audit committee - barossa council comm… · moved cr miller that the minutes of the audit...

Audit Committee - Minutes of meeting held 5 November 2015 Page 1

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

held in the Council Chamber 43-51 Tanunda Road, Nuriootpa, on Thursday 5 November 2015 commencing at 10:15 am.

1. WELCOME

The Chair, Mr Peter Brass welcomed everyone to the meeting at 10:17 am. Mr Brass advised the meeting that the Audit Committee had a debrief with Council auditors prior to the commencement of the meeting. The Chair, Mr Peter Brass acknowledged the significant contribution of Mr Brian Hurn OAM, as a Member of the Audit Committee of Council and the sadness at his recent passing. As a member of the Audit Committee, Brian was highly respected and his commitment and passion to the Barossa Council and local government in South Australia will always be remembered.

2. PRESENT

Mr Peter Brass, Mr James Heuzenroeder, Ms Tanya Johnston, Cr Angas, Cr Milne, Cr Miller

Invited Staff Members and Auditors 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 Liz Waters, Accountant Ms Susie Roehr, Executive Assistant Corporate & Community Services Ms Samantha Allard, Partner, Dean Newbery & Partners Mr John Jovicevic, Dean Newbery & Partners

3. APOLOGIES

Mr Roy Allen – Rates Officer 4. CONFIRMATION OF MINUTES FROM PREVIOUS MEETING MOVED Cr Miller that the Minutes of the Audit Committee Meeting held 6 June 2015, 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 Nil The Chair sought the leave of the meeting to bring forward items related to the annual financial audit for consideration to allow Council’s auditors from Dean Newberry and


Partners to address any matters of the Audit Committee and depart for another appointment thereafter. Leave was granted. 7.1.2 NURIOOTPA CENTENNIAL PARK AUTHORITY – 2014/15 ANNUAL FINANCIAL

STATEMENTS MOVED Mr Heuzenroeder that the 2014/15 Annual Financial Statements for the Nuriootpa Centennial Park Authority be endorsed and presented to Council for adoption. Seconded Ms Johnston CARRIED INTRODUCTION A copy of the Nuriootpa Centennial Park Authority Annual Financial Statements for the year ended 30 June 2015 was provided. COMMENT In accordance with Section 126(4) of the Local Government Act 1999, the Committee must review the Annual Financial Statements to ensure that they present fairly the state of affairs of the Council. The Council Auditors commenced their Balance Date Audit on 16 September 2015. Council officers have provided information to the auditors to ensure they were able to conduct their audit and have made necessary adjustments to the report as required. The audited final signed copy of the financial statements has been provided (as attached). The certificate to be signed by Nuriootpa Centennial Park Authority management will be presented at the meeting. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Local Government Act 1999 – Section 126(4) FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS The financial statements have been incorporated into Council’s consolidated Financial Statements. COMMUNITY CONSULTATION No separate consultation is required under Council’s Public Consultation Policy. The Statements are public documents, accessible to the community via Council’s website. 7.1.3 2014/15 ANNUAL FINANCIAL STATEMENTS B1096 MOVED Cr Miller that subject to final confirmation with Council auditors, the preliminary 2014/15 Annual Financial Statements be endorsed and presented to Council for adoption. Seconded Mr Heuzenroeder CARRIED INTRODUCTION A copy of the Interim Annual Financial Statements for the year ended 30 June 2015 for review was provided.


COMMENT In accordance with the Local Government Act 1999, Section 126(4) the Committee must “.review the adequacy of the financial management systems and practices of the Council…”. This is to ensure that they present fairly the state of affairs of the Council. As required in the Terms of Reference “the committee shall monitor the integrity of the financial statements of the Council, including its annual report, reviewing significant financial reporting issues and judgements they contain”. The Council Auditors conducted their Balance Day Audit on 15-16 October 2015. Council Officers have provided information to the Auditors to ensure they were able to conduct their audit and have made necessary adjustments to the report as required. A final review is being made by the Auditors and so a draft copy of the financial statements has been provided (as attached). A final copy will be presented to Council at the November 2015 Council meeting. A preliminary Comprehensive Income Statement variance report from the Original Budget compared to Actual results for the 2014/15 year will be forwarded to members by separate cover. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Section 126(4) of the 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 All known financial and resourcing requirements as at 30 June 2015 have been included in the financials. Risk management issues are considered by Management throughout the financial year and communicated to Council as required. There are no resource management considerations. COMMUNITY CONSULTATION No separate consultation is required under Council’s Public Consultation Policy. The Statements are public documents, accessible to the community via Council’s website. 7.1.5 2015 AUDIT COMPLETION REPORT MOVED Cr Milne that the Audit Committee receives Late Agenda Report 7.1.5 - 2015 Audit Completion Report. Seconded Cr Miller CARRIED MOVED Mr Heuzenroeder that the Audit Committee note the 2015 Audit Completion Report. Seconded Cr Angas CARRIED


INTRODUCTION Officers have received the 2015 Audit Completion Report from the External Auditors, and the report was read and considered in conjunction with agenda item 7.1.3. External Auditors spoke to the report. Planning has commenced for next financial year, testing and preliminary work to commence earlier. Auditors recommend that a stocktake of plant and equipment be undertaken during the 2015/16 year. COMMENT Council’s external Auditor, Dean Newbery & Partners have issued their 2015 Audit Completion report. It includes a summary of key matters on page 6 that will be included in the Auditors 2015 Balance Date Management Letter. Council staff will respond to the Auditors on future actions to be taken regarding these matters and this will be reported to the Audit Committee at the next meeting. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act – Section 126 Council Strategic Plan 4.1 Responsibility FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Council’s Audit Committee has a key role in its good governance framework. Good communication between the Committee and the Council will ensure that financial and risk management issues raised receive appropriate consideration and attention. COMMUNITY CONSULTATION No separate consultation is required under Council’s Public Consultation Policy 6. CONSENSUS AGENDA 6.1 REPORTS FOR INFORMATION MOVED Cr Milne that the reports for information 6.1.1 to 6.1.4 be received. Seconded Cr Angas CARRIED The Committee discussed the draft Risk Management Policy – suggestions were put forward to include a section about Council’s Risk Appetite, in addition to the existing definition of tolerance and for the levels of risk to be reviewed. 6.2 CORRESPONDENCE MOVED Ms Johnston that Correspondence Item 6.2.1 be received. Seconded Cr Miller CARRIED Ms Samantha Allard, Partner, Dean Newbery & Partners and Mr John Jovicevic, Dean Newbery & Partners left the meeting at 11:32 am. 6.2.2 CONFIDENTIAL MATTER – CHIEF EXECUTIVE OFFICER – 11:33AM


Correspondence has been received from the Auditor-General necessitating consideration of the Audit Committee in confidence to comply with the requirements of the Auditor-General and thus a duty placed upon Council. MOVED Cr Miller that: (1) Under the provisions of Section 90(2) of the Local Government Act 1999 an order

be made that the public be excluded from the meeting, with the exception of the Chief Executive Officer, Director - Corporate and Community Services, Manager Financial Services, Senior Accountant, Risk Manager, Internal Controls Compliance Officer, Accountant and the Minute Secretary, in order to consider in confidence a verbal report relating to Section 90(3)(g) of the Local Government Act relating to correspondence received by the Auditor-General, being matters that must be considered in confidence in order to ensure that the council does not breach any law, order or direction of a court or tribunal constituted by law, any duty of confidence, or other legal obligation of duty : and

(2) Accordingly, on this basis, the principle that meetings of the Committee should

be conducted in a place open to the public has been outweighed by the need to keep the information and discussion confidential.

Seconded Cr Milne CARRIED RESUMPTION OF OPEN AUDIT COMMITTEE MEETING – 11.37AM The open meeting of the Audit Committee resumed at 11:37am MOVED Cr Miller that: (1) Confidential resolution. (2) The Committee having considered this matter in confidence under Section 90(2)

and 3(g) of the Local Government Act 1999 makes an order pursuant to Section 91(7) of the Act that the details of the verbal briefing and minutes of the confidential meeting regarding correspondence from the Auditor-General be kept confidential and that the Chief Executive Officer be delegated to review and revoke this order within 12 months from the date of this meeting (being 5 November 2015).

Seconded Cr Milne CARRIED 7.1 DEBATE AGENDA - REPORTS

7.1.1 INTERNAL FINANCIAL CONTROL B1321 MOVED Mr Heuzenroeder that the report on Internal Financial Controls be received and noted. Seconded Cr Angas CARRIED INTRODUCTION


Update on internal control work performed since the last Audit Committee meeting. COMMENT A copy of the Internal Financial Control Report for July to September 2015 was provided. 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.

7.1.4 DRAFT ANNUAL REPORT OF AUDIT COMMITTEE’S ACTIVITIES MOVED Cr Scotty Milne That the Audit committee draft Annual Report be approved for submission to Council. Seconded Ms Johnston CARRIED INTRODUCTION A draft Annual Report of the Committee’s activities was presented. COMMENT One of the activities of an Audit Committee identified in the LGA Information Paper 14 ‘Model Work Program for Council Audit Committees’ is its annual reporting to Council. Subsequent Information Paper 19 ‘Audit Committee Reporting’ presents a ‘best practice’ approach for Council’s to adopt. The Chairman’s draft report attached follows the model template set out in the Information Paper. The Chairman will present his report to the 15 December 2015 Council meeting. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN


Legislation Local Government Act – Section 126 LGA Information Paper 19 ‘Audit Committee Reporting’ Council Strategic Plan 4.1 Responsibility FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Council’s Audit Committee has a key role in its good governance framework. Good communication between the Committee and the Council will ensure that financial and risk management issues raised receive appropriate consideration and attention. COMMUNITY CONSULTATION Council’s Audit Committee Annual Report on activities for 2014-15 will be available to the public via Council’s website. 8. OTHER

8.1 AUDIT COMMITTEE ACTION TRACKING MOVED Ms Johnston that the progress of the Audit Committee Tracking report received. Seconded Cr Miller CARRIED 9. ANY OTHER BUSINESS Nil. 10. NEXT MEETING 11. CLOSURE There being no further business, Mr Brass closed the meeting at 11:45 am.

Confirmed:

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

AUDIT COMMITTEE

REPORTS FOR INFORMATION

11 FEBRUARY 2015 CONSENSUS AGENDA 6.1 REPORTS FOR INFORMATION

6.1.1 AUDIT COMMITTEE INDEPENDENT MEMBER APPOINTMENTS AND AMENDMENT TO THE TERMS OF REFERENCE

An extract of the minutes of the Council meeting held on 27 January 2016 (Attachment 1) approving the appointment of Independent Member James Heuzenroeder for a further term and approving recommended changes to the terms of reference. The approved Terms of Reference are also attached – refer Attachment 2.

6.1.2 PROGRESS REPORT – RISK MANAGEMENT AND WORKPLACE HEALTH AND

SAFETY A progress report from the Risk Manager is attached. 6.1.3 INFORMATION COMMUNICATION TECHNOLOGY (ICT) MINUTES FROM

THE ORGANISATIONAL MANAGEMENT GROUP MEETINGS & STRATEGIC PLAN PROJECT IMPLEMENTATION UPDATE

Minutes relating to Information Communication and Technology (ICT) matters discussed at OMG meetings held on 7 December 2015 and 1 February 2016 are attached (Attachment 1) for information.

An update on the ICT Strategic Plan project implementation is

provided for information (Attachment 2). 6.1.4 STRATEGIC FRAMEWORKS UPDATE A progress report from the Manager Strategic Projects is attached for

information. 6.1.5 REDEFINING COMMUNITY COMMITTEES – QUARTERLY UPDATE REPORT

(QUARTER FOUR) An extract of the minutes of the Council meeting held on 27 January

2016 providing an update on the redefining Community Committees project is attached for information.

6.1.6 NURIOOTPA CENTENNIAL PARK AUTHORITY (NCPA) – HIGH LEVEL

COMPLIANCE ACTION TRACKING A copy of the NCPA Improvement Program Update (Risk Analysis) –

High level compliance action tracking document is attached for information.

RECOMMENDATION That reports 6.1.1 to 6.1.6 be received.

2016/20

The Barossa Council Minutes of Council Meeting held on Wednesday 27 January 2016

Council Strategic Plan 1.3 Recreation 2.2 Business & Industry 4.1 Responsibility FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial Council approved funding extended the monthly payment of $2,500 (excluding GST) to the Mount Pleasant and District Golf Club Incorporated (the Club) up to and including December 2015. Council’s Budget and long term financial plan does not provide for further funds in this or future years.

A review of the Councils operating result for 2015/16 reported to Council at the Budget Update as at 30 September 2015 was a surplus of $52k and a ratio of 0.15%, this proposal is for a contribution of $15k which will have the effect of reducing the expected surplus to $37K and a ratio of 0.10%.

In accordance with Council’s Prudential Management Policy, a Bid Analysis Tool assessment has been completed for the proposed, non budgeted expenditure. (Refer Attachment 3). The Bid Analysis Tool score of 48, places the rating of this proposal above other successful New Initiatives (including the Redefining Community Committees – New Initiatives’) in comparison to other successful New Initiative bids as part of the 2015/16 budget Process.

Resource See comment under the Financial heading above for resource requirements. Council Officers (Director, Corporate & Community Services and Manager, Financial Services continue to meet with the Club executive on a quarterly basis together with Cr Seager. Risk Management Council will need to review its legal and ethical position of the land ownership after reviewing the historical information and appropriate service levels and/or funding levels for the Golf Club along with its other budget allocations for recreational services for the community. COMMUNITY CONSULTATION The budget consultation process provides the community an annual review of service levels and funding needs at a high level for each service of function.

7.3.1.4 AUDIT COMMITTEE INDEPENDENT MEMBER APPOINTMENTS AND AMENDMENT TO THE TERMS OF REFERENCE B4256

Cr Milne disclosed a conflict of interest in the matter 7.3.1.4 – Audit Committee Independent Member Appointments and Amendment to the Terms of Reference due to being a member of the Audit Committee and left the meeting at 10.08am. MOVED Cr Grossman that Council: (1) Accepts Cr Miller’s resignation from the Internal Audit Committee and thanks him for his service and contribution;

(2) Approves the appointment of Independent Member – James Heuzenroeder to the Council Audit Committee for a further two year term, expiring 27 January 2018; and (3) Approves the recommended change to the Audit Committee Draft Terms of Reference. Seconded Cr Boothby CARRIED 2014-18/520

EXTRACT

2016/21


Cr Milne returned to the meeting at 10.11am. INTRODUCTION Councillor Miller tendered his resignation from the Audit Committee on 14 January 2016. Independent Member, James Heuzenroeder was previously appointed for a one year term which expires on 27 January 2016. COMMENT In accordance with section 17 of the Local Government Act (Financial Management) Regulations 2011, the Audit committee of a council has between 3 and 5 members. Council has been operating outside of these parameters with a total of 6 voting members (3 independents and 3 Elected Members) and the resignation of Cr Miller allows Council to transition to a committee of 3 independent members and 2 Elected Members. Mr Heuzenroeder has indicated his wish to be reappointed to the Audit Committee and was previously only appointed for a 1 year term (as determined by Council on 27 January 2015). This was to assist with staggering appointments to secure consistency of Independent members on the Committee. The Audit Committee Terms of Reference (clause 3.2.1) allow for an Independent Member to be appointed for a 2 year term (unless otherwise determined by Council) with a right of extension of the appointment by Council. With that in mind it is recommended that Mr Heuzenroeder be appointed for a further 2 year period up to 27 January 2018. Officers recommend the reappointment of Mr Heuzenroeder to the Audit Committee for a further two year term based on his experience and expertise. Independent Members, Mr Peter Brass (Chair) and Ms Tanya Johnson are appointed to the Committee until 27 January 2017. Staggering the membership helps to provide for ongoing continuity in the operation of the Committee. Following Councillor Miller’s resignation, Officers recommend the Audit Committee transition from three Elected Member appointees to two. Whilst the Audit Committee has functioned effectively with the balance of Elected Member and Independent Member representation, the change and reduction of numbers in line with the Regulations will only further demonstrate Council’s commitment to transparency and external oversight of Council operations. It is encouraging that there is interest from high calibre, suitably skilled local people to be actively involved in the audit functions of Council. The following change is therefore, recommended to the Audit Committee Terms of Reference: Reference 3.1 - Changing the membership of the Committee from 6 members; 3 to be Elected Members and 3 to be Independent Members to: The Committee comprises 5 members; 2 to be Elected Members and 3 to be Independent Members Attachments Attachment 1: Draft Audit Committee Terms of Reference LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Local Government (Procedures at Meetings) Regulations 2013 Code of Conduct for Elected Members Volunteer Management Policy

EXTRACT

2016/22


Independent Commission Against Corruption: Directions and Guidelines Local Government (Financial Management) Regulations 2011 Council Strategic Plan 4.1 Responsibility 4.2 Service 4.3 Systems FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial Independent Members allowances are incorporated within the existing Budget. Resource No additional resource requirements identified. Risk Management The independent representation is based on the opportunity to achieve external oversight of Council operations and enhance transparency for our community of Council’s overall risk management approach. COMMUNITY CONSULTATION Not required under legislative and policy requirements. 7.3.2 DEBATE AGENDA – FINANCE 7.3.2.1 MONTHLY FINANCE REPORT (AS AT 31 DECEMBER 2015) B411 MOVED Cr Seager that the Monthly Finance Report as at 31 December 2015 be received and noted. Seconded Cr de Vries CARRIED 2014-18/521 INTRODUCTION The Monthly Finance Report (as at 31 December 2015) is attached.

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 adopted 2015/16 Budget and incorporating the adopted Revised Budget for September. Attachment Attachment 1: Monthly Finance Report 31 December 2015 LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government (Financial Management) Regulations 2011 - Reg 9(1)(b) LGA Information paper no. 25 – Monitoring Council Budget Performance Policy Budget & Business Plan and Review Policy Council Strategic Plan 4.1 – Responsibility

EXTRACT

TERMS OF REFERENCE OF THE BAROSSA COUNCIL’S AUDIT COMMITTEE

Council Meeting on 27 January 2016 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



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 External audit

The Committee shall:

2.4.1 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; 2.4.2 Oversee Council’s relationship with the external auditor including, but not limited to:

(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).

2.4.3 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;

2.4.4 Review and make recommendations on the annual audit plan and its consistency with the scope of the external audit engagement;

2.4.5 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.

2.4.6 Review the effectiveness of the external audit based on the contract of

engagement;

2.4.7 Review any representation letter(s) requested by the external auditor; and 2.4.8 Review the management letter and management’s response to the external

auditor’s findings and recommendations. 2.5 Reporting responsibilities 2.5.1 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 5 members: 3.1.1 3 will be Independent Members, and 3.1.2 2 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

REPORTS FOR INFORMATION

11 FEBRUARY 2016

6.1.2 PROGRESS REPORT – RISK MANAGEMENT AND WORKPLACE HEALTH AND SAFETY Risk Management Framework The Barossa Council Risk Policy is now signed off. Review of the risk register by Directorate is continuing and the Draft Risk Management Process is now being written. ControlTrack No change from previous report. Mutual Liability Claims Council has recently confirmed settlement of a bike path Incident that occurred in 2014. The claimant’s damages payment has now been agreed upon and will be issued for an undisclosed sum, in accordance with The Local Government Mutual Liability Scheme Release Indemnity requirements. LGAMLS - Risk Review 2015 and Rebates No change from previous report. Emergency Planning As a result of issues identified during the December 2015 Pinery Fires, the Council’s Emergency Action Plans are to be reviewed in consultation with CMT, The Emergency Planning Committee and OMG. Business Continuity Plan (BCP) The Local Government Risk Services (LGRS) has provided Council with a Business Continuity Plan Maintenance Program Proposal. The Scope of the proposal is to provide a two year program that contributes to the ongoing relevance, readiness and effectiveness of the Councils Business Continuity Management Program. External Audits and Rebates 2015 WHS Rebate Council received the maximum achievable WHS rebate this year due to our 100.0% closeout of the 2014 KPI Action Plan. This resulted in a $91,499 payment to Council. The 2015 KPI Action Plan achieved an 89% closeout which will go towards calculating the 2016 rebate payment. Staffing issues for this period lead to 3 out of 15 actions not being finalised.

2015 KPI Audit Summary Report The 2015 KPI Audit was undertaken in early November 2015 by the LGAWCS. The Audit was restricted to 11 sub elements (chosen by WorkCover) and the Injury Management/Return to Work component to 14 questions. The 2015 Audit verification of the selected sub elements resulted in four ‘full’ conformances, six observations and one non-conformance. All of the Injury Management requirements were found compliant. The non-conformance related to Councils Asbestos Management Plan which has yet to be finalised. The 2016 KPI Action Plan will be provided to the LGAWCS by March 2016. New Internal Audit Process The WHS Audit Process is now in its first review cycle and has been expanded as a draft, to incorporate all the council internal audit requirements. An internal Audit Schedule and Rational has been developed to guide the review of Councils WHS documents.

The Barossa Council © 2014 Team Meeting – Agenda and Action Record TRIM TEMPLATE REF: xx/xxxxx Page 1 of 2 The electronic version of this document is the controlled version. Printed copies are considered uncontrolled. Printed Copies are uncontrolled for 3 months from 5/02/2016 and then must be reprinted

THE BAROSSA COUNCIL Team Meeting – Agenda and Action Record

Form Name: Team Meeting – Agenda and Action Record Document Number: TBCF9999999

Form Owner: Manager Organisational Development TRIM Reference: /

Red Guidance Text Please delete once finalised document.

1. Meeting Details

Team Name Organisational Management Group Our Values: Transparency, Honesty & Integrity, Teamwork, and Communication

Date of Meeting 7 December 2015

Attendees Steve Kaesler Mark Lague Peter Morgan Peter Bice Andrew Evans Tania Paull

Martin McCarthy Vincent Marsland Alan Jackson Kirsty Hage

Joanne Wilson Gary Mavrinac Jo Seabrook

Apologies Brendon Lyons Rebecca Tappert

Joanne Thomas

Louis Monteduro

2. New Business

Item TRIM Reference Description Recommendation (For Info/Noting/Discussion/Endorsement/Approval)

Who

ICT Strategic Plan Update

15/26803 Mid-Year Status Update - Implementation of 2015-16 ICT Strategic Plan Projects – Key Upgrade Dates to be flagged (Pathway & Tech 1)

For discussion – OMG to flag any issues associated with dates proposed below: Tech 1 – 21/22 March 2016 – staggered rollout of timesheets commences

MK&TS 10 mins

trim://15%2f26803/?db=BT&edit


Office 2013 – 18 March 2016 Pathway – version upgrade - 18 April 2016

TRIM Upgrade/ Refresh

N/A A TRIM Upgrade has been planned for March 2016. The upgrade will require a TRIM outage from Mid-Day on the Friday. Minor changes will occur from a user perspective, with the major changes providing fixes to current issues experienced by K&TS in administering the records management system and maintaining the application. A communication strategy will be implemented prior to the upgrade to explain changes and actions required by users both pre and post upgrade.

For discussion – OMG to flag any issues associated with a March 2016 TRIM upgrade and agree on upgrade (outage) date (Friday 4th March).

M&TS 5 mins

Mobile Phone Contract Refresh

15/55923 Update on Mobile Phone Call and Data Contract Changes – Budget Impact

For information MK&TS 5 mins



THE BAROSSA COUNCIL Team Meeting – Agenda and Action Record

Form Name: Team Meeting – Agenda and Action Record Document Number: TBCF9999999

Form Owner: Manager Organisational Development TRIM Reference: /

Red Guidance Text Please delete once finalised document.

1. Meeting Details

Team Name Organisational Management Group Our Values: Transparency, Honesty & Integrity, Teamwork, and Communication

Date of Meeting 1 February 2016

Attendees Steve Kaesler Mark Lague Andrew Evans Tania Paull

Martin McCarthy Vincent Marsland Kirsty Hage Rebecca Tappert

Joanne Wilson Gary Mavrinac Jo Seabrook Louis Monteduro

Apologies Peter Bice Alan Jackson

Brendon Lyons Peter Morgan

Joanne Thomas

2. New Business

Item TRIM Reference Description Recommendation (For Info/Noting/Discussion/Endorsement/Approval)

Who

Corporate Application Roadmap

16/2142 Presentation on Council’s Corporate Application Roadmap

For Information - Action - OMG members to review corporate application roadmap components and provide feedback where relevant

MK&TS 15 mins

trim://16%2f2142/?db=BT&view


Action - ICT to update application roadmap to include opportunity for OMG to provide advice regarding emerging IT requirements that may affect existing corporate/future corporate applications.

ICT Strategic Plan Review

16/2143 15/26803

OMG Review of ICT Strategic Plan Project Priorities for 2016/17

For discussion- Due to time limitations ICT Plan deferred until February OMG Workshop Action – Jo to send ICT Strategic Plan to OMG via email for review and discussion at Feb OMG workshop

DCCS 20 mins



ICT Strategic Plan – Project Implementation

NOTE – The colours identify which Officer(s) has the lead role for each project

2015/16 Project Phasing & Status

Focus Area

Projects Lead Status July August September October November December January February March April May June TRIM Project Management Container

TRIM Working Document Container (facilitative)

TRIM Project Scope

1 Digital Communication Strategy C&MO In Progress B3834 B3851 15/42220 1 Social Media Strategy C&MO Complete B3651 B3852 - 1 Customer Request Management CEO In Progress B2903 B3853 15/13071 1 Search Process Review DCCS In Progress Existing Container - refer B3650 15/43255 1 Corporate Calendar MAS Not Started B3835 B3854 - 3 PABX Upgrade – Unified Communications

Phase 2 MAS In Progress B3674 B3855 15/30953

2 Tech 1 – My Payroll MFS In Progress B3646 B3856 15/36902 3 Purchase Card Expansion MFS Not Started B3836 B3857 - 1 Sharepoint Phase 2 Implementation MK&TS In Progress B3837 B3858 15/56177 1 ICT Assets Review MK&TS In Progress B3838 B3859 Not Applicable 1 Office 2013 Upgrade MK&TS In Progress B3839 B3861 - 2 NBN Connectivity / Cloud Readiness MK&TS In Progress B3840 B3862 Not Applicable 2 Remote site connectivity MK&TS In Progress B3841 B3863 Not Applicable 2 Elected Member Portable Device Refresh MK&TS In Progress B3452 B3864 15/36901 3 Holistic Reporting Project MK&TS In Progress B3842 B3865 15/41595 3 Pathway, Conquest & TRIM Integration MK&TS Not Started B3850 B3866 - TRIM Upgrade MK&TS In Progress B3843 B3867 15/36904 Pathway Upgrade MK&TS In Progress B3844 B3868 15/36903 3 Application/Infrastructure Roadmap MK&TS In Progress B3845 B3869 15/29362 3 Visitor Information Centre and Gallery

Inventory Solution MVIC/MCC

In Progress B3846 B3870 15/37323

3 Risk Registers (Sharepoint/ControlTrack) RM In Progress B3362 B3871 - 1 Development Application Process Review DDES In Progress B3847 B3872 Not Applicable 3 Building Security System Review CBA Project Cancelled B3848 B3873 - 1 Organisational Training and Development

Training Program MOD Not Started B3849 B3874 -

The Barossa Council

Strategic Projects Framework

Progress Report - February 2016

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 .......... 11

FOCUS AREA 5 – SUSTAINABILITY ....................................................................................... 15

FOCUS AREA 6 – CORPORATE PLANNING ............................................................................ 18

FOCUS AREA 7 – ORGANISATIONAL IMPROVEMENT (BUSINESS EXCELLENCE) ......................... 20

FOCUS AREA 8 – PERFORMANCE MEASUREMENT & REPORTING ........................................... 22

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

styles

(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 monthly 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 still being calculated for this measure.

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% 89%

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. YTD for 2015/16, Council has achieved an average of 89% compliance with an increasing trend of compliance generated over the last 12 months.

Chart 1 – Eligible Purchases with a Matching Purchase Order


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.

• Council’s Budget and Budget Review Process was reviewed in November 2015 and gained CMT approval in January 2016.

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 139 Suppliers and 84 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.

• The contract and contractor register underwent further enhancements in December 2015 to facilitate the capture of induction details for individual employees within a company and improve workflows associated with contract and contractor management.

• 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 • Detailed status update, revised

project implementation plan and interim review report was submitted to Council in November 2015.

• The interim review report identifies a range of outputs and outcomes that have been achieved in supporting the implementation of the Regional Procurement Initiative since December 2014, including direct budgetary savings, process and compliance improvements and regional consistency of approach.

• As at December 2015, the Barossa Council had achieved $152,000 in actual budget $ savings and an additional $15,107 savings in resources as a result of the shared procurement approach.

• At its 17 November 2015 meeting, Council approved the continuation of the Barossa Regional Procurement Group (including the funding of a shared resource) for a further terms of 2 years to 30 June 2018 and authorised funding allocations for 2016/17 and 2017/18 in the long term financial plan.

