notice of audit committee meeting · • draft long term financial plan 2018/19 • regional...

Audit Committee Agenda 18 February 2019

Notice of Audit Committee Meeting

NOTICE IS HEREBY GIVEN in accordance with Section 87 of the Local Government Act 1999, that a meeting of the

AUDIT COMMITTEE

of the

CITY OF BURNSIDE

will be held in the Council Chamber 401 Greenhill Road, Tusmore

on

Monday 18 February 2019 at 6.00 pm

Paul Deb Chief Executive Officer

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Audit Committee Agenda

18 February 2019 at 6.00 pm Council Chamber

401 Greenhill Road, Tusmore

Members: Mr David Powell - Chair (Independent) Mayor Anne Monceaux Councillor Henschke Mr Roberto Bria (Independent) Mr Stephen Coates (Independent)

Guests:

p5

p9

1. Apologies

Nil

2. Leave of Absence

Nil

3. Confirmation of Minutes

Recommendation

That the attached Minutes of the Audit Committee meeting held on 15

October 2018 be taken as read and confirmed.

4. Action List Review and Policy Tracking Table (For Noting)

5. Reports of Officers

5.1 Audit Actions Update p31 Attachment A Attachment B

5.2 Audit Committee Self-Assessment and Terms of Reference Update p57

Attachment A Attachment B Attachment C

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5.3 Review of the Internal Audit Plan p89 Attachment A Attachment B

5.4 Mid Year 2018/19 Budget Update p115 Attachments A – H

5.5 Risk Evaluation Report 2018 and 2019 Work Health and Safety and Return To Work Plan p129 Attachment A Attachment B

5.6 Updated Risk Management Framework p199 Attachment A

5.7 ERA Water (Standing Item) Nil reports

6. Confidential Items

Nil

7. Other Business

7.1 Forward Program p233

8. Date of Next Meeting

Recommendation

That the Audit Committee convenes on the 15 April 2019.

9. Closure

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Audit Committee Minutes 15 October 2018

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Audit Committee Minutes

15 October 2018 at 6.00 pm

Council Chamber 401 Greenhill Road, Tusmore

Members Present: Mr David Powell – Chair (Independent) Mayor David Parkin Mr Roberto Bria (Independent) Mr Stephen Coates (Independent)

Staff Present: Martin Cooper, General Manager Corporate and Development John Jovicevic, Partner, Dean Newbery and Partners was in attendance. The Chair welcomed Stephen Coates as the new Independent Member and thanked and acknowledged Sean Tu for his service to this Committee. The Chair also thanked and acknowledged Mayor Parkin and Councillor Davis for their service to this Committee. Apologies Councillor Davis Leave of Absence Nil Confirmation of Minutes Motion A4127 That the attached Minutes of the Audit Committee meeting held on 20 August 2018 be taken as read and confirmed. Moved Roberto Bria, Seconded Mayor Parkin CARRIED

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Action List Review Noted Reports of Officers Independence of Council Auditor (Operational) (5.2) Motion A4128 1. That the Report be received.

2. That the Audit Committee endorse the Presiding Member of the Audit Committee, together with the Chief Executive Officer, to authorise the Certification of Auditor Independence to be included with the Annual Financial Statements for the year ended 30 June 2018.

Moved Roberto Bria, Seconded Stephen Coates CARRIED 2017/18 Draft Annual Report (Strategic) (5.3) Motion A4129 1. That the Report be received.

2. That following the addition of any amendments identified by Audit Committee Members or the Administration, the draft City of Burnside 2017/18 Annual Report be submitted to Council at the 23 October 2018 meeting for consideration and adoption.

Moved Mayor Parkin, Seconded Roberto Bria CARRIED 2019/20 Annual Business Plan and Budget Timetable (Operational) (5.1) Motion A4130 1. That the Report be received.

2. That the Audit Committee endorse the proposed 2019/20 Annual Business Plan and Long Term Financial Plan timetable.

3. That the proposed 2019/20 Annual Business Plan and Long Term Financial Plan timetable be presented at the 23 October 2018 Council meeting for consideration and adoption.

Moved Roberto Bria, Seconded Stephen Coates CARRIED

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Light Fleet Management Policy (Strategic) (5.4) Motion A4131 1. That the Report be received.

2. That the Audit Committee endorse the draft Light Fleet Management Policy and note the draft Fleet Management Protocol provided as Attachment B and D to this Report.

3. That the Audit Committee forward the draft Light Fleet Management Policy to the new Council following the November 2018 elections for consideration and adoption.

Moved Mayor Parkin, Seconded Stephen Coates CARRIED 2018 Work Health and Safety and Return to Work Plan (Strategic) (5.5) Motion A4132 That the Report be received. Moved Roberto Bria, Seconded Stephen Coates CARRIED List of Strategic Risks (Strategic) (5.6) Motion A4133 1. That the Audit Committee note the list of detailed strategic risks and request

Administration to progress items discussed, including risk framework, risk appetite statement and control assessment as part of the internal audit plan.

2. That the Register be brought back to a future meeting of the Audit

Committee. Moved Mayor Parkin, Seconded Roberto Bria CARRIED Register of Registers (5.7) Noted ERA Water (Standing Item) (5.8) Nil Reports

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Confidential Items Nil Other Business Nil Forward Program Next Meeting: • Draft Long Term Financial Plan 2018/19 • Regional Subsidiary Annual Reports 2017/18 • Review of the Internal Audit Plan 2018/21 • Audit Committee Self-Assessment • Comparison of actuals vs. budget Noted Date of Next Meeting Recommendation That the Audit Committee convenes on 19 November 2018 acknowledging this is in caretaker period. Closure The meeting closed at 7.42 pm.

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AUDIT COMMITTEE MEETING OCTOBER 2018 – ACTIONS

MTG RESOLUTION//REQUEST WHO DUE RES NO.

COMMENT

1. 6/10/2009 Regional Subsidiary Quarterly Financial Reports That the Audit Committee requests that each regional subsidiary provide a report on its financial status at quarterly intervals.

GMFG Ongoing A0117 • Report quarterly • Report provided to

Council in February 2019 (two subsidiaries were not included and the Administration has requested the required information from Q1)

2. 7/2/2012 Risk Management Policy and Risk Management Framework (5.3) 5. That the Administration report all new and emerging strategic and

operational risks that are rated as High or Extreme to the Audit Committee on an ongoing basis.

GMCD Ongoing A0225 • Ongoing to be reported on an annual basis and when High and Extreme risks identified

3. 3/4/2012

15/2/2016

Internal Policy & Procedure Framework (5.5) 3. That the Council Policy Review Tracking is provided to the Audit

Committee as a standing agenda item until all Policies and Procedures are up to date.

That the Council Policy and Protocols Tracking Table is provided to the Audit Committee once every six months (as opposed to every Audit Committee Meeting).

GMCD Ongoing A0251 • Standing Item • Reported April 2018 • Reported August 2018 • Reported February 2019

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2

AUDIT COMMITTEE – KEY DATES EXCEPTIONS / URGENT

DATE

(each year)/ FREQUENCY

COMMENTARY

ACT REFERENCE * All references are to Local Government Act

1999 unless stated otherwise

COMMENTS/LAST COMPLETED

NEXT REVIEW/DUE DATE

RESPONSIBLE OFFICER

None

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AUDIT COMMITTEE – UPCOMING KEY DATES SNAPSHOT (PRIOR TO NEXT AUDIT COMMITTEE MEETING)

DATE


COMMENTARY





RESPONSIBLE OFFICER

Within two (2) years after each general election

Council to review strategic management plans (including long term financial and infrastructure/asset management plans) Audit committee to propose and provide information relevant to review of Council's strategic management plans

Section 122(4)(b) Section 126(4)(ab)

2017/18 LTFP adopted in November 2017 Asset Management Plans were adopted in November 2016 Strategic Community Plan adopted in November 2016

2018/19 and 2019/20 LTFP will be presented to Council in April 2019 Asset Management Plans to be provided to Council by July 2019 Strategic Community Plan Refresh to commence in 2019

GMCD GMFG

Annually

Review of Business Plans of subsidiaries – in conjunction with Council or Constituent Councils.

Clauses 8(4) and 24(4) of Schedule 2

- Eastern Health Authority (May 2018)

The Budget reviews for

GMCD GMFG

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4

DATE


COMMENTARY





RESPONSIBLE OFFICER

- East Waste (May 2018) - Highbury Landfill Authority (May 2018) - ERA Water (June 2018)

each of the subsidiaries for 2018/19 will be tabled as and when received.

30 September – 31 May (Inclusive)

Budget Review 1 and 3: Period in which a Council, single Council subsidiary or regional subsidiary must consider at least twice a report (where at least one report is considered before the consideration of the report under Regulation 9(1)(b) showing a revised forecast of its operating and capital investment activities for the relevant financial year compared with the estimates for those activities set out in the budget presented in a manner consistent with the note in the Model Financial Statements entitled Uniform Presentation of Finances. Regional subsidiaries:

Eastern Health Authority Eastern Waste Management Authority Highbury Landfill Authority ERA Water BHKC

Regulation 9(1)(a) of the Local Government (Financial Management) Regulations 2011

Budget Review 1 for 2018/19 adopted by Council on 11 Dec 2019. Subsidiaries Budget Review 1 Report provided to Council in February 2019 (two subsidiaries were not included and the Administration has requested the required information from Q1)

Budget Review 3 for 2018/19 to be presented to Council in May 2019. Budget review 3 for each of the subsidiaries for 2018/19 will be tabled as and when received.

GMCD GMFG

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5

DATE


COMMENTARY





RESPONSIBLE OFFICER

30 November – 15 March (inclusive)

Budget Review 2: Period in which a council, council subsidiary or regional subsidiary must consider a report showing a revised forecast of each item shown in its budgeted financial statements for the relevant financial year compared with the estimates set out in the budget presented in a manner consistent with the Model Financial Statements. The report must also include revised forecasts for the relevant financial year of the council’s operating surplus ratio, net financial liabilities ratio and asset sustainability ratio compared with estimates set out in the budget presented in a manner consistent with the note in the Model Financial Statements entitled Financial Indicators

Regulation 9(1)(b) & (2) of the Local Government (Financial Management) Regulations 2011

Budget Review 2 for 2017/18 adopted by Council on 20 February 2018.

Budget Review 2 for 2018/19 to be presented to Council at its 26 February 2019 meeting. Budget review 2 for each of the subsidiaries for 2018/19 will be tabled as and when received.

GMCD GMFG

Annually

Capital Expenditure Forecast and Plan That Council supports the spending of budgeted on renewal and replacement of existing assets across the entire budget year and discourages the practice of large outlays of capital spending in the last quarter. That an annual plan be presented to Council each July, showing the anticipated timing of capital projects-both Renewal and Replacement of Existing assets and New

N/A

Budget Review 1 for 2018/19 adopted by Council on 11 Dec 2019.

Budget Review 2 for 2018/19 to be presented to Council at its 26 February 2019 meeting. Budget Plan and Timetable

GMCD GMFG

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DATE


COMMENTARY





RESPONSIBLE OFFICER

and Upgraded assets - and an accurate forecast of capital spend across the year. That a Quarterly report be presented to Council in conjunction with the quarterly budget update, detailing progress against the Annual plan and identifying any major impediments to that progress.

for 2019/2020 adopted by Council 11 Dec 2019.

Annually as part of budget process - January (see Part A of this document for specific dates)

Commence preparation of draft annual business plan to meet public consultation obligations under sections 123(3) and (4) and adoption requirements of section 123(8) for business plan and budget. See Part A of this document for specific dates Meet the adoption requirements of Section 123(8); an annual business plan and budget must be adopted after 31 March but before 31 August of the financial year

Section 123(3)

2018/19 Annual Business Plan and Budget adopted 26 June 2018

Budget Plan and Timetable for 2019/2020 adopted by Council 11 Dec 2019.

GMCD GMFG

1 June

Earliest date for single Council subsidiaries and regional subsidiaries to adopt budget for the ensuing financial year.

Clauses 9 and 25 of Schedule 2

- Eastern Health Authority (May 2018) - East Waste (May 2018) - Highbury Landfill Authority (May 2018) - ERA Water (June 2018)

June 2019

GMCD GMFG

14

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DATE


COMMENTARY





RESPONSIBLE OFFICER

1 June

Earliest date for a Council to adopt an annual business plan and a budget which must be adopted for the ensuing financial year. Note: -except in a case involving extraordinary administrative difficulty must be adopted before 31 August for the financial year. -annual business plan must be adopted before budget –section 123(7)(b) -Council must review its long-term financial plan and any other elements of its strategic management plans prescribed by regulation as soon as practicable after adopting the council’s annual business plan for a particular financial year.

Section 123(8), s123(7)(b), and s122(4)(a)

2017/18 LTFP adopted in November 2017 2018/19 Annual Business Plan and Budget adopted 26 June 2018

2019/20 ABP will be presented to Council in April 2019

GMCD GMFG

30 August

Last date for adoption of annual business plan and budget for that financial year (unless a case of extraordinary administrative difficulty). Note: (1)annual business plan must be adopted before budget –section 123(7)(b) (2) Council must review its long-term financial plan and any other elements of its strategic management plans

Section 123(8), s123(7)(b), and s122(4)(a)

2018/19 Annual Business Plan and Budget adopted 26 June 2018 2017/18 LTFP adopted in November 2017

2019/20 ABP and LTFP will be presented to Council in April 2019 and adopted in June 2019.

GMCD GMFG

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DATE


COMMENTARY





RESPONSIBLE OFFICER

prescribed by regulation as soon as practicable after adopting the council’s annual business plan for a particular financial year under section 122(4)(a)

Yearly

Annual Community Survey

November 2018

November 2019

CEO

Annually

Council to determine whether to fix maximum increases in general rates on principal place of residence

Section 153(3)


June 2019

GMCD GMFG

1 June

Earliest date for declaration of a general rate – provided it is after adoption of the annual business plan and budget. Note: except in a case involving extraordinary administrative difficulty a Council must not declare a general rate after 31 August in that financial year.

Section 153(5)(a), (b)


June 2019

GMCD GMFG

1 June

Earliest date upon which a separate rate may be declared (unless it has previously been declared for more than one year) for the ensuing financial year.

Section 154(6)

2018/19 Annual Business Plan and

June 2019

GMCD GMFG

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DATE


COMMENTARY





RESPONSIBLE OFFICER

Budget adopted 26 June 2018

29 August 2016

Last date for submission of ordinary return by all Council Members.

Section 66

August 2018 Updated in December 2019 to cover any campaign donations over the value of $100.

August 2019

CEO GMCD

29 August 2016

Last date for submission of ordinary return by the CEO (to the principal member of the Council) and by prescribed officers to the CEO.

Section 114

August 2018

August 2019

CEO GMCD

31 August

Last date for declaring a general rate (except in a case involving extraordinary administrative difficulty) for that financial year.

Section 153(5)(b)

June 2018

June 2019

GMCD GMFG

Annually

Council to determine rate payment dates in September, December, March and June

Section 181(1)

The rate payment dates were determined as part of the 2018/19

June 2019

GMCD GMFG

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DATE


COMMENTARY





RESPONSIBLE OFFICER

Annual Business Plan and Budget adopted 26 June 2018

Whenever a fee or charge is fixed or varied

Council must update list of fees and charges imposed under section 188 and bring to notice of persons who may be affected.

Section 188(6) and (7)

2018/19 Fees and Charges adopted by Council on 24 April 2018

April 2019

GMCD GMFG

Within twenty one (21) days after the date of adoption of valuations and/or declaration of a Council rate (or service charge)

Council must cause a notice of the adoption of valuations/declaration of rate (or service charge) to be published in the Government Gazette and in a newspaper circulating the area.

Sections 167(6) and 17

July 2018

July 2019

GMCD GMFG

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11

DATE


COMMENTARY





RESPONSIBLE OFFICER

Within 12 months of periodic election

Review Code of Practice relating to the principles, policies, procedures and practices applied in respect of public access to Council and committee meetings including minutes (and other documents)

Section 92(2)

28 July 2015, C10287 12 April 2016, C10602 25 July 2017

May 2019 GMCD

Annually Council report in relation to number, type and outcome of applications for internal review under section 270 policy

Section 270(8) 9 August 2016, C10763 14 August 2018

August 2019

GMCD

Annually

Council must cause an up-to-date information statement to be published in a manner prescribed by the Freedom of Information Regulations.

Section 9 of the Freedom of Information Act 1992

August 2018 August 2019

GMCD

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Register of Council Policies and Codes As at February 2019

Page 1 of 10

LG Act 1999 = Local Government Act 1999 ICAC Act 2012 = Independent Commissioner Against Corruption Act 2012 Dvt Act 1993 = Development Act 1993

Policies which are overdue for review are shown in purple highlight

Policies which are under review are shown in green highlight

Policies due for review in 2019 are shown in blue highlight

Name Type Act Section Last Adopted Review

Next Review / Timeframe

Responsible Area/Manager

Notes

Code of Conduct for Council Employees

Policy LG Act 1999 110 01/04/2018 Code Legislated February 2014. Parliament reviews not Council. Only relates to Gifts and Benefits

Code of Conduct for Council Members

Code LG Act 1999 63(1) 01/09/2013 Code Legislated September 2013. Parliament reviews not Council.

Code of Conduct for Development Assessment Panel (and Members of the Development Assessment Commission,

Code Dvt Act 1993 21A Minister adopts code & must consult with LGA before varying.

Code of Practice – Access to Meetings and documents Code of Practice – Meeting Procedures

Code LG Act 1999; LG (Procedures at Meetings Regulations) 2013

10/10/17, C11442 Office of the CEO and Finance and Governance

Council should, at least once in every financial year, review the operation of a code of practice under this regulation Codes of Practice are to be reviewed within 12 months following an election

Council Member Code of Conduct Complaint Handling procedures

Policy LG Act 1999 63 05/05/2016 Office of the CEO

Under Review – to be presented to Council in late 2019

Awaiting further advice from State Government given proposed legislative reform

Councils’ Complaint Handling Procedure must be reviewed within 12

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Page 2 of 10




Notes

months after a Local Government Election

Guidelines and General Approval for the Placement or Affixation of Elections Signs for Federal, State and Local Government Elections Referenda and Polls

Policy Finance and Governance

This is a LGA Publication which is updated from time to time.

Verge Development Policy 24/02/2015 C10062

1/02/2017 Operations and Environment

To be named Verge Management and presented to Council in February 2019

Garden Awards Policy 27/01/2016, C10511

1/01/2018 Community Connections

Under Review – to be presented to Council in February 2019

Hire of Community Open Space and Facilities Policy

Policy 22/03/2016, C10590


Under Review

Elected Member Leave of Absence

Policy LG Act 1999 14/06/2016, C10686

1/06/2018 Office of the CEO

Reviewed – to be included in Elected Members Policy to be presented to Council in March 2019

Environment & Biodiversity Policy 28/06/2016, C10710


Kerbside Waste Management Policy 14/08/18 C11776 1/07/2018 Operations and Environment

Dealing with Disruptive Behaviours Policy

Policy 1/08/2016, C10773


Under Review – to be presented to Council in March 2019

Informal Gatherings Policy LG Act 1999 90(8a), 90(8b)

22/03/2016, C 10587

1/11/2018 Finance and Governance /

Next election period

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Page 3 of 10




Notes

Office of the CEO

Light Fleet Management Policy Policy 12/2/19 Resolution number to be confirmed

1/2/2021 Finance and Governance

Presented to Audit Committee in October 2018 and approved by Council in February 2019

Public Lighting Policy Policy 1/02/2017, C11013

1/02/2019 Urban and Community

Road and Traffic Management Policy 11/7/017, C11274 1/02/2019 Assets and Infrastructure

Streetscape Policy 28/02/2017, C11042


Water Sensitive Urban Design Policy 19/9/2017, C11392


Arts, Culture, Heritage and Recreation Policy

Policy LG Act 1999 14/3/2017, C11078



Bluestone Kerbing Policy 14/3/2017,C11069 1/03/2019 Urban and Community

Community Access, Inclusion and Participation Policy

Policy 14/03/2017, C11069



Library Policy 14/3/2017, C11070



Records Management Policy 14/3/2017, C11073

1/03/2019 People and Innovation

Under Review – to be presented to Council in March 2019

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Page 4 of 10




Notes

Sponsorship and Donation Policy Policy 28/3/2017, C11092



Internal Review of Council Decisions (Section 270) Procedure

Policy LG Act 1999 270(1) 27/4/2017,C11159 1/04/2019 Finance and Governance and Office of the CEO

Sale or Disposal of Assets Policy Policy LG Act 1999; ICAC Act 2012

27/4/2017, C11158


Caretaker Policy LG Elections Act 1999; LG Act 1999

91A 27/04/2017, C11157


Under review – to be presented to Council in April 2019

Elected Members Policy 27/4/2017, C11163


Reviewed – to be presented to Council in January 2019

Lost and Found Property Policy Unclaimed Goods Act 1987

26/9/2017, C11415


Fees and Charges (Non Rates) Policy 27/06/2017, C11264


Fees and Charges (Non Rates) Waivers, Discounts and Subsidies

Policy 27/06/2017, C11264


Code of Conduct for Volunteers Policy LG Act 1999 11/7/2017, C11279


Rating Policy LG Act 1999 123 26/06/2018, C11738


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Page 5 of 10




Notes

Volunteers Policy 11/7/2017, C11279


Footpath Policy Policy 22/8/2017, C11360

1/08/2019 Assets and Infrastructure

Open Space Policy 19/9/2017, C11393


Includes Open Space Reserves Fund and proceeds from Economic Development

Prudential Project Management Policy LG Act 1999 48(aa1) 26/9/2017, C11413


Access to Development Documentation

Policy Dvt Act 1993 12/12/2017, C11537

1/10/2019 City Development and Safety

Development Delegations Policy Dvt Act 1993 12/12/2017 C11537


Order Making Policy LG Act 1999 259 12/12/2017, C11537


Regulated and Significant Tree Assistance

Policy 12/12/2017 C11537


Telecommunications Facilities on Council Land

Policy 24/10/17, C11454 1/10/2019 Urban and Community

Corporate Credit Card Policy Policy LG Act 1999 124 28/11/2017, C11506


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Page 6 of 10




Notes

Fixed Asset Financial Reporting Policy LG Act 1999 124 28/11/2017, C11507


General Ledger Policy Policy LG Act 1999 124 28/11/2017, C11508


Treasury Management Policy 28/11/2017, C11514


Council Working Party Policy 12/12/2017 C11535


Elected Members’ Training and Development

Policy LG Act 1999 80A 12/12/2017, C11535


Reviewed – to be presented to Council in January 2019

Elected Members Training Plan to be reviewed annually

Enforcement Policy LG Act 1999; Dvt Act 1993

12/12/2017, C11537


Ward Forums Policy 12/12/2017, C11535


Hedge Encroachment onto Road Reserve

Policy 20/02/2018 C11590


Privately Funded Development Plan Amendment

Policy LG Elections Act 1999; Dvt Act 1993

24 & 25 20/02/2018, C11590


Asset Management Policy 13/03/2018, C11620

1/03/2020 Assets and Infrastructure

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Page 7 of 10




Notes

Closed Circuit Television [CCTV] Policy 13/03/2018, C11611


Community Engagement Policy LG Act 1999 50 13/03/2018, C11619

1/03/2020 Corporate and Development

Must undertake public consultation if altered unless only minor change. See S.50(6) & (7)

Community Funding Policy Policy LG Act 1999 13/03/2018, C11623


Media Policy 13/03/2018, C11619


Parking Policy 20/02/2018, C11590


Under Review – a report to be presented to Council in April 2019 with options to amend the Policy (as per resolution from Council 12 Feb 2019)

Social Media Policy 03/03/2018, C11619


Building Inspection Policy Dvt Act 1993 08/05/2018, C11676


Memorials and Heritage Places Policy

Policy LG Act 1999; Dvt Act 1993

10/04/2018 C11646


Street Numbering Policy LG Elections Act;

08/05/2018, C11675


Refer Australian/New Zealand Standard Geographic information - Rural and urban addressing (AS4819:2003)

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Page 8 of 10




Notes

Swimming Pool Inspection Policy LG Act 1999 71AA 08/05/2018, C11676


Flag Flying Policy 08/05/2018, C11682


Internal Financial Controls Framework

Policy LG Act 1999 125 08/05/2018, C11675


Leasing & Licensing of Community Facilities

Policy 08/05/2018, C11682


Magill Cemetery Policy 08/05/2018, C11682


Naming of Public Places Policy LG Act 1999 219(5) 08/05/2018, C11682


Taxation Policy 124 08/05/2018, C11675


Urban Tree Management Policy 14/6/2018, C11713


Use of Road Reserves for Commercial Purpose

Policy 08/05/2018, C11676


Watercourse Management Policy 14/6/2018, C11718


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Page 9 of 10




Notes

Customer Service and Public Interaction Policy

Policy 26/06/2018, C11739


Request for Service Policy Policy LG Act 1999 270(a1)(a) 26/6/2018, C11739


Community Gardens Policy 28/8/2018, C11792


Bushfire Hazard Management Policy Dvt Act 1993; Fire and Emergency Services Act, 2005

10/7/2018, C11751


Discretionary Rebate of Rates Policy 28/8/2018, C11794


Financial Delegation Policy Policy 11/09/2018, C11818


Fraud and Corruption Prevention Policy 14/08/2018, C11774


Whistleblower Protection Policy 14/08/2018, C11774


To be replaced in 2019 by the Public Interest Disclosures Act which is yet to be commenced.

Procurement Policy Policy LG Act 1999 28/08/2018, C11786


Unsolicited Proposal Treatment Policy

Policy LG Act 1999 14/6/2106, C10680


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Page 10 of 10




Notes

Complaint Handling Policy LG Act 1999 270(a1)(b) 11/9/2018, C11819


Risk Management Policy LG Act 1999 134(4)(b) 28/8/2018, C11787


Elected Member Allowances and Benefits

Policy LG Act 1999 77 27/11/2018 27/11/2022 Finance and Governance

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Audit Agenda Item 5.1 18 February 2019

Item No: 5.1 To: Audit Committee Date: 18 February 2019 Author: Karishma Reynolds – Group Manager, Finance and Governance General Manager and Division:

Martin Cooper – General Manager, Corporate and Development

Subject: AUDIT ACTIONS UPDATE Attachments: A. External Audit Actions Register

B. Internal Audit Actions Register Prev. Resolution: N/A

Officer’s Recommendation

1. That the Report be received.

2. That the Audit Committee note the status of the actions within the External and Internal Audit Register.

Purpose

1. To inform the Audit Committee of the matters raised by the External and Internal Auditors in their reports and provide the Administration’s responses to these matters and their current status.

Strategic Plan

2. The following Strategic Plan provisions are relevant:

“Delivery of good governance in Council business”

“A financially sound Council that is accountable, responsible and sustainable”

Communications/Consultation

3. The following communication / consultation has been undertaken:

3.1 Discussions with External Auditors, Dean Newbery and Partners;

3.2 Discussions with Galpins Accountants, Auditors and Business Consultants (Galpins); and

3.3 Discussions with relevant Council departments.

Statutory

4. The following legislation is relevant in this instance:

Local Government Act 1999 and in particular, the following sections:

4.1 Under Section 126 of the Local Government Act 1999, the Council is required to appoint an Audit Committee. One of the prescribed functions of the Committee is to review the adequacy of the accounting, internal control, reporting and other financial management systems and practices of the Council on a regular basis.

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4.2 Under Section 129 of the Local Government Act 1999 – Conduct of audit, Council Auditors must audit the:

4.2.1 Council’s financial statements within a reasonable time after the statements are referred to the auditor for the audit (unless there is good reason for a longer period, this is within two months after the referral); and

4.2.2 controls exercised by the Council for the receipt, expenditure and investment of money; the acquisition and disposal of property; and the incurring of liabilities.

4.3 The Auditor must provide to the Council an audit opinion on:

4.3.1 the financial statements; and

4.3.2 whether the Council’s controls are sufficient to provide reasonable assurance that Council’s financial transactions have been conducted properly and in accordance with the law.

Local Government (Financial Management) Regulations 2011

Policy 5. The following Council Policy is relevant in this instance:

Internal Financial Control Framework

Risk Assessment

6. The following risks have been identified:

6.1 Regular review of Council’s risk environment and internal controls is an important risk management tool and helps assess the effectiveness of Council’s internal control environment.

6.2 An Internal Audit Plan is essential for good corporate governance and will help manage strategic and operational risks faced by Council. Failure to implement the recommendations arising from internal audit projects may also result in lost opportunities to achieve performance improvements in effectiveness and efficiency.

Finance

7. The main financial implication in enacting the recommendations is staff time and, if required, funding for technological solutions. Any funding requirements outside of staff time will proceed through the standard budget request framework within Council.

Discussion

8. The internal auditors undertake audits in line with City of Burnside’s Internal Audit Plan and provide a report with their findings after each of these audits. The reports, once finalised, are tabled at Audit Committee meetings and then provided to Council.

9. The external auditors usually complete two/three interim visits annually and a year-end visit with a Management report being provided after most of these audits. During each audit visit, the audit lead meets with senior finance staff to discuss matters of note arising from the audit.

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10. These range from procedural and processing matters to suggestions or recommendations for internal control improvements. Based on the outcomes of the audit, a report is forwarded to the Mayor, Chief Executive Officer and the Chair of the Audit Committee in accordance with the requirements of the Local Government Act 1999.

11. No item of major concern has been noted in any of the reports/findings. Appropriate improvement and remedial actions are also either complete or underway which will help ensure that these matters are addressed and Council’s internal control environment is strengthened.

12. In order to keep track of internal and external audit recommendations, the Administration has prepared a listing of audit matters. This will assist the Administration and the Audit Committee gain an understanding of the work being done in addressing past and present matters raised by the External Auditors.

13. This report will continue to be presented to the Audit Committee bi-annually. Reports, where an action has been completed or closed since the last report will be noted in the ‘status’ column. ‘Completed’ items are instances where an action or task had been assigned to a matter raised by the Auditors which has now been concluded. ‘Closed’ items are instances where no action was required in response to the matter raised.

14. Both of these items will be removed from the table for future reports but will be maintained and monitored as a separate internal document and be available for review if required.

15. The status of the Open and Completed items has been summarised below:

Attachment A – External Audit Actions

Risk Category

To be started

In Progress Completed Closed Total items

High - - 6 - 6

Moderate - 1 3 - 4

Low - - 10 - 10

N/A - 8 9 - 17

TOTAL - 9 28 - 37

33


Attachment B – Internal Audit Actions

Audit Risk Category

To be started

In Progress

Completed Closed Total items

Internal Controls Review 2016 & 2017

Low - - 3 - 3

N/A - - 1 - 1

TOTAL - - - 4 - 4

Audit Risk Category

To be started

In Progress


Legislative Compliance – Record Management

High - - 2 - 2

Moderate - 1 5 - 6

Low - - 1 - 1

TOTAL - - 1 8 - 9

Audit Risk Category

To be started

In Progress


Logical Security Audit

High - 1 1 - 2

Moderate - - 3 - 3

Low - - 3 - 3

TOTAL - - 1 7 - 8

Audit Risk Category

To be started

In Progress


Procurement Moderate - 1 - - 1

TOTAL - - 1 - - 1

34


Audit Risk Category

To be started

In Progress


WHS Health Check

High - - 2 - 2

Moderate - - 7 - 7

Low - - - - -

TOTAL - - - 9 - 8

Audit Risk Category

To be started

In Progress


Public Health Plan

N/A 1 5 - - 6

TOTAL - 1 5 - - 6

Audit Risk Category

To be started

In Progress


Bushfire Management Audit

Moderate 1 - 1 - 2

Low 1 1 - - 2

TOTAL - 2 1 1 - 4

Conclusion

16. The status of the audit action items has been listed in Attachments A and B and the Administration will continue to work on resolving the open items. A regular update on all external audit action items will be provided to the Audit Committee on a bi-annual basis.

35

Completed External Audit Action Plan – February 2019 Area: Risk

Rating Recommendation Initial Management Response Responsible

Officer Target Date

Status

External Audit - First Interim Visit (March 2017) Statutory Compliance – Register of Allowances & Benefits

High In accordance with Section 79 of the Act, the Council must maintain a Register of Allowances and Benefits. Upon our inspection of records at Council’s Burnside Civic Centre, we note that this register has not been updated since November 2014. We also reviewed Council’s web site for a copy of the register but note that the Council’s web site directs queries to be made at the Customer Service Desk at the Council’s Civic Centre. To ensure compliance with the Act, we recommend this register be updated as a matter of high priority.

The summary of Allowances and Benefits is contained within Council’s Annual Report each year and as such would have been available at the Civic Centre for the 30 June 2016 year. However, this Register has only been maintained on an annual basis and included in the Annual Report. Moving forward, Administration will maintain this Register on a quarterly basis. As an additional control, administration is in the process of creating a full Council wide list of all registers Council is required to maintain. This will ensure that all responsible officers are aware and that these registers are reviewed and kept up to date.

Finance and Governance Team

30/09/2017 Complete

Statutory Compliance – Register of Interests

High In accordance with Section 70 of the Act, the Council must maintain a register of interests that documents ‘any gifts received by the member that are required to be included in the information entered in the Register in relation to the member’. In accordance with Section 70(1), the register must be available for inspection by the public at the principal office. Upon our inspection of the register, we note that it has not been updated since September 2014 when we requested to review a copy of it at Council’s Civic Centre. We note that an electronic copy of the register was also found to be out of date on Council’s website and had not been updated since March 2016.To ensure compliance with the Act, we recommend this register be updated as a matter of high priority.

Administration has investigated and found that the registers were out of date. We have since updated the registers both in hard copy and online. As an additional control, administration is in the process of creating a full Council wide list of all registers Council is required to maintain. This will ensure that all responsible officers are aware and that these registers are reviewed and kept up to date.

CEO / Finance and Governance Team

30/09/2017 Complete

Internal Controls – Procurement

High Council has a centralised procurement model for all purchases with a value over $30,000. Purchases under this threshold are administered by a delegated procuring officer within Council that has appropriate delegated spending authority. Our sample testing of procured goods and services with a value under $30,000 identified that 54% of invoices processed for payment were done so with a Purchase Order created after the date recorded on the invoice. This indicates that procuring officers were not in those instances abiding by Council’s procurement principles. This demonstrates a weakness in internal controls whereby ineffective controls are operating whereby procuring officers are committing expenditure on behalf of Council without following the required processes to ensure the recording and tracking of all committed expenditure. We note as compensating controls, Council’s Finance Department undertakes a thorough review of budget versus actual expenditure to monitor and track Council’s expenditure. We recommend additional controls be implemented that prevent procuring officers from financially committing Council without undertaking the correct procurement procedures as required.

Administration acknowledges that further work needs to be done to strengthen the control of raising purchase orders before invoices are received. However, as mentioned, there is a lot of rigour around budget reviews and comparing budgets to actuals. To further strengthen this control, Administration will undertake the following: - provide training refreshers on raising purchase orders and emphasising the significance of doing so; conducted May17 - generating a monthly report which lists purchase orders raised after the invoice date; and - creating an exemptions listing which will provide guidance as to which purchases do not require a purchase order (e.g. utilities, allowances for committee members etc.)


31/12/2017 Complete

36

Completed Area: Risk Rating

Recommendation Initial Management Response Responsible Officer

Target Date

Status

Council Owned Properties - Non-Rateable Properties

Moderate We recommend that a formal reconciliation be prepared to match Council owned properties appearing in the non-rateable property listing to Council’s Land and Buildings asset registers, to ensure that all properties are properly accounted for. We request to be informed of any discrepancies identified by the Administration during this reconciliation process. We note that in making the above recommendation, our review of the non-rateable property listing did not reveal any anomalies or areas of audit concern.

Administration will include a reconciliation process at the time of rates generation to ensure that the non-rateable property listing and Council’s owned properties in the asset register are both consistent.

Coordinator Rates and Revenue

30/09/2017 Complete

Contract Management

Moderate Council outsources an increasingly high number of functions/works, all of which require ongoing contract management. From time to time, all contracts in place should be subjected to formal independent review, to ensure that terms, conditions, entitlements and responsibilities are appropriately addressed. It would be appreciated if we were advised as to the policies/processes that are in place to formally independently review contracts throughout the organisation.

Implementing a formal mechanism of reviewing every contract in place will be a very resource intensive and time-consuming exercise. The Internal audit program includes audits on Procurement each year and we expect that any anomalies between contract terms and actual practice will be uncovered through these audits. However, to further strengthen this control, Administration will seek to review a sample of contracts per year.

Group Manager Finance and Governance

31/12/2017 In Progress

Asset Management Plans

Low To ensure Council’s Long Term Financial Plan (LTFP) and Infrastructure Asset Management Plans (IAMPs) are reliable for future decision making purposes, the LTFP and IAMPs should be updated for the results of work completed in Items 6 and 7 above to ensure projected asset maintenance and replacement funding as well as projected asset depreciation expense is reliable.

Council’s Asset Management Plans and Long Term Financial Plans are expected to be reviewed and updated by the end of this calendar year. In doing so, Administration will also ensure that the outcomes from the Asset Revaluations discussed above are included.


31/12/2017 Complete

Storm and Flood Damage to Council Infrastructure Assets

Low It was discussed with the Administration that during recent storms and flooding events that occurred in September and November 2016 the full impact of the damage to the Council infrastructure had not yet been determined and was being assessed as at the time of our audit attendance. During the Balance Date audit visit we request to be provided with formal representations from the Administration advising us of the work undertaken by the Administration to assess the damages and the estimated financial impacts to Council’s infrastructure’s assets. We will also be incorporating a review of all work done by the Council in assessing any impairment of assets and how they have been reflected in the eventual FY2017 financial statements.

Administration is in the process of assessing the full extent of the storm damage. When this is complete, a full review will be done to assess the financial impacts which have occurred and if any asset impairments are required.


30/09/2017 Complete

New Accounting Standard - Related Party Transactions

N/A Council should undertake an appropriate review and planning for the introduction of the new requirements under Australian Accounting Standard (AASB) 124 Related Party Disclosures. The new requirements under this standard are in effect as from 1 July 2016 (i.e. as from the commencement of the 2016/17 financial year). It is important all related party disclosures are firstly correctly assessed and recorded by Council (to ensure conformity with the new requirements under the new Standard) so that proper disclosures can be made as required in Council’s 2016/17 Financial Statements. To assist Council’s Administration in complying with the new requirements, we recommend a specific form is developed and provided to all Elected Members, Members of the Audit Committee and Council employees who are deemed Key Management Personnel (KMP). The form should record all transactions and arrangements in which any

Administration is currently reviewing and planning for the introduction of the new requirements under AASB 124.Administration will also follow the guidance provided by the South Australian Financial Management Group as they are undertaking a sector wide approach and will be providing guidance on these disclosures.


30/09/2017 Complete

37



Target Date

Status

related party transactions (as per the AASB standard requirements) have occurred. Adequate training and information should be provided to all applicable persons to ensure they are aware of these new requirements and how to appropriately complete these forms. It should be noted that a similar process will need to be undertaken for all of Council’s Subsidiary entities. By way of example, consideration as to who are deemed KMP and what information required to be disclosed on the proposed form is as follows: 1. Determining which employees/elected members are deemed KMP. 2. The methods in which the KMP are compensated. 3. The KMPs total annual remuneration. 4. Have KMP been involved in any deemed related party transactions? 5. Have the terms and conditions of the related party transactions been in the normal terms to which are offered to the general public? 6. Have any related party transactions occurred with a close family member of KMP? (Close members of the family are defined in AASB 124)? We advise that recent updates to the Model Financial Statements has provided for a recommended disclosures notes relating to AASB 124 and we recommend the Council Administration consider the guidance provided within the Model Financial Statements when preparing the 2016/17 Financial Statements.

External Audit - Second interim visit (April 2017) User Access - CHRIS 21 Payroll Module

High In discussions, it was identified that there is no ’user access’ reports able to be prepared to detail which individual employees have access and permission to the CHRIS 21 payroll module system. The Council’s Administration is aware of this matter and is investigating how a report can be produced. We note that in discussions with Council’s Finance Staff, there have been no instances identified where access to view unauthorised information or process transactions have been identified. We will monitor the progress of this investigation during our next visit and recommend this matter be addressed as a matter of high priority.

Administration has undertaken an internal review and noted that there are 7 users with access to Chris21. The risk is thus limited to very few employees. As part of this process, Administration will create a form for approval of new users, modifications a


30/09/2017 Complete

Employee Accrued Leave Balances

Low Testing was undertaken to identify whether there were any staff with deemed ’excessive’ leave accrued. Council’s Administration already monitors and reports on all employees’ leave balance on a monthly basis via a report sent their respective Managers from the Payroll Officer which details the employee’s accrued leave balance. The Administration has deemed excessive Annual Leave to be any leave

Currently excessive leave balances are monitored on a monthly basis and forwarded to the Executive team who request Managers to review the report and action accordingly. In this process, Payroll has no visibility of the action taken. To further strengthen


30/09/2017 Complete

38



Target Date

Status

balance greater than B weeks (equivalent to 304 accrued hours). Our testing revealed that only 3% of full time/part time employees had accrued more than this threshold and therefore we deem this to not be significant and appears to be managed well. We did observe however that within the current control environment that there is no formal process in place to ensure that action is taken to address any excessive leave accrued when reported to respective Managers. To further strengthen internal controls we recommend that additional processes be implemented whereby an appropriate follow-up review on accrued excessive leave reported is undertaken and that each respective Manager has a requirement to address this matter formally which is monitored by the Administration periodically (e.g. at least every six months).

Payroll Audit - April 2017 EFT Batch Bank File Security – Internal Controls

High Bank files are saved in a shared network drive which can be accessed by all employees in the Finance Department.

