974) (149,974)

Note 12 (394,887) 0

NET TOTAL - Asset Renewal/Replacement Adjustments (394,887) 0 (394,887)Capital Expenditure on New and Upgraded assets

Corporate and

Community Services

Carried Fwd Tanunda Bike Hub Retention monies held back on construction to be paid 15-16 28,028 28,028

Corporate and

Community Services

Addition CWA Hall remodelling wall/room - capital works CWA Hall remodelling wall/room - capital works budget transfer (14,751) (14,751)

Corporate and

Community Services

Carried Fwd NCPA - Multipurpose Games Room to 15-16 NCPA - Multipurpose Games Room - work not expected to be carried out in 14-15,

therefore carry forward to 15-16 requested.

176,800 176,800

Corporate and

Community Services

Carried Fwd NCPA - Camp Kitchen Refurbishment NCPA - Camp Kitchen Refurbishment - works not expected to be carried out in 14-

15, therefore carry forward to 15-16 requested

10,000 10,000

Development and


Addition Capital expenditure re storage shed Capital Expenditure re storage shed (funding received from Friends of the

Bushgardens)

(17,290) (17,290)


Services

Reduction CWMS Stockwell Capital Reduction of scope of works modified asset review process used due to drain age 65,000 65,000


Services

Reduction CWMS Penrice Capital Contingency Reduction due to reduced risk profile 6,000 6,000


Services

Reduction CWMS Springton Capital Contingency Reduce risk profile 5,000 5,000


Services

Reduction Road Drain, Murray Street, Tanunda Project not commenced 200,000 200,000


Services

Reduction Talunga Village Drainage Flood mitigation works will not commence in the near future 45,000 45,000


Services

Reduction Head Works Replacement Budget savings reallocated to cover overspends in other areas 47,557 47,557


Services

Addition Head Works Replacement Budget overspend - savings reallocated to cover this (4,560) (4,560)


Services

Addition Road Seal, Collins Street, Angaston Additional cross drain requirement (2,034) (2,034)


Services

Addition Road Drain, Stockwell Road, Angaston Additional road side culvert drainage works (18,541) (18,541)


Services

Addition Head Works Replacement Budget overspend - savings reallocated to cover this (36,018) (36,018)




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net


Services

Addition Road Drain, Fechner Place, Tanunda Additional rock armor to drain to remediate erosion (8,790) (8,790)


Services

Carried Fwd Road Drain, Kalbeeba Road, Concordia Design and hence construction delayed, pending outcome of the Development Plan

amendment for area's development density.

97,740 97,740


Services

Transfer Road Drain, Penrice Road, Nuriootpa Related to the North Para Flood Mitigation Works. Unspent at this location, transfer

to Flood Wall

25,000 25,000


Services

Transfer Flood Wall Surplus funds from adjacent Road Drain, Penrice Road, Nuriootpa transferred to

Flood Wall project location.

(25,000) (25,000)


Services

Transfer Road Drain, Penrice Road, Penrice Related to the North Para Flood Mitigation Works. Unspent at this location, transfer

to Flood Wall

110,300 110,300


Services

Transfer Flood Wall Surplus funds from adjacent Road Drain, Penrice Road, Nuriootpa transferred to

Flood Wall project location.

(110,300) (110,300)


Services

Addition Headworks Replacement Budget overspend - savings reallocated to cover this (5,000) (5,000)


Services

Addition Headwork Replacement Budget overspend - savings reallocated to cover this (1,981) (1,981)


Services

Carried Fwd Angaston Railway Capital Carry over to 15-16 still waiting on State to transfer land - grant funded 12,751 12,751


Services

Reduction Playgrounds Budget Savings EOY Playground Construction Projects completed. End of Year Savings realised. 2,916 2,916


Services

Addition Allocate Playground Funds as per actuals Reallocate budget (11,140) (11,140)


Services

Addition Allocate Playground Funds as per actuals Reallocate budget (28,006) (28,006)


Services

Addition Allocate Playground Funding as per actuals Reallocate budget (8,533) (8,533)


Services

Reduction Allocate Playground Funds as per actuals Reallocate budget 57,084 57,084


Services

Addition BBQ Tolley Reserve (Playgrounds Budget) Reallocate budget (9,405) (9,405)


Services

Carried Fwd Streetscaping - Angaston Carry forward funds 40,000 40,000


Services

Addition Supply/Install Concrete Bulk Bays - Tanunda Depot Supply/Install Concrete Bulk Bays-Tanunda Depot - Capital works (60,690) (60,690)


Services

Reduction Mount Pleasant Capital Contingency From Mount Pleasant Contingency to cover overspend. Reduce Risk Profile 10,000 10,000


Services

Addition Mount Pleasant Capital Contingency Reallocate budget to cover over spend (10,000) (10,000)


Services

Addition Mount Pleasant - Footpaths Variation to project (4,062) (4,062)

Note 13 563,075 0

Amounts received specifically for New and Upgraded

Assets/Profit & loss for asset disposal


Park Authority

Addition NCPA - Equipment Disposal Income NCPA - Income from disposal of equipment not in original budget 700 700


Services

Carried Fwd Angaston Railway Precinct Upgrade funding-capital Angaston Railway Precinct Upgrade funding - capital income - Payment received in

advance from 13/14 (14/15)

(12,751) (12,751)


Services

Addition Budget adjustment Anticipated recovery for flood mitigation works not budgeted. 15,000 15,000




Adjustment


Favourable/

(Unfavourable)

Sub Total per

type $

Reserve $

From/(To)

Net

Corporate and

Community Services

Reduction Hill & Son Organ Capital Grant Income Reduce capital grant income budget in line with reduction in capital expenditure

budget

(20,000) (20,000)

Corporate and

Community Services

Addition Friends of Bushgardens contribution Budget adjustment was incorrectly recorded in Q1 20,745 20,745

Corporate and

Community Services

Addition Capital Contributions to vehicle changeovers Not previously included in budget 11,877 11,877


Services

Addition Tanunda Tennis/Netball courts-capital contribution Tanunda Tennis & Netball courts - capital contribution for rubble 21,788 21,788

Note 14 37,359 0

NET TOTAL - Asset New/Upgrade Adjustments 600,434 0 600,434

NET TOTAL - Capital Adjustments 205,547 205,547 0 205,547



Statement of Comprehensive Income for the year ended 30 June 2015

Note

Original

Budget

Actuals as at

31 Mar

Full- year

Revised

Budget in

last Update

Variance

Fav/(Unfav)

Proposed

Full- year

Revised

Budget

$’000 $’000 $’000 $’000 $’000

Income

Rates 1 26,545 26,453 26,491 1 26,492

Statutory charges

593 467 593 (23) 570

User charges

2,586 1,529

3 2,585 (104) 2,481

Grants, subsidies and contributions

2 2,579 1,166 2,773 13 2,786

Investment income

3 202 222 247 7 254

Reimbursements

4 674 365 715 (206) 509

Other income

5 455 580 527 192 719

Net gain - joint ventures & associates

- - - -

Total Income

33,634 31,782 33,931 (120) 33,811

Expenses

Employee costs 6 11,734 8,393

11,886 179 11,707

Materials, contracts & other expenses 7 13,899 10,167

14,173 (24) 14,197

Depreciation, amortisation & impairment 8 6,682 4,959 6,612 (173) 6,785

Finance Costs 1,258 835 1,258 13 1,245

Net loss - joint ventures & associates - - - -

Total Expenses 33,573 24,354 33,929 (5) 33,934

Operating Surplus / (Deficit) 61 7,428 2 (125) (123)

Asset disposal & fair value adjustments (493) 258 (246) 1 (245)

Amounts received specifically for new or upgraded assets 12 612 628 696 36 732

Physical resources received free of charge - - - -

Net Surplus / (Deficit) 180 8,312 452 (88) 364

transferred to Equity Statement

Other Comprehensive Income

Changes in revaluation surplus - infrastructure,

property, plant & equipment

- - - -

Impairment (expense)/recoupments offset to asset

revaluation reserve

- - - -

Total Other Comprehensive Income - - - -

Total Comprehensive Income 180 8,312 452 (88) 364


Annual Business Plan - Business Units

Executive Services

Responsibilities

and Services

Provided:

General Management, Media Communications, Citizenship Ceremonies, Australia Day Awards,

Economic Development, Organisational Development, Tourism, Sustainability, Governance,

Business Excellence, Human Resources, Risk Management, Work Health and Safety, Strategic

Projects

Operations

Original Full

year Budget

(OB)

Actuals as at

31 Mar

Previous Full-

year Revised

Budget (RB)

Variance OB

to RB

Fav/(Unfav)

Proposed

Full- year

Revised

Budget (RB)

Current

Full- year

Revised

Forecast

$’000 $’000 $’000 $’000 $’000 $’000

Income 95 173 136 76 212 212

Expenditure 2,263 1,663 2,309 (13) 2,322 2,322

Capital Amounts (4) 16 (4) - (4) (4)

Net Surplus (Deficit) (2,172) (1,474) (2,177) 63 (2,114) (2,114)

Budget and actual results now include transactions associated with the transfer of internal restructure of services implemented on the

Information system to date. Refer to Operating budget adjustments for Variances applicable to this Business Unit.

Note: Both Executive Services and Development and Environmental Services provide management, operational and

regulatory services to the community and within Council as an organisation.

New Initiatives $’000

Description $’000

Executive Services 30

Strategic Projects Program Implementation – Contractors/Consultants

Capital Works Program

Description Renewal & Replacement

Programs

Original Full

year Budget

(OB)

Actuals as

at 31 Mar

Full- year

Revised Budget

(RB) in last

Update

Variance

Fav/(Unfav)

Proposed

Full – year

Revised

Budget (RB)

$’000 $’000 $’000 $’000 $’000

Risk Management/Corporate Reporting - - 73 73 - C/Fwd from 13-14


Corporate and Community Services

Responsibilities

and Services

Provided:

Corporate Services: Administration Customer Service; Administration Community Committees;

General Administration; Financial, Rating, Payroll and Audit Services; Information and

Communication Technology and Records Management; Governance (shared); Tourism/Visitor

Information Services; Community Land/Policy; Operation of Recreation Facilities;

Community Services: Community Development; Arts and Culture; Home and Care Services

including: Community Transport, Home Assist and Barossa Leisure Options, Barossa/Light

Volunteer Resource Centre, Youth Services, Library Services

Operations

Original Full

year Budget

(OB)

Actuals as at

31 Mar

Previous Full-

year Revised

Budget (RB)

Variance OB

to RB

Fav/(Unfav)

Proposed

Full- year

Revised

Budget (RB)

Current

Full- year

Revised

Forecast

$’000 $’000 $’000 $’000 $’000 $’000

Income 25,547 24,761 25,662 (147) 25,515 25,515

Expenditure 10,414 7,127 10,644 494 10,150 10,150

Capital Amounts 178 172 250 13 263 263

Net Surplus (Deficit) 15,311 17,806 15,268 360 15,628 15,628


Information system to date. Refer to Operating budget adjustments for Variances applicable to this Business Unit. Actuals include

invoices not processed for all Council wide services for Building insurance, Workers Compensation insurances & rebates

New Initiatives

Description $’000

Restructure Visitor Centre Staffing 16

Regional Youth Bus 5



Programs

Original Full

year Budget

(OB)

Actuals as

at 31 Mar

Full- year

Revised Budget

(RB) in last

Update

Variance

Fav/(Unfav)

Proposed

Full – year

Revised

Budget (RB)

$’000 $’000 $’000 $’000 $’000

Community Services 27 10 27 10 17 Community Transport Vehicles changeovers (net cost of trade-ins)

Library 79 8 75 - 75 Update of Library Book Stock and new software system for Council wide book availability Gallery organ restoration - Tanunda 20 - 20 20 - Ongoing restoration works funded in full by Grants $20k

Toilets & Changerooms Stockwell Park - 4 4 - 4 C/Fwd from 13-14 – Unspent funds required for retention Rex Stadium Floor - - 5 - 5 5% Retention held for installation of Rex Stadium 2 floor c/fwd from 13-14


Description New & Upgrade Programs

Original Full

year Budget

(OB)

Actuals as

at 31 Mar

Full- year

Revised Budget

(RB) in last

Update

Variance

Fav/(Unfav)

Proposed

Full – year

Revised

Budget (RB)

$’000 $’000 $’000 $’000 $’000

Tanunda Bike Hub 103 281 263 28 235 Construction of Hub over 2 years part funded by Federal grant*, net cost shown

* Tourism Industry Regional Development Fund Grants Programme

C/Fwd from 13-14 $160k

Tanunda Cycle Hub Feature Wall 25 15 25 - 25 Installation of a new Feature Graphic Wall on the South Western Corner of the Cycle Hub Men’s Shed - 79 83 - 83 C/Fwd from 13-14

Rex Project Work Completion - - 76 - 76 Air Conditioning / Pool Plant Stockwell Oval Clubrooms - retention - 11 12 - 12 Repayment of retention after defects liability period

Williamstown QVJ Park - 8 8 - 8 Electric barbecue

CWA Hall & Toilet, Tanunda - - - (15) 15 Front Wall


Development and Environmental Services

Responsibilities and

Services Provided: Strategic Development Planning, Development Control, Building Assessment, Food Inspection,

Immunisation, Natural Resources, Environmental Health, Building Fire Safety, Waste

Management, Heritage, Community Wastewater Management System (CWMS - System

Access, Waste Disposal and Water Contracts) Administration, Liquor Licences, Public Health,

Dog and Cat Control, Fire Prevention, Parking and Traffic Control, Café Licenses, Limited Liquor

Licenses, Dry Areas Implementation

Operations

Original Full

year Budget

(OB)

Actuals as at

31 Mar

Previous Full-

year Revised

Budget (RB)

Variance OB

to RB

Fav/(Unfav)

Proposed

Full- year

Revised

Budget (RB)

Current

Full- year

Revised

Forecast

$’000 $’000 $’000 $’000 $’000 $’000

Income 5,378 4,990 5,431 22 5,453 5,453

Expenditure 5,776 3,950 5,902 160 5,742 5,742

Capital Amounts 326 301 326 21 347 347

Net Surplus (Deficit) (72) 1,341 (145) 203 58 58



New Initiatives

Strategic plan no. Description $’000

Development Policy Projects 65 Council will seek to collaborate with councils in the State Government established Barossa

Region (i.e., Gawler, Light Regional and Mallala) to prepare a Regional Public Health Plan

requested pursuant to Section 51 of the new South Australian Public Health Act 2011

Barossa Bushgardens Nursery Staffing 15

Supplementation of existing Wholesale/Community Nursery staff assisting with the propagation of seedlings and

plants for sale and for Council use

Administration support General Inspectors/Searches 33

Additional administration for General Inspectors and real estate searches process


Original Full

year Budget

(OB)

Actuals as

at 31 Mar

Full- year

Revised Budget

(RB) in last

Update

Variance

Fav/(Unfav)

Proposed

Full – year

Revised

Budget (RB)

$’000 $’000 $’000 $’000 $’000

General Inspectors 34 15 34 - 34 General Inspector Vehicles changeovers (net cost of trade-ins)

Barossa Bushgardens Tractor - 21 21 - 21

Tractor/Slasher

Barossa Bushgardens Shed - - - (17) 17


Works and Engineering Services


Services Provided: Road Construction and Maintenance, Stormwater Drainage and Construction, Development

and Maintenance of Parks and Reserves, Footpath Construction and Maintenance,

Infrastructure Development, Bridge Construction and Maintenance, CWMS Maintenance and

Repairs, Roadside Vegetation Management and Control, Public Lighting Requirements,

Cemeteries, Public Toilets, Playgrounds, Road Safety Control, Management of Plant and

Machinery, Maintenance of Council Buildings

Operations

Original Full

year Budget

(OB)

Actuals as at

31 Mar

Previous Full-

year Revised

Budget (RB)

Variance OB

to RB

Fav/(Unfav)

Proposed

Full- year

Revised

Budget (RB)

Current

Full- year

Revised

Forecast

$’000 $’000 $’000 $’000 $’000 $’000

Income 955 981 1,043 73 1,116 1,116

Expenditure 13,369 10,614 13,323 (693) 14,016 14,016

Capital Amounts (469) 320 (209) 2 (207) (207)