• The November meeting Council Report and Interim Review Report are attached for information.

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 Workers Compensation scheme rebate.

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

37.95% Rebate Indication

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 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.

Percentage return MLS Scheme Bonus and Special Distributions

LGA MLS Bonuses are maintained at 2012/13 base level (85%). MLS special distribution

The MLS Scheme does not provide rebates as of July 2015 This year’s bonus of $70,897 was taken off the contribution for financial year 2015/16.

Next year’s Bonus payment will reflect the 96.4 % score from the Risk Profile Review. Changes to the MLS rebate payment process have meant that Council does not receive a cash rebate but a reduction in the MLS insurance amount due (as shown below). The 2015 Risk Reviews were completed later than normal by the Scheme so Councils were not scored on the Risk Review and the score did not impact or affect the bonus (bonus was calculated on claims data only). Therefor: 2015/16 $226,030 Contribution gross $70,897 Bonus $155,133 Contribution NET There was a 2014-15 MLS Special Distribution of $21,873.52 delivered in February 2016

Percentage Closeout of the yearly KPI Action Plan.

LGA KPI rebates are maintained at 2012/13 base level (85%).

89% Close out of the 2015 WHS Action plan achieved 12 of the 15 KPI actions. The three actions not closed out were all related to the new Internal Audit Process implementation.


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

IN PROGRESS

Risk Management Framework • The Barossa Council Risk Policy is now

signed off. Review of the risk register by Directorate is continuing and the Draft Risk Management Process is now being written.

ControlTrack • No change from previous report.

Mutual Liability Claims • Council has recently confirmed

settlement of a bike path Incident that occurred in 2014. The claimant’s damages payment has now been agreed upon and will be issued for an undisclosed sum, in accordance with The Local Government Mutual Liability Scheme Release Indemnity requirements.

Emergency Planning • As a result of issues identified during

the December 2015 Pinery Fires, the Council’s Emergency Action Plans are to be reviewed in consultation with CMT, The Emergency Planning Committee and OMG. Specific Training is to be provided On Emergency Response.

Business Continuity Plan (BCP) • The Local Government Risk Services

(LGRS) has provided Council with a Business Continuity Plan Maintenance Program Proposal. The Scope of the proposal is to provide a two year program that contributes to the ongoing relevance, readiness and effectiveness of the Councils Business Continuity Management Program.

External Audits and Rebates

2015 WHS Rebate • Council received the maximum

achievable WHS rebate this year due to our 100.0% closeout of the 2014 KPI Action Plan. This resulted in a $91,499 payment to Council.

• The 2015 KPI Action Plan achieved an 89% closeout which will go towards calculating the 2016 rebate payment. Staffing issues for this period lead to 3 out of 15 actions not being finalised. 2015 KPI Audit Summary Report

• The 2015 KPI Audit was undertaken in early November 2015 by the LGAWCS. The Audit was restricted to 11 sub elements (chosen by WorkCover) and the Injury Management/Return to Work component to 14 questions.

• The 2015 Audit verification of the selected sub elements resulted in four ‘full’ conformances, six observations and one non-conformance. All of the Injury Management requirements were found compliant.

• The non-conformance related to Councils Asbestos Management Plan which has yet to be finalised. The 2016 KPI Action Plan will be provided to the LGAWCS by March 2016. New Internal Audit Process

• The WHS Audit Process is now in its first review cycle and has been expanded as a draft, to incorporate all the council internal audit requirements. An internal Audit Schedule and Rational has been developed to guide the review of Councils WHS documents.

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%

7%

As at 2 February 2016, there has been a 7% reduction in overdue customer requests (that is the total number of new requests for the financial year which were overdue compared to 2013/14). During 2013/14 52% of all new requests were not completed by the nominated due date. For 2014/15, the rate of overdue requests was 43%. The 2015/16 year to date rate of overdue requests is 45%. 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. As per the project updates below, this issue has been addressed via the re-definition and approval of overdue versus on time request service levels.

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

ICT Strategic Plan 2015-2018 Approved by CMT in August 2015. Following approval of the ICT Strategic Plan, Council’s focus has moved to implementation of key projects arising from the plan. The ICT Steering Committee has been disbanded and accountability for the ongoing monitoring and review of the plan now sits with OMG (as Council’s management level working group). Key projects for 2015-16 include: • Digital Communication Strategy – In

Progress • Social Media Strategy – Complete • Customer Request Management – In

Progress • Search Process Review – In Progress • Corporate Calendar – Not

Commenced • PABX Upgrade – Unified

Communications – In Progress • Tech 1 – My Payroll – In Progress • Purchase Card Expansion – Not

Commenced • SharePoint Phase 2 – In Progress

• ICT Assets Review – In Progress • Office 2013 Upgrade – In Progress • Cloud Readiness Assessment – In

Progress • Elected Member Portable Device

Refresh – In Progress • Holistic Reporting Project – In

Progress • Pathway, Conquest & TRIM

Integration – Not Commenced • TRIM Upgrade – In Progress • Pathway Upgrade – In Progress • Corporate Application Roadmap – In

Progress • Visitor Information Centre & Gallery

Inventory Solution – In Progress • Risk Registers – In Progress • Development Application Process

Review – In Progress • Building Security System Review –

Cancelled • Organisational Training &

Development Training Program – Not Commenced

Customer Relationship Management Strategy Change Champion: Chief Executive Officer

IN PROGRESS

• At its December 2015 meeting,

Council approved recommended changes to Request Types and Service Levels following a customer request review that was conducted across all Council departments. The review was conducted to provide realistic timeframes for completion of requests, reporting and to provide accurate information to customers regarding the expectations of their request. The review determined the main priorities to review are Request Types, Service Levels and Processes.

• In addition to the above work, the Customer Relationship Management Strategy project team has undertaken a requirements gathering and analysis exercise to determine operational requirements to improve customer service including t the use of Pathway.

• 66 requirements were identified which have been classified into three key themes (eServices, Mobility and Integration) and four key functions (Integration, Mobility, Process Improvement and Online Services).

• Of the 66 requirements identified to improve Council customer service, 15

have been deemed achievable with internal resources and already licensed functions within Pathway. A further 30 requirements can be directly achieved through the implementation of Pathway smart mobile apps.

• In December 2015, CMT approved the purchase of Pathway Smart Mobile Apps, the implementation of which will improve customer service and generate efficiency gains across major service delivery areas including: o After hours animal reports o Payment form improvement o Bin Collection Information & New

Requests o Field based request management o Online request for service (via

the website) o Depot Maintenance Work

Scheduling Tool o GPS equipped devices – for field

location accuracy o Mobile inspection scheduling

tools o Mobile capacity to generate

letters o Online animal registrations o Online DA lodgement o Online forms o Online Search lodgement o Online Bookings for Venues etc o Phone based apps to allow staff

to access customer requests on any device in the field

o Receipt printing o Photos from mobile devices to

attach to customer requests o Ability to setup self-service kiosk.

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

• Unified Communications to be delivered in conjunction with customer service strategy (status update provided under ICT Strategic Plan).

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

42%

The overall occupancy rate for Cabins between 1 July 2015 and 31 December 2015 increased by 7% compared to June 2015. Occupancy rates are meeting the target for Ensuite Cabins (60%), however rates are still moderate for Cabernet Suites (50%), Jayco Cabins (46%), Park View Deluxe (32%) and Family Ensuite Cabins (39%). 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% (compared to previous year)

Pending Measure under construction – base data currently being compiled


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

Phase 1 – COMPLETE Phase 2 – IN PROGRESS

General Full review of business case financials presented and updates approved by Council at its July 2015 meeting. Further review will occur as part of the 2016/17 budget development. Revenues continue to trend lower than budget although variance is significantly less due to the reduction in the revenue targets for 2015/16, construction activity has been a factor in this result. Corresponding expenditures have been reduced to the extent possible.

Improvement to systems and processes around risk, work health safety and governance continue to be monitored and progressed; the majority of governance issues resolved or well advanced. As at 25/1/16 of the 34 improvement requirements 18 are completed, 2 are well advanced, 5 have commenced and 9 have not commenced. PHASE 2 - Investment • Planned construction activities for

2016 namely the pool, meeting room, toilets and village green near handover forecast for last week in February 2016.

• Four new cabins have been ordered with delivery and placement commencing in February 2016.

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

STAGE 1 – COMPLETE STAGE 2 – COMPELTE STAGE 3 – IN PROGRESS

STAGE 1 COMPLETE - Business Case for Change Approved STAGE 2 COMPLETE - Implementation of Business Case for Change recommendations complete All committees have transitioned to incorporated associations, volunteer groups or friends of groups. Chart below represents the current status of the original committees.

STAGE 3 – Continuation of work with the following groups that have identified their intent to incorporate with Council approval:

• Mount Pleasant Business and Tourism Alliance (Talunga Park, Mt Pleasant Hall, Main Street, Events and History Room)

• Tanunda Recreation Park • Sandy Creek Cricket Club

(broaden scope to manage

Curdnatta Park) • Stockwell Recreation Park and

Hall • Williamstown Historical Society

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.

• Revised Project Plan has been presented to CMT.

• The Strategic Asset Management Advisory Committee (SAMAC) has been created to discuss the strategic aspects of Asset Management.

• Rolling program and project commitments have been documented in a GANTT chat.

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 and

presented to OMG for feedback at its meeting on 12 October 2015. A Follow up OMG Workshop Session was held on 26 October 2015 to conduct a detailed review of the draft plan and associated performance measures. At the workshop it was resolved that the organisation would focus on the development of a key suite of performance measures and activity indicators under the holistic reporting framework (which align with Council’s current Strategic Plan and are imbedded in the current

draft Corporate Plan), however work to finalise the Corporate Plan will be placed on hold pending the development and finalisation of Council’s new Community Plan.

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

Result to be determined.

% 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






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. A draft Knowledge Management Policy has been forwarded to OMG for consideration and endorsement for all staff consultation on 2 February 2016.

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 Info Osmosis in a report commissioned by Council in June 2014. Operational improvements since June 2015 include: • 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.

• Transition to full electronic management of all records generated in relation to Development Applications and Waste Water Applications.

• Commencement of a project to facilitate integration between TRIM and Pathway, including development of a new record type for Development Assessment Containers and associated documents.

• Implementation of a pilot disposal program for hardcopy records under GDS 20.

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

• This project is included in Council’s ICT Strategic Plan to ensure that data collection improvements, reporting tools, software upgrades etc are cognisant of reporting framework impacts and 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, ICT Strategic

Plan and the Draft Corporate Plan to form the basis of Council’s Performance Reporting Framework.

• OMG is currently refining the core set of performance measures and activity indicators developed in support of the draft Corporate Plan.

• Concurrent with the development of the actual performance measures and indicators, consideration is being given to reporting formats and methodologies for various audiences, including high level ‘organisational health’ style performance reports, to dashboards, to detailed functional statistics and indicators for different areas of the business.

• Software solutions will be considered over the next quarter in accordance with Council’s corporate applications roadmap and the result of the cloud readiness assessment.

COUNCIL

CORPORATE AND COMMUNITY SERVICES

MANAGER REPORTS

17 NOVEMBER 2015 7.3.3 DEBATE AGENDA – MANAGER STRATEGIC PROJECTS 7.3.3.8 REGIONAL PROCUREMENT INITIATIVE UPDATE AND ONGOING IMPLEMENTATION PLAN B2415 INTRODUCTION In December 2014, Council approved a project scope for the delivery of the Barossa Regional Procurement Roadmap and authorised a funding allocation of $19,460 for the 2015/16 financial year budget in support of project implementation.

RECOMMENDATION That Council approves the continuation of the Barossa Regional Procurement Group (including the funding of a shared resource) for a further term of two (2) years to 30 June 2018 and authorises the funding allocation of $33,741 for 2016/17 and $32,485 for 2017/18 in the Long Term Financial Plan.

COMMENT The Barossa Regional Procurement Roadmap sets out a comprehensive program of initiatives to generate costs savings, implement process efficiencies, deliver economic benefits to the region and ultimately to grow both member Council’s and the region’s maturity in procurement. To facilitate implementation of key initiatives arising from the Roadmap, the five member Councils of the Regional Procurement Group (BRPG) agreed to co-fund the employment of a mid-level Central Regional Procurement Project Officer on a full time contract for 18 months in the first instance. The Project Officer was to be hosted by The Barossa Council with in-kind line management, accommodation and other operating costs support provided by The Barossa Council. Councils also agreed to co-fund (equal investment) ICT/Software requirements to support joint procurement/collaboration initiatives.

Barossa Council’s commitment to this approach was formalised in December 2014, after which we coordinated the recruitment of the project officer and commenced oversight of the delivery of the project.

In September 2015, an interim review was carried out by the five member Councils to determine progress in implementing the regional procurement road map, to assess outcomes and achievements to date, and to identify opportunities for improvement and refinement of the collaborative model.

A copy of the implementation review report presented to member Council CEOs is attached (Refer Attachment 1). Based on unanimous support for the continuation of the initiative, the report recommends extension of the operation of the Regional Procurement Group for an additional two years, including the continued funding of a shared resource, and provides a draft budget for approval. The attached report identifies a range of outputs and outcomes that have been achieved in supporting the implementation of the Regional Procurement Initiative since December 2014. A summary of achievements is provided below. Governance • Signed Memorandum of Understanding setting out each Council’s commitment

to the Regional Procurement Initiative. • Introduction of three tiers of reporting. • Signed Resource Sharing Agreement facilitating joint funding of shared resource,

sharing of data and information, and commitment to joint procurement of key categories of goods and services.

• Project Plan providing high level objectives and key project deliverables. • Shared Office Position Description. • Minuted BRPG meetings. Barossa Regional Procurement Group Collaborative Model • Standard suite of templates covering the entire procurement lifecycle – the

development of which has prompted additional improvements and increased maturity within The Barossa Council suite of templates when ensuring alignment between the regional and internal procurement frameworks.

• Comprehensive Barossa Regional Procurement Forward Procurement Plan for 2015/16 to 2017/18.

• Savings register facilitating detailed evaluation of financial savings (in terms of the contract price and resource savings from the shared approach to market) and other non-financial benefits such an improved level of service, improved efficiency, community benefit or value adds.

• Tender and contract registers for central management of key records and information.

• Continuous improvement register highlighting future opportunities for improvement.

• Standard single online General Council Induction for all five Councils. This online resource is available via both individual Council’s websites and the BRPG website.

• BRPG branding to build Staff, Contractor and Community awareness of the initiative and to provide a clear visual differentiation between joint approaches to the market and individual Council tendering activity.

• BRPG Website, providing a one stop shop for easy access to information for both suppliers and internal staff across each Council.

Joint Procurement The BRPG has facilitated 8 joint approaches to the market, including Office Stationery, Road Reseal, Line Marking, Fire Services, Audit Services, Bulk Fuel, Fuel Fleet Cards and Building Services Panel. Overall Combined Savings Achieved

Name of Procurement Gross $ Savings Shared % Saving Office Stationery $13,165.00 10% Road Reseal $153,084.00 5.81% Linemarking $10,780.00 5.36% Fire Services $35,027.00 61.45% Audit Services $33,000.00 N/A Fuel Fleet Cards $12,054.00 NA Building Panel - - Bulk Fuel* - - TOTAL $152,192.02 -

* Bulk Fuel tender not awarded due to failure to deliver value for money outcome The Barossa Council has participated in all eight approaches to the market, however withdrew from the Audit tender prior to appointment of a successful tenderer. The Barossa Council Savings Achieved Name of Procurement $ Savings Resources

Gross Total Saving

Office Stationery $3,938.00 $525.00 $4,463.00 Road Reseal $120,000.00 $3,548.40 $123,548.40 Linemarking $8,400.00 $1,795.38 $10,195.38 Fire Services $16,690.00 $1,810.50 $18,500.50 Audit Services - $1,810.50 $1,810.50 Fuel Fleet Cards $3,164.02 $1,166.67 $4,330.68 Building Panel - $4,451.20 $4,451.20 Bulk Fuel - - - TOTALS $152,192.02 $15,107.64 $167,299.66

In addition to Budget savings, The Barossa Council has achieved process efficiencies by sharing the tender process; resulting in resource savings of approximately $15,000 across the above tenders. Council has also seen improved procurement planning, including clear specification of goods and services required; an increase in compliance with Council’s Procurement Policy and Process and associated legislative requirements; and stronger networking between lead officers within each Council, particularly in building maintenance and works and engineering services. A key outcome of the establishment of the Building Maintenance Panel (the Panel) was the streamlining and consolidation of the Region’s, and in particular The Barossa Council’s, pool of suppliers in this category. Suppliers in this category were traditionally engaged via a minor works contract, negotiated annually, or a basic purchase order at best. There were varying levels of compliance with minimum

compliance standards and disparity in each Council’s approach to their ongoing engagement and management. The Panel has now provided a consistent minimum standard for this category of suppliers across all five councils; reduced duplication of effort in the ongoing verification and management of these standards; provided an equal playing field for selection against nominated schedule of rates; improved the supplier’s experience in doing business with us; and demonstrated the region’s commitment to improving the capacity of local suppliers to meet Council standards. An additional benefit of the regional procurement initiative, particularly the employment of a shared resource, has been the validation and improvement of Council’s internal procurement framework. The approach developed and implemented at Regional level is based on best practice, contributing to a growth in maturity at both regional and The Barossa Council level. The diagram below demonstrates this growth in maturity.

In December last year both individual member Council’s and the group’s collective maturity in procurement practice and performance as assessed as Level 1 (Emergent)/Level 2 (Basic), where procurement is largely uncoordinated, there are gaps in compliance and the focus is primarily on meeting legislative requirements. The aim at that time was to grow to Level 3 (Developing) maturity in the medium term (with procurement foundations in place with improved controls and some functional and category strategies in place); and ultimately grow to Level 4 (Advanced) at the regional level in the long term (a Regional Centre of Excellence for procurement across all expenditure). Next Steps The next phase of planned activity for the Regional Procurement Initiative includes: • Further enhancement of the website. • Ongoing review and development of the forward procurement plan.

• Leveraging off The Barossa Council contract/contractor registers to coordinate the capture of data for the ongoing management of contracts and contractors and the identification of streamlined solutions for the sharing of this data across five councils.

• Staff and supplier surveys. • The holding of supplier forums to facilitate relationship building and sharing of

best practice information and tools. • Contractor performance monitoring. • Ongoing implementation of deliverables under the Project Scope and original

Regional Procurement Roadmap. • Sourcing of Grant Funding in support of key initiatives, including legal validation

of the regional framework developed to facilitate sharing of the framework more broadly across the sector.

• Joint Tenders – Cleaning, Bulk Haulage, Air Conditioning, Asbestos Removal, Civil Works Panel, Horticulture and Arboriculture Panel, Pest Control, Building Services Panel (round 2), Testing and Tagging and Waste Management.

To facilitate the ongoing achievement of the above objectives and based on the evidence of benefits achieved to date, each Council has unanimously provided in principal support for the extension of the operation of the Regional Procurement Group for an additional two years, the continued funding of a shared resource, and centralised funding of other core administrative activities associated with the initiative. Budget inclusions for 2016/17 and 2017/18 include: • Senior Project Officer

o Travel Allowance - to be included in salary • Project Officer to be hosted by Barossa Council • In-kind Line Management Support Provided by Manager Strategic Projects –

Barossa Council • Legal Validation of Regional Procurement Framework (Processes and Templates) • Spend Data Analysis – Combined analysis of financial data for all five Councils • Maintenance and Enhancement of Website • Staff Training & Development • Central Coordination of Tender Advertising

In accordance with Council’s Budget and Business Plan and Review Policy and associated process and Prudential Management Policy the relevant Business Analysis Tool and Due Diligence Assessment is provided as Attachments 2 and 3. Attachments Attachment 1: Barossa Regional Procurement Group – Implementation Review – CEO Report – October 2015 Attachment 2: Bid Analysis Tool Attachment 3: Due Diligence Report LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Local Government Act Section 8(a), (b), (h) - (k) – Principles to be observed by a Council Section 49 – Contracts and tendering policies

Policy Procurement Policy Budget and Business Plan and Review Policy and Process Prudential Management Policy and Process Council Strategic Plan 2. Economic Wellbeing – Business and Industry 4. Governance and Organisation – Responsibility 4. Governance and Organisation - Systems FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial Total Project Cost (excluding internal resources) 2016/17 = $134,963 2017/18 = $129,940 Total Investment Per Council (excluding internal resources) $33,741 (2016/2017) $32,485 (2017/2018) The proposed budget for 2016/17 and 2017/18 represents an increase of just under $15,000 compared to the 2015/16 approved budget. This increase reflects the centralisation of additional costs associated with the initiative including: Council spend data analysis (previously procured via ArcBlue); tender advertising; website maintenance and enhancement; staff training; the payment of a travel allowance to the project officer; and an increase in the salary of the project officer to reflect an increase in the level of responsibility and subject matter expertise required of the role. Budget savings achieved via the initiative to date of approximately $152,000 per annum are intended to offset the ongoing annual investment in the initiative within the forward budget. Funds are also currently being sought from the Central Regional Local Government Association to contribute to the validation of the regional framework from a legal perspective and to enhance the suite of templates, tools and training developed to date for sharing more broadly across the sector. Resource It is proposed that The Barossa Council will continue to host the shared procurement resource, providing office accommodation and direct line management support to the Regional Procurement Project Officer via the Manager Strategic Projects. Risk Management The ongoing basis of the funding proposal is to adequately resource the ongoing implementation of the Regional Procurement Roadmap and consolidate work carried out to date by the group in delivering upon the first year’s targets. The risk of

not proceeding in this manner is that the momentum gained in introducing the overarching strategic reform will be delayed or indeed lost as it will not be prioritised equally in each Council. The secondary risk, if the proposal is approved, is the ongoing disparity in individual Council’s capacity to support and promote the initiative when faced with competing organisation priorities. This disparity creates a level of ambiguity in terms of the focus and effectiveness of the group, results in varying levels of growth in individual council procurement maturity, and compromises the project’s overall capacity to deliver on agreed targets. COMMUNITY CONSULTATION Community consultation is not required. Future Draft Budget and Long Term Financial Plan will be subject to community consultation.

BAROSSA REGIONAL PROCUREMENT GROUP –IMPLEMENTATION REVIEW

CEO REPORT – OCTOBER 2015

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Contents Contents Where Have We Come From................................................................................................. 3

What Have We Achieved ...................................................................................................... 4

Official/Legal Documents .............................................................................................................. 4

Wave 1 & 2 Opportunities ............................................................................................................ 4

Savings Snapshot .......................................................................................................................... 6

Combined Savings Snapshot (excludes resources and materials) ................................................. 7

Individual Council Savings Snapshot ............................................................................................. 8

Templates ................................................................................................................................... 10

Tender Registers ......................................................................................................................... 12

Procurement Plan ....................................................................................................................... 12

Barossa Regional Procurement Group Website .......................................................................... 13

Tender Lodgement Format ......................................................................................................... 14

Continuous Quality Improvement Register ................................................................................. 14

Roadmap Implementation .......................................................................................................... 15

Project Scope (Shared Resource) ................................................................................................ 16

Website....................................................................................................................................... 17

Forward Procurement Plan ......................................................................................................... 17

Contract Register ........................................................................................................................ 17

Surveys ....................................................................................................................................... 18

Panel Supplier Forum .................................................................................................................. 18

Performance Monitoring Template............................................................................................. 18

Project Scope and Roadmap Implementation ............................................................................. 18

Tendering .................................................................................................................................... 18

Grant Funding ............................................................................................................................. 19

Continuation of Project / Costings ...................................................................................... 20

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Where Have We Come From

The first joint meeting of the Working Group for the five (5) Councils was held on 5 December 2013.

During the initial 6-8 month period leading up to the roadmap workshop discussions in September 2014, the following matters were deliberated by the Working Group:-

• Formation of a Name for the Group; • Creation of a Draft Memorandum of Agreement; • Discussion on the ongoing Management/Administration of the Group; • Collation of potential Joint Procurements; • Discussions and Creation of Template Documents; • Negotiation of Office National Contract.

Individual Councils proceeded with undertaking their own ArcBlue Roadmap process. This involved undertaking an audit on procurement and tendering processes against sector standards, the results of which were collated as part of the Regional Roadmapping Workshop.

The first Joint Regional Procurement Roadmap Workshop was held in June 2014, which included the CEO’s, members of the Working Group and representatives from ArcBlue. Outcomes of the workshop included:-

• Priority Expenditure Categories Determined - Wave 1 and Wave 2 Opportunities Identified by Group for further validation;

• Validation Phase – Action Plan - Lead Councils were assigned to validate items from Wave 1 and 2;

• Regional Services Panel – Development Process -This included proposed single panel of pre-qualified suppliers, including management processes and portal software.

In September 2014 the second joint Regional Procurement Roadmap Workshop was held with CEO’s and ArcBlue. Outcomes of this workshop included:-

• Broad Agreement of Regional Roadmap – Action Plan; • In principal support of governance arrangements – Working Group to meet monthly, CEO

meetings to be held 6 monthly and Memorandum of Understanding to be entered into; • Commitment to development of a Regional Procurement Framework - Standard

Procurement Policy and Standard set of Procedures and Templates; • Shared commitment to resourcing – Funding to be provided by all Councils for shared

project resource; • Uptake of the Regional Spend Analysis - Based on the financial data provided by all Councils; • Agreement of broad KPIs proposed by ArcBlue to measure progress and success of

collaborative arrangement;

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• Commitment to development of collaborative contracts – Validation of Priority (Wave 1), Wave 2 opportunities, contract program co-ordination, resourcing, roles and responsibilities;

• Identification of additional Regional Roadmap Priorities – Forward Procurement Plan, Contract Management Development Program, Develop Training Plan and Regional KPI’s.

What Have We Achieved

Official/Legal Documents

On 1 September 2014, the Memorandum of Understanding was signed by all five (5) Council’s. This document focused on the potential areas for participation; the aim, structure and role of the Barossa Regional Procurement Group; including review and reporting timeframes.

A Project Plan was then developed to translate the high level roadmap into a practical implementation plan and presented to the CEO’s seeking both staff commitment to core tasks and deliverables and funds to engage a Project Officer for an 18 month period to provide administrative resources to the Councils for regional procurement activities.

Following Council approval of the Project Plan and resource commitment, a Shared Resource Agreement was entered into by all five (5) Councils which highlighted the roles and responsibilities of each Council, financial contributions attributed, the scope of the Project Plan, and the role of The Barossa Council as host of the Project Officer.

Following the execution of the above documentation, a Position Description was created for the Project Officer, an externally advertised recruitment process was undertaken and a Project Officer commenced in March 2015.

Wave 1 & 2 Opportunities

Since the September 2014 Arc Blue Workshop the following procurements have been undertaken:-

• Linemarking • Road Reseal • Maintenance & Testing of Fire Safety Equipment • General Repairs & Building Maintenance Works Panel

Other opportunities have arisen during this period and have also been contracted out:-

• Office Stationery • Audit Services • Fleet Fuel Cards

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The outcomes and benefits associated with the capturing of Wave 1 and 2 opportunities are highlighted below and it should be noted that material and resource savings have not been incorporated but have generated significant savings to the Councils which has been highlighted in the Savings & Benefits Register:-

Office Stationery

• Lead Council – Town of Gawler. • Two Office National Franchisees (Gawler and Barossa) providing services to all five (5) Councils. • Provides a 5-10% saving, 48 hours delivery, free delivery of goods over $150. Provides less

transactions and processing of invoices.

Road Reseal

• Lead Council – Light Regional Council. • Single Supplier selected for all 5 Councils. • Savings generated between 2.5% and 8.7% across the Councils, excluding Light Regional Council

who did not provide their financial information.

Linemarking

• Lead Council – Mid Murray Council. • Single Supplier for all Councils (excluding Light Regional Council). • Provides a saving across the participating Councils of 5.36%.

Fire Services

• Lead Council – Mid Murray Council. • Single Supplier for all Councils (excluding District Council of Mallala). • Provides a saving across the participating Councils of 61.45% from existing rates.

Audit Services

• Lead Council – Mid Murray Council. • Two suppliers for 2 Councils –Mid Murray Council and Light Regional Council. • The Barossa Council and District Council of Mallala withdrew from the process after the

Evaluation Stage had concluded. • Lessons learnt from this process resulted in recommending that a regional procurement should

not be undertaken in the future. One of the reasons is due to the Evaluation Team decision not being the final decision maker for this process ie requirement to go to Audit Committee.

• Provides a loss across the participating Councils but it is difficult to identify the actual cost saving attributed due to the additional requirement for the auditor to audit internal financial controls. Overall costs were comparable with previous year.

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Bulk Fuel

• Lead Council – Mid Murray Council. • Did not deliver value for money through Vendor Panel process. • Individual Councils to negotiate direct with existing providers on existing arrangements.