Administration has created a new Payroll folder with limited access. The access is provided only to authorised offers which include the Payroll Coordinator, back-up Payroll Officer and the Team Leader, Financial Management.


30/07/2017 Complete

User Access – CHRIS 21 Payroll Module

High In discussions, it was identified that there is no ‘user access’ reports able to be prepared to detail which individual employees have access and permission to the CHRIS 21 payroll module system.

Administration has undertaken an internal review and noted that there are 7 users with access to Chris21. The risk is thus limited to very few employees. As part of this process, Administration will create a form for approval of new users. Modifications and existing employees. Administration will also review the existing user access, make any changes if needed and use those profiles as a benchmark for future new users. t is worth noting that Council had a logical security internal audit in June 2017 which rated "the introduction of a more formal process for the management of user access rights to Christ 21/1 as a Low risk item.t is worth noting that Council had a logical security internal audit in June 2017 which rated "the introduction of a more formal process for the management of user access rights to Christ 21/1 as a Low risk item.


30/09/2017 Complete

Employee Payroll Detail Audit Reports

Moderate It was discussed with the Payroll Coordinator that the Employee Detail Audit reports can be produced but there is an error contained in this report causing the ‘old’ details to not show on the report when there has been a change. We recommend this report

The Audit report has now been reinstated (since 13 June 2017) and is being independently reviewed. The Audit report allows the reviewers to view changes made to bank details and then substantiate it with supporting documentation.


30/07/2017 Complete

Employee Accrued Leave Balances

Low Testing was undertaken to identify whether there were any staff with deemed ‘excessive’ leave accrued. Council’s Administration already monitors and reports on all employees’ leave balance on a monthly basis via a report sent their respective Managers from the Payroll Officer which details the employee’s accrued leave balance. The Administration has deemed excessive Annual Leave to be any leave

Currently excessive leave balances are monitored on a monthly basis and forwarded to the Executive team who request Managers to review the report and action accordingly. In this process, Payroll has no visibility of the action taken. To further strengthen controls, on a quarterly basis, the Payroll Coordinator will: · Send the report direct to Managers requesting comments; and · Forward the report (together with the responses from the


30/09/2017 Complete

39



Target Date

Status

balance greater than B weeks (equivalent to 304 accrued hours). Our testing revealed that only 3% of full time/part time employees had accrued more than this threshold and therefore we deem this to not be significant and appears to be managed well. We did observe however that within the current control environment that there is no formal process in place to ensure that action is taken to address any excessive leave accrued when reported to respective Managers. To further strengthen internal controls we recommend that additional processes be implemented whereby an appropriate follow-up review on accrued excessive leave reported is undertaken and that each respective Manager has a requirement to address this matter formally which is monitored by the Administration periodically (e.g. at least every six months).

Managers) to the Executive team. To strengthen the internal control even further, the People Experience team will then follow up on any balances that are not reducing from quarter to quarter. Access is to be provided to Group Manager People and Innovation and People Experience Adviser to be able to view leave balances in Chris 21 to better manage this internal control.

Documented Payroll Process

N/A We are pleased to note that Council’s Payroll Coordinator officer has developed a documented Payroll Process Procedure manual which details the entire payroll process and various functions (including details of payroll reports that are required to be run from the CHRIS 21 payroll module). The manual is reviewed on a quarterly basis by the Payroll Coordinator and the back-up Payroll Officer. We regard this manual as being a key internal control document and commend the Council’s Administration on the strong focus placed on the continued update of this document.

Noted. No further action needed. Finance and Governance Team

30/06/2017 Complete

Balance Date Audit - 2017 Asset Revaluation Reserve

N/A During FY2018, we recommend the Council’s Administration undertakes a detailed assessment and subsequent break-up of the Asset Revaluation Reserve (disclosed in Note 9) to ensure the reserve is broken-up appropriately to reflect asset classes recorded in Note 7

Administration is currently undertaking a review of Council’s asset classes. Once this is complete it will be reflected in the Asset Revaluation Reserve.


30/6/2018 Complete

Audit Matters raised in Management Letters

N/A We are confident that all audit matters raised in our Management Letters issued during the 2016/17 financial year audit have, or are in the process of being attended to by the Administration

Continue to address any outstanding audit recommendations Finance and Governance Team

Various Complete

FY2017 Financial Statements

N/A As disclosed in Note 1.15 of the FY2017 Financial Statements, some comparative data has been amended (i.e. previously reported FY2016 disclosures) to account for changes in accounting policies and/or disclosures to more accurately reflect circumstances or events that have occurred. The most notable change in accounting policy relates to the treatment of the Cash Advance Debenture (CAD) facility which was treated as a ‘Cash and Cash Equivalent’ in FY2016. On further review and investigation, this facility is a long-term borrowing which is not expected to be repaid prior to maturity in FY2021.

No Action required. Changes as mentioned have already been made and disclosed in the 2016/17 financial statements.


N/A Complete

40



Target Date

Status

An additional disclosure note has been included in Note 8 of the Financial Statements to disclose the maturity date of the CAD facility to enhance the disclosure so as to better inform users of the financial statements as to the repayment obligations of the facility. Amendments have also been made in Note 13 (Financial Instruments) to indicate that repayment of this facility is not expected to be made for a period greater than 12 months from reporting date and therefore it has been treated as a non-current liability in FY2017.

Material variations as between 2015/16 actual and 2016/17 actual (operating and capital)

N/A We have received appropriate explanations for all material variations as between 2015/16 actual and 2016/17 actual (operating and capital)

No action required Group Manager Finance and Governance

30/6/2018 Complete

Asset Accounting Policies

N/A We recommend Council undertakes a review of its asset accounting policies disclosed in Note 1 of the Financial Statements in FY2018 to ensure they appropriately align with principles set in the Council’s Asset Management Plans. In particular, a review of asset capitalisation thresholds applied to each asset class to ensure they have been appropriately set based on estimated future capital works to be undertaken by Council.

Council’s Fixed Asset Financial Reporting Policy has been reviewed and is being tabled for consideration by the Audit Committee at its 20 November 2017 meeting. This Policy will be presented to Council for adoption on 28 November 2017. Policy was adopted on 28 November 2017. C11507


31/12/2017 Complete

Asset Management Plans and the Long Term Financial Plan

N/A Council’s Administration completed the external valuation of all Transport assets (Roads, Footpaths, Kerb & Gutter) and Stormwater Structure assets as at 1 July 2016. Condition assessments undertaken by external consultants have been factored in the valuation of Transport Assets. As a result of asset valuation and condition audit being undertaken, a valuation increase of $57.742M has been recorded in the FY2017 Financial Statements. As disclosed in Note 7 of the Financial Statements, the valuation movement has resulted in an estimated increase in depreciation of $343K which has been factored into the FY2017 depreciation expense. Recommend that the next review of Asset Management Plans and Council’s Long Term Financial Plan incorporate the revised asset depreciation estimates as well as revised estimated timing of asset replacement/intervention as a result of condition data collected.

A thorough review of the Asset Management Plans and the Long Term Financial Plan will be undertaken during the next review of the Asset Management Plans (currently scheduled for 2019/20). This review will aim to ensure that the asset depreciation estimates, and intervention points are consistent. In the interim, the financial data of the Asset Management Plans will continue to be reconciled against the Long Term Financial Plan as required.


30 June 2020

In Progress

External Audit – First interim visit (March 2018) Infrastructure Asset Disposal Recognition

Moderate In discussions held with Council’s Finance staff, asset disposals for works undertaken on Council’s Infrastructure asset network are not being consistently captured and recorded. To ensure Council complies with Australian Accounting Standard (AASB) 116 Property, Plant and Equipment requirements, recommend that the current process for

Administration are currently reviewing the disposal process for Infrastructure assets and its impact on the financial statements It is expected that if required, an adjustment will be made in the 2017/18 year-end financial statements and the process streamlined to be


31/08/2018 Complete

41



Target Date

Status

recognising asset disposals be reviewed and that the accurate capture of disposal transaction occurs for FY2018.

followed consistently in the future. Estimated completion date: 31 August 2018

Budget – Internal Controls

Low Our review of actual versus budget performance as at the end of January 2018 noted that there were examples of where income and costs were being allocated against individual budget income and expense lines that had no budget allocation recorded. To strengthen budget controls, we recommend that at each budget review conducted, individual income and expense budget lines are updated accordingly for the anticipated total amount to be recorded so that there is a reduced risk of transactions/events not being properly analysed or identified or miss-posting of entries

Council manages their budgets by Cost Centre and there may be instances where amounts are coded correctly to an account without an allocated budget. However, the budget holder will reduce their spending in another account as an offset and ensure that overall; the cost is still managed within Budget. This is encouraged to ensure accurate coding is undertaken. However, to strengthen this control, a process has already been implemented whereby, at each Budget Review, individual income and expense budget lines are reviewed and updated.


31/12/2018 Complete

Council Credit Cards – Daily Spending Limit Council Credit Cards – Daily Spending Limit

Low We identified a small number of instances where the daily transaction limit per Council’s ‘Credit Card Expenditure Authorisation Matrix’ were exceeded by card users. Controls over daily limits were not set on credit cards per Council’s daily transaction limits set. We recommend that either daily limits are updated or additional credit card spending limits are implemented to ensure this matter is addressed.

Per the Council’s Credit Card Expenditure Authorisation Matrix, the ‘Daily’ transaction limit is $2,000. However, it was noted that that there were four instances where the daily transaction limit was marginally exceeded (between $32-$283). Administration has since reviewed the Credit Card Protocol in which a revision from a maximum ‘daily’ limit to a maximum ‘transaction’ limit has been adopted. This is in addition to the existing monthly credit card limits. The Administration has also added on an audit function to Council’s credit card management system (ProMaster), whereby any transaction over $2,000 needs to be reviewed to ensure that appropriate documentation and approvals are provided. Both the transaction and monthly limits are also controlled by the Commonwealth Bank credit card control systems.


31/07/2018 Complete

Council Credit Cards – Retention of Receipts

Low Our review of a sample of monthly credit card statement reconciliations noted that a small number of transactions were not supported by valid receipts and/or tax invoices to substantiate the transaction recorded on the credit card statement. To ensure credit card usage procedures are adhered to and that Council has valid tax invoices retained for GST and Fringe Benefit Tax administration purposes, recommend that all users be provided with updated training/reminders about credit card usage requirements.

To be able to claim GST, a tax invoice is required for amounts over $82.50. The audit found that there were a small number of transactions that were not supported by a tax receipt and they were all under this threshold. To strengthen this control, the Administration has: · distributed an email to all credit card holders on 30 May 2018 to remind them of the requirement to have a valid tax invoice; · updated the Credit Card Protocol and included an example of the correct documentation required i.e. a valid receipt and a tax invoice; and · conducted refresher training on the revised Protocol (including requirement for a valid tax invoice) on 3 July 2018.


31/07/2018 Complete

Council Property Leases

Low The administration over the recovery of outgoing costs are managed by Council’s Coordinator Property & Facilities and Council maintains a tenancy register which documents key information relating to each tenant (e.g. the name of the tenant, facility details/address, Term of the lease, annual rent, etc.). The tenancy register doesn’t however provide information from the lease as to which leases has provisions included

Administration will review the tenancy register and incorporate any provisions which include the on charge of outgoing costs (e.g. Electricity, gas, water and insurances) Estimated completion date: 31 December 2018

Coordinator Property and Facilities

31/12/2018 Complete

42



Target Date

Status

that allow the on-charge of outgoing costs (e.g. power, water, insurance, etc.) and there is no centralised register that records all recoverable outgoings per all individual lease agreements held. Recommend the tenancy register be updated to include details of what costs have outgoings as recoverable so that systems can be implemented whereby costs are recovered appropriately and there is a reduced risk of lost revenue to the Council from undercharging of rental costs.

Supplier Change in Bank Details – Internal Controls

Low When the Accounts Payable staff receives an email or an invoice from a supplier requesting a change in bank details, there are no assessed effective controls in place to verify the emails are bona fide, which presents a risk of fraud in this area. To address this internal control weakness, we recommend that additional controls are implemented whereby third party verification is done for any changes to supplier bank account details prior to the changes being processed (e.g. confirm via phone contact with the supplier) and that this process be documented to verify the change in details.

Council has a number of controls in place to ensure that fraudulent emails (including those asking to change bank account details) are prevented and detected. However, to further strengthen this control, the Administration will contact the third party to confirm bank details. Estimated completion date: 30 September 2018


30/09/2018 Complete

Changes to the Gifts and Benefits Register

Low We wish to advise that a new Code of Conduct for Council Employees (the Code) has been developed that will impact upon the Council’s reporting requirements surrounding the Gifts and Benefits Register. These changes commenced on 2 April 2018. Recommend information relating to the changes to the Code is communicated to all relevant staff. By way of example, changes to the Code include; A Council employee must provide details of any gift or benefit (now including any hospitality) of an amount greater than $50 · A gift or benefit received by a person related to a Council employee (as defined in Schedule 3 to the Local Government Act 1999) is to be treated as a gift or benefit received by the employee ·A gift or benefit received by a person related to a Council employee (as defined in Schedule 3 to the Local Government Act 1999) is to be treated as a gift or benefit received by the employee · Council employees may not seek or receive a gift or benefit that is, or could reasonably be taken to be, intended or likely to create a sense of obligation on part of the employee to a person or influence the employee in the performance or discharge of their functions or duties · The Chief Executive Officer must maintain a register of gifts and benefits received by employees. The register is a public document available for inspection and must be published on a website determined by the Chief Executive Officer A complaint alleging that a Council employee has not complied with the code must be dealt with in accordance with a policy prepared and maintained by the Council relating to complaints against employees. The policy must nominate a person or persons to whom complaints are to be given. In the case of the Chief Executive Officer, the policy must provide

As mentioned in the audit recommendation, at the time of the audit, Administration were already aware of and implementing the new Code of Conduct for Council Employees. Since the audit visit, the following actions have already been undertaken: · training sessions for all employees were conducted in June 2018; · the Gifts and Benefits Policy was repealed at the 24 April Council Meeting and has been replaced by the new Code of Conduct for Council Employees; and · a new Employee Conduct Protocol is currently under review to include aspects of the old Code of Conduct (CoC) which are not included in the New CoC such as behaviour and responsibilities. The new protocol will be completed by 30 September 2018. A new Employee Conduct Protocol is currently under review to include aspects of the old Code of Conduct (CoC) which are not included in the New CoC such as behaviour and responsibilities. The new protocol will be completed by 30 September 2018. Administration has a current Complaints Handling policy which nominates the Customer Service Manager as the addressee. Each complaint is handled on a case by case basis and dealt with in accordance with the policy and/or the relevant complaints procedures.


30/09/2018 Complete

43



Target Date

Status

that complaints are to be given to the principal member of Council. At the time of our audit visit, we were advised by the Council Administration that action was being taken to adhere to the above.

Transition to Single Touch Payroll

N/A As at 1 July 2018 the Council will be impacted by the new Single Touch Payroll reporting requirements. These new reporting requirements will involve the electronic reporting of employee payroll information (including salaries, wages, and PAYG withholding and superannuation information) directly to the ATO at the time in which the payroll is processed. Recommend the Council allocate appropriate resources to ensuring the Council’s systems and processes can accommodate the upcoming reporting requirements. At the time of our audit visit, we were advised by the Council Administration that action was being taken to adhere to the above.

As mentioned in the audit recommendation, at the time of the audit, Administration were already aware of and implementing the new Single Touch Payroll Council’s payroll software vendor, Frontier has successfully applied for a vendor deferral from the ATO and as such the new requirements will be effective from 30 March 2019. The Council have adequate resources in place to ensure that the Council’s systems and processes will be able to accommodate the reporting requirements from the aforesaid effective date.



Balance Date Audit - 2018 Asset Disposals

N/A During the Balance Date audit testing, it was identified that there were asset disposals relating to Infrastructure asset renewals which arose due to the differences in the useful lives recorded in the system and the practical intervention points and service capacity. As a result of further testing conducted, asset disposals were properly identified and processed which resulted in an additional $752K recognition of asset disposals for FY2018.

Work is being undertaken to align the intervention points and useful lives in the financial system. A valuation is also being undertaken which will help with this alignment process.

Finance / Assets Team


Asset Accounting Procedures

N/A We note that the Administration is in the process of reviewing internal procedures that will document key asset accounting procedures to address matters such that noted in 1 above. We recommend that at minimum, such procedures should incorporate the following events: -Asset capitalisation/acquisitions -Asset disposals -Asset depreciation methodology for each asset class - Revaluation procedures (i.e. timing of when valuations are to be undertaken, the key Officers involved, quality review process to be conducted etc.) The development of such a procedure will ensure that critical corporate knowledge held by a few Officers within the Council’s Administration is appropriately recorded and minimises the risk of corporate knowledge loss in the event key Officers are not available in the future.

Noted. Council currently has comprehensive existing Asset procedures. However, in the next review of these procedures, Administration will ensure that all items mentioned are included.



Administration of Pooled Vehicle Status

N/A We note that Council is currently updating policies relating to the management of light fleet assets, our observations note that Council did not have a ‘pooled vehicle’ procedure or process in place to record when Council light fleet assets were used as pooled vehicles. We recommend

Updated Fleet Policy and protocol were presented to the Council on 29 January 2019 and adopted (C11919).


31/01/2019 Complete

44



Target Date

Status

Council update its internal procedures and improve its internal record keeping with regard to this requirement to ensure it can demonstrate all vehicles that are designated as a pool vehicle have been appropriately classified to ensure conformance with Council’s own policies as well as any Australian Taxation Office requirements with respect to Fringe Benefits Tax compliance. This process should be reviewed annually.

Asset Valuations –Land & Buildings

N/A We note that Land & Building asset valuations were last undertaken as at 30 June 2015. As at Balance Date, these valuations are now 3 years old and accordingly, we recommend that Administration consider undertaking a valuation of these assets in FY2019 to ensure that asset valuations and recorded asset depreciation remain reliable for financial reporting purposes. We note that the Council are within its policy of reviewing assets between 3 -5 years. However due to the complexities involved, it is recommended that these be done in FY2019.

A Land & Building asset valuation is currently being undertaken and is expected to be finalised by the end of March 2019.



Asset Valuations–Infrastructure Assets

N/A We note that Infrastructure assets (excluding Road Structures) valuations were last undertaken as at 30 June 2015. As at Balance Date, these valuations are now 3 years old and accordingly, we recommend that Administration consider undertaking a valuation of these assets in FY2019 to ensure that asset valuations and recorded asset depreciation remain reliable for financial reporting purposes. We note that the Council are within its policy of reviewing assets between 3 -5 years. However due to the complexities involved, it is recommended that these be done in FY2019.

An Infrastructure assets valuation is currently being undertaken and is expected to be finalised by the end of March 2019.



Asset Condition Assessments

N/A We recommend Council considers reviewing its asset condition data relating to Road Structure assets to ensure that remaining useful lives and asset services standards are appropriately aligned. Condition audits were last undertaken between 2014–2016 on all Road Structure assets. Given the improvements over recent years in data collection, analysis and reporting on asset capital works, we recommend that asset service standards and condition audit data be now compared to previous assumptions and estimates applied to determine whether any updates are necessary. In particular, a review of the estimated remaining useful lives of assets should be considered to ensure they are consistent with the service standards set in Council’s Asset Management Plans.

The condition data assessments will be reviewed in the 2019/20 financial year.



Brown Hill Keswick Creek

N/A We note that Council has become a member of the Authority during FY2018 and accordingly, disclosures were included in Note19 of the Financial Statements. Now that the Authority has been formed, we

Council administration is waiting on the LTFP from Brown Hill Keswick Creek Stormwater Authority. Once received, the projected commitments for City of Burnside will be included in its 2019/20 LTFP.



45



Target Date

Status

Stormwater Authority

recommend that the Council considers what level of financial and/or resources are required to be contributed to the Authority to ensure that the LTFP and Council Budget are updated where required to reflect Council’s estimated commitment.

Internal Audit Plan

N/A Fixed term employment contracts should be annually reviewed to ensure all terms and conditions are met. We ask that this be included as part of the Council’s Internal Audit program with results annually reported to the Council’s Audit Committee.

Review of fixed term employment contracts has been included in the Internal Audit Plan 2018-2022. However, given that this is not a high-risk item and, in an attempt, to deliver other value add reviews, it has been included in the Internal Audit Plan only once, instead of every year.


28/02/2019 Complete

46

Completed Internal Audit Actions Register – February 2019 Area Risk

Rating Recommendations Initial Management Response Responsible

Officer Target Date

Status

Internal Controls Review - August 2016 Internal Controls – Assets

N/A Council to consider amending the relevant policy so that capitalisation thresholds are more explicit. Alternatively, the council may develop specific guidance on capitalisation thresholds for relevant classes of assets in a separate protocol.

Administration is currently working on the ‘Asset Protocol’ which will detail capitalisation thresholds.


31/10/2017 Complete

Legislative Compliance Audit - Records Management - August 2016 The Council Records Management team has adequate staff resourcing.

High Council strongly considers the use of temporary resourcing to assist in the delivery of key records management projects.

A proposal seeking approval for additional funds to contract a qualified Records Management Practitioner to address the backlog of hard copy records for a period of 12 months from September 2016-September 2017. Following the contracted works a further review of outstanding hard copy records will be undertaken.

Team Leader Information Management

01/12/2017 Complete

Physical Storage rooms should be dust free, pest free, fireproof and secure.

High The physical storage facility meets the requirements that are set out in the State Records Act. The current facilities may be reduced and improved by taking into consideration the change in requirements due to the move from physical to electronic storage.

A proposal seeking approval for additional funds to contract a qualified Records Management Practitioner to address the backlog of hard copy records for a period of 12 months from September 2016-September 2017. Priority will be given to the records most at risk. A proposal seeking approval for additional funds to contract a qualified Records Management Practitioner to address the backlog of hard copy records for a period of 12 months from September 2016-September 2017. Priority will be given to the records most at risk. 2. Following the contracted works a further review of outstanding hard copy records will be undertaken. Following the contracted works a further review of outstanding hard copy records will be undertaken. 3. A review of interim controls for records held in the upstairs store room will be completed by December 2016. This risk has been raised previously and has been provisioned for in the long term financial plan in 2017/18 to address ongoing storage issues including non-compliance 4.This risk has been raised previously and has been provisioned for in the long term financial plan in 2017/18 to address ongoing storage issues including non-compliance. .


30/06/2018 Complete

The Council records and monitors document destruction dates.

Moderate Council reviews and refines the list of subject indexes with a view to simplifying the indexes and reducing the risk of inconsistencies. The rollout of this revised list is supported by staff training.

There is no intention to destroy electronic records and this task is very resource intensive. The Local Government General Disposal Schedule 20 is currently under review by State Records and upon completion of that review we will be required to review the Subject Index to reflect the changes. To avoid undertaking this project twice, Management recommends awaiting the outcome of the Local



47

Completed Area Risk Rating

Recommendations Initial Management Response Responsible Officer

Target Date

Status

Government General Disposal Schedule 20 review prior to undertaking this work. This project may be a 2017/18 project.

The volume of backlog in records management is minimised, and kept at manageable levels.

Moderate Council continues to address the backlog. Council considers the use of temporary resourcing to assist in addressing the backlog.

Backlog emails and recently discovered Management emails can be covered within existing operational budget with a proposed Records Management Traineeship to be proposed to the Executive Team in August 2016. A proposal seeking approval for additional funds to contract a qualified Records Management Practitioner to address the backlog of hard copy records for a period of 12 months from September 2016-September 2017. Following the contracted works a further review of outstanding hard copy records will be undertaken.


01/12/2017 Complete

Audit trails and/or other system reports are used to monitor system access and usage.

Moderate Task completion report and ECM usage reports are presented to the Executive group on a monthly basis for review. Management continues to reinforce with staff the importance of recording records in ECM.

Existing reports will be reviewed and scheduled for monthly reporting to all Managers by December 2016.


30/06/2018 Complete

Electronic access management has adequate control measures

Moderate Periodic spot checks of access to sensitive data are carried out. This should include HR records and any data contained in folders utilising "index entry" security. The requirement for these spot checks is included within Council’s "Cyber Security Protocol". Access rights to sensitive data are periodically (at least 6 monthly) reviewed. Council investigates the possibility of integrating access rights between the HR system and ECM.

1. To be included in the Cyber Security Protocol by 30 December 2016. 2. Access rights to be reviewed on a 6 month basis. 3. Investigation into possible integration between HR System and ECM by March 2017.


30/06/2018 Complete


Moderate Continue to reconcile Council records and third party provider records for off-site storage with a view to maintaining proper records to allow documents to be readily located, and also determining eligibility for destruction.

An action plan to reconcile Council records held at the Approved Storage Provider will be in place by November 2016 with targets to resolve this issue by December 2016.


30/06/2018 Complete


Moderate Perform a stocktake of physical records and record details in ECM with a view to maintaining proper records to allow documents to be readily located, and to determine eligibility for destruction.

A proposal seeking approval for additional funds to contract a qualified Records Management Practitioner to address the backlog of hard copy records for a period of 12 months from September 2016-September 2017. Following the contracted works a further review of outstanding hard copy records will be undertaken.


30/06/2018 Complete

Council has adequate systems for

Low Consideration is given to updating Council’s Records Management Policy to include formal requirements for training. This could include, for example:

Internal training for operational functions should be approved by the Executive Team rather than Council. A training plan for Executive endorsement will be completed by 30 June 2017.


30/06/2018 Complete

48



Target Date

Status

training staff in records management, including the process for ensuring that all staff have undertaken training.

- All new staff at induction; - 2 yearly refresher training for all staff; - All elected members at the start of their term; - Mid-term refresher training for elected members.

All staff refresher training will be provided by December 2016 in line with the upgrade.

Internal Controls Review - 2017 Grants Low Relevant delegated managers ensure the quarterly review of the grant

register is undertaken and evidenced. This could be facilitated by an email confirmation to the 'custodian' of the contract register to confirm that the review has been undertaken.

Administration currently reviews the grants income on a monthly basis in the scheduled actual vs budget meetings. However to strengthen our controls we will implement the recommendations provided from Galpins. This new process will be performed quarterly and be implemented in March 2018.


31/03/2018 Complete

Rates & Rate Rebates

Low Significant changes to the Valuer General reports are confirmed / approved via an email or sign off, and this confirmation is retained as evidence in the property Masterfile.

Administration confirm they will review any Significant changes to the Valuer General report compared to the Property and Rating Masterfile. A change in rates value greater than $5,000 will be deemed a significant change. The approval will be conducted by an independent Senior Finance Officer on a monthly basis. Implementation of this review will commence February 2018.

Coordinator Rates and Revenues

28/02/2018 Complete

Rates & Rate Rebates

Low Management to formally provide approval for all non-rateable properties. Administration annually reviews the non-rateable properties. This is conducted prior to the new financial years’ rates notice. As an improvement an independent senior finance officer will approve the review. To further strengthen our controls annually we propose to formally send out a letter to the non-rateable properties excluding council owned properties to request notification any changes to their circumstances. We will implement these changes by June 2018.

Coordinator Rates and Revenue

30/06/2018 Complete

Logical Security Audit - August 2017 Network Password – Password Strength Requirements

High Consideration is given to automating this process. If this is deemed to be impractical, the manual process needs to be tightly monitored to ensure it occurs as required. Consideration is given to enforcing more frequent password changes.

Administration acknowledges that the manual process for triggering network password changes must be actioned in a timely matter as per protocol. A Council wide network password change has been scheduled, to be completed by 31 August 2017.The current manual process for changing passwords is resource intensive as passwords need to be updated on multiple devices for multiple users at the same time to avoid ‘lock outs’. Consideration will be given to automating this process by exploring password management software for devices to mitigate disruption for staff and Elected Members as part of the Annual Business Planning Process to allow a budget provision for 2018/19.

Team Leader Innovation and Technology

Revised to 30/06/2019

In Progress

Network Password – Password Strength

High The current password security settings are reviewed and strengthened. The Cyber Security and Acceptable Computer Use Management Protocol is updated to reflect the strengthened requirements. At a minimum, we recommend:

Administration agrees that the password complexity must be reviewed and strengthened to suit the minimum recommended requirements. This will be enforced during the next network password change


31/08/2018 Complete

49



Target Date

Status

Requirements

· minimum password length of 8 characters · minimum requirement of at least 3 different character classes · ensuring passwords can’t contain the user name or parts of the user’s full name · enabling password history to disallow the use of the previous 6 passwords

scheduled to be completed by 31 August 2017.The ‘Cyber Security and Acceptable Computer Use’ Management Protocol is currently in review and will be updated by 30 September 2017 accordingly to reflect the changes to password complexity as detailed in 2.7.

Removal of Access Rights for Terminated / Transferred Employees

Moderate A periodic check of terminated / transferred employees is performed to confirm that access has been removed. This could involve: · Provision of a periodic report of terminated / transferred employees by the HR department to the IT department / application system owners for reconciliation against a list of active users; and/or · Periodic review of inactive / dormant user accounts (e.g. no activity for greater than 60 days) In addition, similar controls should be in place for employees on extended leave and employees changing roles within Council.

Administration agrees on a quarterly basis to review terminated and transferred employees network access rights and application access. This would include: MYOB, Centaman, Chris 21, Finance one and Magiq. Finance will coordinate with all the system owners. Administration agrees on a quarterly basis to review terminated and transferred employees network access rights and application access. This would include: MYOB, Centaman, Chris 21, Finance one and Magiq. Finance will coordinate with all the system owners. This will be included in the month end checklist. Currently we have the new starter and exit employee forms which are initiated by HR. These are working well. During this review we recognise some work may need to be done on internal transfers and staff on extended leave. We will review this process and develop some improvements with the aim to complete the project by the 31 Dec 2017.


31/12/2017 Complete

Moderate Establish a set frequency for review of Finance One user profile templates,

and monitor that this is followed. It may be appropriate to consider variable review frequencies for the different components of each Profile (i.e. Roles and Functions)

Administration will include in the year end checklist a review of the Profile, Roles and Functions on an annual basis.


31/12/2017 Complete

Vendor Access to Finance One and Magiq

Moderate Additional security tokens are obtained and multiple individual user profiles setup for vendors.

Administration has acquired additional security tokens through our vendor to separate the Finance One and Magiq vendor access accounts. The setup of these accounts and change management for these vendors accessing our network will be completed by 30 Nov 17


30/11/2017 Complete

Protocol Approval

Low The Cyber Security and Acceptable Computer Use Management Protocol is finalised and approved.

The ‘Cyber Security and Acceptable Computer Use’ Management Protocol will be finalised and approved by 30 September 2017. The revised password complexity and security settings from 2.1 will be included.



In Progress

Review of User Profile Templates in Finance One

Low Establish a set frequency for reviewing employee access rights in CHRIS, Magiq, MYOB and Centaman, and monitor that this is followed.

Administration agrees to review this on an annual basis. We will incorporate this in the year end checklist and Finance will coordinate this with other system owners. This would include MYOB, Centaman, Chris 21 and Magiq.


31/10/2017 Complete

Management of Access Rights in CHRIS

Low Introduce more formal processes for the management of user access rights in CHRIS. This should include: · Use of “New and Amending Employee Set Up” form to initiate the setup and modification of user access. · Use of “Exiting Employee” form to initiate the removal of user access. · Formalising the periodic review of access rights (see finding 2.7 above).Setting up standardised templates for new users.

In our review we note we have 7 users with access to Chris21. The risk is limited to a very few number of employees. As a part of this process we will create a form for approval of new users, modifications and exiting employees, make any changes if needed and use those profiles as a benchmark for future new users.


31/08/2017 Complete

50



Target Date

Status

Procurement Audit - August 2017 Maintenance of the contract register

Moderate Council reviews and updates the contract register to ensure that it is complete and all key contract details have been properly recorded and updated. As a minimum the contract register should include the following information: · Contract manager; · Contract expiry date; · Estimated contract value; · Contractor name; and · ECM tracking reference. In addition, where the estimated value of the contract is likely to exceed the estimated value originally recorded, the register should be updated with new contract value estimates.

The development of the Contracts Register has been a resource intensive exercise. Whilst this register is now available on the intranet, it is acknowledged that information pertaining to some old contracts still needs to be obtained and included in the register. A Procurement and Finance officer role has recently been advertised and the update to the contracts register is one of the projects that this role will be responsible for.

Business Partner Procurement


In Progress

Work, Health and Safety Health Check - August 2017 National Heavy Vehicle Legislation

High A gap analysis is conducted to determine what is required for Council to be compliant in this area. Following the gap analysis, an Action Plan is developed and implemented.

1. Discussion to be held with LGAWCS to see if industry level program to be put in place or warranted. 2. If no action planned by LGAWCS, due to its specialised nature a suitable external expert will need to be brought into undertake the analysis. 3. An action plan will be developed based on the gap analysis findings. 4. Action plan approved and resourced by Executive. Dec 2018 - Considerable action has been completed in this area but an internal audit is required in early 2019 to ensure implementation of actions has been effective.

WHS and Risk Management Coordinator

31/08/2017 Complete

Notification to SafeWork SA in the event of serious injury or illnesses, dangerous incidents or death

High The procedure is revised to better reflect the legislative requirements. The procedure will be updated to better reflect WHS Act reporting requirements and will now be communicated with all relevant staff. Approved procedure distributed to all relevant workers.


31/08/2017 Complete

Acceptable level of risk

Moderate Council reviews the approach to acceptable risk and clearly defines and communicates both: · what constitutes an acceptable level of risk tolerance within Council; and the methodology for management to obtain and document acceptance by (or direction from) the Executive Management Team for high or extreme risk.

It is proposed that as part of the annual management review process there will be incorporated an agenda item that considers and reviews all residual high risk hazards. Discussions as part of this process are documented. Dec 2018 - item is now part of standing agenda for WHS and RTW plan review with Exec.


28/02/2018 Complete

Improving the understanding of documentation

Moderate Council provides additional guidance to relevant staff on the process and requirements applicable to high risk work. The planned training in Contractor Management (in 2017) would be an opportune time.

Planned contractor management training will include an element on high risk construction work and documentation requirements. Dec 2018 - previous training completed but further training is planned for 2019.


31/10/2017 Complete

51



Target Date

Status

requirements for high risk work

JSA / SWMS review period

Moderate Council revises the maximum period of review for JSA / SWMS to 12-monthly.

Based on risk it is considered appropriate to review the 19 or so Safe Work Methods Statements associated with high risk construction tasks. This action will also require a review of the WHS Document Management Procedure to ensure this new arrangement is reflected within it. Dec 2018 - WHS Document Management Procedure has been further modified to reflect change in process.


30/06/2018 Complete

Objectives, targets & performance indicators for the Plant Safety Program and other programs.

Moderate Council reviews the requirements for setting objectives, targets & performance indicators for the nominated programs, and either: · set the criteria as required by the management system and ensure Executive undertake the monitoring and review; or revise the procedure to reflect an alternative desired practice.

All KPI’s to be reviewed as part of the implementation of Skytrust. At point of review (or within next 12 months which is earlier), a check will be undertaken of all WHS procedures to ensure the section on the setting and monitoring of objectives, target At point of review (or within next 12 months which is earlier), a check will be undertaken of all WHS procedures to ensure the section on the setting and monitoring of objectives, targets and performance indicators is applicable and relevant to current needs of the organisation. Dec 2018 - As part of the document review process for all WHS system documentation relevant sections on KPI's are being reviewed and altered appropriately.


31/01/2018 Complete

Updating the Hazard Register for additional controls identified via the CAPA Register

Moderate A clearly defined process is determined and implemented to ensure that any additional controls identified as a result of CA’s being raised via the CAPA Register are incorporated into the Hazard Register.

Explore the application of Skytrust to address this issue and thus ensure necessary linkages. Migrate relevant information from hazard register and CAPA register into Skytrust. Migrate relevant information from hazard register and CAPA register into Skytrust. Dec 2018 - Skytrust hasn't been utilised as first envisioned. The register has been uploaded and not re-entered due to poor functionality of Skytrust. A compliance entry has however been created to ensure this record is updated.


28/2/2018 Complete

Use of multiple Risk Matrices

Moderate Council mandates the use of a single WHS Risk Matrix and revises the WHS Safety Management System accordingly.

This situation has primarily occurred due to the varying review time frame of various documents being undertaken by multiple please across the organisation. Moving forward all versions of the risk matrix will be removed from all WHS documents, forms, etc. as they are updated and replaced with a reference requiring people to check the current version of the City of Burnside risk management framework. Dec 2018 - As documents are being updated the risk matrix is being removed a reference pointing people to the intranet version included


31/08/2017 Complete

Document control – review dates

Moderate Council undertakes a review of the currency of WHS documentation and provides the resources to review and update documentation as required.

The plant procedure is currently awaiting Executive approval after a review completed earlier in 2017. Once signed off by Executive the procedure will be distributed and communicated via normal means. A schedule of sessions has been organised with WHS Consultant


31/08/2017 Complete

52



Target Date

Status

from LGAWCS in order to review and update the procedures. Updated procedures to be tabled with WHS Committee for consultation and approval before Executive sign off. Dec 2018 - One System Procedure has recently been updated by LGAWCS so further review will be required but previous version covers off on this area of attention.

Public Health Plan - 2018 Building the Health Plan into Council’s Strategic Framework

N/A Review and confirm Council’s preferred format or the next iteration of the Public Health Plan. For example, confirm if: • the Plan will be integrated into Council’s Strategic Community Plan or other relevant planning documents • the Plan will continue as a standalone document as already exists, or • the Plan will be a combination of the above approaches. This decision will need to be made with consideration of the other constituent councils and the Environmental Health Authority.

The current iteration of the Public Health Plan is regional but is being reported on individually by Councils. For the next iteration of this Plan, consideration will be given to how Administration will seek to integrate this within our strategies and reporting mechanism.

Group Manager City Development and Safety


Governance: Senior regional oversight of the Plan

N/A Promote a stronger approach to the Eastern Region Public Health Plan Advisory Committee’s oversight of the Plan. This can include: • promoting are fresh of Committee membership to ensure that council officer members have responsibility for implementation of public health items at their Councils (e.g. for areas such as assets/infrastructure and/or community health) • reviewing the Committee’ terms of reference to confirm how implementation of the Plan will be monitored, for example whether the focus will be on oversight of regional initiatives only, or on all council initiatives.

The governance and reporting framework will be reviewed in line with the next iteration of this Plan and consideration will be given to promoting greater oversight by the Eastern Region Public Health Plan Advisory Committee.



N/A To promote commitment to the implementation of the Plan a cross

constituent councils, consider proposing executive-level oversight of the Plan. This may include: • deciding on a relevant executive-level committee to receive periodic updates of the Plan’ simple mentation (for example, the Eastern Regional Alliance CEO meetings or another relevant meeting). This over sight could also provide confirmation of priority areas/regional initiatives in relation to public health.

The governance and reporting framework will be reviewed in line with the next iteration of this Plan and consideration will be given to providing executive–level oversight of this Plan.



Internal governance arrangements to ensure delivery of the Plan

N/A Strengthen internal governance arrangements in relation the Plan. This may include: • monitoring implementation of the Plan at a senior management level • allocation of a ‘champion’ or champions to help promote the Plan within Council, and • ensuring that the officer(s) representing Council at the Eastern Regional Public Health Planning Committee meetings have responsibility for delivering on abroad range of initiatives included in the Plan.

The governance and reporting frame work will be reviewed in line with the next iteration of this Plan and consideration will be given to nominating champions across Council. Due date 30/6/2018.



53



Target Date

Status

Understanding Public Health

N/A Conduct an awareness-raising session at a senior management level to educate managers about the potential and intended benefits of public health planning and why public health relates to their work. This session should encompass the broad definition of public health and how public health planning can be different / add value compared to business as usual activities. This session should be conducted in conjunction with the LGA/SA Health and can then provide a basis for Council to decide on future arrangements for the Plan.

Awareness training to be held for the Management and Executive teams in the 2017/18 financial year.



Strategic approach to delivering the next iteration of the Plan

N/A To provide renewed Council commitment and clarity to its future public health planning direction, it is recommended that Council strategically decide/re-confirm its intended approach to developing the next iteration of the Plan. For example, confirm whether the plan will be developed: • as a regional initiative, • partly as a regional initiative and partly in-house, or • as a solo effort.

The current iteration of the Public Health Plan is regional but is being reported on individually by Councils. For the next iteration of this Plan, consideration will be given to whether the plan should be undertaken regionally or in house.


30/6/2020 Not Started

Bushfire Management Audit Bushfire management plan

Moderate Consideration is given to the development of an overarching bushfire management framework and plan. This would ideally capture: • The responsible officers involved and their roles in relation to bushfire management • An organisational chart to illustrate the responsible officers and their roles in relation to the broader Council • Details of assets and infrastructure maintained by the Council for bushfire management and response • Specific bushfire management activities undertaken across the Council, and how these activities are coordinated • How bushfire management activities are aligned to relevant State and Council strategies and plans • Details of any monitoring and measurement systems for bushfire management activities.

As mentioned in Section 1.3 above, ‘the roles and responsibilities of the Council are well defined in the Bushfire Hazard Management policy’. As such the risk of not having another overarching Framework is not considered as a high risk. Having said that, the Administration will endeavour to further strengthen the Policy by incorporating the recommended factors listed above.

Team Leader Ranger Services


Bushfire risk assessment

Moderate To further support the BMAP, a bushfire risk assessment specific to the Council is undertaken. This includes consideration of: • Potential causes of bushfires in Council zones • Identification of critical Council assets and infrastructure that are at risk • Consequences that may result from bushfire events such as impact to services, environmental impacts, loss of Council infrastructure and assets and damage to Council reserves • Topological and fuel control considerations such as invasive species and woody weed control where priority needs to be given • Response procedures for residents and Council staff in high risk zones.