Net Surplus (Deficit) (12,883) (9,313) (12,489) (618) (13,107) (13,107)



New Initiatives

Description $’000

Cemetery Digital Mapping 28

Improved mapping of cemetery plots and leases



Programs

Original Full

year Budget

(OB)

Actuals as

at 31 Mar

Full- year

Revised Budget

(RB) in last

Update

Variance

Fav/(Unfav)

Proposed

Full – year

Revised

Budget (RB)

$’000 $’000 $’000 $’000 $’000

Community Wastewater Management 42 16 42 16 26 Replacement motor vehicles (net cost of trade-ins)

Equipment Assets 976 1,824 1,955 40 1915 Grader, Truck; Includes Utilities, Admin vehicles (net cost of trade-ins)

C/Fwd from 13-14 – Grader $403k, Road Sweeper $387k, Tipper Truck $144k, Chipper

truck $136k, Tandem Tipper $217k less trade in proceeds of $308k – net $979k

Building & Recreation 50 - 57 54 3 Building renewal/replacement program

Nuriootpa Office Air-conditioning renewal 75 31 109 34 75 Office air-conditioning renewal program

C/Fwd from 13-14 $34k

Transport 2,699 1,289 2,779 (261) 3,040 Renewal and replacement works include: road resealing, road

resheeting, road shoulders and footpaths

Bridge/Drainage Assets 50 115 50 (275) 325 Replacement of Bridge Armco Safety Guards, Allendale Road, Jane Place Ford


Mount Pleasant Library Redevelopment - 21 21 - 21 C/Fwd from 13-14

Tanunda Tennis & Netball Courts - 265 169 (115) 284 C/Fwd from 13-14

Williamstown QVJ Park - - - (15) 15 Retaining wall


Original Full

year Budget

(OB)

Actuals as

at 31 Dec

Full- year

Revised Budget

(RB) in last

Update

Variance

Fav/(Unfav)

Proposed

Full – year

Revised

Budget (RB)

$’000 $’000 $’000 $’000 $’000

Community Wastewater Management 431 389 1,102 76 1026 Stockwell WWTP Upgrade Truro interconnect, Lyndoch WWTP Upgrade interconnect,

Tanunda WWTP Refurbishment, Stockwell Gravity Mains Asset Management, Nuriootpa

North Gravity Mains Asset Management, Operation Emergency IP and Manhole

Repairs/Replacement, Operation Emergency Drain Repairs, Operation Construction of New IP

due to planning errors

C/Fwd from 13-14– incomplete works $671k – CWMS Capital projects incomplete including:

Gravity main replacement, Nuriootpa; WWTP, Stockwell; WWTP, Mount Pleasant; WWTP,

Nuriootpa; CWMS Control systems and headwork replacements.

Recreation Assets 60 57 60 3 57 Playground equipment upgrade - various sites, Barbecue Nuriootpa Linear Park

Stormwater Drainage 445 321 927 313 614 Upgrade Inlet Capacity, Nuriootpa, Greenock Road - Open Drain upgrade, Kalbeeba, Kalimna

Road

C/Fwd from 13-14 $482k – Stormwater drainage projects incomplete including: Road Drain,

Penrice Road, Nuriootpa; Road Drain, Penrice Road, Penrice; Road drain, Murray Street,

Tanunda; Road Drain, Greenock Road, Nuriootpa; Road Drain, Hospital Road, Mount

Pleasant; Talunga Village Drainage; Flood Wall, Nuriootpa.

Equipment Assets 30 20 30 - 30 Minor plant purchases required for works operations

Transport 181 21 181 36 145 New and upgrade works: Footpaths $101k, Angaston Main

Street $40k, Mt Pleasant Main Street $40k

Buildings (New Initiative) 15 - 15 - 15 Upgrade to Council Security Systems

Talunga Park New Toilet Facility (NI) 150 - 150 - 150 Construction of a new toilet facility at Talunga Park

Security Project – Phase 1 - 30 30 - 30 C/Fwd from 13-14

Angaston Railway Precinct Upgrade - - 13 13 - Income and expenditure c/fwd to 15/16

Concrete Bulk Bays - - - (60) 60 Tanunda depot


Associated Entities – Subsidiary

Nuriootpa Centennial Park Authority


Services Provided:

Established as a subsidiary of Council pursuant to Section 42 of the Local Government Act

1999, the Nuriootpa Centennial Park Authority manages and maintains the Nuriootpa Caravan

Park and adjacent sporting and leisure facilities on behalf of Council.

To this end, and in accordance with the Authority’s Charter, operating surpluses of the Caravan

Park activities are utilised to maintain the Nuriootpa Recreation Park facilities (including tennis

courts, 3 ovals and associated buildings and infrastructure), as well as the picturesque

Coulthard Reserve located adjacent to the Caravan Park. Operating surpluses from the Caravan

Park activities are also utilised to provide important funding for the programmed upgrade and

replacement of the facility assets managed by the Authority.

The 2 ovals, a soccer pitch and eight tennis courts are extensively used by local sporting clubs.

The four-star rated Caravan Park facilities include on-site cabins and vans, a camp kitchen, and

various other standard amenities.

The projected 2014-15 Income Statement for the Authority is included within Council’s

financial statements, contained within this document.

Operations

Original Full

year Budget

(OB)

Actuals as at

31 Mar

Previous Full-

year Revised

Budget (RB)

Variance OB

to RB

Fav/(Unfav)

Proposed

Full- year

Revised

Budget (RB)

Current

Full- year

Revised

Forecast

$’000 $’000 $’000 $’000 $’000 $’000

Income 1,659 876 1,659 (144) 1,515 1,515

Expenditure 1,751 1,000 1,751 47 1,704 1,704

Capital Amounts 88 76 88 - 88 88

Net Surplus (Deficit) (4) (48) (4) (97) (101) (101)



Programs

Original Full

year Budget

(OB)

Actuals as

at 31 Mar

Full- year

Revised Budget

(RB) in last

Update

Variance

Fav/(Unfav)

Proposed

Full – year

Revised

Budget (RB)

$’000 $’000 $’000 $’000 $’000

Capital renewal/replacement 130 - 130 25 105 Cabin upgrade program


Original Full

year Budget

(OB)

Actuals as

at 31 Dec

Full- year

Revised Budget

(RB) in last

Update

Variance

Fav/(Unfav)

Proposed

Full – year

Revised

Budget (RB)

$’000 $’000 $’000 $’000 $’000

Capital renewal/replacement 330 - 330 186 144 Cabin upgrade program Hoffman Oval Lights & Shelter Sheds - - 10 - 10 C/Fwd from 13-14

AUDIT COMMITTEE

INTERNAL CONTROL COORDINATOR

REPORT

24 JUNE 2015

7.1.3 INTERNAL FINANCIAL CONTROL B1321 INTRODUCTION Update on internal control work performed since the last Audit Committee meeting. RECOMMENDATION That the report on Internal Financial Controls be received and noted.

COMMENT A demonstration of ControlTrack will be carried out at the meeting. Attached is a copy of the Internal Financial Control Report for February to June 2015. LEGISLATIVE / POLICY / COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 – Section 125, 126, 129 (1) (b) Local Government (Financial Management) Regulations 2011, 14(e) Council Policy Various Council Strategic Plan 4.1 Responsibility 4.3 Systems FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS The regular monitoring and review of Council’s financial internal controls and risk assessments will significantly facilitate the on-going safeguarding of Council assets. The control and review of risks is a core officer function and responsibility. The introduction of the new system supports officers by providing a consistent framework and process. COMMUNITY CONSULTATION Not required under legislation or Council’s Public Consultation Policy.

1 The Barossa Council © 2014 Form: Quarterly Internal Control Report TRIM TEMPLATE REF: 15/ Page 1 of 4

The electronic version of this document is the controlled version. Printed copies are considered uncontrolled. Before using a printed copy, verify that it is the current version

THE BAROSSA COUNCIL INTERNAL FINANCIAL CONTROL REPORT

Form Area: Corporate and Community Services Document Code: TBCFOR

Form Owner: Coordinator – Internal Control Last Revised Date: 13 February 2014

Responsible: Coordinator - Internal Control TRIM Reference: 15/

Entry Date: Entry Signature:

Period: February to June 2015 Prepared by: Nicole Rudd Legislative Requirement Section 125 of the Local Government Act 1999 states that: “A council must ensure that appropriate policies, practices and procedures of internal control are implemented and maintained in order to assist the council to carry out its activities in an efficient and orderly manner to achieve its objectives, to ensure adherence to management policies, to safeguard the council's assets, and to secure (as far as possible) the accuracy and reliability of council records.” Section 129(1)(b) of the Local Government Act 1999 states that: “The auditor of a council must undertake an audit of— (b) the controls exercised by the council during the relevant financial year in relation to the receipt, expenditure and investment of money, the acquisition and disposal of property and the incurring of liabilities.” Section 129 (3) (b) of the Local Government Act 1999 states that: “ The auditor must provide to the council: ‘an audit opinion as to whether the controls audited under subsection (1)(b) are sufficient to provide reasonable assurance that the financial transactions of the council have been conducted properly and in accordance with law’.” Part 2, Regulation 4 of the Local Government (Financial Management) Regulations 2011 states that: “4—Adopted standards etc (2) For the purposes of the definition of Better Practice Model—Internal FinancialControls, the document entitled the Better Practice Model—Internal Financial Controls published by the LGA on 26 July 2012, as in force from time to time, is adopted by these regulations pursuant to section 303(4) of the Act. (4) An alteration to the Better Practice Model—Internal Financial Controls or the Model Financial Statements by the LGA has no force or effect for the purposes of sub-regulation (2) or (3) (as the case requires) unless or until the Minister has providedhis or her written approval to the making of the alteration. (5) For the purposes of the definitions of Better Practice Model—Internal Financial Controls and Model Financial Statements— (a) the LGA is declared to be a prescribed body under section 303(4) of the Act; and (b) the principal office of the LGA (at 148 Frome Street, Adelaide, 5000 or, if the LGA moves its principal office, at that new address) is specified for the purposes of section 303(7)(c) of the Act. The following report has been developed to assist The Corporate Management Team (CMT) in the monitoring, action and review of the Internal Financial Control function of Council. This report is also provided to the Audit Committee for information on the status of Internal Financial Control.



1. ControlTrack Objective: To have a tracking tool which is used to document a self-assessment and review of Council’s Internal Financial Controls which facilitate the management of risks in relation to the financial operations of Council. Progress against actions/ activities within the ControlTrack Tool 2014/15 Assessment 2014 Assessment start date 4 November 2014 2014 Review start date 1 January 2015 2014 Process Improvement start date 27 February 2015 2014 Action Plan final due date 31 October 2015 Number of Residual Risks Assessments (assessment after controls)completed to date: 6/93 – 6% Number of Controls Assessed: 157/194 – 81% Number of Controls not Assessed in this Cycle past the close off date 31/12/14: 37/194 – 19% Number of Controls Reviewed – close-off date 28/2/15: 192/194 – 99% Number of Controls not Reviewed in this Cycle: 2/194 – 1% Number of actions identified by the Self-Assessment Cycle 82 Number of actions ‘Not Started’ 37 Number of actions ‘In Progress’ 44 Number of actions ‘Completed’ 1 Comments: 1. Presentation to OMG 22/6/15, to advise of next steps in the ControlTrack cycle. Reminder about

updating ‘Action Plans’ which are either ‘in progress’ or ‘not started’. 2. Facilitate the completion of all residual risk assessments in ControlTrack. 3. Determine the level to which controls within ControlTrack will be disseminated down through the

organisation. At present the controls are assessed at a fairly high level – should this be expanded down to a more granular level of scrutiny – eg Inventory is being assessed by one officer – but should it be assessed by those officers who have inventory within their functions – BVC, Bushgardens, Depot etc.

4. Determine the frequency of control assessment cycles. Should we consider splitting into groups of

controls which require half yearly assessment, yearly assessment and possibly 2 yearly assessment? This could be informed by the results from the residual risk assessments when completed.

2. External Audits / Correspondence from Auditors - Dean Newbery & Partners 1. Letter re “Preparation for the introduction of Section 129(1)(b) Local Government Act 1999” Progress against items within the letter: Still to be finalised. 2. External Audit Management Report – April 2015 Letter has been received raising various items which MFS has provided feedback on. Comments: 1. Complete documentation of our position on items raised in the letter relating to the introduction of

Section 129(1)(b) of the LG Act 1999 (see TRIM 15/925). 2. Response to Auditors on April Management Report has been sent and will be reported to 24/6/15

Audit Committee.



3. Internal Audits Policy /Process/Area No. of Non Conformances No. of Observations Cash Float – Nuriootpa Office Drawers 1&2 Petty Cash Float – Barossa Leisure Options Petty Cash Float – Nuriootpa Admin float Comments: 1. Complete the reporting of the audits detailed above. 2. Carry out the remaining cash float / petty cash audits. 3. Once the Residual Risk Assessments have been completed in ControlTrack, prioritise areas identified as

higher risk to implement an Internal Audit program for the financial functions of Council. 4. Incident Register – Internal Financial Control Source Works &


Development & Environmental

Services

Corporate & Community Services Executive Services

Incident Report – Business Process/Behaviour

#

#

#

#

Internal Audit # # # # Comments: Further work is being carried out with the Risk Team to categorise the incidents relating to Internal Financial Control. Above shows an example of how we will present the number of incidents raised in relation to the financial functions of Council. It is anticipated that detail around individual incidents will be reported to CMT with this summary being provided to Audit Committee. 5. Corrective and Preventative Actions Register (CAPA) Action Status Works &


Development & Environmental

Services

Corporate & Community Services Executive Services

Completed # # # # Current # # # # Reviewed for effectiveness

# # # #

Actions not resolved within timeframe

# # # #

Comments: No ‘Corrective and Preventative Actions’ have been added at this stage. Above shows an example of how we will present the number of corrective actions raised in relation to the financial functions of Council. These actions will come from incident reporting and internal audits (and will be separate to the action plans in ControlTrack relating to the ‘control’ self-assessments).



6. Finance Policy & Process Development/Review

Document Register Code Finance Document Approval

Date Review

Date Status

TBCPOC4050 Asset Accounting Policy 26/6/14 26/6/18 Current TBCPOC4400 Budget and Business Plan and Review

Policy 10/9/14 10/9/17 Current

TBCPOC4450 Community Assistance Scheme Policy 16/10/12 1/6/15 Under review TBCPOC4650 Debt Collection Policy New Policy Going to Audit

Committee 24/6/15 TBCPOC4750 Disposal of Land and Other Assets Policy 10/9/14 10/9/18 Current TBCPOC4200 Funding Policy 20/10/09 31/10/12 Going to Audit

Committee 24/6/15 TBCPOC4500 Investment Policy 15/6/10 1/5/12 Policy deleted – to be

incorporated into Funding Policy

TBCPOC4050 Procurement Policy 24/6/14 30/6/16 Current TBCPOC4700 Prudential Management Policy 15/7/14 15/7/17 Current TBCPOC4350 Rates Hardship Policy 21/6/11 31/10/12 Under Review TBCPOC4850 Remissions and Postponement of

Fines/Interest Policy New Policy Being drafted

TBCPOC4550 Rating Policy 17/2/09 30/6/12 Going to Audit Committee 24/6/15

TBCPOC4150 Treasury Management Policy 20/10/09 31/10/12 Going to Audit Committee 24/6/15

Comments: 1. All policies in bold above are currently being worked on and are at varying stages. The target date for

having each of these approved by Council early in the new financial year. 2. I also note that the Records Management Policy is currently under review. I have raised the fact that

there is only reference to TRIM and MAISY as our document management systems in the Policy and that there are numerous other software modules which contain ‘records’ outside of TRIM (eg Pathway, T1, ControlTrack, Conquest, Sharepoint, MYOB etc). This is being further investigated before the Policy is put for adoption.