Fuel Fleet Cards

• Lead Council – Mid Murray Council. • Single Supplier for all Councils (excluding Light Regional Council). • Provides a saving across the participating Councils of 2.9 cents per litre off diesel and unleaded,

and 1.0 cents per litre off for LPG at the pump. This equates to a saving of approximately $12,054 across the participating Councils annum.

Building Services Panel

• Lead Council – Barossa. • 34 Suppliers which resulted in 128 Agreements created over the 5 Councils. • Provides a pool of suppliers that have been prequalified.

Savings Snapshot

The following two tables provide a snapshot from the Savings and Benefits Register.

The first table provides an overview of the combined Councils procurements undertaken to date including contract period, lead council, budgeted figures, actual $ savings and actual % savings.

The second table provides the individual Council summaries of procurements that have been entered into with $ savings and materials and resource $ savings.

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Combined Savings Snapshot (excludes resources and materials)

Contract Period

Name of Procurement Scope of Procurement From To Lead

Council Total

Budgeted $ Total Actual

$ Savings

Shared %

Saving

Office Stationery

5 Councils agreed to enter into a single contract with a current local single office stationery provider

1/11/2014 31/12/2016 Gawler $ 131,657 $ 13,165 10.00

Road Reseal

5 Councils agreed to enter into a combined programme of delivery of bitumous sealing

1/11/2015 30/10/2020 Light Regional $ 2,636,000 $ 153,084 5.81

Linemarking

4 Councils (excluding Light) agreed to enter into a combined programme to undertake maintenance linemarking

1/09/2015 30/08/2018 Mid Murray $ 201,000 $ 10,780 5.36

Fire Services

4 Councils (excluding Mallala) agreed to enter into a combined programme to undertake fire service maintenance

1/07/2015 30/06/2018 Mid Murray $ 57,000 $ 35,027 61.45

Audit Services

4 Councils (excluding Gawler) agreed to enter into a joint procurement process to seek the services of an auditor with the Barossa Council entering into this contract in 16/17

1/08/2015 30/06/2020 Mid Murray $ 29,900 $ 33,000

Fuel Fleet Cards

4 Councils (excluding Light) agreed to enter into an arrangement for fleet fuel cards 1/09/2015 30/06/2018

Mid Murray

$ 12,054

$ 3,055,557 $ 257,110

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Individual Council Savings Snapshot

District Council of Mallala

Name of Procurement $ Savings

Resources & Materials Total Saving

Office Stationery $1,420.00 $ 525.00 $1,945.00

Road Reseal $(5,000.00) $3,548.40 $(1,451.60)

Linemarking $4,180.00 $1,795.38 $5,975.38

Fuel Fleet Cards $1,641.60 $1,166.67 $2,808.27

Building Panel $4,451.20 $4,451.20

TOTALS $2,241.60 $11,486.64 $13,728.24

Mid Murray Council

Name of Procurement $ Savings Resources Total Saving

Office Stationery $ 1,800.00 $ 525.00 $2,325.00

Road Reseal $12,500.00 $3,548.40 $16,048.40

Linemarking $1,795.38 $1,795.38

Fire Services $ 6,736.00 $1,810.50 $8,546.50

Audit Services $ (4,100.00) $1,810.50 $(2,289.50)

Fuel Fleet Cards $ 2,450.20 $1,166.67 $3,616.87

Building Panel $4,451.20 $4,451.20

TOTALS $19,386.20 $15,107.64 $34,493.84

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The Barossa Council


Office Stationery $ 3,938.00 $ 525.00 $ 4,463.00

Road Reseal $120,000.00 $3,548.40 $123,548.40

Linemarking $ 8,400.00 $1,795.38 $ 10,195.38

Fire Services $ 16,690.00 $1,810.50 $ 18,500.50

Audit Services $1,810.50 $ 1,810.50

Fuel Fleet Cards $ 3,164.02 $1,166.67 $ 4,330.68

Building Panel $4,451.20 $ 4,451.20

TOTALS $152,192.02 $15,107.64 $167,299.66

Town of Gawler


Office Stationery $ 4,025.00 $ 525.00 $ 4,550.00

Road Reseal $25,584.00 $3,548.40 $29,132.40

Linemarking $ (1,800.00) $1,795.38 $ (4.63)

Fire Services $ 4,114.00 $1,810.50 $ 5,924.50

Fuel Fleet Cards $ 4,798.35 $1,166.67 $ 5,965.02

Building Panel $4,451.20 $ 4,451.20

TOTALS $36,721.35 $13,297.14 $50,018.49

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Light Regional Council


Office Stationery $1,982.00 $ 525.00 $2,507.00

Road Reseal Did not Provide $3,548.40 Did not Provide

Fire Services $7,487.00 $1,810.50 $9,297.50

Audit Services $1,000.00 $1,810.50 $2,810.50

Building Panel $4,451.20 $4,451.20

TOTALS $10,469.00 $12,145.60 $19,066.20

A separate Savings & Benefits Register for a detailed breakdown on the individual Procurements undertaken has been provided to each of the Councils.

Templates

A number of standard documents have been created to enable the procurements to be commenced, as well as providing supporting tools for evaluations and reporting to be undertaken. It is envisioned that the individual Councils will take these documents and rebadge/utilize them within their own Councils so that a consistent framework is created across all of the Councils. This will provide staff who potentially may be requested to participate on a regional evaluation team process to be comfortable undertaking this process, as they will be familiar with these documents being not dissimilar to the ones used within their own Council.

Template documents created to date include:-

Master Tender Evaluation Package

This spreadsheet contains a number of documents comprising:-

• Opportunity Analysis/Acquisition Plan – seeks individual Councils interest in proposed procurement – description provided of procurement being sought, need to provide $’s current arrangements, if a current contract is in place when it expires, any risks, collaborative opportunities, key enablers, steps to validate opportunity, potential evaluation team member volunteers, delegations, (contract and financial), who will be in charge of contract, who will be signing contract, timing and the next steps.

• Tender Summary – this provides the name and number of the tender, opening and closing times, tender panel members as well as officers opening the tenders.

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• Tender Opening – this provides the name, addresses, ABN and contact details of tenders received upon opening.

• Tender Conformance Evaluation – includes pre-qualification criteria that is assessed against Yes/No responses. This will determine if the tender is conforming and the results will then determine whether further evaluation of the tender will occur.

• Criteria Evaluation – This provides a point score from 0-5 for each schedule that has been deemed by the tender evaluation team to be a vital component of the tender. It has weightings (that were agreed to prior to opening of tenders) that are calculated against the scores made by the Evaluation Team and culminates in the calculation of a value for money score.

• Comments – allows an opportunity for the evaluation team to make any notes on the schedules and tenders as they work through them for discussion at the combined evaluation team meeting.

• Pricing Schedule – in some instances a lump sum is not required and a concise breakdown of schedule of rates is created for ease of the evaluation team assessment.

• Instruction Sheet • Evaluation Criteria Weightings – this is where the evaluation team have agreed on key aspects of

the tender that they wish to assess, weighting out of 100% assigned to each individual schedule. It also contains a Conflict of Interest and Confidentiality section should someone outside of the Councils be included on an evaluation team.

• Savings Register – this is where the benefit types and descriptions will be provided for transcribing into the Savings & Benefits Register.

Tenders and Contracts

Documents have been created based on the LGA Procurement documents and rebadged and reformatted to reflect the Barossa Regional Procurement Group. Additional items relative to WHS have also been incorporated into these templates. A number of supporting documents have also been created. Templates created to date consist of:-

• Request For Tender – Goods • Request For Tender – Services • Services Agreement (continuing) • Services Agreement (one off) • Agreement for Purchase of Goods (continuing) • Agreement for Purchase of Goods (one off) • Letter to Successful Tenderers • Letter to Unsuccessful Tenderers • Major Works Agreement – Conditions of Contract • Minor Works Agreement • Panel Deed & Conditions of Engagement • Tender Addendum

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Regional Working Group Monthly Meeting Agenda and Minutes

Meeting Agenda and Action Record includes previous actions, standard organisation items, procurement plan updates and other business.

Monthly CEO Report

This report includes Progress Against Deliverables & Milestones, Project Outputs & Outcomes, other Key Outcomes, Current Project Risks or Barriers to Success, Project Actions for Next Two Months and Key Dates to Note.

Tender Registers Two (2) Tender Registers have been created. The First Register is for inclusion on the individual Council’s website and the Barossa Regional Procurement Group Website. This provides:-

• Tender name; • Participating Councils; and • Status.

The Second Register is for Council’s use only which provides:-

• Tender number; • Contract number; • Tender name; • When the tender was open; and • When the tender closed.

Procurement Plan

A Forward Procurement Plan has been created documenting:-

• 2015/2016 Contract Commencement; • 2016/2017 Contract Commencement; • 2017/2018 Contract Commencement; and • Contract Commencement to be Determined

Within these Contract Commencement spreadsheets the following detailed information is provided:-

• Categories; • Total contract $ value estimate; • Comments on reason for procurement; • Agreed contract approach (panel or regional);

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• Target contract length; • Target contract start date; • Indicative tender release date; • Lead Council responsibility.

Also contained within the Forward Procurement Plan is a secondary spreadsheet with additional granular detail regarding individual Council arrangements on current contract expiry dates and budgeted $ value estimates.

Inductions

A standard generic hardcopy regional induction book was created by the Northern Work Health and Safety Practitioners Group at the request of the Working Group. To date approximately 36 inductions have been completed. Following this, a general online induction for all Council contractors, regardless of whether they are engaged by an individual Council or via a regional procurement, has been created, led by the Town of Gawler. An Online Regional Induction portal has been linked to the Regional Procurement Group website as well as each Council’s own website for contractors/consultants to undertake online inductions for all Councils. From a Barossa Regional Procurement Group perspective this provides enormous efficiencies in that the contractors now do not need to attend each of the Councils and undertake inductions, they will only be required to undertake a single regional general induction online followed by site specific inductions. Barossa Regional Procurement Group Website

Barossa Council’s ICT Team has led the development and Launch of the Group’s Website at barossaregionalprocurement.com. The website provides a one stop shop for easy access to information for both suppliers and internal staff across each Council. External customers are able to view:-

• Information about Barossa Regional Procurement Group and why and how it was formed. • WHS for Contractors – Online induction area as well as useful templates. • Tender Register – providing tender name, participating Councils and status, shows links to

open tenders currently being called, ability to submit a tender and be able to contact the Group. This aims to keep suppliers and the community informed of procurements that have been undertaken from a regional perspective.

• Fact Sheets & Downloads – provides a range of useful fact sheets, information guides and templates.

• Submit tenders and receive an automatic acknowledgement confirmation.

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• Contact Details for the Group ie Project Officer. • Links to each Council’s websites.

Internal customers are able to view:-

• Current contracts – provides list of contractors where agreements have been signed to undertake certain works;

• Regional panels – provides the 3 panels that have/will be created ie Building Works, Civil Works and Horticulture/Arboriculture;

• Forward Procurement Plan – this provides the same information as the External customers but also includes Planned Tenders & Contracts with target dates;

• Templates – access to current templates and evaluation processes; • Council’s Regional Procurement Working Group contact details.

Tender Lodgement Format

The Group have been extremely successful in negotiating with both the Department of Premier and Cabinet (SA Tenders) and the Local Government Association Procurement (Vendor Panel) for tenders released via these websites being lodged under the name of the Barossa Regional Procurement Group. It is a requirement that any organisation wishing to be registered on these sites is required to be a legal entity. Both agencies have generously allowed the Barossa Regional Procurement Group to become a registered organization within their systems with the kind assistance of the behind the scenes registration details reflecting The Barossa Council. Continuous Quality Improvement Register

A simple Register has been adapted which provides the framework of tasks required to be undertaken to continue to enhance and take into the future the framework and processes currently being worked with. Savings Register

This document is an evaluation tool to identify the savings and benefits resulting from the regional procurement projects undertaken. Savings provided within this document are based on the first year of the contract. A Summary Sheet provides an overview of the regional procurement projects that have been undertaken and includes:-

• Procurement Number; • Project Start Date; • Name of Procurement; • Scope of Procurement; • Contract Period;

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• Lead Council; • Total Budgeted $’s across all the Councils who participated; • Total Actual $ Savings across all the Councils who participated; and • Shared % savings across all the Councils who participated.

It also provides a summary of the Panel Contracts that have been entered into with the same information as per the above.

Individual spreadsheets have been created for each procurement process undertaken with the participating Councils (incorporating the information contained above) and also including additional information:-

• Individual Councils $’s budgeted; • Total Councils $’s budgeted; • Individual Council’s Actual $ Savings; • Individual Council’s Actual % Savings; and • Total Resource Saving across all Councils who participated (averaged across estimated time

and average Wage Level);

Finally, also contained on the individual spreadsheets are the Benefits of the procurement that have been undertaken. It highlights:-

• Benefit type – this could be by: Improved Deal, Improved Efficiency and Community Benefit; • Description of Benefit – this provides clarity around the benefit type selected above and

what this process has achieved; • How Measured – provides information, where applicable, on how the benefit has been

measured; • Data Collection – this provides the information on how we are able to measure the benefit

in the previous dot point; and • Results of the benefit – this indicates the overall benefit gained by the Benefit Type.

Roadmap Implementation

A review of the 0-6 Procurement Roadmap (detailed) map provides for 17 actions. Of these actions, 6 have been completed with the other items either commenced or still to be actioned.

A review of the 6-12 Procurement Roadmap (detailed) map provides for 17 actions. Of these actions, 4 have been completed with one an ongoing action and the majority of the other items still to be actioned.

A review of the 12-24 Procurement Roadmap (detailed) map provides for 14 actions. Of these actions only 1 has been completed with the other items still to be actioned.

Full details of progress against actions are contained in the road map document provided to each of the Councils.

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Project Scope (Shared Resource)

Some of the key initiatives specified within the Project Scope, which set out priorities for delivery between December 2014 and June 2016 included:-

• Deliverables & Milestones (6 Projects) • Project Success Measures

With respect to the Deliverables & Milestones, the majority of these projects have been completed and are captured in the achievements to date highlighted earlier.

With regards to projects 1 to 5, the only areas that have not been completed and are required to be reviewed and assessed by the Working Group to meet the June 2016 deadline include:-

• Develop and implement communication strategy; • Develop regional training plan; • Develop standard procurement KPIs and targets and associated reporting framework.

With respect to Project 6 – Regional Strategic Procurement Planning, a further review and assessment by the Working Group needs to occur. Items contained within this project not undertaken to date are:-

• Conduct research on Supply Market capability including contractor consultation; • Determine Contract Commercial Model and future contract management model; • Develop compliance audit controls; • Develop Regional Supplier Education Program; • Develop Procurement IT Strategy; • Develop & Implement Compliance Audit controls; • Explore regional opportunities for Grant & Asset Management Planning; • Develop & Implement Project Management methodology; • Develop & Implement full Risk Management methodology; • Develop & Implement KPIs.

Likewise some of the Project Success Measures will need to be reviewed and assessed by the Working Group. These originally included:-

1. Cost Savings (direct external) – Target 4-5% Saving on those activities undertaken under the regional procurement initiative.

2. Internal Productivity Efficiency Savings – eg reduction in low value transactions. 3. Roadmap Milestone Completion. 4. Compliance – eg compliance to delegation thresholds, invoice without Purchase Orders. 5. Spend Under Regional Contract. 6. Qualitative Surveys – Suppliers & Staff. 7. Training program delivered. 8. Compliance to Audit requirements.

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Where Are We Going

Website

Further enhancement of the website is planned to provide broader communication to internal and external customers via one central location for all Councils. This will include:-

External Customers • WHS template documents including SWMS, licences, etc; • Tendering supplier guide; • Ability to download and upload tenders; • Link to all Councils Procurement Policy sites;

Internal Customers • Evaluation documentation distribution; • Roadmap information; • Savings Register; • Current CEO Report; • Current Working Group Monthly Agenda/Minutes; • Detailed Forward Procurement Plan; • Contract Register;

Forward Procurement Plan

The Working Group will need to review the forward procurement plan, by way of a planning day, to further capture the information previously presented within category based data from the Arc Blue process; to incorporate current financial data for 2014/2015; and to undertake further data collection and analysis to determine timeframes.

Contract Register

A list of all contractors/consultants engaged via regional procurement initiatives is to be incorporated into a data base so that the following information will be able to be viewed via the website.

• List of suppliers; • Status; • Annual renewal date for insurances, etc; and • Council Representative in charge of service.

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Surveys

A survey will be undertaken with Council Staff to obtain feedback on the regional procurement process to date and to identify lessons that can be learnt for future procurements.

A survey will also be carried out with local Suppliers to determine the benefits and challenges that they have faced during the procurement process for future lessons to be learnt.

Panel Supplier Forum

A Panel Supplier Forum will be held to facilitate a meet and greet between relevant council officers and contracted suppliers. It is anticipated that several sessions will be offered across a couple of Councils to allow full participation across the geographic layout of the group. The Supplier Forums will also provide information on the website and what support and resources are available for suppliers, a supplier feedback survey and a handout relating to Doing Business with Council.

Performance Monitoring Template

A Contract/Contractor Performance Monitoring template is currently being reviewed by the Regional WHS Practitioners Group and is intended to incorporate both contracting requirements, WHS hazards, site induction information and an evaluation section for completion by relevant Council Representatives when they undertake a site visit. This will then be collated for providing to the relevant Councils for consideration when renewal periods arise.

Project Scope and Roadmap Implementation

The remainder of 2015/16 will provide an opportunity for the Project Officer and Working Group to continue to deliver on the projects set out within the approved Project Scope, with a particular emphasis on training, supplier engagement and capacity building and undertaking data analysis and evaluation to ensure that original road map milestones and building blocks to advancing procurement practice maturity are implemented (items outstanding were highlighted earlier in this report).

A key component of this work will be the review timeframes, actions and responsibility contained within the immediate 0-6 months, 6-12 months and 12-24 months – including the creation of Roles and Responsibilities, Terms of Reference, Evaluation Team Responsibilities, etc.

Tendering

The focus in the immediate future in terms of tendering will be the calling for tenders for the Wave 1 and 2 procurements (and any key others that have and may arise). This would include, subject to the review of the forward procurement plan:-

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2015/2016 – subject to data validation

• Cleaning • Bulk Haulage • Air Conditioning • Asbestos Removal • Civil Works Panel • Arboriculture & Horticulture Panel • Pest Control • Building Services Panel – Round 2 • Testing and Tagging • Waste Management

Grant Funding

Opportunities for grant funding should be considered with approaches sought through the LGA via the CEOs. Many Councils, including those interstate, are now closely observing the Group and its activities. As a result, enquiries are being received by the Project Officer and Barossa Council (as host agency) on obtaining the Group’s framework/documentation and there is an opportunity for the LGA and/or LGAP to provide either financial or resource support to the Barossa Regional Procurement Group to validate the model for sharing more broadly across the state.

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Continuation of Project / Costings Taking into consideration the individual Council Feedback received, all participating Councils are of the opinion that there is undeniably merit in the collaborative approach, and engagement of the Project Officer, continuing after the 30 June 2016 timeframe.

Proposed project resourcing model costs are outlined for 2016/2017 and 2017/2018 which include:-

• Senior Project Officer (GOS 7 - 1.0 FTE $ plus on costs) o Travel Allowance - to be included in salary

• Project Officer to be hosted by Barossa Council • In-kind Line Management Support Provided by Manager Strategic Projects – Barossa Council • Legal Validation of Regional Procurement Framework (Processes and Templates) • Spend Data Analysis – Combined analysis of financial data for all five Councils • Maintenance and Enhancement of Website • Staff Training & Development • Central Coordination of Tender Advertising

Estimated individual Council costs to resource the above project model are:-

$33,741 (2016/2017)

$32,485 (2017/2018)

Recommendation

1. That the Barossa Regional Procurement Group continue for a further term of two (2) years from 1 July 2016 to 30 June 2018.

2. That the Project Officer resource continue to be funded by the Barossa Regional Procurement Group for a further two (2) years from 1 July 2016 to 30 June 2018.

3. That the participating Councils contribute and budget for estimated costs of $33,741 (2016/2017) and $32,485 (2017/2018).

Project : Operating Project Project Name : Shared Procurement Resource

Score

Sum

5 Almost Certain 5 Catastrophic 5 TBC 5 Externally Sensitive - Not Manageable 44 Likely 4 Major 33 Possible 3 Moderate 3 TBC Issues - Manageable 12 Unlikely 2 Minor 31 Rare 1 Insignificant 1 External Bodies 1 Minor Political Consideration

5 No additional FTE 5 $0 5 No 5 No 44 Under 1 FTE or additional salary funding 4 <3 out of 10 years 13 1-2 FTE 3 < $20,000 3 Yes < $20,000 3 3-5 out of 10 years 1

2 5-10 out of 10 years 41 >2 FTE 1 > $20,001 1 Yes > $20,001 1 On-going >10 years

15 Public at large at threat 5 Within TBC control 5 Within TBC control 5 Within TBC control 13 Section of the community/council employee at threat3 EPA/ External Bodies Issue 3 EPA/ External Bodies Issue 3 EPA/ External Bodies Issue 11 No Concern 1 No Impact 1 No Impact 1 No Impact 5

5 Fully Funded via External Sources 5 Generates Savings immediately 5 TBC - City Wide & Beyond 5 Industry Best Practice 14 4 < 12 months 4 TBC - City Wide 4 Achieving contemporary standards 43 Part Funded External >50% of Total Cost 3 1 - 5 years 3 TBC - Section of Community/Key Stakeholders 3 Improvement/increase in Services Level 52 Potential for funding 2 > 5 years 51 Fully Funded via Rates 1 Not Applicable 1 TBC - Limited number of Beneficiaries 1 No Change to Current Service Level

5 Favourable 5 Asst Renewal - Like for Like Replacement5 Legislative Requirements 54 Must Do 3

3 No Effect/Not Applicable 3 No Effect/Not Applicable 3 Should Do 32 Upgrade 2 Like To Do (Nice to Have)

1 Unfavourable 1 New Asset 1 Don't Know

55

FINANCIAL SUSTAINABILITY Priority Number calculated as O + C + J

FS

PN

Operating Budget Impact Capital Budget Impact Justification for Council Involvement

BENEFITS Priority Number calculated as E + P + B + S

BP

N

Funding (External) Sources Payback period Beneficiaries Service Levels Outcome (to Community)

IMPACT Priority Number calculated as H + E + S + B

IPN

Health & Safety Impact Environmental Impact Social/Comm Wellbeing Impact Business & Economic Impact

COST Priority Number calculated as A + C + F + P

CP

N

Additional Staff Resources Required Cash Required (non sal) - Current Year Future Project Financial Commitments Period of Future Financial Commitments

Bid Analysis Tool

RISK Priority Number calculated as L + I + P

RP

N

Likelihood of Risk Occurring Impact if Risk Occur Who Controls Risk Political Environment

Related Policy/Process

Register Owner:

Document Control:

Project : Operating Project Name : Strategic Projects Program - Regional Procurement Resource Support

Analysis of the need or demand

Identification and quantification of the expected financial and other benefits

Tangible

Intangible

Identification and quantification of the whole of life financial and other costs, including staffing and project management costs

Regional Procurement Initiative to: • Enhance the local economy

• Improve internal processes for compliance, probity and efficiencies

• Standardise tender, quotation, contract and WHS documents and induction processes across the Councils

• Provide cost savings and efficiencies

Savings within the forward budget of approximately $152,000 per annum to date as a result of collaborative procurement, which are anticipated to grow further as a result of the ongoing implementation of the forward procurement plan. These savings are identified to offset proposed expenditure for 2016/17 and 2017/18. Other tangible benefits include an increase in local suppliers capacity to bid and win local and regional work and an overall increase in Council compliance in terms of both WHS and Procurement Policy and Process implementation.

Increased internal levels of services from above savings but also increased collaboration and knowledge transfer between Councils, reduction in duplication of effort internally and by suppliers in doing business with Council and an increase in transparency in tendering and contracting as a result of the intiative.

THE BAROSSA COUNCIL

DUE DILIGENCE REPORT - LEVEL 1 - BASIC

TBCPOC4400 Budget & Business

Plan and Review PolicyDocument Number: TBCFOR4410

Director Corporate and

Community ServicesLast Revised Date: New Form

Manager Financial Services TRIM Reference: 14/36060

WOL if greater than $50,000 - Attach WOL assessment if applicable otherwise summaised in table below

Starting Year Year 2 Year 3 Year 4 Year 5 Year 6 Growth FactorSalaries and oncosts 27,340 28,085Materials, Contractors 6,400 4,400DepreciationInterestsOther Total 33,740 32,485 0 0 0 0

Starting Year Year 2 Year 3 Year 4 Year 5 Year 6 Growth FactorSalaries and oncostsMaterials, Contractors 152,000 152,000DepreciationInterestsOther Total 152,000 152,000 0 0 0 0

Net Cost / (Saving) of Initiative (118,260) (119,515) 0 0 0 0

Financial Risk Assessment as per Table

Insignificant Minor Moderate Major Serious

<$10,000 $10,001 to $75,000

$75,001 to $250,000

$250,001 to $1,000,000

>$1M

Almost Certain Low Moderate High High ExtremeLikely Low Moderate Moderate High HighPossible Low Low Moderate Moderate HighUnlikely Very Low Low Low Moderate ModerateRare Very Low Very Low Low Low Low

Insignificant Minor Moderate Major Serious

<$50,000 $50,001 to $150,000

$150,001 to $500,000

$500,001 to $1,000,000

>$1M

Financial risk assessment - minor and unlikely - low risk.

WoL Cost less than $100,000 - minor

No further assessment required.

Whole of Life Costs

Note if in extreme or high must undertake project feasibility study as required by the Prudential Management Policy other levels will be determined by Director or CMT on a case by case basis for further studies and or additional risk management strategies presented before proceeding.

Forward Estimates

Forward Estimates

Cost Item

Budget Savings / Productivity Improvements

Financial Risk Table

2016/25


Financial The Budget Timetable is an integral part of financial planning to ensure an organised and thorough process is undertaken.

COMMUNITY CONSULTATION Included as part of the draft 2016-17 Budget/Business Plan consultation and adoption process. 7.3.3 DEBATE AGENDA – MANAGER ADMINISTRATIVE SERVICES 7.3.3.1 REDEFINING COMMUNITY COMMITTEES – QUARTERLY UPDATE REPORT (QUARTER FOUR) B2198 MOVED Cr Boothby that:

(1) That Council receives the report Redefining Community Committees – Quarterly Update Report (Quarter Four); (2) That Elected Members previously involved in Section 41 committees, highlight the

opportunity for representation on Peak Advisory Forums beginning February 2016; (3) That Council acknowledge the work of committees who have engaged in the

transition process to date; and (4) Notes that an action plan to identify further work required to support the

ongoing implementation of transition for the incorporated groups will be developed for review at a future Council Meeting.

Seconded Cr Miller CARRIED 2014-18/523 INTRODUCTION In January 2015, the implementation phase of the Redefining Community Committees project (the Project) commenced and this is the fourth quarterly update report. COMMENT Officers have transitioned all identified community based Section 41 Committees in 2015 and continue to provide support to groups as they implement their transition preferences and operate within new purchasing processes. Officers continue to review internal Council resources to support the review of asset management, leases, and licences, and introduce the Peak Advisory Forums as recommended in the Business Case for Change (2014). Status of Transition Process Overall, the majority of committees have chosen to become community volunteer groups. It was anticipated that more groups may wish to incorporate for greater direct involvement with their community facility however, through the process it is recognised that the volunteer group structure best fits their primary purpose, membership, skills and allows continued active involvement. Where incorporation is being pursued it has generally been for the opportunity for members to become more involved in the management of assets in partnership with Council and the ability to seek grants and hold funds independent of Council. The process of incorporation for some of these groups will be ongoing into 2016 and will require continued officer support and resources. Committee members now have a firm understanding of the Council’s position on reserve funds. There is, however, some concern about Council’s ongoing financial commitment to non-asset groups beyond 2015/16 financial year as per Council resolution from 15 September 2015 and clarification of support for asset management (levels of service) more broadly.

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MOVED Cr Boothby that Council:

(1) Endorse that for the following Committees, the remaining 2015/16 Budgets be transferred to those Committees that transition to incorporated associations through the Redefining Community Committees process and budgets are allocated to the following groups through the existing annual budget and new initiative process, for use as volunteer groups or incorporated associations:

• Lyndoch and District Community Committee • Lyndoch Street Party • Williamstown Community Council • Williamstown Historical Society • Mount Pleasant Street Committee • Mount Pleasant Christmas Parade • Mount Pleasant Historical Society

(2) Agrees to review the method of allocation prior to 2016/17 budget process.