The Administration believes that there are compensating controls which help mitigate this risk. These controls are: - Identification of assets in high risk areas through Intramaps; - Insurance of all Council assets including of reviews on their valuation; - Detailed procedures communicated to residents through the CFS; - Protocols available to staff highlighting procedures to be undertaken in the event of a bushfire; and - Development of a Face Zone Reserves Vegetation Management Plan in the 2018/19 year. Council already recognises bushfire management as a Strategic risk and undertaking a separate bushfire risk assessment would require Council to engage a consultant with specialist skills and would not


N/A Complete

54



Target Date

Status

provide much additional value at this stage. In addition, it would not be prudent to expend resources and overlap functions which are currently undertaken by the CFS

Fire Prevention Officer procedures

Low Formal documentation is developed outlining the key responsibilities and activities of the Fire Prevention Officer role.

Council policy already articulates how the Fire Prevention Officer will perform their functions by reference to the Fire and Emergency Services Act. However, to further strengthen internal controls, Administration will endeavour to detail the procedures in an internal protocol.

Team Leader Ranger Services


Formal vegetation management plans for all hills face zone reserves

Low Vegetation management plans are completed for the Northern and Central Hills Face Zone Reserves.

A budget bid has been included in the 2018/19 Budget to facilitate completion of an overall Hills Face Zone Reserves Vegetation Management Plan and a nested series of Reserve Management Plans.

Technical Officer Conservation and Land Management

30/06/2019 In progress

55

Audit Committee Item 5.2 18 February 2019 Item No: 5.2 To: Audit Committee Date: 18 February 2019 Author: Karishma Reynolds – Group Manager, Finance and Governance General Manager and Division:


Subject: AUDIT COMMITTEE SELF-ASSESSMENT AND TERMS OF REFERENCE UPDATE

Attachments: A. Audit Committee Self-Assessment results B. Audit Committee Terms of Reference (tracked changes) C. Audit Committee Terms of Reference (new version)

Prev. Resolution: A4096, 20/11/17 C11512, 28/11/17 C11917, 29/1/19



2. That the results from the 2018 Audit Committee Annual Performance Survey be noted.

3. That the amended Terms of Reference be considered and endorsed by the Audit Committee.

4. That the amended Terms of Reference be presented to Council for consideration and adoption.

Purpose

1. To provide the Audit Committee with the results of the 2018 Audit Committee Annual Performance Self-Assessment undertaken by Members.

2. To review and endorse the updated Audit Committee Terms of Reference to ensure that they accurately reflect the needs of Council and the responsibilities of the Committee and for the Committee to present the amended Terms of Reference to Council for consideration and adoption.

Strategic Plan

3. The following Strategic Plan provision is relevant:


57

Audit Committee Item 5.2 18 February 2019 Communications/Consultation

4. The following communication / consultation was undertaken:

4.1 discussions with key internal stakeholders; and

4.2 discussions at the 29 January 2019 Council meeting following a Motion on Notice to Council late 2018.

Statutory


Local Government Act 1999, Sections 41 and 126

Local Government (Procedures at Meetings) Regulations 2013


Policy

6. The changes to the Terms of Reference are reported in the ‘Discussion’ section of this report.

Risk Assessment

7. There are no risks associated with the recommendation.

Finance

8. There are no financial implications for the City of Burnside in respect of this recommendation.

Discussion

Background 9. The Local Government Act 1999 (the Act) at section 126, requires each Council to

have an Audit Committee which is established under section 41 of the Act. Audit Committees have no authority to act independently of Councils and can only act in areas covered by their Terms of Reference (refer Attachment B for the current Audit Committee Terms of Reference).

10. It is considered good governance practice to undertake an annual self-assessment which allows members to assess the effectiveness of the Audit Committee and identify whether there are any further improvements that could be made which would improve its overall effectiveness.

11. It is also considered good governance practice to consider the results from the self-assessment and undertake regular reviews of the Terms of Reference to ensure that they remain relevant to Council needs and accurately reflect the responsibilities of the Audit Committee.

58

Audit Committee Item 5.2 18 February 2019 Self-Assessment Survey

12. In September 2018, Audit Committee Members were asked to review and anonymously partake in the 2018 Audit Committee Annual Performance Survey. Four responses were received and have been included as Attachment A.

13. Overall, the results from the Self-Assessment identified high levels of compliance with accepted good practice. Key feedback and comments received are listed below:

13.1 work plan to be informed by the Strategic Risk Register;

13.2 Committee to review the Strategic Risks Register and then be provided with regular reports on the Strategic Risk Plans;

13.3 Long Term Financial Plan (LTFP) could be taken out to a 30 year time frame to understand the impact of the infrastructure spend in a longer time period;

13.4 more focus on the LTFP;

13.5 more involvement in reviewing the Internal Audit Plan and having more reports come to the meetings;

13.6 greater focus on Risk Management;

13.7 keen to take advantage of the expertise available to ensure that Council practices are more than adequate and strive to best known practice; and

13.8 whistleblowing is not a matter that was squarely contemplated.

14. The feedback from the Survey has been noted by the Administration and where possible, will be actioned. Some key items mentioned above such as the Internal Audit Plan and Risk Management are being reported as part of this agenda.

Terms of Reference

15. The Administration reviewed the Audit Committee Terms of Reference and tabled the proposed amendments at the 28 November 2017 Council meeting, where it was resolved (C11512):


2. That Council adopt the amended Audit Committee Terms of Reference which have been recommended by the Audit Committee with the inclusion of a maximum of two consecutive terms by any independent member.

16. The Audit Committee Membership was also considered by Council at the 29 January 2019 meeting, where it was resolved (C11917):

1. That the Report be Received

2. That the Terms of Reference of the Audit Committee be changed to reflect the following:

2.1 Requirement for no fewer than two independent members

2.2 Ability to appoint an Elected Member, if desired by Council, as a proxy member to the Audit Committee.

59

Audit Committee Item 5.2 18 February 2019

3. That Councillor Jones be appointed as the proxy member of the Audit Committee with immediate effect.

4. That Councillor Jones be appointed as a member of the Audit Committee at the earliest time when a vacancy occurs.

17. In addition to the changes required above, the Administration has also considered the results of the Self-Assessment and all amendments incorporated in the Terms of Reference (Attachment C) are shown below:

17.1. removal of the requirement for the Committee to have a majority of Independent Members;

17.2. inclusion of the option to appoint a Proxy Member and voting rights for the Member;

17.3. revision of the requirement for Independent Members to be present to form a Quorum to allow for future changes in membership;

17.4. specific mention of monitoring and review of the Strategic Risk Register within the role of the Committee;

17.5. specific mention of the requirement for the Committee to review the Whistleblowing Policy; and

17.6. consideration of inclusion of live streaming of all Audit Committee meetings.

Conclusion

18. The Audit Committee’s Terms of Reference clarifies the role that Council wishes the Audit Committee to undertake.

19. The results of the 2018 Audit Committee Annual Performance Survey (Attachment A) and amended Audit Committee’s Terms of Reference (Attachment C) are provided to the Audit Committee for consideration prior to being presented to Council for adoption.

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2018 Audit Committee AnnualPerformance Survey

Submission date: 26/09/2018 02:24 PM

Receipt number: 1

Question ResponseIntroductionEstablishment of the Committee and Membership1. The Terms of Reference (ToR) of the Committee provide clear direction on therole, function and powers of the Committee and its oversight responsibilities onbehalf of Council.

Agree

The current annual process for the review of the ToR is adequate and appropriate. Agree3. The Committee, as a whole, is adequately qualified and appropriate to dischargeits responsibilities on behalf of Council. Agree

4. Please provide any comments or feedback that you may have in relation to theCommittee’s ToR or membership.Meetings and Agendas5. The arrangements for Committee meetings are adequate and appropriate. Agree6. The appropriate internal and external stakeholders attend meetings asnecessary and add value to the Committee’s discussions. Agree

7. The papers provided to the Committee are appropriate and sufficient to enableinformed discussion and decision making at meetings. Agree

8. The forward work plan is appropriate and comprehensive enough to ensure theCommittee executes its responsibilities in accordance with the ToR. Agree

9. Please provide any comments or feedback that you may have in relation to thearrangements for Committee meetings and the annual work plan.Financial Reporting and Sustainability10. The Committee has adequate opportunity to review the annual Annual Report(including Financial Statements) to ensure that they present fairly the state ofaffairs of the council and are in accordance with relevant accounting standards.

Agree

11. The Committee has adequate opportunity to review the Long Term FinancialPlan and Budget to ensure that they are underpinned by sound assumptions andachieve Council’s desired targets and ratios.

Agree

12. The Committee has achieved its objectives, as set out in the ToR, in regard tofinancial reporting and sustainability. Agree

13. Please provide any comments or feedback that you may have in relation to theCommittee’s consideration of matters related to financial reporting andsustainability.Internal Controls and Risk Management14. The Committee has reviewed Council’s risk profile and the processesimplemented to monitor and manage risk exposures. Agree

1 of 361

15. The internal financial control self-assessment process and the externalauditor’s internal control audit provide sufficient assurance that the financialcontrols are adequate and operating as intended.

Neitheragree nordisagree

16. The Committee has achieved its objectives, as set out in the ToR, in regard tointernal control and risk management systems.


17. Please provide any comments or feedback that you may have in relation to theCommittee’s consideration of matters related to internal controls and riskmanagement.Internal Audit18. The activities in the internal audit work plan adequately address areas of riskand provide assurance to the Committee and Council. Agree

19. The Committee has had adequate opportunity to contribute directly to thedevelopment of the internal audit work plan. Agree

20. The level of reporting regarding internal audit activities, the outcomes of internalaudits and the implementation of actions is appropriate.


21. The Committee has achieved its objectives, as set out in the ToR, in regard tointernal audit.


22. Please provide any comments or feedback that you may have in relation to theCommittee’s consideration of matters related to the internal audit function.External Audit23. The Committee reviews external audit reports on findings from financial andinternal controls audits and monitors the implementation of actions beingundertaken to address recommendations.

Agree

24. The Committee discusses significant findings from the financial and internalcontrols audits with the external auditor.


25. The Committee has effectively overseen Council’s relationship with the externalauditor, including overall performance; appointment, terms of engagement;independence and objectivity; qualifications, expertise and resources.


26. The Committee has achieved its objectives, as set out in the ToR, in regard toexternal audit.


27. Please provide any comments or feedback that you may have in relation to theCommittee’s consideration of matters related to external audit and the relationshipwith the external auditor.Whistle BlowingThe Committee has achieved its objectives, as set out in the ToR, in regard towhistleblowing. Agree

29. Please provide any comments or feedback that you may have in relation to theCommittee’s consideration of matters related to whistleblowing.Annual Performance Review

The Committee’s annual performance review process is effective and adds value.Neitheragree nordisagree

Question Response

2 of 362

31. I am satisfied with the overall performance of the Committee over the preceding12 months. Agree

Other32. Please provide any other comments or feedback that you would like to make inrelation to the performance of the Committee, its achievement of the objectives ofthe Terms of Reference and compliance with the Local Government Act.

Question Response

3 of 363



Receipt number: 2

Question ResponseIntroductionEstablishment of the Committee and Membership1. The Terms of Reference (ToR) of the Committee provideclear direction on the role, function and powers of theCommittee and its oversight responsibilities on behalf ofCouncil.

Agree

The current annual process for the review of the ToR isadequate and appropriate. Agree

3. The Committee, as a whole, is adequately qualified andappropriate to discharge its responsibilities on behalf ofCouncil.

Agree

4. Please provide any comments or feedback that you mayhave in relation to the Committee’s ToR or membership.Meetings and Agendas5. The arrangements for Committee meetings are adequateand appropriate. Agree

6. The appropriate internal and external stakeholders attendmeetings as necessary and add value to the Committee’sdiscussions.

Agree

7. The papers provided to the Committee are appropriate andsufficient to enable informed discussion and decision makingat meetings.

Agree

8. The forward work plan is appropriate and comprehensiveenough to ensure the Committee executes its responsibilitiesin accordance with the ToR.

Agree

9. Please provide any comments or feedback that you mayhave in relation to the arrangements for Committee meetingsand the annual work plan.Financial Reporting and Sustainability10. The Committee has adequate opportunity to review theannual Annual Report (including Financial Statements) toensure that they present fairly the state of affairs of thecouncil and are in accordance with relevant accountingstandards.

Agree

11. The Committee has adequate opportunity to review theLong Term Financial Plan and Budget to ensure that they areunderpinned by sound assumptions and achieve Council’sdesired targets and ratios.

Agree

1 of 364

12. The Committee has achieved its objectives, as set out inthe ToR, in regard to financial reporting and sustainability. Agree

13. Please provide any comments or feedback that you mayhave in relation to the Committee’s consideration of mattersrelated to financial reporting and sustainability.

More focus on the LTFP wouldbe good.

Internal Controls and Risk Management14. The Committee has reviewed Council’s risk profile and theprocesses implemented to monitor and manage riskexposures.

Agree

15. The internal financial control self-assessment process andthe external auditor’s internal control audit provide sufficientassurance that the financial controls are adequate andoperating as intended.

Agree

16. The Committee has achieved its objectives, as set out inthe ToR, in regard to internal control and risk managementsystems.

Agree

17. Please provide any comments or feedback that you mayhave in relation to the Committee’s consideration of mattersrelated to internal controls and risk management.Internal Audit18. The activities in the internal audit work plan adequatelyaddress areas of risk and provide assurance to theCommittee and Council.

Agree

19. The Committee has had adequate opportunity tocontribute directly to the development of the internal auditwork plan.

Neither agree nor disagree

20. The level of reporting regarding internal audit activities,the outcomes of internal audits and the implementation ofactions is appropriate.


21. The Committee has achieved its objectives, as set out inthe ToR, in regard to internal audit. Agree

22. Please provide any comments or feedback that you mayhave in relation to the Committee’s consideration of mattersrelated to the internal audit function.

Would be good to have moreinvolvement in reviewing theInternal Audit Plan and havingmore reports come to themeetings.

External Audit23. The Committee reviews external audit reports on findingsfrom financial and internal controls audits and monitors theimplementation of actions being undertaken to addressrecommendations.

Agree

24. The Committee discusses significant findings from thefinancial and internal controls audits with the external auditor. Agree

Question Response

2 of 365

25. The Committee has effectively overseen Council’srelationship with the external auditor, including overallperformance; appointment, terms of engagement;independence and objectivity; qualifications, expertise andresources.

Agree

26. The Committee has achieved its objectives, as set out inthe ToR, in regard to external audit. Agree

27. Please provide any comments or feedback that you mayhave in relation to the Committee’s consideration of mattersrelated to external audit and the relationship with the externalauditor.Whistle BlowingThe Committee has achieved its objectives, as set out in theToR, in regard to whistleblowing. Agree

29. Please provide any comments or feedback that you mayhave in relation to the Committee’s consideration of mattersrelated to whistleblowing.Annual Performance ReviewThe Committee’s annual performance review process iseffective and adds value. Agree

31. I am satisfied with the overall performance of theCommittee over the preceding 12 months. Agree

Other32. Please provide any other comments or feedback that youwould like to make in relation to the performance of theCommittee, its achievement of the objectives of the Terms ofReference and compliance with the Local Government Act.

Greater focus on RiskManagement in the new year.

Question Response

3 of 366



Receipt number: 4

Question ResponseIntroductionEstablishment of the Committee and Membership1. The Terms of Reference (ToR) of the Committeeprovide clear direction on the role, function and powersof the Committee and its oversight responsibilities onbehalf of Council.

Agree


3. The Committee, as a whole, is adequately qualifiedand appropriate to discharge its responsibilities on behalfof Council.

Agree

4. Please provide any comments or feedback that youmay have in relation to the Committee’s ToR ormembership.Meetings and Agendas5. The arrangements for Committee meetings areadequate and appropriate. Agree

6. The appropriate internal and external stakeholdersattend meetings as necessary and add value to theCommittee’s discussions.

Agree

7. The papers provided to the Committee are appropriateand sufficient to enable informed discussion and decisionmaking at meetings.

Agree

8. The forward work plan is appropriate andcomprehensive enough to ensure the Committeeexecutes its responsibilities in accordance with the ToR.


9. Please provide any comments or feedback that youmay have in relation to the arrangements for Committeemeetings and the annual work plan.

The work plan should be informed bythe Strategic Risk Register which Idon’t believe has been undertaken.

Financial Reporting and Sustainability10. The Committee has adequate opportunity to reviewthe annual Annual Report (including FinancialStatements) to ensure that they present fairly the state ofaffairs of the council and are in accordance with relevantaccounting standards.

Agree

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11. The Committee has adequate opportunity to reviewthe Long Term Financial Plan and Budget to ensure thatthey are underpinned by sound assumptions and achieveCouncil’s desired targets and ratios.

Agree

12. The Committee has achieved its objectives, as setout in the ToR, in regard to financial reporting andsustainability.

Agree

13. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to financial reporting and sustainability.

I believe that the LTFP could betaken out to a 30 year time frame tounderstand the impact of theinfrastructure spend in a longer timeperiod

Internal Controls and Risk Management14. The Committee has reviewed Council’s risk profileand the processes implemented to monitor and managerisk exposures.


15. The internal financial control self-assessmentprocess and the external auditor’s internal control auditprovide sufficient assurance that the financial controlsare adequate and operating as intended.

Agree

16. The Committee has achieved its objectives, as setout in the ToR, in regard to internal control and riskmanagement systems.

Agree

17. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to internal controls and risk management.

I believe the Committee shouldreview the Strategic Risks Registerand then be provided with regularreports to the Committee on theStrategic Risk Plans

Internal Audit18. The activities in the internal audit work planadequately address areas of risk and provide assuranceto the Committee and Council.

Agree


Agree

20. The level of reporting regarding internal auditactivities, the outcomes of internal audits and theimplementation of actions is appropriate.

Agree

21. The Committee has achieved its objectives, as setout in the ToR, in regard to internal audit. Agree

22. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to the internal audit function.External Audit23. The Committee reviews external audit reports onfindings from financial and internal controls audits andmonitors the implementation of actions being undertakento address recommendations.

Agree

Question Response

2 of 368

24. The Committee discusses significant findings fromthe financial and internal controls audits with the externalauditor.

Agree

25. The Committee has effectively overseen Council’srelationship with the external auditor, including overallperformance; appointment, terms of engagement;independence and objectivity; qualifications, expertiseand resources.

Agree

26. The Committee has achieved its objectives, as setout in the ToR, in regard to external audit. Agree

27. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to external audit and the relationship withthe external auditor.Whistle BlowingThe Committee has achieved its objectives, as set out inthe ToR, in regard to whistleblowing. Neither agree nor disagree

29. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to whistleblowing.Annual Performance ReviewThe Committee’s annual performance review process iseffective and adds value. Agree


Other32. Please provide any other comments or feedback thatyou would like to make in relation to the performance ofthe Committee, its achievement of the objectives of theTerms of Reference and compliance with the LocalGovernment Act.

Question Response

3 of 369

Audit Committee AnnualPerformance Survey


Receipt number: 5

Question ResponseIntroductionEstablishment of the Committee and Membership1. The Terms of Reference (ToR) of the Committee provideclear direction on the role, function and powers of theCommittee and its oversight responsibilities on behalf ofCouncil.

Agree


3. The Committee, as a whole, is adequately qualified andappropriate to discharge its responsibilities on behalf ofCouncil.

Agree

4. Please provide any comments or feedback that you mayhave in relation to the Committee’s ToR or membership.

Keen to take advantage of theexpertise available to ensure thatCOB practices are more thanadequate and strive to best knownpractice.

Meetings and Agendas5. The arrangements for Committee meetings are adequateand appropriate. Agree

6. The appropriate internal and external stakeholders attendmeetings as necessary and add value to the Committee’sdiscussions.

Agree

7. The papers provided to the Committee are appropriateand sufficient to enable informed discussion and decisionmaking at meetings.

Agree

8. The forward work plan is appropriate and comprehensiveenough to ensure the Committee executes itsresponsibilities in accordance with the ToR.

Agree

9. Please provide any comments or feedback that you mayhave in relation to the arrangements for Committeemeetings and the annual work plan.Financial Reporting and Sustainability10. The Committee has adequate opportunity to review theannual Annual Report (including Financial Statements) toensure that they present fairly the state of affairs of thecouncil and are in accordance with relevant accountingstandards.

Agree

1 of 370

11. The Committee has adequate opportunity to review theLong Term Financial Plan and Budget to ensure that theyare underpinned by sound assumptions and achieveCouncil’s desired targets and ratios.

Agree

12. The Committee has achieved its objectives, as set outin the ToR, in regard to financial reporting andsustainability.

Agree

13. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to financial reporting and sustainability.Internal Controls and Risk Management14. The Committee has reviewed Council’s risk profile andthe processes implemented to monitor and manage riskexposures.

Agree

15. The internal financial control self-assessment processand the external auditor’s internal control audit providesufficient assurance that the financial controls areadequate and operating as intended.

Agree

16. The Committee has achieved its objectives, as set outin the ToR, in regard to internal control and riskmanagement systems.

Agree

17. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to internal controls and risk management.

Same as before. Need to aimbeyond adequate and need topush committee members tocontribute to that end.

Internal Audit18. The activities in the internal audit work plan adequatelyaddress areas of risk and provide assurance to theCommittee and Council.

Agree


Agree

20. The level of reporting regarding internal audit activities,the outcomes of internal audits and the implementation ofactions is appropriate.

Agree

21. The Committee has achieved its objectives, as set outin the ToR, in regard to internal audit. Agree

22. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to the internal audit function.External Audit23. The Committee reviews external audit reports onfindings from financial and internal controls audits andmonitors the implementation of actions being undertaken toaddress recommendations.

Agree

Question Response

2 of 371

24. The Committee discusses significant findings from thefinancial and internal controls audits with the externalauditor.

Agree

25. The Committee has effectively overseen Council’srelationship with the external auditor, including overallperformance; appointment, terms of engagement;independence and objectivity; qualifications, expertise andresources.

Agree

26. The Committee has achieved its objectives, as set outin the ToR, in regard to external audit. Agree

27. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to external audit and the relationship withthe external auditor.Whistle BlowingThe Committee has achieved its objectives, as set out inthe ToR, in regard to whistleblowing. Neither agree nor disagree

29. Please provide any comments or feedback that youmay have in relation to the Committee’s consideration ofmatters related to whistleblowing.

To my recollection it is not amatter that was squarelycontemplated and addressed but Imay be wrong.

Annual Performance ReviewThe Committee’s annual performance review process iseffective and adds value. Agree


Other32. Please provide any other comments or feedback thatyou would like to make in relation to the performance of theCommittee, its achievement of the objectives of the Termsof Reference and compliance with the Local GovernmentAct.

What does I am not a robotmean?

Question Response

3 of 372

ECM Tracking No. 1167336 Page 1 of 8

Audit Committee

Terms of Reference 1. Establishment

1.1 Resolution C8044 of 14 December 2010: The Audit Committee of Council is established under Section 41 of the Local Government Act 1999 (the Act), for the purposes of Section 126 of the Act and in compliance with regulation 17 of the Local Government (Financial Management) Regulations 2011.

1.2 The Audit Committee does not have executive powers or authority to implement

actions in areas which management has responsibility and does not have any delegated financial responsibility. The Audit Committee does not have any management functions and is therefore independent from management.

2. Objectives

2.1 The Audit Committee is established to assist the co-ordination of relevant activities of management, the internal audit function and the external auditor to facilitate achieving overall organisational objectives in an efficient and effective manner.

2.2 As part of Council’s Governance obligations to its community, Council has constituted an Audit Committee to facilitate:

2.2.1 the enhancement of the credibility and objectivity of internal and external

financial reporting;

2.2.2 effective management of financial and other risks and the protection of Council assets;

2.2.3 compliance with laws and regulations as well as use of best practice and

Governance guidelines;

2.2.4 the effectiveness of any audit functions; and

2.2.5 the provision of an effective means of communication between the external auditor, management and the Council.

3. Membership

3.1 Members of the Committee are appointed by the Council and the Committee shall have a maximum of five members, with at least two of these being Independent Members.

3.2 The Council may also appoint an Elected Member as a Proxy Member to the Committee for the purpose of filling in for another Elected Member who is a member of the Committee and is unable to attend a Committee meeting or part of a Committee meeting.

3.1 . The Committee shall be five of whom a majority shall be persons who are not members of Council (“the Independent Members”).

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City of Burnside – Audit Committee – Terms of Reference


3.23.3 Ideally, the non-Mayor Elected Member representative/s will have

experience in business, legal, audit, risk management, governance or financial management.

3.33.4 That the Mayor, if not a member on an ex officio basis, is to be a member

of the Audit Committee.

3.43.5 The Independent Members of the Committee must have recent and relevant financial, risk management, internal audit experience relevant to the functions of Council’s Audit Committee as determined by Council.

3.6 Only members of the Committee are entitled to vote in Committee meetings. Unless otherwise required (by the conflict of interest provisions in the Act) not to vote, each member must vote on every matter that is before the Committee for decision. The Presiding Member has a deliberative vote but does not, in the event of an equality of votes, have a casting vote.

3.7 3.53.8 The Proxy Member is only entitled to vote where an Elected Member

who is a member of the Committee due to non-attendance, has delegated his or her voting power to the Proxy representative.

3.63.9 All decisions of the Committee shall be made on the basis of a majority

decision of the members present.

3.73.10 In the event of a tied vote where the members have not made a decision, the question is neither carried nor lost. If a vote is tied the matter may be referred back to the Committee (either with or without additional information to inform the debate and decision making) or referred to Council for a resolution.

3.83.11 The Chief Executive Officer and other Council employees as directed by

the Chief Executive Officer may attend any meeting as observers and/or be responsible for preparing papers for the Committee.

3.93.12 Council’s external auditor may attend meetings where the interim and/or

draft annual financial report and results are being considered. The external auditor must meet with the Committee, at least annually, without management being present; to discuss the Council’s financial statements and any issues arising from their audits.

3.103.13 Council’s internal auditors may also attend any meeting where any of the internal audit reports are being discussed but must meet with the Audit Committee at least annually , without management being present; to discuss the Council’s internal audit plan and any issues arising from their audits.

3.113.14 Elected Member appointments to the Committee shall be for a period of twelve months from the date of appointment, or until the end of the term of the Council. Elected Members are eligible for reappointment at the end of their term.

3.123.15 Independent Members appointment to the Committee shall be for a

period of three years from the date of appointment. To provide continuity, the terms of the Independent Members will overlap on a three-year rotation, with one Independent Member being sought, through an expression of interest and interview process, in November of each year. Independent Members are eligible for reappointment at the end of their term for a maximum of two consecutive terms.

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4. Presiding Member

4.1 In November each year, following the appointment of an Independent Member,

the Independent Members will be invited to provide Council with an Expression of Interest for the position of the Presiding Member.

4.2 The Presiding Member will be appointed by Council for a period of at least twelve months, unless agreed otherwise by Council. The period of twelve months will extend from the date of appointment, unless their term is due to expire within that period in which case the appointment will be until the date their appointment as an Independent Member is due to expire. The outgoing Presiding Member will be eligible for reappointment to the position.

4.3 No Deputy Presiding Member will be elected and an Acting Presiding Member

(Chair) will be nominated at the meeting should the Presiding Member be unable to attend.

5. Sitting Fees

5.1 The Independent Members are to be paid a sitting fee, per meeting attended, as determined by Council.

5.2 The annual allowance for an Independent Member who is the Presiding Member

of the Audit Committee will be equal to one and a quarter (1.25) times the Independent Member sitting fee per meeting, as determined by Council.

6. Secretarial Resources

6.1 The Chief Executive Officer shall provide sufficient administrative resources to the Committee to enable it to adequately carry out its functions.

7. Quorum 7.1 The quorum for a meeting of the Audit Committee shall be three, of whom at

least onetwo must be an independent members.

8. Frequency of Meetings 8.1 The Committee shall meet at 6.00pm on a day to be specified by the Audit

Committee in February, April, June, August, October and November or as otherwise determined by Council (whether as the result of a motion upon notice in or an Officer’s Report to Council).

8.2 The minutes of each meeting must specify the date and time of the next ordinary meeting of the Committee.

8.3 A special meeting of the Committee may be called in accordance with the Act.

9. Notice of Meetings

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9.1 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 and observers, no later than three (3) clear days before the date of the meeting in accordance with Section 87 of the Act. Supporting papers shall be sent to Committee members (and to other attendees as appropriate) at the same time.

10. Minutes of Meetings

10.1 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 the requirements of the Local Government (Procedures at Meetings) Regulations 2000.

10.2 Minutes of Committee meetings shall be circulated within five (5) days after a meeting to all members of the Committee and members of the Council (in accordance with Section 91(3) of the Act).

10.3 Detailed ‘Meeting Procedure Protocols’ have been included within Schedule 1 to this Terms of Reference.

11. Role of the Committee

The Committee is charged with enquiring into and making recommendations to the Council where necessary with respect of the following matters:

11.1 Financial Reporting and Sustainability

11.1.1 review the Annual Report including the Annual Financial Statements and application of accounting policies and provide opinion to the Council on whether they present fairly the state of affairs of Council;

11.1.2 review and make recommendations to the Council regarding the assumptions, financial ratios and financial targets in the Long Term

Financial Plan;

11.1.3 provide commentary and advice on the financial sustainability of Council and any risks in relation to, and as part of the adoption of the Long Term Financial Plan, Annual Budget and periodic Budget Reviews;

11.1.4 review and provide recommendations and comment to the Council on Council’s Asset Management Plans;

11.1.5 review and make recommendations to the Council regarding any other

significant financial, accounting and reporting issues as deemed necessary by the Committee, Council or Administration;

11.1.6 consider and provide comment on the financial and risk related issues associated with any Council business referred to it by the Council for such comment; and

11.1.7 review and provide feedback on Council’s key financial and risk management policies.

11.2 Internal Controls and Risk Management

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The Committee shall:

11.2.1 monitor and review the performance and adequacy of Council's Risk Management Framework and Strategic Risk Register for identifying, monitoring and managing significant business risks;

11.2.2 review and monitor management’s responsiveness to managing significant business risks;

11.2.211.2.3 monitor and review the effectiveness of Council’s internal control environment; and

11.2.311.2.4 review and recommend the approval, where appropriate, of any

material to be included in the Annual Report concerning internal controls and risk management;

11.3 Internal Audit


11.3.1 monitor and review the effectiveness of the Council’s internal audit function in the context of the Council’s overall risk management system;

11.3.2 consider and make recommendation on the program of the internal audit

function; 11.3.3 review all reports on the Council’s operations as a result of the internal

audit performed; and 11.3.4 review and monitor management’s responsiveness to the findings and

recommendations.

11.4 External Audit


11.4.1 oversee Council’s engagement with the external auditor including, but not limited to, assessing the external auditor’s qualifications and expertise, recommending the approval of the external auditor’s remuneration and terms of engagement, assessing the external auditor’s independence and objectivity and monitoring the external auditor’s compliance with legislative requirements on the rotation of audit partners;

11.4.2 consider and make recommendations to the Council, in relation to the

appointment, re-appointment and removal of the Council’s external auditor. If an auditor resigns, the Committee shall investigate the issues leading to this and decide whether any action is required;

11.4.3 review and make recommendations on the annual audit plan, and in

particular its consistency with the scope of the external audit engagement as well as the internal audit plan;

11.4.4 review the findings of the audit paying particular attention to any

accounting and audit judgements, any adjusted or unadjusted differences and any other significant issues arising from the audit;

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11.4.5 review any representation letter requested by the external auditor before

they are signed by management; and

11.4.6 review Administration’s response to reviews, recommendations and

audit letters provided by the External Auditor.

11.5 Whistle blowing

The Committee shall review Council’s Whistleblowing Policy and the Council’s arrangements for its employees to raise concerns, in confidence, about possible wrongdoing in financial recording or reporting or other matters. The Committee shall ensure these arrangements allow independent investigation of such matters and appropriate follow-up action.

11.6 Other Investigations

The Committee shall, when necessary, propose and review the exercise of Council’s powers under Section 130A of the Local Government Act 1999, in relation to the conduct of Economy Audits that would not otherwise be addressed or included as part of an annual External Audit.

11.7 Regional Subsidiaries

In accordance with Section 126(4) of the Act, the functions of the Audit Committee include, if the council has exempted a subsidiary from the requirement to have an audit committee, the functions that would, apart from the exemption, have been performed by the subsidiary’s audit committee.

12. Reporting Requirements

12.1 In accordance with Section 41(8) of the Act, the Committee shall after every

meeting forward the minutes of that meeting to the next meeting of the Council. 12.2 The Committee shall make recommendations to the Council as it deems

appropriate on any area within these Terms of Reference where in its view action or improvement is needed. The Presiding Member shall attend these meetings and talk on these matters, as and when required.

12.3 At least annually, the Presiding Member (and/or other Independent Members as appropriate) of the Audit Committee shall present to Council on the Audit Committee’s view in relation to the key areas of responsibility under these Terms of Reference .

12.4 Audit Committee Independent Members attending Council will be paid a sitting fee for their attendance.

12.5 The Committee shall report annually to the Council summarising the activities of the Committee during the previous financial year.

13. Conduct and Disclosure of Interests

13.1 Members of the Committee must comply with the conduct and conflict of interest provisions of the Act. In particular Sections 62 (general duties), 63 (code of conduct) and 73-74 (conflict of interest, members to disclose interests) must be adhered to.

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14. Register of Interest

14.1 Section 64 of the Act (interpretation) applies to the members of the Committee.

15. Delegations

15.1 Council may delegate additional matters that are within the scope of these Terms of Reference to the Committee in accordance with Section 41 of the Act.

16. Reimbursement of Expenses

16.1 Reimbursement of Expenses incurred by members of the Committee will be paid

in accordance with the Council's "Elected Members' Allowances and Benefits Policy".

17. Public Access to Meetings

17.1 In accordance with the principles of open, transparent and informed decision making Committee meetings must be conducted in a place open to the public. Members of the public are able to attend all meetings of the Committee, unless prohibited by resolution of the Committee under the confidentiality provisions of Section 90 of the Act.

18. Live Streaming of Audit Committee Meetings

18.1 As far as practicable and with the assistance of the City of Burnside

Administration, meetings of the Audit Committee will be live streamed. 18.2 The live streaming will be both audio and video and will be powered by YouTube. 18.3 The record keeping procedures will be determined by the City of Burnside

Administration. 18.4 The live streaming and each live stream will be available to the public in

perpetuity. 18.5 All attendees (prospective and actual) at Audit Committee meetings will be

advised that the vision of the meeting will be available in perpetuity. 18.6 The live stream will be discontinued at the point of the meeting where the public

will be excluded from the meeting.

18.19. Public Access to Documents

18.119.1 Members of the public have access to all documents relating to the Committee unless prohibited by resolution of the Committee under the confidentiality provisions of Section 91 of the Act.

19.20. Other Matters


19.120.1 Have access to reasonable resources in order to carry out its duties; (subject to any such budget allocation being approved by Council.)

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19.220.2 Be provided with appropriate and timely training, both in the form of an

induction programme for new members and on an ongoing basis for all members;

19.320.3 Give due consideration to the Act; and regulations made under the Act;

19.420.4 Oversee any investigation of activities which are within its terms of reference; and

19.520.5 At least once a year, review its own performance, constitution and terms

of reference to ensure it is operating at maximum effectiveness and recommend changes it considers necessary to the Council for approval.

Document history

Date Resolution number 14/12/2010 C8044 27/04/2011 C8220 22/11/2011 C8496 28/08/2012 C8840 10/12/2013 C9530 25/02/2014 11/03/2014 13/05/2014 24/11/2014 24/11/2015 28/11/2017

C9600 C9622 C9709 C9946

C10457 C11512

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Audit Committee

Terms of Reference 1. Establishment

1.1 Resolution C8044 of 14 December 2010: The Audit Committee of Council is established under Section 41 of the Local Government Act 1999 (the Act), for the purposes of Section 126 of the Act and in compliance with regulation 17 of the Local Government (Financial Management) Regulations 2011.

1.2 The Audit Committee does not have executive powers or authority to implement

actions in areas which management has responsibility and does not have any delegated financial responsibility. The Audit Committee does not have any management functions and is therefore independent from management.

2. Objectives

2.1 The Audit Committee is established to assist the co-ordination of relevant activities of management, the internal audit function and the external auditor to facilitate achieving overall organisational objectives in an efficient and effective manner.

2.2 As part of Council’s Governance obligations to its community, Council has constituted an Audit Committee to facilitate:

2.2.1 the enhancement of the credibility and objectivity of internal and external

financial reporting;

2.2.2 effective management of financial and other risks and the protection of Council assets;

2.2.3 compliance with laws and regulations as well as use of best practice and

Governance guidelines;

2.2.4 the effectiveness of any audit functions; and

2.2.5 the provision of an effective means of communication between the external auditor, management and the Council.

3. Membership

3.1 Members of the Committee are appointed by the Council and the Committee shall have a maximum of five members, with at least two of these being Independent Members.

3.2 The Council may also appoint an Elected Member as a Proxy Member to the Committee for the purpose of filling in for another Elected Member who is a member of the Committee and is unable to attend a Committee meeting or part of a Committee meeting.

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3.3 Ideally, the non-Mayor Elected Member representative/s will have experience in business, legal, audit, risk management, governance or financial management.

3.4 That the Mayor, if not a member on an ex officio basis, is to be a member of the

Audit Committee.

3.5 The Independent Members of the Committee must have recent and relevant financial, risk management, internal audit experience relevant to the functions of Council’s Audit Committee as determined by Council.

3.6 Only members of the Committee are entitled to vote in Committee meetings. Unless otherwise required (by the conflict of interest provisions in the Act) not to vote, each member must vote on every matter that is before the Committee for decision. The Presiding Member has a deliberative vote but does not, in the event of an equality of votes, have a casting vote.

3.7 The Proxy Member is only entitled to vote where an Elected Member who is a member of the Committee due to non-attendance, has delegated his or her voting power to the Proxy representative.

3.8 All decisions of the Committee shall be made on the basis of a majority decision

of the members present.

3.9 In the event of a tied vote where the members have not made a decision, the question is neither carried nor lost. If a vote is tied the matter may be referred back to the Committee (either with or without additional information to inform the debate and decision making) or referred to Council for a resolution.

3.10 The Chief Executive Officer and other Council employees as directed by the

Chief Executive Officer may attend any meeting as observers and/or be responsible for preparing papers for the Committee.

3.11 Council’s external auditor may attend meetings where the interim and/or draft

annual financial report and results are being considered. The external auditor must meet with the Committee, at least annually, without management being present; to discuss the Council’s financial statements and any issues arising from their audits.

3.12 Council’s internal auditors may also attend any meeting where any of the internal audit reports are being discussed but must meet with the Audit Committee at least annually, without management being present; to discuss the Council’s internal audit plan and any issues arising from their audits.

3.13 Elected Member appointments to the Committee shall be for a period of twelve months from the date of appointment, or until the end of the term of the Council. Elected Members are eligible for reappointment at the end of their term.

3.14 Independent Members appointment to the Committee shall be for a period of

three years from the date of appointment. To provide continuity, the terms of the Independent Members will overlap on a three-year rotation, with one Independent Member being sought, through an expression of interest and interview process, in November of each year. Independent Members are eligible for reappointment at the end of their term for a maximum of two consecutive terms.

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4. Presiding Member

4.1 In November each year, following the appointment of an Independent Member, the Independent Members will be invited to provide Council with an Expression of Interest for the position of the Presiding Member.

4.2 The Presiding Member will be appointed by Council for a period of at least twelve months, unless agreed otherwise by Council. The period of twelve months will extend from the date of appointment, unless their term is due to expire within that period in which case the appointment will be until the date their appointment as an Independent Member is due to expire. The outgoing Presiding Member will be eligible for reappointment to the position.

4.3 No Deputy Presiding Member will be elected and an Acting Presiding Member

(Chair) will be nominated at the meeting should the Presiding Member be unable to attend.

5. Sitting Fees

5.1 The Independent Members are to be paid a sitting fee, per meeting attended, as determined by Council.

5.2 The annual allowance for an Independent Member who is the Presiding Member

of the Audit Committee will be equal to one and a quarter (1.25) times the Independent Member sitting fee per meeting, as determined by Council.

6. Secretarial Resources

6.1 The Chief Executive Officer shall provide sufficient administrative resources to the Committee to enable it to adequately carry out its functions.

7. Quorum 7.1 The quorum for a meeting of the Audit Committee shall be three, of whom at

least two must be independent members.

7.2 If Committee Membership consists of only two independent members, the quorum for a meeting shall be three, of whom at least one must be an independent member.

8. Frequency of Meetings 8.1 The Committee shall meet at 6.00pm on a day to be specified by the Audit

Committee in February, April, June, August, October and November or as otherwise determined by Council (whether as the result of a motion upon notice in or an Officer’s Report to Council).

8.2 The minutes of each meeting must specify the date and time of the next ordinary meeting of the Committee.

8.3 A special meeting of the Committee may be called in accordance with the Act.

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9. Notice of Meetings

9.1 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 and observers, no later than three (3) clear days before the date of the meeting in accordance with Section 87 of the Act. Supporting papers shall be sent to Committee members (and to other attendees as appropriate) at the same time.

10. Minutes of Meetings

10.1 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 the requirements of the Local Government (Procedures at Meetings) Regulations 2000.

10.2 Minutes of Committee meetings shall be circulated within five (5) days after a meeting to all members of the Committee and members of the Council (in accordance with Section 91(3) of the Act).

