internal control policies

8/12/2019 Internal Control Policies

1/30

Southern Mallee District Council Policy Register

Internal Control Policies and Procedures

Keywords:

Reference Numb er:

Strategic Plan:

Classi f icat ion: Public Corporate Policy

First Issued/Appro ved:

Review Frequency: Annually

Respon sible Off icer(s): Manager Corporate Services

Coun cil File Reference:

Appl icable Legis lat ion:

Relevant Policies:

Related Procedures:

Delegations:

INTERNAL CONTROL FRAMEWORK

IntroductionThe system of internal control is the plan of the organisation and all methods andprocedures adopted by management to assist in achieving Council's objective of

ensuring as far as practicable, the orderly and efficient conduct of its business.

This includes the adherence to management policies, the safeguarding of assets, theprevention and detection of fraud and error, the accuracy and completeness ofaccounting records, and the timely preparation of reliable financial information.

The system of internal control extends beyond the matters, which relate directly to thefunctions of the accounting systems, and relates to every aspect of Council'soperations.

Internal controls are policies and procedures that Council has established to providereasonable assurance that its objectives will be achieved.

These internal control policies and procedures are prepared pursuant to therequirements of Section 125 (Division 2 of Part 3) of the Local Government Act 1999.

Objective of proceduresThe objective of the procedure is to:

Ensure all activities have a clear and logical audit trail and there is acoordinated approach to procedures

Ensure the policy and Councils practices and procedures meet the highestlevel of accountability.

INDEX

1. Purchases and Payments System


2/30


Internal Control Policies and Procedures. Page 2 of 30

2. Payroll System

3. General Receipts and Debtors System

4. Rates

5. Fixed Assets

6. Stock

7. General Ledger

8. Computer System

9. Registers

10. Responsible/Authorised Officers

11. Permits

12. Controlling Authorities

13. Tenders

14. Quotationsfor Works, Services & Equipment

15. Provision of Services

16. Purchasing of Goods Services and Equipment

17. Sale or Disposal of Land and other Assets

18. Fees and Charges (not set by statute)

19. Issue of Purchasing Cards and/or Fuel Cards

INTERNAL CONTROLS

ACCOUNTING CONTROL PROCEDURES

1. PURCHASE AND PAYMENTS SYSTEM

1.1 Purchase Orders

Purchase orders are to be used for the purchase of all goods and servicesand signed by a responsible officer as designated by the Chief ExecutiveOfficer.

Purchase orders are to be pre-numbered and raised in triplicate to allowcopies to be forwarded to the accounts department (yellow) for the

committal of goods, the supplier (white) and a copy to be retained in thepurchase order book (green).

Purchase orders shall include the following details:(a) supplier's name, address and ABN (if available);(b) details of goods ordered;(c) agreed prices where available - or an estimate if firm price is not

available; and,(d) job number or general ledger code

Unused purchase order books are to be held by a responsible officer, withdetails maintained to whom purchase order books have been issued.


3/30



All personnel who have the authority to sign purchase orders are directed toinclude job numbers or description on all orders and not order any goods orservices for which there are no unexpended budget funds.

It shall not be necessary to issue an official order for -

(a) Fees or payments imposed under any Act.(b) Professional services and insurance.(c) Payments pursuant to any court order binding upon a Council.

1.2 Works Orders

Works orders are to be used for the purchase of all goods and services andsigned by a responsible officer as designated by the Chief ExecutiveOfficer.

Works orders are to be pre-numbered and raised in triplicate to allow

copies to be forwarded to the accounts department (pink), the supplier(white) and a copy to the retained in the order book (blue).

Works orders shall include the following details:(a) suppliers name, address and ABN (if available);(b) details of goods ordered;(c) agreed price where available or an estimate if firm price is not

available;(d) job number including cost centre and element type or general ledger

code.

Unused Works order books are to be held by a responsible officer, with

details maintained to whom purchase order books have been issued.

1.3 Processing Invoices

Invoices are not to be processed unless a purchase order (including alldetails as previously stated) or direct authorisation is attached and receiptof goods evidenced.

The supplier must provide Council with a tax invoice (for all invoices over$50.00) in compliance with Goods and Services taxation (GST) legislation.If GST is not applicable to the good or service supplier must supply their

ABN (Australian Business Number). An invoice without an ABN will not beprocessed unless a Statement by Supplier has been signed and receivedstating the reason for not quoting an ABN to Council.

The Chief Executive Officer shall cause all accounts for payment by Councilto be certified as to:(a) The receipt of the goods or services being in accordance with the

relevant official order.(b) The prices charged being fair and reasonable.(c) The calculations and additions being correct.

The Chief Executive Officer shall cause a record of all accounts paid to be

presented to Council.


4/30



The Manager Corporate Services shall forward with the monthly Councilagenda papers to elected members a schedule of all accounts paid for themonth

1.4 Payments by EFT and Laser Cheques

All cheques and EFTs are to be printed/written and issued in sequentialorder.

All cheques are to be crossed "Not Negotiable".

For cheques the following must be authorised by two authorisedsignatories:

Creditors to be Paid ListCheques

For EFT Payments the following must be authorised by two authorisedsignatories.

Creditors to be Paid ListEFT Payment List

1.5 Reconciliations

Suppliers statements are to be reconciled monthly to the creditors ledger;and discrepancies/reconciling items are promptly followed up by theCreditors Officer.

Creditors ledger balances are to be regularly reviewed and unusual itemssuch as debit balances are to be investigated by the Manager CorporateServices.