Seconded Cr Angas CARRIED 2014-18/385 Complementing the Redefining Community Committees project, the Southern Barossa Alliance is engaging transitioning community groups in the Southern Barossa for the purpose of advocacy, strategic projects, grants and marketing of the sub region. Such a model brings together the resources and interests of many into a more coordinated and potentially productive structure which benefits Council, business and community. The Southern Barossa Alliance in establishing this role will be seeking support from Council in the future. The following table documents the current status and name of groups: Transition Status of Community Committees Committee Status New Name Angaston Management Group Incorporated Angaston Community and

Business Alliance

Talunga Recreation Park Amalgamation and incorporation

Talunga Park Volunteer Group to transition to Mt Pleasant Town Inc (TBC)

Mt Pleasant Hall and Main Street

Amalgamation and incorporation

Mt Pleasant Hall and Main Street Volunteer Group to transition to Mt Pleasant Town Inc (TBC)

Mt Pleasant Historical Society (sub-Committee of Mt Pleasant Hall)

Amalgamation and incorporation Mt Pleasant Town Inc (TBC)

Stockwell Recreation Park and Hall

Intended incorporation, currently Volunteer Group

Stockwell Recreation Park and Hall Volunteer Group

Tanunda Recreation Park


Tanunda Recreation Park Volunteer Group

Curdnatta Recreation Park


Curdnatta Recreation Park Volunteer Group

Williamstown Soldiers Memorial Hall

Volunteer Group Williamstown Soldiers Memorial Hall Advisory Group

Williamstown Community Council Volunteer Group Williamstown Events and

Volunteers Group Williamstown Historical Society (sub-Committee of Williamstown Community Council)

Intended incorporation, currently Volunteer Group Williamstown Historical Society

Moculta Recreation Park and Hall

Volunteer Group Moculta Recreation Park and Hall Volunteer Group

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Rowland Flat Community Centre

Volunteer Group Rowland Flat Community Centre Volunteer Group

Lyndoch Hall Volunteer Group Lyndoch Hall Volunteer Group

Lyndoch and Districts Community Committee

Volunteer Group Lyndoch and Districts Community Volunteer Group

Murray Recreation Park Volunteer Group

Murray Recreation Park Volunteer Group

Old Union Chapel Volunteer Group Old Union Chapel Volunteer Group

Angas Recreation Park Volunteer Group Angas Recreation Park Volunteer Group

Tanunda Town Committee Retired

Angaston Town Hall Retired Review against the Original Business Case for Change The Redefining Community Committee project is one of the key priorities of the Strategic Projects Program endorsed by Council in August 2014. The Business Case for Change and report – ‘Redefining Community Committees – New Model Implementation, August 2014’, made a series of recommendations which are reviewed and status update provided below.

Key Recommendations

Theme Recommendation Status Section 41 status Dissolve Section 41 committees

and replace with transitioned models

Section 41 dissolution complete (see above) Ongoing assistance required for Tanunda Recreation Park, Mt Pleasant, Stockwell Recreation Park and Hall, Curdnatta Recreation Park and Williamstown Historical Society.

Volunteering Retain volunteer involvement and continue recognition of volunteers.

Some challenges during transition discussions however most groups now understanding and enjoying their continuing role with community facilities and services. Volunteers were / will continue to be invited to attend Council meetings for formal recognition.

A recognition of volunteers process has been updated and groups will have the opportunity to nominate volunteers for formal recognition by Council on an ongoing basis

Charter, Memorandum of Understanding documents.

Developed and implemented.

Position Descriptions

Volunteer Position Descriptions to be developed and implemented with volunteers. Linked to review work being undertaken by Barossa and Light Volunteer Resource Centre Coordinator.

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Volunteer Management Policy

Implementation and adequate management of Volunteer Management Policy to continue to be reviewed into 2016/17. Linked to review work being undertaken by Barossa and Light Volunteer Resource Centre Coordinator

Incorporation Council assistance – support, advice and funding to incorporate and public liability insurance and WHS requirements.

Provided to groups for transition decision. Angaston Community and Business Alliance the first group to incorporate. Ongoing support for Tanunda Recreation Park, Mt Pleasant, Stockwell Recreation Park and Hall and Curdnatta Rec Park and Williamstown Historical Society.

Exclusion of major and compliance maintenance.

Ongoing - To be defined in Management Agreements.

Execution of Management Agreements.

Ongoing - Agreements to be developed and executed in accordance with recommendations and negotiation process with groups.

Audit program To commence - Audit program to be developed in 2016.

Reserve Funds Accumulated reserve funds as at 30 June 2014 are either quarantined for future expenditure on suitable township projects or made available to incorporated groups (if applicable).

Reserve Funds remain in place and will continue to be adjusted by 2015/16 budget year end results and then quarantined for future use until exhausted but not further adjusted beyond this time. Groups will continue to be supported to submit projects through the Budget and Business Planning Process

Peak Advisory Committees

Economic Development Community Development Sports Council Recommended as S41 Committees

Economic Development and Community Development, and Sports Council Peak Advisory Groups established, however not under the Section 41 structure but with Terms of Reference (and no decision making delegation). First meetings in February 2016. Community and Economic Development Forum to include future township groups, activities and associated funding on agenda with Forum to provide recommendation to Council on ongoing activities and funding.

Service Delivery Review

Council to review services currently facilitated by committees and either cease to provide them or look at contracting out functions that

Proposed that Council retain existing services and associated budgets. (to be formalised by Council via future Budget setting processes)

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are not core Council functions.

Asset Management Levels of Service 10 year Asset Management Plans

Development of community facility asset management plans; including reviewed annual scheduled maintenance and service levels to be completed.

Building Condition Audit

Building Condition Audit completed and informing next 3 year budget cycles.

Internal Staff Resourcing

Review of resourcing to support transitioned structures and potential centralisation of tasks.

Review underway between CCS and WES to identify impacts, review processes and design organisational structure to deal with increased internal resource requirement under direct management and drive efficiencies.

Additional resource Craig Grocke (RDA-B) was appointed and completed all components of project work as required to an extremely high standard.

Ongoing Resources Review of the ongoing resources required to continue to support and advise groups intending to incorporate and also to manage the higher than anticipated direct management structure of community facilities. It is likely that this process will continue across the 2016 calendar year. Increased direct management activity is required in the interim.

Community Facilities Management

Caretakers

Retain current caretakers (however Moculta and Eden Valley caretakers have chosen not to renew contracts) Assessment of future models and options for carrying out these functions is required and in the interim has resource impacts on internal / Works based resources Also links to an assessment of Council’s management of caravan park style facilities as part of our recreation/oval assets

Booking Management Continuing to utilise volunteer booking officers where available. Venue fact sheets being developed for public website Online bookings and calendar to be implemented on public website during 2016. Venue fee review through annual

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budget process. Audit / inspection program to be developed in 2016.

Compliance Maintenance

Compliance maintenance to be managed by Council (testing and tagging, asbestos, fire management).

Panel Contracts Developed and first phase implemented as part of the Barossa Regional Procurement strategy. Access to and requirement for use of panel contractors to be formalised through Management Agreements. Further panels to be let during 2016/17

Lease and Licence Policy

Develop and implement Policy adopted 2015 and agreements being implemented. Target - 90% agreements in place by 30 June 2015.

Budget Management

Ongoing budgets.

Budget Management transfer for community facilities underway from CCS to WES. Opportunity for base budgets (and any New Initiatives) to be reviewed by groups. Budget template to be developed for groups to apply for pre-approved budget funding for events. Process for purchasing requests delivered to all groups and to be requested via Council’s Customer Service team.

Consider central ‘Community Development Fund’ to provide the opportunity for independent groups (incorporated and volunteer groups) to apply for funding.

Proposed that Council retain existing services and associated budgets. (to be formalised by Council via future Budget setting processes)

Surplus funds generated by incorporated bodies could be used (at group’s discretion, with Council approval in relation to Council owned assets) to fund future capital expenditure requirements or minor furniture, fittings, equipment (etc.) purchases.

Provision to be incorporated into Management Agreements. EXTRACT

2016/31


2015/16 Operational Budgets Assistance for transition costs (incorporation, insurance, administration) from existing budgets was recommended in the 2014 report. In 2015, $7,500 in total was allocated to cover costs of incorporation, $5,000 in total to cover insurance and auditing fees if incorporating, and $2,000 per incorporation of start-up cash flow from the Reserve Fund. None of this budget has been allocated due to the majority of groups transitioning to volunteer groups and the remaining groups still continuing to work towards transitioning to operate under an incorporated association. A budget of $109,000 for the anticipated call on reserve funds was also approved in the 2015/16 budget and has not been utilised at this stage. To be reviewed in mid-year Budget process. Focus of groups has been on transitioning and allocation of funds may need to be rolled forward until there is time for groups to be ready to assess in more detail how reserve funds could be allocated.

Communication and information

Website Request and Contact System Newsletter

Council’s website has been updated to reflect the transition of groups, information for and about groups can be found under the Community and Cultural Services tab, Volunteering Section. Council’s request and contact system has been updated with the changes to group names and memberships. The Committee Focus newsletter will be replaced in 2016 with the Volunteer Focus newsletter. Regular press releases and support to highlight media focus on groups that have transitioned, plus updates regarding the RCC process have been completed It is proposed to survey committees that took part in the process for their feedback as part of the post implementation review process for this stage of the transition

Summary of Key Outstanding Items / Future Actions

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Theme Action Items Responsible Date

Incorporation

Detailed action plan development for transition process to be presented to Council

MAS February 2016

Ongoing assistance required to transition following groups to incorporation: • Tanunda Recreation Park • Mt Pleasant • Stockwell Recreation Park and Hall • Curdnatta Recreation Park • Williamstown Historical Society

MAS

End 2016

Management Agreements executed • Tanunda Recreation Park • Mt Pleasant • Stockwell Recreation Park and Hall • Curdnatta Recreation Park • Williamstown Historical Society Training Program: • Tanunda Recreation Park • Mt Pleasant • Stockwell Recreation Park and Hall • Curdnatta Recreation Park • Williamstown Historical Society

MAS / MFS Q2 2016

Volunteer recognition

Invite remaining members to February Council meeting and/or meeting at Mt Pleasant

CCS EA January 2016

Volunteer Management Policy

Confirmation of volunteer registrations Barossa and Light Volunteer Resource Centre Coordinator / MAS

Q1 2016

Implementation of position descriptions Q2 2016

Confirmation of Volunteer Supervisors Q2 2016

Communication

Development of Volunteer Focus newsletter

MAS January 2016 Post Implementation review Survey Request and Communication System Updates

Internal transition of responsibilities from CCS to WES

Relationship Management of Operational Matters

DCCS / DWES support MAS / MAI / CBA / MFS / SA to implement

Q1 2016

Budget Management

Contractor Management

Reactive Maintenance

Procurement

Asset Management

WHS Matters

Caretakers Talunga Park - current MAS -

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Eden Valley – resignation. Assessing merit to combine with Talunga Park contract

MAS / MO January 2016

Moculta Recreation Park and Hall – resigned. Interim arrangement include depot maintaining grounds/buildings. Cleaning by independent contractor

MAS

Ongoing arrangement to be finalised Q1 2016

Curdnatta Park – contract requires renewal. Awaiting confirmation MAS January 2016

Williamstown Recreation Park – current and working well MAS -

Asset Management

Community facility asset management plans including level of service and maintenance schedules

MAI

Currently being scheduled and resourced

Building Condition Audit data to continue to inform future 3 year budget cycles (P3 – P5)

MAI/CBA ongoing

Audit / Inspection Program MAS / MAI / CBA Q3 2016

Reserve Funds Invitation to groups to put forward ideas for use of reserve funds MAS January 2016

Peak Advisory Forums

Confirm attendees DCCS EA January 2016

Draft inaugural agendas with input from key internal and external stakeholders

MAS January 2016

Host Forums MAS February 2016

2016/17 Budget

Facilitate review of recurring budget allocation for non-asset groups MAS February 2016

Prepare base budgets MAS / MAI

January 2016

Provide to groups for review / input MAS

January 2016

Develop template for non-asset group activity specific budgets (eg. events) MAS February 2016

Community Facility Hire

Venue Fact Sheets CSS Q1 2016

Bookings / Calendar available via website MAS / ICT Q4 2016

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Lease and Licence Policy

Continued implementation of agreements MAS 90% by Q2

2016

NB. Quarters (above) are allocated via calendar year.

RCC Working Party Post Implementation Review (PIR)

Comments from PIR held on 13 January 2016 as follows:

Review Item Comments

Process • Hardest part – resistance to change • Upfront / blanket communication approach groups earlier –

understanding the time it takes for groups to meet and decide • Each group very different – cultures different • Event for each group – like Rowland Flat BBQ – for kick off to

break ice and getting buy-in quicker • Keeping it simple • Contact List – ask groups and individuals upfront who wants to

be on contact list so as not to rely on one or two key people to share information

• When initial groups transitioned, communicate this clearer to other groups to set scene and comfort levels for others to make decision

Status of Committees

Everything will come together, in time.

Satisfaction of Volunteers

• Need regular communication to volunteers to ensure they understand that their time is valued

• Volunteers wanted more confidence that reserve funds would be retained and quarantined, once this was understood

• Long term involvement with many volunteers • Important to acknowledge and maintain identity and

attachment to ‘place’ Documentation provided

Sliding Scale document – perception that it was all or none. Visual model good – took time for groups to hear and understand and be open to change. Need to push the same message - regularly

Timeframe allocation Worked well – needed full 12 months to engage groups

Officer / Elected Member involvement

• EM involvement varied • Working group engaged well and were good conduit with

groups • EMs could have been used more for PR and for the initial

resistance to change Incorporation Action Plan / Next Steps

OK with proposed next steps

Volunteer Management

Length of time of involvement – ratio of new: long standing

Increased usage of Better Impact Volunteer Management database

Recurring Budgets / Service Delivery Review

Discussion as per detail in report herewith

Peak Advisory Forums

Groups requested need for ongoing communication and input into like matters, asset management, activities and events etc

Marketing / PR / Communication – Committee Focus Newsletter

Volunteer Focus newsletter Quarterly Articulate that TBC continued the S41 structure where other Council’s didn’t at change of Local Government Act 1999. This should contribute to strengthen relationships and trust between volunteers and council.

EXTRACT

2016/35


LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 – Section 41

Council Strategic Plan 1.3 Recreation 1.5 Culture 4.1 Responsibility 4.2 Service 4.3 Systems FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial Previous Section 41 Committees that were established to support townships, halls, parks, community programs and events, received an annual allocation through Section 41 budget processes. This process will remain for asset management of halls and recreation parks; however, the process for non-asset activities is still in review.

It is proposed that volunteer groups and incorporated associations for non-asset related activities can request funds for events, services and community programs by applying through the annual New Initiative process as part of the budget allocations or through Council’s quarterly Community Grant Scheme.

Resource Ongoing requirement for officer support of intending incorporations and direct management impact including purchasing support, maintenance and management as per table “Summary of Key Outstanding Items / Future Actions” above.

Summary of work of the RCC working party The project team was structured to include a working party consisting of three elected members; Director, Corporate and Community Services and three officers. There were 10 meetings between February 2015 and January 2016 that provided significant support and advocacy to the officer project team.

It is appreciated the extra time that members committed to the project for this purpose.

The final January meeting was for the purpose of a post-implementation review.

COMMUNITY CONSULTATION As part of the discussions on transition options with Committees in 2015, there was strong interest and support to maintain a communication link with Council on strategic planning and asset management, as well as associated policy affecting user groups. This has led formation of Peak Advisory Forums as a mechanism to maintain and build communications between Council and all community groups, both incorporated and volunteer.

The forums will be in place by February 2016 for the purpose of two-way strategic communication between Council, community groups and regional stakeholders directly involved with township development and management of recreation park assets.

Officers will continue to publish the Volunteer Focus newsletters in 2016. 7.3.4 OTHER COMMUNITY SERVICES - DEBATE 7.3.4.1 CONSIDERATION AND ADOPTION OF COMMITTEE RESOLUTIONS B1441 MOVED Cr Harris that Council having reviewed the minutes of:

1. Williamstown Community Council 2. Upper Torrens Land Management 3. Barossa Bushgardens Committee

EXTRACT

of 4 Updated Version – 25 January 2016

6.1.6 NURIOOTPA CENTENNIAL PARK AUTHORITY (NCPA) – HIGH LEVEL COMPLIANCE ACTION TRACKING Improvement Program Update (Risk Analysis) - High Level Compliance Requirements for NCPA Relevant legislation:

• Local Government Act 1999 (SA): http://www.legislation.sa.gov.au/LZ/C/A/LOCAL%20GOVERNMENT%20ACT%201999/CURRENT/1999.62.UN.PDF • State Records Act: http://www.legislation.sa.gov.au/LZ/C/A/STATE%20RECORDS%20ACT%201997/CURRENT/1997.8.UN.PDF • Freedom of Information Act: http://www.legislation.sa.gov.au/LZ/C/A/FREEDOM%20OF%20INFORMATION%20ACT%201991/CURRENT/1991.20.UN.PDF • ICAC guidelines: http://www.legislation.sa.gov.au/LZ/C/A/INDEPENDENT%20COMMISSIONER%20AGAINST%20CORRUPTION%20ACT%202012/CURRENT/2012.52.UN.PDF • Residential Parks Act: http://www.legislation.sa.gov.au/LZ/C/A/RESIDENTIAL%20PARKS%20ACT%202007/CURRENT/2007.19.UN.PDF • Work Health & Safety Act 2012 (SA): http://www.legislation.sa.gov.au/LZ/C/A/WORK%20HEALTH%20AND%20SAFETY%20ACT%202012/CURRENT/2012.40.UN.PDF • Fair Work Act 1994 (SA): http://www.legislation.sa.gov.au/LZ/C/A/FAIR%20WORK%20ACT%201994/CURRENT/1994.52.UN.PDF • Worker Rehabilitation and Compensation Act 1987

(SA): http://www.legislation.sa.gov.au/LZ/C/A/WORKERS%20REHABILITATION%20AND%20COMPENSATION%20ACT%201986/CURRENT/1986.124.UN.PDF Revised – 2/12/2015 – Tanya Pumpa, Business Manager Revised – 25/1/2016- Martin McCarthy Requirement Compliance Relevant

Legislation Notes

1. Governance Framework: 1.1 Code of Conduct for Members

of Board Yes Local Govt.

Act New mandatory code applies to Board members – refer http://www.governmentgazette.sa.gov.au/2013/august/2013_053.pdf Adopted ‘Code of Conduct for Council Employees’ (Version 1/9/13) by Board – 14 January 2015

1.2 Procurement and Purchasing Policy and Processes

No Local Govt. Act

Develop policy (including a caretaker (mode) provision), delegations & processes.

1.3 Agenda, minutes and other related documentation

Yes Local Govt. Act

Timelines for production of minutes etc. Business Manager included in Operations Manual. Minutes produced within 5 days after meeting. Agenda goes out at least 3 days prior to Meeting.

1.4 Conflict of Interest Provisions Yes Local Govt. Act

Refer new charter Clause 18 – reference to LG Act Chapter 5, Part 4, Division 3. Declarations of Conflict of Interest included as Agenda Item for Board meetings. Amber Rushton requires induction training.

1.5 Strategic Management Plan Requirements – Strategic Plan

No Local Govt. Act

Strategic Plan exists - not sure if it was ever formally adopted by NCPA Board or Council (written by Peter Rosenberg and a copy provided to Council)? Needs to be updated post Business Case. A Development Strategic Planning Meeting is set for 10.2.16 – The outcome to go on the March Agenda.

1.6 Strategic Management Plan Requirements – Business Plan

Yes Local Govt. Act

Business Plan written by Council (MSP) for purposes of grant applications – need to assess if it meets requirements of Schedule 2 clause 8 of the Act. Has been informally signed off by NCPA Board Executive but not full board and not by Council. Council’s Budget & Business plan 2013/14 document had some of the detail in it.

http://www.legislation.sa.gov.au/LZ/C/A/LOCAL%20GOVERNMENT%20ACT%201999/CURRENT/1999.62.UN.PDF

http://www.legislation.sa.gov.au/LZ/C/A/STATE%20RECORDS%20ACT%201997/CURRENT/1997.8.UN.PDF

http://www.legislation.sa.gov.au/LZ/C/A/FREEDOM%20OF%20INFORMATION%20ACT%201991/CURRENT/1991.20.UN.PDF

http://www.legislation.sa.gov.au/LZ/C/A/INDEPENDENT%20COMMISSIONER%20AGAINST%20CORRUPTION%20ACT%202012/CURRENT/2012.52.UN.PDF

http://www.legislation.sa.gov.au/LZ/C/A/RESIDENTIAL%20PARKS%20ACT%202007/CURRENT/2007.19.UN.PDF

http://www.legislation.sa.gov.au/LZ/C/A/WORK%20HEALTH%20AND%20SAFETY%20ACT%202012/CURRENT/2012.40.UN.PDF

http://www.legislation.sa.gov.au/LZ/C/A/FAIR%20WORK%20ACT%201994/CURRENT/1994.52.UN.PDF

http://www.legislation.sa.gov.au/LZ/C/A/WORKERS%20REHABILITATION%20AND%20COMPENSATION%20ACT%201986/CURRENT/1986.124.UN.PDF

http://www.governmentgazette.sa.gov.au/2013/august/2013_053.pdf


Requirement Compliance Relevant Legislation

Notes

1.7 Strategic Management Plan Requirements – Budget

Yes Local Govt. Act

Processes for quarterly budget adjustments need to be formalised. Need understanding that can’t approve additional expenditure outside of the budget without seeking Council approval – need processes and training. March 2015 Quarter Budget Adjustment provided by Treasurer to Council.

1.8 Audit Committee Yes Local Govt. Act

Was in place – feedback from Committee is that this was on hold pending outcome of charter - need to resume meeting & develop a work plan. New Audit Committee meeting held 11 May 2015.

1.9 Delegations for Budget Expenditure and Purchasing

Yes Local Govt. Act

Need delegation from NCPA to staff. Process in place however needs to be reviewed once approval in place for Delegations from Council to Board.

1.10 Delegations and or Authorisations for Residential Parks Act

Yes Residential Parks Act

Need delegation from NCPA to staff. A sign off for Delegation is required by staff. The approved version to go to the Governance Department at Council to arrange. Wallmans delegations have been put in place.

1.11 Delegation and or Authorisations under Local Government Act – if required

Yes Local Govt. Act

No other delegated authority? Delegations document from Council to Board to be discussed at August 2015 meeting. Wallmans delegations have been put in place.

1.12 Delegation and or Authorisations under By-laws – if required

Yes Local Govt. Act

Need to know if Park Managers require authorisation - e.g. do they regularly have to remove people from the precinct- how do they go about this? Refer s261 of the Act. Wallmans delegations have been put in place.

1.13 Annual Report No Local Govt. Act

An annual report is done but in not done in line with LG Act requirements. Currently producing a “1-Pager”, need to bring into line this current Financial Year.

1.14 State Records Act – Records Management

No State Records Act

Need to look at what records are being kept (versus what should be kept). Look at Council’s Records Management Policy. Martin McCarthy to provide assistance, Jean Ann Barr to contact Business Manager.

1.15 Freedom Of Information Act Yes Freedom Of Information Act

Need policy, process and Officer allocated (could be Council Governance Advisor?) Martin McCarthy to look into – not required to have a dedicated officer can come under Council and have passed resolution to this affect.

2. Finances: 2.1 Monthly Reporting to Board

and Council Yes Local Govt.

Act Current reporting to board is only in relation to total revenue and expenses for approval. Reporting to Council is quarterly. Monthly reports (Trial Balance, Balance Sheet, P&L (Budget Analysis), Job P&L, Account Transactions) provided to Council.

2.2 Monthly Data transfer to Council

No Local Govt. Act

2.3 Monthly Reconciliation of Bank account

Yes Local Govt. Act

Assume this is done by Ian Klaebe - cash balance presented at each board meeting along with cheques for signing. Business Manager undertakes monthly reconciliation of bank accounts and credit cards through MYOB.



Notes

2.4 Quarterly Reconciliation of key Control accounts

Yes Local Govt. Act

Debtors, creditors

2.5 Internal Control Processes and Auditing (required by 2015/2016)

No Local Govt. Act

Will require training and system implementation – resources? “Urgent” – Nicole Rudd to contact Business Manager.

3. Risk Management: 3.1 Risk Management Policy Work In

Progress Local Govt. Act

High level strategy to be completed – implementation strategy to be agreed / resources? Log books?

3.2 WHS System to the standard of a self-insurer

Work In Progress

WHS Act Should have a system (Council Risk Management group assisting) by Christmas. System based on Council documents implemented by Business Manager in November 2015. New Operations Manager oversees implementation of policies and procedures. Business Manager works with Operations Manager and administers.

3.3 Fraud and Corruption Framework

No Local Govt. Act / ICAC

3.4 Fraud and Corruption Policy and Process


Can use Council Policy – currently being reviewed with ICAC requirements pending issue of Mandatory Code of Conduct for Employees from LGA – Training requirements

3.5 Whistleblower Policy and Process


Can use Council Policy – currently being reviewed with ICAC requirements pending issue of Mandatory Code of Conduct for Employees from LGA – Training requirements

3.6 Child Safe Policy No Can use Council Policy – training requirements 3.7 Training and Dissemination of

ICAC Direction and Guidelines Yes ICAC Act Need training for the board and management. Council provided Induction Training for the new Board in

October 2014 which included this requirement. 3.8 Complaint Handling Policy Yes Local Govt.

Act Council Policy – training – record keeping. Board Agenda – August 2015 This will be sorted shortly. Passed at December 2015 meeting

4. HR Framework 4.1 HRM Policy No Fair Work

Act HR Support from Council? Cost allocation? Needs to ensure compliance with other relevant Acts (e.g. Equal Opportunity Act 1984 (SA), Sex Discrimination Act 1984 (Commonwealth), Disability Discrimination Act 1992 (Commonwealth) & Racial Discrimination Act 1975 (Commonwealth). Martin McCarthy to produce HR Policy from Council.

4.2 EEO, Harassment Policy No As above 4.3 Grievance Policy No As above 4.4 Volunteer Management Yes As above

Operations Manager implemented Volunteer Register, Council Volunteer Registration Forms around April 2015 with DSCI clearance and Medical Checks.

4.5 Training and Development Yes What are current processes and documentation? Business Manager implemented a Training Register. Filed under HR.



Notes

5. Other 5.1 Undertake Competitive

Neutrality Assessment No Preliminary work undertaken but required to be completed and documented.

AUDIT COMMITTEE

CORRESPONDENCE

11 FEBRUARY 2016 CONSENSUS AGENDA 6.2 CORRESPONDENCE

6.2.1 DEAN NEWBERY & PARTNERS – BALANCE DATE MANAGEMENT LETTER – FINANCIAL YEAR ENDED 30 JUNE 2015 Dean Newbery & Partners’ correspondence (Attachment 1) regarding the FINAL Balance Date Audit of Council for the financial year ended 30 June 2015. The contents of the letter is the same as section 7, “Balance Date Management Report” of the Audit Completion Report presented top the 5 November 2015 Audit Committee meeting.

RECOMMENDATION: That Correspondence item 6.2.1 be received.

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AUDIT COMMITTEE

MANAGER, FINANCE REPORTS

11 FEBRUARY 2016 7.1 DEBATE AGENDA 7.1.1 DRAFT AUDIT COMMITTEE 2016 WORKPLAN B343 INTRODUCTION Draft Audit Committee Workplan for 2016 is attached for approval. RECOMMENDATION That the Audit Committee approve the draft Audit Committee Workplan for 2016.

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 2016. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 – Section 126 Council Strategic Plan 4.1 – Responsibility FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial Adoption and adherence to an annual Workplan is a risk management tool. COMMUNITY CONSULTATION Not required under legislation or Council’s Public Consultation Policy.

THE BAROSSA COUNCIL AUDIT COMMITTEE MEETING SCHEDULE & WORKPLAN

JANUARY – JUNE 2016

Date Item – Annual Item – Recurring 11 February Establish Meeting Schedule & Workplan

Review Draft next year Budget and annual review LTFP indexation and assumptions document – Council workshop

Review Treasury Management performance Review Budget Update – Quarterly as at 30 September Review Mid – year Budget Review – Quarterly as at 31

December Review and establish Audit Committee Budget

Receive Internal Financial Controls Compliance report from Internal Control Co-ordinator

Financial/Risk Management/ Governance/Strategic policies review as required

Review any representation letter(s) requested by the external auditor;

Strategic Frameworks report Risk Management Quarterly Report Review and consider new Policies as/when required

May/June Review draft Annual Budget & Business Plan document Review Consultation & final LTFP document Discuss with External auditors any matters arising from the

interim audit Review Budget Update – Quarterly as at 31 March Delegations Review




Risk Management Quarterly Report Review and consider new Policies as/when required

THE BAROSSA COUNCIL AUDIT COMMITTEE MEETING SCHEDULE & WORKPLAN

JULY – DECEMBER 2016

Date Item – Annual Item – Recurring September/October

Review financial statements for last year Council and Nuriootpa Centennial Park Authority, including carry forwards

Receive Consultation & final Annual Budget & Business Plan document

Discuss with external auditors any matter from audits Annual report on Audit Committee activities Chairperson to present annual report to Council




Strategic Frameworks report Risk Management Quarterly Report Review and consider new Policies as/when required

November/December

Review Council - annual report Complete annual self-assessment Report on Local Government Mutual Liability Risk

Management Review Report on Financial results Audit Opinion Review Budget Update – Quarterly as at 30

September Receive completed Financial statements for last year

Council and Nuriootpa Centennial Park Authority The annual LGAWCS KPI Audit Report




Review the management letter and management's response to the external auditor's findings and recommendations.