10.3 Detailed ‘Meeting Procedure Protocols’ have been included within Schedule 1 to this Terms of Reference.

11. Role of the Committee

The Committee is charged with enquiring into and making recommendations to the Council where necessary with respect of the following matters:

11.1 Financial Reporting and Sustainability

11.1.1 review the Annual Report including the Annual Financial Statements and application of accounting policies and provide opinion to the Council on whether they present fairly the state of affairs of Council;

11.1.2 review and make recommendations to the Council regarding the assumptions, financial ratios and financial targets in the Long Term

Financial Plan;

11.1.3 provide commentary and advice on the financial sustainability of Council and any risks in relation to, and as part of the adoption of the Long Term Financial Plan, Annual Budget and periodic Budget Reviews;

11.1.4 review and provide recommendations and comment to the Council on Council’s Asset Management Plans;

11.1.5 review and make recommendations to the Council regarding any other

significant financial, accounting and reporting issues as deemed necessary by the Committee, Council or Administration;

11.1.6 consider and provide comment on the financial and risk related issues associated with any Council business referred to it by the Council for

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such comment; and

11.1.7 review and provide feedback on Council’s key financial and risk management policies.

11.2 Internal Controls and Risk Management


11.2.1 monitor and review the performance and adequacy of Council's Risk Management Framework and Strategic Risk Register for identifying, significant business risks;

11.2.2 review and monitor management’s responsiveness to managing significant business risks;

11.2.3 monitor and review the effectiveness of Council’s internal control environment; and

11.2.4 review and recommend the approval, where appropriate, of any material

to be included in the Annual Report concerning internal controls and risk management;

11.3 Internal Audit


11.3.1 monitor and review the effectiveness of the Council’s internal audit function in the context of the Council’s overall risk management system;

11.3.2 consider and make recommendation on the program of the internal audit

function; 11.3.3 review all reports on the Council’s operations as a result of the internal

audit performed; and 11.3.4 review and monitor management’s responsiveness to the findings and

recommendations.

11.4 External Audit


11.4.1 oversee Council’s engagement with the external auditor including, but not limited to, assessing the external auditor’s qualifications and expertise, recommending the approval of the external auditor’s remuneration and terms of engagement, assessing the external auditor’s independence and objectivity and monitoring the external auditor’s compliance with legislative requirements on the rotation of audit partners;

11.4.2 consider and make recommendations to the Council, in relation to the

appointment, re-appointment and removal of the Council’s external auditor. If an auditor resigns, the Committee shall investigate the issues leading to this and decide whether any action is required;

11.4.3 review and make recommendations on the annual audit plan, and in

particular its consistency with the scope of the external audit engagement as well as the internal audit plan;

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11.4.4 review the findings of the audit paying particular attention to any

accounting and audit judgements, any adjusted or unadjusted differences and any other significant issues arising from the audit;

11.4.5 review any representation letter requested by the external auditor before

they are signed by management; and

11.4.6 review Administration’s response to reviews, recommendations and

audit letters provided by the External Auditor.

11.5 Whistle blowing

The Committee shall review Council’s Whistleblowing Policy and Council’s arrangements for its employees to raise concerns, in confidence, about possible wrongdoing in financial recording or reporting or other matters. The Committee shall ensure these arrangements allow independent investigation of such matters and appropriate follow-up action.

11.6 Other Investigations

The Committee shall, when necessary, propose and review the exercise of Council’s powers under Section 130A of the Local Government Act 1999, in relation to the conduct of Economy Audits that would not otherwise be addressed or included as part of an annual External Audit.

11.7 Regional Subsidiaries

In accordance with Section 126(4) of the Act, the functions of the Audit Committee include, if the council has exempted a subsidiary from the requirement to have an audit committee, the functions that would, apart from the exemption, have been performed by the subsidiary’s audit committee.

12. Reporting Requirements

12.1 In accordance with Section 41(8) of the Act, the Committee shall after every

meeting forward the minutes of that meeting to the next meeting of the Council. 12.2 The Committee shall make recommendations to the Council as it deems

appropriate on any area within these Terms of Reference where in its view action or improvement is needed. The Presiding Member shall attend these meetings and talk on these matters, as and when required.

12.3 At least annually, the Presiding Member (and/or other Independent Members as appropriate) of the Audit Committee shall present to Council on the Audit Committee’s view in relation to the key areas of responsibility under these Terms of Reference.

12.4 Audit Committee Independent Members attending Council will be paid a sitting fee for their attendance.

12.5 The Committee shall report annually to the Council summarising the activities of the Committee during the previous financial year.

13. Conduct and Disclosure of Interests

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13.1 Members of the Committee must comply with the conduct and conflict of interest provisions of the Act. In particular Sections 62 (general duties), 63 (code of conduct) and 73-74 (conflict of interest, members to disclose interests) must be adhered to.

14. Register of Interest

14.1 Section 64 of the Act (interpretation) applies to the members of the Committee.

15. Delegations

15.1 Council may delegate additional matters that are within the scope of these Terms of Reference to the Committee in accordance with Section 41 of the Act.

16. Reimbursement of Expenses

16.1 Reimbursement of Expenses incurred by members of the Committee will be paid

in accordance with the Council's "Elected Members' Allowances and Benefits Policy".

17. Public Access to Meetings

17.1 In accordance with the principles of open, transparent and informed decision

making Committee meetings must be conducted in a place open to the public. Members of the public are able to attend all meetings of the Committee, unless prohibited by resolution of the Committee under the confidentiality provisions of Section 90 of the Act.

18. Live Streaming of Audit Committee Meetings

18.1 As far as practicable and with the assistance of the City of Burnside

Administration, meetings of the Audit Committee will be live streamed. 18.2 The live streaming will be both audio and video and will be powered by YouTube. 18.3 The record keeping procedures will be determined by the City of Burnside

Administration. 18.4 The live streaming and each live stream will be available to the public in

perpetuity. 18.5 All attendees (prospective and actual) at Audit Committee meetings will be

advised that the vision of the meeting will be available in perpetuity. 18.6 The live stream will be discontinued at the point of the meeting where the public

will be excluded from the meeting.

19. Public Access to Documents

19.1 Members of the public have access to all documents relating to the Committee unless prohibited by resolution of the Committee under the confidentiality provisions of Section 91 of the Act.

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20. Other Matters


20.1 Have access to reasonable resources in order to carry out its duties; (subject to any such budget allocation being approved by Council.)

20.2 Be provided with appropriate and timely training, both in the form of an induction programme for new members and on an ongoing basis for all members;

20.3 Give due consideration to the Act; and regulations made under the Act;

20.4 Oversee any investigation of activities which are within its terms of reference; and

20.5 At least once a year, review its own performance, constitution and terms of reference to ensure it is operating at maximum effectiveness and recommend changes it considers necessary to the Council for approval.

Document history

Date Resolution number 14/12/2010 C8044 27/04/2011 C8220 22/11/2011 C8496 28/08/2012 C8840 10/12/2013 C9530 25/02/2014 11/03/2014 13/05/2014 24/11/2014 24/11/2015 28/11/2017

C9600 C9622 C9709 C9946

C10457 C11512

88

Audit Committee Agenda Item 5.3 18 February 2019

Item No: 5.3 To: Audit Committee Date: 18 February 2019 Author: Karishma Reynolds – Group Manager, Finance and Governance General Manager and Division


Subject: REVIEW OF THE INTERNAL AUDIT PLAN Attachments: A. Internal Audit Plan 2018/19 – 2021/22

B. Internal Audit Survey Prev. Resolution: A4063, 20/2/17



2. That the Internal Audit Plan 2018/19 – 2021/22 be endorsed by the Audit Committee and forwarded to Council for consideration and adoption.

Purpose

1. To provide the Audit Committee with a revised Internal Audit Plan 2018/19 – 2021/22 and seek feedback on the proposed projects planned for each of the financial years.

2. To seek a recommendation from the Committee to forward the document to Council for consideration and adoption.

Strategic Plan

3. The following Strategic Plan provisions are relevant:




4. Consultation has been undertaken with:

4.1. Executive Team and key internal stakeholders;

4.2. Council’s external auditors Dean Newbery and Partners;

4.3. Members of the South Australian Local Government Internal Auditors Network (SALGIAN); and

4.4. Council’s internal auditors, Galpins.

Statutory


Local Government Act 1999

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Policy

6. There are no policy implications or requirements associated with this recommendation.

Risk Assessment

7. An Internal Audit Plan is essential for good corporate governance and will help manage strategic risks faced by Council. Failure to implement the recommendations arising from internal audit projects may also result in lost opportunities to achieve performance improvements in effectiveness and efficiency.

Finance

8. Failure to implement the recommendations arising from internal audit projects may result in business inefficiencies and lost opportunities and could potentially lead to financial loss.

9. The internal audit work will be undertaken by external specialists and has been included within the 2018/19 Budget.

Discussion

10. The Local Government Act 1999 and the Local Government (Financial Management) Regulations 2011 requires the:

10.1. Chief Executive Officer and the Mayor of the Council to certify the effectiveness of financial internal controls; and

10.2. statutory auditor of the Council to undertake an audit of the controls exercised by the Council during the relevant financial year.

11. The role of the Internal Audit function in assisting the Council to obtain assurance over the effectiveness of its financial internal controls is reflected in the inclusion of Financial Internal Controls Reviews.

12. The City of Burnside’s Internal Audit Plan (Attachment A) requires approval from the following authorities:

12.1. Council Executive;

12.2. Audit Committee; and

12.3. Elected Members.

13. Internal Audits completed/commenced in 2016-2018 have been listed below and the actions register is presented as part of the Agenda for this meeting.

13.1. Internal Financial Controls;

13.2. Legislative Compliance Audit - Records Management;

13.3. Logical Security Audit;

13.4. Procurement Audit;

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13.5. Work, Health and Safety Health Check;

13.6. Public Health Plan;

13.7. Bushfire Management Audit;

13.8. Legislative Compliance Audit (currently being finalised and will be tabled at the next Audit Committee meeting); and

13.9. Major Project Review (currently being finalised and will be tabled at the next Audit Committee meeting).

14. The City of Burnside’s 2018/19 – 2021/22 Internal Audit Plan presents the proposed internal audit projects for each financial year. A detailed project scope document will be developed prior to the commencement of individual projects

15. The objective of these internal audit projects is to enhance the business performance of the City of Burnside by reviewing existing business processes and recommending improvements in process effectiveness, efficiency and economy.

16. These audit projects are expected to strengthen the effectiveness of risk management, governance and internal controls.

17. This defined focus of internal audit projects demands that the Internal Audit Plan should be primarily based on the risk profile of the City of Burnside. Council Administration has recently reviewed its Strategic Risk Register and this served as the primary source in the determination of the Internal Audit Plan.

18. Secondary sources considered in the development of the 2018/19 – 2021/22 Internal Audit Plan included:

18.1. the external auditor’s recommendations contained in their reports to Council;

18.2. consultation with the internal audit firm Galpins;

18.3. an internal audit questionnaire sent to Council’s Leadership Team (refer Attachment B);

18.4. outstanding audit projects from the previous 3-Year Internal Audit Plan; and

18.5. a review of audits being performed by other Councils.

19. Subsequent to its adoption, the Internal Audit Plan will be revised at the end of each financial year against the City of Burnside’s Risk Register which is also revised annually.

20. These revisions may result in variations as the risk profile or business objectives for the Council mature further. Any proposed variations will be presented to the Audit Committee for consideration prior to any amendments beings made to the endorsed Internal Audit Plan.

Internal Audit Project Reporting

21. All reports arising from internal audit projects will be presented to the Executive Team, Audit Committee and Council.

22. A status report on the progress of internal audit projects and implementation of recommendations will be presented on a bi-annual basis at Audit Committee meetings.

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Resourcing

23. The City of Burnside’s Internal Audit Plan is to be delivered through the engagement of external specialist resources.

24. The order of departments for internal audit projects may be subject to change depending on business needs and resources available at the time of scheduling.

Conclusion

25. The Internal Audit Plan 2018/19 – 2021/22 (Attachment A) is provided to the Audit Committee for consideration and endorsement to enable Council adoption.

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CITY OF BURNSIDE

INTERNAL AUDIT PLAN 2018/19 - 2021/22

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Contents Objective .............................................................................................................................................................................................................. 1

Methodology ........................................................................................................................................................................................................ 1

Approval and Revision ......................................................................................................................................................................................... 1

Internal Audit Process .......................................................................................................................................................................................... 2

Reporting ............................................................................................................................................................................................................. 2

Internal Audit Plan ................................................................................................................................................................................................ 3

Appendix I: Strategic Risk Register .................................................................................................................................................................... 12

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Objective The City of Burnside’s four-year Internal Audit Plan presents the proposed internal audit projects for the 2018/19 to 2021/22 financial years.

The objective of these internal audit projects is to enhance the business performance of the City of Burnside by reviewing existing business processes and recommending improvements in process effectiveness, efficiency and economy. These audit projects are expected to strengthen the effectiveness of risk management, governance and internal controls.

Methodology To ensure that the City of Burnside gains the most value from its internal audit projects, resources allocated to these projects have been directed towards the most significant auditable risks faced by the organisation.

This defined focus of internal audit projects demands that the Internal Audit Plan should be primarily based on the risk profile of the City of Burnside. Council Administration has recently reviewed its strategic risk register and this served as the primary source in the determination of the Internal Audit Plan.

Secondary sources considered in the development of the 3-Year Internal Audit Plan included:

The external auditor’s recommendations contained in their Report to the Council;

Consultation with the internal audit firm Galpins;

An internal audit questionnaire sent to Council’s Leadership Team;

Outstanding audit projects from the previous 3-Year Internal Audit Plan; and

A review of audits being performed by other Councils.

This Internal Audit Plan classifies Projects into the following categories: Strategic Operational Legislative Good Governance

Approval and Revision The City of Burnside’s Internal Audit Plan requires approval from the following authorities:

Council Executive Audit Committee Elected Members

Subsequent to its adoption, the 2018/19 – 2021/22 Internal Audit Plan should be revised at the end of each financial year against the City of Burnside’s risk register which is also revised annually. This ensures that the forthcoming year’s audit projects continue to be focused on the critical business risks impacting the organisation. This revision may result in the introduction of new audit projects,

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removal of some audit projects and / or the re-prioritisation of existing audit projects. Resourcing The City of Burnside’s 2018/19 – 2021/22 Internal Audit Plan is to be delivered through the engagement of external specialist resources.

Internal Audit Process The steps to be followed in performing an audit have been listed below:

Planning Resourcing Fieldwork Agreeing Actions Reporting

Reporting This 2018/19 – 2021/22 Internal Audit Plan has proposed the following reporting framework:

All reports arising from internal audit projects should be presented to the Council Executive, Audit Committee and Elected Members.

A bi-annual status report on the progress of internal audit projects should be presented to the Audit Committee.

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Internal Audit Plan The following internal audit projects have been included in City of Burnside’s 2018/19 – 2021/22 Internal Audit Plan:

No. Internal Audit Project

Description Strategic Risk

Category 2018/19 2019/20 2020/21 2021/22

1 Business Continuity Management

The scope for the work is to uplift the business continuity and crisis management readiness of the Council. The engagement will focus on conducting a Council wide Business Impact Analysis to understand critical business functions and associated dependencies and development of Business Continuity Plans for critical business areas.

A significant unplanned/city emergency/adverse event may prevent the Council from delivering key services/functions Inherent Risk Rating – High

Strategic √

2 Legislative Compliance Review

This audit will assess the adequacy and effectiveness of existing mechanisms by which the organisation is ensuring compliance with relevant legislative, regulatory and other obligations. For each financial year, a different piece of legislation will be reviewed for compliance.

Action of Council or Workers results in significant breach of legislation, Council policies or frameworks. Inherent Risk Rating – High

Legislative √ √ √ √

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Category 2018/19 2019/20 2020/21 2021/22

3 Community Engagement

This audit will assess the adequacy of communication methods used by Council to engage with the community, its effectiveness and outcome.

Agreed strategic targets and objectives not aligned to community expectation Inherent Risk Rating – High Lack of effective transparent governance and decision-making process may result in not meeting community expectations and brand damage. Inherent Risk Rating – Medium

Strategic √

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Category 2018/19 2019/20 2020/21 2021/22

4 Major Project Review

This audit will cover each stage of Council’s major projects such as feasibility, scoping, planning, implementation, transition, and benefits realisation. Audits of major projects may be (i) post-implementation reviews or (ii) health checks which may provide more value as issues are identified and corrective recommendations are proposed whilst the project is being implemented. A different project will be covered each financial year.

Action of Council or Workers results in significant breach of legislation, Council policies or frameworks. Inherent Risk Rating – High

Operational √ √

5 Asset Management

This audit will assess the reasonableness of estimates for useful lives, depreciation rates and management of significant assets and their acquisition, accounting, valuation, tracking, maintenance, renewal, recording and reporting. This audit will also assess the forward – planning process, decision-making and linkages to budgets and financial plans.

Inefficient or inadequate resource planning and allocation may impact the delivery of key council services and management of assets. Inherent Risk Rating – Medium

Strategic √

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Category 2018/19 2019/20 2020/21 2021/22

6 Customer Service Review

This is a performance audit which will review communication protocols, scripting, and relationships with other areas across the council, movement of customer requests from the service centre to different areas within council and dealing with complaints and feedback.

-

Operational

√

7 Long Term Financial Plan

This internal audit will focus on the forward planning process, adequacy of assumptions and linkages to internal and external pressures.

Council may not be able to remain financially stable due to inappropriate management of available funds and/or poor financial planning. Inherent Risk Rating – High

Strategic √

8 Review of outstanding actions

This internal audit will focus on previous audits and how effectively controls have been managed and implemented. This will provide a level of comfort to Leadership and identify any gaps and/ or delays in the implementation of controls.

-

Good Governance √ √

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Category 2018/19 2019/20 2020/21 2021/22

9 Fleet Review

This internal audit will focus on adequacy of assumptions within the Fleet Policies and Protocols. It will also include testing various internal controls including vehicle acquisition, disposal, fuel consumption, vehicle repair and maintenance.

-

Operational √

10 Contract Management

The first audit will assess the Council’s overall management framework in place to manage contractors. It will include consideration of processes in place to manage compliance with contract obligations, supplier performance, relationship management, reporting and risks. The second audit will focus on employment contracts to ensure all terms and conditions are met (in line with the external audit recommendation)

-

Good Governance

√ √

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Category 2018/19 2019/20 2020/21 2021/22

11 Environmental Sustainability

This internal audit will focus on a review of Council’s Sustainability policies and strategies to assess their adequacy and effectiveness.

Planning for and the undertaking of works or provision of services does not maintain or improve the natural environment. Inherent Risk Rating – High

Strategic √

12 Workforce Planning

This internal audit will seek to determine whether the Council has developed and implemented an effective workforce planning program to achieve its goals and maintain and improve the quality of service delivered to its ratepayers.

Knowledge (intellectual property) is lost due to loss of key staff resulting in the inability to deliver key services/functions Inherent Risk Rating – High

Strategic √

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Category 2018/19 2019/20 2020/21 2021/22

13

Controls in offsite locations (Pepper Street/Regal Theatre/Glenunga Hub/Swimming Centre)

This audit will review internal controls over the physical handling of cash at various locations operated by Council. -

Operational

√ √

14 Community Services

This audit will review internal controls over the Community Services functions

Inefficient or inadequate resource planning and allocation may impact the delivery of key council services and management of assets. Inherent Risk Rating – Medium

Strategic √

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Category 2018/19 2019/20 2020/21 2021/22

15 Innovation and Effectiveness Framework

The objective of the audit is to evaluate and report on the adequacy and effectiveness of the Councils IE Framework, including any benefits realisation

-

Operational √

16 Internal Financial Controls

This audit will review for compliance focusing on the remaining unaudited ‘key or core controls’ that formed the Controls Self-Assessment (CSA) Program

-

Good Governance

√

17 Property Management

This audit will review business processes associated with all the facets of the asset life cycle. It will also review compliance with property management policies and procedures and other facets of property management such as maintenance of equipment and subcontractor property control, system and property security

-

Operational

√

4 6 7 7

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It is acknowledged that the Internal Audit Work Program may be subject to variation as the risk profile or business objectives for the Council mature further. Any proposed variations will be presented to the Audit Committee for consideration prior to any amendments being made to the endorsed Internal Audit Plan. As required, Council Executive, the Audit Committee or Elected Members may also request for additional audit projects that were not originally identified in this Internal Audit Plan. The following risks identified in the City of Burnside’s strategic risk register were excluded from the 2018/19 – 2021/22 Internal Audit Plan. It should be emphasised that these risks are however managed and mitigated by Council Administration through other existing mechanisms.

No. Risk Audit

1 Performance of regional subsidiary negatively impacts upon Council Managed through Regional Subsidiary Auditors, Audit Committee and Board

2 Worker or member of the public may be injured as a result of Council activities or using Council assets/facilities

WHS audit conducted every alternate year through the LGA

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Appendix I: Strategic Risk Register An extract from the City of Burnside’s Strategic risk register is reproduced below to assist in the interpretation of audit projects in the 2018/19 – 2021/22 Internal Audit Plan.

Objective - Strategic Community Plan or Corporate Plan

Risk Type Risk Category Risk Description Inherent Risk

Rating Residual Risk Rating

A safe community that value and supports its people Strategic Safety

A significant unplanned/city emergency/adverse event may prevent the Council from delivering key services/functions

High High

Our community is actively engaged and involved in shaping the City's future

Strategic Customer Relations

Agreed strategic targets and objectives not aligned to community expectation High Medium

A financially sound Council that is accountable, responsible and sustainable

Strategic Budget / Financial

Council may not be able to remain financially stable due to inappropriate management of available funds and/or poor financial planning.

High Medium

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Delivery of good governance in Council business Strategic Political

Lack of effective transparent governance and decision-making process may result in not meeting community expectations and brand damage

Medium Medium

Fit for purpose and cost-effective infrastructure that meets community needs

Strategic Safety Worker or member of the public may be injured as a result of Council activities or using Council assets/facilities

High Medium

A financially sound Council that is accountable, responsible and sustainable

Strategic Project

Inefficient or inadequate resource planning and allocation may impact the delivery of key council services and management of assets.

Medium Medium

Environmentally sustainable development which complements the City's character

Strategic Environment

Planning for and the undertaking of works or provision of services does not maintain or improve the natural environment.

High Medium

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Delivery of good governance in Council business Strategic

Legal / Legislation/ Compliance

Action of Council or Workers results in significant breach of legislation, Council policies or frameworks.

High Medium

A respected organisation that is resilient, progressive and adaptable with a culture that encourages well-being, learning and development

Strategic Human Resources Knowledge (intellectual property) is lost due to loss of key staff resulting in the inability to deliver key services/functions

High Medium

Delivery of good governance in Council business Strategic

Legal / Legislation/ Compliance

Performance of regional subsidiary negatively impacts upon Council High Medium

108

80.00% 4

20.00% 1

Q1 Think about the key areas within your portfolio of responsibilities that‘must go right’ and are critical to Council’s success. Are there any issues/ risks in these areas that ‘keep you awake’ at night, where you feel that

you would like increased assurance? Risk is: “The effect of uncertainty onobjectives” (ISO 31000:2009)OR “The probability or threat of negative

outcomes in the future”Answered: 5 Skipped: 0

Total Respondents: 5

# IF YES, PLEASE PROVIDE DETAILS DATE

1 Maybe in 18 months or so an internal audit of the Innovation and Effectiveness Framework &program to see if benefits are being realised, recommendations actioned, and the culture aroundthe framework and whether innovative solutions are actually being achieved and how they arebeing measured.

9/26/2018 5:39 PM

2 safety / contractor management 9/25/2018 2:28 PM

3 Contract Management - in particular evaluation and lessons learnt. Asset Management Plan -currency, accuracy in regards to capture of asset classes, etc. Integration of strategy actions intocorporate plan, annual business plans, budget bids, etc.

9/25/2018 11:04 AM

4 Contract Management. Overall, I feel that not all Managers have a full understanding/awareness ofthe contracts in their areas. We are working on spend analysis reports and Contract vs actualspend reporting but that is more of a detective control. Would be great to have some preventativemeasures as well.

9/25/2018 10:43 AM

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES

Yes

No

1 / 5

City of Burnside- Input Into Internal Audit Plan SurveyMonkey

109

Q2 Do you admire other Councils/organisations for their relativeefficiency/effectiveness in any area, and aspire to improve to be at a

similar level? If yes, can you please provide details of the area where youwould like to see further strengthening.

Answered: 5 Skipped: 0

# RESPONSES DATE

1 Moving from reactive to proactive where practical 10/3/2018 1:12 PM

2 Not my area - but the "engagement/comms space" particularly around utilising different forms ofelectronic platforms such as facebook and online forums, etc. Also in the area of Fleet and plantmanagement - many councils have reduced these significantly.

9/26/2018 5:39 PM

3 nope - I think for the most part we're ahead of the game 9/25/2018 2:28 PM

4 Nothing specific 9/25/2018 11:04 AM

5 We could be more efficient with our legal spend. There may not be a full understanding of howretainers work.

9/25/2018 10:43 AM

2 / 5


110

80.00% 4

20.00% 1

Q3 Have you experienced any large/strategic/key changes in your area ofresponsibility in the last 12-18 months, or do you have significant change

planned for the next 12 months?Answered: 5 Skipped: 0

Total Respondents: 5

# IF SO, DO YOU FEEL THAT THESE CHANGES MAY BENEFIT FROM AN INDEPENDENTREVIEW/ASSURANCE? PLEASE PROVIDE DETAILS.

DATE

1 In the next 12 months we could see the expansion of the Work Order system with O&E providingsystems support for this platform.

10/3/2018 1:12 PM

2 As mentioned above an independent review of the I&E Framework implementation would proveuseful and give the assurance Exec might need to commit further to it?

9/26/2018 5:39 PM

3 Taking on Regal Theatre management - would be good to have a review of current businessoperations and identify areas we may be able to improve

9/25/2018 2:28 PM

4 In the first half of 2020 there could be value in having a look at the management of chain ofresponsibility legislative requirements.

9/25/2018 11:04 AM

5 We have had a recent restructure and I am now responsible for Governance as well. However notsure there would be much value from undertaking a Governance audit. We will however have amajor change with the new body of Elected Members in Nov and that might lead to some keychanges in strategy.

9/25/2018 10:43 AM

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Yes

No

3 / 5


111

60.00% 3

40.00% 2

20.00% 1

20.00% 1

20.00% 1

20.00% 1

40.00% 2

40.00% 2

60.00% 3

40.00% 2

0.00% 0

20.00% 1

Q4 Please consider the following sources of risk and provide commentabout any areas where you perceive there may be value in an

independent review of our activities.Answered: 5 Skipped: 0

# GOVERNANCE DATE

1 The amount of policies we have - do we really need them all - what are legislative, what help usmake decisions and what are just nice to have?

9/26/2018 5:39 PM

2 delegations 9/25/2018 2:28 PM

3 Maybe in 2019/20 9/25/2018 10:43 AM

# PLANNING AND RESOURCE ALLOCATION DATE

1 Underway through Work Orders Stage 2 10/3/2018 1:12 PM

2 Strategy V's actual budget allocation to implement 9/26/2018 5:39 PM

# CHANGE/ MAJOR INITIATIVES DATE

1 Change of business model with Aged Care Services - if we do opt to maintain these services whatare the risks with essentially running a competitive business/service?

9/26/2018 5:39 PM

# COMMUNICATION AND COMMUNITY RELATIONS DATE

1 as above utilistation of online communication platforms, communications and marketing. 9/26/2018 5:39 PM

# EXTERNAL INFLUENCE/ DYNAMICS (GOVERNMENT, COUNCIL) DATE

1 Some focus on subsidiaries might also prove helpful - is that business model really delivering themost effective and efficient service?

9/26/2018 5:39 PM

# PEOPLE/ HR DATE

1 Review of the B-Customer-Wise Program - did it deliver what it set out and if not how can this beimproved - given customer service has been raised as an issue in the Culture Survey?

9/26/2018 5:39 PM

# IT DATE


Governance

Planning and resource allocation

Change/ major initiatives

Communication and community relations

External Influence/ dynamics (government, council)

People/ HR

IT

Assets

Contracts/ procurement/ supply chain

WHS

Legislation

Code of Conduct

4 / 5


112

1 Utilisation of so many different platforms, systems, programs, databases - is taking a EnterpriseMangament pproach more cost effective and more effective/efficient

9/26/2018 5:39 PM

2 IT data security - given the ongoing changing nature of this 9/25/2018 11:04 AM

# ASSETS DATE

1 Asset management plans and planning 9/25/2018 11:04 AM

2 Will definitely benefit from an audit. We have had issues with the useful lives in the system notmatching the actual intervention points

9/25/2018 10:43 AM

# CONTRACTS/ PROCUREMENT/ SUPPLY CHAIN DATE

1 yes - we've recently found some old existing contracts which were less than optimal - this could bereviewed

9/25/2018 2:28 PM

2 Evaluation and lesson learnt and issue of extensions 9/25/2018 11:04 AM

3 Will definitely benefit from an audit. Maybe even an audit on credit cards? 9/25/2018 10:43 AM

# WHS DATE

1 yes, particularly in relation to management of external contractractors 9/25/2018 2:28 PM

2 CoR 9/25/2018 11:04 AM

# LEGISLATION DATE

There are no responses.

# CODE OF CONDUCT DATE

1 yes - how we can address poor behaviour but not waste $ 9/25/2018 2:28 PM

5 / 5


113


Item No: 5.4 To: Audit Committee Date: 18 February 2019 Author: Karishma Reynolds – Group Manager, Finance and Governance General Manager and Division:


Subject: MID YEAR 2018/19 BUDGET UPDATE Attachments: A. Statement of Comprehensive Income

B. Operating Income and Expenditure – Proposed Adjustments C. Statement of Financial Position D. Statement of Cash Flows E. Uniform Presentation of Finances F. Financial Indicators G. Operating Projects Report – Proposed Adjustments H. Capital Projects Report – Proposed Adjustments

Prev. Resolution: C11738, 26/6/18 C11893, 11/12/18



2. That the following variances to the 2018/19 First Quarter Forecast (full year) be endorsed:

2.1 Operating Income net increase of $104,602;

2.2 Operating Expenditure net increase of $156,686;

2.3 Capital Expenditure net increase of $302,705; and

2.4 The resulting Operating / Net Surplus position net decrease of $52,084.

3. That the proposed Mid-Year (Q2) Budget Update for 2018/19 be presented to Council for adoption.

Purpose

1. To provide the Audit Committee with the Mid Year (Q2) Budget Update (as at 31 December 2018) detailing all proposed adjustments to the 2018/19 First Quarter Forecast (full year) to provide an updated forecast of the end of year financial position.

Strategic Plan



115




3.1. Discussions with Department Managers and key staff.

3.2. Discussions with the Finance Department.

3.3. Communication with the Executive Team.

Statutory




Australian Accounting Standards

Policy


Risk Assessment

6. The monitoring of actual results against budget and the update of a full year forecast / revised budget is essential to mitigate the risk of the City of Burnside not remaining a financially accountable and sustainable organisation.

Finance

7. Refer to ‘Discussion’ section below.

Discussion

8. Council adopted the 2018/19 Budget with an Operating Surplus of $477,858 and a Net Surplus of $827,858 at its meeting on 26 June 2018 (C11738).

9. Following the First Budget (Q1) update, the Operating Surplus was amended to $442,656 and the Net Surplus amended to $792,656 (C11893).

10. This Mid-Year (Q2) Forecast proposes to amend the Forecast for 2018/19 to an Operating surplus of $390,572 and a Net Surplus of $740,572.

Operating Surplus ($’000)

Net Surplus ($’000)

Adopted Budget $478 $828

Q1 Forecast $443 $793

Q2 Forecast $391 $741

116


Excess/(Shortfall) as at Q2 (compared to the Adopted Budget)

($87) ($87)

11. Council has been impacted by several cost pressures and the Administration has worked diligently to minimise their effect on the Operating Surplus for Council’s Q2 position however, the overall result is a minor reduction to Council’s Q1 position.

12. The Administration will continue to work to recover the forecast Net Surplus shortfall against the 2018/19 Adopted Budget and provide regular updates on the budget progress within the monthly CEO Reports.

Operating Surplus Adjustments

13. The proposed adjustments to update the 2018/19 Q1 Forecast (full year) are based upon the review of material income and expenditure variances as at 31 December 2018.

14. As shown in Attachment A, the Mid-Year (Q2) proposed adjustments in Operating Activities result in a Forecast Operating Surplus of $390,572, an overall decrease to the Q1 Forecast Operating Surplus position of $52,084.

15. The primary reasons for these movements are as follows:

15.1. Increase of $105k in Operating Income primarily due to:

15.1.1. increase of $46k relating to increased patronage at Council’s community centres, Glenunga Hub and the Regal Theatre (which is partly offset by an increase in costs included below);

15.1.2. additional income received from higher than expected development applications, section 12 applications and litter and nuisance of $29k;

15.1.3. recovery of non-compliance costs per the SA Public Health Act not budgeted for of $12k; and

15.1.4. higher reimbursements received for recovery of legal expenses from an Environment, Resources and Development (ERD) Court matter of $11k.

15.2. Increase of $157k in Operating Expenses primarily due to:

15.2.1. higher electricity costs of $130k previously not budgeted for due to a combination of higher energy rates (kilowatts per hour) and street light service tariffs;

15.2.2. additional costs from Regal Theatre incurred to increase patronage $25k;

15.2.3. higher temporary salary costs relating to positional vacancies of $104k; and

15.2.4. an overall increase in finance costs of $30k primarily due to new borrowings.

15.3. These increases were partly offset with a saving in contractor costs ($70k), savings from unallocated Community Grants ($31k) and savings in traffic maintenance, postage costs and other projects ($50k).

117


15.4. It should be noted that Council was also able to achieve a net saving of $40k in employee costs which has been allocated to the savings target explained in section 20 below.

Capital Adjustments 16. As shown in Attachment H, the Q2 Capital Expenditure proposed adjustments are a net

increase of $303k.

New and Upgraded Assets increase of $618k primarily due to: 16.1. an increase of $1.48 million due to the implementation of the Public Lighting LED

Transition Project presented and endorsed at Council on 14 August 2018 (C11780); and

16.2. an offsetting reduction of $853k in capital expenditure for the Brown Hill Keswick Creek Project as it is formally established as a regional subsidiary and has been recognised through the equity accounting method as a Non-Current Asset.

Renewal and Replacement of Existing Assets decrease of $315k primarily due to:

16.3. a reduction in the Public Lighting Renewal Program Project of $180k because of the new Public Lighting LED Transition Project discussed in section 16.1 above; and

16.4. reductions of $91k due to savings achieved from procurement processes for Plant Replacement, Road Resurfacing and the Streetscape Signal Renewal Project.

Financial Impacts not Included in the Q2 Proposed Adjustments 14. Depreciation Expense: An Infrastructure, Land and Building Revaluation is scheduled

to be undertaken in the 2018/19 financial year. It is expected that this review will be concluded by February 2019 and any resultant financial implications by way of increase/ reduction in depreciation will be included in the Third Quarter Budget Update.

15. Early receipt of the Financial Assistance Grants: At this stage, it has been assumed that the Federal Government will continue with the early provision of the Financial Assistance Grants for 2019/20 as it did for 2018/19. If this prepayment does not occur again for the 2018/19 year, Council’s Operating Surplus could potentially be reduced by $700k. There has been no indication at this stage as to continuation or otherwise and the Administration will keep the Committee and Council informed once more details are available.

16. Quarterly Updates for Regional Subsidiaries: Council has received First Quarter updates from Eastern Health Authority, East Waste and ERA Water and these have been included in the Mid-Year budget review. Any revisions and resultant impacts from Brown Hill Keswick Creek and Highbury Landfill Authority will be presented at the Audit Committee and Council meetings.

Savings Target for 2018/19 17. Consistent with prior years, Council has set itself a savings target of $590k, which is

made up of a target of $345k in Employee costs and $245k in Materials, Contractors and other expenses. As at Q2, Council has realised the following savings:

17.1 $268k of the $345k target within Employee costs. This has been achieved through the Administration’s continued effort to not fill vacancies for a period of

118


two months. Council has an outstanding savings target of $77k for employee costs to achieve in the remainder of this financial year.

17.2 the target of $245k in Materials, Contractors and Other Expenses has already been achieved in the budget setting process by reducing budgets in all departments.

18. The Administration is on target to achieve the savings target and will continue to review and implement initiatives that deliver strong financial performance and saving strategies for the organisation.

Conclusion

19. The Administration recommends that the Audit Committee endorse the proposed Mid-Year (Q2) Budget Update for 2018/19 prior to its presentation to Council on 26 February 2019.

119

Attachment A

$ '000

IncomeRates Revenues 39,177 - - 39,177 Statutory Charges 1,238 - 27 1,265 User Charges 1,910 250 57 2,217 Grants, Subsidies and Contributions 3,783 2 - 3,785 Investment Income 40 - - 40 Reimbursements 301 (8) 51 344 Other Income 281 61 (12) 330 Net Gain - Equity Accounted Council Businesses 11 8 (19) 0

Total Income 46,741 313 105 B1 47,159

ExpensesEmployee Costs 16,086 - - 16,086 Materials, Contracts & Other Expenses 20,009 214 108 20,331 Depreciation, Amortisation & Impairment 9,658 - - 9,658 Finance Costs 383 - 30 413 Net loss - Equity Accounted Council Businesses 127 134 19 280

Total Expenses 46,263 348 157 B2 46,768

Operating Surplus / (Deficit) 478 (35) (52) 391

Asset Disposal & Fair Value Adjustments 150 - 150 Amounts Received for New or Upgraded Assets 50 100 - 150 Physical Resources Received Free of Charge 150 (100) - 50

Net Surplus / (Deficit) 828 (35) (52) 741

Total Comprehensive Income 828 (35) (52) 741

Financial Performance Summary:

Note:*This report contains rounded numbers

The Proposed Q2 Forecast for 2018/19 results in a $391k Operating Surplus compared to the Adopted Budget of $478k.

All proposed Q2 adjustments have been itemised and explained in Attachments B-H. Based on the proposed Q2 adjustments, the year end Net Operating Surplus position of $741k is $87k lower than the Adopted Budget.

City of Burnside

STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 30 June 2019

Adopted Budget

Proposed Q2 Variations

Proposed Q2 Forecast

Q1 Adopted Variations

Notes

120

Attachment B

B. Operating Income & Expenditure - Proposed Adjustments

Amount Notes $000 $000

Operating Income AdjustmentsIncreases in income are primarily due to:

higher than expected planning applications, section 12 and litter and nuisance statutory charges; 29

increased patronage at the Glenunga Hub community centre and the Regal Theatre; 46

recovery of non compliance costs per the SA Public Heath Act not budgeted; 12

higher reimbursements received for recovery of legal expenses from an ERD matter; and 11

various increases to budget mainly due to minor construction works and increased bus shelter revenue. 6

Total Operating Income Adjustments 105 B1

Operating Expenditure Adjustments$000 $000

Materials, Contract and Other Expenses

Increase in expenditure due to:

higher electricity costs of $130k previously not budgeted. This relates to higher energy rates (kilowatts per hour) and increased street light service tariffs. 130

temporary salary costs have increased due to positional vacancies; and 104

additional costs from Regal Theatre incurred to increase patronage. 25 259

Decrease in expenditure due to:usage of internal resources compared to external contractors have resulted in savings; (70)

the funding allocations of the community grants is complete and per Council resolution C11759 unallocated funds to be presented to Council as savings; (31)

lower postage costs than forecasted; (13)

contractor maintenance costs lower than anticipated for Traffic maintenance; (14)

savings due to favourable negotiations through the procurement process for the operating Project, Dial Before You Dig; (8)

reduced bushfire management compliance costs due to improved behaviours compared to prior year; and (8)

various minor savings due to procurement negotiations (8) (151)

Other ExpensesNet Increase in expenditure due to:

A net increase of $30k relating to new borrowings in line with Council resolution C11780 adopted 14th August 2018. 30 30

Net loss - Equity Accounted Council Businesses

An adjustment of $19k due to the Q1 Budget review of East Waste and ERA Water. 19 19

Total Operating Expenditure Adjustments 157 B2

Total Operating Surplus / (Deficit) adjustments (52)

121

Attachment C

Adopted Q1 Proposed Q2 Variations

($'000) Variations

($'000)

ASSETS

Current Assets

Cash & Cash Equivalents - -

Trade & Other Receivables 1,255 1,255

Inventories 20 20 Total Current Assets 1,275 1,275

Non-Current Assets

Intangible Assets - -

Other Financial Assets 230 230

Equity Accounted Investments in Council Businesses 3,157 (126) 737 1 3,768

Infrastructure, Property, Plant & Equipment 581,429 (850) 319 2 580,898 Total Non-Current Assets 584,816 (976) 1,056 584,896

TOTAL ASSETS 586,091 (976) 1,056 586,171

LIABILITIES

Current Liabilities

Trade & Other Payables 4,792 (91) (255) 3 4,446

Borrowings 58 58

Provisions 2,228 2,228

Other Current Liabilities - - Total Current Liabilities 7,078 (91) (255) 6,732

Non-Current Liabilities

Trade & Other Payables 5 5

Borrowings 15,781 1,684 4 17,465

Provisions 184 184

Equity Accounted Investments in Council Businesses 1,698 1,698

Total Non-Current Liabilities 17,668 - 1,684 19,352

TOTAL LIABILITIES 24,746 (91) 1,429 26,084

NET ASSETS 561,345 (885) (373) 560,087

EQUITY

Accumulated Surplus 224,953 (804) (373) 5 223,776

Asset Revaluation Reserves 336,392 (98) - 336,294

Other Reserves - 17 - 17 TOTAL EQUITY 561,345 (885) (373) 560,087

0 0 0 0

Analytical Review for Q2 variances over $100k

5. Q2 Forecast is $373k lower than the Q1 Budget Review Accumulated Surplus. The variance represents the adjustments to Net Assets this includes the decrease in surplus due to the proposed Q2 adjustments.