New credit accounts are not opened without authorisation from theManager Corporate Services.

2. PAYROLL SYSTEM

2.1 Changes in Employee Details

No employee shall be added to payroll records or paid without receipt of theappropriate forms, including employment declaration forms.

Employee history files are to be maintained for all employees. Files shouldcontain employment details and contracts, authorisations for payroll ordeduction changes, annual leave, long service leave and sick leaveentitlements.

No adjustments are made to employee records, ie, names, addresses,deduction details without receipt of written authorisation from the employee.


5/30



No adjustments are made to salary or wage rates without writtenauthorisation from the Chief Executive Officer or Manager CorporateServices.

On termination employee files are to be immediately removed from current

records and filed in past employees records. Employee payment detailsshould also be terminated in the computer system.

2.2 Time Recording

All staff are to complete a timesheet, which is signed by the employee andtheir supervisor to authorise overtime, sick leave, etc.

Outside staff are to provide daily timesheets while other staff are to providefortnightly timesheets.

All timesheets are to be marked as evidence of processing.

The Chief Executive Officer shall cause to be maintained records in respectof each officer and employee showing gross salary or wages and tax anddetails of all other deductions.

A payroll report compare gross pays to last time paid to be reviewed andsigned by Payroll Officer or Manager Corporate Services to check forunusual rates, salary amounts or employee names.

In respect of all wages paid timesheets shall be maintained recording:

(a) Hours of attendance.(b) Allocation of time worked to jobs.(c) Sick Leave.(d) Annual Leave taken.

2.3 Leave Entitlements

All employees applying for leave are to complete a Leave Application Formin advance. This form is to be authorised by the appropriate responsibleofficer and passed on to the payroll clerk.

Leave Application Forms are to be filed in the employee's history file.

Annual leave and long service leave is not to be paid without receipt of theappropriate authorised form.

Leave entitlements are to be immediately updated to reflect annual, sickand long service leave taken.

Annual leave entitlements are to be regularly reviewed by the appropriatesupervisors and arrangements made with employees with excessiveentitlements to reduce these in accordance with Council policy.

2.4 Payment

Electronic Funds Transfer


6/30



(a) Certification for receipt of wages is not required if the salaries or wagesare paid by electronic funds transfer into the employees nominatedbank account or by cheque.

(b) Where wages have been rejected and credited to Councils generaloperating bank account efforts will be made to contact the employee toarrange payment.

(c) Under special circumstances relating to financial urgency or hardship ofan employee Council delegate the Chief Executive Officer or otherresponsible officer to make a cash advance from which payments forwages earned but unpaid may be made. No such payment shallexceed the amount of wages earned and the cash advance shall bereimbursed on the next date on which wages are paid.

2.5 Payroll Tax File Numbers

The Manager Corporate and Payroll Officer Payroll are the only staff to haveaccess to employee tax file numbers, which are stored and recorded in thepayroll personnel files.

3. GENERAL RECEIPTS AND DEBTORS SYSTEM

3.1 Invoices

Ensure that forms/records are maintained detailing all works undertakenwhich require invoicing. These records should be reviewed regularly toensure prompt production of invoices, by the Payroll/Debtors Officer.

Debtor invoices are to be sequentially (by computer) numbered and issuedstrictly in order.

Standard charges are to be used when printing invoices.

Adequate records of all debtors and the transactions relating thereto shallbe kept.

Account allocations are to be made or authorised by a responsible officer.

All debtor journals raised shall be reviewed by the Manager CorporateServices on a monthly basis.

3.2 Receipts/Banking

All cheques shall be crossed "Not Negotiable" on receipt.

A computer listing of all cheques received is to be produced daily.

All moneys received by Council shall be recorded by an entry for eachindividual transaction.

The payer shall be issued with a copy of a receipt on request.


7/30



The receipt or cash receipt record shall indicate the mode of payment.

All receipts contained in receipt books or loose-leaf receipts shall be printeror machine numbered and the receipts issued in numerical sequence.

All unused receipt books and loose-leaf receipts shall be kept in thecustody of the responsible officer who shall maintain a register of such.

Receipt or receipt records contained in books or loose-leaf receipts shall beso arranged as to provide for the retention of a copy of each receipt issuedof the relevant details thereof.

The original of every cancelled receipt shall be retained.

Any reversed receipts are to be independently authorised.

Floats/cashiers' balances are to be counted daily and reconciled to receipts

listing and banking for the day. Receipts listing are to be signed by theappropriate cashier. Discrepancies are to be promptly followed up.

For cash collected off-site regular random independent checks of cashcollection to be undertaken.

Banking is to occur on a daily basis, where practicable.

3.3 Reconciliations

Debtors ledgers (rates and others) are to be reconciled monthly to the

General Ledger Control Accounts. This reconciliation is to be evidenced asreviewed by the Manager Corporate Services and a copy of adviceforwarded to the office of Councils auditor. Any discrepancies are to beimmediately investigated.

Aged debtor listings are to be regularly produced and reviewed andongoing outstanding debts followed up (note: bad debts, with respect torates, should only be written off where sale of property would not cover thevalue of the debt.

Bank reconciliation are to be prepared monthly and evidenced as reviewedby the Manager Corporate Services. Any unusual/irregular reconciling

items are to be immediately investigated.

4. RATES

4.1 Determination of Rates

Rate charges, amounts, minimum values and concessions are to be set byCouncil.

Amounts to be charged are to be gazetted.