Risk Management Quarterly Report Review and consider new Policies as/when required

AUDIT COMMITTEE

MANAGER FINANCIAL SERVICES

REPORT

11 FEBRUARY 2016 7.1.2 TREASURY MANAGEMENT REVIEW

B1434 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.

RECOMMENDATION That the report on Council’s 2015 Treasury Management activities be received and noted.

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 2015 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 2015, Council’s net financial liabilities represented 39% of total operating revenue, and it is projected to increase to 47% as at 30

June 2016. Accordingly, Council is currently operating within its policy threshold.

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. A cash advance debenture facility with variable interest rate was set up for Nuriootpa Centennial Park Authority to a maximum value of $1,000,000. There were no new fixed borrowings in 2015. 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 Loan Summary

No. Loan Amount

Interest Rate

Final Payment Date

Principal Outstanding as at 31 December 2015

94 1,500,000 6.75% 16/09/17 295,769 96 2,000,000 6.02% 15/05/18 467,777 97 700,000 5.65% 16/06/18 160,681 98 2,000,000 6.65% 15/01/19 654,683

100 1,954,200 6.45% 15/03/20 790,718 101 2,500,000 6.24% 15/03/21 1,190,607 102 5,000,000 6.62% 16/10/21 2,593,799 103 100,000 6.80% 15/11/21 52,191 104 2,900,000 6.90% 15/03/22 1,619,439 105 7,000,000 7.02% 16/11/24 5,793,195 106 2,000,000 6.85% 15/04/26 1,594,558 107 113,000 4.75% 16/07/22 84,475 108 515,000 6.20% 15/01/34 494,343 109 125,000 5.30% 15/09/29 119,367

15,911,603

A summary of the variable interest rate borrowings are shown below:

Cash Advance Loan Summary (Nuriootpa Centennial Park Authority)

No. Total Facility Loan Amount

Interest Rate

Facility End Date

Principal Outstanding as at 31 December 2015

CA110 1,500,000 4.25% 15/06/20 553,635

Investments Council’s total investments as at 31 December 2015 were:

Variable Interest

Rate $’000

< 1 year Fixed $’000

> 1 year < 5 years

$’000

> 5 years $’000

Interest Rate Range

TOTAL $’000

LGFA

4,173

4,244

0

0

2.00 to 2.35%

8,417

NAB Investment A/c

2,269

0

0

0

2.50%

2,269

TOTAL

6,442

4,244

0

0

0

10,686

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.

LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 – Section 126(4) and Section 140 Policy Treasury Management Policy Council Strategic Plan Strategy 4.1: Responsibility

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial The financial statements have been incorporated into Council’s consolidated Financial Statements.

COMMUNITY CONSULTATION No separate consultation is required under Council’s Public Consultation Policy. The Statements are public documents, accessible to the community via Council’s website.

AUDIT COMMITTEE


11 FEBRUARY 2016

7.1.3 2016-17 AUDIT COMMITTEE BUDGET B343 INTRODUCTION To consider a draft 2016-17 budget for the Committee’s operations. RECOMMENDATION That: (1) the draft 2016-17 Audit Committee draft budget be endorsed for consideration by Council during the budget deliberations; (2) the 2016-17 sitting fee of $550 (excl GST) per meeting for the Independent Chairman of the Audit Committee be endorsed for consideration by Council; (3) the 2016-17 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 2016-17 Consultant budget $XXX and Training budget $xxx be endorsed for consideration by Council. COMMENT The budget for 2016-17 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 2016-17 budget to support the operations of the Audit Committee is outlined in the following table: Audit Committee Financial Statement as at 14 January 2016

January YTD

Actuals

Original Budget

2015-16 + Q1 Adj

January YTD

Budget % YTD

Draft 2015/16 Budget

496 - Audit Committee Salaries (preparation of reports/agendas, attendance at meetings – CEO, Director C&CS, Manager Financial Services, Minute Secretary) 7,524 13,856 46% 13,990

*

Consultants (provision for sundry project work undertaken as part of Committee work plan or specifically requested by Council) 0 2,850 0% 2,880

~

Training / Seminar expenses 0 1,000 0% 1,000 ~

Sitting Fees (Independent Members) 1,800 5,550 32% 5,550 # Advertising 0 470 -0% 470 ~ Insurance & Other 147 147 100% 150

Total 496 - Audit Committee 9,471 23,873

40% 24,040

* Provides for 1% increase for the Salary cost at existing allocations (new EB to be implemented). Depending on cost centre allocations, this amount may change when the budget is finalised. ~ Consultants, training and advertising expenses are set at the same amounts as the previous 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; for Audit Committee consideration. LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Section 123 Local Government (Financial Management) Regulations 2011 Policy Budget & Business Plan and Review Policy Council Strategic Plan 4.1 – Responsibility 4.3 - Systems FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial The Budget Timetable is an integral part of financial planning to ensure an organised and thorough process is undertaken.

COMMUNITY CONSULTATION Included as part of the draft 2016-17 Budget/Business Plan consultation and adoption process.

AUDIT COMMITTEE

COORDINATOR INTERNAL CONTROL

REPORT

11 FEBRUARY 2016

7.1.4 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 Attached is a copy of the Internal Financial Control Report for October to December 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.

The Barossa Council © 2015 Form: Quarterly Internal Control Report TRIM TEMPLATE REF: 15/ Page 1 of 5 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 Report Presented:

15 November 2015

Responsible: Coordinator - Internal Control TRIM Reference: 15/

Audit Committee Date: 11 February 2016 Entry Signature: Period: October to December 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 Financial Controls, 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 provided his 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 2016 Assessment Assessment start date 18 January 2016 Review start date 14 March 2016 Process Improvement start date 30 April 2016 Number of Controls Assessed (193 individual controls but 285 when spread to separate assessors)

9/164 –5 %

Number of Controls Reviewed: Not yet due Number of actions identified by the Self-Assessment Cycle Not yet due Number of Residual Risks Assessments (assessment after controls)completed to date:

Not yet due

Action Plan final due date 29 June 2016 Comments: 1.1 Internal Control Assessment In considering the next ‘self-assessment cycle’ discussions with our Corporate

Management Team (CEO and Directors) resulted in the following approach to be used for the next cycle:

The dates for the 2016 Self-Assessment cycle will be as follows: Control Assessment phase - 18/1/16 to 14/3/16 Control Review phase - 14/3/16 to 29/4/16 Process Improvement phase - 30/4/16 to 29/6/16 Of the 193 financial controls in place, 68 controls will be assessed this cycle(164

control assessments when spread to additional officers) to be self-assessed in this cycle will be controls:

- relating to any extreme or high residual rated risks; - not assessed by an assessor or reviewer in the last cycle; and - which are now being assessed by more than one officer. 1.2 Risk Assessments Residual Risk Assessments in ControlTrack have now been completed. These were

carried out by the Manager Financial Services and the Coordinator Internal Control and then reviewed by the Organisational Management Group (OMG). The results of the residual risk assessments are as follows:

Risk Assessment Summary - 2014/2015 Assessment Inherent Target Residual Extreme 9 0 0 High 47 1 12 Medium 27 22 27 Low 10 70 54 93 93 93



High Risks

Contracting: Council is not able to demonstrate that all probity issues have been addressed in the Contracting process. Budgets do not reflect strategic objectives. General Ledger: Data contained within the General Ledger is permanently lost. Management Reporting: KPI’s are not consistent with Corporate Objectives. Accounting Policies adopted by Council are not adhered to by Council administration. Management Reporting: Significant budget variances are either not investigated on a timely basis or not investigated at all (see page 9/20).

Banking: Fraud Fixed assets are inadequately safeguarded. Fixed Assets are not valued correctly. Taxation: Tax liabilities are either inaccurately recorded or not recorded at all. Purchasing and Procurement: Council does not obtain value for money in its purchasing & procurement. Purchasing and Procurement: Purchases of goods and services are made from non- preferred suppliers. Purchasing and Procurement: Purchase orders are either recorded inaccurately or not recorded at all.

1.3 Action Plans Further reports will be provided as the self-assessment cycle progresses. 2. External Audits/Correspondence from Auditors - Dean Newbery & Partners 1. Interim ‘Internal Control’ Audit – carried out 18th and 19th January 2016 There were 4 Auditors in attendance over the 2 days who consulted with various staff querying processes and documentation in relation to our Internal Financial Control environment. Comments: 1. We are yet to receive the interim letter from the Auditors but will provide further detail

around the results of the interim audit as they become available. Results will be discussed further (where necessary) with the relevant officers prior to providing a response to the letter to the Auditors.



3. Inspections/Internal Audits / Compliance Testing Policy /Process/Area No. of Non

Conformances No. of Observations

Comments: 1. An Internal Audit Schedule is currently being produced and will be provided at the next

meeting of the Audit Committee. 4. Incident Register – Internal Financial Control Source Works &

Engineering Services

Development & Environmental

Services

Corporate & Community

Services

Executive Services

Incident Report – Business Process/Behaviour

#

#

#

#

Internal Audit # # # # Comments: Above shows an example of how we will present the number of incidents raised in relation to the financial functions of Council. No further work has progressed with this at this stage. 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 &

Engineering Services

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

21/10/15 1/6/19 Current

TBCPOC4650 Debt Recovery Policy 21/7/15 1/11/18 Current TBCPOC4750 Disposal of Land and Other Assets

Policy 10/9/14 10/9/18 Current

TBCPOC4200 Funding Policy 21/7/15 1/6/19 Current 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 21/7/15 1/11/18 Current TBCPOC4150 Treasury Management Policy 21/7/15 1/6/19 Current Comments: 1. The two policies in bold above are currently being worked on and are at varying

stages. 2. It is also noted that the Procurement Policy is due for review by 30/6/16. 7. Audit Committee – Internal Control Action Items Provide progress against action items within the minutes of the Audit Committee Meetings Meeting Date Action Status None to report 8. South Australian Local Government Financial Management Group

(SALGFMG) - Internal Control Working Party Provide information on our involvement and projects that this Group is working on.

1. Funding of $20,000 has been allocated to the SALGFMG – Internal Control Working Party from Local Government Research and Development Scheme for the ‘Review of the Better Practice Model, Financial Internal Controls’. This funding will be used to review the framework in the Better Practice Model, Financial Internal Controls and to build on learnings from internal controls opinions provided by auditors. This body of work is now out to tender and will begin once the tender is finalised.

AUDIT COMMITTEE


11 FEBRUARY 2016 7.1.5 BUDGET UPDATE 2015-16 (AS AT 30 SEPTEMBER 2015) B2734 INTRODUCTION The Budget Update for 2015-16 (as at 30 September 2015) was presented to Council at its 17 November 2015 Council Meeting, and the budget variations contained therein were adopted. RECOMMENDATION That the Budget Update for 2015-16 (as at 30 September 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. The proposed variances between the original budget and this budget update are listed on the operating and capital budget adjustment pages. Please note for reconciliation purposes, from the Original Budget to the first Budget Update, the variances also include a summary of the carried forwards as approved by Council (refer Agenda Item 7.3.1.2). The report also includes details of new initiatives and capital expenditure adjustments. Attachment Attachment 1: Budget Update as at September 2015 LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Sect 123 (13) Local Government (Financial Management) Regulations 2011 Regulation 9 (1)(a) Policy Budget & Business Plan and Review Policy Council Strategic Plan 4.1 – Responsibility 4.3 - Systems FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial

To enable Council to make effective and strategic financial decisions, a quarterly budget review report is provided. This report contains budget adjustments for decisions Council has made since the last review and other adjustments to meet financial changes in capital and/or operational areas. The document contains comments and implications for the Long Term Financial Plan as a result of this review.

COMMUNITY CONSULTATION Community Consultation was part of the original budget adoption process in June 2015, as per legislation.

Budget Update 2015-16 – as at 30 September 2015 | The Barossa Council | Page 1

Annual Budget and Business Plan 2015-16

Budget Update - Quarterly As at 30 September 2015

Annual Business Plan Report

Operating Result – The Barossa Council Includes Operating New Initiatives 11

Associated Entities – Subsidiary

Operating Result – Nuriootpa Centennial Park Authority 12

Functional Reporting Operating Expenditure 13

Capital Works Program 14

Budget Update Report

Executive Summary

Uniform Presentation of Finances

Key Performance Indicators

Summary of Operating Budget Variance Adjustments

Summary of Capital Budget Variance Adjustments

2

3

4

5

10


Financial Statements - Actual Report

Executive Summary

This report is a Budget Update as at 30 September 2015 for the 2015-16 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 2015-16 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 5-10 within this report for further information on the note numbers:

(1-5) Carried Forwards from 2014-15 $27k (F); Income from increase in client numbers Leisure options $64k (F);

Unbudgeted grant funding $159k (F); Unexpected donations and contributions $46k (F). Net $315k (F)

(6-8) Carried Forwards from 2014-15 $33k (U). Extra resources required many offset by funding $48k (U);

Expenditure from increase in client numbers for Leisure options $64k (U); Unbudgeted expenditure matched

by grant funding $128k (U); Unbudgeted legal costs $27k (U); increase to depreciation for revalued

infrastructure assets $111k (F). Net $447k (U).

(9) Carried Forwards from 2014-15 $179k (U). Net $150k (U)

(10) Carried Forwards from 2014-15 $38k (F). Net $38k (F) (11-12) Carried Forwards from 2014-15 $744k (U); Talunga Park Atrium $110k (U); Nuriootpa Swimming Pool Solar

Heating System $44k (U); Barossa Bushgardens Shed, Irrigation System and Plant Stands $35k (U) and capital

contributions towards the Talunga Park Atrium $125k (F) and Barossa Bushgardens Irrigation System and

Plant Stands $27k (F). Net $782k (U)

(13) Carried Forwards from 2014-15 $451k (F). Net $451k (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 2015-16 year (these are included within the yearly budget wherever possible) but also may effect the longer term. In some cases not all information is available for these projects and 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 could potentially improve the operating result in the LTFP. Selected asset types are made of two components mainly within the transport asset class. The second component being a long life asset. Current practice in the past is not to depreciate these second components. Council's initial review and findings are that if the long life application was applied to the second component and additionally applied to asset types that have not had a long life component, depreciation may in fact be reduced in future years. A long life will be assessed, assigned and then attached to the second asset component for relevant asset types during 2015-16.

Savings from the Regional Procurement Program to offset cost for the shared resource have been identified and will mainly apply to the 2015-16 financial year and beyond and are thus not specifically identified and recognised in 2014-15. Improvements to process, legal compliance and efficiency of purchasing have also been identified and already applied.

An early payment was received in 2014-15 for Federal Financial Assistance Grants Income for $531k from the 2015-16 allocation. It is unknown if this early payment will continue in the ensuing years, at this stage no change to the 2015-16 budget has been made in the assumption that an early will be made in June 2016 from the future year allocations.

The Nuriootpa Centennial Park Authority has undergone a review of their Forward Five Year Business Case this will increase capital expenditure and loan financing requirements in the short term with the expectation activity will be higher earlier, increasing the overall return on investment.


Uniform Presentation of Finances

Note

Original Full year Budget

$’000

Actuals as at 30 Sept

$’000

Variance OB to RB

$’000

Proposed Full- year Revised Budget $’000

Current Full- year Revised

Forecast $’000

OPERATING ACTIVITIES:

Operating Income 1-5 35,075 28,712 315 35,390 35,390

Less Operating Expenses 6-8 34,891 7,574 447 35,338 35,338

Operating Surplus (Deficit) (a) 184 21,138 (132) 52 52 Less Net Outlays on Existing Assets

Capital Expenditure on Renewal and Replacement of existing assets*

9 5,389 (194) 150 5,539 5,539

Less Depreciation, Amortisation and Impairment

8 7,254 1,814 111 7,365 7,365

Less Proceeds from Sale of Replaced Assets

10 320 49 38 358 358

Net Outlays on Existing Assets (b) (2,185) (2,057) 1 (2,184) (2,184)

Less Net Outlays on New and Upgraded Assets

Capital Expenditure on New and Upgraded assets*

11 4,977 (68) 934 5,911 5,911

Less Amounts received specifically for New and Upgraded Assets

12 1,205 138 152 1,357 1,357

Less Proceeds from Sale of Surplus Assets

13 - - 451 451 451

Net Outlays on Existing Assets (c) 3,772 (206) 331 4,103 4,103

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

(1,403) 23, 401 (464) (1,867) (1,867)

Funding Source for the movement in Net Lending / (Borrowing) Original Full year Budget Net Lending / (Borrowing)

$’000

(1,403)

Carried Forward Budget Adjustments – Report on Financial Results. Funds were held for these projects in cash and investments at 30 June 2015

(440)

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 2015; refer to information on Budget Variance Adjustments within this report .

(24)

Proposed Full- year Revised Budget - Net Lending / (Borrowing)

(1,867)

*Note: the actual amounts are currently in minus reflecting 2014-15 accruals for capital expenditure undertaken in that year and have now been

paid in October 2015


Key Performance Indicators (KPI)

Key Performance Indicators (KPI) Original Budget 30 June 16

Revised Budget 30 June 16

Operating Surplus / (Deficit) ($’000)

184 52

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 $6k from last year are included in this result. Operating Surplus Ratio 0.2% 0.15%

Target To achieve an operating surplus ratio of between -2% to 10.

Notes The ratio is reduced unfavourably due to one-of adjustments made as listed within this document. Previously this ratio had been reported as a three year average but as the methodology for this ratio has changed for the 2015-16 year and onwards, the ratio reported is for the current only.

Net Financial Liabilities ($’000) 16,468 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 47% 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 2.7% 2.6%

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

Notes Minimal change on this ratio, due to increase in operating income.

Asset Sustainability Ratio* 98% 85%

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 2015-16 year an amount of $5,096k has been used for this calculation for planned expenditure.


Business Unit Type of Adjustment

Adjustment Title Major Reason for Adjustment Adjustment $ Favourable/

(Unfavourable)

Sub Total per type $

Reserve $ From/(To)

Net

Operating AdjustmentsDevelopment and Environmental Services

Addition Development Application Fees - Building Building fees trending up 7% above budget estimate -due partly to increased building activity across Australia

7,000 7,000

Development and Environmental Services

Transfer Reallocation of Income - Excess dog applications Separating income into specific natural account Dog registration income 0 0

Note 1 7,000 Corporate and Community Services

Addition Increase in client numbers - predicted income Leisure Day Options Self Managed funding clients have increased this year and income is higher than anticipated

64,265 64,265


Transfer Re-allocation of home assist funding To better align with service type outputs in the funding contract and enable better tracking.

0 0


Addition Bushgardens Nat Resource Centre Operations BBNRC

Grant funds to be carried forward 4,771 4,771


Addition NRM Funding Allocation Adjustment for the final agreed funding allocation received from the NRM for the Bushgardens NRC

452 452

Corporate and Community Services

Addition Bike Friendly Barossa - Grant Income Grant paid by DPTI end June 2015 for acquittal of project in 15/16 year 23,300 23,300

Executive Services Addition Local Emergency Management Project Adjustments for 15/16 taking into account officer only commencing in October 2015 and therefore the project has been recast for this commencement date.

22,500 22,500

Works and Engineering Services

Addition DPTI - Open Space Grant Funding Program 2013 Grant funds to be carried forward - Jack Bobridge Track Interpretive Signage 13,873 13,873


Addition Nuriootpa Township Flood Mapping Project Grant from Adelaide & Mt Lofty Ranges Natural Resources Management Board 30,103 30,103


Addition Work for the Dole Grant Grant funding 28,509 28,509


Addition Transition funding Unplanned transition funding from DSS received 15,000 15,000


Addition Warren Reservoir Grant Funding Warren Reservoir Master plan and Early Works Program funding received 19/08/15. 20,000 20,000

Carried Fwd Approved Carried Forwards As part of the Report on Financial Results 2014-15 - Council approved Carried Forwards at the meeting held November 2015

11,328 11,328

Note 3 169,836 Development and Environmental Services

Transfer Upper Torrens Land MP Increase income Extended warranty for Ford Ranger Ute (paid for by AHC) 1,795 1,795

Executive Services Transfer Move Budget to Correct Code Fuel reimbursement s/be in 567 not 514. (450) (450)


Transfer Income adjustment - Natural Resource Centre Offset salary increase 8,747 8,747


Addition Regional Procurement - Revenue Barossa taking lead on website development and the development of a online induction portal. The recouping of these costs increases income

1,538 1,538

Note 4 11,630 Executive Services Addition OD/HR Service Recognise revenue received in advance for 15/16. 13,725 13,725



1,000 1,000


Addition Nuriootpa Township Flood Mapping Project Contribution from Other Councils 7,150 7,150


Transfer Purchase of Mower to be off set by donations Purchase of Ride on Mower funded by donations 2,818 2,818


Transfer Purchase of 25 chairs for Bushgardens NRC Cost of purchase to be off set by donations 4,625 4,625

Budget Update 2015-16 - as at 30 September 2015 | The Barossa Council | Page 5




(Unfavourable)


Reserve $ From/(To)

Net


Addition Donation - Thyne Reid Foundation Donation to offset costs associated with shed and miscellaneous materials 12,436 12,436

Executive Services Transfer Move Budget to Correct Code Fuel reimbursement s/be in 567 not 514. 450 450


Transfer Emirates Melbourne Cup Project - Contractor Expend

Project Expenditure for this was not accounted for in current budget. Budget will be transferred from 2 other areas of Council and 2 external groups

3,820 3,820

Executive Services Addition Phone Reimbursements Tracking ahead of budget. 520 520


15,425 15,425

Note 5 61,969 Executive Services Transfer Additional Support for Project Tasks Internal resources to deliver key strategic and procurement projects set in the 15-16

business plan, offset by other expenditure reductions.(14,381) (14,381)


Transfer Transfer from Salary Budget to Relief Staff Budget Corporate and Community Services Administration Assistant

(2,555) (2,555)


Transfer Asset Capitalisation 2014-15 Resource Transfer of Works payroll resources budget to Finance to provide assistance for Asset Capitalisation process for 2014-15

(1,800) (1,800)


Addition Lease Pool cleaner Nuriootpa Swimming Pool 2015/16

As per Resolution 2014-18/353 at Council meeting 18 August 2015 (4,600) (4,600)


Transfer Regional Procurement Project Officer Salary Funds required to offset additional expenditure incurred as approved by CEO. (4,000) (4,000)

Executive Services Addition Exec Svcs Salaries Minor adjustment for salary package changes approved by Council - CEO review. (3,233) (3,233)


Transfer Transfer from Salary Budget to Relief Staff Budget Corporate and Community Services Administration Assistant (284) (284)

Executive Services Addition Royal Visit Costs As per approval by Council resolution number 2014-18/413 meeting of 21 October 2015 - further $3000 will be required than the report outlined.

(2,000) (2,000)


Transfer Asset Capitalisation 2014-15 Resource Transfer of Works payroll resources budget to Finance to provide assistance for Asset Capitalisation process for 2014-15

1,800 1,800


Addition Work for the Dole Grant Grant Funding - salary expenditure (22,900) (22,900)


Transfer Salary adjustment - Natural Resource Centre Increase salary by 0.1FTE - offset by reimbursement income (8,747) (8,747)

Executive Services Addition Local Emergency Management Project Adjustments for 15/16 taking into account officer only commencing in October 2015 and therefore the project has been recast for this commencement date.

27,588 27,588


Addition Workers Compensation Insurance adjustment Workers Compensation Insurance adjustment - numerous cost centres (12,715) (12,715)


(1,181) (1,181)

Note 6 (49,008)Executive Services Addition Mobile Phone Costs Error made in setting up budgets none set for Exec Svcs staff mobile phone costs. (600) (600)


Transfer Transfer to Relief Staff Budget from Salary Budget Corporate and Community Services Administration Assistant 2,555 2,555

Executive Services Transfer Online Induction Development No budget allocation was provided for this work. This cost will be coming from the training budget.

0 0

Executive Services Transfer Mobile Phone Costs Error made in setting up budgets none set for Exec Svcs staff mobile phone costs. (1,500) (1,500)


Addition Replacement of Seat Belts - Leisure Options Bus 2 Seat belts on the Leisure Options bus need to be replaced - not covered under warranty

(1,000) (1,000)


Addition Increase in client numbers - contractor hours Leisure Day Options Self Managed funding clients have increased this year and income contractor costs higher than anticipated

(64,265) (64,265)





(Unfavourable)


Reserve $ From/(To)

Net


Addition Fire Extinguisher testing Increase needed to capture actuals. New expense (650) (650)


Addition Bike Friendly Barossa Expenditure for bike friendly programs in the Barossa (23,300) (23,300)


Addition Water for Cycle Hub/CWA Hall - Charges 25% allocation to Cycle Hub/CWA Hall budget. Previously allocated in Works budget (charges- not usage)

(100) (100)


Addition Water for Cycle Hub/CWA Hall Previously sat in works budget. 25% split of total water bill to be allocated to CWA Hall/Cycle Hub (Water Usage)

(900) (900)

Executive Services Addition Community Plan - Support Consultation Costs Support consultation costs related to web site development of Our Better Barossa site which will be utilised for all future community engagement processes and thus

(4,800) (4,800)


Transfer IT Leadership Council Members Additional $3,000 required to be transferred from general consultants natural account to cover increase in cost due to late uptake of membership offer

0 0


Transfer XPS Lease Agreement Costs (New Copiers) Actual lease agreement costs are slightly higher than budgeted - will be offset by savings in the print cost line with the old copiers

0 0


Transfer Splitting cost off purchase of swipe cards One off splitting of costs to purchase additional swipe cards. This is a once off agreement between the MKATS and MAI to purchase additional swipe cards

(366) (366)


Transfer Mobile Phone Costs Additional expenditure will be incurred this year with an extra $140 per month in mobile phone call costs as a result of us increasing our mobile phone plans

0 0


Reduction Melbourne Cup Event Transfer of funds from Library Budget 173-654 to Arts Officer Budget 263-567 for Melbourne Cup Event expenses

1,000 1,000


Transfer Database Purchases from PLS Grant Funds Transferred funds from book asset line to subscriptions purchase databases (11,100) (11,100)


Addition WQVJP - Amenities upgrade from reserve As per Council resolution 18 August 2015 (9,740) 9,740 0


Transfer Under budgeted for programmed maintenance Under budget for programmed maintenance for pest control at Lyndoch Hall (214) (214)


Transfer Top up required for Hall(s) Pest Top up required for Hall(s) Pest - Pest Control under budgeted (844) (844)


Addition Increase required covering actual costs Increase required covering cost increases in Pest Control Services for sentricon system

(645) (645)


Addition Talunga Park - Mower from reserve funds As per Council resolution 15 September 2015 (5,990) 5,990 0


Transfer Under budgeted for Williamstown Rec Park Pest Control

Budget for the Williamstown Rec – Pest 213 633 shows $1080 however annual invoice is $1210

(130) (130)


Addition Toys/BBQ/Outdoor items - Nuriootpa Swimming Pool

As per Resolution 2014-18/353 at Council meeting 18 August 2015 (9,237) (9,237)


Addition WiFi/Internet connection Nuriootpa Swimming Pool

As per Resolution 2014-18/353 at Council meeting 18 August 2015 (763) (763)


Reduction AMG - Contribution Double up in railway master plan contribution 5,000 5,000


Transfer ACBA Inc - Strategic Projects As per Council resolution 15 September 2015; transfer from budgeted allocation for transitioning committees

0 0


Transfer Pitney Bowes - Exponare Software Renewal Software Costs unexpectedly increased due to our preference for a shorter renewal period to support the work being undertaken under the ICT Strategic Plan. Costs will

0 0


Transfer Pitney Bowes - Exponare Software Renewal Software Costs unexpectedly increased offset by a reduction in expenditure on consultant support for this corporate app.

0 0


Transfer Additional Support for Projects Tasks Transfer of funds from various consultant/contractor budgets to support short term internal resources to deliver key strategic and procurement projects

14,381 14,381


Addition Annual Hire fee and Financial Contribution Annual Hire fee and Financial Contribution to Maintenance requested by Barossa Village. This is an unbudgeted expense

(825) (825)


Addition BRPG Online Induction Portal Barossa taking lead on website development and the development of a online induction portal, we have all of these expenses on behalf of the five councils

(1,415) (1,415)





(Unfavourable)


Reserve $ From/(To)

Net


Addition Bushgardens Nat Resource Centre Operations BBNRC

Expenditure to match grant $ (4,771) (4,771)

Executive Services Transfer Community Plan - Community Engagement Transfer funds to support advertising costs. 0 0

Executive Services Addition Community Plan - Printing and Postage Costs Increase allowance for printing and postage costs to support full community engagement program.