3. Q2 Forecast is $255k lower than the Q1 Budget Review for Trade and Other Payables. Any surplus funds from loans borrowed are used to reduce the Trade and Other Payables balance as we assume a zero cash at bank position.

4. Q2 Forecast is $1.68m higher than the Q1 Budget Review Borrowings. These new borrowings are mainly due to the Public Lighting LED Transition Project adopted by Council on the 14 August 2018 C11780.

2. Q2 Forecast adjustment for Infrastructure, Property, Plant & Equipment of $319k relates to the increased capital adjustments per Attachment H.

City of Burnside

STATEMENT OF FINANCIAL POSITIONfor the year ended 30 June 2019

Proposed Q2 Forecast ($'000)

Adopted Budget($'000)

Notes

1. Q2 Forecast is $737k higher than the Q1 Budget Review for Equity Accounted Investments in Council Businesses. The adjustment includes a budgetary amendment for both ERA Water and East Waste not previously accounted for of ($116k) and Brownhill Keswick Creek transferred from capital expenditure of $853k.

122

Attachment D

Adopted Q1 Proposed Q2 Variations

($'000) Variations

($'000)

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Rates 39,160 - 39,160

Statutory Charges 1,238 27 1,265

User Charges 1,893 250 57 2,200

Grants, subsidies and contributions 3,719 2 - 3,721

Investment income 38 - - 38

Reimbursements 301 (8) 51 344

Other income 281 61 1 343

Payments

Employee Costs (15,730) (15,730)

Materials, contracts & other expenses (18,712) (305) (364) 1 (19,381)

Finance payments (383) (30) (413)

Net cash provided by (or used in) Operating Activities 11,805 - (270) 11,535

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Amounts specifically for new or upgraded assets 150 150

Payments

Expenditure on renewal / replacement of assets (10,383) 196 315 2 (9,871)

Expenditure on new / upgraded assets (5,470) (213) (618) 3 (6,301)

Capital contributed to associated entities - (1,095) 4 (1,095)

Net cash provided by (or used in) Investing Activities (15,703) (17) (1,398) (17,117)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Proceeds from Borrowings 4,197 17 1,667 5 5,881

Payments

Repayments of Borrowings (300) (300)

Net cash provided by (or used in) Financing Activities 3,897 17 1,667 5,581

Net Increase / (Decrease) in cash held 0 0 (0) (0)

Cash & Cash Equivalentsat beginning of period 0 0

at end of period 0 0 (0) (0)

Analytical Review for Q2 variances over $100k

1. Payments on Materials, Contracts and Other Expenses has increased by $364k. The higher payments are mainly due to increases in operating expenditure of $352k stated in Attachment A.

4. Payments for Capital contributed to associated entities is $1.1m higher than expected mainly due to Brownhill Keswick Creek $853k transferred from Capital to Non Current Asset.

5. Increased Borrowings in the Q2 Budget review of $1.67m is mainly due to the Public Lighting LED Transition Project per Council resolution C11780. See Attachment H.

City of Burnside

STATEMENT OF CASH FLOWSfor the year ended 30 June 2019



Notes

2 & 3. An overall increase in payment relating to Expenditure on Renewal and New assets of $315k and ($618k) due to a net increase in capital expenditure. See Attachment H for details.

123

Attachment E

$ '000

Total Income 46,741 47,159 418

less Total Expenses (46,263) (46,768) (505)

Operating Surplus / (Deficit) 478 391 (87)

Net Outlays on Existing AssetsCapital Expenditure on Renewal & Replacement of Existing Assets (10,383) (9,871) 512

Add back Depreciation, Amortisation & Impairment 9,658 9,658 -

Add timing adjustment for carry forwards 800 800 -

75 587 512

Net Outlays on New and Upgraded AssetsCapital Expenditure on New & Upgraded Assets (5,470) (6,301) (831)

Add Amounts received specifically for New & Upgraded Assets 50 150 100

Add timing adjustment for carry forwards 670 670 -

(4,750) (5,481) (731)

Net Lending / (Borrowing) for Financial Year (4,197) (4,504) (307)

The statement above is a high level summary of both operating and capital investment activities of the Council prepared on a simplified Uniform Presentation Framework basis.

The Local Government (Financial Management) Regulations require Councils to present summary financial information on a uniform and consistent basis.

All Councils in South Australia have agreed to summarise annual budgets and long-term financial plans on the same basis.

The arrangements ensure that all Councils provide a common 'core' of financial information, which enables meaningful comparisons of each Council's finances.

A net borrowing result in a particular year increases a Councils level of net debt in that year where as a net lending result reduces the level of net debt.

Due to a number of factors including movements on the balance sheet and non cash items the lending /(borrowing) amount for a financial year will not necessarily equal the change in the level of borrowings on the cash flow statement over the relevant year.

City of Burnside

UNIFORM PRESENTATION OF FINANCESfor the year ended 30 June 2019

Adopted Budget

Proposed Q2 Forecast

Variance

124

Attachment F

LGA Recommended

Target



Variance($'000)

1. Operating Surplus / (Deficit) Surplus position 478 391 (87)

2. Operating Surplus Ratio 0% to 10% 1.0% 0.8% -0.2%

3. Net Financial Liabilities < 47,159 21,563 22,901 0.0%

-

4. Net Financial Liabilities Ratio > 0 and < 100% 46% 49% 2.4%

5. Asset Sustainability Ratio > 90% < 110% 93% 101% 7.7%

City of Burnside

FINANCIAL INDICATORSfor the year ended 30 June 2019

Interpretation: In aggregate, Council is renewing and replacing most of its physical assets at about the same rate as they are deteriorating.

Council Target: +/> 0%

Interpretation: Per Council's Adopted Budget, an Operating Surplus of $478k was projected for 2018-19. The forecast shows a reduction in the full year Operating Surplus which is a result of the proposed adjustments in the income and expense categories. However, Council is still forecasting an Operating Surplus position for the full year and is in line with its target.

Council Target: Operating surplus position.

Interpretation: The Operating Surplus Ratio has worsened as Council’s operating expenses have increased proportionately by more than its revenue. However Council is still forecast to achieve its Operating Surplus target of =/> 0%.

Council Target: Greater than 90% but less than 110% of depreciation over a 5 year period.

Interpretation: Council has a modest level of net financial liabilities when compared to a total operating annual revenue of $47M. Provided that future operating deficits are avoided, there appears to be considerable scope for the Council to increase its level of borrowings to help finance capital expenditure if required, including for any infrastructure backlog.

Council Target: Less than total annual operating revenue.

Interpretation: Council is within its limit of 100% reflecting the affordability and sustainability of Council's current and future level of debt.

Council Target: Less than 100%

125

Attachment G

G. Operating Projects Report 2018/19

The table below shows the proposed Q2 variations for the Operating Projects adopted by Council for 2018/2019

Operating Projects

Burnside Work For The Dole Conservation Project -

Canopy Action Plan - Implementation -

Efficiency and Effectiveness Program -

Mount Osmond Road Landslide Works -

Records Backlog Project -

Community Surveys for high profile projects -

Dial Before You Dig request automation (8,000)

savings due to favourable negotiations through the procurement process for the operating Project, Dial Before You Dig;

Hills Face Reserve Vegetation Management Plan -

Pilot Project - Place Making Grants -

Resilient East: Regional Climate Change Action -

Local History and Cultural Officer -

Total Operating Projects (8,000)

Service Projects

Hard Waste Promotion -

Community Participation Events -

Burnside Walks Part 2 -

Short term employee under equity & diversity -

Total Service Projects -

Total Q2 Proposed Adjustments (8,000)

Adopted Budget 443,574 Q2 Proposed Adjustment (8,000)

Total Q2 Forecast 435,574

Project Names Q2 Proposed

Variations Comment

126

Attachment H

H. Capital Projects Report 2018/19The table below shows the proposed Q2 variations for the Capital Projects adopted by Council for 2018/19

New/UpgradeBrownhill Keswick Creek Project 853,000 - (853,000) - funding of $853k reclassed to equity as subsiduary has been formedCivic Centre Upgrades 200,000 133,050 11,000 344,050 increase of $11k due to contract variationConstable Hyde Redevelopment 304,000 - 10,000 314,000 increase of $10k due to contract variationConyngham Street Depot 1,381,000 - - 1,381,000 - Disability Discrimination Act Compliance Project 60,000 - - 60,000 - Depot Pallet Racking 20,000 - - 20,000 - Drainage New Program 600,000 - - 600,000 - ERA Water Connection 195,000 - - 195,000 - Footpath New Construction Program 400,000 - - 400,000 - Kensington Gardens Masterplan & Works 150,000 - - 150,000 - Magill Village Redevelopment 952,000 - - 952,000 - Miller Reserve - Amenities Upgrade 130,000 - (30,000) 100,000 saving achieved due to revised scope to more cost effective optionMobile Workforce and Device Management 25,000 - - 25,000 - New Open Space Furniture and Fittings 50,000 - - 50,000 - New Open Space Infrastructure 50,000 - - 50,000 - Participatory Budgeting Project 30,000 - - 30,000 - Skate Park Research 70,000 - - 70,000 - Chain of Responsibility - 80,000 - 80,000 - Public Lighting LED Transition Project - - 1,480,000 1,480,000 per council resolution on Public Lighting LED Transition Project

Total New/Upgrade 5,470,000 213,050 618,000 6,301,050

Replacement/Renewal

Alexandra Prescott Conservation Management Plan Actions 50,000 - (13,000) 37,000 cost of shelter removal reclassed from capital expense to operating expenseBuildings Emergency Program 85,000 (25,000) - 60,000 - Bus Shelter Renewal Program 27,500 - 8,000 35,500 increase of $8k due to tender variationCivic Centre Renewal Works 380,000 (35,370) - 344,630 - Civic Centre Light Fleet Replacement 423,747 - - 423,747 - Civic Centre Pond Pump 10,000 - - 10,000 - Community Buildings Program 400,000 (72,680) - 327,320 - Council Core Network Upgrade 50,000 - - 50,000 - Corporate Mobile Device Refresh 25,000 - - 25,000 - Creek Rehabilitation Works 855,000 - - 855,000 - Plant Replacement - Depot Based Light Fleet 200,000 - - 200,000 - Plant Replacement - Depot Based Major Plant 738,000 - (30,917) 707,083 $31k efficiency forecasted from awarded fleet and plant replacement contracts Plant Replacement - Depot Based Minor Plant 27,000 - - 27,000 - Drainage Renewal Program 65,000 - - 65,000 - Fencing Renewal 80,000 - - 80,000 - Footpath Renewal Program 1,400,000 - - 1,400,000 -

Hills Face Trails 45,000 - (16,000) 29,000 cost of conservation management plan reclassed from capital expense to operation expense

Infrastructure Emergency Program 50,000 - - 50,000 - Kerb Program 1,800,000 - - 1,800,000 - Burnside Library Collection Renewal Program 268,000 - - 268,000 - Open Space Furniture and Fittings Renewal 120,000 - - 120,000 - Open Space Renewal 315,000 - - 315,000 - Playgrounds 215,000 - - 215,000 - Public Lighting Renewal Program Project 180,000 - (180,000) - funding consolidated with Street Lighting LED Upgrade project

Records Management System Upgrade Project 30,000 - 12,000 42,000 additional budget required due to variation in scope with CiAnywhere enhancements due to legislated changes.

Retaining Walls Renewal 50,000 - - 50,000 - Road Cracksealing Program 50,000 - - 50,000 - Road Resurfacing Program 1,800,000 - (45,000) 1,755,000 procurement saving achieved from completed works Sports Field Lighting Replacement 83,000 - - 83,000 - Streetscape Signage Renewal 30,000 - (15,000) 15,000 $15k efficiency expected from Streetscape Signage Renewal projectTennis Courts 170,000 - - 170,000 -

Traffic Calming Program 200,000 96,786 (35,377) 261,409 saving achieved mainly due to koala crossing on L'estrange St not proceeding after consultation with Glenunga Internation High School

Traffic Signals Light Emitting Diode (LED) Upgrade 160,000 (160,000) - - - Replacement/Renewal 10,382,247 (196,264) (315,295) 9,870,688

Total 15,852,247 16,786 302,705 16,171,738

Adopted Budget 15,852,247 Q1 Adopted Adjustments 16,786 Q2 Proposed Adjustment 302,705

Total Q2 Forecast 16,171,738

New/Upgrade 5,470,000 213,050 618,000 6,301,050 Replacement/Renewal 10,382,247 (196,264) (315,295) 9,870,688

15,852,247 16,786 302,705 16,171,738

Adopted Budget Q1 Variations Q2 Variations Q2 Forecast

Q2 Forecast Q1 Proposed

Variations Project Name Comments

Q1 Adopted Variations

Adopted Budget

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Item No: 5.5 To: Audit Committee Date: 18 February 2019 Author: Stephen Smith – WHS and Risk Management Coordinator General Manager and Division:


Subject: RISK EVALUATION REPORT 2018 AND 2019 WORK HEALTH AND SAFETY AND RETURN TO WORK PLAN

Attachments: A. Risk Evaluation Report B. 2019 Work Health and Safety and Return To Work Plan

Prev. Resolution: N/A


That the Report be received.

Purpose

1. To advise the Audit Committee of the outcome and actions following the Local Government Association Workers Compensation Scheme / Local Association Mutual Liability Scheme (LGAWCS/LGAMLS) – Risk Evaluation and the development of the 2019 Work Health and Safety (WHS) and Return to Work (RTW) Plan.

Strategic Plan


“A respected organisation that is resilient, progressive and adaptable with a culture that encourages well-being, learning and development”



3.1. Discussions with LGAWCS / LGAMLS in relation to entries in the WHS and RTW Plan.

3.2. Endorsement by Executive and the WHS Committee.

Statutory

4. There are no statutory implications or requirements associated with this recommendation.

Policy


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Risk Assessment

6. The following risks have been identified:

6.1. The Administration not meeting Work Health and Safety and Return to Work responsibilities resulting in injury to workers and a legal liability.

6.2. Failure to close out actions documented in the 2019 WHS and RTW Plan (including evaluation actions) will impact upon Council’s Workers Compensation and Mutual Liability rebates.

Finance

7. To receive 100 per cent of the WHS and Liability rebate, all areas requiring attention identified in the audit must be closed out.

8. In 2018, Council received a 100 per cent rebate after closing out all items in the action plan.

Discussion

Background

9. The City of Burnside, along with all other South Australian Councils, is a member of the LGAWCS and LGAMLS Schemes.

10. LGAWCS holds the self-insured license to manage WHS and RTW functions on behalf of Local Government. As such, the City of Burnside’s WHS and RTW Management System is required to conform with all relevant WHS and RTW legislative requirements and Performance Standards for Self-Insurers (PSSI).

11. The PSSI is established by ReturnToWorkSA and describes a business management model for work health and safety and return to work functions centered on continuous improvement and employee consultation.

12. There are five performance standards which incorporate 23 elements and 55 sub-elements in total (for both WHS and RTW functions) although not all of these were tested in this evaluation.

13. The risk management elements of the evaluation are tested against agree sector baselines across several mandatory and elective risk areas.

Analysis

14. The City of Burnside is subject to an evaluation by LGAWCS / LGAMLS as part of its self-insurance activities every two years.

15. The LGAWCS / LGAMLS evaluation was completed over the period 17 to 19 October 2018.

16. The evaluation in 2018 examined 22 sub-elements of the PSSI and 26 sector baselines.

17. The Risk Evaluation Report was received on the 22 November 2018. The report notes commentary against each of the sub-elements and sector baselines evaluated.

WHS and Return to Work Component

18. For the PSSI elements, an outcome of either conformance, non-conformance or observation was recorded. The table below provides more details of each result category.

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Result Description Conformance Activities undertaken, and results achieved completely fulfil the

specified requirements of the element.

Non-conformance Activities undertaken, and the results achieved do not fulfil all the specified requirements of the elements. This may be due to the substantive absence or inadequate implementation of a system or documented systems or procedures not being followed.

Observation Activities undertaken, and results achieved fulfil the specified requirements of the element; however, an opportunity for improvement exists due to minor deficiencies identified.

19. The overall result achieved was 15 conformances, two non-conformances and five

observations. Attachment A provides information and the audit result for the individual standards audited.

20. The two non-conforming PSSI elements are outlined below:

Sub-element Description

3.8.1 Hazard Management systems including identification, evaluation and controls are in place

3.8.6 Contractor and volunteer management systems are in place to meet the organisation’s duty of care to all persons

21. The rating of non-conformance does not mean there is a complete lack of management systems in place but simply that the current system is not completely implemented or that the procedure is not being followed or does not match current business process.

22. After receiving the evaluation results, actions have been identified to address the areas requiring attention.

23. These actions have been agreed by Executive and the WHS Committee and are recorded in the 2019 WHS and RTW plan (Attachment B).

24. Other observations identified in the evaluation have been included as improvement initiatives within the 2019 WHS and RTW plan.

Risk Management Component

25. For sector baselines, an outcome of ‘being met’ or ‘not met’ was recorded.

26. The overall audit result was 24 sector baselines met and two sector baselines not met. Attachment A provides information and the result for the individual standards audited.

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27. The two sector baselines not met are outlined below:

Sector baseline

Description

2a Does the authorisation process or permit consider structures and installations for their safety and suitability?

E2a Does Council have systems in place for the management of Council organised events?

28. The finding in relation to sector baseline 2a was that the General and Special Conditions document, associated with the Section 221 Application to Lay Underground Service, contained an incorrect legislative reference.

29. In regard to the second baseline reference above, Sector baseline E2a specifically asks, Can Council demonstrate a documented approach to event management for Council organised events is in place.

30. Although Council successfully runs and manages several events without issue, a single overarching management protocol or standard is not currently in place.

31. After receiving the evaluation results, actions have been identified to address the risk management areas requiring attention. These actions have been agreed by Executive and the WHS Committee and are recorded in the 2019 WHS and RTW plan (Attachment B).

Conclusion

32. Overall the risk evaluation identified two areas of WHS non-conformance and two sector baselines not met. Along with these findings, the Risk Evaluation team made several positive remarks including:

32.1. “Operational risk management, in the areas of Roads and Footpaths and Tree Management are a standout for this Council”;

32.2. “The City of Burnside has certainly built good foundations which enable ongoing WHS improvements”; and

32.3. “The transparency of workers spoken to throughout the evaluation process highlights the positive safety culture that is thriving at the City of Burnside.”

33. Through consultation with LGAWCS and LGAMLS, the Administration has developed a plan to finalise the areas requiring attention in the 2018 Risk evaluation and will continue the development and improvement of its risk management, work health and safety and return to work management systems.

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LGAWCS and LGAMLS Risk Evaluation 2018 Summary Report C:\Users\sjsmith\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\92LP3Z5K\LGAWCS+LGAMLS_Risk_E

valuation_2018_Summary_Report_Burnside 22.11.2018 V1.0.docx

2018 Risk Evaluation Summary Report City of Burnside

Date of Evaluation: 17th – 19th October 2018

Date Report Issued: 22nd November 2018

Name of Evaluators: Colleen Green & Alan Jackson

133

LGAWCS and LGAMLS Risk Evaluation 2018 Summary Report C:\Users\sjsmith\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\92LP3Z5K\LGAWCS+LGAMLS_Risk_E

valuation_2018_Summary_Report_Burnside 22.11.2018 V1.0.docx 134

LGAWCS and LGMLS Risk Evaluation 2018 Summary Report Template V1.1

Issued on 12/10/2018 Review Date May 2019

Electronic version on the Intranet is the controlled version. Printed copies are considered uncontrolled. Before using a printed copy, verify that it is the current version. C:\Users\sjsmith\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\92LP3Z5K\LGAWCS+LGAMLS_Risk_Evaluation_2018_Summary_Report_Burnside 22.11.2018 V1.0.docx

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Risk Evaluation Overview

The LGAWCS and LGAMLS provide a Risk Evaluation service to their Members, every two years. The aim of the Risk Evaluation process is to review each Member’s risk management systems (including WHS and IM) against both LG Industry agreed Sector Baselines and other external requirements (e.g. RTWSA Performance Standards for Self Insurer requirements and relevant legislation).The objective of the evaluation is to assist Members to recognise and share LG risk management excellence, identify where opportunities for system improvements exist and to work in partnership with them to implement identified improvements. The Risk Evaluation in its current format was introduced in 2017. Please see the overview on the Members Centre for more information in relation to the structure and process.

The summary report is structured as follows:

An Executive Summary, which is completed by the Lead Evaluator, for both Risk and WHS/IM system aspects and briefly outlines the overall results of the evaluation and potential focus areas and recommended actions. This includes a Results Table, which summarises the results for both Risk Management (RM) and Work, Health and Safety (WHS) and Injury Management (IM) components.

The RM Evaluation Report, which includes the chosen evaluation scope, names of evaluators, summary of findings and specific recommendations for each evaluated question within the identified evaluation scope.

The WHS and IM Evaluation Report, which includes the evaluation scope, names of evaluators, summary of findings and specific recommendations for each sub-element within the evaluation scope.

A conclusion, which is completed by the Lead Evaluator. This aims to identify where overall system trends and issues are occurring and what may be of assistance to the Member to progress them forward.

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Contents

RISK EVALUATION OVERVIEW ....................................................................................................... 3

The summary report is structured as follows ............................................................................... 3

EXECUTIVE SUMMARY ................................................................................................................... 6

Overview and Objective: ................................................................................................................ 6

SUMMARY OF FINDINGS ............................................................................................................. 6

Risk Management .......................................................................................................................... 6

Overview of Results – Mandatory Areas - Risk Management Systems ........................................ 7

Specific Results and Improvement areas – Risk Management Systems ...................................... 7

Overview of Results – Mandatory Areas - Roads and Footpaths ................................................. 8

Specific Results and Improvement areas – Roads and Footpaths ............................................... 8

Overview of Results – Planning and Development Administration ............................................. 10

Specific Results and Improvement areas – Planning and Development Administration .............. 10

Elective Areas .............................................................................................................................. 11

Overview of Results – Elective Areas – Event Management ...................................................... 11

Specific Results and Improvement areas – Event Management ................................................ 12

Overview of Results – Elective Areas – Tree Management ....................................................... 14

Specific Results and Improvement areas – Tree Management .................................................. 14

Work Health and Safety ............................................................................................................... 16

Specific Results and Improvement areas – WHS Management Systems ................................... 16

Injury Management ...................................................................................................................... 23

Specific Results and Improvement areas – Injury Management Systems .................................. 23

CONCLUSION ............................................................................................................................. 25

RISK MANAGEMENT DETAILED FINDINGS .................................................................................. 26

Summary of the evaluation scope ............................................................................................. 26

Employees and other workers involved in the evaluation process included: ............................... 26

Documentation Review ............................................................................................................. 26

Physical Verification.................................................................................................................. 26

2.1.1 RM Systems Evaluation Findings.................................................................................. 27

WHS/IM MANAGEMENT DETAILED FINDINGS ............................................................................. 33

Summary of the evaluation scope ............................................................................................. 33

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Employees and other workers involved in the evaluation process included: ............................... 33

Documentation Review ............................................................................................................. 33

Physical Verification.................................................................................................................. 34

3.1.1 WHS System Evaluation Findings................................................................................. 34

3.2.1 IM System Evaluation Findings ..................................................................................... 47

CONCLUSION ................................................................................................................................ 51

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Executive Summary

Overview and Objective:

Every two years, the Local Government Mutual Liability and Workers Compensation Schemes conduct an evaluation of each Scheme Member’s Risk Management, Work Health and Safety and Injury Management systems. The purpose of these evaluations are to test (within the scope of the evaluation):

a) How well the organisation’s Risk Management systems meet Local Government sector

established baselines and

b) The organisation’s level of conformance with ReturnToWork SA’s Performance Standards for

Self-Insurers for Work Health and Safety and Injury Management systems.

Members should use this information in their management planning and review systems to drive further improvement to their Risk, Safety and Injury Management systems.

In addition to this, the evaluations allow for sector-wide results to be collated and analysed to enable the Schemes to further assist the Local Government industry, either via sector wide programs or individual programs of targeted support.

This executive summary provides a brief overview of the results of the risk evaluation of the City of Burnside on 17th -19th October 2018. The participation of Member representatives in the evaluation is a critical part of the evaluation process, is integral to the quality of the evaluation and is always greatly appreciated.

Executive management are encouraged to review the evaluation summary report in its entirety for further detail and recommendations.

The completed risk evaluation, WHS and IM tools that support these findings are available from your allocated Risk Consultant, RRC or WHSC. The tools and reports are also available in your Member documents on the Members Centre.

SUMMARY OF FINDINGS:

Risk Management

Within the risk management systems, there are three mandatory areas and five electives of which Scheme Members may choose two to be evaluated.

In evaluating the organisation’s Risk Management systems, reference was made to sector baselines, being a minimum standard expected to be in place. Sector baselines were established by a consultative group that included membership from both metropolitan and regional Scheme Members. It is to be noted that the baselines are not all legislative requirements, but a set of minimum requirements that is expected within the Local Government sector. All the criteria within the defined sector baseline must be met in order for the sector baseline to be deemed as being met.

The City of Burnside’s results against the mandatory and elective question sets are as follows:

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Overview of Results – Mandatory Areas - Risk Management Systems

MANDATORY AREAS

QUESTIONS Total # of sector baselines evaluated

Sector Baseline Met

Sector Baseline Not Yet Met

Risk Management Systems 6 6 0

Specific Results and Improvement areas – Risk Management Systems

Q # Risk Management Systems Sector Baseline and Summary of any improvement required

Baseline Met or Not Met

1 Has Council endorsed a Risk Management System?

Endorsed, documented, maintained/-reviewed system for managing risk

Council has an endorsed Risk Management System consisting of a Risk Management Policy, Framework and Risk Register.

MET

1a Has Council implemented a Risk Management System?

Evidence of implementation (training, etc.) in accordance with unique system requirement, key stakeholders have been made aware (Elected Members)

Council has implemented its Risk Management System and it is in its second iteration with ongoing reviews of Policy and Framework documents and training workshops being undertaken to update the SharePoint Risk Register.

MET

1b What does Council's Risk Management System consist of?

Documentation containing objectives, roles and responsibilities, risk management process: identification, assessment, evaluation, treatment, review, communication and reporting. Records management processes.

Councils RM system consists of Policy and Framework documents, a Risk Tool Kit and several risk management process imbedded in Event Risk Plans, Asset Plans and Tree Management Plans.

MET

1c Does Council have a Risk Register?

Register captures key areas (Emergency/BCP/Disaster Risks, WHS, Assets, Projects/Contracts/Procurement)

Council has a current working Risk Register developed in “SharePoint”.

MET

1d Has training been identified and provided to all persons with responsibilities and accountabilities for risk

Training occurs in accordance with system requirements and is undertaken by both initial and refresher training sessions.

MET

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management?

Training has been undertaken with the Councils Leadership Team and Supervisors. Specific risk assessment training and facilitation has also been provided.

1e Which risks has Council identified via the risk management process as the top three risks, in order of priority?

Risk Register with prioritised risks

Three areas of concern were determined to be:

Community Emergency Management

Natural Environment

Cyber Security

MET

Overview of Results – Mandatory Areas - Roads and Footpaths

MANDATORY AREAS


Sector Baseline Met


Roads and Footpaths 8 7 1

Specific Results and Improvement areas – Roads and Footpaths

Q # Roads and Footpaths Sector Baseline and Summary of any improvement required


2 Does Council have systems in place to authorise or permit 3rd party alterations to a public road (non-business purposes)?

Can Council demonstrate:

Criteria for the circumstances for the

use of the permit are clearly defined

Public access to the permit

A defined and documented submission

process

A process for assessment of lodged

form

A process for response to applications,

including dispute resolution

Trained staff to assess permit

applications

Contingencies for staff absence

Record management procedures

Council has a system in place for 3rd Party Alteration of public roads. It is accessible on Councils web site and seems to be user friendly.

MET

2a Does the authorisation process or permit consider structures and installations for their safety and suitability?

The permit considers safety and suitability of structures and installations, where they

a) Unduly obstruct use of the road; or

b) Unduly interfere with construction of

the road; or

c) Have an adverse effect on road safety

NOT MET

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The Special Conditions form that is currently used has reference to the previous OHS&W Act and requires review.

2b Does the authorisation or permit include an indemnity from the applicant to the Council?

The permit includes:

Indemnity for the Council, its

employees and/or agents against all

actions, costs, claims and demands for

injury, loss or damage arising out of

any negligent act or omission of the

applicant in relation to any activities

under the authorisation arising out of

breach of any condition attaching to the

authorisation, and

Requirement for the applicant to take

out and keep current (for the term of

the application) a public liability policy

of insurance to an appropriate level of

cover per claim in respect of any

negligent act or omission of the

applicant in relation to any activities

under the authorisation. assessment of

lodged form

The Special Conditions on the permit require 20,000,000 PI insurance and is clear in the type and term of indemnity required.

MET

2c Does Council have an asset management plan that covers the management and maintenance of roads and footpaths?

The plan includes:

Asset listing

Condition grading

Issue log including close out of action

Council’s 10 year Transport Asset Management Plan has a comprehensive requirement for the management of Roads & Footpaths.

MET

2d Does Council have an inspection and maintenance regime (or schedule) to inspect roads and footpaths?

The regime or schedule includes:

Road and footpath assessments

Consideration of roads which have

been altered and reinstated

Council has an inspection and maintenance schedule for roads and footpaths.

MET

2e How does Council prioritise roads during scheduling of maintenance/repair?

The schedule considers the following when prioritising roads for maintenance or repair:

Reported faults/issues

Traffic volumes

Proximity to public amenities

Areas concentrated with vulnerable

people such as elderly

Areas where frequent complaints arise

(trend analysis)

Councils scheduling of road maintenance

MET

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and repair is driven by their 10 year Transport Asset Management Plan and the more frequent condition grading undertaken by Consultant ARRB.

2f How does Council prioritise footpaths during scheduling of maintenance/repair?

The schedule considers the following when prioritising footpaths for maintenance or repair:

Reported faults/issues

Traffic volumes

Proximity to public amenities

Areas concentrated with vulnerable

people such as elderly

Areas where frequent complaints arise

(trend analysis)

Councils scheduling of footpath maintenance and repair is prioritised using a three tiered assessment of all footpaths once every two years and a short review every other year.

MET

2g If Council has Railway Interface/s, does Council fulfil its duties as a Road Manager?

Railway Interface Agreement completed and risk assessment conducted within 12 months of agreement being signed. City of Burnside has no rail interfaces

MET

Overview of Results – Planning and Development Administration

MANDATORY AREAS


Sector Baseline Met


Planning and Development Administration 3 3 0

Specific Results and Improvement areas – Planning and Development Administration

Q # Planning and Development Administration

Sector Baseline and Summary of any improvement required


3 Does Council have systems in place to guide Planning and Development activities?


Criteria for applications are clearly

defined

Information is accessible to the public

with a clear process for assessment

and response including dispute

resolution

Application process is accessible to the

public (e.g. website)

A defined and documented submission

MET

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process

Trained staff assess applications

Contingencies are in place for staff

absence

Record management procedures are

followed

Council has an adequate system to guide planning and development activities.

3a Are building surveyors/-inspectors, planners, planning officers or planning staff, who are employed or engaged by Council accredited to provide planning advice and access new development applications?

Building surveyor: licenced via

‘Surveyors Board SA’

Planner:

o Corporate membership of the Urban

and Regional Planning Chapter of

the Planning Institute of Australia

Incorporated, or o Such qualifications or experience in

urban regional planning,

environmental management or a

related discipline as are in the

opinion of the Minister appropriate

(e.g. Cert IV in Local Government

(Planning)).

All Burnside Council Building Inspectors and Planning Officers have current accreditation.

MET

3b Does Council have a process in place to manage written complaints related to development applications and completed projects?

The complaints process:

Is defined and documented including

escalation/appeal process under the

Development Regulations S103

Is accessible to the public (e.g. website)

Is assessed by trained staff

Includes a response in a timely fashion

to the appropriate stakeholders

(Complainant, Minister, etc.)

Councils Complaints Handling Policy sighted during evaluation only alludes to the Development Regulation Section 103 requirement by specifically excluding itself from dealing with Development Act Complaint processes.

MET

Elective Areas

Overview of Results – Elective Areas – Event Management

ELECTIVE AREAS


Sector Baseline Met


Event Management 6 5 1

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Specific Results and Improvement areas – Event Management

Q # Event Management Sector Baseline and Summary of any improvement required


E2a Does Council have systems in place for the management of Council organised events?


A documented approach to Event Management for Council organised events is in place.

Council does not have a finite documented process for management of Events. Events are risk assessed via an Events Risk Assessment Plan and followed up with a running sheet that has set questions for different stages of the event process.

NOT YET MET

E2b Do these systems ensure consistent risk management, and compliance with legislative requirements, of Council organised events across all areas of Council?

Can Council demonstrate

The documented approach to Event Management covers risk management

and relevant legislative compliance requirements and is compatible with Community Land Management Plans

The documented approach to Event Management has been applied to each Council organised event (quality

sample)

The same documented approach to Event Management is applied by all persons who have responsibility for managing Council organised events

(sample from each area where event coordinated)

The SafeWorkSA Public Event Assessment Checklist has been completed and provided to

SafeWorkSA for events that have:

- registered amusement devices

- dangerous goods over the licensable quantities, i.e. 250kg or

more of LPG, 120L or more of class 3 (e.g. petrol)

- fireworks

- large marquees, i.e. over 6m in length

- stages or grandstands that require scaffolding

Individual events are managed well across the many Council areas with practical risk assessments and event evaluations.

MET

E2c As part of the risk management process, are all arrangements with other parties documented, including suitability of contractors, and responsibilities (indemnities and insurances) for the risks they manage?


Consideration of the contents listed in the LGRS Event Risk Assessment Checklist

Documented processes relating to duty of care for Contractor

Contractor selection or tendering processes

Contractor agreements including indemnities and insurances as applicable

MET

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Induction, training and licence records for contractors and other parties

Contractor risk assessments and safe work arrangements

Event management plan includes

Permits as required

Contractor monitoring or management processes, registers

Communication and consultation records between Council and

Contractors

Council has comprehensive consideration of requirements such as contractor management, indemnities and insurances cover.

E2d Has Council assessed the number of, and skills required for, Council staff and Volunteers working at the event?


Consideration of risk assessment outcomes that result in TNA, training matrix or skills assessment for the

event

Evidence that training needs have been applied, matching personnel to the environment and activities to be undertaken or a supervisory process

put in place to support those that need skill development.

Event Risk Plans that are developed for all Council events appropriately cover the scope, size, complexity and the location of the event and staff training requirements.

MET

E2e Has Council considered Emergency Management provisions for events?


Consideration of risk assessment outcomes that result in documented arrangements detailing the management of, and roles and

responsibilities for, first aid and emergencies related to the specific event

First Aid and Emergency equipment has been arranged

Risk Plans that are developed for all Council events adequately cover the emergency requirements for the specific events.

MET

E2f Do Council’s systems ensure consistent permitting of events by Council?


Permitting process followed for all events on Council land (copies of event permits)

A permitting process is in place and seems to be followed for all events run on Council land.

MET

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Overview of Results – Elective Areas – Tree Management

ELECTIVE AREAS


Sector Baseline Met


Tree Management 3 3 0

Specific Results and Improvement areas – Tree Management

Q # Tree Management Sector Baseline and Summary of any improvement required


E4a Does Council have systems in place to manage existing and new trees?


A documented approach to Tree Management

Council has a comprehensive tree management system in place.

MET

E4b Does the system provide a process for identifying, analysing, assessing, evaluating and treating risks related to trees during development & planning, planting, and maintenance?


policies or procedures for o assessing the appropriateness of

species of tree for planting (protected status, purpose of tree,

size/significance and location, soil, human activity, public safety, site restrictions, site requirements, pests,

maintenance) o planting of trees on a road or

community land including community

consultation when establishing new trees

o vegetation clearance on roads in

accordance with DPTI Operational Instruction 20.1

o obtaining written, dated, specialist

advice from persons with relevant qualifications and experience

o addressing complaints and the issuing of an order with regard to trees on

private property o identifying and managing protected

trees

the implementation of a tree maintenance program

trained staff with documented responsibilities

Councils Tree Management System provides a process for identifying, analysing, assessing, evaluating and treating risks related to trees during development & planning, planting, and maintenance.

MET

E4c Has Council taken “reasonable action” in response to all tree requests regarding street trees in the last 24 months?

Can Council demonstrate that reasonable action was taken by a process of

written request received, outlining details of the problem

MET

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considering and assessing identified risk

in urban areas considering the protection of Significant and Regulated

Trees (Development Regulations 1993, S6A) except in the case of an emergency

in applicable areas considering the protection of native vegetation (Native

Vegetation Act 1991 S27)

in applicable areas considering conservation of native plants (National

Parks and Wildlife Act 1972 Part 4)

seeking expert advice where appropriate

determination made

taking reasonable action and records

communicating action to requestor

maintain records and monitor as necessary

The City of Burnside has clearly demonstrated via CRM evidence that they take “reasonable action” in response to all tree requests regarding street trees in the last 24 months.

Specific details of the identified gaps are available in the Risk Systems Evaluation Findings table in the Risk Management Detailed Findings section of this summary report.

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Work Health and Safety

Work Health and Safety Systems are evaluated against selected elements from ReturnToWork SA’s Performance Standards for Self-Insurers (PSSI). The Performance Standards describe the WHS and IM management system requirements for self-insured organisations in South Australia. The Performance Standards are designed to provide organisations with the opportunity to demonstrate the presence of effective business management systems. The model consists of 5 inter-related standards, 23 elements and 55 sub elements.

The LGA is the group self-insurance licence holder for all Councils and Prescribed Bodies in South Australia. Self-insured employers (Councils and Prescribed Bodies) are required to design, implement and maintain WHS systems to meet the self-insurance requirements.

This year, the WHS evaluation scope has been reduced to focus on areas identified as still requiring improvement from the 2017 RTWSA evaluation and two elements from standard 4 and 5 that are focussed on monitoring, reporting, review and improvement of the WHS system.

RTWSA provides guidance in relation to the specific requirements of each sub-element and evaluators are trained in understanding and applying this guidance to determine if an organisation is conforming to the requirements. Assessment is provided in line with the published PSSI definitions for conformance, non-conformance and observation.

The City of Burnside Scheme Members’ results are as follows:

STANDARDS Total sub elements evaluated

Conformance Observation Non-

conformance

Standard 1- Commitment and Policy 1 0 1 0

Standard 3 - Implementation 8 3 3 2

Standard 4 - Measurement & Evaluation

1 1 0 0

Standard 5 - Management systems review and improvement

1 1 0 0

Specific Results and Improvement areas – WHS Management Systems

Q # Sub-element requirements Summary of any identified issues and improvement required

Conformance/ Non-conformance / Observation

1.2.1 Supporting policies and procedures are in place?

Council has demonstrated that they have a WHS Management System which includes a range of relevant policies, procedures and operational documentation. There appears to be some duplication of processes in place with regards to the approval process for the WHS policies and procedures. At the time of the evaluation, there were a small number of procedures and some operational documentation past their review dates.

Council may wish to consider the following suggestions for improvement:

Review the document management

Observation

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process to improve the efficiency of the endorsement/ adoption and sign off process

Continue the review and update of the outstanding procedures and associated operational documentation, ensuring that monitoring and reporting occurs so review timeframes are met

3.2.1 A relevant Training program is in place and being implemented (relating to the TNA and subsequent plan and effective delivery thereof)

There has been a great deal of work happening in the WHS training space with the migration of training information being migrated into the Skytrust system. At the time of the evaluation, this work was still in progress.


WHS & Risk and the People Experience Team to work collaboratively to identify the processes to capture training needs and records holistically across the organisation, ensuring there is a consistent process for organisational training (WHS and other training)

Continue the work currently being undertaken to find the historical training records whilst ensuring that all new training records are captured as per Councils processes (entered into Skytrust)

Continue the implementation of training needs into Skytrust, whilst also looking at ways of incorporating the Skytrust training needs into the PDR Process

Continue the new process to use reports from Skytrust to input into the development of the training plan/schedule.

Look at the opportunity for improving the process of following up non-attendees to ensure they received/undertake required training (especially at how this could be managed when there is group training)

Observation

3.3.2 Accountability mechanisms are being used where relevant

There is evidence that responsibilities and accountabilities have been assigned and communicated to staff. There is evidence that accountability mechanisms are in place and these are being used where relevant across the organisation.

Conformance

3.7.1 The organisation must ensure contingency plans are periodically tested and/or evaluated to ensure an adequate response, if

There is evidence that Council has contingency plans in place and that these are tested on a regular basis.

At the time of the evaluation, there was no evidence of one specific documented

Observation

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required. emergency exercises schedule in place; however some information is captured on First 5 Minutes Client Online Portal.


Work collaboratively with First 5 Minutes to develop a consolidated schedule of emergency exercises (based on the information in the WEEPs for each site) and then planning and conducting the exercises in line with this schedule. This way you will have more control (oversight) over ensuring that the exercises planned for are relevant to each of the sites, particularly where there may be something quite specific or unique that may need to be looked at for example: o Swimming Pool: testing of the

emergency response procedures in relation to Chemical Delivery

3.8.1 Hazard management systems including identification, evaluation and control are in place.

Good foundation blocks are being laid across the organisation with a strong positive safety culture which is pleasing. Supporting mechanisms enable this (registers/ reviews/ committees/ plans).