7. Audit Committee – Internal Control Action Items Provide progress against action items within the minutes of the Audit Committee Meetings Meeting Date Action Status 3/6/14

Minutes – Internal Controls Compliance Officer to add a review of Development delegations to the next year’s action plan

5/2/15 Minutes – Coordinator Internal Control to provide a demonstration of how ControlTrack works at the next Audit Committee meeting

Demonstration at 24/6/15 mtg

AUDIT COMMITTEE

DEBATE AGENDA

24 JUNE 2015 7.1.4 AUDIT COMMITTEE AMENDED TERMS OF REFERENCE B2591 INTRODUCTION Further discussion on the amended Audit Committee Terms of Reference presented

at the meeting held on 5 February 2015 has been requested by Committee Members.

An amended Audit Committee Terms of Reference including the changes proposed

that the Audit Committee meeting is attached (Attachment 1). RECOMMENDATION That the Audit Committee Terms of Reference are reviewed by the Audit Committee and any proposed changes recommended to Council. COMMENT At its meeting on 5 February 2015, the Audit Committee discussed the content of the Audit Committee Terms of Reference (the Terms of Reference). Further input was sought in relation to the following clauses:

• 2.1.2 (iv) The clarity of disclosures in the Council’s financial reports and the context in which statements are made; and

• 2.1.2 (v) All material information presented with the financial statements It was proposed that the word “audited” be inserted before the word “financial” in each clause. Despite discussion and email exchange further to the February meeting, a consensus on the wording has not been achieved and it was requested that the matter be tabled for further consideration at the next Audit Committee Meeting. LEGISLATIVE / POLICY / COUNCIL STRATEGIC PLAN LEGISLATION: Local Government Act 1999 Local Government (Financial Management) Regulations 2011 Model Financial Statements 2014 COUNCIL STRATEGIC PLAN: 4.1 Responsibility

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS: FINANCIAL: No identified financial considerations. RESOURCE: No identified resource considerations. RISK: In the opinion of Officers, the current wording in clauses 2.1.2 does not present any undue risk to Council. An objective of the Audit Committee is to review financial reports and statements that are not audited as well as those that are. By restricting this clause it is the opinion of Officers that this limits the scope of the Audit Committee’s oversight unless it is amended to read audited and unaudited financial reports and statements. The wording of the Terms of Reference is largely taken from the standard Local Government Association template document. The LGA, Financial Managers Group and other relevant parties provide the Model Financial Statements (MFS) for Local Government use in South Australia and these are in line with legislation and best practice. The following is an extract from the 2014 version of the MFS which may assist Audit Committee Members considerations and refers to financial statements rather than audited financial statements throughout: “• The officer responsible for preparing the financial statements, who may or may not be the chief executive officer, will prepare draft statements for submission to the Audit Committee, and for external audit. • The Audit Committee will review the draft statements to ensure that they present fairly the affairs of the Council. This review will be conducted independently of the external audit. However, it is anticipated that the Audit Committee will have the benefit of any information available (informal or otherwise) on particular matters raised by the auditor up until the time of the review. • The certifying officers will review the proposed amendments to the draft statements and will either refer them to the Audit Committee for further consideration or may, if satisfied that the proposed amendments are appropriate, complete and date the certificate.” COMMUNITY CONSULTATION Not required under legislation of Council’s Public Consultation Policy

DRAFT TERMS OF REFERENCE OF THE BAROSSA COUNCIL’S AUDIT COMMITTEE

Council Meeting on 27 January 2015 Page 1 of 7

TERMS OF REFERENCE OF THE BAROSSA COUNCIL’S AUDIT COMMITTEE ESTABLISHED PURSUANT TO SECTION 41 OF THE LOCAL GOVERNMENT ACT 1999

1. ESTABLISHMENT

1.1 The Barossa Council (hereinafter referred to as "the Council") at a meeting held on 6 September 2005 Minute Book Reference 2005/292 established the Audit Committee (hereinafter referred to as “the Committee”) pursuant to section 41 of the Local Government Act 1999 (“the Act”).

1.2 The Committee is established to enquire into and report to Council in respect of those matters conferred upon it under section 126 of the Act and as set out in the clause 2 Objectives herein. 2 OBJECTIVES 2.1 Financial reporting

2.1.1 The Committee shall monitor the integrity of the financial statements of the Council, including its annual report, and review significant financial reporting issues and judgements which they contain. 2.1.2 The Committee shall review and question where necessary:

(i) The consistency of, and/or any changes to, accounting policies;

(ii) The methods used to account for significant or unusual transactions where different approaches are possible;

(iii) Whether the Council has followed appropriate accounting standards and made appropriate estimates and judgements, taking into account the views of the external auditor;

(iv) The clarity of disclosure in the Council’s financial reports and the

context in which statements are made; and

(v) All material information presented with the financial statements.

2.2 Internal Controls and Risk Management Systems

The Committee shall:

2.2.1 Keep under review the 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.

2.2.3 Understand the business of the Council to appreciate the risks it manages on a daily basis and to ensure that there are appropriate management plans to manage

Comment [SR1]: It was proposed that the word audited be inserted, to read audited financial reports

Comment [SR2]: It was proposed that the word audited be inserted, to read audited financial statements



and mitigate this business risk. This will include: governance considerations; insurance matters, financial reporting, legal and regulatory compliance, business continuity, and statutory compliance. This can be facilitated by discussions with internal and external auditors and through presentations by management on how business risks are identified and managed.

2.3 Internal audit The Committee shall:

2.3.1 Monitor and review the effectiveness of the Council’s internal audit function in the context of the Council’s overall risk management system;

2.3.2 Consider and make recommendations on the program of the internal audit function

and the adequacy of its resources and access to information to enable it to perform its function effectively and in accordance with the Act, supporting regulations and relevant professional standards;

2.3.3 Review all reports on the Council’s operations from the internal auditors; 2.3.4 Review and monitor management’s responsiveness to the findings and

recommendations of the internal auditor; and

2.3.5 Where appropriate, meet the internal audit provider at least once a year, without management being present, to discuss any issues arising from the internal audits carried out. In addition, the internal audit provider shall be given the right of direct access to the Mayor and to the Chairperson of the Committee. 2.4 Good Public Administration

2.4.1 Review policies and processes in relation to the reporting of fraud, corruption and/or maladministration in line with the Local Government Act 1999; Whistleblowers Protection Act, ICAC Act 2012 and other relevant legislation.

2.4.2 Review and comment on the Good Public Administration framework.

2.5 External audit

The Committee shall:

2.54.1 Consider and make recommendations to the Council, in relation to the appointment, re-appointment and removal of the Council’s external auditor. The Committee shall oversee the selection process for new auditors and if an auditor resigns the Committee shall investigate the issues leading to this and decide whether any action is required; 2.54.2 Oversee Council’s relationship with the external auditor including, but not limited to:

Formatted: Indent: Left: 2.54 cm



Comment [SR3]: Peter Brass to send through a comment for inclusion on external administration



(i) Recommending the approval of the external auditor’s remuneration, whether fees for audit or non-audit services, and recommending whether the level of fees is appropriate to enable an adequate audit to be conducted; (ii) Recommending the approval of the external auditor’s terms of engagement, including any engagement letter issued at the commencement of each audit and the scope of the audit;

(iii) Assessing the external auditor’s independence and objectivity taking into account relevant professional and regulatory requirements and the extent of Council’s relationship with the auditor, including the provision of any non-audit services;

(iv) 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);

(v) Monitoring the external auditor’s compliance with legislative requirements on the rotation of audit partners; and

(vi) 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 Committee’s own internal quality procedures).

2.54.3 Meet as needed with the external auditor noting that the Committee shall meet the

external auditor at least once a year without management being present to discuss the external auditor’s report and any issues arising from the audit;

2.54.4 Review and make recommendations on the annual audit plan and its consistency with the scope of the external audit engagement;

2.54.5 Review the findings of the audit with the external auditor. This shall include, but not be limited to, the following; (i) A discussion of any major issues which arose during the external audit; (ii) Any accounting and audit judgements; and (iii) Levels of errors identified during the external audit.

2.54.6 Review the effectiveness of the external audit based on the contract of

engagement;

2.54.7 Review any representation letter(s) requested by the external auditor; and 2.54.8 Review the management letter and management’s response to the external

auditor’s findings and recommendations.



2.65 Reporting responsibilities 2.65.1 The Committee shall make whatever recommendations to Council it deems appropriate on any area within this Terms of Reference where in its view action or improvement is needed. 3 MEMBERSHIP 3.1 The Committee shall consist of 6 members: 3.1.1 3 will be Independent Members, and 3.1.2 3 will be Elected Members; appointed by Council. 3.2 Independent Members will have recent and appropriate experience in finance, risk management and/or internal auditing.

3.2.1 Unless otherwise determined by Council, the Independent Members will be appointed for a 2 year term with a right of extension of the appointment by Council;

3.2.2 Independent Members’ remuneration , including when acting as the Chairperson, will be reviewed annually for consideration by Council during the Budget process.

3.3 The Committee will be supported by the Chief Executive Officer and other staff members who shall attend the Committee meetings in an advisory capacity.

3.4 Council’s external auditors and internal auditors may be invited to attend meetings

of the Committee in an advisory capacity. 3.5 Subject to clause 3.2, Committee members shall continue in office until the completion of a Periodic Election under the Local Government (Elections) Act 1999. Retiring Committee members shall be eligible for re-election.

3.6 The Committee shall, at its first meeting or at its first meeting following the Periodic Election, nominate a Chairperson, preferably from among the Independent members. The nomination must be approved by Council. Should there be more nominations than required to fill the positions then all voting shall be by secret ballot. 3.7 A member may be removed from the Committee on the grounds that he or she has been absent without leave from three or more consecutive meetings, or is not performing duties as required within the purpose of this Committee. 3.8 All members of the Committee shall be appointed by the Council on the recommendation of the Committee being persons who have signified to the Committee their willingness to



act if so appointed. Such method of appointment is to be made when filling vacancies on the Committee caused by either casual vacancies, or by the effluxion of time of the members. 3.9 The Council may at its discretion, remove from membership any member and appoint others in their stead.

4. MEETINGS 4.1 When the Chairperson is absent from a meeting the Committee members may appoint a person from those present to act as Chairperson for the duration of the meeting. 4.2 The meetings of the Committee shall be held in accordance with the Local Government (Procedures at Meetings) Regulations 2013 (“the Regulations”). 4.3 Meetings shall be held at least 4 times per year, or at other times as determined by the Committee. 4.4 Ordinary meetings of the Committee shall be held at the discretion of the Council, or, subject to a decision of Council, the Committee. A special meeting of the Committee may be called in accordance with the Act. 4.5 Notice of each meeting confirming the venue, time and date, together with an agenda of items to be discussed, shall be forwarded to each member of the Committee, all Elected Members and other attendees, no later than 3 clear days before the date of the meeting. Supporting documents shall be sent to Committee Members (and to other attendees as appropriate) at the same time. 4.6 No Committee member shall vote or take part in debate who has an interest in any matter before the Committee that would contravene the Conflict of Interest provisions in sections 73, 74 and 75 of the Act.

5. QUORUM 5.1 The quorum necessary for the transaction of business shall be 4 members of the Committee, including an Independent Member. A duly convened meeting of the Committee at which a Quorum is present shall be competent to exercise all or any of the

authorities, powers and discretions vested in or exercisable by the Committee. 6. VOTING 6.1 All decisions of the Committee shall be made on the basis of a majority decision of the members present. 6.2 The Chairperson to have a determinative vote and a casting vote in the event of no majority being achieved.

6.3 Members present must vote on all resolutions of the Committee. Proxy votes are not permitted.



7. MINUTES 7.1 The Committee shall keep or cause to be kept minutes of all meetings, which shall include a record of the names of members present at each meeting. Minutes of meetings shall be circulated within 5 days after a meeting to all Committee members. Draft (or confirmed) minutes will be placed on the subsequent Council agenda and Council’s website as soon as practicable.

7.2 The Chief Executive Officer shall ensure that the proceedings and resolutions of all meetings of the Committee, including recording the names of those present and in attendance, are minuted and that the minutes otherwise comply with requirements of the Regulations. 7.3 The Committee shall furnish to Council such information concerning the Committee's proceedings and activities as may be required.

8. GOVERNANCE 8.1 The activities of the Committee shall be regulated by such directions as may be made from time to time by Council and by such Terms of Reference as may be made by the Committee, and ratified by Council. 8.2 Pursuant to section 44 of the Act the Committee shall have delegated authority relative to section 126(4) of the Act. For other matters the Committee will make recommendations to Council. 8.3 The Chairperson shall be responsible to the Council for the proper observance of these Terms of Reference. However, no member shall be personally liable in respect of any transaction, act or omission of the Committee entered into, done or made in good faith. However, Committee members do not enjoy the protection against defamation actions afforded to State and Commonwealth Parliaments and must be careful not to make remarks that could result in an aggrieved person seeking to take action against them. 8.4 In the event of there being any dispute, which cannot be resolved by the Committee, the matter in question is to be referred to the Council for resolution. 8.5 8.5 Notwithstanding this Terms of Reference, all Committee members will observe the relevant requirements under the:

(i) Act;

(ii) Regulations; (iii) Code of Conduct for Elected Members (for Elected Member Committee

members) or Council’s Volunteer Management Policy (for Independent members);



(iv) Independent Commissioner Against Corruption’s Directions and Guidelines; and

(v) Council’s policies and processes which are relevant to the operations of the Committee.

8.6 Members of the Committee who are not Elected members are not required to complete a

Register of Interest Return pursuant to Section 64 of the Local Government Act 1999. 8.7 Members are expected to:

• act honestly and within the law at all times; • act in good faith and not for improper or ulterior motives; • act in a reasonable, just and non discriminatory manner; • undertake their role with reasonable care and diligence; • conduct their ongoing relationship with fellow Committee members, Council employees and the public with respect, courtesy and sensitivity; • use information in a careful and prudent manner.

8.8 The Chief Executive Officer shall provide sufficient administrative resources to the Committee to enable it to adequately carry out its functions, in accordance with any budget allocation being approved by Council. 8.9 All relevant documentation will be provided to the Committee members during Induction and when Council or legislative changes require further awareness. Committee members are expected to read, comply with and, where appropriate, to seek clarification with respect to Council policies and processes relevant to these Terms of Reference.

AUDIT COMMITTEE


REPORT

24 JUNE 2015 7.2 POLICIES FOR REVIEW 7.2.1 ASSET ACCOUNTING POLICY B1466 INTRODUCTION The Asset Accounting Policy was previously adopted by Council on 26 June 2014. Following a review, the updated Policy was adopted by Council on 16 June 2015. A copy of the document is provided in Attachment 1. RECOMMENDATION That the Asset Accounting Policy as revised and adopted by Council be noted.

COMMENT Following a review, the updated Policy was adopted by Council on 16 June 2015. Major changes include, but are not limited to, the inclusion of a paragraph relating to Materiality and Revaluation Thresholds together with a table showing Asset Classification, Residual Values and Revaluation Cycle and Methodology. The amended Policy reflects the review carried with regard to Useful Lives, Long Life Components and Residual Values. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Australian Accounting Standards Council Strategic Plan 4.1 – Responsibility

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial To ensure Council oversees its assets appropriately, policy is required to provide a framework for management to work with. Resource To ensure that Council resources of Infrastructure, Property, Plant and Equipment are suitable to meet its obligations to the Community.

Risk To ensure that the Infrastructure, Property, Plant and Equipment held by Council is appropriate and safe for its purpose. COMMUNITY CONSULTATION Council Policy for asset accounting is undertaken in compliance with legislation and Council requirements for asset management. Once the Policy is adopted by Council, it will be updated and available for the Community to access on Council’s website.

Asset Accounting Policy approved by Council on 26 of June, 2014 Page 1 of 24

This electronic copy is the approved version and is stored in Council’s Record Management System (TRIM). Printed copies are considered uncontrolled. Before using a printed copy please verify that it is the current version.

© The Barossa Council 2014

Strategic Plan Outcome: 4.1 Governance and Organisation ‐ Responsibility

Document Code: TBCPOC4600

Policy Owner: Director of Corporate and Community Services

Last Revised Date: 27/6/13

Responsible Officer: Manager – Financial Services TRIM Reference: 13/26741

Date Approved: 26/6/14 Next Review Date: 26/6/18

1. Purpose

1.1 This policy provides guidance in complying with legislation which requires Council to account for and report on assets in the financial statements. For the purposes of this policy, assets refers to Infrastructure, Property, Plant and Equipment.