(3,000) (3,000)


Transfer Correct budget allocation Correct natural account allocation for pest control 0 0


Addition Donation - Thyne Reid Foundation Miscellaneous materials (4,000) (4,000)


Addition DPTI - Open Space Grant Funding Program 2013 Expenditure- Jack Bobridge Track Interpretive Signage (13,873) (13,873)


Addition EMC Angaston CFD - Contractor Expense Commitment from other Council areas to purchase Contractor for Event Management

(3,000) (3,000)


Addition Emergency Exit lighting repairs Various repairs to the exit / emergency to address emergency lighting and exit lighting issues at the various Council assets. Funded from CapEx budget

(9,229) (9,229)


Transfer Emirates Melbourne Cup Project Cost will then be invoiced to Angaston Inc for reimbursement as partner organisation in project.

(3,820) (3,820)


Addition EziClip File Fasteners To Health Printing for purchase of integrated file folders. 0 0


Reduction Income Protection Insurance adjustment Income Protection Insurance adjustment - numerous cost centres 13,421 13,421


Transfer Increase of funds in TV Repeater station maint Transfer for increase of funds in TV Repeater station maintenance to cover supply and installation of switchboard to ensure compliance and reduce fire risk.

0 0


Addition Increase to DAIP expenditure Requested by CEO and sanctioned by CMT (23/9/15) to adjust budget to enable TBC share of regional development of DAIP to proceed.

(2,500) (2,500)


Addition Increase to Legal Expenditure for Building Control Increase to Legal Expenditure for Building Control to offset fee for 6 Collins Street matter

(20,000) (20,000)


Addition Insurance - hirers of Council facilities Insurance - hirers of Council facilities - above budget (1,193) (1,193)


Addition Legal Expense Increase Number of unforeseen instances of Legal Expenditure (10,000) (10,000)

Executive Services Addition Legal Settlement Cost Legal Settlement Cost (1,000) (1,000)

Executive Services Reduction Local Emergency Management Project Adjustments for 15/16 taking into account officer only commencing in October 2015 and therefore the project has been recast for this commencement date.

4,250 4,250

Executive Services Transfer Mobile Phone Costs Error made in setting up budgets none set for Exec Svcs staff mobile phone costs. 1,500 1,500


Reduction Natural Resources Officer - vehicle costs Natural Resources Officer - no longer employed by Council, therefore related vehicle costs are no longer required - insurance, registration and depreciation

7,996 7,996


Addition Waste Services No allocation for waste services - unforeseen expenditure - damage to private land (627) (627)


Addition Planning Services No allocation for Planning Services - Planning Law Online (1,104) (1,104)


Addition Bushgardens Training No allocation for SALA registration and Workshop (287) (287)


Addition Bushgardens Training No allocation for training and development - attendance at Landcare Conference (400) (400)


Addition Nuriootpa Township Flood Mapping Project Expenditure to match grant $ (37,253) (37,253)


Reduction Public Liability Insurance adjustment Public Liability Insurance adjustment - numerous cost centres 5,970 5,970





(Unfavourable)


Reserve $ From/(To)

Net


Transfer Purchase of 25 Chairs for Bushgardens NRC Cost of purchase to be off set by donations (4,625) (4,625)


Transfer Purchase of Mower off set by donations Purchase of Ride on Mower to be funded by donations (2,818) (2,818)



(1,000) (1,000)


Transfer Regional Procurement Project Officer Salary Offset

Funds required to offset additional expenditure incurred within the salary natural account - salary increase approved by CEO

2,000 2,000


Transfer Regional Procurement Project Officer Salary Offset

Funds required to offset additional expenditure incurred within the salary natural account - salary increase approved by CEO

2,000 2,000

Executive Services Addition Royal Visit Costs As per approval by Council resolution number 2014-18/413 meeting of 21 October 2015 - further $3000 will be required than the report outlined.

(12,700) (12,700)

Executive Services Transfer Southern Barossa Rec Hub Transfer budget to support round 1 of community consultation costs. 0 0


Addition Spending DSS transitional funds Spending transitional funds (15,000) (15,000)


Transfer Splitting cost off purchase of swipe cards Purchase additional swipe cards for the organization 366 366


Transfer Top up required for Hall(s) Pest Top up required for Hall(s) Pest - Pest Control under budgeted 844 844


Transfer Top up required to TV Repeater Station CC Top up required to TV Repeater Station CC - Installation of a robust fence required to stop livestock entering the compound and damaging infrastructure.

0 0

Executive Services Reduction Tourism Barossa Subs Indexation was lower than budgeted recognise savings. 300 300


Transfer Transfer to Relief Staff Budget from Salary Budget Corporate and Community Services Administration Assistant 284 284


Transfer Under budget for programmed maintenance Under budgeted for programmed maintenance for pest control at Lyndoch Hall 214 214


Transfer Under budgeted for Williamstown Rec Pest Budget for the Williamstown Rec – Pest 213 633 shows $1080 however annual invoice is $1210

130 130


Transfer Upper Torrens Land MP Increase in contractors Extended warranty for Ford Ranger Ute (off-set by income) (1,795) (1,795)


Addition Warren Reservoir Expenditure Warren Reservoir Master plan and Early Works Program funding received 19/08/15. (20,000) (20,000)


Addition Work for the Dole Grant Grant Funding - Equipment/Consumables expenditure (5,609) (5,609)


(31,455) (31,455)

Note 7 (287,232)Various Addition Depreciation expense review The revaluation to major asset classes last year resulted in a review of the budgeted

depreciation expense(111,000) (111,000)

Note 8 (111,000)

NET TOTAL - Operating Adjustments Note: for reconciliation purposes the report includes Approved Carried Forwards (132,540) (132,540) 15,730 (116,810)




Adjustment Title Reason for Budget Adjustment/Carried Forward Adjustment $ Favourable/

(Unfavourable)


Reserve $ From/(To)

Net

Capital Expenditure on Renewal and Replacement of existing assets


Transfer Emergency Exit lighting repairs Transfer CapEx renewal for various repairs to the exit to address emergency lightingand exit lighting issues at the various Council assets.

9,229 9,229


Reduction Database Purchases form PLS Grant Funds Reduce by $11,100 to be moved to Subscriptions to purchase databases. 11,100 11,100

Executive Services Reduction Community Plan - Support Consultation Costs Support consultation costs related to web site development of Our Better Barossa site which will be utilised for all future community engagement processes and thus supports a long term engagement tool for Council.

4,800 4,800


Reduction Road Resealing program (replacement renewal) Reduce budget to match schedule of works 4,066 4,066

Carried Fwd Carried Forwards As part of the Report on Financial Results 2014-15 - Council approved Carried Forwards at the meeting held November 2015

(179,425) 46,000 (133,425)

Note 9 (150,230) 0 Asset Sales adjustments/Capital Income*


38,500 (38,500) 0

Note 10 38,500 0

NET TOTAL - Asset Renewal/Replacement Adjustments (111,730) 7,500 (104,230)Capital Expenditure on New and Upgraded assets


Addition Talunga Park Atrium Expenditure Atrium Project - $60,000 Atrium Structure, $35,000 Fire Fighting provisions, $15,000Flooring.

(110,000) (110,000)


Addition Nuriootpa Swimming Pool Solar Heating System As per Resolution 2014-18/353 at Council meeting 18 August 2015 (44,200) (44,200)


Addition Bushgardens Shed 14/15 CITF levy CITF levy - Bushgardens Shed budget 14/15, rec'd and installed July 2015; budget needed to match expenditure in 15-16

(45) (45)


Addition Barossa Bushgardens Plant Stands Purchase of 32 rectangular tables from Detail Retail for Barossa Bushgardens (8,830) (8,830)


Addition Purchase of Irrigation for Barossa Bushgardens Cost to be off set- by donations from Thyne Reid Foundation (17,773) (17,773)


Addition Barossa Bushgardens Sales Shelter Shed Shed (8,436) (8,436)


Addition Road Resealing program (new upgrade) Increase budget to match schedule of works (574) (574)


(743,948) 421,565 (322,383)

Note 11 (933,806) 0 Amounts received specifically for New and Upgraded

Assets/Profit & loss for asset disposalWorks and Engineering Services

Addition Talunga Park Atrium Grant Funding Income received late in 14/15 for the construction of the Talunga Park Toilets and Atrium.

95,000 95,000


Addition Talunga Park Atrium Community Contribution Contribution from Mt Pleasant Farmers Market toward Atrium Construction. 30,000 30,000


Addition Purchase of Irrigation for Barossa Bushgardens Cost to be off set by donations from Thyne Reid Foundation 17,773 17,773


Addition Barossa Bushgardens Plant Stands - Donation - Thyne Reid Foundation

Purchase of 32 rectangular tables from Detail Retail for Barossa Bushgardesn 8,830 8,830

Note 12 151,603 0 Asset Sales adjustments


451,000 451,000

Note 13 451,000 0

NET TOTAL - Asset New/Upgrade Adjustments (331,203) 421,565 90,362 NET TOTAL - Capital Adjustments (442,933) (442,933) 429,065 (13,868)

Budget Update 2015-16 as at 30 September 2015 | The Barossa Council | Page 10


Annual Business Plan Operating Result – The Barossa Council (Excludes NCPA)

Operations


(OB)


Variance OB to RB

Fav/(Unfav)

Proposed Full- year Revised

Budget (RB)

Current Full- year Revised Forecast

$’000 $’000 $’000 $’000 $’000

Income 33,464 27,947 300 33,764 33,764

Expenditure 33,129 5,102 (447) 33,576 33,576

Capital Amounts 559 - 152 711 711

Net Surplus (Deficit) 894 22,845 5 899 899

New Initiatives – Operating The following table lists new initiatives approved within the operating budget, these are additional or increases to existing services or programs. All

capital new initiatives are showing in the Capital Works Program heading within this report.


Project Description

Original

Budget

Actuals at 30

Sept

Carried

Forward from

2014/15

Quarter 1

Adjustments

Variance

Fav/(Unfav)

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000 $'000

Section 42 Subsidiary Nuriootpa Centennial Park Authority

Roadways and Kerbing - carried forward from 14-15 25 - - - - 25

Camp Kitchen Refurbishment - carried forward from 14-15 10 - - - - 10

Demolish Cleaners Room 3 - - - - 3

Total Asset Renewal and Replacement Budget 38 - - - - 38

Project Description

Original

Budget

Actuals at 30

Sept

Carried

Forward from

2014/15

Quarter 1

Adjustments

Variance

Fav/(Unfav)

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000 $'000


Install 3 New Family Cabins 191 - - - - 191

Demolition - Cabins, Ablution Block B and Meeting Room 106 - - - - 106

Multi-Function Building 277 - - - - 277

Swimming Pool and Ancillary Equipment 153 - - - - 153

Nuriootpa Centennial Park - Resurface Tennis Courts - - 15 - (15) 15

Total Asset New and Upgrade Budget 727 - 15 - (15) 742

Nuriootpa Centennial Park Authority

New and Upgrade Programs

Expenditure

Renewal and Replacement Programs

Capital Works Program 2015-16

Associated Entities – Subsidiary

Operating Result – Nuriootpa Centennial Park Authority

Responsibilities and

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.

The projected 2015-16 Income Statement for the Authority is included within Council’s

financial statements, contained within this document.

Operations


(OB)


Variance OB to RB

Fav/(Unfav)

Proposed Full- year Revised

Budget (RB)

Current Full- year Revised Forecast

$’000 $’000 $’000 $’000 $’000

Income 1,611 15 15 1,626 1,626

Expenditure 1,762 78 - 1,762 1,762

Capital Amounts - - - - -

Net Surplus (Deficit) (151) (63) 15 (136) (136)


Functional Reporting Operating Expenditure

The following graphs show Budget operating expenditure for the 2015-16 year and the first Budget Update 2015-16 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.


Divisions:

Executive Services



Works and Engineering

Project Description

Original

Budget

Actuals at 30

Sept

Carried

Forward from

2014/15

Quarter 1

Adjustments

Variance

Fav/(Unfav)

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000 $'000

Building Assets 165 (1) 76 (9) (67) 232

Nuriootpa Office Air-conditioning 35 - - - - 35

Building Renewal and Replacement 64 (1) - (9) 9 55

Tanunda Recreation Park – Minor Shed Upgrade 15 - - - - 15

Angas Recreation Park – Toilet Facil ities Renewal 10 - - - - 10

Tanunda Show Hall - Lighting Replacement 30 - - - - 30

Curdnatta Park - Kitchen Renewal 11 - - - - 11

The Rex Stadia - Pool Plant - - 76 - (76) 76

Transport 2,907 (303) - (4) 4 2,903

Renewal and Replacement of Existing Footpaths 300 (1) - - - 300

Road Resealing Works 1,174 (381) - (4) 4 1,170

Road Resheeting Works 1,333 79 - - - 1,333

Road Shoulder works 50 - - - - 50

Tanunda Main Street Design Works 50 - - - - 50

Bridges, Floodways and Major Culverts 42 - - - - 42

Gomersal Road Bridge Repairs 42 - - - 42

Community Wastewater Management Systems (CWMS) 169 36 46 - (46) 215

Vehicle Replacements 116 36 35 - (35) 151

Operation Emergency IP and Manhole Repairs/Replacement 53 - - - - 53

Springton Gravity Drain - - 5 - (5) 5

Penrice Gravity Drain - - 6 - (6) 6

Recreation Assets 842 13 - - - 842

Playground Equipment Renewal 30 - - - - 30

Recreation Parks - Ovals 752 13 - - - 752

Will iamstown Queen Victoria Jubilee Park - Court

Resurfacing 45 - - - - 45

Curdnatta Recreation Park – Replace BBQ 5 - - - - 5

Curdnatta Park - Retaining Wall 10 - - - - 10

Plant and Equipment 1,138 58 42 (5) (37) 1,175

Plant, Machinery and Vehicles 575 - - - - 575

Office Vehicles 400 43 42 - (42) 442

Community Transport Vehicles 54 - - - - 54

Minor Plant 35 15 - - - 35

Risk Management / Corporate Reporting System Funds 74 - - (5) 5 69

Library 88 3 - (11) 11 77

Materials - Books - Public Library Scheme 76 - - (11) 11 65

Materials - Books - Local Purchase 12 3 - - - 12

Total Asset Renewal and Replacement Budget 5,351 (194) 164 (29) (135) 5,486

(Excluding Nuriootpa Centennial Park Authority)

Capital Works Program 2015-16

Expenditure


Capital Works Program


Project Description

Original

Budget

Actuals at 30

Sept

Carried

Forward from

2014/15

Quarter 1

Adjustments

Variance

Fav/(Unfav)

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000 $'000

Building Assets 319 46 167 118 (285) 604

Tanunda Cycle Hub (5% retention payment) 28 - - - - 28

The Rex Stadia - Full Phased Air Cooling Solution 227 2 - - - 227

Talunga Recreation Park - Kitchen Upgrade

(subject to Community funding of $28,875) 64 - - - - 64

Talunga Park Atrium - 28 - 110 (110) 110

Talunga Park Toilets - - 150 - (150) 150

Barossa Bushgardens Shed - 16 17 - (17) 17

Barossa Bushgardens Sales Shelter Shed - - - 8 (8) 8

Transport 1,161 - - 1 (1) 1,162

New and Upgrade of Footpaths 300 - - - - 300

Angaston Main Street - Paving, Street Bins and Furniture 80 - - - - 80

Mount Pleasant Main Street Development 40 - - - - 40

Road Sealing Works (including extra R2R funding $328k) 628 - - 1 (1) 629

Schlinkes Gully Guard Railings 50 - - - - 50

Angaston Railway Precinct Upgrade 13 - - - - 13

Jack Bobridge Track Cycle Connection 50 - - - - 50

Bridges, Floodways and Major Culverts 80 (1) - - - 80

Allendale Road Culvert 80 (1) - - - 80

Community Wastewater Management Systems (CWMS) 1,298 17 422 - (422) 1,720

Williamstown - Rising Main Duplication 1,100 9 - - - 1,100

Nuriootpa West - Gravity Mains Asset Management 75 10 - - - 75

Tanunda West - Gravity Mains Asset Management 75 - - - - 75

Operation Emergency Drain Repairs 38 1 67 - (67) 105

Operation Construction of New IP 10 - - - - 10

Mount Pleasant Gravity Drain - - 10 - (10) 10

Stockwell Gravity Drain - - 10 - (10) 10

CWMS Headworks Replacement - (1) 5 - (5) 5

CWMS Control System - - 20 - (20) 20

Tanunda - CWMS Lagoons - - 78 - (78) 78

Stockwell Waste Water Treatment Plant - (1) 89 - (89) 89

Mount Pleasant Waste Water Treatment Plant - (1) 143 - (143) 143

Stormwater Drainage 491 (3) 155 - (155) 646

Upgrade Inlet Capacity 40 - - - - 40

Drainage Capacity Upgrade 25 - - - - 25

Mount Pleasant - Phill is Street and Melrose Street - New

Inlet Pits 25 - - - - 25

Mount Pleasant - Melrose Street to River - Channel

Easement/Scour Protection 18 - - - - 18

Mount Pleasant - Will iam Street - Underground Drainage 15 - - - - 15

Mount Pleasant - Tungkillo Road/Isaac Street - Channel

Easement/Scour Protection 10 - - - - 10

Nuriootpa Stormwater Management Study 180 (2) 89 - (89) 269

Will iamstown - George Street - Low Point Drainage Improvement 30 - - - - 30

Springton Drainage 50 - - - - 50

Kalbeeba Drainage 98 - - - - 98

Nuriootpa - Kalimna Road - Road Drain - (1) 39 - (39) 39

Nuriootpa - Greenock Road - Road Drain - - 27 - (27) 27

Recreation Assets 864 - - 44 (44) 908

Playground Equipment Upgrade 70 - - - - 70

Recreation Parks - Ovals 251 - - - - 251

Tanunda Recreation Park Committee - Oval Lighting Upgrade 198 - - - - 198

Stockwell Oval (subject to grant funding approval) 345 - - - - 345

Nuriootpa Swimming Pool Solar Heating System - - - 44 (44) 44

Plant and Equipment 37 9 - 27 (27) 64

PABX Telephone Server, Headsets and Handsets 37 - - - - 37

Barossa Bushgardens Irrigation - - - 18 (18) 18

Barossa Bushgardens Plant Stands - 9 - 9 (9) 9

Total Asset New and Upgrade Budget 4,250 68 744 190 (934) 5,184



Capital Works Program 2015-16 (Continued)

Expenditure (Continued)


Project Description

Original

Budget

Actuals at 30

Sept

Carried

Forward from

2014/15

Quarter 1

Adjustments

Variance

Fav/(Unfav)

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000 $'000

Community Wastewater Management Systems (CWMS) 58 22 17 - 17 75

Vehicle Replacements - Proceeds on trade-in 58 22 17 - 17 75

Recreation Assets 33 - - - - 33

Williamstown Queen Victoria Jubilee Park - Court

Resurfacing

(subject to club grant funding approval) (Operating) 33 - - - - 33

Plant and Equipment 262 25 21 - 21 283

Plant, Machinery and Vehicles - Proceeds on trade-in 35 - - - - 35

Office Vehicles - Proceeds on trade-in 200 25 21 21 221

Community Transport Vehicles - Proceeds on trade-in 27 - - - - 27

Library 76 - - - - 76

Materials - Books - Public Library Scheme (Operating) 76 - - - - 76

Total Asset Renewal and Replacement Budget 429 47 38 - 38 467

Project Description

Original

Budget

Actuals at 30

Sept

Carried

Forward from

2014/15

Quarter 1

Adjustments

Variance

Fav/(Unfav)

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000 $'000

Building Assets 51 125 451 125 576 627

The Rex Stadia - Full Phased Air Cooling Solution 22 30 - - - 22

Talunga Recreation Park - Kitchen Upgrade

(subject to Community funding of $28,875) 29 - - - - 29

Talunga Park Atrium - 95 125 125 125

Land Held For Sale - - 451 - 451 451

Transport 13 13 - - - 13

Angaston Railway Precinct Upgrade 13 13 - - - 13

Community Wastewater Management Systems (CWMS) 828 - - - - 828

Developer Contributions 828 - - - - 828

Recreation Assets 313 - - - - 313

Tanunda Recreation Park Committee - Oval Lighting Upgrade 83 - - - - 83

Stockwell Oval (subject to grant funding approval) 230 - - - - 230

Plant and Equipment - - - 27 27 27

Barossa Bushgardens Irrigation - - - 18 18 18

Barossa Bushgardens Plant Stands - - - 9 9 9

Total Asset New and Upgrade Budget 1,205 138 451 152 603 1,808

Grants, Contributions and Asset Sales




Grants, Contributions and Asset Sales 2015-16


AUDIT COMMITTEE


11 FEBRUARY 2016 7.1.6 REVIEW DRAFT BUDGET 2016-17 AND ANNUAL REVIEW LONG TERM FINANCIAL PLAN INDEXATION AND ASSUMPTIONS INTRODUCTION As per the 2016-17 Annual Budget/Business Plan timetable endorsed by Council in January 2016, the Audit Committee needs to consider and provide comment on the indexation and assumptions for the Annual Budget & Business Plan (AB&BP) 2016-17 and Long Term Financial Plan (LTFP) 2016-17 to 2025-26. RECOMMENDATION That the Audit Committee notes the indexation and assumptions for the Annual Budget & Business Plan 2016-17 and Long Term Financial Plan (LTFP) 2016-17 to 2025-26. COMMENT Overview The review of indexing and assumptions for the Annual Budget & Business Plan 2016-17 and Long Term Financial Plan (LTFP) 2016-17 to 2025-26 has been considered by Council at the information briefing Workshop on 3 February 2016. 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 is attached. Key Assumptions & Enhancements 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 2015 was 1.3% 30 September 2015 was 1.0%; (noting the Adelaide CPI for the 30 December period was 1%). As the cost indexation has been reducing from previous adopted long term financial plans Council will reconsider the cost of delivering services and any

changes to the level of service to ensure income or charges for the services are appropriate. The following indexation is sourced from the adopted LTFP. Income Rate increases to fund and ensure service level provision is maintained in line with revised sustainability requirements. Both the Residential and Non-residential rate revenue were budgeted to increase at 4.50% in 2016-17, 5% in 2016-17, and the years following 4%, 3.5%, 3.0%, then 2.5% per annum thereafter. The adopted Waste Service Rate Revenue indexation rates in the LTFP from last year was budgeted to increase at 6.5% in 2016-17 and 2017-18, 5.50% in 2018-19 then 3.5% in 2019-20, 3.0% in 2020-21 and then for the next 3 years at 2.5% and the last year at 3.0%. The adopted Community Wastewater Management Systems Service Rate Revenue indexation rates in the LTFP from last year was budgeted to increase at 2.5% in 2016-17, 3.5% for the next six years and then 3.0% per annum thereafter. An ongoing review of the service charge for requirements from ESCOSA to 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 be reviewed in 2016 (the current adopted plan is at 2.5%), reconsider in line with the current LGPI at 1.0%;

• Contractors and materials have a base increase of 1.0%, the default indexation for expenditure (the current adopted plan is at 2.5%);

• selected operating costs have been isolated as increases to these are unique eg. power 2.5%, water 2.5%, insurance 4.0%, waste collection TBA% all plus changes to service provision, ie. increased number of services provided or usage – all indexation quoted is from the adopted LTFP.

Increases to power costs are subject to a LGA tender for Councils in SA, the current 12 month contract indexation is to be advised. Power costs make up about 3.6% of the total operating budget. 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. Attachment Attachment 1: Long Term Financial Plan – Indexation and Assumptions LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation

Local Government Act 1999 Section 122 Policy Budget & Business Plan and Review Policy Council Strategic Plan 4.1 – Responsibility FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial 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.

Long Term Financial Plan (LTFP)

– Indexation & Assumptions

version 1.0

2016-17 to 2025-26

3 February 2016

Budget Workshop • Short Framework Presentation • Members Discussion Points: • Summary

Long Term Financial Plan Summary Highlights

Draft Budget 2016-17 (adopted LTFP) preliminary assumptions and indexation for consideration:

• General Rate revenue to increase from last year increase by 4.5% plus growth

• Other rating:

– Waste Collection Service charge 6.5%

– Community Wastewater Management Systems (CWMS) Service charge 2.5%

• Operating Income – Statutory, User charges, Reimbursements and Other income indexation will be increased by 2% over last year

• Operating Costs – Employee, new enterprise bargaining agreements to be agreed and forward estimates 2.5%, Contractors & Materials at 2.5%

• Selected Operating Costs have been isolated as increases to these are unique eg. power (2.5%), water (2.5%), insurance (4%) and waste collection (3.5%) all plus changes to service provision, ie. increased number of services provided or usage

• Capital Expenditure adopted LTFP $8.3m (less trade-in $0.5m)

Draft Long Term Financial Plan Major Key Assumptions

Review of default indexation considering LGPI & CPI increases and service levels

and cost of delivering the service

Revaluation and condition assessment of assets to be undertaken as required in the asset class revaluation program per asset type to update the estimate build cost for the existing assets over the plan. It is expected that Council’s understanding and management of this important function will potentially improve the operating result in the LTFP.

Roads to Recovery grant funding of $329k per year is confirmed for a 5 year period but has been included for the life of the LTFP, with an additional allocation for 2016-17 of $757k

Discretional Capital expenditure at $350k per year from 2016-17 to 2018-19 $300k for 2019-20 & 2020-21 and an increased amount for remaining years.

A delay has been included for purchase of selected asset expenditure in the years 2016-17 and 2017-18 to the year 2021-22 to remain in a net positive cash position

Rubble supplied will be incorporated into inventory in the year of supply to be used in operations/capital projects as required

All capital projects are completed within the financial year - no Works in Progress

Draft Long Term Financial Plan Major Key Assumptions – Capital expenditure

The adopted LTFP for 2016-17 includes: • Asset Renewal and/or Replacement expenditure total $5,137k is provided

for on various asset classes: – Buildings $253k; – Recreation $30k; – Reseal $1,536k; – Resheeting $1,371; – Road Shoulders $52k; – Footpaths $148k; – CWMS $228k; and – Equipment *$1,519K; includes plant & equipment, vehicles and library books. * Not including proceeds from sale of surplus equipment $508k

Asset New and/or Upgrade expenditure total $3,180k is provided for on various asset classes: – Recreation $70k; – Transport – streetscape $80k; – Stormwater & Bridge $936k; – CWMS $1,420k includes assets rec’d free of charge; – Nuriootpa Centennial Park Authority $324k; – Discretionary spend shown in assets $350k.. .


The loan from Council to the NCPA for $650k is repaid at $65k per year starting 2015-16. Other external loans are then included for NCPA from 2014-15 to purchase cabins and other assets, these loans repayments start by NCPA from 2018-19.

The NCPA is to provide an update of the adopted business plan and ensure appropriate cash position in maintained

Moderate Growth estimates have been used but the State Govt. 30 Year plan including a proposed Concordia Development would increase the growth index, when known this will be included in the plan?

Council has previously 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.

Financial Assistance Grants is not indexed for 2014-15, 2015-16 or 2016-17 estimated loss of income $20K. It is assumed unless advised otherwise that the payments in advance will continue in future years.


Depreciation has been calculated on existing asset policy, classes, structures, valuation and condition rating

Volunteer groups (Ex Section 41 Committees) operational maintenance budgets will be moved to Works Maintenance budget control with the remaining budget in the volunteer group oversight be Admin Services. These amounts are included and indexed in future budgets in the LTFP

Volunteer Groups (Ex Section 41 Committees) processes for capital/operational submissions (New Initiatives)

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

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

No new major projects or new unapproved external loans

Draft Long Term Financial Plan Other Pressures & Priorities in this Review

Operating Costs - a review of service levels and costs will be undertaken to ensure relevance to customer needs, some functional areas already under pressure of growing demand for services.