There appears to be some potential issues in relation to the chemical management system and the currency (and quality) of some operational documentation.


Reviewing the implementation of the chemical management system, which includes the process for the updating and keeping current the safety data sheets in the various hard copy chemical registers and a review of the storage and labelling requirements for chemicals (particularly including those chemicals which are stored in the various hand held and back pack spray units)

Finalise the chemical manifest for the Depot

Review and update the WHS Hazardous Chemical Procedure to include the relevant information about the manifest requirements for Council locations

Review the storage requirements of cylinders (as noted at the Depot), ensuring there is a mechanism in place to monitor this as part of existing inspection processes

Non-Conformance

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Implementing a quality review check of the operational documentation including the combined Task Risk Assessment and SWMS documents

Continue the review and updating of the operational documentation in line with Council requirements, ensuring that monitoring and reporting processes are in place so any issues identified are able to be addressed

3.8.3 Control measures are based on the hierarchy of control process

Council has in place control measures that are based on the hierarchical control process and this was evidenced across a number of different subject areas including task risk assessments, chemical risk assessments, hazard and incident reports and the subsequent investigations and actions as well as some evidence in the tender process.

The relevant WHS documentation and forms reference the application of the HOC. Software systems used across Council including Skytrust and ChemAlert prompt the use of the HOC.

Conformance

3.8.5 Program(s) are in place to ensure an appropriate WHS consideration is given at the time of purchase, hire or lease of plant, equipment and substances.

There are procedures in place which cover the process for purchase of plant, equipment and chemicals

Accompanying the WHS Plant Procedure, there are specific forms to be used as part of the process.

There was evidence that the end users (of the plant/equipment) are actively involved in this process, including trialling and testing of the plant/equipment prior to purchase.

There appears to be a robust process in place for the hire and lease of plant and equipment with the appropriate paperwork being received and workers trained as part of the hire/ ease agreement.

The process for the purchase of hazardous chemicals is identified in the WHS Hazardous Chemical Procedure and the process is managed in ChemAlert. The process was explained and evidenced during the evaluation.

Conformance

3.8.6 Contractor and volunteer management systems are in place to meet the organisations duty of care to all persons.

Generally Council has policies, procedures and processes in place to meet their duty of care in relation to volunteers and contractors.

Volunteers appear to be well managed with systems in place for induction, training and monitoring/supervision. Visitors and Agency Staff also appear to be well managed with relevant processes

Non-Conformance

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in place.

With regards to contractor management, there appears to be a discrepancy between the process documented in the WHS Contractor Management Procedure and what actually happens in practice.


Review the requirements for the Contractor Management Systems to ensure that process documented in the WHS Contractor Management Procedure are implemented (i.e. the procedure meets practice). Some specific areas of focus to consider are: o Implementation of the process to

determine the monitoring requirements for each contract (based on risk assessment as per 4.4.2 of the WHS Contractor Management Procedure)

o Review of the monitoring tools being used to ensure they are meeting the intent of the WHS Contractor Management Procedure and the PSSI. Update the tools as required and ensure people are trained in the requirements and are aware of the expectations

o Ensuring that monitoring is undertaken in line with council requirements and any issues identified are documented so they can be monitored

o Implementation of a process for keeping track of the actions (from the issues identified) to be monitored and followed up, ensuring they have been completed (this should be a transparent process that someone should have oversight of)

o Implementation of a process to capture and flag insurance and licencing requirements to ensure currency throughout the duration of the works being undertaken

o Consider the training needs for the Contract and Project Managers in relation to the procedural and legislative requirements, particularly around the need for the provision of a WHS Management Plan where contract reach a value of $450K

Implement a quality checking

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mechanism to ensure the procedural requirements in relation to contractor management are being met

Review the volunteer training process (training needs/training planned/training completed) in line with the new employee training processes (in Skytrust) to identify is there is an opportunity to streamline the current processes

3.9.1 That the implementation of relevant inspection and testing procedures are conducted by the relevant, competent person(s).

The City of Burnside has an inspection and testing regime in place. There is a new process in place to manage this within Skytrust. This allows for all the relevant information to be captured in the one location with automatic reminders/notifications provided to the persons responsible and escalation processes in place.

At the time of the evaluation, not all the frequencies had been populated for all items (this information was still being located from other systems and entered into Skytrust). Formal reporting on the compliance register was still to be developed (for example exception reporting).

In summary, the new process is in place, however, this is in its infancy and needs time to develop into a fully mature system.


Continue to find the latest inspection and testing records and use this to populate the inspection and testing timeframes and other relevant information into Skytrust to assist with the management of this process across the organisation

Develop and implement a formal reporting process (e.g. exception reporting) to ensure the system is working well and any issues are identified and followed up in a timely manner

Ensure any required competencies for those conducting inspections (workplace and other compliance) are recorded either in the training system (workers) or contractor management system.

Observation

4.1.1. The organisation must ensure planned objectives, targets and performance indicators for key elements of program(s) are maintained, and monitored

Council's WHS Planning and Program Development Procedure sets out the reporting and review parameters for the WHS and RTW Plan. As part of the annual WHS and RTW Management System review, the current objectives,

Conformance

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and reported. targets and performance indicators are discussed and new ones for the fore coming year are identified.

There is evidence that Council monitors this information, with reports going to, and discussions held with the WHS Committee and Executive.

A Risk Evaluation Action Plan is developed annually and monitoring reports on the progress of this action plan are also sent to the Executive from the LGAWCS WHS Consultant.

5.3.1 The organisation must ensure the system is reviewed and revised, if required, in line with current legislation, the workplace and work practices.

Processes are in place to review elements of the WHS Management System. Council's WHS Planning and Program Development Procedure covers review processes and the development of the WHS and RTW Plan.

An annual review of the WHS Management System is completed with Executive and the WHS Committee. Evidence has been provided in other elements of the risk evaluation in relation to the ongoing review of the WHS Management System e.g. SWMS, SOPs and document review periods.

Legislative updates/changes are included as a standing agenda item in the WHS Committee meetings. This information is also captured in the quarterly WHS and Risk Management Reports.

There was evidence of changes being made in Councils system as a result of legislative changes.

Conformance

Specific details of the identified gaps are available in the WHS results table in the WHS/IM Detailed Findings section of this summary report.

In order to further develop systems and processes in the sub elements where observation/s and non-conformance/s have been identified, it is suggested that the City of Burnside review the findings and recommendations and include relevant actions that address the root cause of system failures into their Risk Evaluation action plan going forward.

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Injury Management

The ReturnToWork SA’s Injury Management Standards provide a framework from which a self-insured employer’s exercise of its delegated powers and discretions can be evaluated. The Code of conduct for self-insured employers states the performance of the employer or self-insured employer will be measured against the Code and Injury management standards.

This year, the evaluation scope has been limited to only those IM sub-elements that sit under the revised Code of Conduct for Self-Insured Employers version 12 relevant to LGAWCS Members.

Whilst the IM Standards are measured by RTWSA at the LGAWCS level, the following sub-elements have been scoped and amended for the 2017 Risk Evaluation specifically for Scheme Members to meet their requirements in supporting the LGAWCS.

The City of Burnside’s results are as follows:

SUB-ELEMENT Total no of sub

elements Conformance Observation

Non-conformance

Standard 1.2 Resources 5 4 1 0

Standard 1.6 Information provided to employees

2 2 0 0

Standard 2.8 Early intervention, recovery and RTW

2 2 0 0

Standard 4- Measurement, monitoring review

2 2 0 0

Specific Results and Improvement areas – Injury Management Systems

Q # Sub-element requirements Summary of any identified issues and improvement required

Conformance/ Non-Conformance / Observation

1.2.1 Documented job descriptions for all injury management personnel and where relevant management, supervisors and employees.

It was confirmed that Council have documented position descriptions (PD’s) in place for all relevant personnel, including the IRC, contingency person for IRC, management and other roles with the responsibility for managing/overseeing the day to day activities of staff.

Conformance

1.2.2 Ensuring injury management personnel are competent to administer their role in a reasonable manner.

Council has appointed an Internal RTW Coordinator (IRC) and a contingency for this role. These people have been trained in their role.

Council have in the past also trained two of their coordinators at the Depot. This training is due to be undertaken again. Training requirements are captured on Councils TNA.


Manager and supervisor training to be

Observation

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undertaken by persons who require it (noted that this training has been scheduled)

1.2.3 Ensuring the allocation of resources is appropriate for the organisations type, volume and complexity of the case load.

The allocation of resources appears to be adequate for the size and complexity of the organisation. This was confirmed during the evaluation following discussions with the IRC/ICC and looking at Councils claims history/profile.

Conformance

1.2.4 Suitability of facilities and accommodation to ensure restricted access to information, including maintaining confidentiality during interaction with injured workers and service providers

The facilities and accommodation appear suitable, with access to confidential information restricted. This was confirmed with a visual inspection of the facilities and conversations with the IRC.

Conformance

1.2.5 A Scheme Member is required to appoint a return to work coordinator and ensure the person appointed to this role has successfully completed relevant LGAWCS training. Where this role becomes vacant, the Scheme Member is required to re-appoint an employee within 3 months and ensure the employee(s) appointed have received relevant LGAWCS training within 3 months of the appointment being made.

It was confirmed at the time of the evaluation that both people appointed to the IRC roles have completed the relevant LGAWCS training.

Conformance

1.6.1 How to report a work related injury

The information on how to report a work related injury is covered in Section 3 of the RTW Procedure V4.0 dated 24th September 2015

The procedure and associated documentation are available in ECM and on Sharepoint so staff are able to access this information directly from their tablets.

Conformance

1.6.2 The process for lodging a claim for compensation

The information on how to report a work related injury is covered in Section 4 of the RTW Procedure V4.0 dated 24th September 2015

The procedure and associated documentation are available in ECM and on Sharepoint so staff are able to access this information directly from their tablets.

Conformance

2.8.5 Where a worker has not returned to pre-injury employment within 6 months from date of first incapacity and is not working to their full capacity, new or other employment options are

It was confirmed that this information is captured in Councils Suitable Employment Procedure V1.0 dated February 2016.

Conformance

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considered for the worker by the Scheme Member in conjunction with the LGAWCS.

2.8.6 Where a Scheme Member does not provide suitable employment to a former work injured employee the Scheme Member notifies and consults with the LGAWCS.

It was confirmed that this information is captured in Councils Re-employment Procedure (Work Injury), V1.0 dated February 2016.

Conformance

4.1.1 Processes are in place that monitor, measure and review the effective implementation of the injury management system and where relevant, strategies to improve performance of the injury management system are identified.

Incident statistics are monitored and reviewed at the WHS Committee, Leadership Team and are also looked at as part of the planning and system review process

Conformance

4.1.3 The Service Standards set out in Schedule 5, Part 2 of the Return to Work Act 2014 are in place.

A copy of the service standards was sighted in various locations around the organisation including six (6) posters at the Civic Centre as well as posters at the Depot.

Conformance

Specific details of the identified gaps are available in the IM results table in the WHS/IM Detailed Findings section of this summary report.

In order to progress to conformance in the sub elements where observation/s and non-conformance/s have been identified, it suggested that the City of Burnside incorporates the recommendations into their Risk Evaluation action plan going forward.

CONCLUSION

The City of Burnside has certainly built good foundations which enable ongoing Risk Management, WHS and IM improvements. The major body of work currently being undertaken with the migration of the WHS training information and the compliance related information around the inspection and testing requirements into Skytrust will enable Council to gain significant efficiencies whilst maintaining oversight of legislative, PSSI and Council procedural requirements.

In relation to the risk management systems, Council has a strong operational base to its Risk Categories which has developed in areas of individual excellence and it is recommended that Council consider the suggestions provided in this report to assist with the further development of its strategic approach to linking all these areas under a central Risk Framework. There has also been some commentary provided in the Events Elective and Tree Management Elective areas which Council should consider when structuring up their risk evaluation action plan over the coming two years.

The transparency of workers spoken to throughout the evaluation process highlights the positive risk and safety culture that is thriving at the City of Burnside. This coupled with technological advances such as the Skytrust systems capabilities, will only serve the City of Burnside well. The risk and safety conversation is alive and well and this culture, along with continued system streamlining and organisational maturity in the risk and WHS space should result in strong continuous improvement.

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Risk Management Detailed Findings The evaluation of the City of Burnside Council risk management (RM) system included a review of existing documentation and meeting with employees and other workers. Comments and recommendations, including action items will provide management with some suggested ways to improve their systems, however it may be appropriate to implement an alternative action and this is at the discretion of each individual organisation and their management team.

Summary of the evaluation scope

An evaluation was undertaken at the City of Burnside on 17th - 19th October 2018, designed to assess Council’s Risk Management system conformance against agreed industry sector baseline requirements.

Employees and other workers involved in the evaluation process included:

Stephen Smith: WHS and Risk Management Coordinator

David Hayes: Principal Traffic Engineer

Anthony Kalogerinis: Coordinator Asset Planning

Andrew Strauss: Coordinator City Services

Colin Plunkett:Transport Officer - Traffic & Regulatory

Magnus Heinrich: Group Manager City Development & Safety

Megan That: Administration Officer Community Engagement

Lindy Burford: Team Leader Community Learning

Tricia Foster-Jones: Coordinator Community Centres

Ben Seamark: Coordinator Environmental Assets

Chris Hawkins: Urban Forestry Officer

Documentation Review

The review included reviewing policies, procedures and supporting documentation within the Council’s RM, and supporting organisational systems, as provided by the Auditee prior to and during the evaluation.

Additional evidence provided after the evaluation will only be accepted as evidence for this evaluation if agreed by the evaluator or the Client (i.e. LGAWCS and LGAMLS management).

Physical Verification

The evaluation was conducted at the Councils main office in Burnside and at the Council depot. All verification was done via interview and sighting of documentation with a car tour of Council area provided by the WHS & Risk Management Coordinator.

Report Findings and Recommendations

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Report findings and recommendations for each evaluation question are provided in the following tables.

Further broader system recommendations are provided in the executive overview and conclusion.

It should be recognised that the findings and recommendations of this report should be used for:

Planning and continuous improvement by Council of their RM Systems

2.1.1 RM Systems Evaluation Findings

Q # Topic Area Question and Findings Summary

1 Risk Management Systems

Has Council endorsed a Risk Management System?

Councils Risk Management Policy has been updated to reflect the responsibilities covered in the Framework this is a small but important step in personalising the templated policy received from the scheme.

A conscious decision was made by Council to hold off the review of the overdue risk framework until the new elected members are in place. It is council’s intention to involve them in the review and subsequent update of the Risk Register.

I have therefore deemed this area as having met the Sector baseline.

1a Risk Management Systems

Has Council implemented a Risk Management System?

Councils Risk Management System is in its second iteration with ongoing reviews of Policy and Framework documents and training workshops being undertaken to update the SharePoint Risk Register.


Council may wish to consider the following suggestions for improvement;

Several changes have been planned for the Risk Register to include type and category columns. Some discrepancies were noted in matrix evidence provided with differences between register extract evidence and the:

“Risk tool kit”

Event Risk Plan

Strategic Risk Register

This Matrix will need to be standardised across all documents and the WHS and Risk Management Coordinator has stated that Councils intention is to replace the matrix appendices in all Council documents with references to the Risk Framework as a single point of truth.

1b Risk Management Systems

What does Council's Risk Management System consist of?

As stated in the evidence tool the Councils RM system consists of Policy and Framework documents, a Risk Tool Kit and several risk management process imbedded in Event Risk Plans, Asset Plans and Tree Management Plans.

The development of Council’s Risk Management Tool Kit (provided as evidence) is an excellent way of facilitating Operational Risk Assessment development.

New Treatments and Existing Controls identified in the Risk Register need a review focus and further development of the current register will facilitate this requirement.


1c Risk Management Systems

Does Council have a Risk Register?

Council has a current working Risk Register developed in “SharePoint”.

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This register provides data which is reported to the Executive but it lacks several functional areas that are required by the Councils Policy and Framework and current workshop outcomes have also highlighted gaps in the risk register.

An opportunity exists for Council to include more areas such as “review of treatments and current controls” and include “Risk Type” and “Category” columns in their Risk Register.

Councils Financial Controls are currently assessed via Control Track and It is suggested that this may be a starting point to model the Councils Strategic and Operational control/treatment assessment process on.

1d Risk Management Systems

Has training been identified and provided to all persons with responsibilities and accountabilities for risk management?

Training has been undertaken recently with the Councils Leadership Team and Supervisors. Awareness signoff around Risk Policy review was also provided to all Workers via SharePoint (evidence provided). Specific risk assessment training and facilitation has also been provided internally by Councils WHS and Risk Management Coordinator (evidence - Risk Management T4 training )

Evidence was also supplied showing Arboriculture staff undertaking ISA (International Society of Arboriculture – Tree Risk Assessment Qualified (Chris Hawkins certification supplied).


1e Risk Management Systems

Which risks has Council identified via the risk management process as the top three operational risks, in order of priority?

Although Council did not initially nominate their top three risks , through discussion with Councils WHS Risk Management Coordinator, three areas of concern where determined to be:

Community Emergency Management

Natural Environment

Cyber Security


2 Roads and Footpaths Does Council have systems in place to authorise or permit 3rd party alterations to a public road (non-business purposes)?

The 3rd Party Alteration of public road 221 forms are accessible on Councils web site and seem to be user friendly. The attached Special Conditions form is in need of update. Section 221 applications are automatically picked up by CRM system “Tec One” and are sent by admin staff directly to the relevant Officer dependant on the type of 221 requests.

This “BAM”(Burnside Automated Management) system has workflow and escalation capacity to ensure timeliness (evidence provided)


2a Roads and Footpaths Does the authorisation process or permit consider structures and installations for their safety and suitability?

The Special Conditions form has reference to the previous OHS&W Act (http://www.burnside.sa.gov.au/files/assets/public/online-services/forms-amp-permits/application_to_lay_underground_electrical_service-conditions.pdf

I have therefore deemed this area as not having met the sector baseline.


This special conditions form would benefit from a review.

160

http://www.burnside.sa.gov.au/files/assets/public/online-services/forms-amp-permits/application_to_lay_underground_electrical_service-conditions.pdf

http://www.burnside.sa.gov.au/files/assets/public/online-services/forms-amp-permits/application_to_lay_underground_electrical_service-conditions.pdf




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Suggest update with use of current terms around

unduly obstruct use of the road or

unduly interfere with construction of the road; or

have an adverse effect on road safety

2b Roads and Footpaths Does the authorisation or permit include an indemnity from the applicant to the Council?

The Special Conditions require 20,000,000 PI insurance and is clear in the type and term of indemnity required.

Evidence was requested during evaluation to show compliance with this request. Development application 180/0333/18 provided by Colin Plunkett : Transport Officer - Traffic & Regulatory. Form clearly shows links to provided Insurance for 50,000,000.

I have therefore deemed this area as having met the sector baseline.

2c Roads and Footpaths Does Council have an Infrastructure and Asset Management Plan that covers the management and maintenance of roads and footpaths?

Council’s 10 year Transport Asset Management Plan has a comprehensive requirement for management of Roads & Footpaths. It includes road and footpath listing.

Condition grading is undertaken biannually by consultants “ARRB”. Issues Logs are dealt with via Tec One and the internal Burnside Asset Management “BAM” system.


2d Roads and Footpaths Does Council have an inspection and maintenance regime (or schedule) to inspect roads and footpaths?

Consultant ARRB is used to develop the schedule for new work (evidence supplied). Maintenance is also driven by Councils CRMs.

Coordinator City Services (Andrew Strauss) confirmed that Council footpaths were assessed internally on an annual and biannual basis.


2e Roads and Footpaths How does Council prioritise roads during scheduling of maintenance/- repair?

Interviews with David Hayes, Anthony Kalogerinis and Andrew Strauss have confirmed that scheduling of road maintenance and repair is driven by the 10 year Transport Asset Management Plan and the more frequent condition grading undertaken by Consultant ARRB.

These reports provided via shared spread sheet ensure that a comprehensive list of considerations go into the priority scheduling of Road Maintenance and repair at The City of Burnside.


2f Roads and Footpaths How does Council prioritise footpaths during scheduling of maintenance/-repair?

Interviews with David Hayes, Anthony Kalogerinis and Andrew Strauss have confirmed that scheduling of footpath maintenance and repair is prioritised using a comprehensive internal process that involves a three tiered assessment of all footpaths once every two years using “BAM’ and a short review every other year.

The BAM system for review of footpaths has three priority levels identified.

Red 40 to 35 mm gaps

Orange 35 to 25 mm gaps

Yellow 15 to 25 mm gaps

There is also a secondary layer of road /footpath hierarchy prioritisation applied by Council which is taken from the Transport Assessment Management Plan.

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A footpath delivery workflow was also provided as evidence which deals with footpath wearing course type pre and post consultation. This is the responsibility of Coordinator Capital Projects and Group Manger A&I.


2g Roads and Footpaths If Council has Railway Interface/s, does Council fulfil its duties as a Road Manager?

Council has no railway interfaces.

3 Planning and Development Administration

Does Council have systems in place to guide Planning and Development activities?

Interview with Magnus Heinrick - Group Manager City Development & Safety confirmed the following: Council has a system to guide planning and development activities The Development Plan and development applications are publicly available via Councils Web site.

Council’s online lodgement facility includes a defined submission process. Applications are tracked via Tec One from Customer Services to Planning Team Leader.

Customer Services staff are trained in the Tec One application process and contingency is currently provided by two accredited officers with Council actively recruiting a third officer.



Councils Development Compliance SOP was sighted but unfortunately this document was out of review date. Council should consider reviewing this useful document.

3a Planning and Development Administration

Are Building Surveyors, Inspectors, Planners, Planning Officers, or Planning staff who are employed or engaged by Council accredited to provide planning advice, and assess new development applications?

Interview with Magnus Heinrick - Group Manager City Development & Safety confirmed that all Building Inspectors and Planning Officers have current accreditation. Evidence provided Planning Institute Australia - Membership for Magnus Heinrick membership number 4198



Suggest that this accreditation is recorded in Councils staff files for future reference.

3b Planning and Development Administration

Does Council have a process in place to manage written complaints related to development applications and completed projects?

Councils Complaints Handling Policy sighted during evaluation alludes to the Development Regulation Section 103 requirement by specifically excluding itself from dealing with Development Act Complaint processes.


Council may wish to consider the following suggestions for improvement;

It is suggested that the Section 103 requirement be clearly dealt with within one of the Councils Development Policy Documents (Possibly Development Delegations Policy or Access to Development Application Policy).

E2a Event Management Does Council have systems in place for the management of Council organised events?

Council does not have a finite documented process for management of Events. Events are risk assessed via an Events Risk Assessment Plan and followed up with a

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running sheet that has set questions for different stages of the event process.

I have therefore deemed this area as not having met the sector baseline.


The Council would benefit from assimilation of the variety of event plans, checklist, and online special conditions into a centralised event guidance document.

E2b Event Management Do these systems ensure consistent risk management, and compliance with legislative requirements, of Council organised events across all areas of Council?

Individual events are managed well across the many Council areas with practical risk assessments and event evaluations.


E2c Event Management As part of the risk management process, are all arrangements with other parties documented, including suitability of contractors, and responsibilities

During interview with Events Management Staff, Team Leader Community Centre and Events and Team Leader Community Learning, it was made clear that individual events are managed well across the many Council areas with practical risk assessments and event evaluations provided as evidence for several Council run events. These included “Family Fun Days Risk Management Plan”, “Christmas Markets Risk Management Plan 2017” and “Jimmy Barnes Event Running sheet”.

Council also has an Online Venue and Park Hire processes which recommends a voluntary risk assessment be undertake by individual using the facility.

Email evidence from Vena Folino

Sent: Wednesday, 20 December 2017

To: Mary Lindsay

Cc: Caroline Munchenberg; Meegan Barrett; Customer Desk

Subject: ID 10949 - Park Booking for Tusmore Park for Friday 9th March 2018 requires risk assessment and PL insurance to be in place.


E2d Event Management Has Council assessed the number of, and skills required for, Council staff and Volunteers working at the event?

Council has comprehensive consideration of requirements such as contractor management, indemnities and insurances cover and relevant police checks undertaken for sensitive areas including children’s events.


E2e Event Management Has Council considered Emergency Management provisions for events?

Risk Plans that are developed for all Council events, cover the scope, size, complexity and the location of the event and staff training requirements appropriately. WHS training has been provided to all staff interviewed during this evaluation.

First Aid training has been provided for relevant staff involved with Council Events. Where it was decided that this level of service was insufficient Contractors (St John) have been employed.

Council Rangers and Risk Management officer are also utilised during some events for Site inspections, conducted a week prior and on the day of the event.


E2f Event Management Do Council’s systems ensure consistent permitting of events by Council?

Council’s Risk Plans that are developed for all Council events, cover the emergency requirements for the specific events and interview with Event management staff Megan That and Lindy Buford confirmed that emergency managements provisions

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including first aid equipment, fire extinguishers (training requirements unknown) and Emergency Evacuation response are organised as required.


E Tree Management

4a Tree Management Does Council have systems in place to manage existing and new trees?

Council has a comprehensive tree management system in place. Previous emergency weather events have driven development in this area. The system includes Tree Management Policy (in date) and a Tree Management Strategy endorsed in 2014, which provides direction and guidance in the management of Councils important tree assets.

Interview with Coordinator Environmental Assets – Ben Semark and Senior Urban Forest Officer – Chris Hawkins confirmed that process via “BAM” manages tree risk – Map of all trees in Council Area. Councils Tree Management approach has both reactive and proactive aspects. BAM deals with reactive issues and yearly audits allow for proactive high risk tree management. The software program “Service Level Map” helps to prioritise proactive areas. Technical Manuals for: Tree Removal, Tree Planting, Tree inspection and Risk Assessment provides ongoing process.



It is suggested that Tree Risk Assessment process be merged into Councils Risk Management Framework and Council Risk Matrix.

4b Tree Management Does the system provide a process for identifying, analysing, assessing, evaluating and treating risks related to trees during development & planning, planting, and maintenance?

Councils Tree Management System provides a process for identifying, analysing, assessing, evaluating and treating risks related to trees during development & planning, planting, and maintenance.

This process is well developed and includes Technical Manuals for: Tree Removal, Tree Planting, Tree inspection and Risk Assessment. Staff have been trained in the BAM process and in Tree Risk Assessment “ISA Accreditation – Chris Hawkins.


4c Tree Management Has Council taken “reasonable action” in response to all tree requests regarding street trees in the last 24 months?

The City of Burnside has demonstrated that they take “reasonable action” in response to all tree requests regarding street trees in the last 24 months. Evidence provided within Evidence tool and via evaluation interviews include CRM reports:

Tre18/01201/ WK.2019.003998

Tre18/01112/WK.2019.002440

Tre18/01008/WK.2019.000629.


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WHS/IM Management Detailed Findings The evaluation of the City of Burnside’s work, health and safety (WHS) management system and injury management (IM) processes included a review of existing documentation and meeting with employees and other workers. Comments and recommendations, including action items will provide management with some suggested ways to improve their systems, however it may be appropriate to implement an alternative action and this is at the discretion of each individual organisation and their management team.

Summary of the evaluation scope

The scope of the evaluation process is an evaluation to:

Test Council’s WHS Management system conformance against the ReturnToWorkSA (RTWSA)

Code of Conduct for Self-Insured Employers and specifically nominated elements within the

Performance Standards for Self-Insurers.

Provide recommendations to the evaluated Council with regard to closing out identified non-

conformances, with the aim of assisting Councils to continuously improve their WHS management

system and IM processes.

Employees and other workers involved in the evaluation process included:

Stephen Smith: WHS & Risk Management Coordinator

Andrew Goulding: WHS Project Officer and HSR for Library

Phil Capurso: Business Partner Procurement

David Kenworthy: Coordinator Capital Projects

Claire Botterall: Landscape Architect

James Brennan: Coordinator Property & Facilities

Joshua Washington: Technical Officer Civil

Scott Read: Senior Assets Project Officer

John McEachern: Coordinator Open Spaces

Andrew Strauss: Coordinator City Services

Lisette Bruno: Volunteer Cordinator

Sandra Gazzola: People Experience Advisor

Barry Cant: General Manager Urban & Community

Ben Faber: HSR – Open Spaces

Adam Thiel: HSR – City Services

Lindall Kennedy: HSR – City Development & Safety

Documentation Review

The review included reviewing policies, procedures and supporting documentation within the Council’s RM, WHS and IM systems as provided by the Auditee prior to and during the evaluation.

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Additional evidence provided after the evaluation will only be accepted as evidence for this evaluation if agreed by the evaluator or the Client (i.e. LGAWCS and LGAMLS management).

Physical Verification

The evaluation took place for the majority at the Civic Centre with visit to the Council Depot. Demonstration & interrogation of live systems to support the evidence provided prior to the evaluation was provided at the Civic Centre.

Report Findings and Recommendations

Report findings and recommendations for each evaluation question are provided in the following table.

Further broader system recommendations are provided in the executive overview and conclusion.

It should be recognised that the findings of this report should be used for:

Planning and continuous improvement by Council of their WHS and IM Systems

Reviewing potential conformance levels with the RTWSA Performance Standards for Self-Insurers.

3.1.1 WHS System Evaluation Findings

Q # Sub-Element

Sub-Element Details and Findings Summary

2 1.2.1 Evidence of policies and/or procedures to support the policy statement

I looked at the City of Burnsides WHS & RTW policy and the supporting WHS system procedures and associated operational documentation and discussed this with Stephen Smith (WHS & Risk Management Coordinator).

This leads me to the following findings:

Council has demonstrated that they have a WHS Management System which includes a peak WHS & RTW Policy, supporting policies and procedures and a range of associated operational documentation which includes SOP’s (plant/equipment), SWMS (task) and WEEPS (emergency management).

The policies and the majority of the procedures have been based on the LGAWCS One System policies and procedures. Council has also identified the need for additional procedures and these have subsequently been developed. These documents are available on Sharepoint, Councils intranet site.

A review schedule is in place, which is managed on Sharepoint. This allows Council to manage the review and updating of these documents. Sharepoint is set up with workflow processes, which enables part of the document management process to be automated. These documents are easily found and accesses by staff. Access to these documents has also been made available on the “tablets”, which are widely used across the organisation.

There appears to be some duplication of process with all the policies and procedures being physically signed by the CEO and chairperson of the WHS Committee after going through the endorsement/adoption process. This process (obtaining signatures) can take up to three months

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(sometimes more) after they have been endorsed. The signed documents are scanned, registered in Councils records management system (ECM) and linked to Sharepoint for staff to access. As this is a manual process, errors can also occur (e.g. double sided document scanned as a single sided document before being registered and placed on Sharepoint).

At the time of the evaluation, the majority of these documents were current; however there were a small number (3-4) of procedures as well as some operational documentation (SOP’s and SWMS) past their review date. It is noted that the review of these documents is either currently underway or planned for.

I have therefore deemed this as an Observation and Council may wish to consider the following suggestions for improvement:

Review the document management process to improve the efficiency of the endorsement/ adoption and sign off process

Continue the review and update of the outstanding procedures and associated operational documentation, ensuring that monitoring and reporting occurs so review timeframes are met

13 3.2.1 The organisation must ensure a relevant training program is being implemented

I looked at the City of Burnsides WHS Induction and Training Procedure (V4; ECM tracking number: 1058386; Next Review July 2021) and the supporting operational training process and discussed this with Andrew Goulding (WHS Project Officer).


There has been a great deal of work happening in the WHS training space since the last evaluation. Historically, The City of Burnside has maintained an excel spreadsheet based TNA, however in the last four months (with ongoing activity) they have been transitioning their training records into the training module within Skytrust, where the processes of identifying the gaps and planning for training will be easier to identify and manage.

At the time of the evaluation, there was ongoing work being undertaken to find relevant historical training records which have previously been housed in a number of different locations, as well as ensuring that all new training records are captured in line with Councils new processes.

An induction process is in place. Induction takes place in an elearning module.

The WHS Safety Induction Checklist (version 2.3 dated July 2018) has been developed to capture the information required to be passed on to the new worker. This checklist captures what information needs to be explained to the new worker as well as identifying what training needs to be completed by the new worker as part of the elearning training. Once completed, the records are sent to the Records Team to be recorded in Council records management system (ECM).

An example of the Workflow Notification for the Start Day Induction requirement for Carmilla Kinnanne (25/06/2018) was sighted.

The City of Burnside has developed a New Work Induction Package on Skytrust. A copy of this was sighted. Induction training is now being captured in Skytrust and evidence of this was sighted.

The Departmental TNA captures the training requirements for each department across the organisation. The spreadsheet for this was sighted during the evaluation (as mentioned, the information in the spreadsheet is being transitioned into Skytrust).

WHS Policies and procedures are captured on the TNA as well as a range of other training.

The TNA captures the type of training required, identified on the TNA using the following legend:

Not applicable

Read and Understood

Training in the Policy/Procedure required

Induction awareness

Each year as part of the WHS and RTW Plan, a WHS Training Plan is created and approved by Executive.

A copy of the City of Burnside Corporate WHS & RTW Training Schedule 2018 was sighted during the evaluation. The schedule documents the planned training for each of the months throughout the year. It captures if the training is internal or external, expected training time (length of training),

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organiser/trainer(s), cost, whether the training is group or individual training, training venue and the people attending the training.

WHS procedure refresher training is planned and provided to staff as part of the “continuous programmed WHS training”. Evidence of various training records was sighted during the evaluation.

Training requirements are also identified as part of the Performance Development Review (PDR) process (example sighted during the evaluation). This training can then be planned for and placed on the training schedule. Council are continuing to look at ways of incorporating the Skytrust training needs into their PDR process.

Skytrust has a range of notifications set up to monitor training and this includes notifying relevant people when training has expired. Evidence of this was sighted.

Attendance records are entered into Skytrust and a standard report and email is generated by the system to advise of either, absenteeism or staff with training overdue.

Relevant training information being reported on. This is a general update on the status of training being scheduled and/or updated. Evidence of this information being provided to the WHS Committee was sighted during the evaluation.

There will be a need for WHS & Risk and the People Experience Team to work closely together to continue to progress the organisational training system, ensuring there is a consistent approach.


WHS & Risk and the People Experience Team to work collaboratively to identify the processes to capture training needs and records holistically across the organisation, ensuring there is a consistent process for organisational training (WHS and other training)

Continue the work currently being undertaken to find the historical training records whilst ensuring that all new training records are captured as per Councils processes (entered into Skytrust)

Continue the implementation of training needs into Skytrust, whilst also looking at ways of incorporating the Skytrust training needs into the PDR Process

Continue the new process to use reports from Skytrust to input into the development of the training plan/schedule.

Look at the opportunity for improving the process of following up non-attendees to ensure they received/undertake required training (especially at how this could be managed when there is group training)

14 3.3.2 The organisation must ensure accountability mechanisms are being used when relevant

I looked at the responsibilities and accountabilities in the City of Burnsides WHS management system and discussed this with Stephen Smith (WHS & Risk Management Coordinator), Sandra Gazzola (People Experience Advisor) and Barry Cant (General Manager Urban and Community).


There is evidence that responsibilities and accountabilities have been assigned and communicated to staff. There is evidence that accountability mechanisms are in place and these are being used where relevant across the organisation.

Council have captured WHS responsibilities in their procedures. The WHS policies and procedures are captured in Councils TNA and staff are provided with the relevant information and instruction depending on their role. Responsibilities are also communicated during the induction process.

There was evidence of the follow up of actions occurring from a range of things such as incidents, hazards, inspections and internal audits etc. The actions are captured in the CAPA in Skytrust. There is a range of reporting in place and any issues identified are followed up and dealt with (from a performance management side of things).

Council employees are required to comply with the range of policies, procedures and associated documentation and are also required to adhere to the Code of Conduct for Council Employees.

There are examples where staff have been followed up for not complying to their WHS responsibilities. An example was sighted where follow up occurred (email from Debbie Burge on

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07/06/2018) for where policies/documents (not just WHS) had not been signed off by a number of Teams (some examples on this list included: Inclement Weather Management Procedure, WHS Excavation and Trenching Procedure, Social Media, Naming of Public Places Policy, Swimming Pool Inspection).

There was also evidence during the evaluation where staff members have been held to account for breaches in their WHS responsibilities.

Council have a Performance Development Review (PDR) process in place (sighted an example of this). This captures specific KPI’s for the role and the employee is measured against the specific KPI’s set.

Council have an internal audit program in place, and any required actions identified are added to the CAPA and tracked until closed out. The WHS Committee monitors the internal audit information. Evidence of this was sighted (Plant Procedure Audit undertaken between 01/05 – 31/07/2018).

All corrective actions identified are monitored through Skytrust. There is an escalation process that is automatically implemented should actions not be closed out.

The corrective actions list is tabled at the WHS Committee meeting for discussion and members of the committee are encouraged to bring this discussion to their teams for resolution. Progress on WHS and RTW Plan items is also discussed at the WHS Committee.

A Quarterly Report is provided to the Executive and Leadership Team which includes a list of outstanding actions. Regular reporting on WHS and Risk activities occurs through the monthly CEO report to Council and a report on the WHS and RTW Plan progress is provided to Council’s Audit Committee.

Reports are sent to the Executive from the LGAWCS WHS Consultant on the progress of the Risk Evaluation Action Plan.

A range of evidence was sighted of overdue actions notifications from Skytrust as well as WHS Committee Minutes where outstanding actions were discussed.

ECM (Councils records management system) also tracks a range of actions/tasks (outside WHS) and these outstanding tasks are monitored and reported on to be followed up. A copy of an email sent on 09/07/2018 with the lists of outstanding tasks for the different divisions was sighted.

The Compliance Register actions are assigned to responsible people to complete. This is captured in Skytrust to enable actions to be automated and the escalation process to be used (evidence was sighted of the compliance register requirements captured). This is register is monitored and followed up with the appropriate people as required to ensure actions are completed as scheduled.

The workplace inspections required to be undertaken are captured and monitored in Councils Compliance Register (evidence was sighted of the workplace inspection requirements captured in the register). Any actions identified as part of the completion of the workplace inspections are transferred into the CAPA to be tracked until closed out. This is also monitored at the WHS Committee meetings.

This sub element has been deemed a conformance.

18 3.7.1 The organisation must ensure contingency plans are periodically tested and/or evaluated to ensure an adequate response, if required

I looked at the City of Burnsides WHS Emergency Management Procedure (V2; ECM tracking number: 2099650; next review November 2019) and associated documentation and discussed this with Stephen Smith (WHS & Risk Management Coordinator) and Andrew Goulding (WHS Project Officer).


There is evidence that Council has contingency plans in place and that these are tested on a regular basis.

Along with the WHS Emergency Management Procedure, Council also has a WHS Fire Danger Preparedness and Response Procedure (V1.3; ECM tracking number: 1359868; next review November 2020), Business Continuity Plan (BCP) and WEEPs which have been developed for each site. The WEEPs were last reviewed and updated in 2016.

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The WEEPs have been developed based on risk assessments undertaken for each site. Council have an external organisation, “First 5 Minutes” assisting with their workplace emergency management requirements. There is evidence of emergency exercises being undertaken for each site and debriefs occurring. Communication about emergency management is also reported to the WHS Committee.

Council have in place a trained EPC (part of the WHS Committee responsibilities) which meets at least annually, in addition to Emergency Planning Matters being a standing agenda item for the WHS Committee. The EPC have been trained in their roles.

Council have trained emergency wardens who actively participate in emergency drills and respond in the case of an actual emergency.

First Aid Risk Assessments have been completed across the Council areas to determine the first aid requirements. The first aid risk assessments were sighted as evidence. Trained first aiders are in place across all staffed workplaces. Training records were sighted during the evaluation.

Emergency situations (generally task specific) including Aggression (verbal and non-verbal), fall from height and adverse weather are captured in Councils hazard register. Other emergency situations (site/location) specific are captured in Council’s WEEPs.

At the time of the evaluation, there was no evidence of one specific documented emergency exercises schedule in place. The WHS & Risk Management Coordinator meets with First 5 Minutes on an annual basis to talk about emergency management. The emergency exercises/drills are established in consultation with First 5 Minutes and the EPC. Council has access to the “Client Portal” which is on First 5 Minute’s website and Council is able to see the emergency management information for each site. This information includes the sites past drills, their next exercise as well as the attendance lists for each site. This information is tabled at the WHS Committee meetings. A number of emergency evacuation exercise reports (including debrief information) and attendance records were sighted during the evaluation.

Any actions from the emergency exercises are captured in the debrief notes, and are discussed at the WHS Committee (evidence sighted). Actions are then created (if needed) directly in the CAPA in Skytrust. At the time of the evaluation, it was noted that generally these actions needing to be followed up were where an emergency warden needed to be replaced, an additional warden was required (numbers concern) or more awareness was needed to be undertaken.

Also sighted during the evaluation was evidence of the duress alarms testing which are conducted by Fleurieu Security Systems. The three (3) monthly testing (as part of the maintenance schedule) was recently conducted for nine (9) facilities on the 28/08/2018.

There was evidence that contingency/rescue arrangements have been identified in relevant Operational Documents. Examples sighted include:

Emergency descent training records and course outline: this documents the training provided

for EWP users. This training is conducted every two (2) years and is captured in Councils

TNA.

Confined space emergency requirements are captured in the SWMS and the confined space

entry permit

Swimming Pool: Chemical delivery SWMS includes emergency information around

responding to situations. It was noted that this was not necessarily tested. It was discussed

that the testing of this could be picked up in the emergency exercise schedule for the pool.

Swimming Pool: There are procedures in place around electrical storm events. This

information is covered during induction and at the annual training as the pool is seasonal.