1.2 The guidance aims to provide information about assets allowing Council to gain a better

understanding of the value and cost of using such assets to provide services, which enables better planning and decision‐making regarding asset acquisition, management and disposal.

2. Scope

2.1 The accounting policies of Council must comply with Australian Accounting Standards. 2.2 Asset accounting involves developing a detailed register of all assets and the setting of

appropriate recognition thresholds. It involves decision‐making on how to categorize assets, determine asset life and depreciation amounts which should reflect the levels of service provided by the asset, how and when to value and revalue assets, how to treat asset impairment, asset disposals, write offs, and other related accounting matters.

2.3 Council’s policies are guided by principles of sustainability including financial,

environmental, good governance, advocacy, regulations and service provision.

THE BAROSSA COUNCIL

ASSET ACCOUNTING POLICY




3. Definitions

Asset An asset is a resource controlled by the Council as a result of past events and from which future economic benefits or costs are expected to flow or be incurred by the Council.

For the purposes of this policy assets refers to Infrastructure, Property, Plant and Equipment. This includes physical assets that meet a pre‐determined threshold and that are used in the course of Council business over more than one accounting period. Examples are roads, bridges, buildings, vehicles, equipment, land, storm and waste water systems.

Carrying amount Carrying amount means (a) in relation to an asset, the amount at which the asset is recorded

in the accounting records as at a particular date. In application to a depreciable asset, carrying amount means the net amount after deducting accumulated depreciation; and

(b) in relation to a class of assets, the sum of the carrying amounts of the assets in that class.

Condition assessment Condition assessment is the technical assessment of the operational and physical conditions of an asset, using a systematic method designed to produce consistent, relevant and useful information.

Core software system Core software systems are as defined in the ICT Strategic Plan.

Componentisation Componentisation relates to assets that are made up of materially significant parts, which in turn have different lifecycles, must be depreciated separately. This is also critical for asset management planning.

Building asset components include:

Substructure: Everything from ground level down including footings / piers and other support structures.

Superstructure: Everything from ground level to ceiling including framework / walling / internal walls, external doors, windows (for identified assets) and other building elements.

Roof Structure: Everything from ceiling and above (including trussing and roof).

Services: All services including Electricity / Water / Gas / Effluent / Sewerage / Stormwater and Communications.

Internal fit‐out: All non‐structural elements including fixed fittings / floor coverings / finishings.

Site services / Infrastructure: All external infrastructure separate to building works including Access roads and paths / landscaping / irrigation / stormwater infrastructure / ornamental features.




Transport Assets and Bridges, Floodways and Major Culverts Assets components include:

Earthworks

Pavement and surface: this is comprised of two components. The first is the bottom layer and forms an in‐situ material that has a long life; the second or top layer has a shorter life and at the renewal intervention point part of the in‐situ material (of component one) is combined with the renewal intervention top layer.

Conceptual framework In financial reporting a Conceptual Framework is a theory of accounting prepared by a standard‐setting body against which practical problems can be tested objectively.

Current replacement cost (CRC)

Current replacement cost is the purchase or construction cost of replacing an asset with a technologically modern equivalent new asset (not a second hand one) with the same economic benefits allowing for any differences in the quantity and quality of output and in operating costs.

Current replacement cost ‐ as new – (CRC‐N)

Current replacement cost ‐ as new is the current cost of replacing the original service potential of an existing asset with a similar modern equivalent asset.

Depreciable amount Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value.

Depreciable replacement value (DRV)

Depreciable replacement value is the cost of an asset less any residual value.

Depreciated replacement cost (DRC)

Depreciated replacement cost (DRC) is the current replacement cost (CRC) of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset.

Depreciation Depreciation is an expense representing the using up of an asset overtime in providing services. It is recognised systematically for the purpose of allocating the depreciable amount of a depreciable asset over its useful life.

Depreciable asset Depreciable asset is an asset having a limited useful life.

Fair value Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (as per definition set out in AASB13).

Impairment loss Impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount.

Intergenerational equity A concept where assets that serve many generations due to their Economic Useful Life are supported equally by the generations that receive benefit from the service provided by the asset.




Land under roads Land under roads includes land under roadways and road reserves, including land under footpaths, nature strips and median strips.

Residual value (RV) Residual value is the estimated amount that an entity would currently obtain from disposal of an asset after deducting the estimated costs of disposal, if the asset was already at the age and in the condition expected at the end of its useful life. The Building, Plant and Equipment asset classes contain selected assets with residual values.

Road Segment Road Segment is a self‐contained part or piece of a road e.g. between intersections or significant changes in material type or maximum lengths.

Stratification Stratification is the classification of data into categories and sub‐categories on the basis of one or more chosen criteria.

Useful economic life Useful economic life is the period of time over which an asset is available to Council to provide a service to the community.




4. Policy Statement

4.1 Classification

Council’s Assets are classified by Land/Buildings & Other Structures/Transport/Bridges, Floodways and Major Culverts/Community Wastewater Management Systems/Stormwater & Drainage/Recreation/Other Infrastructure/Plant & Equipment/Furniture & Fittings in accordance with the table in clause 4.16 “Asset Classification, Capitalisation and Depreciation”.

4.2 Acquisition

4.2.1 Council’s Assets may be acquired by purchase, construction, donation or received free of charge (as in the case of infrastructure assets received from developers in new land divisions).

4.2.2 In all cases of acquisition by purchase or construction, the requirements of

Council’s relevant policies including the Prudential Management and Procurement Policy must be followed.

4.2.3 Assets constructed by the Council will include, where relevant, an appropriate

internal allocation amount to represent indirect labour overheads and the use of Council’s internal plant and machinery on the job. Labour overheads to be based on outdoor labour hours worked and plant & machinery allocation to be based on usage.

4.3 Capitalisation

4.3.1 This capitalisation policy sets the level of expenditure required to recognise an Asset in the accounts of Council . Expenditure below the capital threshold is expensed in the period in which it is incurred.

4.3.2 This policy ensures that Intergenerational Equity is maintained whereby the

expense of capital acquisitions is spread over their Economic Useful Life, through the mechanism of Depreciation, so that those who have the benefit of the assets can be charged, through rates or fees and charges, for their use.

4.3.3 Expenditure threshold limits to recognise Assets in the accounts of Council are

defined in clause 4.16 “Asset Classification, Capitalisation and Depreciation” table. All expenditure not meeting the threshold requirements will be treated as maintenance and expensed to Council’s Statement of Comprehensive Income.

4.3.4 Assets should have a Economic Useful Life of greater than one year to enable

capitalisation of the expenditure and should also meet a materiality test. Materiality levels are set so as not to misstate Financial Statements and to provide




a guide as to whether it is practical from an administrative perspective that expenditure is capitalised.

4.4 Depreciation

4.4.1 The Depreciable Amounts of all Assets, excluding freehold land, will be systematically depreciated over their Economic Useful Lives in a manner which reflects the consumption of the asset to provide the service to the community.

4.4.2 Specific Assets will be recognised at the ‘component’ level as defined in clause 4.16

“Asset Classification, Capitalisation and Depreciation” table.

4.4.3 Components of property, plant and equipment items may be identified using a two test method:

4.5.3.1 Those parts that require replacement at regular intervals (i.e. have a

different useful life), and 4.5.3.2 Those parts that have a cost that is significant in relation to the cost of the

whole item. 4.4.4 Pursuant to Paragraphs 43 to 45 of AASB116, each identified component will be

depreciated separately. 4.4.5 AASB 116 – Property, Plant and Equipment states that “The depreciation method

used shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity.”

4.4.6 Council uses straight line Depreciation for all its Assets on the basis that the

economic benefits, being the service provided by the asset, are generally used in a uniform manner throughout the asset’s useful life as detailed in clause 4.17 “Asset Classification, Residual Value and Revaluation” table.

4.4.7 Consumption based Depreciation is a method based on measuring the level of the

Assets remaining service potential. This method may be described as a sophisticated version of straight line Depreciation. Instead of calculating depreciation in equal components from the Asset Depreciable Amount to the Residual Value, Depreciation is calculated with references to stages in an Assets Economic Useful Life. Hence this method consists of a series of straight line Depreciation calculations reflecting the degradation of the underlying assets condition.

4.4.8 The total Depreciation expense, over the life of an individual asset, is the same for

both the straight line depreciation and the consumption based depreciation methods. It is the annual depreciation expense that is attributed in a given year that generally differs, therefore straight line method results in a consistent depreciation charge across the useful life of the asset, the life that it provides the service to the




community, whereas consumption based depreciation results in a lower annual depreciation expense in the early years of the assets life and a higher annual depreciation expense in the later years of the assets useful life.

4.4.9 Therefore, straight line depreciation is considered the most appropriate measure

for calculating depreciation as it reflects the pattern in which the assets future economic benefits (the service provided) are expected to be consumed.

4.4.10 The Economic Useful Life of specific Assets and therefore the Depreciation rate may

be varied within the range depending on the nature of the asset, asset quality, and environmental and/or operational conditions.

4.5 Revaluation

4.5.1 Pursuant to the Australian Accounting Standard (AASB) 116 section 31‐42 asset revaluations must be made with sufficient regularity to ensure that the Carrying Amount of each Asset in the class does not differ materially from its fair value at the reporting date.

4.5.2 All assets will be revalued at their fair value, which is defined in AASB13. 4.5.3 Typically, Fair Value is taken as being the Depreciated Current Replacement Cost

owing to the specialised nature of the assets and inability to purchase or sell them on the open market. The market approach is used where there is an active and liquid market. The income approach is usually used only with for‐profit entities where the asset generates income/profits then the assets must be measured on either the cost or fair value basis. Market evidence should be used for determining valuations wherever such evidence exists. Where market evidence does not exist Fair Value may need to be estimated by an income or Depreciated Replacement Cost approach.

Depreciated Replacement Cost will be the basis of valuation of structures on

community land. Structures erected or constructed on non‐community land that have a market value will however need to be valued using a market based approach.

4.5.4 Comprehensive revaluations of Assets will be carried out at least every 5 years for

selected asset classes and will be independently revalued where required, including the use of industry unit costs where relevant and available.

4.5.5 More frequent revaluations may be undertaken (via an indexation rate equivalent

to the annual movement in the Local Government Cost Index or, in the case of land, annual movements in property valuations as provided by the Valuer General and/or qualified valuers) in instances where there is a material movement in the Fair Value of a class of Assets.




4.5.6 AASB13 Fair Value Measurement establishes a fair value hierarchy that categorises the inputs to the valuation into three levels:

4.5.6.1 Level 1 inputs are quoted prices (unadjusted) in active markets for identical

assets or liabilities that the entity can access at the measurement date. 4.5.6.2 Level 2 inputs are inputs other than quoted prices included within Level 1

that are observable for the asset or liability, either directly or indirectly. 4.5.6.3 Level 3 inputs are unobservable inputs for the asset or liability. 4.5.6.4 The following diagram provides guidance on the application of levels under

AASB13 and is an example of the relationship between typical asset classifications per AASB116 and asset classes per AASB13.




4.6 Materiality and Revaluation Thresholds 4.6.1 The Conceptual Framework suggests that information is material if its omission or

misstatement could influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size of the item or error judged in the particular circumstances of its omission or misstatement.

4.6.2 In the context of materiality it is not necessary to recognise every Non‐current

Asset in the Statement of Financial Position. For example, a calculator may have a useful life greater than 12 months but its value is small and does not warrant the cost of recording in the asset register, so it is expensed in the year that it is purchased.

4.6.3 Setting thresholds provides the greatest balance between efficiency in

administrative effort associated with maintaining records and the need to expense items, through Depreciation, against more than one financial year so that revenues and expenses are appropriately matched.

4.6.4 Council considers it appropriate to establish Revaluation Thresholds that will result

in Assets of a value greater than a certain level being revalued. 4.6.5 In setting the thresholds Council will give consideration to the number and value of

existing assets and their stratification within the total portfolio. The threshold will be set at a level where even if those assets below the threshold were not revalued, the overall impact on the total portfolio would be immaterial.

4.7 Impairment

4.7.1 A Non‐current Asset is impaired if its Carrying Amount exceeds the amount to be recovered through use or sale of the asset. In such instances, the asset is described as impaired and AASB 136 requires the Council to recognise an impairment loss.

4.7.2 An assessment of asset impairment will be undertaken on an annual basis as at

the reporting date (30 June) in accordance with Australian Accounting Standards including where previously recognised asset impairments no longer exist.

4.7.3 An impairment loss on a non‐revalued asset is recognised as an impairment loss in

the Statement of Comprehensive Income. An impairment loss on a revalued asset is recognised directly against any revaluation reserve for the asset to the extent that the impairment loss does not exceed the amount in the revaluation reserve for that same class of asset.




4.8 Disposal of Non‐Current Asset which has a value attached to it

Assets will be disposed of in accordance with Council’s Disposal of Land or Other Assets Policy.

4.9 Write‐off

4.9.1 An asset is written‐off when: o The asset is obsolete and/or beyond economical repair and/or retains no

further service potential and cannot be sold; o The asset is faulty or damaged and carries a potential risk (the asset should be

scrapped or destroyed and not sold); o A physical stocktake fails to locate the asset; o The asset is known to have been stolen; o The asset has been demolished.

4.9.2 Authority to approve asset write‐offs is restricted to the CEO or relevant Director.

An Asset Disposal Form must be completed for all assets written off.

4.10 Physical Inspection / Safekeeping

4.10.1 All members of staff to whom assets are assigned are responsible for the safeguarding of assets provided for their use. The person responsible for the asset is required to notify the Manager Assets and Infrastructure of any movement of, damage to, or loss of assets.

4.10.2 A physical Stocktake of Plant & Equipment and Furniture & Fitting assets is

undertaken periodically. Such stocktakes ensure that such assets continue to be appropriately accounted for.

4.11 Insurance

4.11.1 Council will ensure that its Non‐current Assets are appropriately insured. 4.11.2 The Manager Assets and Infrastructure and Risk Manager will ensure that asset

acquisitions and disposals are accurately accounted for in Council’s asset insurance schedule.

4.11.3 The Risk Manager is responsible for negotiating appropriate insurance values with

Council’s insurers. 4.12 Recognition

4.12.1 An Asset is recognised in the Statement of Financial Position when it is probable that the future economic benefits will flow to the entity and the Asset has a cost or value that can be measured reliably.




4.12.2 Identified non Council (including CFS assets) and community buildings, structures and associated assets (on Council owned land or Crown Land that is under the control of Council) that are managed under executed land only lease agreements will not be valued in Councils asset register and therefore will not be depreciated. Council will only recognise these assets in the event of expiration/termination of the lease and the abandonment of the building and associated assets, unless the lease agreement specifies otherwise. In the event of a loss, it is recognised that Council may not necessarily replace the building and associated assets. Council may still conduct insurance valuations as per terms of lease agreements currently in place.

For any assets on Council’s asset register that would not be replaced, disposal value

is the appropriate valuation basis in such circumstances 4.13 Measurement at Recognition

An Asset that qualifies for recognition as an Asset shall be measured at its cost. Cost is determined as the Fair Value of the assets given as consideration plus costs incidental to the acquisition at no cost, or for a nominal cost; the cost is its Fair Value as at the date of acquisition.

4.14 Accounting for Land Under Roads

4.14.1 Pursuant to clause 8 of AASB 1051, Council elects not to recognise as an Asset, land under roads as they cannot be reliably valued.

4.14.2 Council is required to disclose its accounting policy regarding such as a note to the

annual financial statements.

4.15 Accounting for Trees 4.15.1 Whilst the initial cost of trees can be reliably measured (including costs of planting),

which is part of the asset determination process, individually they do not meet the capitalisation materiality threshold of $5,000 and therefore should not be recognised as an asset in Council’s Statement of Financial Position.