Property values are to be downloaded directly from the disc provided by theValuer General's Department onto the Council's system.


8/30



All updates received from the Valuer General are to be promptly processedand capital values re-reconciled.

Parameters entered (ie rate/$, minimum rate, concession etc) are to beauthorised by the Manager Corporate Services. Any changes to these

parameters are to be made only by authorised persons.

4.2 Rate Notices/Generation

A reconciliation is to be performed when valuation supplementaries areupdated on the system to check that the total capital value of properties inthe Valuer Generals report (printout) equals that contained in Councilsassessment records.

Total value of rates generated is to be compared to the value as budgetedand approved by Council. Large variances should be investigated.

Sample of rate notices are to be randomly checked to ensure that:(a) correct rates have been used:(b) concessions have been correctly calculated;(c) discounts are correctly calculated;(d) name, address and rate details are correct;(e) correct valuations have been used.

5. FIXED ASSETS

5.1 Additions and Disposals

Fixed assets are only to be purchased in accordance with Council's Policy:

TendersPurchase/Sale/Disposal of Goods and Services.

On acquisition:

(a) assets are to be added to the fixed assets register;(b) useful life of the individual asset is to be estimated;(c) basis of depreciation (ie straight line or reducing balance method) is to

be decided;(d) rate of depreciation is to be calculated;(e) asset is depreciated from date first used or held ready for use;(f) above details to be documented in Asset Register;

On disposal:

(a) asset is to be depreciated to date of disposal;(b) accumulated depreciation and cost of the asset are to be written back in

the general ledger and removed from the fixed asset register;(c) profit/loss on disposal is to be calculated. This calculation should be

prepared or authorised by the Manager Corporate Services.

Depreciation:

Delegated authority has been given to the Manager Corporate Services

and Works Manager to determine the appropriate method and rates ofdepreciation to be used for Council's assets.


9/30



5.2 Classification and Capitalisation Policies

Council has set a minimum threshold for recording assets, taking intoconsideration their materiality.

Under this threshold, the cost of that item is to be expensed in the year itwas purchased or constructed.

Above this threshold, the item is to be recorded as a capital asset anddepreciated over its useful life.

Council has adopted the following thresholds:

Plant and Equipment $5000Office Furniture and Equipment $5000Land $5000

Buildings $5000Roads $5000Bridges, Footpaths $5000Stormwater Drainage $5000Other Community Assets $5000

These thresholds are to be reviewed annually.

5.3 Recording/Registers

Fixed Assets Registers are to be maintained for all assets controlled byCouncil, identifying significant asset components. (Refer to Item 8 for

details).

Wherever possible assets should be recorded as separate items in theregisters.

A physical count of all fixed assets per the fixed register is to be undertakenbi annually. All discrepancies are to be investigated and the condition ofthe assets noted.

Registers are to be regularly reviewed, noting unusual items or itemsincluded in fixed assets, which have been sold or scrapped.

Authorisation is to be obtained before any items are deleted from theregisters (due to sale or scrapping).

5.4 Year End Considerations

Fixed Assets Register should be reviewed to consider:

(a) carrying value of assets;(b) existence of assets;


10/30



(c) condition of assets:(d) relevance of current depreciation rates given the condition of the

assets;

All assets shall be revalued at least every five years.

5.5 Other

Security arrangements shall be regularly reviewed and improved wherethey have become inadequate. Arrangements shall include restrictingaccess and protection from accidental destruction, deterioration, theft orfraudulent or illegal use.

Insurance

The Chief Executive Officer with the consent of Council, is to commission arevaluation of properties for insurance purposes at least every five years

utilising qualified and experienced consultants.

6. STOCK

6.1 Stock Records

Stock records are to be kept for bulk fuel/lubricants and quarry stock raised andpurchased.

6.2 Issues and Returns

All issues of stock items are to be documented including details of items

issued, when and to which plant issued.

The Works Supervisors are responsible for preparation of fuel issue sheetsrequired.

Issues are to be monitored to ensure timely ordering of stock items and toensure items are not over-stocked, by the Works Supervisors.

6.3 Stocktakes

Annual stocktakes are to be carried out on fuel and lubricants, supplies and

quarry materials on hand, in addition fuel stocks are to be reconciled bi-monthly.

Stocktake to be carried out on the quantity and value of history books heldfor sale.

Stocktake is to be supervised by a responsible officer.

6.4 Year End Considerations

Average costing is to be applied to all Stock on hand be reviewed annuallyand should reflect average cost or replacement values in valuation.


11/30



Discrepancies are to be investigated and any adjustments to the value ofstock on hand made by appropriate journal entries.

7. GENERAL LEDGER

7.1 Journals

Journals may be raised only by Councils accounting staff and checked ona monthly basis by the Manager Corporate Services.

Sequentially numbered journals are to be used.

7.2 General

Control and clearing accounts are to be reconciled monthly, and clearingand suspense accounts are to be regularly cleared. These reconciliationsare evidenced as reviewed by the Manager Corporate Services.

Minutes of Council and Committee meetings are to be promptly preparedand distributed within five days of each meeting.

The chart of accounts is to be regularly updated to ensure correct accountallocations are made.

Budgets are to be reviewed in compliance with Local GovernmentRegulation 7, Councils and subsidiaries must reconsider budget at least 3times at intervals not less than 3 months between 30 September and 31May (both dates inclusive).

Management reports are prepared monthly and reviewed so that variancesto budget are explained and necessary action taken to rectify.