Swimming Pool: Medical issues are trained for and covered in operational documentation

As part of the Fire Preparedness and Response Procedure, communication is provided to staff when there are warnings released by other authorities (i.e. SES/CFS). Copies of these communications were sighted as evidence.

The Business Continuity Plan (BCP) was recently reviewed and updated jointly by the City of Burnside and LGRS in February 2018. There is evidence of ongoing reviews and updates from the first development in April 2011. The BCP identifies a range of possible disruption scenarios (captured in the critical function sub plans).

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The BCP identifies the requirement for an annual testing regime (a pre-planned, annual test plan and maintenance schedule). The sub plans within the BCP are reviewed annually.

It was confirmed that the last BCP test was conducted (with LGRS) in December 2017 and there is a proposal developed for the next round of testing in line with the City of Burnside BCP requirements.

The BCP and staff contact list have now been placed into Skytrust so it can be accessed even if Council doesn’t have power. This was something that came up after a power outage that didn’t hit the documented timeframes to activate the BCP.

Emergency lighting is in place and tested as per BCA or relevant Australian Standards. The emergency generator, located at the Civic Centre is tested and maintained by external contractors on a quarterly basis.

BCP risks captured in the strategic risk register.


Work collaboratively with First 5 Minutes to develop a consolidated schedule of emergency exercises (based on the information in the WEEPs for each site) and then planning and conducting the exercises in line with this schedule. This way you will have more control (oversight) over ensuring that the exercises planned for are relevant to each of the sites, particularly where there may be something quite specific or unique that may need to be looked at for example: o Swimming Pool: testing of the emergency response procedures in relation to Chemical

Delivery

19 3.8.1 The organisation must ensure a hazard management process that includes identification, evaluation and control is in place

I looked at the City of Burnsides WHS Hazard Management Procedure (V4.0; ECM tracking number: 1023764; next review October 2020) and other associated procedures and operational documentation and discussed this with Stephen Smith (WHS & Risk Management Coordinator), Andrew Goulding (WHS Project Officer & HSR) and HSR’s Ben Faber, Adam Thiel and Lindall Kennedy. A site visit to the Depot was also conducted and discussions held with John McEachern (Coordinator Open Spaces) and Andrew Strauss (Coordinator City Services).


The City of Burnside’s WHS Hazard Management Procedure is reflective of Council’s hazard management processes. For example, section 4.3 talks about documenting the hazard. This section explains the process of documenting the hazard in Skytrust. The procedure directs users to specific forms for the various risk assessment requirements (4.3.2). The procedure goes on to explain the process the person needs to follow. The procedure also refers to Councils Risk Assessment Matrix in their Risk Management Framework. This process ensures consistency in relation to the processes around using the likelihood and consequence tables and the risk assessment matrix itself.

Council’s hazardous activities have been identified and recorded on the hazard register which available on the Intranet. A copy of Councils hazard register was sighted during the evaluation. The register documents the activities undertaken across the different departments in Council and the hazards associated with those activities. For each identified activity, a combined Task Risk Assessment and Safe Work Method Statement have been developed. A number of different examples of these documents were sighted during the evaluation.

Council has an approved WHS Plant Procedure in place (V4.0; ECM tracking number: 1059209; next review August 2021). For significant pieces of plant, a combined plant risk assessment and Safe Operating Procedure are developed (evidence of these sighted). The workshop has an asset listing of all plant and equipment.

The operational documentation is made available to people to access in the field. Instructions have been developed to assist/remind people how to access the relevant information. The “Cheat Sheet for Accessing SOP’s and SWMS in the Work Order System” (next review 01/03/2019) was sighted.

At the time of the evaluation, there were a number of operational documents (SOP’s, TRA/SWMS)

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which were due for review. Council is aware of this and have planned for this work to be completed. The documentation is now being captured on Sharepoint with review timeframes and responsible people identified. The status of this documentation is being monitored and reported on so any issues can be addressed. SOP’s were sighted at the point of use throughout the Depot where equipment was located.

Audiometric testing is completed as per legislation and every 4 years, supplementary noise surveys are taken of representative pieces of plant within the Operations and Environment Department (evidence sighted).

Council has an approved WHS Hazardous Chemical Procedure in place (V4.0; ECM tracking number: 1223612; next review April 2020). Council uses ChemAlert to manage their hazardous chemicals across the organisation. Chemical risk assessments are undertaken within the system. Numerous examples of completed risk assessments were sighted. Council is in the process of developing a chemical manifest (not in place at the time of the evaluation) for the Depot and assistance from LGRS is being provided.

During the site visit to the Depot, a number of chemical related issues were identified including unlabelled containers and out of date SDS’s.

A large number of chemical spray packs (hand held and back pack units) were stored with various quantities of product in them. These units were not labelled. Locations included the biodiversity shed, parks & biodiversity storage area and the biodiversity chemical storage shed.

A large (bulging) container storing Molasses was sighted in the Arb Shed, stored in amongst other chemicals. This container was not labelled appropriately (plain white, recycled (?) container with hand written information in black texta)

SDS folder in the irrigation shed: all SDS looked at were old (2008,2010,2011)

Council has an approved WHS Corrective and Preventative Actions Procedure in place (V1.3; ECM tracking number: 1023983; next review August 2020). The CAPA register is housed in Skytrust and contains the actions to be followed up from a number of different sources including incidents, hazards, risk assessments, internal audits and inspections. The CAPA is monitored and reported on regularly.

Council has an approved WHS Confined Space Management Procedure in place (V3.0; ECM tracking number: 1074719; next review November 2019). Council has a confined space register in place. Confined space entry permits are completed by competent staff and are part of the process of accessing confined spaces. Confined space training is provided to these workers on an ongoing basis and evidence was sighted as part of sub element 3.2.1. A potential issue was identified when looking at the risk assessment for a confined space activity (Cleaning of Culvert under Moorcroft CRT, completed 02/02/2018) where there was no reference to the need for a permit to be completed or that more than one person needs to be undertaking the activity. This assessment appears to be completed by one person only. There was evidence however of a confined space entry permit completed for this particular job (entry permits dated 02/02/2018 and 13/02/2018).

Council has an approved WHS Asbestos Procedure in place (V2.0; ECM tracking number: 2507418; next review August 2021). Council has an Asbestos Management Plan in place (due for review in January 2019) and Asbestos Registers located on each site.

The site visit to the Depot showed that staff appear to be engaged and aware of their WHS responsibilities. Housekeeping was seen to be managed extremely well, with the storage of small plant and equipment (including hand tools) well contained. There were a few concerns identified during the site visit which mainly centred around chemical management (as mentioned earlier) and the storage of cylinders on site. Noted at the time of the evaluation were two (2) cylinders in the workshop not secured (these may be cylinders which have been relocated from elsewhere) and a cylinder in the City Safe area (shed), secured with a rope. This may be better secured with an appropriate chain.

In summary, there evidence that there is a lot of activity occurring in the hazard management space. There are a lot of good systems in place and working, including the management of risk assessments, the development the operational documentation and particularly the involvement and commitment of the relevant staff in the process.

The site visit to the Depot showed that the workers take pride in their work environment and in what they do, and are knowledgeable in their role. Housekeeping throughout was managed

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extremely well.

A non-conformance is given due to some issues identified in the chemical management system and the currency (and quality) of operational documentation and Council may wish to consider the following suggestions for improvement:

Reviewing the implementation of the chemical management system, which includes the process for the updating and keeping current the safety data sheets in the various hard copy chemical registers and a review of the storage and labelling requirements for chemicals (particularly including those chemicals which are stored in the various hand held and back pack spray units)

Finalise the chemical manifest for the Depot

Review and update the WHS Hazardous Chemical Procedure to include the relevant information about the manifest requirements for Council locations

Review the storage requirements of cylinders (as noted at the Depot), ensuring there is a mechanism in place to monitor this as part of existing inspection processes

Implementing a quality review check of the operational documentation including the combined Task Risk Assessment and SWMS documents

Continue the review and updating of the operational documentation in line with Council requirements, ensuring that monitoring and reporting processes are in place so any issues identified are able to be addressed

19 3.8.3 The organisation must ensure control measures are based on the hierarchical control process

I looked at the City of Burnsides WHS Hazard Management Procedure (V4.0; ECM tracking number: 1023764; next review October 2020) and other associated procedures and operational documentation and discussed this with Stephen Smith (WHS & Risk Management Coordinator), Andrew Goulding (WHS Project Officer & HSR) and HSR’s Ben Faber, Adam Thiel and Lindall Kennedy.


Council has in place control measures that are based on the hierarchical control process and this was evidenced across a number of different subject areas including task risk assessments, chemical risk assessments, hazard and incident reports and the subsequent investigations and actions as well as some evidence in the tender process.

The relevant WHS documentation and forms reference the application of the HOC. Software systems used across Council including Skytrust and ChemAlert prompt the use of the HOC.

The following evidence was sighted during the evaluation:

Conyngham St Depot Masterplan: Safety in Design – 27/08/2018

Black Box Deliveries to the Library – 03/07/2018

High Viz Clothing & Early Starts – 19/02/2018

Civic Centre Contractor Management: additional and specific question to be answered when signing in and out – 25/06/2018

Platform Ladder 17/08/2017

Chemical Risk Assessment: Deks Hardener – 25/07/2018

Chemical Risk Assessment: DPD No. 3 Clear Tablets - 12/07/2018

Chemical Risk Assessment: Yates Zero Weedspray 490 – 17/07/2018

Workstation Assessment Report – 02/07/2018


20 3.8.5 The organisation must ensure program(s) are in place to ensure an appropriate WHS consideration is given at the time of purchase, hire or lease of plant, equipment and substances

I looked at the City of Burnsides procedures in relation to the purchase, hire or lease of plant, equipment and substances and discussed this with Stephen Smith (WHS & Risk Management Coordinator) and Andrew Goulding (WHS Project Officer & HSR).


There are procedures in place which cover the process for purchase of plant (WHS Plant

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Procedure) and chemicals (WHS Hazardous Chemicals Procedure). Accompanying the WHS Plant Procedure, there are specific forms to be used as part of the process. Forms relating to plant and equipment include:

Plant Purchase WHS Overview Form

User Testing Acknowledgement Form

As part of plant purchase process, the Plant Process WHS Overview is completed by the Coordinator or Supervisor undertaking the purchase.

There was evidence that the end users (of the plant/equipment) are actively involved in this process, including trialling and testing of the plant/equipment prior to purchase.

The Request for Quotation or Tender requires suppliers to provide a plant risk assessment and safe operating procedure as part of the process. Although the request is made to obtain a risk assessment and other documents from the supplier, there are issues at times where the requested risk assessment is not received in a timely manner, or the risk assessment provided is generic in nature. Council has in the past, held part payment where this is not obtained but this is still an issue that needs to be dealt with when it arises. It was also noted that it is difficult to obtain a risk assessment when purchasing two (2) separate parts of equipment and these need to come together. In these circumstances, Council follows up and undertakes the risk assessment themselves.

There appears to be a robust process in place for the hire and lease of plant and equipment with the appropriate paperwork being received and workers trained as part of the hire/ ease agreement.

The process for the purchase of hazardous chemicals is identified in the WHS Hazardous Chemical Procedure and the process is managed in ChemAlert. The process was explained and evidenced during the evaluation.

The following evidence showing Council’s process was sighted during the evaluation:

Audit Report – Plant Procedure 2018

Battery Pole Saw Plant Purchase WHS Overview – 18/04/2018

Compact Back Hoe Plant Purchase WHS Overview – 01/12/2017

New Community Library Van Requirements – 10/02/2017

Training Room TV Plant Purchase WHS Overview – 28/09/2018


21 3.8.6 The organisation must ensure program(s) are in place to meet the organisation’s duty of care for all persons in the workplace

I looked at the City of Burnsides WHS Contractor Management Procedure (V5.0; ECM tracking number: 1507546; next review July 2020) and associated procurement, tender, contractor management and volunteer management documentation and discussed this with the following staff: Stephen Smith (WHS & Risk Management Coordinator), Phil Capurso (Business Partner Procurement), David Kenworthy (Coordinator Capital Projects), Claire Botterall (Landscape Architect), James Brennan (Coordinator Property & Facilities), Joshua Washington (Technical Officer Civil), Scott Read ( Senior Assets Project Officer) and Lisette Bruno (Volunteer Coordinator).


Generally Council has policies, procedures and processes in place to meet their duty of care in relation to volunteers and contractors.

Volunteers:

Council has developed a Volunteer Handbook which contains a range of relevant information for new volunteers (Volunteer Handbook Information for New Volunteers, V1; date: September 2017).

Volunteers are recruited and inducted to a position description (PD) for the volunteer role. A corporate induction is completed by the Volunteer Coordinator, with a job specific induction completed by the Volunteer Supervisor, which is linked to the volunteer role/position. Volunteer Supervisors are responsible for the task allocation and day to day supervision. Volunteer related hazards and incidents and recorded in Skytrust by the volunteer or a City of Burnside staff member. Volunteers are provided training which is derived from the PD and the volunteer TNA. There may be an opportunity to review the volunteer training process (training needs/training

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planned/training completed) in line with the new employee training processes (in Skytrust).

A range of evidence confirming the volunteer management processes in place was sighted including:

Volunteer Program Induction Checklist: o Ashley Burnett: 29/08/2018 o Krystal Fang: 11/09/2018

Volunteer Newsletter Jan – March 2018

New Incident Report by Volunteer: Skytrust notification (Incident ID 203), incident date 28/08/2018

Visitors:

Council has an electronic visitor sign in process (Syne) and this sends an automatic notification to the relevant Council staff member. This staff member is the person responsible for the visitor whilst on the Council premises. If there are any visitors (or contractors) who have not signed out at the end of the day, this triggers an alert and the person (Council staff member) who they were signed in to see will receive a phone call to follow up. Security is set up throughout the organisation with access to the work areas restricted by security fab/card access.

Agency Staff:

Council will utilise Maxima staff seasonally where required. Inductions occur and the relevant records, such as licenses and training/competency records are sighted and recorded in Councils records management system (evidence was sighted). Adequate supervision of agency staff is in place.

Contractor Management:

Council have approximately 10-12 panel contracts set up and this panel is managed by the Business Partner Procurements and Contracts.

Council employees who have responsibility for contractor management across the organisation have been trained in their role. The most recent training in this space was some internal contractor management training which was facilitated by the WHS & Risk Management Coordinator and the LGAWCS Consultant earlier this year.

All Contracts will have a City of Burnside employee who is their contact. The Contract or Project Manager will be involved in the procurement, communication with, and induction of the preferred contractor. The Contract or Project Manager is also responsible to ensuring that all the relevant documentation including insurances, licences, tickets, operating procedures, risk assessments etc. has been asked for and received prior to works commencing.

The Contract or project Manager will then also undertake documented contractor monitoring activities. Additionally, the WHS and Risk Management Coordinator undertakes selected reviews of contractor monitoring activities.

There was a range of contractor management documentation evidence sighted during the evaluation and discussions held with those employees who undertake contractor management activities. As a result of this, there were some potential issues identified, including the following:

There appears to be a discrepancy between the process documented in the WHS Contractor Management Procedure and what actually happens in practice. Some examples of this include: o The rationale of monitoring requirements:

The procedure talks about this in 4.4.2 – Monitoring. It states that the monitoring regime will be based on the initial risk assessment. There was no evidence at the time of the evaluation of this occurring.

o Monitoring tools/forms: There are different forms being used in the field for the monitoring of contactors. Skytrust is also being used (a monitoring form has been set up in the system). The feedback from Claire (Landscape Architect), who has been using Skytrust for monitoring her contractors, is that this system has been great and very easy to use. The standard monitoring form is also used by some people and another form has been developed (Assets). The form that has been developed and is being used by Assets, appears to be very basic in nature from a WHS perspective and doesn’t meet the intent of the procedure

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or the requirements of the PSSI. o The documenting and follow up of actions from monitoring:

During discussions, it was advised that where things/issues had been identified and subsequently followed up by the contractor (on the day), they are not being documented (the monitoring form shows that everything was okay and there were no issues identified/discussed). It is recommend that these things/issues still be documented (as identified and discussed) and then marked as completed once done.

o Follow up of actions: There is no “central location” for keeping track of items/actions to be followed up by the contractor. In discussions, it was advised that this is generally done by email (in writing) to the contractor or verbally in discussion in person or over the phone. It’s up to each individual (Contract or Project Manager) to keep track of actions that are being followed up with their contractors they are managing.

o Insurances and licences etc.: Maintaining things such as insurances and licences etc. where work is occurring over an extended period of time appears to be an issue. This is a known concern and discussions are currently underway to work though how to manage this to ensure this information is kept updated.

o There was a discussion with the Contract and Project Managers around the requirement for a WHS Management Plan. It was advised that Council have set this requirement at $30K and require contractors to provide a WHS Management Plan if the value of a contract meets or exceeds this amount. It was noted that most contractors will just provide a generic WHS Management Plan. It was unclear at the time of the evaluation if there was a clear understanding of the legislative requirements in this space (ie the threshold sits at $450K).

A non-conformance has been given and Council may wish to consider the following suggestions for improvement:

Review the requirements for the Contractor Management Systems to ensure that process documented in the WHS Contractor Management Procedure are implemented (ie the procedure meets practice). Some specific areas of focus to consider are: o Implementation of the process to determine the monitoring requirements for each

contract (based on risk assessment as per 4.4.2 of the WHS Contractor Management Procedure)

o Review of the monitoring tools being used to ensure they are meeting the intent of the WHS Contractor Management Procedure and the PSSI. Update the tools as required and ensure people are trained in the requirements and are aware of the expectations

o Ensuring that monitoring is undertaken in line with council requirements and any issues identified are documented so they can be monitored

o Implementation of a process for keeping track of the actions (from the issues identified) to be monitored and followed up, ensuring they have been completed (this should be a transparent process that someone should have oversight of)

o Implementation of a process to capture and flag insurance and licencing requirements to ensure currency throughout the duration of the works being undertaken

o Consider the training needs for the Contract and Project Managers in relation to the procedural and legislative requirements, particularly around the need for the provision of a WHS Management Plan where contract reach a value of $450K

Implement a quality checking mechanism to ensure the procedural requirements in relation to contractor management are being met

Review the volunteer training process (training needs/training planned/training completed) in line with the new employee training processes (in Skytrust) to identify is there is an opportunity to streamline the current processes

23 3.9.1 The organisation must ensure that the implementation of relevant inspection and testing procedures are conducted by the relevant, competent person(s)

I looked at the City of Burnsides processes in relation to the inspection and testing procedures and discussed this with Andrew Goulding (WHS Project Officer & HSR).


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The City of Burnside has an inspection and testing regime in place. There is a new process in place to manage this with the compliance inspection and testing being scheduled and recorded in Skytrust. This allows for all the relevant information to be captured in the one location with automatic reminders/notifications provided to the persons responsible and escalation processes in place.

It appears that the compliance resister contains the relevant compliance inspection and testing information including items such as Pressure Vessels, Oxy Acetalyne Welding Equipment, Lifts/Elevators, Lifting Chains, Fire Extinguisher testing, Safety Showers/Eye Wash equipment as well as Workplace Inspection requirements (in line with Councils WHS Workplace Inspection procedure).

Any issues identified are captured in Councils CAR to be followed up and monitored until closed out.

A number of records were sighted during the evaluation including:

Compliance Register: Skytrust

Lift Registration: 5 yearly check next due 04/10/2023; copy of the invoice and receipt of registration dated 05/10/2018

Lifting Chains: 12 monthly inspections completed 30/07/2018. Sighted evidence from Nobles confirming completion

Emergency Evacuation Exercises: All sites listed in Skytrust. The next scheduled date will be entered into the system once known. Not able to access previous records for this at the time of the evaluation.

Workplace Inspection for Library Van & Shed conducted 17/10/2018; next inspection due 15/04/2019. Also sighted evidence of the corrective action record number 117114

Safety Shower Risk Assessment – to determine the testing regime required: 15/02/2018

Skytrust notification dated 24/09/2018 advising the Periodic Monthly Inspection of the Scissor Lifter has been completed on 24/09/2018

Skytrust notification dated 10/09/2018 advising the Safety Shower Inspection has been completed on 10/09/2018

Certificate of Inspection for the Burnside Library annual lift inspection conducted on 03/05/2018; Comprehensive lift maintenance quarterly invoice (Inv # 33360) dated 24/08/2018

Workshop Hoist Inspection (annual service and safety inspection, Inv # 10217) dated 11/09/2018

Report from Hallweld Bennett requiring follow up – dated 24/07/201.

At the time of the evaluation, not all the frequencies had been populated for all items (this information was still being located from other systems and entered into Skytrust). Formal reporting on the compliance register was still to be developed (for example exception reporting).

In summary, the new process is in place, however, this is in its infancy and needs time to develop into a fully mature system.


Continue to find the latest inspection and testing records and use this to populate the inspection and testing timeframes and other relevant information into Skytrust to assist with the management of this process across the organisation

Develop and implement a formal reporting process (e.g. exception reporting) to ensure the system is working well and any issues are identified and followed up in a timely manner

Ensure any required competencies for those conducting inspections (workplace and other compliance) are recorded either in the training system (workers) or contractor management system.

27 4.1.1 The organisation ensures planned objectives, targets and performance indicators for key elements of program(s) are maintained and monitored

I looked at the City of Burnsides WHS Planning and Program Development Procedure (V1.2; ECM tracking number: 1023982; next review April 2019) and associated documentation and discussed this with Stephen Smith (WHS & Risk Management Coordinator) and Barry Cant (General Manager Urban and Community).

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Council's WHS Planning and Program Development Procedure sets out the reporting and review parameters for the WHS and RTW Plan. As part of the annual WHS and RTW Management System review, the current objectives, targets and performance indicators are discussed and new ones for the fore coming year are identified.

The WHS and RTW Plan 2018 was sighted during the evaluation. This plan contains 2 programs and a number of ongoing system improvements, all of which contain objectives, targets and performance indicators. There is evidence that Council monitors this information, with reports going to, and discussions held with the WHS Committee and Executive.

A Risk Evaluation Action Plan is developed annually and monitoring reports on the progress of this action plan are also sent to the Executive from the LGAWCS WHS Consultant.

The following information was sighted during the evaluation:

WHS & RTW Plan review and planning presentation for Committee (for Executive information)

2018 WHS Plan updated 30 Jan (for Executive consideration and review)

WHS Plan 2018-2019 (without watermark)

2018 WHS Training Plan (for Executive consideration and review)

Minutes: Special Planning Meeting – WHS Committee – 22/02/2018

Minutes: WHS Committee Meeting – 09/05/2018

Audit Committee Report: Subject – 2018 WHS & RTW Plan (Strategic) – 18/06/2018

WHS & Risk Management Report: 01/04/2018 – 30/06/2018


29 5.3.1 The organisation ensures the system is reviewed and revised, if required, in line with current legislation, the workplace and work practices

I looked at the City of Burnsides processes in relation to system review and discussed this with Stephen Smith (WHS & Risk Management Coordinator) and Andrew Goulding (WHS Project Officer & HSR).


Processes are in place to review elements of the WHS Management System. Council's WHS Planning and Program Development Procedure covers review processes and the development of the WHS and RTW Plan.

An annual review of the WHS Management System is completed with Executive and the WHS Committee. Evidence has been provided in other elements of the risk evaluation in relation to the ongoing review of the WHS Management System e.g. SWMS, SOPs and document review periods.

Legislative updates/changes are included as a standing agenda item in the WHS Committee meetings. This information is also captured in the quarterly WHS and Risk Management Reports.

There was evidence of changes being made in Councils system as a result of legislative changes. Of particular note was the work being undertaken as a result of the changes to the National Heavy Vehicle Regulations (NHVR). The work Council has planned has also been included in their 2018 WHS and RTW Plan. The following information was sighted in the 2018 WHS & RTW Plan:

Audit Finding or Rationale: o 2.2 - A gap analysis is conducted to determine what is required for Council to be

compliant with Heavy Vehicle National Law. Following the gap analysis, an Action Plan is developed and implemented.

Objective: o Gaps within the current heavy vehicle fleet management system are identified, assessed

and recommendation agreed to by Executive.

Target: o Work with LGAWCS to undertake a gap analysis of current management system in

relation to heavy vehicles (01/04/2018 ongoing) o Recommendations will be developed based on the gap analysis findings (01/06/2018) o Recommendations agreed to and resourced by Executive (01/07/2018) o Report to Executive and WHS Committee on the implementation of recommendations

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(01/09/2018) o Review and update Plant Procedure (as relevant) to take into account the

recommendations (01/09/2018)

Additional specific actions around the NHVR / CoR (Chain of Responsibility) were also captured in the WHS Committee minutes 30/08/2018:

Item 3.6 – Corporate Training: CoR & Load Restraint Training booked for Depot staff 17 & 18th October 2018.

Item 5.3 – CoR Procedure and Risk Assessment: Procedure has been created in response to legislative changes.


3.2.1 IM System Evaluation Findings

Q # Sub-Element

Sub-Element Details and Findings Summary

1 1.2.1 Documented job descriptions for all injury management / RTW personnel and where relevant management, supervisors and employees.

Stephen Smith (WHS & Risk Management Coordinator) is the appointed IRC for Council.

Sandra Gazzola (People Experience Advisor) is the contingency person for this role.

It was confirmed that documented position descriptions are in place. The following PD’s were sighted:

WHS and WHS Risk Management Coordinator. It was confirmed that this PD captures the duties of the ICC: o Position Objectives: Workers Compensation & Rehabilitation case management

activities o Workers Compensation & Rehabilitation: Sets out three (3) specific key tasks in relation

to this part of the role People Experience Advisor: It was confirmed that this PD captures the contingency duties

regarding injury management

o “Act as backup in the management of return to work programs in conjunction with the LGAWCS liaising with health professionals to establish work capacity and coordinate suitable alternative duties”

I have therefore deemed this as a Conformance.

1 1.2.2 Ensuring injury management personnel are competent to administer their role in a reasonable manner.

Stephen Smith (WHS and WHS Risk Management Coordinator) and Sandra Gazzola (People Experience Advisor) have both been trained in their roles. See specific LGAWCS IRC training information at question 1.2.5.

Injury Management / RTW training has been provided to two Coordinators at the Depot. This was last conducted on 13/10/2015. Noted that this training is due to be undertaken again. The following evidence of this training was sighted at the time of the evaluation:

RTW Training for Managers and Supervisors: Andrew Strauss; Date of completion: 13 October 2015; Valid to: 13 October 2018

RTW Training for Managers and Supervisors: Jon McEachern; Date of completion: 13 October 2015; Valid to: 13 October 2018

RTW information is provided to new staff at Induction. A copy of the WHS Induction Checklist was sighted.

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Training requirements are captured on Councils TNA. Evidence of this was sighted.


Manager and supervisor training to be undertaken by persons who require it (noted that this training has been scheduled)

1 1.2.3 Ensuring the allocation of resources is appropriate for the organisations type, volume and complexity of the case load.

The allocation of resources appears to be adequate for the size and complexity of the organisation. At the time of the evaluation, there were two open/current claims. In the 2017-2018 financial year Council had 10 claims.

Council have 2 staff undertaking roles in the RTW area (including the contingency role).

IM/RTW statistics are monitored/ reported to the WHS Committee/ management as noted in standard (question 4.1.1).


1 1.2.4 Suitability of facilities and accommodation to ensure restricted access to information, including maintaining confidentiality during interaction with injured workers and service providers.

The facilities and accommodation appear to be suitable with access to confidential information restricted.

Council’s current Record Management System (ECM) has various access levels to ensure confidentiality is maintained for electronic records.

Hard copy files are kept in a locked file cabinet in the IRC/ICC office. This was sighted at the time of the evaluation.

Confidential phone calls and meetings take place in an enclosed office area. The small meeting room or training room is booked for meetings at the Depot when required.


1 1.2.5 A Scheme Member is required to appoint a Return to Work Coordinator (IRC) and ensure the person appointed to this role has successfully completed relevant LGAWCS training. Where this role becomes vacant, the Scheme Member is required to re-appoint an employee within 3 months and ensure the employee(s) appointed have received relevant LGAWCS training within 3 months of the appointment being made.

Stephen Smith (WHS and WHS Risk Management Coordinator) and Sandra Gazzola (People Experience Advisor) have both been trained in their roles.

The following training records were sighted during the evaluation:

Stephen Smith: Return to Work Training for Internal RTW / Claims Coordinators: date of completion 23/11/2015; valid to 23/11/2018

Sandra Gazzola: Return to Work Training for Internal RTW / Claims Coordinators: date of completion 23/11/2015; valid to 23/11/2018

These training needs have been identified on Councils TNA and training has been scheduled.


2 1.6.1 How to report a work related injury

Sighted a copy of the RTW Procedure V4.0 dated 24th September 2015. It was noted that the next review date is September 2017 – Council are waiting on the updated procedure to be released by LGAWCS. The information on how to report a work related injury is covered in Section 3 of this procedure.

This procedure is based on the LGAWCS RTW Procedure template document.

It was confirmed that the procedure is available at the Depot for the outdoor staff and the incident and hazard report “form” is available in SkyTrust.

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The procedure and associated documentation are available in ECM and on Sharepoint so staff are able to access this information directly from their tablets. The use of paper based forms in discouraged.

The IRC will generally sit down with the injured worker and fill in the claim pack together. The City of Burnside are using the online form as part of the LGAWCS trial. The persons Coordinator will do this in the event that the IRC is not able to assist at the time.


2 1.6.2 The process for lodging a claim for compensation

Sighted copy of the RTW Procedure V4.0 dated 24th September 2015.The information outlining the process for lodging a claim is covered in Section 4 of this procedure.

This procedure is based on the LGAWCS RTW procedure template document. Staff are made aware of the process during induction.

It was confirmed that the procedure is available at the Depot for the outdoor staff and the incident and hazard report “form” is available in SkyTrust.

There is a WHS & RTW Policy Summary (dated 30/12/2017) available on the noticeboards.

All paperwork is also available in ECM and on Sharepoint so staff are able to access directly from their tablets.

As mentioned above, The City of Burnside are using the online form as part of the LGAWCS trial.


3 2.8.5 Where a worker has not returned to pre-injury employment within 6 months from date of first incapacity and is not working to their full capacity, new or other employment options are considered for the worker by the Scheme Member in conjunction with the LGAWCS.

Sighted a copy of the Suitable Employment Procedure V1.0 dated February 2016. It was noted that the next review date is February 2018 – Council is waiting on the updated procedure to be released by LGAWCS.

This procedure is based on the template Suitable Employment Procedure document issued by the LGAWCS on 18/12/2015.


3 2.8.6 Where a Scheme Member does not provide suitable employment to a former work injured employee the Scheme Member notifies and consults with LGAWCS.

Sighted copy of the Re-employment Procedure (Work Injury) V1.0 dated February 2016. It was noted that the next review date is February 2018 – Council is waiting on updated procedure to be released by LGAWCS.

This procedure is based on the Re-employment Procedure (Work Injury) template document issued by the LGAWCS on 18/12/2015.


4 4.1.1 Processes are in place that monitor, measure and review the effective implementation of the injury management system and where relevant, strategies to improve performance of the injury management system are identified.

Incident statistics are monitored and reviewed at the WHS Committee, Leadership Team and are also looked at as part of the planning and system review process. Sighted copies of the following documents:

Special Planning Meeting Minutes 22nd February 2018: Item 3.1 Management Review of 2017 WHS & RTW Plan; Item 3.2 Injury Management / Incident and Hazard Data

4th Quarter 2018 WHS and Risk Report (includes information from the Members Centre) – 1st April 2018 – 30 June 2018

IM Report 4th Quarter 2018

WHS Committee Minutes 18/07/2018: Item 3.4 Injury Management / CATS Report

WHS Committee Minutes 18/07/2018: Item 3.4 Injury Management / CATS Report

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Report to the Audit Committee dated 15/10/2018: Contains incident data: July – Sept at a high level; also includes an update on the WHS & RTW Plan

It is noted that the report to the WHS Committee is more detailed – includes information on the management of claims / RTW etc.


4 4.1.3 The Service Standards set out in Schedule 5, Part 2 of the Return to Work Act 2014 are in place.

A copy of the service standards was sighted in various locations around the organisation including six (6) posters at the Civic Centre as well as posters at the Depot.


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Conclusion I would like to thank all those involved in the City of Burnside’s Risk Evaluation, especially Stephen Smith and Andrew Goulding for the work collating and uploading the documentation prior to the evaluation as well as coordinating and providing information during the evaluation.

The risk evaluation process gave Council the opportunity to showcase a number of risk management, work health and safety and injury management/return to work systems that you have in place.

Please note that evaluation findings can only be provided against the evidence presented at the time and within the evaluation scope. As part of the evaluation scope, we conducted a desktop review of evidence provided and requested additional records and information based on the initial evidence provided, followed by some testing of implementation via staff and management interviews. The timeframe provided for on-site and document review was only three days and hence this can only be a sampling process. We did extend the document review timeframe by another day to review the evidence provided, prior to our evaluation visit and there was some additional follow up of documentation following the evaluation.

As indicated in the Executive summary and the evaluation findings contained herein, Council has some areas of focus identified for the next two years and should develop an appropriate action plan to review, monitor and complete the actions. Completion of the actions will further improve the overall effectiveness of the risk, WHS, IM/RTW systems.

Councils Risk Management System has many excellent parts but is still fragmented and will benefit from further framework development and training which is scheduled for early next year. Operational risk management, in the areas of Roads & Footpaths and Tree Management are a standout for this Council. It would take minimal work in the Event Management area to improve an already workable process.

In relation to the WHS management systems, the City of Burnside has certainly built good foundations which enable ongoing WHS improvements. The major body of work currently being undertaken with the migration of the WHS training information and the compliance related information around the inspection and testing requirements into Skytrust will enable Council to gain significant efficiencies whilst maintaining oversight of legislative, Performance Standards for South Australia (PSSI) and Council procedural requirements.

The transparency of workers spoken to throughout the evaluation process highlights the positive safety culture that is thriving at the City of Burnside. This coupled with technological advances such as the Skytrust system capability will only serve the City of Burnside well. The safety conversation is alive and well and this culture along with continued system streamlining and organisational maturity in the WHS space will result in strong continuous improvement.

The effective implementation of the WHS, IM and RTW systems requires Council to be compliant with the legislative requirements, the PSSI and the policies and procedures; managers to be aware of their accountabilities to ensure the systems are implemented, reviewed and continuously improved and regular reporting to and monitoring by the executive and leadership team should occur.

I would recommend that you work closely with Vicky Smith (your WHS Consultant) and the Strategic Risk Team (Risk Management) going forward to ensure that a planned and prioritised approach is undertaken, in addressing the corrective actions required. Vicky and the Strategic Risk Team can provide guidance to the City of Burnside on how you might move forward in a way that will provide the best approach for building a system in line with your resources and assist with the setting of a programmed body of work for the next 2 years that is achievable, addresses the issues in a systematic way and enables you to achieve the best possible rebate return in line with corrective actions completed.

Please note that action plans need to be submitted for review by the end of January 2019 to address the issues identified in the evaluation (in a systemic way). If you are unclear on how this is to be undertaken or need examples of formats and structures, Vicky and the Strategic Risk Team will be available to assist in drafting your action plan in order to meet the criteria that is required for approval of these plans and to ensure that the action plans are appropriate for closing out the identified issues in a prioritised, structured and systemic way.

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Contact

Stevie Sanders WHS & Risk Manager T: +61 (0)8 8235 6485 M: +61 (0) 429 904 262 [email protected]

LGRS a division of Jardine Lloyd Thompson Pty Ltd ABN 69 009 098 864 AFS Licence 226827 Level 1, 148 Frome Street, Adelaide SA 5000 T: +61 8 8418 0288

www.lgrs.com.au

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Post PO Box 9, Glenside SA 5065

Civic Centre 401 Greenhill Road, Tusmore SA 5065

Phone (08) 8366 4200 Fax (08) 8366 4299 Email [email protected]

www.burnside.sa.gov.au ABN 66 452 640 504

Work Health and Safety Plan (with Programs) - 2019

Introduction

This plan sets work health and safety and objectives, targets and performance indicators for

the City of Burnside for 2019. The plan is based on the City of Burnside Work Health and

Safety and Return to Work Policy and supports the City of Burnside Strategic Community

Plan – Be the Future of Burnside.

This plan is consistent with Work Health and Safety and Return to Work legislation,

ReturnToWorkSA self-insurance requirements and Local Government Association Workers

Compensation Scheme direction. Additionally, the plan has been informed by knowledge

and analysis of Council’s past work health and safety performance, safety management

system and 2018 risk evaluation results.

Our organisation through the Executive is committed to providing visible leadership in

relation to WHS and driving ongoing improvement. We are committed to keeping each other

safe by minimising incidents and effectively managing any incidents and injuries sustained to

protect the health and safety of all workers.

Background

City of Burnside is committed to achieving the Strategic Community Plan Outcome – a

respected organisation that is resilient, progressive and adaptable with a culture that

encourages wellbeing, learning and development.” This outcome will be achieved through

the application of relevant approaches;

Foster a robust and dynamic workforce that promotes a supportive culture that

recognises our corporate values

Provide a workplace environment that is healthy and safe; and

Provide career development and learning opportunities.

The WHS plan have been developed following a planning session completed with the

Executive on 1 February and subsequent consultation with the WHS Committee on 6

February.

Purpose of the Work Health and Safety Plan

This plan has several purposes including:

Achieve systematic and sustainable improvements in work health and safety and

outcomes for workers and visitors to the City of Burnside;

Give direction to the achievement of City of Burnside Work Health and Safety and

Return to Work Policy Objectives;

Outline clear responsibilities to relevant work health and safety and return to work

functions and levels at City of Burnside;

Respond to and meet legal and self-insurance requirements; and

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Demonstrate City of Burnside Executive and Management’s commitment to work

health and safety and return to work.

Scope

This plan applies to all workers and visitors to any City of Burnside facility or location.

Additionally, this plan encompasses any return to work requirements as a result of City of

Burnside’s self-insurance status for workers compensation.

Key Programs

Using the Performance Standards for Self Insurers and City of Burnside WHS Planing and

Program Development Procedure as a guide to identifying actions/tasks, the following

source material was analysed by Executive to arrive at the key programs: 2017 WHS Plan;

WHS Policies and Procedures; Skytrust incident/hazard data and 2018 risk evaluation

report.

Executive has now identified the following critical key programs;

Continuous improvement of chemical management system

Continuous improvement of contractor management system

Note: In addition to the key programs, a series of ongoing, system review and improvement

activities are planned, and documents are to be monitored by Executive during 2019.

Responsibilities and Priorities

Executive is accountable for checking that adequate resources and processes are identified,

provided and used to enact this plan. The WHS and Return to Work Policy and supporting

policies and procedures effectively outline further and more specific responsibilities as they

relate to particular hazards or areas of the management system.

Managers, Supervisors and staff members nominated in the plan are required to assist

Executive in meeting its responsibilities by enacting or incorporating health and safety and

return to work targets into Annual Departmental Programs.

Responsibilities for each objective and target are outlined in the Appendix 1

Consultation

This plan has been discussed with City of Burnside Executive and also the Work Health and

Safety Committee. Additionally, the plan in draft format was distributed for consultation in

accordance the WHS Consultation and Communication Procedure.

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Monitoring and Review

The implementation of this Work Health and Safety and Return to Work will be reviewed and

monitored via the WHS Committee and the quarterly report to Executive and the

Management Team.

This plan will be reviewed annually by Executive to ensure that it reflects the current needs

of the organisation, its workers and the hazards present in the work environment. Objectives,

targets and performance indicators (aligned to the aforementioned purpose and objectives of

the plan for subsequent years) will be confirmed as part of the Executive’s annual review

process.