4.15.2 Regardless of value, no tree will be capitalised, and their purchase and planting

costs will be subsequently expensed to the Statement of Comprehensive Income. 4.15.3 As the primary purpose of planting trees within the Council is for recreational and

environmental purposes, as opposed to ‘selling’ the trees as part of an agriculture activity, Accounting Standard AASB 141 Agriculture does not apply.




4.15.4 It is noted that Council sells native seedlings through the operations of the Bushgardens but this is considered to be immaterial for the application of this policy.




4.16 Asset Classification, Capitalisation and Depreciation table

Asset Class

Asset Groups/Types within Class

Type Sub‐Classification/

Component Determining

Factor Capital Operating (including maintenance)

Land Assets Land Land No Capitalisation threshold is applied to the acquisition of land, interests in land or assets acquired (e.g. from land developments)

Land Under Roads per AAS27A

Buildings – Market Value

If determined as valued at Markey Value according to table 4.5.6.4, no threshold appliesUpgrade and extensions to asset

Reactive maintenance and repair Programmed maintenance Component replacement < 10% of the component DRV or < $50,000

Buildings ‐ valued over $100,000 recorded at component level

Substructure

Components

Building & Other Structures

Depots, Offices / Libraries, Aged & Disabled Services, Fire Service, Cemeteries, Halls, Community, Recreation, park/Garden, Sporting Reserve, CWMS, Carpark, Transfer Station, Bushgardens.

Superstructure Upgrade, extensions or replacement of component > 10% of the component DRV or > $50,000

Roofing

Town Hall solid flooring only

Internal Fit‐out

Services

Buildings – not componentised and/or valued under $100,000 recorded as one asset

New & Upgrade > $20,000 Replacing asset > 10% of the DRV

Reactive maintenance and repair Programmed maintenance All other maintenance of any component of the building based on Decision Tree criteria

Toilets ‐ recorded as one asset

New & Upgrade > $20,000 Replacing asset >10% of the DRV

Sheds, Garages, Pavilions and Shipping Containers ‐ recorded as one asset


Reactive maintenance and repair Programmed maintenance All other maintenance of any component of the building based on Decision Tree criteria

Pergola, Cabins, Carports, Gazebo, Shelters, & other Structures ‐recorded as one asset





4.16 Asset Classification, Capitalisation and Depreciation table cont’d….

Asset Class





Transport Road – Earth, Pavement, Surface

& Seal, Footpath, Kerbing, Carparks

Sealed Roads

Sealed Roads – Earth

Road hierarchy & construction type

If satisfying at least one of the following conditions:

All Resealing (other than patching that constitutes a segment of road)

All other reconstruction and renewal work > $20,000

Expenditure > 10% of the DRV of the component

Any new assets acquired (e.g. from land developments)

Any linemarking undertaken in conjunction with these works will be capital

Reactive maintenance and repair to road assets not meeting capitalisation criteria Programmed maintenance (partial sealed road surfacing <$10,000, pothole repair) not meeting capitalisation criteria Line Marking, road cleaning and sweeping as part of programmed maintenance Shoulder grading

Sealed Roads – Pavement (includes shoulders)

Sealed Roads ‐ Surface

Sheeted Roads

Sheeted Roads ‐ Earth If satisfying at least one of the following

conditions:

Resheeting (other than patching that constitutes more than a segment of road)

Estimated work > $15,000

Projects requiring > 200 tonnes of material

Reactive maintenance and repair to road assets(pothole repair) not meeting capitalisation criteria Programmed maintenance (unsealed road grading) not meeting capitalisation criteria

Sheeted Roads – Pavement or Surface

Formed and Unformed Roads

Unformed ‐ Earth Any new assets acquired free of charge Any work carried out will be expensesd

Footpaths / Kerbs / Carpark Structures

Carpark surfaces Level of usage

All new, upgrade or replacement work > $10,000 Any new assets acquired (e.g. from land developments)

All repairs and maintenance,replacement or upgrades that constitute <$10,000 Reactive maintenance to kerb and gutter assets (repair, replacement of small lengths)

Footpaths

Construction type Kerb

Bridges, Floodways and Major Culverts

Bridges, Floodways, Major Culverts & Footbridges

Road Bridge Construction type

Construction work > $15,000

All repairs and maintenance Replacement or upgrades that constitute <$15,000 Footbridges

Floodways

All bridge barrier replacement is deemed to be maintenance





Asset Class






Pipework, Wastewater Treatment Plant, Lagoon, Pumping Stations

CWMS – Pumping Stations

Frequency of use

All construction / replacement work on existing assets > $5,000 Any new assets acquired (e.g. from land developments)

CWMS – Lagoons Construction type

Reactive maintenance to drainage assets (pipe repair, pit repair, pit component replacement, drainage structure repair)

CWMS – Waste Water Treatment Plant

Type of asset

Programmed maintenance (cleaning, inspections)

CWMS –Pipes – Gravity Main

CWMS –Pipes – Gravity Property Connection

CWMS –Pipes – Rising Main

Stormwater & Drainage

Cross Drains, Stormwater Drains, Drainage Channels, Floodways

Cross Drains

All construction work > $5,000 Any new assets acquired (e.g. from land developments)

Reactive maintenance (repairs, cleaning) Swales, drainage shaping where no material added Programmed maintenance (cleaning, inspections)

Drainage Channels

Stormwater Other Floodways

Recreation Recreation Infrastructure, Parks & Gardens Infrastructure, Sporting Reserve Infrastructure

Infrastructure ‐ Various

All infrastructure expenditure including replacement > $5,000 New assets acquired (e.g. from land developments)

Reactive maintenance (repairs, cleaning) Programmed maintenance (painting, servicing)





Asset Class





Other Infrastructure

Fire Service, Cemetery, Community, Waste Management, Fence, Monuments & Statues, Bushgardens

Fences Construction

type All (expenditure > $5,000

Reactive maintenance (fence repair, gate repair, graffiti removal, vandalism repairs)

Monuments / Statues

Construction type New assets acquired (e.g. from land

developments) Programmed maintenance (painting, cleaning)

Other assets

Plant & Equipment

Plant (Includes vehicles & machines), Community, Recreation, Equipment (Includes computers, printers)

Major Plant and Equipment

Plant & Machines Asset type

Individual assets > $5,000

Reactive maintenance Programmed servicing

Vehicles (i.e. sedans, utes, vans, trucks etc)

Asset type Expenditure < $5,000 for individual assets

Minor Plant and Equipment

Other Equipment Construction type

Expenditure >$5,000 for individual hardware assets or assets that can be easily grouped.

Expenditure < $5,000 for individual assets or assets that can be grouped

Hill and Son Historic Pipe Organ

Other Equipment Asset type Expenditure > $20,000 for individual components of the organ

Expenditure < $20,000 for individual components, expenditure to maintain the functioning of the organ

ICT & Office Equipment and software (including one off licence fees)

Computer Equipment:

Asset type

Expenditure >$5,000 for individual hardware assets, or assets that can be easily grouped. Costs associated with the purchase or major upgrades of core operating systems >$15,000. One‐off licence fees >$15,000.

Individual hardwareassets/assets that can be easily grouped.

Expenditure <$5,000 for individual assets or assets that can be grouped. All minor upgrades to core operating systems. Annual software licence and maintenance fees

Purchase or major upgrades of core operating systems

Furniture & Fittings

Office & Library, Recreation, Parks & Gardens, Sporting Reserve, Community, Street Furniture, Road Traffic Devices, Main Street

Expenditure >$5,000 for individual or assets that can be easily grouped.

Expenditure <$5,000 for individual assets or assets that can be grouped.




4.17 Asset Classification, Residual Value and Revaluation table

Asset Class Asset

Groups/Types within Class

Type Sub‐

Classification/ Component

Useful Life Range (years)

Residual Value Revaluation & Condition

Assessment Cycle Revaluation Methodology

Land Assets Land Land

N/A N/A

Regular in‐house investigation of the fair value. Every 3 years a full assessment is made to check if there needs to be a revaluation. In any event in the fifth year a full revaluation will be conducted.

In‐house investigation of the fair value if indicators show material change then an independent sample of 10% is applied to all assets. Independent valuation using Market Fair Value Inputs as provided by the State Valuation Office for Council land

Building & Other Structures

Depots, Offices / Libraries, Aged & Disabled Services, Fire Service, Cemeteries, Halls, Community, Recreation, park/Garden, Sporting Reserve, CWMS, Carpark, Transfer Station, Bushgardens

Buildings ‐ Market value

20 ‐ 100 N/A

In‐house investigation of the fair value every year. Every 3 years a full assessment for the need of a revaluation is undertaken. In any event in the fifth year a full revaluation will be conducted. Separate components may have independent condition assessments conducted. In the fifth year a full condition assessment will be conducted.

In‐house investigation of the fair value, if indicators (using LGPI Capital Index) show material change then a sample of 10% is applied to all assets.Independent valuation using Market Fair Value Inputs. In‐house investigation of the fair value, if indicators (using LGPI Capital Index) show material change then a sample of 10% is applied to all assets. Periodically a review of the Fair Value ‐ Replacement Cost will be undertaken using the Rawlinsons Construction Manual for the current construction costs. A revaluation threshold to exclude low value immaterial assets for revaluation purposes will be calculated based on the total asset class.

Buildings ‐ valued over $100,000 recorded at component level

Substructure 40 ‐ 300 N/A

Superstructure 20 ‐ 300 N/A

Roofing 40 ‐ 60 N/A

Town Hall solid flooring only

150 N/A

Internal Fit‐out 20 – 25 N/A

Services 20 ‐ 100 N/A

Buildings – not componentised and/or valued under $100,000 recorded as one asset

20 ‐ 100 N/A

Toilets ‐ recorded as one asset

20 ‐ 100 N/A

Sheds, Garages, Pavilions and Shipping Containers ‐ recorded as one asset

20 ‐ 100 N/A

Pergola, Cabins, Carports, Gazebo, Shelters, & other Structures ‐recorded as one asset

20 ‐ 100 N/A




4.17 Asset Classification, Residual Value and Revaluation table cont’d….

Asset Class Asset


Type Sub‐





Transport

Road – Earth, Pavement, Surface & Seal, Footpath, Kerbing, Carparks

Sealed Roads

Sealed Roads ‐ Earth

1,000 N/A

Regular review to indicators (LGPI Capital Index) show a material change then a 10% sample will be selected and compared to the current construction costs. Where there is a material difference, apply the LGPI capital index to all transport assets. Periodically an independent consultant will be engaged to provide unit rates for all asset types within this class in order to carry out the revaluation.

Independent valuation using Unit Rates to check against local build costs

Sealed Roads –Pavement (includes shoulders) ‐ 2 components

1:45 – 150 2:500?

N/A

Sealed Roads –Surface ‐ 2 components

1:15 – 30 2:90

N/A

Sheeted Roads

Sheeted Roads – Earth

1,000 N/A

Sheeted Roads– Pavement or Surface ‐ 2 components

1:12‐28 2:500

N/A

Unformed Roads Unformed Roads ‐ Earth

1,000 N/A

Footpaths / Kerbs / Carpark Structures

Carpark Surfaces ‐ 2 components

1~30 – 50 2~150

N/A

Footpaths 30‐ 100 N/A

Kerb 70‐100 N/A

Bridges, Floodways and Major Culverts

Bridges, Floodways, Major Culverts & Footbridges

Road Bridge ‐ 2 components

1:Up to 100 2:300

N/A Every year if indicators (LGPI Capital Index) show a material change an independent unit rate is applied to all assets. Every 5 years a full revaluation is undertaken. In‐house and/or engineering consultant to be engaged to undertake a condition assessment.

Independent valuation using Unit Rates to check against local build costs

Footbridges ‐ 2 components

1:Up to 100 2:300

N/A

Floodways Floodways ‐ 2 components

1:Up to 80 2:250

N/A





Asset Class Asset


Type Sub‐






Pipework, Wastewater Treatment Plant, Lagoon, Pumping Stations

CWMS –Pumping Stations

10 to 50 N/A Every year if indicators (LGPI Capital Index) show a material change an independent unit rate is applied to all assets. Every 5 years a full revaluation is undertaken. Rolling condition assessment to be undertaken in‐house and independent overview as needed. In any event in the fifth year every asset type a sample condition assessment will be conducted.

Independent valuation using Unit Rates to check against local build costs.

CWMS –Lagoons ‐ Components

40 to 100 N/A

CWMS – Waste Water Treatment Plant ‐ Components

5 to 50 N/A

CWMS –Pipes – Gravity Main

60 to 80 N/A

CWMS –Pipes –Gravity Property Connection

80 to 100 N/A

CWMS –Pipes –Rising Main

65 N/A

Stormwater & Drainage

Cross Drains, Stormwater Drains, Drainage Channels

Cross Drains 25 ‐ 150 N/AEvery year if indicators (LGPI Capital Index) show a material change an independent unit rate is applied to all assets. Every 5 years a full revaluation is undertaken.

Independent valuation using Unit Rates to check against local build costs.

Drainage Channels

25 ‐ 150 N/A

Stormwater Other

150

N/A

Rolling condition assessment to be undertaken in‐house and independent overview as needed. In the fifth year every asset type a sample condition assessment will be conducted





Asset Class Asset


Type Sub‐





Recreation

Recreation Infrastructure, Parks & Gardens Infrastructure, Sporting Reserve Infrastructure

Infrastructure ‐ Various

15 ‐ 100

N/A

As these assets are less than 5% of the base value of assets they do not require mandatory condition assessments and revaluations under the Accounting Standard.

Replacement Cost. A revaluation threshold of $10,000 exists that excludes low value assets for revaluation purposes.

Other Infrastructure

Fire Service, Cemetery, Community, Waste Management, Fence, Monuments & Statues, Bushgardens

Fences 40 N/A

As these assets are less than 5% of the base value of assets they do not require mandatory condition assessments and revaluations under the Accounting Standard.

Replacement Cost Monuments / Statues

100 N/A

Other assets 10 ‐ 100 N/A

Plant & Equipment

Plant (Includes vehicles & machines), Community, Recreation, Equipment (Includes computers, printers)

Major Plant and Equipment

Plant & Machines

4 ‐ 10 20% of CRC RV for selected items

These assets are held at cost and due to the nature of the assets and the frequency of replacement it is not considered necessary to carry out revaluations or condition assessments.

Replacement Cost

Vehicles (i.e. sedans, utes, vans, trucks etc)

5 ‐ 33 N/A

Minor Plant and Equipment

Other Equipment

Up to 10 N/A

Hill and Son Historic Pipe Organ

Other Equipment

300 N/A

ICT & Office Equipment and software (including one off licence fees)

Computer Equipment: Individual hardware assets/assets that can be easily grouped. Purchase/major upgrades of core operating systems

5 ‐ 33

N/A





Asset Class Asset


Type Sub‐





Furniture & Fittings

Office & Library, Recreation, Parks & Gardens, Sporting Reserve, Community, Street Furniture, Road Traffic Devices, Main Street

10‐25

N/A

These assets are held at cost and due to the nature of the assets and the frequency of replacement it is not considered necessary to carry out revaluations or condition assessments.

Replacement Cost




4.18 Classifying Operating/Capital Expenditure Decision Tree

Is expenditure related to the day to day operations ofCouncil? (e.g. phone, subscriptions, stationery,

advertising ) Yes

NoOPERATING EXPENDITURE

Is expenditure related to maintaining an asset in use without increasing its service potential / level of supply or life expectancy ? (e.g. repairs - potholes, fencing, minor

pipework, general damage, wear & tear )

Yes

No

Is expenditure related to renewing an asset which increases its service potential / level or life beyond original

expectations ? (e.g. Resheeting / Resealing a road, replacing section of drainage network)

Yes

No

Is expenditure related to extending / expanding an asset at the same standard currently experienced by users to a

new group of users to meet an increase in demand ? ( e.g.road / drainage network )

Yes

No

Is expenditure related to upgrading the standard / quality of an existing asset to provide a higher level of service tousers? (e.g. replacing drainage capacity, increasing road

widths, building addition) Yes

No

Will expenditure significantly reduce the cost of maintainingan existing asset ?

Yes

Is there a cost estimation or other valuation methodology that can be used to measure the

cost reliably and accurately for asset recognition purposes in Councils financial statements ?