8. COMPUTER SYSTEM

The following procedures shall be adhered to for the Synergy System.

8.1 Computer Security

Each user of the system be allocated an individual login name, loginpassword and user password to gain access to the system.

User passwords limits user access to areas of the system that arenecessary only for their work areas. E.g. Payroll, maintenance systems etcare not available to most users.

Maintenance of user login names and passwords are under the control ofthe Manager Corporate Services.

Management of the Synergy System is under the control of the ManagerCorporate Services.

8.2 Backups


12/30



Full backups of all data processing to be conducted every night. Portablehard drives to be rotated on daily, weekly and monthly basis.

Portable hard drives be kept in the strong room with a weekly backup(normally scheduled for a Thursday) to be transferred between both Council

offices so a back up of no longer than one week old is retained off site.

9. REGISTERS

The following Registers to be maintained:

9.1 Leased Road Reserves RegisterTo record for each lease:1. Lessee - name and address2. Date of lease3. Details of annual rental4. Particulars of lease

5. Area leased6. Remarks7. Minute book reference

9.2 Register Of Accountable Documents Including Order Books Receipts,Receipt Book, Licences And InvoicesTo record:1. Date of receipt of stationery2. Number received3. Serial numbers4. To whom issued5. Authority for issue

6. Signature of person to whom issued7. Record of return.

9.3 Personnel RecordsTo record:1. Name and address of employee2. Date of birth3. Date of commencement of employment4. Date of cessation of employment5. Award classification6. Next of kin7. Qualifications8. Training courses undertaken9. Previous employment with Local Government authorities

(a) Council(b) Date commenced(c) Date terminated(d) Amount due from previous employee(e) Entitlements transferred from previous employer

10. Subsequent employment with Local Government authorities(a) Amount due to subsequent employer(b) Amount paid(c) Date paid

(d) Balance due(e) Date paid11. Recreation and Special Leave Record


13/30



(a) Leave entitlement(b) Leave taken(c) Balance period(d) Remarks

12. Sick Leave Record(a) Leave entitlement(b) Leave taken(c) Balance period(d) Remarks13. Long Service Leave Record(a) Leave entitlement(b) Leave taken(c) Balance period(d) Remarks(e) Amount due from previous Council-employers(f) Council(g) Amount due

(h) When paid.

9.4 MoietiesTo record:1. Name of street2. Details of work3. Cost of work per metre

(a) Roadworks(b) Drainage works(c) Watertables(d) Kerbing(e) Footways

4. Date work commenced5. Date work completed6. Date of notice to owner requiring payment7. Recoveries of previous costs from owners

(a) Date(b) Total amount recovered from owner(c) Amount per metre recovered from owner

8. Details of work declared by Council to be work, which is satisfied, iswork other than that of a permanent nature (Section 319 (7)).

9.5 Debentures Issued RegisterTo record for each debenture issued by Council:

1. Series and number of debenture2. Date of issue3. Name of entity/person issued to4. Amount of principal5. Rate of interest6. Security for loan (state whether general rate or special rate and

particulars thereof)

If loan is repayable by periodical instalments of principal and interest:7. Amount of half-yearly instalments8. Date of payment of half-yearly instalments9. Principal outstanding at beginning of each half-year

10. Portion of half-yearly instalment applied to interest11. Portion of half-yearly instalment applied to principal


14/30



12. Dates of payment of principal13. Dates of payment of interest.

9.6 Land and Buildings and Leases Register1. Location of property2. Description of property and improvements3. Title deed reference4. Vendor - name and address5. Date of purchases6. Purchase price7. Date of details of improvements8. Value of improvements9. Date of revaluations10. Details of revaluations11. Book value at end of each financial year12. Sale proceeds13. Annual depreciation

14. Depreciation method15. Surplus/deficit on disposal16. Date of disposal17. Date of lease18. Lessee - name and address19. Term of lease20. Rental details21. Date of expiry of lease22. Remarks on lease clauses23. Status of land.

9.7 Plant and Machinery Register

To record for each item of plant and machinery for which a hire rate is charged.1. Description2. Purchase price (gross)3. Asset value as per general ledger4. Annual depreciation5. Book value at end of each financial year6. Depreciation method7. Sale proceeds8. Surplus/deficit on disposal9. Asset number

9.8 Office Furniture and Equipment Register

To record for each asset or for each type of asset:1. Description2. Purchase price (gross)3. Asset value as per general ledger4. Annual depreciation5. Book value at end of each financial year6. Depreciation method7. Sale proceeds8. Surplus/deficit on disposal9. Date of disposal10. Location of asset11. Asset number12. Serial numbers of computer equipment


15/30



9.9 Licences Issued RegisterTo record for each type of licence:1. Licensee2. Date of issue3. Term of licence4. Licence fee5. Particulars of licence6. Remarks7. Minute book reference (if applicable).

9.10 Register Of Deferred DebtorsTo record each long term debtor detail:1. Description2. Original debt to Council3. Term of debt4. Interest charged5. Payment amount

6. Payment records

9.11 Infrastructure Register1. Location of property2. Description of property and improvements3. Title deed reference4. Vendor - name and address5. Date of purchases6. Purchase price7. Date of details of improvements8. Value of improvements9. Date of revaluations

10. Details of revaluations11. Book value at end of each financial year12. Sale proceeds13. Annual depreciation14. Depreciation method15. Surplus/deficit on disposal16. Date of disposal17. Date of lease18. Lessee - name and address19. Term of lease20. Rental details21. Date of expiry of lease

22. Remarks on lease clauses23. Status of land.

9.12 Land Held For Resale Register1. Location of property2. Description of property and improvements3. Title deed reference4. Vendor - name and address5. Date of purchases6. Purchase price7. Date of details of improvements8. Value of improvements9. Date of revaluations10. Details of revaluations


16/30



11. Book value at end of each financial year12. Sale proceeds13. Surplus/deficit on disposal14. Date of disposal15. Date of lease16. Lessee - name and address17. Term of lease18. Rental details19. Date of expiry of lease20. Remarks on lease clauses21. Status of land.