In the 2015-16 year Financial Internal Controls must be in place and ready for audit

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 principle support for the gifting of Council owned land at Newcastle Street, Angaston, though further reviews of the land development is underway; 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 so then the future net rate income is currently overstated by $35k

Members Discussion

• Mayor Introductory Remarks. • Discussion Areas

– General Framework Discussion – Operating Programs – Capital Programs – New Initiatives

• Areas Identified Already: – New program for external not-for-profit capital

(managed under new peak advisory groups)

Members Discussion

• Summary – CEO to summarise discussions for Executive Group to formulate budget and business plan

Please note next workshop (if required) is scheduled for February 2016

AUDIT COMMITTEE


11 FEBRUARY 2016 7.1.7 MID-YEAR BUDGET REVIEW 2015-16 (AS AT 31 DECEMBER 2015) B2734 INTRODUCTION The Mid-year Budget Review for 2015-16 (as at 31 December 2015) will be presented to Council at its 16 February 2016 Council Meeting, and the budget variations contained therein will be considered for adoption. RECOMMENDATION That the Mid-year Budget Review for 2015-16 (as at 31 December 2015) be endorsed for Council consideration. 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. The proposed variances between the original budget and this budget update are listed on the operating and capital budget adjustment pages. The report also includes details of new initiatives and capital expenditure adjustments. Attachment Attachment 1: Mid-year Budget Review as at December 2015 LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN Legislation Local Government Act 1999 Sect 123 (13) Local Government (Financial Management) Regulations 2011 Regulation 9 (1)(a) Policy Budget & Business Plan and Review Policy Council Strategic Plan 4.1 – Responsibility 4.3 - Systems FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS Financial To enable Council to make effective and strategic financial decisions, a quarterly budget review report is provided. This report contains budget adjustments for decisions Council has made since the last review and other

adjustments to meet financial changes in capital and/or operational areas. The document contains comments and implications for the Long Term Financial Plan as a result of this review.

COMMUNITY CONSULTATION Community Consultation was part of the original budget adoption process in June 2015, as per legislation.

Mid‐year Budget Review 2015‐16 – as at 31 December 2015 | The Barossa Council | Page 1

Annual Budget and Business Plan 2015‐16

Mid‐year Budget ReviewAs at 31 December 2015

Budget Update Report

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 13

Statement of Comprehensive Income 14

Statement of Financial Position 15

Statement of Changes in Equity 16

Statement of Cash Flows 17

Annual Business Plan Report

Operating Result – The Barossa Council (Includes New Initiatives ‐ Operating) 18

Subsidiary Result – Nuriootpa Centennial Park Authority (NCPA) 19

Functional Reporting Operating Expenditure 20

Capital Works Program 21


Financial Statements ‐ Actual Report

Executive Summary

This report is a Mid‐year Budget Review as at 31 December 2015 for the 2015‐16 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 2015‐16 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 5‐8 within this report for further information on the note number:

(1‐6) Land Use objections higher than expected $25k (U); Rate rebates and valuation objections less than expected

$20k (F); Decrease in accommodation occupation rates at Nuriootpa Centennial Park $130k (U); Unbudgeted

income from Nuriootpa Centennial Park $20k (F); Unbudgeted grant funding $14k (F); Increased interest

income on Council’s investments $20k (F); Workers Compensation and Income Protection recoupments more

than budgeted $59k (F); MLS Distribution unbudgeted $32k (F). Net $34k (F).

(7‐10) Reduction in consulting requirements $40k (F); Increase in reactive maintenance costs $45k (U); Contribution

to Mount Pleasant Golf Club $15k (U); Reduction in Nuriootpa Centennial Park expenses due to reduced

accommodation occupancy rates $58k (F); Nuriootpa Centennial Park Authority reduction in interest

expenditure $12k (F). Net $4k (U).

(11) Additional funding required for Rex evaporative cooling solution $214k (U); Reallocation of funding to

operating to cover reactive maintenance requirements $45k (F). Net $165k (U).

(12) Mount Pleasant Main Street upgrade $40k (U); Williamstown CWMS duplication reduction in project costs $550k (F). Net $510k (F).

(13) Unbudgeted capital grant income for Stormwater Management $60k (F); Increase in proceeds from sale of

surplus assets $176k (F). Net $233k (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 2015‐16 year (these are included within the yearly budget wherever possible) but also may effect the longer term. In some cases not all information is available for these projects and 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 could potentially improve the operating result in the LTFP. Selected asset types are made of two components mainly within the transport asset class. The second component being a long life asset. Current practice in the past is not to depreciate these second components. Council's initial review and findings are that if the long life application was applied to the second component and additionally applied to asset types that have not had a long life component, depreciation may in fact be reduced in future years. A long life will be assessed, assigned and then attached to the second asset component for relevant asset types during 2015‐16.

Savings from the Regional Procurement Program to offset cost for the shared resource have been identified and will mainly apply to the 2015‐16 financial year and beyond. Improvements to process, legal compliance and efficiency of purchasing have also been identified and already applied.

An early payment was received in 2014‐15 for Federal Financial Assistance Grants Income for $531k from the 2015‐16 allocation. It is unknown if this early payment will continue in the ensuing years, at this stage no change to the 2015‐16 budget has been made in the assumption that an early will be made in June 2016 from the future year allocations.

The Nuriootpa Centennial Park Authority has undergone a review of their Forward Five Year Business Case this will increase capital expenditure and loan financing requirements in the short term with the expectation activity will be higher earlier, increasing the overall return on investment.


($'000) ($'000) ($'000) ($'000) ($'000) ($'000)

1‐6 35,075 30,878 35,390 34 35,424 35,424

7‐10 34,891 16,181 35,338 4 35,342 35,342

184 14,697 52 30 82 82

11 5,389 972 5,539 165 5,704 5,704

9 7,254 3,679 7,365 (6) 7,359 7,359

320 105 358 0 358 358

(2,185) (2,812) (2,184) 171 (2,013) (2,013)

12 4,977 283 5,911 (510) 5,401 5,401

13 1,205 1,099 1,357 57 1,414 1,414

13 0 109 451 0 451 451

3,772 (925) 4,103 (567) 3,536 3,536

(1,403) 18,434 (1,867) 426 (1,441) (1,441)

Proposed Full

Year Revised

Budget

Uniform Presentation of Financesfor the year ending 30 June 2016

The fol lowing is a high level summary of both operating and capital investment activities of the Council prepared in a uniform and consistent basis.

All Councils in South Australia voluntarily have agreed to summarise annual budgets and long term financial plans on the same basis.

*Revised Budget i s the fi rs t quarter Budget Update for the year, adopted by Counci l at the November 2015 meeting and materia l financia l information received s ince that time has been

Net Lending / (Borrowing) for Financial Year

Actuals as at 31 DecFull Year

Revised Budget

in Last Update

Original Full Year

Budget

Less Proceeds from Sale of Replaced Assets

Less Net Outlays on New and Upgraded Assets

Capital Expenditure on New and Upgraded

Assets

Less Amounts Received Specifically for New

and Upgraded Assets

Less Proceeds from Sale of Surplus Assets

Income

Less Expenses

Operating Surplus / (Deficit)

Less Net Outlays on Existing AssetsCapital Expenditure on Renewal and Replacement of

Existing Assets

Note

Current Full Year

Revised forecast

Less Depreciation, Amortisation and

Impairment

Budget

adjustments

quarter 2

The arrangement ensures that all Councils provide a common ‘core’ of financial information, which enables meaningful comparisons of each Council’s finances.

Funding Source for the movement in Net Lending / (Borrowing)Original Full year Budget Net Lending / (Borrowing)

$’000 (1,403)

Carried Forward Budget Adjustments – Report on Financial Results. Funds were held for these projects in cash and investments at 30 June 2015 (440)

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 2015; refer to information on Budget Variance Adjustments within this report .

(24)

Budget Adjustments ‐ December Mid‐year Budget Review. Funds required for these items will decrease Councils cash and investments 426

Proposed Full‐ year Revised Budget ‐ Net Lending / (Borrowing) (1,441)

*


Key Performance Indicators (KPI)

Key Performance Indicators (KPI) Original Budget 30 June 16

Revised Budget 30 June 16

Operating Surplus / (Deficit) ($’000) 184 82

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 0.20% 0.23%

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) 16,468 15,011

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

Notes A reduced net financial liability position is expected, mainly due to greater cash holdings carried forward for expenditure savings and unexpected income than the amount(s) included in the original budget.

Net Financial Liabilities Ratio 47% 42%

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

Notes Same comment as per net financial liabilities ($’000).

Interest Cover Ratio 2.7% 2.5%

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

Notes No major changes on this ratio.

Asset Sustainability Ratio* 98% 85%

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 2015‐16 year an amount of $5,096k has been used for this calculation for planned expenditure.




(Unfavourable)


Reserve $ From/(To)

Net

Operating AdjustmentsCorporate and Community Services

Addition Rate Revenue - General rates Extra rate income charged during the year for properties that became ratable post rates declaration

3,304 3,304


Reduction Rate Valuation Objections Less than expected valuation objections 7,500 7,500


Addition Land Use Objections Land Use objections higher than expected, one significant objection for a winery reduced rate income by $35,000

(25,300) (25,300)


Reduction Rate Rebate - Mandatory Rebates Less than expected mandatory rebates mainly for a church where a rebate no longer applies

3,000 3,000


Reduction Rate Rebates - Discretionary Rebates Less than expected discretionary rebates as over budgeted 9,500 9,500


Addition CWMS - Rate revenue Extra services provided for CWMS 1,382 (1,382) 0


Reduction Waste Collection - Rate Revenue Less than expected revenue for a reduction in the number of services provided (3,291) (3,291)


Reduction Recycling Collection Rate Revenue Reduction in rates for less than expected bin services provided (1,266) (1,266)

Note 1 (5,171)Nuriootpa Centennial Park Authority

Increase NCPA - Sports Centre Fees Increase in Sports Centre income to recognise not previously budgeted 10,000 10,000


Reduction NCPA - Caravan Park Site Fees Reduction in expected site fee income - September & December review by NCPA (50,000) (50,000)


Reduction NCPA - Caravan Park Permanent Site Fees Reduction in expected permanent site fee income - September & December review by NCPA

(23,251) (23,251)


Reduction NCPA - Caravan Park Cabin Fees Reduction in expected Cabin Fees due to reduced occupancy - September & December review by NCPA

(56,721) (56,721)


Increase NCPA - Caravan Park Other Income Increase in other income to recognise not previously budgeted 9,983 9,983


Addition Visitor Centre Souvenir Sales Income Better than expected product sales through more activity/visitors 8,000 8,000

Note 2 (101,989)Corporate and Community Services

Addition Heywire Youth Grant Funding income Foundation for Rural and Regional Renewal (FRRR) & Heywire Youth Innovation Grant Funding income - received - additional funding for 2015/16

9,350 9,350


Transfer Work for The Dole Program Work for the Dole Program; second program to start 22nd February 2016. Income associated with this project up until 30th June 2016

5,278 5,278


Addition Bank Interest Better than expected interest on the Councils bank investments 20,000 20,000


Reduction NCPA - Bank Interest Increase in interest income - September & December review by NCPA 1,200 1,200


Reduction Reduced Services to Blanchetown Library Reduction of service July-Dec 2015 to be paid by Mid Murray Council for Blanchetown Library, agreement ends at 31/12/2015.

(1,950) (1,950)


Addition Regional Procurement Initiative Revenue Increase Increase in expenses incurred on behalf of partner Councils in managing Regional Procurement Website which has resulted in a need to recoup expenditure and therefore increase revenue

3,144 3,144

Executive Services Addition Facet5 Addition to income through conduction Facet5 assessments for other council. 3,500 3,500

Executive Services Addition CITB Reimbursements Sought and received reimbursement from CITB for staff training. 8,400 8,400

Note 5 13,094

Budget Update 2015-16 - as at 31 December 2015 | The Barossa Council | Page 5




(Unfavourable)


Reserve $ From/(To)

Net

Executive Services Addition W/Comp Recoupments More workers compensation recoupments than budgeted. 19,925 19,925

Executive Services Addition W/Comp Recoupments More workers compensation recoupments than budgeted. 5,900 5,900


Addition Workers Compensation - rebate Better than expected rebate on workers compensation insurance 10,959 10,959

Executive Services Addition Income Protection Recoupments Income Protection Recoupments more than budget. 4,980 4,980

Executive Services Reduction Income Protection Recoupments Income Protection Recoupments more than budget. 16,700 16,700

Executive Services Addition MLS Surplus Distribution 2015 surplus distribution needs the revenue to be recognised in the Risk budget 32,397 32,397


Addition NRC Other Income Income from various projects being generated, but needs to be accounted for in the NRC (natural resource centre) budget

1,000 1,000


Transfer Land & Building Asset Revaluation Additional staff resource required to undertake a revaluation of land & sample of buildings to check for cost movements and assess the need for a full revaluation. Including Conquest and Pathway common reference for data upload

(8,700) (8,700)


Transfer Work for The Dole Program Salary expenditure component for Work for the Dole Program starting 22nd February 2016.

(4,391) (4,391)


Transfer Transfer from Salary Budget to Relief Staff Budget Corporate and Community Services Administration Assistant. The first quarter adjustment had the incorrect sign used so entry is being reversed x 2

1,136 1,136



3,974 3,974



568 568


Reduction NCPA - Staff Costs Expenditure Adjustments NCPA - Expenditure budget adjustments - September & December review by NCPA 916 916



As per Resolution 2014-18/353 at Council meeting 18 August 2015 - correct note allocation from Q1

(4,600) (4,600)

Note 7 (11,097)Corporate and Community Services

Transfer Moculta Caretaker Reallocate caretaking to cleaning 0 0


Transfer Moculta Caretaker Reallocate caretaking to cleaning 0 0


Addition Pest Control Services Cost Increases Increase required to cover cost increases in Pest Control Services (42) (42)










Reduction Pest Control Services Cost Increases Increase required to cover cost increases in Pest Control Services 138 138









(Unfavourable)


Reserve $ From/(To)

Net












Addition Pest Control Services Cost Increases Increase required covering cost increases in Pest Control Services for sentricon system

(784) (784)


Reduction Pest Control Services Cost Decrease Decrease required covering cost decreases in Pest Control Services. 488 488






















Transfer Pest control at WQVJP Transfer to cover additional pest control at WQVJP annual treatment for insects/spiders at the Pavilion at Williamstown Queen Victoria Park

0 0


Addition European Wasp Eradication Service Budget increased as per Council Resolution 7.5.2.1 on 17/11/15 to compensate for a) removal of DEWNR equalization funding; b) loss of previous contractor; and c) likely seasonal increase in reported nests predicted for 15/16.

(4,700) (4,700)


Addition Pest Control Services Cost Increases Increase required for Pest Control - CPI Increase (360) (360)


Addition Pest Control Services Cost Increases Increase required for Pest Control - CPI Increase (125) (125)




Transfer The Rex Pest Control Increase required to cover Pest Control at Rex 0 0


Transfer Pest Control at Angaston railway Increase required to cover cost increases in Pest Control Services 0 0


Transfer Little Corella Program Increase in Expenditure Increase in Expenditure - Transfer Dog & Cat Management Board Contribution to Contractors - Pest Control for Little Corella program

0 0





(Unfavourable)


Reserve $ From/(To)

Net


Addition Valley Cleaning Services Valley Cleaning Services 1.5 % increase in costs due to CPI - Nuriootpa library (190) (190)


Addition Valley Cleaning Services Valley Cleaning Services 1.5 % increase in costs due to CPI - Volunteer Room (214) (214)


Transfer Fire Equipment Servicing - Compliance Transfer to cover overspend on Fire Equipment Servicing - Compliance 0 0


Transfer Programmed Fire Equipment Servicing Transfer due to required repairs 0 0


Addition Fire Equipment Servicing - Compliance Fire Equipment Servicing - Compliance on Community Buildings - Addressing battery replacement and other required repairs for compliance

0 0


Transfer Asbestos program Unexpected costs for asbestos removal and implementation of asbestos register update

0 0


Transfer Ememrgency Septic works at Nuriootpa Pool Transfer to cover Emergency Septic works at Nuriootpa Pool 0 0


Addition Reactive Maintenance Offices Amount to cover increased reactive maintenance that has been required at the Council offices and libraries in addition to current committed orders and the current spending trend. Committed orders are effectively Standing Orders that have been created to cover those areas of maintenance. It is expected that this will be fully spent.

(25,000) (25,000)


Transfer TV Repeater station maintenance Remediation of severe fire risk 0 0


Addition Reactive Community Building Repair Reactive Community Building Repair for Building Maintenance servicess. This amount is to cover increased reactive Maintenance that has been required on Community Buildings in addition to current committed orders and the current spending trend. Committed orders are effectively Standing Orders that have been created to cover those areas of maintenance. It is expected that this will be fully spent.

(20,000) (20,000)


Transfer WQVJP - Cabin Flooring Reallocate from Direct Purchases - Other to Contractors - Building Materials 0 0


Transfer CWA Hall Hygeine services Additional load on these services due to the opening of the bike hub unbudgeted and unexpected

0 0


Transfer Talunga Park - Hygiene Transfer from Direct Purchases - Other to Contractors - Hygiene services 0 0


Transfer WQVJP - Hygiene Services Transfer from Contractors - Other Services to Contractors - Hygiene services 0 0


Transfer Corporate and Community Services Administration Assistant

Transfer to Relief Staff Budget from Salary Budget. The first quarter adjustment had the incorrect sign used so entry is being reversed x 2

(3,974) (3,974)




(1,136) (1,136)




(568) (568)


Transfer Reactive Building Security monitoring Greater than expected number of Building Security monitoring call outs 0 0


Reduction Asbestos register Transfer of funds required to fund updating of asbestos register (4,950) (4,950)


Transfer Repairs to Co-ordinator CWMS Vehicle Repairs to Co-ordinator CWMS Vehicle 0 0 0


Transfer Land services and Valuer General reports Land Services Group have changed how they charge this costing more; offset by savings from the annual property valuations budget

0 0

Executive Services Transfer Trauma Counselling Trauma Counseling session 14/10/2015. 0 0


Transfer WQVJP - Amenities upgrade Transfer from Community Assets Fund 0 0





(Unfavourable)


Reserve $ From/(To)

Net


Addition Heywire Youth Grant Funding - expenditure Foundation for Rural and Regional Renewal (FRRR) & Heywire Youth Innovation Grant Funding expenditure- 2015/16 - Contractors

(4,000) (4,000)


Transfer WQVJP - direct purchases Transfer from Contractors - Other Services to Direct Purchases - Other 0 0


Transfer Community Plan Website Expenditure Offset Transfer of Website maintenance contractor funds to internet expenses to offset expenditure on the Community Plan Website - overall a neutral budget impact

0 0


Transfer Williamstown Community Council Transfer from Contractors - Other Services to Direct Purchases - Assets <$5,000 0 0


Addition Periodic Elector Representation Review Anticipated for 16/17 budget year but timescales now permit spreading costs across 15/16 and 16/17 budget periods - mandatory requirement to complete periodically as advised by the Minister

(5,700) (5,700)


Reduction Transfer to fund public consultation process Public consultation approved by Council 30.11.15 from within existing budget allocation for pool

2,500 2,500


Transfer Reallocation of asset sale costs Increased expenditure in advertising costs - reduced commitment for other contractor costs

0 0


Transfer Land & Building Asset revaluation Additional staff resource required to undertake a revaluation of land & sample of buildings to check for cost movements and assess the need for a full revaluation. Including Conquest and Pathway common reference for data upload

8,700 8,700


Transfer Delegations Software Transfer from Contractors - Other Services to Software - Annual Licence Fees 0 0


Transfer Schoolies Bus Budget Reallocation The Safe Schoolies Bus service for 2015 was generously sponsored by Rotary Barossa. Unspent budget allocation to be redistributed to Youth Services programs.

2,100 2,100


Transfer TDU Expenditure Allocations Different Operating model has meant expenditure allocations differ to budgeted breakdown. Still within Budget. Increased to Contractors Other Services. Reductions in Contributions and Entertainment.

(10,500) (10,500)


Addition Facet5 assessments Additional Facet5 assessments for other council off set by the increase in income (3,500) (3,500)


Transfer Community Assistance grant funding Increase 15-16 allocation to provide funds for Community assistance grant application transfer from Community assets fund

0 0


Transfer Australian Water Environments - Council attendance

Council presentation - Gawler River Floodplains Management Authority budget reallocation from Planning - strategic

0 0


Reduction Consultants for SDR Level of SDR work no longer required or expected to be undertaken. 20,000 20,000


Reduction Consultants for SDR Level of SDR work no longer required or expected to be undertaken. 20,000 20,000

Executive Services Transfer Proteus Leadership PMG sessions Transfer funds for Proteus Leadership PMG sessions 0 0


Addition Regional Procurement Consulting Increased expenditure on behalf of partner councils in support of regional procurement initiative - in particular website maintenance and contract register updates - increased costs will be offset by increase in revenue and transfer of funds from legal fees natural acct.

(1,500) (1,500)


Addition Preparation of Business Plan - MP Golf Club Funds allocated by Council May 2015 not included in Budget (5,000) (5,000)


Transfer My Payroll value add ons Transfer budget from budget no longer required to enable functionality for purchased leave and LSL calculations for award and EBA purposes

0 0

Executive Services Reduction Recruitment Advertising Budget Adjustment required to increase the advertising budget for recruitment. 1,000 1,000

Executive Services Transfer Hall Hire for PMG Hire of Barossa Valley Tourist Park - Sporting Club house for PMG Sessions. 0 0





(Unfavourable)


Reserve $ From/(To)

Net



As per Resolution 2014-18/353 at Council meeting 18 August 2015 - correct note allocation from Q1

4,600 4,600


Transfer Asbestos program Unexpected costs for asbestos removal and implementation of asbestos register update

0 0


Addition Regional Procurement - Increase in Software Costs

As a result of increase in expenditure incurred on behalf of partner councils in support the regional procurement initiative - in particular software associated with data analysis and contractor/contract management, expenditure has increased. This increase is offset in full by revenue increase resulting in neutral budget impact.

(2,581) (2,581)


Transfer Pathway Smart Mobile App Consulting Transfer of Software License Purchase account funds to Software support Services to offset expenditure on Pathway Smart Mobile Apps implementation. Smart Mobile Apps approved by CMT on 16/12/2015 (TRIM 15/57157). Overall a neutral budget impact

0 0

Executive Services Transfer Tyres for work Vehicle Tyres for Manager Organisational Development work vehicle- budget reallocated from Staff Training - Accommodation to Direct Purchases - Vehicle/Machine Parts

0 0


Transfer Direct Purchases - Signs Additional budget for signage, matches BAR for reduction in Other Misc Expenses - Sundry

(300) (300)


Transfer Direct Purchases - Stationery Additional budget for stationary purchases, matches BAR to reduce Other Misc Expenses - Sundry budget for Natural Resource Centre - therefore no net budget change

(209) (209)


Transfer Tanunda Rec Park - Irrigation Transfer required as purchase unbudgeted 0 0


Transfer WQVJP - Gravel Transfer from Direct Purchases - Other to Road Materials - Screenings 0 0


Transfer SA Landcare Conference attendance Reallocate part of Direct Purchases - Other to staff training for SA Landcare Conference attendance

0 0


Transfer SA Landcare Conference attendance Reallocate part of Direct Purchases - Other to staff training for SA Landcare Conference attendance BBG Coordinator

0 0


Transfer Direct Purchases Other Reallocate from Direct Purchases - Other to Other Misc Expenses - reimbursements 0 0


Addition Heywire Youth Grant Funding Foundation for Rural and Regional Renewal (FRRR) & Heywire Youth Innovation Grant Funding expenditure- 2015/16 - Direct Purchases

(5,350) (5,350)


Transfer Williamstown Community Council Transfer from Printing to Direct Purchases - Other 0 0

Executive Services Addition Citizenship Ceremonies Additional ceremonies than budgeted for. (500) (500)

Executive Services Transfer Service Awards 2015 Budget Adjustment required to cover the costs of services awards required for staff in 2015 and any additional recognition for 2016.

0 0


Transfer Transfer of funds from YDO to YAC Barossa Extra funds required to support much larger Youth Advisory Committee in 2016. 0 0


Addition Visitor Centre souvenir sales purchases Better than expected product sales through more activity/visitors requiring stock replenishment

(6,000) (6,000)


Addition Work for The Dole Program Addition to expenditure for Work for the Dole Program starting on 22nd Feb (887) (887)


Addition Electricity - Angaston Railway not budgeted Electricity previously paid by car dealership; as site now managed by Council power costs to be paid, to be partly offset by tenants

(1,000) (1,000)


Reduction Administration Vehicle - Fuel Costs Change of vehicle resulting in better fuel economy 500 500


Addition Public Notice - Rates declaration Extra cost for public notices with the 15-16 rate declaration (109) (109)

Executive Services Addition Recruitment Advertising Addition to advertising budget to cover recruitment advertising expenses. (3,000) (3,000)





(Unfavourable)


Reserve $ From/(To)

Net


Addition community consultation - Nuriootpa Pool Mailout As per Council resolution and Agenda 30 November 2015 community consultation mailout approved re future options for the Nuriootpa Pool

(4,500) (4,500)


Reduction Rates - Overdue Notices Printing costs Reduction in printing costs - over budgeted 300 300


Reduction part funding Nuriootpa Pool community consultation

Consultation process approved by Council within existing funds 2,000 2,000


Transfer Reallocate budget training to accommodation Transfer budget from training to accommodation for expenditure to be incurred 0 0


Addition Rates overdue notices - increased postage cost Higher than expected postage costs for more overdue notices sent out so greater level of service and cost of service as Aust Post increase from 4 Jan 2016

(1,960) (1,960)


Addition Rates notices - postage cost Higher than expected cost of service from increase to postage costs for rates notices from Aust Post from 4 Jan 2016

(4,300) (4,300)


Addition Governance Advisor - Mobile devices Support for remote working arrangements (1,000) (1,000)


Transfer Reduce Nursery budget for direct purchases other Reduce Nursery budget for direct purchases - other to accommodate increase in budget for mobile phone. Links to BAR to add to mobile phone expenses.

300 300


Transfer Addition to BBG Nursery mobile phone expenses Addition to BBG Nursery mobile phone expenses. Links to BAR for reduction to Direct Purchases budget.

(300) (300)

Executive Services Reduction Contribution LGA's Budget reduction to reflect actual expenditure 1,112 1,112


Transfer TDU Allocations - Decrease Contributions Allocating to the increased Contractors other Services line (Funding SBA Working Party).

7,500 7,500


Addition Barossa Christmas Parade Additional funds approved as per resolution October 21 2015 (2,070) (2,070)


Addition Mt Pleasant Golf Club contribution Contribution approved at Council meeting 27 January 2016 - this adjustment to 30 June 2016

(15,000) (15,000)


Addition Comunity Assistance grant funding Increase 15-16 allocation to provide funds for Youth grant applications (4,000) (4,000)


Reduction Heritage Assistance Grant Expenditure was undertaken in 2014/15 for approved applications but not reduced from cost center when grant payments were made.

6,190 6,190


Reduction Regional Procurement Consultant Expenditure Offset

Transfer of funds from legal fee provision to offset increased expenditure incurred in supporting the ongoing development and maintenance of the regional procurement website. This transfer represents a neutral budget impact.

1,000 1,000


Reduction Legal Fees - reduced cost of service Reduced cost of service due to new collection agency agreement 5,000 5,000

Executive Services Reduction Recruitment Advertising Addition to advertising budget to cover recruitment advertising expenses. 2,000 2,000

Executive Services Addition Grief Support Provided grief support for those impacted by NCPA fire. (720) (720)


Transfer Top up from Schoolies Bus budget allocation Unspent budget to help with ongoing costs of delivering Youth Services programs (2,100) (2,100)


Transfer Reducing sundry budget Reducing Other Misc Expenses - Sundry to accommodate additions in stationary and signage

509 509


Transfer TDU Allocations From Entertainment to Contractors Other Services. 3,000 3,000

Executive Services Addition EM's Travel Allowance Increase travel allowance for payment for time component initially thought to be a once-off payment but which under LG regulations is an annual payment.

(340) (340)


Reduction NCPA - expenditure adjustments NCPA - Expenditure budget adjustments - September & December review by NCPA 58,549 58,549


Reduction Natural Resources Officer-MV costs Depreciation Natural Resources Officer - no longer employed by Council, therefore related vehicle costs are no longer required - depreciation - correct note allocation from Q1

(6,781) (6,781)





(Unfavourable)


Reserve $ From/(To)

Net

Note 8 (11,488)Development and Environmental Services

Reduction Natural Resources Officer-MV costs Depreciation Natural Resources Officer - no longer employed by Council, therefore related vehicle costs are no longer required - depreciation - correct note allocation from Q1

6,781 6,781

Note 9 6,781 Nuriootpa Centennial Park Authority

Reduction NCPA - Interest Charges NCPA - Loan Interest adjustment - September & December review by NCPA 11,938 11,938

Note 10 11,938

NET TOTAL - Operating Adjustments 29,757 29,757 (1,382) 28,375




Adjustment Title Reason for Budget Adjustment/Carried Forward Adjustment $ Favourable/

(Unfavourable)


Reserve $ From/(To)

Net

Capital Expenditure on Renewal and Replacement of existing assets


Reduction Funds required to update asbestos register Transfer of funds required to fund updating of asbestos register 4,950 4,950


Addition The Rex - Evaporative Cooling Installation As a result of select tender process and additional budget required to modify proposed solution across 3 stadia

(214,250) (214,250)


Transfer CWMS UTE 2 c/f 14-15 Budget adjustment c/f from 14-15 allocated to incorrect natural account. 0 0 0


Reduction Reactive Community Building Repair Transfer of funds required to fund Community Building Repair 45,000 45,000


Transfer Ute purchase Slight increase in cost 0 0


Transfer Re-sheeting Allocating budget from the overarching Re-sheet Budget to the Road Pave Assets Completed or Scheduled to be Re-sheeted. Allocations as per attached spreadsheet.