No

No Yes

Will expenditure result in a probable future economicbenefits to Council ? ( e.g. Research study ) Yes

Does the estimation / valuation of the itemexceed the capital recognition threshold with

regard to the asset class to which it relates ? - Refer attached threshold schedule for

determination

No

No Yes

CLASSIFYING OPERATING/CAPITAL EXPENDITURE

Assessment Flowchart




5. Supporting Documentation

Register of Capital Assets ‐ Conquest

Lease Register (Section 4.10)

TBCFOR4601 Asset Disposal Form

Annual Review of Useful Life and Valuations (AASB116 section 50 and 51)

Asset Impairment Review Process (Section 4.7)

Stocktake of Plant and Equipment Process

Asset Revaluation and Condition Assessment Program Report (covers current financial year and subsequent 2 years)

6. Related Policies

Asset Management Policy

Asset Management Strategy

TBCPOC4750 Disposal of Land or Other Assets Policy

TBCPOC1500 Motor Vehicle Policy

TBCPOC4050 Procurement Policy

7. References

International Financial Reporting Standards (IFRS)

Accounting Standard AASB116 – Property Plant and Equipment

Accounting Standard AASB136 – Impairment of Assets

Accounting Standard AASB13 – Fair Value Measurement

Accounting Standard AASB108 – Accounting Policies, Changes in Estimates and Errors

Accounting Standard AASB1051 – Land Under Roads

Accounting Standard AASB141 ‐ Agriculture

CPA Australia and the Australian Asset Management Collaborative Group ‐ Guide to the valuation and depreciation of not‐for‐profit and public sector physical assets under accrual based accounting standards

Australian Infrastructure Financial Management Guidelines – Update January 2011

Framework for the Preparation and Presentation of Financial Statements – Australian Accounting Standards Board – December 2007

International Accounting Standards (IAS) Property, Plant and Equipment (paragraph 6)

South Australian Model Financial Statements 2014 – Local Government Association of South Australia

Councils Asset Class Revaluation & Condition Assessment Program

8. Review

This Policy shall be reviewed by Director Corporate and Community Services in consultation with the relevant stakeholders, within four years or more frequently if legislation or Council needs change.




9. Further Information

This policy is available for inspection at the Council offices at 43‐51 Tanunda Road, Nuriootpa and all Council branches, during ordinary business hours. It is also available for inspection, download or printing, free of charge, from Council’s web site: www.barossa.sa.gov.au. Any grievances in relation to this policy or its application should be forwarded in writing addressed to the Chief Executive Officer of Council, PO Box 867, Nuriootpa SA 5355.

SIGNED: …………………………………………….. Mayor

DATED: _____/_____/_____

AUDIT COMMITTEE


REPORT

24 JUNE 2015 7.2.2 FUNDING POLICY B1434 INTRODUCTION The Funding Policy was previously adopted by Council on 22 June 2009. The Policy to be emailed to Members of the Audit Committee on Monday 22 June 2015 as the Policy is undergoing its final internal consultation. Following the review process, the updated Policy will be presented to the Council for consideration and adoption. RECOMMENDATION That the Funding Policy as revised be recommended to Council for adoption.

COMMENT The Policy focusses on these key areas: Long Term Financial Plan, Annual Budget and Business Plan, Grants, General and Other Rates, User Charges, Borrowings and Private Sector Contributions and Partnerships. The policy has been redrafted with wording simplified and supporting documentation. Content including definitions relevant to the Barossa Council has been taken from the LGA information papers 1, 9 and 20. The amended Policy includes the supporting document the Grant Funding Register and links to the processes Budget & Business Plan and Review and Due Diligence Report along with the Sundry Debtor guidelines. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Australian Accounting Standards Council Strategic Plan 4.1 – Responsibility

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial This Policy sets out Council’s approach to the funding of services

Resource It provides the framework within which Council will raise the revenue necessary to fund expenses of programs and provide the necessary resources, set out in its Long Term Financial Plan and the Annual Budget and Business Plan. Risk The Policy is based on an assessment of the beneficiaries of all of Council’s services and how these should be funded. COMMUNITY CONSULTATION Council Policy for funding is undertaken in compliance with legislation and Council requirements for asset management. Once the Policy is adopted by Council, it will be updated and available for the Community to access on Council’s website.

Funding Policy approved by Council/CEO on dd of mm, 2014 Page 1 of 5


THE BAROSSA COUNCIL

FUNDING POLICY

Strategic Plan Outcome: 4.1 Governance and Organisation ‐Responsibility


Policy Owner: Director – Corporate and Community Services


Responsible Officer: Manager Financial Services TRIM Reference: 09/38784

Date Approved: Next Review Date: 1/6/2019

1. Purpose 1.1 This Policy sets out Council’s approach to the funding of services. 1.2 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 and the Annual Budget and Business Plan.

2. Scope This policy covers the following:

Long Term Financial Plan

Annual Budget and Business Plan

Grants

General and Other Rates

User Charges

Borrowings

Private Sector Contributions and Partnerships.

3. Definitions Asset Sustainability Ratio

The Asset Sustainability Ratio indicates the extent to which existing non‐financial assets are being renewed and replaced, compared with the asset renewal and replacement expenditure identified as warranted in Council’s Infrastructure and Asset Management Plan’s (IAMP).Council’s Infrastructure and Asset Management Plan (IAMP). It is calculated by measuring capital expenditure on renewal or replacement of assets for a period, divided by the optimal level of such expenditure proposed in a Council’s IAMP. Council’s IAMP.

Financial Sustainability

A Council’s long term financial performance and position is sustainable where planned long term service and infrastructure levels and standards are met without unplanned increases in rates or disruptive cuts to services.

Financing Financing describes how payment for an outlay is accommodated. This could be, for example, through a Council accessing its own funds (e.g. cash held in a bank account) or by an arrangement to use another entity’s funds (e.g. by taking out a loan – also referred to as a borrowing)



Fully Attributed Costs

A system under which all costs, including indirect and overhead costs, are allocated to a function, activity, good or service on a reliable and consistent basis.

Funding Funding refers to the raising of revenue. e.g. through rates, user charges, or the receipt of grants, subsidies and contributions.

Inter‐generational Equity (or fairness)

Involves the costs associated with expenditure being spread over time in accordance with the distribution of the benefits that are generated. Hence, an equitable tax system is one under which the taxes paid by each generation is in proportion to the benefits that generation receives from Government spending. It is commensurate with spreading costs in relation to the pattern of benefits over time so that one generation is not excessively subsidising another generation.


Key Performance Indicators also known as Financial Indicators and associated targets have been developed both in the public and private sectors to assist organisations and others who are interested in an entity’s financial performance, to understand the messages that its financial statements contain and help guide revenue and expenditure decisions and overall budget strategies.

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

user or beneficiary pays and capacity to pay of different sections of the community;

costs of provision of services and, where relevant, prices charged by others for provision of similar services;

maximising sourcing of external Funding;

accommodating circumstances of financial hardship; and

achieving and preserving reasonable Inter‐Generational Equity.

4.1 Long Term Financial Plan

4.1.1 Council has a 10 year Long Term Financial Plan (LTFP) that sets out the Funding (revenue raising) and financing (paying for outlays) requirements for services to be provided to equitably meet identified community needs and preferences as documented in the strategic management plans .

4.1.2 The LTFP has also been based on achievement of the targets set by Council for its Key

Performance Indicators, as follows:

To ensure Inter‐Generational Equity and Financial Sustainability in the long term, Council will plan to budget for long term sustainability as outlined in the key performance indicators within adopted target values and/or ranges and recorded in the Annual Budget and Business Plan. The LTFP will ensure that annual capital expenditure programs for renewal and replacement of assets closely match related amounts included in Council’s Infrastructure & Asset Management Plans and reviewed annually for current information.

4.2 Annual Budget and Business Plan

The Annual Budget and Business Plan (AB&BP) is based on the first year of the LTFP. Council will manage its AB&BP’s financial strategy for funding to ensure attainment of specified financial indicator targets for the year. 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 and other funding or disruptive cuts to services.

4.3 Grants

4.3.1 Financial Assistance and Other Discretionary Grants

Council will continue to deliver on projects and provide timely and accurate information as requested by the relevant grant funding bodies to ensure that it receives its appropriate Funding allocation. Grant funding includes but is not limited to Financial Assistance Grants and Roads to Recovery Grants.

4.3.2 Special Purpose Grants

4.3.2.1 Council recognises that opportunities arise from time to time to secure grants or Funding for specific projects or purposes.

4.3.2.2 Council will pursue such opportunities where the Funding objectives support

the directions of its strategic management plans and its Financial Sustainability objectives (in line with the Budget and Business Plan and Review Policy ‐ Council Reports for Additional Expenditure).

4.3.2.3 Council will assess the Whole‐Of‐Life Costs using the Due Diligence Report (as

referred to in the Prudential Management Policy) of a project considered for a special purpose grant or Funding application (including maintenance and other operating costs over the life of the project). Council will consider the impact of these costs on the Financial Sustainability indicators over the life of the project when considering a special purpose grant or Funding opportunity.

4.3.3 Grant Funding Register

Council maintains a Grant Funding Register that includes relevant information (including income and expenditure) of each grant received during the financial year.

4.4 General and Other Rates

4.4.1 Council will raise general and other rates from its community in accordance with its Rating Policy.

4.4.2 The Rating Policy sets out its application of the following rating provisions contained in the

Local Government Act, 1999:

General differential rates and fixed charges

Separate rates

Service rates and charges

Residential rate capping

Mandatory and Discretionary rate rebates

Remission and postponement of rates.

4.4.3 Council ensures that revenue from rates funds a substantial part of the cost of Council services and activities that are widely available to ratepayers.



4.5 User Charges

4.5.1 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 fully attributed costs for each service, the benefits to direct users and others from the provision of the services and prices charged elsewhere for similar services.

4.5.2 Council’s user charges are reviewed and set annually as part of the adopted Fees and

Charges Register for the ensuing year. 4.5.3 Where fees and charges are not required to be paid at the time of receipt of a good or

service, a sundry debtor invoice is raised. The payment of the debtors invoice to collect any overdue debt is managed through the Debt Recovery Policy.

4.6 Borrowings

4.6.1 Council recognises that borrowings are a source of financing. 4.6.2 Council manages decisions about when to borrow and what type of borrowings to raise in

accordance with its Treasury Management Policy.

4.7 Private Sector Contributions/Partnerships

Council will seek private sector funding for projects e.g. through joint venture, contributions towards infrastructure or other assets, where this is considered attainable, practical and beneficial to the community. In assessing the community benefit of such arrangements, Council will take account of its financial exposure through the Due Diligence Report processes.


TBCREG4201 Grant Funding Register ‐ 14/17224

TBCPRO4409 Budget & Business Plan and Review Process – 14/36055

Infrastructure & Asset Management Plans

Fees & Charges Register

Long Term Financial Plan – Annual update flowchart

Due Diligence Report Process

Sundry Debtor guidelines

6. Related Policies

TBCPOC4400 Budget & Business Plan and Review Policy

TBCPOC4150 Treasury Management Policy

TBCPOC4550 Rating Policy

TBCPOC4050 Prudential Management Policy



7. References Local Government Act 1999:

Section 122

Section 123

Section 133

Sections 146‐166

Sections 182 and 182A Local Government (Financial Management) Regulations 20112011 Part 2

8. Review This Policy shall be reviewed by the Council in consultation with the relevant stakeholders, within four years or more frequently if legislation or Council needs change.

9. Further Information This policy is available on Council’s website www.barossa.sa.gov.au. It can also be viewed electronically at Council’s principal office at 43‐51 Tanunda Road, Nuriootpa and all Council branches, during ordinary business hours. A copy of this Policy can be obtained at those venues upon a payment of a fixed fee. Any complaint in relation to this policy or its application should be forwarded in writing addressed to the Chief Executive Officer, PO Box 867, Nuriootpa SA 5355.

SIGNED:

……………………………………………..

Mayor

DATED: _____/_____/_____

AUDIT COMMITTEE


REPORT

24 JUNE 2015 7.2.3 TREASURY MANAGEMENT POLICY B1433 INTRODUCTION The Treasury Management Policy was previously adopted by Council on 15 June 2010. The Policy to be emailed to Members of the Audit Committee on Monday 22 June 2015 as the Policy is undergoing its final internal consultation. Following the review process, the updated Policy will be presented to the Council for consideration and adoption. RECOMMENDATION That the Treasury Management Policy as revised be recommended to Council for adoption.

COMMENT The policy has been redrafted with wording simplified and supporting documentation. The Policy focusses on 4 key areas: Treasury Management Strategy, Borrowings, Investments and Reporting. Content including definitions relevant to the Barossa Council has been taken from the LGA information papers 1, 9, and 15. The amended Policy includes the correlation to the processes in the Annual Budget & Business Plan and Review, the annual review of the Long Term Financial Plan and the requirements of the Prudential Management Policy along with inclusion of conditions for Loans to and/or as Guarantor for Community Groups. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Australian Accounting Standards Council Strategic Plan 4.1 – Responsibility

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial This Policy underpins Council’s decision-making regarding the financing of its operations as documented in its Annual Budget and Business Plan (AB&BP) and Long Term Financial Plan (LTFP) together with associated projected/actual cash flow of receipts and payments.

Resource This Policy is designed to provide clear direction to Council and its Officers and to adequately resource the Treasury Management function. Risk The Policy establishes a decision framework to ensure that: • Funds are available as required to support approved payments. • Interest rate and other risks (e.g. liquidity and investment credit risks) are

acknowledged and responsibly managed. • The net interest costs associated with borrowing and investing are

reasonably likely to be minimised (on average) over the longer term. COMMUNITY CONSULTATION Council Policy for funding is undertaken in compliance with legislation and Council requirements for asset management. Once the Policy is adopted by Council, it will be updated and available for the Community to access on Council’s website.

Treasury Management and Investment Policy approved by Council/CEO on dd of mm, 2014 Page 1 of 7



THE BAROSSA COUNCIL TREASURY MANAGEMENT POLICY

Strategic Plan Outcome: 4.1 Governance and Organisation ‐Responsibility


Policy Owner: Director Corporate and Community Services


Document Control: Manager Financial Services TRIM Reference: 10/23662


1. Purpose 1.1 This Policy is designed to provide clear direction to Council and its Officers in relation to the

Treasury Management function. It underpins Council’s decision‐making regarding the financing of its operations as documented in its Annual Budget and Business Plan (AB&BP) and Long Term Financial Plan (LTFP) together with associated projected/actual cash flow of receipts and payments.

1.2 This Policy establishes a decision framework to ensure that:

funds are available as required to support approved payments;

the interest rate and other risks (e.g. liquidity and investment credit risks) are acknowledged and responsibly managed; and

the net interest costs associated with borrowing and investing are reasonably likely to be minimised (on average) over the longer term.

2. Scope 2.1 This Policy is to be applied by Council and its Officers involved in the Treasury Management

function. 2.2 This Policy covers the following areas of Treasury Management:

Treasury Management Strategy

Borrowings

Investments

Reporting 3. Definitions Asset Sustainability Ratio

The Asset Sustainability Ratio indicates the extent to which existing non‐financial assets are being renewed and replaced, compared with the asset renewal and replacement expenditure identified as warranted in Council’s Infrastructure and Asset Management Plan’s (IAMP). It is calculated by measuring capital expenditure on renewal or replacement of assets for a period, divided by the optimal level of such expenditure proposed in a Council’s IAMP.




Financial Sustainability

A Council’s long term financial performance and position is sustainable where planned long term service and infrastructure levels and standards are met without unplanned increases in rates or disruptive cuts to services.

Intergenerational Equity (or fairness)

Involves the costs associated with expenditure being spread over time in accordance with the distribution of the benefits that are generated. Hence, an equitable tax system is one under which the taxes paid by each generation is in proportion to the benefits that generation receives from Government spending. It is commensurate with spreading costs in relation to the pattern of benefits over time so that one generation is not excessively subsidising another generation.


Key Performance Indicators also known as Financial Indicators and associated targets have been developed both in the public and private sectors to assist organisations and others who are interested in an entity’s financial performance, to understand the messages that its financial statements contain and help guide revenue and expenditure decisions and overall budget strategies.