9.13 Guarantors Register1. Body guaranteed2. Guarantee held by3. Original value4. Term/repayment schedule

5. Description6. Present current value

9.14 Petty Cash

Cash payments may be made out of a petty cash account established byCouncil, and held by the Councils administration officers of each CouncilOffice and Councils Child Care Manager/staff.

A cash payment cannot, in respect of any particular docket or voucher,exceed $100.

Petty cash transactions shall be recorded and supported by dockets orvouchers and signed by the appropriate authorised officer beforereimbursement is made. Petty cash shall not be utilised for I owe yous.

Each transaction is to indicate the specific nature of the expenditure.

9.15 Safe - Storage

The following items shall be kept within the safe storage room of the Counciloffices:

Original copies of all leases, debentures, contracts and agreements.

C/Titles of properties owned by Council.

All cash not banked from cash register, petty cash and unclaimed wages.

Original copies of timesheets and documents, for period of twelve months.

Unused purchase order books, vouchers and cheques.

Minute books of Council.

Original copies of all computer applications and programs.


17/30



Daily portable hard drives for main Computer system, PC network system(disks are to be reused after a week with the exception of Thursdaysdisk/tape to be rotated every 4 weeks).

Keys to the safe storage rooms are restricted to the Chief Executive Officer,Manager Corporate Services, Executive Assistant and Administration Officers.

10. RESPONSIBLE AND AUTHORISED PERSONS

10.1.1 Purchase Orders - Signing of OrdersLimit

- Chief Executive Officer -- Manager Corporate Services -- Works Manager -- Manager Environmental & Planning -- Works Supervisors $20,000

- Mechanic $20,000- Executive Assistant $5,000- Payroll, Creditors, Rates, Reception, Assets & OHS officers $5,000- Fire Prevention Officer $5,000

Those persons acting in any of the above positionsHolding of unused purchase order books- Administration Officers.

10.1.2 Works OrdersSigning of OrdersLimit

- Chief Executive Officer -

- Manager Corporate Services -- Works Manager -- Manager Environmental & Planning -- Works Supervisors $20,000- Mechanic $20,000- Executive Assistant $5,000- Payroll, Creditors, Rates, Reception & Assets & OHS officers $5,000- Fire Prevention Officer $5,000

10.2 Cheque Payments, EFT Payments - Signing of Cheques(any two of the following officers)- Chief Executive Officer

- ManagerCorporate Services- Works Manager- Payroll or Creditors Officer- Any councillor

10.3 Reconciliations Creditors Control Account to General Ledger- Creditors Officer- Manager Corporate Services

New Creditors Account- Manager Corporate Services- Creditors Officer


18/30



10.4 Adjustments to Employees Salary/Wage Rates- Chief Executive Officer- Manager Corporate Services

10.5 Review of Payroll reports and certification- Manager Corporate Services

10.6 Leave Application Forms- Chief Executive Officer- Manager Corporate Services- Works Manager- Manager Environmental & Planning- Child Care Manager

10.7 Regular Debtorsreview all invoices as required

- Payroll Officer

Account Allocations- Creditors Officer

Private Works- Works Manager- Payroll Officer

Hire Rates- Manager Corporate Services- Works Manager

Review Debtor Journals- Manager Corporate Services

10.8 Cash Receiptingfront counter- Administration officers

Cheque Receipting Through Mail System- Administration officers

10.9 Debtors Reconciliation Control a/c to General Ledger- Creditors/Payroll officers

- Manager Corporate Services

New Debtor a/c- Payroll Officer

Bank Reconciliations- Creditors Officer

10.10 Rates parameters authorisation (any one of the following officers)- Chief Executive Officer- Manager Corporate Services

10.10.1 Parameter Changes- Rates Officer


19/30



10.11 Rates Reconciliation- Manager Corporate Services- Rates Officer

10.12 Checking Rate Notices- Rates Officer

10.13 Reconciliation Fixed Asset Register- Manager Corporate Services- Creditors Officer- Assets Officer

Authorisation to Delete Assets- Manager Corporate Services

10.14 Stocktakes

Supervision By- Manager Corporate Services- Works Manager

10.15 Journal Authorisation

General Ledger- Manager Corporate Services- Payroll, Assets and Creditors officers

Rates- Manager Corporate Services

- Rates Officer

10.16 Minutes maintaining files of minutes books/ensure they are signed- Executive Assistant

10.17 Investments Repayments/Drawdownswith Financial Institutions(any two of the following officers)- Chief Executive Officer- Manager Corporate and Community Services- Payroll and Creditors officers