0 0


Addition Community transport vehicle changeover vehicle 1 Budget needs to be increased to meet estimated purchase costs on like for like vehicle changeover. Estimated trade in looks OK, no change required.

(500) (500)


Addition Community transport vehicle changeover vehicle 2 Budget needs to be increased to meet estimated purchase costs on like for like vehicle changeover. Estimated trade in looks OK, no change required.

(500) (500)

Note 11 (165,300) 0

NET TOTAL - Asset Renewal/Replacement Adjustments (165,300) 0 (165,300)Capital Expenditure on New and Upgraded assets


Addition Mount Pleasant Main Street Upgrade 14/15 Year Budget allocation was not carried forward in error. Thus 15/16 figure should be $80,000 same as Angaston.

(40,000) (40,000)


Transfer Allocation of Talunga Park Atrium Project Actuals Moving from Contractors to Materials and Other to reflect actual expenditure. 0 0


Reduction Williamstown CWMS Duplication Final Tender Received at reduced costs than budget 550,000 (550,000) 0

Note 12 510,000 0 Amounts received specifically for New and Upgraded

Assets/Profit & loss for asset disposalWorks and Engineering Services

Addition Donation for Atrium The GST on the $30,000 community funds raised as a donation was not in the communication to Mt Pleasant Farmers Market and therefore will result in less than expected funding towards the project

(2,727) (2,727)


Addition Profit on disposal of surplus Land Expected net result from sale of Council identified and approved surplus land 176,000 176,000


Addition Grant Funded Income External Grant Funded Income: 1/3 from Stormwater Management Authority (SMA), 1/3 from Natural Resource Management Board (NRM), and 1/3 from The Barossa Council (TBC)

60,200 60,200

Note 13 233,473 0

NET TOTAL - Asset New/Upgrade Adjustments 743,473 (550,000) 193,473 NET TOTAL - Capital Adjustments 578,173 578,173 (550,000) 28,173

Budget Update 2015-16 as at 30 September 2015 | The Barossa Council | Page 13


($'000) ($'000) ($'000) ($'000) ($'000)

1 27,242 27,177 27,242 (5) 27,237

626 421 633 0 633

2 2,667 1,054 2,732 (102) 2,630

3 2,947 1,198 3,117 14 3,131

4 213 138 213 22 235

5 514 254 525 13 538

6 866 636 928 92 1,020

0 0 0 0 0

35,075 30,878 35,390 34 35,424

7 12,222 6,249 12,271 11 12,282

8 14,265 5,919 14,552 11 14,563

9 7,254 3,679 7,365 (6) 7,359

10 1,150 334 1,150 (12) 1,138

0 0 0 0 0

34,891 16,181 35,338 4 35,342

184 14,697 52 30 82

13 (646) 67 (646) 176 (470)

13 1,205 1,099 1,357 57 1,414

0 0 0 0

743 15,863 763 263 1,026

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

743 15,863 763 263 1,026

Statement of Comprehensive Income for the year ending 30 June 2016

Original Full Year

Budget

User Charges

Grants, Subsidies and Contributions

Investment Income

Reimbursements

Other Income

Net Gain – Joint Ventures and Associates

Income

Rates

Statutory Charges

Actuals as at 31 Dec

Full Year

Revised Budget

in Last Update

Budget

adjustments

quarter 2

Proposed Full

Year Revised

BudgetNote

*Revised Budget is the first quarter Budget Update for the year, adopted by Council at the November 2015 meeting and material financial information received since that

time has been included.

Physical Resources Received Free of Charge

Total Revenues

Expenses

Employee Costs

Materials, Contracts and Other Expenses

Depreciation, Amortisation and Impairment

Finance Costs

Net Loss – Joint Ventures and Associations

Total Expenses

Operating Surplus / (Deficit)

Asset Disposal & Fair Value Adjustments

Amounts Received Specifically for New or

Upgraded Assets

Net Surplus / (Deficit)

Transferred to Equity Statement

Other Comprehensive Income

Changes in revaluation surplus ‐

infrastructure, property, plant & equipment

Total Other Comprehensive Income

Total Comprehensive Income

*


($'000) ($'000)

1,761 3,563

2,956 2,406

7 7

129 58

4,853 6,034

0 0

4,853 6,034

642 726

1,723 1,689

303,394 343,594

0 0

305,759 346,009

310,612 352,043

3,192 3,147

1,997 2,015

2,396 2,379

7,585 7,541

13,634 13,377

615 795

14,249 14,172

21,834 21,713

288,778 330,330

63,426 66,624

220,032 257,140

5,320 6,566

288,778 330,330

Proposed Full Year

Revised Budget

Statement of Financial Positionas at 30 June 2016

Assets

Original Full Year

Budget

Non‐Current Assets Held for Sale

Total Current Assets

Non‐current Assets

Financial Assets

Equity Accounted Investments in Council Businesses

Infrastructure, Property, Plant and Equipment

Current Assets

Cash and Cash Equivalents

Trade and Other Receivables

Other Financial Assets

Inventories

Subtotal

Borrowings

Provisions

Total Current Liabilities

Non‐Current Liabilities

Borrowings

Provisions

Other Non‐Current Assets

Total Non‐current Assets

Total Assets

Liabilities

Current Liabilities

Trade and Other payables

Other Reserves

Total Equity

Total Non‐current Liabilities

Total Liabilities

Net Assets

Equity

Accumulated Surplus

Asset Revaluation Reserve


Accumulated

Surplus

Asset Revaluation

Reserve

Other

Reserves

Total

Equity

($'000) ($'000) ($'000) ($'000)

63,426 220,032 5,320 288,778

65,972 250,580 6,192 322,744

1,026 1,026

0 0 0 0

0 6,560 0 6,560

0 0 0 0

(374) 0 374 0

66,624 257,140 6,566 330,330

Statement of Changes in Equityfor the year ended 30 June 2016

Transfer between reserves

Balance at the End of Period

Balance at end of previous reporting period

30 September 2015 (Original Budget 2015‐16)

Restated opening balance (2014‐15 Financia l Statements )

Net Surplus / (Deficit) for year

Other Comprehensive IncomeGain on revaluation of infrastructure, property,

plant and equipment

Transfer to accumulated surplus on sale of

infrastructure, property, plant and equipment


($'000) ($'000)

34,862 35,162

213 235

(26,485) (26,844)

(1,150) (1,138)

7,440 7,415

1,205 1,414

320 358

0 451

38 38

(5,389) (5,704)

(4,977) (5,401)

0 0

(8,803) (8,844)

297 297

0 0

2,150 2,150

(1,811) (1,811)

0 0

(2,150) (2,150)

(1,514) (1,514)

(2,877) (2,943)

4,638 6,506

1,761 3,563

Proposed Full Year

Revised Budget

Original Full Year

Budget

Statement of Cash Flowsfor the year ending 30 June 2016

Receipts

Amounts Specifically for New or Upgraded

Assets

Sale of Replaced Assets

Cash Flows from Operating Activities

Receipts

Operating Receipts

Investment Receipts

Payments

Operating payments to Suppliers and

Employees

Finance Payments

Net Cash Provided by (or Used in) Operating

Activities

Cash Flows from Investing Activities

Loans made to Community Groups

Net Cash Provided by (or Used in) Investing

Activities

Cash Flows from Financing Activities

Receipts

Loans Received

Sale of Surplus Assets

Repayments of Loans by Community Groups

Payments

Expenditure on Renewal / Replacement of

Assets

Expenditure on New / Upgraded Assets

Net Cash Provided by (or Used in) Financing

Activities

Net Increase / (Decrease) in Cash Held

Cash and Cash Equivalents at Beginning of

Period

Cash and Cash Equivalents at End of Period

Finance Lease Funds

Proceeds from Internal Borrowings

Payments

Repayments of Borrowings

Repayment of Finance Lease Liabilities

Repayment of Internal Borrowings


New Initiative Department 2015‐16 Exp $ Description/Update in italics Complete Y/N

Updating Community Land Register

CCS 7,000 Council's Community Land Register and associated Management Plans require a full review, update and conversion to software compatible with Council's property and rating systemCommenced January with a review of the Council land owned/controlled land in the property database to the Valuer General information

N

World Heritage Bid DES 15,000 Additional contribution towards Stage 1 of the World Heritage Bid (nomination for National Heritage listing) Project is progressing steadily with ongoing discussion with the State Government to support the Bid. Focus has been on establishing various advisory groups to help inform the Project Management Group’s research in order to formally lodge Stage 1 of the Bid (National Heritage Listing)

N

Feasibility study on Southern Barossa Sport & Rec sporting hub and Williamstown future use study

Executive 25,000 Project has commenced with phase 1 consultation completed . Tenders for phase 2 design and other works has closed and further internal work is being undertaken to facilitate the phase 2 works. Timeframes for completion have been extended and will depend on conclusion of preparation work to enable phase 2 to commence.

N

Redefining Community Committees - Incorporation and Insurance Costs

Section 41 7,500 Budget allocation available for 3 years for initial startup support as/when Council Committees incorporateAs at end Dec 2015 all committees have transitioned, only Angaston Community and Business Alliance have accessed fund with the following groups intending to:Mt Pleasant Business and Tourism Incorporated; Stockwell Recreation Park and Hall; Williamstown Historical Society; Tanunda Recreation Park ; Williamstown Queen Victoria Jubilee Park $9,740 (Amenities upgrade); Talunga Park - $5,900 (mower)

N

Redefining Community Committees - Initial startup cash float from reserve

Section 41 38,000 Budget allocation in the 15-16 year, to enable each transitioning Committee to fund expenditure/for operational and events from their reserve funds either $2k each or 10% of normal expensesAngaston Community and Business Alliance are the only group to have completed transition to an incorporated association. They made a further application to Council for $29,000 that was approved and processed in October 2015.

N

Redefining Community Committees - ongoing Accounting and Insurance C t

Section 41 5,000 Budget allocation for 3 years or stop when Committees reserve depletedNot accessed as yet.

N

Redefining Community Committees - Reserve Funds

Section 41 100,000 Budget allocation for 3 years request for funding to be available in budget for Committees to access Reserve funds (on transition and Council approval)Angaston Community and Business Alliance - $29,000 (Events – Melbourne cup; Christmas parade, Cultural Tourism initiatives, memorial reserve wagon, salter’s gully master plan, community long lunch, IGA wall art project, website and marketing).

N

AMG - Railway Station Master Plan

Section 41 5,000 To facilitate the preservation and renewal of the station precinct, the preparation of a Master Plan is part of the strategy.Processed to Angaston Community and Business Alliance. Work on Master Plan commencing.

Master Plan not delivered as yet, land transfer approved. No further Council actions at this stage.

Tree Maintenance and Planting Budget Increases

WES 25,000 Due to significant increase in demand for Tree Trimming and maintenance as well as emergency response needs, a targeted and proactive approach will prevent occurrence of some of the urgent work requirements.

Gawler to Tanunda Bike Path Maintenance

WES 68,000 These costs have been outlined so that the bike path can be maintained to a safe operating standard.

Annual Business Plan Report Operating Result – The Barossa Council (Excludes NCPA)

Operations


(OB)


Previous Full‐ year Revised Budget (RB)

Budget adjustments Quarter 2

Proposed Full‐year Revised

Budget (RB)

Current Full‐year Revised Forecast

$’000 $’000 $’000 $’000 $’000 $’000

Income 33,464 30,269 33,764 142 33,906 33,906

Expenditure 33,129 15,405 33,576 (77) 33,653 33,653

Capital Amounts 559 1,143 711 233 944 944

Net Surplus (Deficit) 894 16,007 899 298 1,197 1,197

New Initiatives – Operating The following table lists new initiatives approved within the operating budget, these are additional or increases to existing services or programs. All

capital new initiatives are showing in the Capital Works Program heading within this report.


Project Description

Original

Budget

Actuals at

31 Dec

Full Year

Revised Budget

(RB) in Last

Update

Budget

adjustments

Quarter 2

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000


Roadways and Kerbing ‐ carried forward from 14‐15 25 ‐ 25 ‐ 25

Camp Kitchen Refurbishment ‐ carried forward from 14‐15 10 ‐ 10 ‐ 10

Demolish Cleaners Room 3 ‐ 3 ‐ 3

Nuriootpa Centennial Park ‐ Resurface Tennis Courts ‐ ‐ 15 ‐ 15

Total Asset Renewal and Replacement Budget 38 ‐ 53 ‐ 53

Project Description

Original

Budget

Actuals at

31 Dec

Full Year

Revised Budget

(RB) in Last

Update

Budget

adjustments

Quarter 2

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000


Install 3 New Family Cabins 191 ‐ 191 ‐ 191

Demolition ‐ Cabins, Ablution Block B and Meeting Room 106 ‐ 106 ‐ 106

Multi‐Function Building 277 ‐ 277 ‐ 277

Swimming Pool and Ancil lary Equipment 153 ‐ 153 ‐ 153

Total Asset New and Upgrade Budget 727 ‐ 727 ‐ 727

Project Description

Original

Budget

Actuals at

31 Dec

Full Year

Revised Budget

(RB) in Last

Update

Budget

adjustments

Quarter 2

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000


Nuriootpa Centennial Park ‐ Resurface Tennis Courts ‐ 22 ‐ ‐ ‐

‐ 22 ‐ ‐ ‐



Capital Works Program 2015‐16




Expenditure

Subsidiary Result


Responsibilities and

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.

The projected 2015‐16 Income Statement for the Authority is included within Council’s

financial statements, contained within this document.

Operations


(OB)


Previous Full‐ year Revised Budget (RB)

Budget adjustments Quarter 2

Proposed Full‐year Revised

Budget (RB)

Current Full‐year Revised Forecast

$’000 $’000 $’000 $’000 $’000 $’000

Income 1,611 609 1,626 (108) 1,518 1,518

Expenditure 1,762 776 1,762 73 1,689 1,689

Capital Amounts ‐ 23 ‐ ‐ ‐ ‐

Net Surplus (Deficit) (151) (144) (136) (35) (171) (171)


Administration19.6%

Business Undertakings11.6%

Community Amenities2.6%

Community Support5.1%

Cultural Services2.3%

Economic Development2.8%

Environment8.5%

Health Services1.1%

Library Services4.4%

Public Order and Safety0.3%

Recreation12.5%

Regulatory Services6.8%

Transport16.7%

Waste Management5.7%

Budget Update 2015‐16 as at 31 December 2015 Operating Expenditure ($M)

35.3

Functional Reporting Operating Expenditure

The following graphs show Budget operating expenditure for the 2015‐16 year and the first Budget Update 2015‐16 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.


Divisions:

Executive Services



Works and Engineering

Project Description

Original

Budget

Actuals at

31 Dec

Full Year

Revised Budget

(RB) in Last

Update

Budget

adjustments

Quarter 2

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000

Building Assets 165 34 232 (164) 396

Nuriootpa Office Air‐conditioning 35 ‐ 35 ‐ 35

Building Renewal and Replacement 64 3 55 50 5

Tanunda Recreation Park – Minor Shed Upgrade 15 2 15 ‐ 15

Angas Recreation Park – Toilet Facil ities Renewal 10 ‐ 10 ‐ 10

Tanunda Show Hall ‐ Lighting Replacement 30 ‐ 30 ‐ 30

Curdnatta Park ‐ Kitchen Renewal 11 ‐ 11 ‐ 11

The Rex Stadia ‐ Pool Plant ‐ 29 76 (214) 290

Transport 2,907 662 2,903 ‐ 2,903

Renewal and Replacement of Existing Footpaths 300 ‐ 300 ‐ 300

Road Resealing Works 1,174 ‐ 1,170 ‐ 1,170

Road Resheeting Works 1,333 662 1,333 ‐ 1,333

Road Shoulder works 50 ‐ 50 ‐ 50

Tanunda Main Street Design Works 50 ‐ 50 ‐ 50

Bridges, Floodways and Major Culverts 42 ‐ 42 ‐ 42

Gomersal Road Bridge Repairs 42 ‐ 42 ‐ 42

Community Wastewater Management Systems (CWMS) 169 36 215 ‐ 215

Vehicle Replacements 116 36 151 ‐ 151

Operation Emergency IP and Manhole Repairs/Replacement 53 ‐ 53 ‐ 53

Springton Gravity Drain ‐ ‐ 5 ‐ 5

Penrice Gravity Drain ‐ ‐ 6 ‐ 6

Recreation Assets 842 29 842 ‐ 842

Playground Equipment Renewal 30 ‐ 30 ‐ 30

Recreation Parks ‐ Ovals 752 23 752 ‐ 752

Williamstown Queen Victoria Jubilee Park ‐ Court

Resurfacing

(subject to club grant funding approval) 45 ‐ 45 ‐ 45

Curdnatta Recreation Park – Replace BBQ 5 ‐ 5 ‐ 5

Curdnatta Park ‐ Retaining Wall 10 6 10 ‐ 10

Plant and Equipment 1,138 185 1,175 (1) 1,176

Plant, Machinery and Vehicles 575 30 575 ‐ 575

Office Vehicles 400 140 442 ‐ 442

Community Transport Vehicles 54 ‐ 54 (1) 55

Minor Plant 35 15 35 ‐ 35

Risk Management / Corporate Reporting System Funds 74 ‐ 69 ‐ 69

Library 88 26 77 ‐ 77

Materials ‐ Books ‐ Public Library Scheme 76 21 65 ‐ 65

Materials ‐ Books ‐ Local Purchase 12 5 12 ‐ 12

Total Asset Renewal and Replacement Budget 5,351 972 5,486 (165) 5,651

Capital Works Program 2015‐16

Expenditure




Project Description

Original

Budget

Actuals at

31 Dec

Full Year

Revised Budget

(RB) in Last

Update

Budget

adjustments

Quarter 2

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000

Building Assets 319 92 604 ‐ 604

Tanunda Cycle Hub (5% retention payment) 28 ‐ 28 ‐ 28

The Rex Stadia ‐ Full Phased Air Cooling Solution 227 8 227 ‐ 227

Talunga Recreation Park ‐ Kitchen Upgrade

(subject to Community funding of $28,875) 64 ‐ 64 ‐ 64

Talunga Park Atrium ‐ 68 110 ‐ 110

Talunga Park Toilets ‐ ‐ 150 ‐ 150

Barossa Bushgardens Shed ‐ 16 17 ‐ 17

Barossa Bushgardens Sales Shelter Shed ‐ ‐ 8 ‐ 8

Transport 1,161 ‐ 1,162 (40) 1,202

New and Upgrade of Footpaths 300 ‐ 300 ‐ 300

Angaston Main Street ‐ Paving, Street Bins and Furniture 80 ‐ 80 ‐ 80

Mount Pleasant Main Street Development 40 ‐ 40 (40) 80

Road Sealing Works (including extra R2R funding $328k) 628 ‐ 629 ‐ 629

Schlinkes Gully Guard Railings 50 ‐ 50 ‐ 50

Angaston Railway Precinct Upgrade 13 ‐ 13 ‐ 13

Jack Bobridge Track Cycle Connection 50 ‐ 50 ‐ 50

Bridges, Floodways and Major Culverts 80 ‐ 80 ‐ 80

Allendale Road Culvert 80 ‐ 80 ‐ 80

Community Wastewater Management Systems (CWMS) 1,298 104 1,720 550 1,170

Williamstown ‐ Rising Main Duplication 1,100 39 1,100 550 550

Nuriootpa West ‐ Gravity Mains Asset Management 75 11 75 ‐ 75

Tanunda West ‐ Gravity Mains Asset Management 75 8 75 ‐ 75

Operation Emergency Drain Repairs 38 ‐ 105 ‐ 105

Operation Construction of New IP 10 ‐ 10 ‐ 10

Mount Pleasant Gravity Drain ‐ ‐ 10 ‐ 10

Stockwell Gravity Drain ‐ ‐ 10 ‐ 10

CWMS Headworks Replacement ‐ ‐ 5 ‐ 5

CWMS Control System ‐ 3 20 ‐ 20

Tanunda ‐ CWMS Lagoons ‐ ‐ 78 ‐ 78

Stockwell Waste Water Treatment Plant ‐ 38 89 ‐ 89

Mount Pleasant Waste Water Treatment Plant ‐ 5 143 ‐ 143

Stormwater Drainage 491 27 646 ‐ 646

Upgrade Inlet Capacity 40 ‐ 40 ‐ 40

Drainage Capacity Upgrade 25 ‐ 25 ‐ 25

Mount Pleasant ‐ Phill is Street and Melrose Street ‐ New

Inlet Pits 25 ‐ 25 ‐ 25

Mount Pleasant ‐ Melrose Street to River ‐ Channel

Easement/Scour Protection 18 ‐ 18 ‐ 18

Mount Pleasant ‐ Will iam Street ‐ Underground Drainage 15 ‐ 15 ‐ 15

Mount Pleasant ‐ Tungkil lo Road/Isaac Street ‐ Channel

Easement/Scour Protection 10 ‐ 10 ‐ 10

Nuriootpa Stormwater Management Study 180 2 269 ‐ 269

Williamstown ‐ George Street ‐ Low Point Drainage Improveme 30 ‐ 30 ‐ 30

Springton Drainage 50 ‐ 50 ‐ 50

Kalbeeba Drainage 98 ‐ 98 ‐ 98

Nuriootpa ‐ Kalimna Road ‐ Road Drain ‐ ‐ 39 ‐ 39

Nuriootpa ‐ Greenock Road ‐ Road Drain ‐ 25 27 ‐ 27

Recreation Assets 864 51 908 ‐ 908

Playground Equipment Upgrade 70 7 70 ‐ 70

Recreation Parks ‐ Ovals 251 ‐ 251 ‐ 251

Tanunda Recreation Park Committee ‐ Oval Lighting Upgrade 198 ‐ 198 ‐ 198

Stockwell Oval (subject to grant funding approval) 345 ‐ 345 ‐ 345

Nuriootpa Swimming Pool Solar Heating System ‐ 44 44 ‐ 44

Plant and Equipment 37 9 64 ‐ 64

PABX Telephone Server, Headsets and Handsets 37 ‐ 37 ‐ 37

Barossa Bushgardens Irrigation ‐ ‐ 18 ‐ 18

Barossa Bushgardens Plant Stands ‐ 9 9 ‐ 9

Total Asset New and Upgrade Budget 4,250 283 5,184 510 4,674

Expenditure (Continued)


Capital Works Program 2015‐16 (Continued)



Project Description

Original

Budget

Actuals at

31 Dec

Full Year

Revised Budget

(RB) in Last

Update

Budget

adjustments

Quarter 2

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000


Vehicle Replacements ‐ Proceeds on trade‐in 58 22 75 ‐ 75

Recreation Assets 33 ‐ 33 ‐ 33

Williamstown Queen Victoria Jubilee Park ‐ Court

Resurfacing

(subject to club grant funding approval) (Operating) 33 ‐ 33 ‐ 33

Plant and Equipment 262 83 283 ‐ 283

Plant, Machinery and Vehicles ‐ Proceeds on trade‐in 35 ‐ 35 ‐ 35

Office Vehicles ‐ Proceeds on trade‐in 200 83 221 ‐ 221

Community Transport Vehicles ‐ Proceeds on trade‐in 27 ‐ 27 ‐ 27

Library 76 21 76 ‐ 76

Materials ‐ Books ‐ Public Library Scheme (Operating) 76 21 76 ‐ 76

Total Asset Renewal and Replacement Budget 429 126 467 ‐ 467

Project Description

Original

Budget

Actuals at

31 Dec

Full Year

Revised Budget

(RB) in Last

Update

Budget

adjustments

Quarter 2

Proposed Full

Year Revised

Budget (RB)

$'000 $'000 $'000 $'000 $'000

Building Assets 51 264 627 (3) 800

The Rex Stadia ‐ Full Phased Air Cooling Solution 22 30 22 ‐ 22

Talunga Recreation Park ‐ Kitchen Upgrade

(subject to Community funding of $28,875) 29 29 ‐ 29

Talunga Park Atrium ‐ 125 125 (3) 122

Land Held For Sale ‐ 109 451 ‐ 627

Transport 13 197 13 ‐ 13

New and Upgrade of Footpaths ‐ 32 ‐ ‐ ‐

Road Sealing Works (including extra R2R funding $328k) ‐ 152 ‐ ‐ ‐

Angaston Railway Precinct Upgrade 13 13 13 ‐ 13


Developer Contributions 828 714 828 ‐ 828

Stormwater Drainage ‐ 11 ‐ 60 60

Stormwater Management ‐ 11 ‐ 60 60

Recreation Assets 313 ‐ 313 ‐ 313

Tanunda Recreation Park Committee ‐ Oval Lighting Upgrade 83 83 ‐ 83

Stockwell Oval (subject to grant funding approval) 230 230 ‐ 230

Plant and Equipment ‐ ‐ 27 ‐ 27

Barossa Bushgardens Irrigation ‐ ‐ 18 ‐ 18

Barossa Bushgardens Plant Stands ‐ ‐ 9 ‐ 9

Total Asset New and Upgrade Budget 1,205 1,186 1,808 57 2,041



Grants, Contributions and Asset Sales 2015‐16




AUDIT COMMITTEE

11 FEBRUARY 2016

8.1 AUDIT COMMITTEE TRACKING

Audit Report Follow Up Action Source – date/report

Agreed Management

CO

MPL

ETE

INC

OM

PLET

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ON

GO

ING

OVE

RDUE

Comments

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. First meeting of the the Business Continuity Working Party - October 2015. Business Continuity Plan Maintenance Program Proposal received from LGRS 9 Oct 2015 New Maintenance Plan Received Jan 2016. With CEO for review

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 induction workshops commencing 15.10.14 (includes legislative; governance and organisational briefings)


Agreed Management

CO

MPL

ETE

INC

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ON

GO

ING

OVE

RDUE

Comments

Cont. Audit Meeting 11 October 2010 (8.1)

NCPA Audit Committee TORS, membership and sitting fees approved by Council. Delegations review conducted for presentation to Board Draft Financial Statements presented to committee at special audit committee meeting 9 October 2015. The updated High Level Compliance tracking document is presented for information 11/2/2015 - Refer Agenda item 6.1.5

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.

Provided through the Quarterly Risk Report.

Audit Meeting 4 December 2012 (6.1.4)

Manager Risk to provide a progress report to each meeting on Council’s Hazard Register.

Verbal to be provided All current high priority


Agreed Management

CO

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INC

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GO

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OVE

RDUE

Comments

Hazardous Tasks have been risk assessed and SWI put in place Review of the Hazard Register and associated SWI’s commenced December 2015

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 12/6/15 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.


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

Standing item on Audit Committee Agenda

Audit Meeting 29 October 2014 (7.1.4)

Internal Control Officer to provide reports about internal controls compliance

Standing item on Audit Committee Agenda


Agreed Management

CO

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OVE

RDUE

Comments

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 5/2/15 Completed Risk Management Policy adopted 17 November 2015

Audit Meeting 5 February 2015 (7.1.1)

Manager Risk to coordinate divisional Managers to present their risk profiles at future meetings

Refer Agenda item 7.1.1 5/2/2015


CEO to present the Risk Management Tolerance of Council to the October 2015 Audit Committee meeting

Completed Risk Management Policy adopted 17 November 2015


Director Corporate & Community Services to put the draft Information Communication Technology (ICT) Strategic Plan to the Audit Committee prior to adoption and to ensure that the acronym IST is spelt out in full in future reports to the Audit Committee.

Information Communication Technology Strategic Plan adopted by CMT due to the requirement to progress projects to deliver 2015/16 Budget and planning for 2016/17 Budget. Also to enable progress review of functional maturity of ICT systems via CEB membership agreement. Plan is now embedded into the Agenda of the OMG to ensure ownership of implementation across the whole organisation and to avoid duplication of meetings with same staff group Agenda item for 1.2.16 OMG


Agreed Management

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OVE

RDUE

Comments

for review of ICT Strategic Plan Priorities for 2016/17

Audit Meeting 24 June 2015 (6.2.1 and 6.2.2)

Manager Financial Services to provide feedback to Dean Newbery and Partners requesting that in future, the information contained in the Risk Matrix be captured in the body of their report for ease of understanding. Manager Financial Services to ensure that staff include completion dates and responsible officers (where appropriate) in any future responses to items raised by the Auditors.

Verbal discussion with the auditors has occurred, with the response that a colored version of the document shows the matrix rating. Noted

NOTE: Once items have been noted as complete for the purposes of the minutes they will be removed from the tracking sheet