LGFA Local Government Finance Authority (LGFA) – A Government guaranteed statutory authority established for the benefit of councils and other Prescribed Local Government Bodies within the State.

Net Financial Liabilities Ratio

Net financial liabilities equals total liabilities less financial assets (excluding equity accounted investments in Council businesses). The Net Financial Liabilities Ratio is calculated by expressing net financial liabilities at the end of a financial year as a percentage of operating income for the year.

Officer An Officer of Council is a person employed pursuant to an employment contract and or engaged under a relevant industrial instrument such as the relevant enterprise agreement.

Operating Surplus Ratio

The operating surplus ratio is the operating surplus (or deficit) expressed as a percentage of operating income. An operating surplus (or deficit) arises when operating income exceeds (or is less than) operating expenses for a period (usually a year).

Reserves Councils may use “reserve accounting” as a useful means of recognising and planning for future proposals. A Council may therefore establish various equity accounts (or “reserves”) within its balance sheet to identify an allocation for future purposes. Reserves are not cash backed unless required by legislation or agreement with other parties.

Surplus Funds Funds over and above a level which is required to meet Council’s immediate working capital requirements.

Treasury Management

The management of Council cash, investments, Reserves, borrowings and other financing mechanisms

4. Policy Statement 4.1 Treasury Management Strategy

4.1.1 Council’s operating and capital expenditure decisions are made on the basis of:

the identified community need and benefit relative to other expenditure options;

the cost effectiveness of the proposed means of service delivery; and




the affordability of proposals having regard to Council’s long term Financial Sustainability (including consideration of the cost of capital and the impact of the proposal on Council’s Operating Surplus Ratio, Asset Sustainability Ratio and Net Financial Liabilities ratio).

4.1.2 Council manages its finances holistically in accordance with its overall Financial

Sustainability strategies and targets. This means Council will:

maintain target ranges for its Net Financial Liabilities ratio, ie that the ratio will not exceed 100% of total operating revenue;

not retain and quarantine money in Reserves for particular future purposes unless required by legislation or agreement with other parties;

generally only borrow funds when it needs cash and not specifically for particular projects, ie use available surplus cash and investments before undertaking a new borrowing ; and

consider the use of any funds that are not immediately required to meet approved expenditure for reducing the current level of borrowings.

4.2 Borrowings

4.2.1 Interest Rate Risk Exposures

4.2.1.1 Council should aim to keep debt levels both during a year and over periods of years

as low as its AB&BP and LTFP allow (and its AB&BP and LTFP should be based on best meeting community needs in an equitable and Financially Sustainable manner).

4.2.1.2 On average over time, fixed interest rate borrowings normally are slightly more

expensive than variable rate ones because of the certainty they offer. When assessing new external loan borrowings (after utilisation of internal cash reserves in accordance with this Policy), consideration will be given to the following to minimise net interest costs:

Term of loan (including consideration of Inter‐Generational equity issues and matching the life of the loan with the projected useful life(s) of the associated assets where the funds are being utilised to Finance major projects requiring a prudential report pursuant to Section 48 of the Local Government Act 1999 and the Prudential Management Policy).

Fixed vs Variable rate of interest (including consideration of utilising the Cash Advance Debenture facility from the Local Government Finance Authority of SA that requires interest payments only and enables any amount of principal to be repaid or redrawn at call).

Target / threshold levels for Council’s Key Financial Performance indicators.

4.2.1.3 Council monitors its Net Financial Liabilities Ratio incorporating Council’s Borrowings as projected through the LTFP and AB&BP and then assessed in the Mid–year Budget Review, Annual Financial Statements and Report on Financial Results to the adopted target range.




4.2.2 Loans to/Guarantor for Community Groups

4.2.2.1 From time to time Community Groups approach Council for financial support by way of self‐supporting loans or as Guarantor for an external loan. Council must not provide financial services to the market and therefore cannot provide access to loans except in specific circumstances.

4.2.2.2 Council may consider applications where there are no other funding options

available or where the external financial arrangement is not an appropriate option for the Community Group (evidence must be provided to demonstrate that other options have been exhausted).

4.2.2.3 Community self‐supporting loans and/or Council being Guarantor for an external

loan will only be considered for capital asset acquisition or development which is consistent with Council’s Strategic Plan and not for operational equipment or operating expense purposes and which only benefit the community, not individuals or businesses.

4.2.2.4 Applications for Community Loans or for Council to be a Guarantor for an external

loan will be submitted on the Community Loan Proposal Form and guided by the Community Loan guidelines.

4.2.2.5 Approved Community Loan arrangements will be governed in accordance with

agreed memorandum of understanding between the parties and formal loan repayment arrangements.

4.3 Investments

4.3.1 Council funds that are not immediately required for operational needs and cannot be

applied to either reduce existing borrowings or avoid the raising of new borrowings will be invested. The balance of funds held in any operating bank account that does not provide investment returns at least consistent with ’at call’ market rates shall be kept at a level that is no greater than is required to meet immediate working capital requirements.

4.3.2 Council funds available for investment will be lodged ‘at call’ or, having regard to

differences in interest rates for fixed term investments of varying maturity dates, may be invested for a fixed term. In the case of fixed term investments, the term should not exceed a point in time where the funds otherwise could be applied to cost‐effectively either defer the need to raise a new borrowing or reduce the level of Council’s variable interest rate borrowing facility.

4.3.3 When investing funds Council will select the investment type that delivers the best value,

having regard to investment returns, transaction costs and other relevant and objectively quantifiable factors. This policy does not stipulate that the highest rate should be accepted, but that the investment which delivers the best value to Council should be selected.

4.3.4 Officers appointed under the Sub Delegation Register Section 48 may, from time to time,

invest surplus funds in:

deposits with the Local Government Financing Authority; and/or




bank interest bearing deposits or investment accounts with Council’s current banking service provider.

4.3.5 Any other investment(s) require the specific approval of Council.

4.4 Legislative Requirements

All investments are to be made in accordance with the provisions of the Local Government Act 1999, with particular regard to the following:

The purpose of the investment

The desirability of diversifying Council investments

The nature of and risk associated with existing Council investments

The desirability of maintaining the real value of the capital and income of the investment

The risk of capital or income loss or depreciation

The potential for capital appreciation

The likely income return and the timing of income return

The length of the term of a proposed investment

The period for which the investment is likely to be required

The liquidity and marketability of a proposed investment during, and on the determination of, the term of the investment

The aggregate value of the assets of the Council

The likelihood of inflation affecting the value of the proposed investment

The costs of making a proposed investment

The results of any review of existing Council investments. 4.5 Reporting

At least once a year Council (through the Audit Committee) shall receive a specific report regarding Treasury Management performance relative to this policy document. The report shall highlight:

for each Council borrowing and investment ‐ the quantum of funds, its interest rate and maturity date, and changes in the quantum since the previous report; and

the proportion of fixed interest rate and variable interest rate borrowings at the end date of the reporting period.


Treasury Management Process

TBCFOR4152 – Community Loan Proposal Form 15/12163

TBCUSG4153 – Community Loan Guidelines 15/13439

Banking Services Manual 15/8005

6. Related Policies

TBCPOC4200 – Funding Policy

TBCPOC4700 – Prudential Management Policy

TBCPOC4400 – Budget and Business Plan and Review Policy




7. References

The Barossa Council Sub Delegations

Ability to Give Security

Investment Powers

Review of Investments

Local Government Act 1999 Section 44

Section 47

Section 48

Section 121

Section 122

Section123

Section 133

Section 134

Section 135

Section 139

Section 140

Local Government (Financial Management) Regulations 2011 Part 2

8. Review This Policy shall be reviewed by the Council in consultation with the relevant stakeholders, within four years or more frequently if legislation or Council needs change.


This policy is available on Council’s website at www.barossa.sa.gov.au. It can also be viewed electronically at Council’s principal office at 43‐51 Tanunda Road, Nuriootpa and all Council branches, during ordinary business hours. A copy of this Policy can be obtained at those venues upon payment of a fixed fee. Any complaint in relation to this Policy or its application should be forwarded in writing addressed to the Chief Executive Officer, PO Box 867, Nuriootpa SA 5355.

SIGNED:

……………………………………………..

Mayor




DATED: _____/_____/_____

AUDIT COMMITTEE


REPORT

24 JUNE 2015 7.2.4 RATING POLICY B1236 INTRODUCTION The Rating Policy was previously adopted by Council on 17 February 2009. The Policy to be emailed to Members of the Audit Committee on Monday 22 June 2015 as the Policy is undergoing its final internal consultation. Following the review process, the updated Policy will be presented to the Council for consideration and adoption. RECOMMENDATION That the Rating Policy as revised be recommended to Council for adoption.

COMMENT The policy has been redrafted with wording simplified and supporting documentation. The Policy focusses on these key areas: Principles of Taxation, Valuation of land for rating purposes, Components of Rates, Late Payment, Sale of Land for Non-Payment of Rates, Adoption of Rates and Rate Payment Methods. Content including definitions relevant to the Barossa Council has been taken from the LG Act 1999. The amended Policy includes the correlation to the policy statements in the Annual Budget & Business Plan, the Separate rate has now been removed as no longer applied, other links have now been included for supporting documentation: Rating and Sale of Land, Debt Recovery, Property, Journal and Rebate Processes. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Australian Accounting Standards Council Strategic Plan 4.1 – Responsibility

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial This Policy represents the Council’s commitment to balancing the rate revenue to be raised to provide for the resources consumed.

Resource The Council’s raises the finances needed through rating to fund the resources consumed by the customers. Risk Council must ensure that all Rating decisions are made in accordance with its powers to raise rates are found in Chapter 10 of the Local Government Act 1999 (“the Act”) as the Act provides the framework within which the Council must operate, but also leaves room for the Council to make a range of policy choices. COMMUNITY CONSULTATION Council Policy for funding is undertaken in compliance with legislation and Council requirements for asset management. Once the Policy is adopted by Council, it will be updated and available for the Community to access on Council’s website.

Rating Policy approved by Council/CEO on dd of mm, 2014 Page 1 of 7



THE BAROSSA COUNCIL

RATING POLICY

Strategic Plan Outcome: 4.1 Governance & Organisation - Responsibility


Policy Owner: Director, Corporate and Community Services


Document Control: Manager, Financial Services TRIM Reference: 15/24314


1. Purpose

This Policy provides a framework for The Barossa Council (“Council”) to determine the annual setting and collection of rates.

2. Scope

2.1 Council’s powers to raise rates are found in Chapter 10 of the Local Government Act 1999 (“the Act”). The Act provides the framework within which the Council must operate, but also allows Council to make a range of policy choices.

2.2 This Policy includes references to compulsory features of the rating system, as well as the

policy choices that the Council has made on how it imposes and administers the collection of rates.

3. Definitions

Act Refers to the Local Government Act 1999

General Rates Rates levied by the Council are a form of property-based taxation, and are not a fee for service. General rates are used by Council to fund the delivery of services to the community

Rateable land All land within a Council area, except for land specifically exempt ie Crown Land, Council occupied land and other land prescribed in Section 147 of the Act) ais rateable.

Rating system As defined by the Local Government Act 1999 (the Act)

Service rates and charges A fee for service, with the Service Rate/Charge being levied to recover the cost of providing the related activity from users of the service

Capital Value The value of the land and all of the improvements on the land.

Annual Value A valuation based on the rental value of the property




4. Policy Statement

4.1 Principles of Taxation This Policy represents the Council’s commitment to balancing the five main principles of taxation which are : 4.1.1 Benefits received - i.e. services provided, or resources consumed). Reliance on this

principle suggests that (all other things being equal) a person who received more benefits should pay a higher share of tax.

4.1.2 Capacity to pay - This principle suggests that a person who has less capacity to pay should pay less; and that persons of similar means should pay similar amounts.

4.1.3 Administrative simplicity - This principle refers to the costs involved in applying and collecting the tax and how difficult it is to avoid.

4.1.4 Economic efficiency - This refers to whether or not the tax distorts economic behaviour.

4.1.5 Policy consistency - The principle that taxes should be internally consistent, and based on transparent, predictable rules that are understandable and acceptable to taxpayers.

4.2 Valuation of land for rating purposes – Section 151 of the Act

4.2.1 Council has adopted the capital value method as the basis for valuing land. Council

considers that this method provides the fairest way to distribute the rate burden across all ratepayers on the following basis:

4.2.1.1 The ‘capacity to pay’ principle of taxation requires that ratepayers of similar

means pay similar taxes and ratepayers with greater means pay more tax than ratepayers of less means’

4.2.1.2 Property value is a relatively good indicator of circumstance and means (when

lifetime incomes, including incomes from capital gains, are taken into account). Capital value, which closely approximates the market value for a property, provides the best indicator of overall property value.

4.2.2 Council adopts the valuations made by the State Valuation Office as provided to the

Council each year (Section 167 of the Act).




4.3 Components of Rates

4.3.1 General Rates

Council endorses the differential general rates by land-use based on the capital valuation of rateable properties. In accordance with Clause 10 (Differential factors) of the Local Government (General) Regulations 1999, the following land use codes are utilised for rating purposes:

1 (Residential);

2 (Commercial – Shop);

3 (Commercial – Office);

4 (Commercial - Other);

5 (Industry – Light);

6 (Industry – Other);

7 (Primary Production);

8 (Vacant Land);

9 (Other)

10 (Marina Berth) not used by The Barossa Council The largest component of the rates is the component that is calculated by reference to the value of the land. Every year, the Council officially “declares” what values are to apply within the Council area and which is rateable. The Act allows councils to impose rates that differ (i.e higher or lower) based on the location of land, or the uses to which the land is put (residential, commercial, primary production, industrial, vacant, etc.)

4.3.2 Fixed Charge

Council imposes a fixed charge (applying equally) to all rateable properties pursuant to Section 152 of the Act. Accordingly, to appropriately balance both the benefit and the capacity to pay principle, Council will limit the amount collected by a fixed charge to no more than 40 per cent of general rate revenue. The amount of the fixed charge is clearly indicated on the rates notice.

4.3.3 Community Wastewater Management Schemes (CWMS)

Council will recover the cost of providing township based Community Wastewater Management Systems via:

A Service Charge (residential and vacant properties);




A Service Rate (all other users)

The service charge/rate applied will include an appropriate provision for the future replacement of CWMS infrastructure and equipment, pursuant to Section 155(5) of the Act.

4.3.4 Refuse/Recycling

Council will recover the cost of providing a kerbside refuse/recycling service via a bin-based Service Charge levied pursuant to Section 155 of the Act.

4.4 Late Payment 4.4.1 The Council will impose a penalty of a 2 per cent fine on any late payment for rates

(Section 181 (8) of the Act). This fine may be remitted (waived) in whole, or in part, at the Council’s discretion.

4.4.2 A payment that continues to be late is then charged an interest rate (which is

adjusted by legislation each year) for each month it continues to be in arrears, including the amount of any previous unpaid fine and including interest from any previous month. The purpose of this penalty is to act as a genuine deterrent to ratepayers who might otherwise fail to pay their rates on time, to allow Council to recover the administrative cost of following up unpaid rates and to cover any interest cost Council may meet because it has not received the rates on time.

4.4.3 When Council receives a partial payment of overdue rates, the Council must apply

the money as follows:

First – to satisfy any costs awarded in connection with court proceedings (if applicable);

Second – to satisfy any interest costs;

Third – in payment of any fines imposed;

Fourth – in payment of rates, in chronological order (starting with the oldest account first – Section 183 of the Act).

4.5 Sale of Land for Non-Payment of Rates – Section 184 of the Act

Council may sell any property where the rates have been in arrears for three years or more. Council is required to;

notify the owner of the land of its intention to sell the land;

provide the owner with details of the outstanding amounts;

and advise the owner of its intention to sell the land if payment of the outstanding amount is not received within one month.




4.6 Adoption of Rates

The adoption of rates will not occur until Council has adopted its annual Business Plan/Budget for the financial year to which the rates relate, pursuant to Section 153 (5) of the Act.