10.18 Petty CashAuthorised Officers

- Administration officers- Child Care staff

10.19 Registration of Dogs- Administration officers

10.20 Property Searches- Chief Executive Officer- Manager Corporate Services.

10.21 Receiving Goods and Checking off Order- Originator of Order


20/30



10.22 Access to Administrator System

10.22.1 Full System Access- Manager Corporate Services- Creditors or Payroll officer

10.22.2 Full Access to Payroll- Payroll Officer- Manager Corporate Services

10.22.3 Payroll Timecard Entry- Payroll officer- Manager Corporate Services

10.22.4 Full Creditor Access- Creditors Officer- Manager Corporate Services

10.22.5 Full Debtor Access- Payroll Officer- Manager Corporate Services

10.22.6 Full Rates/Property Access- Rates Officer- Manager Corporate Services

10.22.7 Full Development Access- Development Support Officer- Manager Environment & Planning

10.22.8 Financial Modelling Access- Manager Corporate Services- Chief Executive Officer- Rates Officer

10.22.9 Building System- Development Support Officer- Manager Environment & Planning

10.22.10 Stores System- Creditors officer

- Rates Office

10.22.11 Dog Control- Full access by all users

10.22.12 Cemeteries- Full access by all users

10.22.13 Assets System Access- Manager Corporate Services- Creditors or Payroll officer

No users, other than listed above, have any access to the payroll module(including enquiries).


21/30



Other than listed above, access to all maintenance areas is barred to all otherusers.

Access to enquiries, reports, listings etc is available to all users.

Access to all modules that are not being used is available to all users.

11 PERMITS

11.1 Removal of Timber from Roadsides (Sec 374) Permit- Chief Executive Officer- Works Manager- ManagerEnvironment & Planning- Executive Assistant

11.2 Hall Hire Permit- Chief Executive Officer

- Manager Corporate Services- OH & S Officer- Executive Assistant

11.3 Street Stall/Raffle Permit- Chief Executive Officer- Manager Corporate Services- OH & S Officer- Executive Assistant

11.4 Special Event Permit- Chief Executive Officer

- Manager Corporate Services- OH & S Officer- Executive Assistant

11.5 Overweight/Size Vehicle Permit- Chief Executive Officer- Works Manager

11.6 Cutting of/Storage hay on roadsides- Chief Executive Officer- Manager Environmental & Planning- Works Manager

11.7 Notices- Chief Executive Officer- Manager Corporate Services- Works Manager- Manager Environmental & Planning- Child Care Manager

12. SUBSIDIARIES

12.1 Audit to CouncilAudited financial accounts of subsidiariesSection 42 be submitted to Councilby 30 September each year; other than those whose accounts are managedthrough Councils Accounting System (Section 41 Committees).


22/30



13. TENDERSCALLING OFTenders shall be invited where the cost (or net cost after trade-in allowances) is

likely to exceed $30,000.

13.1 Tenders invitation, receipt and evaluation procedures

13.1.1 General

Tendering can be initiated by one of the three basis tenderingprocedures:

- Public Tenders All interested parties are invited through openpublic advertisement to tender on a common basis;

- Selected Competitive Tenders A limited number oforganisations are directly selected because of their provenexperience or recognised ability to undertake particular work.Tenders will be on a common basis

- Negotiated TendersA firm tender is arrived at by negotiation witha limited number of organisations.

- State Government Tenders Where appropriate Council maywish to utilise the State Government Tender process for majorconstruction or works

13.1.2 Invitation of Tenders

1 Public Advertisement- Consistency in advertising should apply;- There should be a set day for advertising and set day for

closing of tenders;- The tender closing time may be 2.00 pm on a week day but

not on the day following a weekend or a public holiday;- Advertisements shall show:

An adequate description to allow tenderers to judge theirinterest

Centres where tender documents are available Place of lodgement and closing date and time

- Advertisements should be inserted in the most appropriatepapers.

2 Selected Competitive Tenders and Negotiated Tenders- Selected competitive and negotiated tenders are invited

when it is impractical to invite public tenders;- Where public tenders have been invited and no tender has

been received or any tender received is not acceptable,selected or negotiated tenders may be invited.

3 Pre-Registration of Tenderers


23/30



The objective of pre-registration is to pre-qualify tenderers inrespect of their capacity and ability to undertake Works and soreduce the time taken for investigation after tenders haveclosed.

Pre-registration should only be used when it can bedemonstrated that it has advantages to the Council over theinvitation of public tenders.

Advance notice can lead to a shortening of the tendering period.

Because registrations may be construed as an understanding toaccept a tender from the lowest tenderer it is essential thatinvestigation of applicants be thorough.

Any registered firm which subsequently submits the lowesttender should be able to be confidently recommended for

acceptance unless the circumstances, under which the firm wasregistered, have changed substantially.

Those firms regarded as unsuitable for registration must beinformed accordingly, with reasons.

When tender documents are ready, tenderers who have beenregistered should be invited in writing to tender.

4 Tendering PeriodThe tender period must allow for the urgency of the work, withsufficient time for tenderers to visit the site, to study the tender

documents, and prepare an offer.

5 Clarification of Documents During the Tender PeriodRequests for clarification shall be referred to a single officernominated in the tender documents.

Where considered necessary, all explanations and/orclarifications given should be confirmed in writing and issued toall prospective tenderers to ensure that all tenders submittedare on a common basis.

6 Pre-tender Meetings

Pre-tender meetings may be called. The objective is to clarifyintent and any uncertainties that tenderers may have relatingto the tender documents.

7 Extension of Tendering PeriodIt is essential all tenderers who obtained documents arenotified of any extension to the tendering period.

8 Highest or Lowest TenderAll tender documents shall include the following statementNEITHER THE HIGHEST NOR THE LOWEST TENDERWILL BE NECESSARILY ACCEPTED.