In practice the adoption should occur on or before the normal July Council meeting each year. If required, Council can defer the adoption until 31 August if circumstances dictate.

4.7 Rate Payment Methods The following methods are provided for the payment of rates:

Payment over the counter in Nuriootpa, Angaston, Mount Pleasant and Lyndoch (cash, EFTPOS, cheque);

Payment by mail;

Payment at Australia Post outlets (either over the counter/phone/internet);

Payment by BPAY

Payment via Council website


Budget & Business Plan and Review Policy – TBCPOC4400 Budget & Business Plan and Review Process – TBCPOC4409 Rating Process – TBCPRO4551 Single Farm Enterprise Process TBCPR04556 Sale of land for non- payment of rates process – TBCPRO4653 Debt Recovery Process – TBCPRO4651 Property Process – TBCPRO4555 Rates Accounting Process – TBCPRO4553 Journal Process – TBCPRO4554 Rebate Process – TBCPRO4851

6. Related Policies

Rate Relief and Rebates Policy – TBCPOC4350 Debt Recovery Policy – TBCPOC4650 Budget and Business Plan review Policy – TBCPOC4400 Funding Policy – TBCPOC4200 Records Management Policy TBCPOC2050

7. References

Local Government Act 1999




Chapter 10 (Rates and Charges) of the Local Government Act 1999 Clause 10 (differentiating factors) of Local Government (General) Regulations 1999 Local Government Association “Financial Sustainability” Information Paper – August 2012 Local Government Association of SA “Financial Policies” Information Paper – August 2008 Instrument of Sub-delegation under the Local government Act 1999

8. Review

This Policy shall be reviewed by the Senior Rates Officer in consultation with the relevant stakeholders, within four years or more frequently if legislation or Council needs change.


This Policy is available on Council’s website at www.barossa.sa.gov.au. It can also be viewed electronically at Council’s principal office at 43-51 Tanunda Road, Nuriootpa and all Council branches, during ordinary business hours. A copy of this Policy can be obtained at those venues upon payment of a fixed fee. Any complaint in relation to this Policy or its application should be forwarded in writing addressed to the Chief Executive Officer of Council, PO Box 867, Nuriootpa SA 5355.

SIGNED:

……………………………………………..

Mayor / CEO under delegation (delete which is not applicable)

DATED: _____/_____/_____

AUDIT COMMITTEE


REPORT

24 JUNE 2015 7.2.5 DEBT RECOVERY POLICY B1236 INTRODUCTION The Debt Recovery Policy is a new document. The Policy to be emailed to Members of the Audit Committee on Monday 22 June 2015 as the Policy is undergoing its final internal consultation. Following the review process, the updated Policy will be presented to the Council for consideration and adoption. RECOMMENDATION That the Debt Recovery Policy be recommended to Council for adoption.

COMMENT The Debt Recovery Policy is a new Policy. The Policy focusses on Debt recovery for both Rates Debtors and Sundry Debtors The Purpose of the Policy is:

• To provide a clear and concise policy framework in which to pursue all outstanding debts (Rates and sundry debtors) owed to the Council

• To ensure consistency, fairness, integrity and confidentiality of all legal proceedings for both the Council and the debtor;

• Assist in the efficient management of Council assets through the timely collection of outstanding monies

LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Australian Accounting Standards Council Strategic Plan 4.1 – Responsibility

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial This Policy to provide the framework for the efficient management of Council assets through the timely collection of outstanding monies. Resource Council’s raises the finances needed fund the resources consumed by the customers.

Risk Without appropriate Policy and Process debts will possibly not be recovered reducing Councils ability to fund services. COMMUNITY CONSULTATION Council Policy for funding is undertaken in compliance with legislation and Council requirements for asset management. Once the Policy is adopted by Council, it will be updated and available for the Community to access on Council’s website.

Debt Recovery Policy approved by Council/CEO on dd of mm, 2014 Page 1 of 5



THE BAROSSA COUNCIL

DEBT RECOVERY POLICY

Strategic Plan Outcome: 4.1 Governance and Organisation - Responsibility Document Code: TBCPOC4650

Policy Owner: Director, Corporate and Community Services Last Revised Date: Initial Policy

Document Control: Manager Financial Services TRIM Reference: 15/24326


1. Purpose

The purpose of this Policy is to: 1.1 To provide a clear and concise policy framework in which to pursue all outstanding debts (rates and

sundry debtors) owed to The Barossa Council (“Council”), 1.2 To ensure consistency, fairness, integrity and confidentiality for both the Council and the debtor, 1.3 Assist in the efficient management of Council assets through the timely collection of outstanding

monies.

2. Scope

This Policy will apply to all rateable assessments and sundry debtors for monies owed to The Barossa Council.

3. Definitions

Arrangement An agreement between Council and a Ratepayer or Debtor to repay an amount of money within a time frame according to an agreed schedule.

Owner The registered proprietor of a rateable property

Prescribed Percentage (P)

"the prescribed percentage" is to be calculated as follows:

where— "P" is the prescribed percentage and "CADR" is the cash advance debenture rate for that financial year

Ratepayer/s Person/persons who appears in the assessment record as the owner/s or occupier/s of rateable property

Rate and Sundry Debtor/s

Person/s owing money for goods and/or services rendered to them by Council

Recurring Charges

Charges that are charged on a set frequency ie lease fees

http://www.austlii.edu.au/au/legis/sa/consol_act/lga1999182/s181.html#the_prescribed_percentage

http://www.austlii.edu.au/au/legis/sa/consol_act/lga1999182/s4.html#cash_advance_debenture_rate




4. Policy Statement

1. RATES

Rates Debtors shall include all those owing general rates, separate rates, differential rates, CWMS service charges, waste service charge amounts and any other charge levied by Council annually and issued on a quarterly rate notice. 1.1 Arrangements

All Arrangements shall be determined on the merits of each individual case. Recovery action for overdue rates will be suspended whilst the terms/conditions of the Arrangement to pay are being met. Each Arrangement shall specify the amounts of each regular payment and the dates by which each payment must be made to Council. Payments under an Arrangement should be of regular amounts and be payable at regular intervals. Payment defaults will result in a default arrangement letter being issued with a request to pay any missed payments. If ratepayer fails to make up these payments or contact Council, the arrangement may be terminated and the full amount of the outstanding rates and charges and accrued interest shall be due and payable. Recovery action may be taken for recovery of the amount due. A maximum of three defaults applies for any financial year. Fines and interest will not be applied provided the arrangement:-

is made before the due date,

payment terms are met, and

the Arrangement will clear the balance outstanding (excluding arrears) by the end of the current quarter for instalment only payments and the end of the financial year for full year Arrangements.

1.2 Fines and Interest

If an instalment of rates is not paid on or before the date on which it falls due the instalment a) will be regarded as being in arrears; and b) a fine of 2 per cent of the amount of the instalment is payable; and c) on the expiration of each full month from that date, interest at the prescribed percentage

of the amount in arrears (including the amount of any previous unpaid fine and including interest from any previous month) accrues.

1.3 Overdue Notice

A Rates Overdue Notice shall be issued within 14 days after the due date of an instalment to those Ratepayers who have not made satisfactory Arrangements. This Overdue Notice gives the Ratepayer a summary of the outstanding debt (including any fines and interest) and detailing options of paying this debt via a suitable payment method. The Notice will also advise Ratepayers that failure to pay or make a suitable arrangement to pay will result in the debt being referred to Council’s Debt Collection Agency for recovery.






1.4 Final Notice

A Final Notice shall be issued 14 days after the issue of the Overdue Notice for non-payment or to those ratepayers who have not made satisfactory payment arrangements. This Final Notice gives the ratepayer a total of the outstanding debt and the option of paying, or making suitable payment arrangement.

1.5 Legal Action Legal action will be initiated by referring the account to Council’s Debt Collection Agency who will send a Letter of Demand to the Ratepayer. Council is then to be guided by the Collection agency as to the most suitable form of recovery action. Once the debt has been referred to the Debt Collection Agency all communication is to be directed to them. All legal costs and expenses incurred by Council from the recovery of outstanding rates and charges will be charged against the debtor’s property.

1.6 Registered Mortgagee Once the legal action process in 1.5 has been exhausted and before any other legal action in terms of Section 184 of The Act has commenced,

a copy of the Certificate of Title for the property is to be obtained,

Council will advise the Ratepayer in writing of the debt outstanding, and

a copy will be sent to the Registered Mortgagee to establish the option of refinancing or paying the arrears outstanding.

If registered mortgagee advises that this is not an option then the Sale of Land for unpaid rates and charges process may begin.

1.7 Sale of Land for Unpaid Rates and Charges Council may proceed to sell the land where any rate or charge is overdue and has remained in arrears for more than three (3) years from the date on which it became payable in accordance with Section 184 of the Act. Prior to instigating any action, the Ratepayer will be given the opportunity to make an application for rate relief due to financial hardship under the Councils Rate Relief and Rebate Policy. In agreement with the Director, Corporate and Community Services, the Senior Rates Officer may from time to time report to Council on any rate Debts that have remained unpaid following implementation of recovery action as detailed above and where Officers seek direction from Council rather than exercising Delegated Powers under the Act.

1.8 Deceased Estates Where a person becomes deceased during the course of the above processes and once notification in writing is received from lawyers acting on behalf of that person’s estate, fines and interest will be suspended until probate is granted or outstanding debt is repaid.




1.9 Small Balance Adjustments On the 30th June each financial year small debit and credit balances will be adjusted unless regular payments are being made.

2 SUNDRY DEBTORS Sundry Debtors include people owing Council money for food inspections, on-charging of utilities, donations, search requests, recurring charges or any other monies owed to Council. 2.1 Invoices Invoices will be sent for any debt raised providing 30 days for payment. 2.2 Monthly Statement A monthly Statement shall be issued at the beginning of each month. The Statement gives the

debtor a summary of the outstanding debt. 2.3 Arrangements to Pay

All Arrangements shall be determined on the merits of each individual case. Recovery action for overdue debts will be suspended whilst the terms/conditions of the Arrangement to pay are being met. Payment defaults will result in a default arrangement letter being issued with a request to pay any missed payments.

2.4 Final Notice A final notice shall be issued where applicable after the non-payment or to those debtors who have not made satisfactory payment Arrangements of debt following the issue of the monthly statement. This Final Notice gives the debtor a total of the outstanding debt and the option of paying within 14 days, or making suitable payment arrangement. If Council receives no response from the debtor for the final notice Council may refer the debt to Council’s Debt Collection Agency for recovery.

2.5 Legal Action Legal action will be initiated by referring the account to Council’s Debt Collection Agency which

will send a letter of demand to the ratepayer. Council is then to be guided by the Collection Agency as to the most suitable form of recovery action. Once the debt has been referred to the Debt Collection Agency all communication is to be directed to them. All legal costs and expenses incurred by Council from the recovery of outstanding debts may be charged to the Debtor and against the Debtor’s property if applicable.




2.6 Delegations – Write Offs Debts shall be written off only when all reasonable attempts at recovery have been taken. Council provides the designated Officers with the authority to write off sundry debts in accordance with their specific delegations.

2.7 Disputing a debt In the event that a sundry debt is in dispute, the Debtor will be referred to the relevant approving officer for clarification of the debt charged. If the dispute cannot be resolved the approving officer should refer to Council’s Complaint Handling Policy for direction.


Debt Recovery Process – TBCPRO4651 Sale of Land for Unpaid Rates Process – TBCPRO4653 Debt Recovery Flowchart TBCPRO4652 Rating Process – TBCPRO4551 Rates Accounting Process TBCPRO4553 Property Process – TBCPR4555 Journal Process – TBCPR4554 Debtor Process – TBCPR4202

6. Related Policies

Funding Policy – TBCPO4200 Rating Policy – TBCPO4550 Rate Relief & Remission Policy – TBCPO4850 Complaint Handling Policy – TBCPOC2100 Records Management Policy – TBCPOC2050

7. References

Local Government Act 1999 Instrument of Sub-delegation under the Local Government Act 1999 at section 143(1)

8. Review

This Policy shall be reviewed by the Senior Rates Officer in consultation with the relevant stakeholders, every four (4) years or more frequently if legislation or Council needs change.


This Policy is available on Council’s website at www.barossa.sa.gov.au. It can also be viewed electronically at Council’s principal office at 43-51 Tanunda Road, Nuriootpa and all Council branches, during ordinary business hours. A copy of this Policy can be obtained at those venues upon payment of a fixed fee. Any complaint in relation to this Policy or its application should be forwarded in writing addressed to the Chief Executive Officer of Council, PO Box 867, Nuriootpa SA 5355.




SIGNED:

……………………………………………..

Mayor / CEO under delegation (delete which is not applicable)

DATED: _____/_____/_____

AUDIT COMMITTEE

24 JUNE 2015 8.1 AUDIT COMMITTEE TRACKING

Audit Report Follow Up

Action Source – date/report

Agreed Management Actions

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Audit Meeting 17/2/11 (7.1.3)

Business Continuity Plan Mr Brass requested that any future updates or amendments to the Business Continuity Plan be reported to the Committee. Responsible person: CEO / Manager Risk

Refer Agenda item 6.1.5 11/03/14 – “Health Check” completed.

Audit Meeting 11 October 2010 (8.1)

CEO and/or Director Corporate & Community Services to provide regular updates to the Committee regarding progress on recommendations from the Governance & Organisational Review of the Nuriootpa Centennial Park Authority.

New Board appointed by Council August 2014 Program of induction workshops commencing 15.10.14 (includes legislative; governance and organisational briefings) NCPA Audit Committee TORS, membership and sitting fees approved by Council. First meeting of new committee 11 May 2015 Workplan being drafted and action tracking process implemented for approval next meeting Delegations review conducted for presentation to Board




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Audit Meeting 4 Aug 2011 (7.1.4)

Organisational Risk Register Manager Risk to present future reports regarding the WHS Planning Review, in particular, improvements made to the Organisational Risk Register.

Risk Manager reporting to each meeting.

Audit Meeting 4 Dec 2012 (6.1.3) Audit Meeting 10 Dec 2013 (6.1.4)

Manager Risk to provide reports from Executives of various sections of Council (annually) on how they are managing the risks relevant to them.

Noted for future action.

Audit Meeting 4 December 2012 (6.1.4)

Manager Risk to provide a progress report to each meeting on Council’s Hazard Register. Verbal report to be provided

Audit Meeting 12 June 2013 (6.1.2)

Chief Executive Officer to: • establish a separate dedicated Fraud & Corruption Risk

Profile as part of Strategic Project No. 8 – Risk Management Strategy

• provide 6 monthly updates on how projects are tracking in relation to milestones

Refer agenda item 6.1.2 Fraud and Corruption Risk policy and process frameworks are in place. As general risk profile is developed further during 2015 Fraud and Corruption shall be identified as a separate component of the risk register.

Audit Meeting 12 June 2013 (7.2.1)

Manager Financial Services to: • Include report on Policy and Process for treatment of

Attractive Assets to the October 2013 meeting

Attractive asset acquisition register to be developed and populated by each relevant Department.

Audit Meeting 14 October 2013 (6.1.5)

Manager Financial Services to provide a progress report on the Control Track program incorporating a report on financial risks

Refer Agenda item 7.1.4 3/6/14

Audit Meeting 11 March 2014 (6.1.1)

Governance Officer to provide updated report re Review of Delegations to June 2015 meeting Refer Agenda item 6.1.1 3/6/14




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Audit Meeting 29 October 2014 (7.1.4)

Internal Control Officer to provide reports about internal controls compliance Refer Agenda item 7.1.4 29/10/14

Audit Meeting 5 February 2015 (7.1.1)

CEO to present risk profile information at the December/ November meeting Refer Agenda item 7.1.1 5/2/2015


Manager Financial Services to present outstanding policies to the June Audit Committee meeting for review Refer to relevant agenda item for Policies


Coordinator Internal Control to provide a demonstration of how Control Track works at the next Audit Committee meeting Refer Agenda Item 7.1.5


Manager Risk to coordinate divisional Managers to present their risk profiles at future meetings Refer Agenda Item 7.1.1

NOTE: Once items have been noted as completed for the purposes of the minutes they will be removed from the tracking sheet

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