13.1.3 Receipt of Tenders


24/30



1 Lodgement of TendersTenders must be lodged at the Council Office listed in thetender documents. Tenders should be accepted up to 2.00 pmlocal time on the closing date.

The tender box is to be locked with the keys held byresponsible Officers.

Where it is not possible to place all tenders and supportingpages in the tender box, special and secured storage facilities,will be provided in advance of the tender closing date. Tenderpapers not placed in the tender box, shall be endorsed by thereceiving Officer with details of receipt and placed in thesecured storage.

The organisations electronic media shall be attended beforethe time at which tenders close. The media shall be stamped

with the time of receipt. Where a price received by electronicmedia through official Australia Post services differs form theprice submitted on the tender form, the former price will prevailunless it can be established that the Postal Authority made anerror in transmission. Tenders received through the post mustbe endorsed with the exact time of receipt.

When envelopes containing tenders have been opened due tolack of identification, they should be immediately resealed, theenvelope suitably endorsed and referred to the ResponsibleOfficer.

At 2.00 pm on the tender closing date, the tender box shall beclosed to prevent lodgements of late tenders in the box. Notender price offered orally will be accepted.

2 Tender Opening ProcedurePursuant to councils Statutory Resolutions and the provisionscontained in the Local government Accounting Regulations thefollowing are authorised to open any formal tenders receivedafter the appointed closing date:

Chief Executive OfficerManager Corporate Services

Works ManagerManager Environment & Planning

In all instances any two of the above authorised persons ortheir nominees, must be in attendance when opening anytenders received and shall sign an endorsement to theschedule of the tenders received including the time of openingof the respective tenders and shall submit a report andrecommendations to the appropriate Standing Committee orCouncil meeting.(Refer to Local Government Accounting Regulations 14)

3 Late TendersA tender received after the nominated closing time that is:


25/30



- Delivered by hand over the counter;- Delivered by electronic media;- Received through the mail.

Shall be deemed late and shall be endorsed with the exacttime of receipt. A person presenting a tender over the countershall be asked to initial the endorsement.

A late tender is to be opened and scheduled and the scheduleendorsed with the time and circumstances of receipt. Theenvelope enclosing a late tender is to be attached to thetender.

A late tender delivered by hand over the counter shall not beadmitted.

A late tender submitted through official Australia Post servicesor electronic media will not be admitted unless it can be clearlyestablished to the satisfaction of the Opening Committee thatthey were posted or transmitted before the date and time forclosing tenders and in the advertisement or other invitation forsubmission of tenders by that date and time. No other form oftransmission will be considered for tenders received after thedate and time for closing tenders.

As the time required for delivery or transmittal variessignificantly between different points of dispatch and delivery,the onus is on the tenderer to ascertain what is sufficient time

in the particular circumstances for the service selected.

Franking machine impressions are not acceptable evidence oftimely posting or dispatch nor are the times indicated onelectronic media transmitted through private channels.

A tenderer whose tender is rejected as being late must beadvised promptly.

Adequately safeguards should be used to ensure thepreservation of the confidentiality of tenders which arereceived late and are not admitted for consideration.

13.1.4 Evaluation of Tenders

1 QualificationsFormality of TenderA tender which does not comply with the tender documents isliable to be rejected. The tenderer may be given reasonableopportunity to comply with the tender documents but onlywithout alterations to the submitted tender price.

Where a tenderer claims an error has been made in calculatingthe tender or has omitted to include a provisional sum thetenderer shall not be permitted to amend the tender price.


26/30



In such situations, the tenderer has the options of adhering toor withdrawing the tender price, or being passed over.

2 Alternative OffersAlternative offers are not considered unless provided for in thedocuments.

Where an alternative is offered by a tenderer, that alternativecannot be priced by any other tenderer.

3 NegotiationsThere are occasions where negotiation of a tendered pricemay have to be considered before a tender is accepted, e.gsignificant errors and omissions in documents, insufficientfunds to cover tenders received.

In such instances negotiations of a price for the amendments

to the tender documents will be concluded prior to acceptancewith the lowest acceptable tenderer only, notwithstanding thatthe estimate or the price received for the amendment whenadded to the lowest acceptable tender may exceed othertenders.

If the value of the amendment in relation to the tender price issignificant and a satisfactory price cannot be negotiated withthe lowest acceptable tenderer, it may be necessary to recalltenders.

4 Equal Tenders

Where two or more tenders are acceptable and the prices areidentical, preference will be given to the tender opened first,subject to consideration of EVALUATION OF TENDERERS(See (5) below).

5 Evaluation of TenderersEvaluation should consider tenderers:- Technical, management, physical and financial capacity- Current commitments- Standing within the Industry- Record of Performance- Ability to perform the Works

6 Re- TenderingRe-tendering should be avoided unless the tender documentshave been amended or a substantial period of time haselapsed since tenders were initially invited.

Should it be decided following public tenders to recall tenderson a selected basis, opportunity should be given to eachoriginal tenderer to submit a price unless there are goodreasons for not doing so.

7 SecurityAdequate safeguards must apply to ensure the confidentialityof tenders.


27/30



8 ConfidentialityThe Council or Standing Committee may consider tenders inaccordance with Section 90 of the Local Government Act.

13.2 Tender Consideration

All tenders are to be submitted to a Standing Committee or Council forconsideration.

The appropriate officer shall prepare a report on the tenders received andshall make a recommendation as to the tender to be accepted.

All unsuccessful tenders are to the notified of the decision of Council.

14 QUOTATIONS FOR WORKS, SERVICES AND EQUIPMENT

The procedure to be followed in the calling, receipt and consideration ofquotations to be as follows:

(a) Quotations may be invited where the cost (or net cost after any trade-in allowances) is likely to be between $2,000 and $20,000.

Tenders in lieu of quotations may be called at the discretion of theChief Executive Officer.

(b) Quotations are to be obtained (from at least two local suppliers ordistributors where possible) for purchasing supplies for works,services and equipment.

Tenders are to be called where the cost (or net cost after trade-inallowance) is likely to exceed $50,000 Refer Policy 26Tendersfor policy details on tenders and procedures.

(c) The Chief Executive Officer or nominated person may negotiate withall those involved in the quotation process and purchase any singleitem by way of a quotation provided;

- The net cost does not exceed $50,000- And- Such work service and or equipment is within budget

- Or- The cost (or net cost after any trade-in allowances) does not

exceed the adopted (or varied) Budget by more than 10%.

(d) A written record shall be kept of all quotations received, and it thelowest price was not accepted, the relevant reasons shall be stated.

(e) It is not necessarily a requirement of this policy that public notificationbe given for the inviting of quotations.

15. PROVISION OF SERVICES


28/30



A Key Goal of Council aims for continuous improvement in the efficient andcost-effective delivery of services through the incorporation of modernmanagement practices.

Policy Statement

Council will provide quality services that meet customer needs by utilisingresources (physical, financial and human) efficiently and effectively.

Principles

In accordance with this policy the following principles will be adopted indetermining core and non-core services which are to be used as a basis indetermining the most appropriate method of delivering Council services.

Strategic and corporate planning goals and objectives are to be met Services are to be provided at minimal risk to Council

Services are to be provided within Councils existing resource levels There is to be no negative effect on disadvantaged groups All statutory obligations are to be met There must be sufficient competitors in the market place Councils ability to respond to emergency services must not be put at

risk Councils service providers may compete externally for work as long

as Council and Councils services are not at risk.

16 PURCHASING OF GOODS SERVICES AND EQUIPMENT

16.1 Value Under $2,000Best price to be obtained, taking into account quality of goods and services,delivery time, past experience, freight costs involved, urgency of delivery etc.To be authorised by Purchasing Officer.

16.2 Value Over $2,000 less than $30,000At least two quotations or tenders to be obtained, purchase form to becompleted and kept on file as per Quotation Policy No. 26.Supplier to be selected as per 1 above.Purchase to be authorised by department Manager.

16.3 Value Over $30,000

Tenders to be obtained as per Tender Policy No. 26.Where possible at least two tenders to be received.Tenders to be authorised by Council.Tenders to be retained on file.

16.4 Approved BudgetAll goods and services ordered must be within budget parameters for thatDepartment.

16.5 Stock LevelsStock supplies should be kept to reasonable levels based on past usage.

16.6 Local Providers


29/30



Local providers of goods and services will be given preference wherepracticable and competitive with other providers.

17 SALE OR DISPOSAL OF LAND OR OTHER ASSETS

17.1 LandIn sale or disposal of land, Council will comply with the community landsprovisions of Chapter 11 of the Local Government Act 1999.

In negotiating sale of land above the value of $20,000, Council shall havereference to an independent valuation of the land.

Where Council initiates sale of land which is surplus to its requirements toparties other than the adjoining owner, it shall normally publicly list the landfor sale at a price determined by Council with reference to an independent

valuation with one or more local real estate agents.

17.2 Other AssetsIn the case of other assets including plant and equipment;

17.2.1 Under $2,000May negotiate best price with interested parties.

17.2.2 $2,000 - $5,000Advertise locally for tenders or sale at price fixed byresponsible manager based on asset value.

17.2.3 Above $5,000advertise for sale by tender.

18. FEES AND CHARGES (not set by statute)

A schedule of fees and charges shall be prepared by the Manager CorporateServices in liaison with other Council Managers.

The schedule shall include, but not be restricted to, such items as gate feespublic waste facilities, swimming pool fees, moiety fees, lease of road reservefees and cemetery burial fees.

19. ISSUE OF PURCHASING CARDS AND/OR FUEL CARDS

The Chief Executive Officer may make available purchasing cards to CouncilManagers, Council Mechanic and Works Supervisor

Council Managers with approval of the Chief Executive Officer may issue fuelcards to Council staff.

- Register:A register of purchasing cards and/or fuel cards issued will be maintained byCouncils Manager Corporate Services and a copy of this authority is to beprovided to the Chief Executive Officer.

- Agreement by Staff:

I ___________________________ , hereby agree to adhere to the following(Full name)


30/30


conditions in the use of the Councils purchasing and/or fuel card (whichever isappropriate) issued to me;

1. To only use the purchasing card and/or fuel card for the Council authorizedpurchases under my responsibility.

2. To only use the fuel card in this vehicle(s) for authorised Council use and travelas required in the course of my duties unless otherwise varied in terms of thisagreement (section 3) or as authorised by my Manager.

3. Special Conditions ______________________________________________

________________________________________________________________

________________________________________________________________

Signed ____________________________

Dated ___/___/___

Authorised by ______________________Manager

ADOPTED: 13thOctober 2010

NEXT REVIEW DATE: October 2012

AMENDED: 13thOctober 2010

Certified Copy by Chief Executive Officer or approved Delegate

SIGNATURE: .... DATE: ././.