Paul Deb Barry Cant

Chief Executive Officer Chairperson, Work Health and Safety Committee

Appendix

1. City of Burnside WHS and Risk Management Actions 2019

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City of Burnside WHS and Risk Management Actions Appendix 1 to WHS Plan 2019

PSSI Sub-

Element #Audit Year Audit Finding Audit Finding or Rationale Objective Target Performance Indicator Target Date Responsibility Status

Develop scope (including nominating auditors) and questions for

audit based on LGAWCS template1-Mar-19 WHSC

Undertake audit of Chemical Management System 1-May-19WHSC and

Internal AuditorReport findings to Executive and WHS Committee and agree on

actions to be implemented1-Jun-19 WHSC

Review and update the WHS Hazardous Chemical Procedure to

include the relevant information about the manifest requirements

for Council locations

Procedure Updated 1-Jul-19 WHSC

Train relevant staff on procedure 1-Aug-19

WHSC and

LGAWCS

consultant

Undertake chemical risk assessmenst in Chemalert 5 based on risk. 1-Dec-19

WHSC and

relevant

stakeholdersReview chemical request capacity within Chemalert 5 and

implement use as part of updated procedure (pre-purchase risk-

assessment)

1-Aug-19

WHSC and

relevant

stakeholdersReview with relevant stakeholders the monitoring tool within

Skytrust to ensure consistency with the procedure and business

requirements

1-Mar-19

WHSC and

relevant

stakeholdersUpdate Skytrust monitoring tool as required following

consultation.1-Apr-19

WHS Project

Officer

Investigate documentation of risk based monitoring decisions

within the Skytrust monitoring tool or alternative1-Apr-19

WHSC and

relevant

stakeholders

Train all contract managers and project managers in relation to

contract monitoring tool in Skytrust and expectations on their use1-May-19

WHSC and

LGAWCS

consultantConsult with relevant stakeholders regarding the use of Skytrust

Contractors module to capture and monitor insurance and

licencing documentation

1-May-19

WHSC and

relevant

stakeholders

Develop training resource for Skytrust Contractors moduleTraining resource

developed1-Jun-19

WHS Project

OfficerEducate, inform and train all relevant staff in use of Skytrust

Contractors module1-Jul-19 WHSC

Implement the Skytrust Contractors Module 1-Aug-19

WHS Project

Officer and

Procurement

staffUndertake audit of WHS and Risk components of selected

contracts to ensure application matches procedure1-Aug-19

WHSC and

Internal AuditorReview and update (as required) the WHS Contractor Management

Procedure to ensure procedure meets practice1-Oct-19 WHSC

Train all relevant staff on WHS Contractor Management Procedure 1-Nov-19

WHSC and

LGAWCS

consultant

WHS Programs

Gaps within the contractor management system

are identified, assessed and controls

implemented

Review the requirements for the Contractor

Management Systems to ensure that process

documented in the WHS Contractor management

Procedure are implemented (i.e. the procedure

meets practice)

Hazard Management systems including

identification and control are in place

Review the implementation of the chemical

management system, which includes the

process for the updating and keeping current

the safety data sheets in the various hard copy

chemical registers and a review of the storage

and labelling requirements for chemicals

(particularly including those chemicals which

are stored in the various hand held and back

pack spray units)

Yes20183.8.1

Audit Completed

Training undertaken

75% of high risk chemical

risk assessments

completed

Procedure Updated

Yes20183.8.6

189


Review existing workplace emergency plans to identify risks for

each site with the EPC (WHS Committee)1-Mar-19

WHSC and WHS

CommitteeWork with First 5 Minutes to develop a draft schedule 1-Apr-19 WHSCConsult with Chief Wardens, EPC (WHS Committee), HSRs and

Wardens on the draft1-May-19

WHSC and WHS

CommitteeFinalise and publish schedule for each site for 2019-2020 1-Jun-19 WHSCIdentify and complete input of remaining Compliance dates into

Skytrust1-Mar-19

WHS Project

OfficerReview Skytrust to determine reporting capacity from it for the

Leadership Group and Exec1-Mar-19

WHS Project

OfficerPublish compliance register report via agreed method on a

quarterly basis1-Apr-19

WHS Project

Officer

Input other health and safety training and licence data into

Skytrust1-Jul-19

People

Experience and

WHS Project

Officer

Raise awareness of Managers and Supervisors to ensure checking

of Skytrust records is included as part of the PDR process1-Sep-19

Monitor and report from Skytrust to ensure non-attendance is

closed out1-Oct-19

Review Training Needs Analysis and Training Records in Skytrust to

identify gaps1-Mar-19

WHSC and

relevant

stakeholders

Develop draft training plan, consult relevant stakeholders and

obtain approval1-Mar-19

WHSC and

relevant

stakeholders

Monitor and report from Skytrust as to completion of plan1 June

ongoingWHSC

Review existing WHS Management Procedure against model 'one

system' procedures and update as appropriate1-Mar-19 WHSC

Consult with relevant departments in relation to the updated

procedures and undertake further modification depending upon

consultation

1-Apr-19

WHSC and

relevant

stakeholdersTable final document with WHS Committee for approval 15-Apr-19 WHS CommitteeObtain final approval from Executive and distribute to relevant

staff1-May-19 WHSC and Exec


system' procedures and update as appropriate1-Apr-19 WHSC



consultation

1-May-19

WHSC and

relevant

stakeholders

Table final document with WHS Committee for approval 1-Jun-19 WHSC

Obtain final approval from Executive and distribute to relevant

staff1-Jun-19 WHSC and Exec

Submit implementation checklist to LGAWCS 1-Jul-19 WHSC


system' procedures and update as appropriate1-Jun-19 WHSC



consultation

1-Jul-19

WHSC and

relevant

stakeholdersTable final document with WHS Committee for approval 1-Aug-19 WHS CommitteeObtain final approval from Executive and distribute to relevant

staff1-Sep-19 WHSC and Exec


system' procedures and update as appropriate1-Jun-19 WHSC

Ongoing WHS System Improvements

There is a documented and published schedule

of emergency exercises for each site

Work collaboratively with First 5 minutes to

develop a consolidated schedule of emergency

exercises (based on the information in the WEEPs

for each site) and then plan and conduct exercises

in line with this schedule

Yes20183.7.1

System being used that

allows for the easy

identifications of training

needs, its planning and

reporting on training

gaps

Continue to improve integration of training

management system

Review how training records are received and look

at methods to record training data against the

needs identified and the training plan. Consider

how information is reported, training planned vs

attendance to ensure that training gaps are

captured

NC20182.3.1 & 3.2.1

System is being used that

allows for the easy

identification of training

needs, its planning and

reporting on training

gaps

Compliance register is updated with all

information and is regularly reported upon

At the time of the evaluation, not all the

frequencies had been populated for all items (this

information was still being located from other

systems and entered into Skytrust). Formal

reporting on the compliance register was still to be

developed (for example, exception reporting)

Develop, approve and resource training planN/AN/AN/A2.3.1

Review and update WHS & RTW procedures

against model 'one system' procedures -

Workplace Return to Work

N/AN/AN/A1.2.1 & 5.1.1

90% of scheduled

procedures reviewed and

updated


against model 'one system' procedures - WHS

Document Management

Review the document management process to

improve the efficiency of the endorsement /

adoption and sign off process

N/A20181.2.1

90% of scheduled


updated

1.2.1 & 5.1.1 2018 N/A N/A



Emergency management

90% of scheduled


updated

1.2.1 & 5.1.1 2018 N/A N/A



Internal Audit

90% of scheduled


updated

190




consultation

1-Jul-19

WHSC and

relevant

stakeholdersTable final document with WHS Committee for approval 1-Aug-19 WHS CommitteeObtain final approval from Executive and distribute to relevant

staff1-Sep-19 WHSC and Exec

Establish a schedule for the monitoring of high risk contracts 1-Mar-19

Complete monitoring inspections with relevant Council contract

manager1-Dec-19

Document and follow up corrective or preventative actions arising

from inspection activities1-Dec-19

Employees understand Return to Work rights and responsibilities

80% of new or returning

employees have

undertaken induction

that includes RTW rights

and responsibilities

1-Jan-20Employees and

Managers

Train Managers and persons responsible for Return to Work,

where Return to Work forms part of their role and responsibilities

80% Mangers &

Supervisors have

received RTW training

within 3 years

1-Jul-19 WHSC

Early reporting of injuries ensures report is made to LGAWCS in a

timely manner

80% claims forwarded to

LGAWCS within 24 hours

of notification from

worker

1-Jan-20 WHSC

Return to Work performance is reported at WHS Committee

meetings and analysis of system drivers into corrective action or

continuous improvement

Agenda on WHS

Committee1-Jan-20

WHSC and WHS

Committee

Identify high risk procedures to be audited and develop a schedule 1-Mar-19WHSC and

auditor

Complete audit with selected departments or personnel 1-Dec-19WHSC and

auditorReport relevant findings of completed audits to WHS Committee

and Executive1-Jan-20

WHSC and

auditor

Survey workers in relation to Wellness activities desired by

workers supplementary to LGAWCS / CHG program components1-Mar-19

People

Experience

Promote LGAWCS / CHG program events 1-Mar-19

People

Experience and

WHS Project

Officer

Organise and run Wellfest 13-May-19People

Experience

Evaluate participation rates in program events 1-Oct-19

People

Experience and

WHS Project

Officer

Develop and publish an agreed calendar of inspections for all work

areas1-Mar-19

WHSC, WHS

Project Officer

and WHS

Committee

Schedule and report upon completed inspections in Skytrust 1-Jan-20 WHSC

Apply to LGAWCS for Tailored Implementation Program (TIP)

following CEO approval1-May-19 WHSC

1.2.1 & 5.1.1 2018 N/A N/A



Emergency management

90% of scheduled


updated

N/A

N/A N/A N/A N/A

WHSC and

Contract

Manager

100 % of scheduled

audits completed

Check that monitoring of high risk contracts is

being undertakenN/AN/AN/A

90% of scheduled

inspections completed

N/A

To increase employee

participation rate from

the current rate

Increase participation in wellness activitiesN/AN/AN/AN/A

Meet LGAWCS Return to Work Core elements

and associated performance indicators

90% of scheduled audits

completed

Complete WHS Management System procedure

audits to a scheduleN/AN/AN/A

Confined Space Procedure and practice reviewN/AN/AN/AN/A

N/A N/A N/A N/AComplete health and safety inspections of all

work areas to a schedule

191


Agree with LGAWCS consultant scope of TIP review 1-Jun-19

WHSC and

LGAWCS

consultantReceive report following TIP review and prioritise

recommendations for implementation1-Aug-19 WHSC

Report findings to Executive and WHS Committee and agree on

actions to be implemented1-Oct-19 WHSC and Exec

Undertake consultation regarding the name of the Psychological

Incident Register i.e. should it be named around Bullying and

Harassment etc. and who should receive any reports lodged

1-Mar-19WHS Project

Officer

Undertake testing of system 1-May-19

WHS Project

Officer and

relevant

stakeholders

Communicate results of consultation and testing to relevant

stakeholders1-May-19

WHS Project

Officer and

relevant

stakeholdersCommunicate the implementation of Psychological Incident

Register and inform all staff of how to attend training1-Jun-19

WHS Project

Officer

Roll out training - either online or in personTraining / induction

developed and delivered1-Jun-19

WHS Project

Officer

Review existing and / or develop new online induction for new

starters or people who are unable to attend in person training1-Aug-18

WHS Project

Officer and

People

Experience

Update WHS and People Experience policies and procedures as

relevant1-Sep-19

WHS Project

Officer and

People

ExperienceUpdate intranet references or links to Skytrust to include this

reporting1-Sep-19

WHS Project

Officer

Follow up testing and system maintenance

Follow up testing and

system maintenance

undertaken

1-Nov-19WHS Project

Officer

Special Conditions form that is currently

associated with Section 221 permit has reference

to previous legislation

Review LGAMLS template section 221 permit and update existing

City of Burnside section 221 permit should any changes be

identified

1-Apr-19

Principal Traffic

Engineer and

Team Leader

RangersConsult with relevant internal stakeholders to ensure proposed

changes are appropriate and publish new version1-May-19

Project Sponsor identified and scope agreed upon 1-Mar-19 Executive

Project Team Lead and members identified and agreed to 1-Apr-19Executive and

Leadership Team

Project Team research industry approaches and trends 1-May-19 Project TeamDraft Management Protocol developed 1-Jun-19 Project LeadDraft Management Protocol sent to relevant stakeholder for

review and feedback1-Jul-19 Project Lead

Management Protocol updated as required with feedback 15-Jul-19 Project LeadManagement Protocol approved by Executive 1-Aug-18 Executive

Managment Protocol communicated to relevant stakeholders 1-Sep-19 Project Lead

Confined Space Procedure and practice reviewN/AN/AN/AN/A

Documents and agreed Event Management

Protocol published and communicated to

relevant stakeholders

Council does not have a finite documented

process for management of events, thought

events are risk assessed via an Events Risk

Assessment Plan and running sheet

N/A

All Section 221 Permits (including special

conditions) are up to date.

Ongoing Risk System Improvements

Consultation and Testing

undertaken

Policies and intranet

updated

Provide a confidential reporting capacity within

Skytrust for mental health / wellbeing incidentsN/AN/AN/A

192

PLANNED TRAINING

DATEINTERNAL / EXTERNAL

EXPECTED TRAINING

TIMETRAINING ORGANISER / TRAINER(S) COST GROUP OR INDIVIDUAL? VENUE

BOOK COURSE /

COMMENTSPLACES / PEOPLE

Internal 2 x 1 day First Aid St John 1890 Group Civic

Internal 4 hoursVenemous Animal

AwarenessWorking with Wildlife 3400 Group Depot

Internal 1 hour Emergency Response First5Minutes 600 Group Civic

Internal 1 hour Emergency Response First5Minutes 600 Group Depot

Internal 1 hourEmergency Response

First5Minutes 600 Group Pepper Street

Internal 1 hour Emergency Response First5Minutes 600 Group Pool

External 3 days HSR Level 2SafeWork SA Accredited

Provider700 Individual Offsite

Internal 2 hours Lifeguard refresher Inhouse trainers 0 Group Pool



Internal 1 dayWorking Safely at Heights

MSS Pump, Seal and Safety 2200 Group Depot

External 1 dayWorking Safely near live

electrical apparatusSAPN 2100 Group Offsite







1 dayChemAlert v. 5 Training and

Awareness ChemAlert 2500 Group TBA

Internal 1 day WZTM Access Training Centre 11725 Group Offsite

Internal 3 hours Manual Handling Pinnacle 550 Group Civic




Internal 4 hours Plant Risk Assessment LGRS 700 Group Civic

InternalWorkplace Inspection

ProcessesWHS and Risk Team 0 Group Civic



No training planned

FEBRUARY

APRIL

City of Burnside Corporate WHS & RTW Training Schedule 2019

MARCH

JANUARY

193

Internal 1 day ChemAlert internal update WHS and Risk Team 0 Group Civic

Internal 1 day Enter Confined Space MSS Pump, Seal and Safety 2500 Group Depot

Internal 1 day Asbestos / Blue Card Greencap 1800 Group Depot

Internal 2 x 1 hourDriver Awareness Session

SAPOL 0 Group Depot



Internal 2 day Mental Health First Aid CHG 302.5 Individual Offsite



Internal 4 hours iResponda LGA 0 Group Depot

Internal 4 hoursDog Bite Prevention

Workshop

Adelaide Veterinary Behaviour

Services1650 Group Civic

Internal 1 hourContractor Management

RefresherWHS and Risk Team / LGAWCS 0 Group Civic



Internal 1 day First Aid St John 1890 Group Depot

Internal 1 hourArmed Holdup Awareness

TrainingSAPOL 0 Group Civic

Internal 1 hour

Bushfire Safety

Preparedness and

Response

CFS 0 Group Depot

Internal 1 hour

Bushfire Safety

Preparedness and

Response

CFS 0 Group Depot

Internal 1 hour

Bushfire Safety

Preparedness and

Response

CFS 0 Group Civic

Internal 1 hour

Bushfire Safety

Preparedness and

Response

CFS 0 Group Civic

Internal 1 dayPool Lifeguard Update

CourseSurf Lifesaving SA 500 Group Swimming Centre



JULY

AUGUST

JUNE

MAY

OCTOBER

SEPTEMBER

194

Internal 1 hour Emergency Response First5Minutes 600 Group Regal

Internal 1 hour Emergency Response First5Minutes 600 Group Civic

Internal 1 hour Emergency Response First5Minutes 600 Group Pool

Internal 1 hour Emergency Response First5Minutes 600 Group Depot









Internal 2 hours Lifeguard refresher Inhouse trainers 0 Group Pool



No training planned

DECEMBER

NOVEMBER

195

City of Burnside - WHS Internal Audit

Internal Audit Activity Reason Jan 2019

Feb 2019

Mar 2019

Apr 2019

May 2019

Jun 2019

Jul 2019

Aug 2019

Sep 2019

Oct 2019

Nov 2019

Dec 2019

Chain of Responsibility New area of management

responsibility

Stephen +

Andrew S

Hazardous Chemical Procedure (Audit scope – Swimming Centre and Operations Services)

Foundational procedure which other

rely on functioning

correctly

Stephen + LGAWCS Consultant

WHS Contractor Management Procedure (Audit scope – Whole of Organisation)

Risk Evaluation non-conformance

Stephen +

Procurement

Contractor Monitoring/Evaluation

High risk construction

related activities or high risk services

delivered by contractor

on Council’s behalf

See below for specific contracts to be assessed or audited

Contractor Monitoring Activity Reason April 2019 May 2019 Jul 2019 Sep 2019 Nov 2019

Strategic Projects – strategic project High risk

construction

activity

Stephen & Aaron

Civil Projects - footpath construction High risk

construction activity

Peter B, Stephen

Operations Services – tree pruning / removal High risk public

safety activity Chris H,

Stephen

Contractor Monitoring - Kerb/Drainage construction

High risk construction

activity

Josh W, Stephen

Contractor Monitoring - weed spraying Working on or

near roads Jon M, Stephen

196


Item No: 5.6 To: Council Date: 18 February 2019 Author: Stephen Smith – WHS and Risk Management Coordinator General Manager and Division:


Subject: UPDATED RISK MANAGEMENT FRAMEWORK Attachments: A. Risk Management Framework (new version) Prev. Resolution: C10811, 13/9/16

A4126, 20/8/18



2. That the updated Risk Management Framework be presented to Council for consideration and adoption following endorsement by the Committee.

Purpose

1. To provide the Audit Committee with an update on areas of change within the Risk Management Framework and for the Risk Management Framework to be presented to Council for consideration and adoption.

Strategic Plan





3.1 Discussions with Colleen Green – Strategic Risk Consultant, from LGA Mutual Liability and Workers Compensation Schemes (LGAMLS/LGAWCS).

Statutory


Section 48 (aa1) of the Local Government Act 1999 Act requires Council to develop and maintain prudential management policies, practices and procedures for the assessment of projects to ensure that the council; and (b) identifies and manages risks associated with a project.

Section 134(4)(b) of the Local Government Act 1999 (the Act) requires Council to adopt risk management policies, controls and systems specifically in relation to borrowing and related financial arrangements.

199


Policy

5. The following Council Policy is relevant in this instance:

Risk Management Policy

Risk Assessment

6. There are no risks associated with the recommendation.

CEO Performance Indicators

7. There are no impacts on or threats to achieving the CEO’s Performance Indicators with this recommendation.

Finance

8. There are no financial implications for the City of Burnside in respect of the recommendation.

Discussion

Background

9. The City of Burnside has had a Risk Management Policy and Framework in place since 2003.

10. The Framework was last reviewed by the Audit Committee on 15 August 2016. On 20 August 2018, the Audit Committee noted that the Administration would review the Risk Management Framework and update as necessary to ensure it remains consistent with the updated Risk Management Policy.

11. This review has now taken place to meet the scheduled review timeframe as determined for the framework.

12. The purpose of the Risk Management Framework is to outline the requirements and processes that support Council’s Risk Management Policy.

Analysis

13. The principal purpose of the review was to ensure consistency with AS ISO 31000:2018 Risk Management – Guidelines and appropriate coverage of all aspects of the risk management process aligned to the current organisational context.

14. A comparison was made to several other metropolitan Council’s Risk Management Frameworks and the Risk Management Framework template created by LGAMLS/LGAWCS was adopted for efficiency.

15. Whilst adopting the template, changes have been made to ensure that our current organisational operational and strategic context is reflected within the document.

16. In summary, changes have been made to the following sections of the document:

16.1. risk categories against which risk will be categories once identified;

16.2. risk control ratings when considering residual level risks;

200


16.3. risk tolerance or acceptance levels; and

16.4. risk consequence rating table.

Conclusion 17. The Risk Management Framework has been reviewed and updated to align with the

LGAMLS/LGAWCS template, the current Australian Standard on Risk Management and our organisational context.

201

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Risk Management Framework Electronic version on the Intranet is the controlled version. Printed copies are considered uncontrolled. Before using a

printed copy, verify that it is the current version.

Page 1 of 30

Classification Framework

First Issue/ Approved November 2003

Last Reviewed February 2019

Next Review February 2021

ECM Tracking No.:

Responsible Officer WHS and Risk Management Coordinator

Relevant Legislation Local Government Act 1999

Related Documents AS/NZS ISO 31000:2009 Risk Management – Principles and Guidelines

ISO 31000:2018 Risk Management - Guidelines

City of Burnside Risk Management Policy


Work Health and Safety Act 2012

Civil Liabilities Act 1936

City of Burnside Governance

Internal Financial Control Framework Policy

Prudential Project Management Policy

Work Health Safety and Return to Work Policy

202

http://inside.burnside.sa.gov.au/templates/Images and Logos/Logos/Burnside Logo - colour JPG.jpg

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Table of Contents

1 Purpose ...................................................................................................................................... 4

2 Risk Management Principles ....................................................................................................... 4

3 Risk Management Framework .................................................................................................... 5

3.1 Leadership and commitment .................................................................................................. 6

3.2 Integration .............................................................................................................................. 6

3.2.1 Enterprise Risk Management .......................................................................................... 6

3.2.2 Strategic & Business Planning/Decision Making.............................................................. 7

3.2.3 Legislative Compliance ................................................................................................... 7

3.2.4 Service Delivery (including events) ................................................................................. 8

3.2.5 Internal Audit .................................................................................................................. 8

3.2.6 Emergency Management ................................................................................................ 8

3.2.7 Business Continuity Plan and Disaster Recovery ............................................................ 8

3.2.8 Performance Management ............................................................................................. 8

3.2.9 Information Management ................................................................................................ 9

3.3 Design ................................................................................................................................... 9

3.3.1 Understanding the organisation and its context ............................................................... 9

3.3.2 Roles and responsibilities ............................................................................................... 9

3.4 Improvement and Monitoring ................................................................................................ 10

4 Risk Management Process ....................................................................................................... 11

4.1 Communication and Consultation ......................................................................................... 11

4.2 Scope and context ............................................................................................................... 12

4.2.1 Defining the scope ........................................................................................................ 12

4.2.2 Defining the context ...................................................................................................... 12

4.3 Risk Assessment ................................................................................................................. 12

4.3.1 Risk Identification ......................................................................................................... 12

4.3.2 Risk Analysis ................................................................................................................ 13

4.3.3 Risk Evaluation............................................................................................................. 15

4.4 Risk Treatment..................................................................................................................... 16

4.4.1 Risk treatment options .................................................................................................. 16

4.4.2 Treatment characteristics ............................................................................................. 17

4.4.3 Preparing and implementing risk treatment plans .......................................................... 17

4.5 Monitoring and Review ......................................................................................................... 17

4.5.1 Review of risks and controls ......................................................................................... 17

4.5.2 Project risks.................................................................................................................. 18

4.5.3 Internal audit ................................................................................................................ 18

4.5.4 Review of Risk Management Framework ...................................................................... 18

5 Recording and reporting ........................................................................................................... 18

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5.1 General ................................................................................................................................ 18

5.2 Risk register ......................................................................................................................... 19

5.2.1 Strategic Risks ............................................................................................................. 19

5.2.2 Operational Risks ......................................................................................................... 19

5.2.3 Project Risks ................................................................................................................ 19

5.3 Risk reporting ....................................................................................................................... 19

5.3.1 Purpose........................................................................................................................ 19

5.3.2 Content ........................................................................................................................ 20

6 Training .................................................................................................................................... 20

6.1 Workers ............................................................................................................................... 20

6.2 Elected Members ................................................................................................................. 20

6.3 Audit Committee .................................................................................................................. 21

7 APPENDICES .......................................................................................................................... 22

7.1 Appendix A: Definitions ........................................................................................................ 22

7.2 Appendix B: Consequence Tables........................................................................................ 25

7.3 Appendix C: Likelihood Table ............................................................................................... 28

7.4 Appendix D: Risk Matrix ....................................................................................................... 29

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Introduction

City of Burnside is committed to an integrated approach to risk management to assist us in setting appropriate strategies, achieving our objectives and making informed decisions, in the best interests of our community.

City of Burnside recognises that managing risk is part of governance and leadership, is fundamental to how the organisation is managed at all levels and will contribute to continuous improvement of its management systems.

City of Burnside’s Strategic Plan Desired Outcome is: Delivery of good governance in Council business. This will be achieved through our approach – regularly review, update and adopt leading governance, risk management and administrative practices.

The risk management process is not an isolated function and can be applied to any activity, including decision making, at all levels. Effective identification, analysis, evaluation and treatment of defined risks are critical to City of Burnside achieving its objectives and meeting overall community expectations.

1 Purpose

This Framework outlines the requirements and processes supporting City of Burnside’s Risk Management Policy in order to create and protect value by improving performance, encouraging innovation and supporting the achievement of City of Burnside’s objectives.

This Framework will:

a) Align with the objectives of the Risk Management Policy;

b) Establish roles and responsibilities for managing risk;

c) Establish a standardised, formal and structured process for assessment, treatment and monitoring of identified risks;

d) Encourage innovation by integrating risk management into the strategic and operational processes across all departments of City of Burnside;

e) Ensure that City of Burnside maximises its opportunities, whilst minimising any negative impacts identified during the risk management process;

f) Ensure that all risks outside the defined risk tolerances are escalated to the relevant manager and additional treatment options implemented;

g) Ensure that (standard) reporting protocols are established for information dissemination across all City of Burnside departments; and

h) Assist in the development of a continuous improvement culture by integrating risk management processes into all City of Burnside functions.

2 Risk Management Principles

The international standard for Risk management - Guidelines (ISO 31000:2018) describes risk as:

“…the effect of uncertainty (either positive, negative or both) on objectives…”

The goal is not to eliminate all risks, but rather to manage risks involved in City of Burnside’s functions and services and to create and protect value for our community and its stakeholders.

ISO 31000:2018 is based on the following eight principles, which underpin this Framework and guide how we manage risk across City of Burnside:

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Integrated An integral part of all organisational processes

Part of decision-making Aids decision-makers in making informed choices and identifying the most effective course of action

Structured and comprehensive Contributes to efficiency and to consistent and comparable results

Best available information Based on historical and current information, as well as on future expectations, taking into account any limitations associated with such information and expectations.

Customised Aligns with the internal and external context related to our objectives

Human and cultural factors Recognises that the behaviour and culture can significantly influence the achievement of objectives

Inclusive Requires appropriate and timely involvement of stakeholders to enable their knowledge, views and perceptions to be considered

Dynamic Anticipates, detects, acknowledges and responds to changes in City of Burnside’s internal and external contexts that result in new risks emerging and others changing or disappearing

Continual improvement Learning and experience drives continuous improvement

3 Risk Management Framework

Leadership & commitment

Integration

Design

ImplementationEvaluation

Improvement

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3.1 Leadership and commitment

City of Burnside and its Executive and Leadership Team will demonstrate leadership and commitment to ensure that risk management is integrated into all organisational activities by:

a) Developing and implementing risk management policy, framework and supporting tools and processes;

b) Allocating appropriate resources for risk management; and

c) Assigning roles, authorities, responsibilities and accountabilities with respect to risk management and communicating these at all levels of the organisation.

3.2 Integration

This Framework provides the methods and processes City of Burnside use to manage risks and identify opportunities in every part of the organisation.

Governance guides the direction of the organisation and provides the rules, processes and practices necessary for City of Burnside to achieve its objectives. Management structures that define risk management accountability and oversight roles across the organisation are critical to achieving the strategy and objectives required for City of Burnside to achieve sustainable performance and long-term viability.

Risk Management is not just about the risk assessment process nor is it a stand-alone discipline. In order to maximise risk management benefits and opportunities, it requires integration through City of Burnside’s entire operations, as follows:

3.2.1 Enterprise Risk Management

Enterprise risk management encompasses Strategic and Operational Risk Management.

Enterprise risk

management

Strategic & business

plans/ decisions

Legislative compliance

Service delivery

Internal audit

Health and Safety

Business continuity & Emergency

Management

Performance management

Information

management

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Strategic Risks are identified by reference to both the external environment and City of Burnside Strategic Community Plan – Be the Future of Burnside. Strategic risks are monitored by the Executive and Elected Member body, with all risk assessments captured in the Risk Register and recorded within City of Burnside’s Intranet.

Operational Risks arise from City of Burnside’s day-to-day departmental functions and operations to deliver essential services. Operational risks are monitored by City of Burnside’s Executive and/or Leadership Team.

3.2.2 Strategic & Business Planning/Decision Making

Strategic and Business Planning, (which includes long-term financial planning and annual budgeting,) must adequately consider the risks facing City of Burnside in setting and pursuing its objectives and the effectiveness of systems that are in place to manage and communicate those risks.

Risk Management will be integrated into City of Burnside’s governance structures, including decision making. Risk assessment and management processes will be incorporated into Council and Committee reports, where there is a potential impact on achievement of City of Burnside’s objectives or on the wider community.

Elected Members are expected to:

a) give adequate consideration to risks when setting City of Burnside’s objectives;

b) understand the risks facing City of Burnside in pursuit of its objectives;

c) oversee the effectiveness of systems implemented by the organisation to manage risk;

d) accept only those risks that are appropriate in the context of City of Burnside’s objectives; and

e) consider information about such risks and make sure they are properly communicated to the appropriate stakeholder or governing body.

3.2.3 Legislative Compliance

The Local Government Act (SA) 1999 applies to the functions of City of Burnsides in South Australia, specifically;

Section 125 of the Local Government Act 1999 requires Council to 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.

Section 132A of the LG Act requires Council to ensure that appropriate policies, practices and procedures are implemented and maintained in order to ensure compliance with statutory requirements and achieve and maintain standards of good public administration.

Section 134(4)(b) of the Local Government Act 1999 (the Act) requires Council to adopt risk management policies, controls and systems specifically in relation to borrowing and related financial arrangements.

Due to the diversity of functions and services provided by City of Burnside, a range of other Acts, Regulations and Codes of Practice and Standards also apply. Work Health and Safety is a critical component of City of Burnside’s risk management system and addresses risks facing workers conducting their specified duties.

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3.2.4 Service Delivery (including events)

City of Burnside’s risk exposures vary according to the functions, facilities and services it provides and these will inevitably change over time. City of Burnside’s planning processes will address both the risks associated with provision of functions, facilities and services, (such as capacity and resources,) and risks arising from their delivery, (such as public safety and community reputation).

3.2.5 Internal Audit

Internal audit is an independent, objective assurance and consulting activity designed to add value and improve the organisation’s operations. It helps City of Burnside to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. The process of internal audit may result in the identification of new risks or more effective treatments for existing risks. For the City of Burnside this function is achieved through the use of internal and external resources.

3.2.6 Emergency Management

City of Burnside plans for, and undertakes, prevention, preparedness, response and recovery activities to support its community in the event of emergencies and natural disasters. This process includes consultation and co-operation with lead agencies and participation in the Eastern Adelaide Zone Emergency Management Committee as well as providing information and training for workers to protect them from harm whilst responding to emergencies and natural disasters.

3.2.7 Business Continuity Plan and Disaster Recovery

City of Burnside is obliged to ensure that critical business functions continue after a business interruption. City of Burnside has developed plans, taking into consideration reasonably foreseeable risks and their potential impact on achievement of City of Burnside’s objectives.

Business Continuity Plan (BCP), which is designed to manage risk by limiting or reducing the impact of a disruption, (such as severe weather event or loss of key personnel), and enable the resumption of critical business functions/services of City of Burnside following a disruption.

IT Disaster Recovery Plan (DRP), is intended to protect and recover City of Burnside’s Information Technology infrastructure and data in the case of a disruptive event, (such as cyberattack or loss of infrastructure,) by defining actions to be taken before, during and after an event.

3.2.8 Performance Management

Both risk management and performance management start with the establishment and communication of corporate goals and objectives and development of strategies which are then cascaded throughout the organisation. Appropriate measures and reporting structures will be put in place to monitor the effectiveness of City of Burnside’s risk management processes, (at an individual and organisational level), which will in turn assist in identifying gaps or emerging risks.

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3.2.9 Information Management

Not only is it critical to the achievement of City of Burnside’s objectives that it retains data and corporate knowledge, there are strong regulatory requirements to do so. City of Burnside must comply with the State Records Act 1997, Commonwealth Privacy Act 1988 and Freedom of Information Act 1991.

3.3 Design

3.3.1 Understanding the organisation and its context

Establishing the context involves those involved in the risk management process understanding factors internal and external to the organisation that may influence City of Burnside’s ability to achieve its objectives.

City of Burnside’s risk management culture, organisational structure, strategy and objectives are factors that define City of Burnside’s internal context.

The external environment may include a range of factors such including (but not limited to):

a) increased legislative and compliance requirements;

b) altered funding from different levels of government

c) community expectations and demands; and

d) Social, cultural, political, technological, economic, natural and built environment.

3.3.2 Roles and responsibilities

The following roles and responsibilities ensure a transparent approach to managing risk within City of Burnside.

Roles Responsibilities

Council Endorse Council’s Risk Management Policy

Ensure that risks are adequately considered when setting Council’s strategies and objectives

Understand the risks facing Council in pursuit of its objectives

Ensure there is a systematic and effective approach to managing risk and opportunity across Council operations that is implemented, monitored and communicated

Apply risk management principles to the decision making process

Monitor Council’s strategic risks

Audit Committee Review and endorse the Risk Management Framework

Ensure a framework is implemented and delivers a consistent approach to risk management by assigning authority, responsibility & accountability at appropriate levels within the organisation

Review reports from management and auditors and monitor that controls have been implemented

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Roles Responsibilities

Chief Executive Officer (CEO)

Promote a risk management culture by providing support for risk management including ensuring appropriate accountability for the management of risk.

Ensure a policy and framework are in place and implemented that deliver a consistent approach to risk management

Ensure that appropriate resources are allocated to managing risk

Ensure Managers have the necessary knowledge and skills to effectively fulfil their risk management responsibilities and are accountable for risks arising from the activities of their departments

Regularly review Council’s strategic and operational risks

Leadership Team

Commitment to, and promote the Risk Management Policy and Framework

Implementation, maintenance and evaluation of risk management within their areas of responsibility in accordance with this Framework.

Include risk treatments into departmental plans (as appropriate)

Creating an environment where each worker is responsible for and actively involved in managing risk.

Regularly review risks on the risk register (at least annually)

Review Councils Strategic Risks (as required)


Provide guidance and assistance to all staff in relation to the application of this framework and reporting within the Risk Register

Ensure relevant risk information is reported and escalated to the Executive, Leadership Time or Audit Committee or cascaded to staff, as relevant

Maintain the Risk Management Policy and Framework to ensure its currency and accuracy

Maintain the Risk Register and timeframes as required

Provide support and advice to Group Managers and staff in the application and use of the Risk Management Framework

Workers, Volunteers & Contractors

Identifying potential risk and for the , evaluate, report and manage risks in their daily activities and projects

3.4 Improvement and Monitoring

To maintain and improve the value of risk management to the organisation, City of Burnside will monitor and adapt its risk management framework, with a view to continually improve the suitability, adequacy and effectiveness of the risk management process and its implementation

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within the organisation.

The City of Burnside risk management system will be externally audited and reviewed Local Government Risk Services are part of their Risk Evaluation process, with findings used to drive improvement. Additionally, the system may be subject to internal audit as part of the program organised by the City of Burnside with its audit provider.

4 Risk Management Process

Having good risk management practices ensures that City of Burnside can undertake activities knowing that measures are in place to maximise the benefits and minimise the negative effect of uncertainties. Risk management involves both the management of potentially adverse effects as well as the fulfilment of potential opportunities. The risk management process is an integral part of management and decision-making and will be/is integrated into City of Burnside’s structure, operations and processes.

The dynamic and variable nature of human behaviour and culture should be considered throughout the risk management process.

4.1 Communication and Consultation

Establishing a communication and consultation plan with internal and external stakeholders is critical to the success of the risk management process. Effective communication and consultation throughout the process is essential to ensure that those responsible for implementing risk management, and those with a vested interest, understand the basis on which risk management decisions are made and why particular actions are required.

City of Burnside will engage with stakeholders throughout the risk management process to:

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a) Correctly identify risks and understand context

b) Gain a better understanding of the views and interests of stakeholders and how their expectations may be managed;

c) Capitalise on the diversity of knowledge, opinions and experience to enhance identification and management of risks and opportunities; and

d) Build a sense of inclusiveness and ownership amongst stakeholders,

4.2 Scope and context

4.2.1 Defining the scope

Because the risk management process is applied at different levels throughout the organisation, it is important to define the scope and it’s alignment with City of Burnside’s objectives; this should include consideration of:

a) Goals and objectives of risk management activities;

b) Proposed outcomes and timing;

c) Responsibilities and accountabilities for the risk management process;

d) Risk management methodologies;

e) Processes, activities and projects and how they may interact with other processes, activities and projects of City of Burnside;

f) How effectiveness and/or value will be measured and monitored; and

g) Availability of resources to managed risk.

4.2.2 Defining the context

Defining the context is important because

a) Risk management takes place in the context of City of Burnside’s objectives and activities; and

b) Organisational factors can be a source of risk; and

The context should reflect the specific environment of the activity to which the risk management process is to be applied, and consider the factors outlined in 3.3.1.

4.3 Risk Assessment

4.3.1 Risk Identification

The aim of risk identification is to develop an inclusive list of events that may occur which - if they do - are likely to have an impact on the achievement of City of Burnside’s objectives, as stated in its Strategic Community Plan and Corporate Plan. City of Burnside identifies, assesses and treats risk in the following three groups (risk types):

Strategic Uncertainty that could affects the achievement of City of Burnside’s Strategic Community Plan or Corporate Plan objectives.

Operational Uncertainty that could impact upon a number of actions or processes within or across a Division or Department.

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Project Uncertainty that could affect projects on a day to day basis.

Risk identification naturally flows on from the context discussion and is a process of formally documenting the effects of uncertainty on objectives. An effective approach is to engage as many stakeholders as possible in a structured identification process.

The aim is to generate a list of risks based on those impacts or events. During the identification process, there are a number of questions that need to be asked to capture the information required:

a) What might happen/ what could go wrong?

b) What is the cause?

c) How does this affect the objective?

After a risk is identified, it may be categorised and captured in the Risk Register in accordance with the following categories:

The process of risk identification must be comprehensive as risks not identified are by nature excluded from further analysis. Care must be taken to identify and define risks, rather than causes or consequences. Based on the risks faced by the organisation, there may be other categories.

4.3.2 Risk Analysis

Risk analysis involves developing an understanding of a risk. It provides an input to risk evaluation and to decisions on whether risks need to be treated, and the most appropriate risk treatment strategies and methods. The tables included in the appendices are City of Burnside’s tools for expressing the consequence, likelihood and level of risk.

4.3.2.1 Inherent and residual risk

A “risk rating” can be determined by combining the estimates of effect (consequence rating) and cause (likelihood rating). The risks are to be assessed against all consequence categories; and the highest consequence rating will be used.

The first rating obtained will be the inherent risk rating, (i.e. the level of risk at time of risk assessment with no controls.) Once further and additional controls are added to reduce the consequence and/or likelihood, the risk is rated again to determine the residual risk, (i.e. the level of risk remaining after risk treatment).

Safety FinancialService Delivery

Legal & Rgulatory

Reputation Environment

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When determining the Likelihood or the Consequence of a risk occurring, it is important to take into consideration existing control measures. Once existing controls have been identified, it is necessary to evaluate them for effectiveness.

Ineffective Not effective at all in mitigating the risk (will not have any effect in terms of reducing the likelihood and/or consequence of the risk)

Negligibly Effective Controls in place in some circumstances (but will have very little effect in terms of reducing the likelihood and/or consequence of the risk)

Partially Effective Partial control most of the time (will have some effect in terms of reducing the likelihood and/or consequence of the risk)

Majority Effective Effective in most circumstances (will have a reasonably significant effect in terms of reducing the likelihood and/or consequence of the risk)

Effective Fully effective at all times (will significantly reduce the likelihood and/or consequence of the risk at all times).

4.3.2.2 Risk appetite

The Executive, in consultation with Elected Members, are responsible for defining City of Burnside’s risk appetite, taking into consideration the nature and extent of the risks City of Burnside is willing to take in order to achieve its strategic objectives.

City of Burnside’s risk appetite will be included in City of Burnside’s regular review process of the Risk Management Framework. .

4.3.2.3 Risk tolerance/Acceptance

Not all risk types for City of Burnside are the same in terms of their acceptability. Once a risk has been analysed, it needs to be compared to City of Burnsides tolerance levels. Tolerance can be described as the organisation’s willingness to bear each of the risks after implementation of controls in order to achieve its objectives.

What level of residual risk (after treatment) are we willing to tolerate in the pursuit of our objectives?

Risk Category Low Medium High Extreme

Reputation

Safety

Financial

Legal and Regulatory

Service Delivery

Quality (project risk)

Schedule (project risk)

If the assessed risk level is above the tolerable level for that category of risk then treatment may be required. If it is equal to, or below, the tolerable level for that

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category of risk then the risk can be accepted, (provided the controls are implemented).

4.3.3 Risk Evaluation

Risk Evaluation is the process used to assist in making decisions, based on the outcomes of risk analysis, about which risks need treatment and the priority for implementation of controls. Decisions should take account of the wider context of the risk and include consideration of the tolerance of the risks borne by parties other than City of Burnsides who may benefit from the risk. There are also circumstances whereby, despite the risk level, risks cannot be treated.

Risk level Managing risk – priority rating

Extreme CEO authorised to accept risks at this level

Escalate risk issue immediately to CEO/Executive

CEO/Executive to: o Refer risk to risk owner o Identify and develop treatment strategies for immediate action o Monitor and review actions/strategies o Provide direction and information to relevant stakeholders

Consider cessation/suspension of the activity giving rise to the risk until such time as CEO/Executive authorises its continuation and/or whilst other risk treatment strategies are being developed/implemented

For WHS related risks, the following applies: o Operation of item or activity should not be allowed to continue

until the risk level has been reduced

o Will commonly be an unacceptable level of risk

o May include both short term and long term control measures

High General Manager authorized to accept risks at this level

Escalate risk issue to relevant General Manager

General Manager to: o Refer to relevant risk owner o Identify and develop treatment strategies with appropriate

timeframes o Monitor and review actions/strategies to manage risk to an

acceptable level o Provide direction and information to relevant stakeholders

For WHS related risks, the following applies:

o Reduce the risk rating so far as is reasonably practicable

o Should only be an acceptable level of risk for ‘Major’ or ‘Catastrophic’ consequences

Medium Group Manager authorised to accept risks at this level

Manage within department o Identify and develop treatment strategies with appropriate

timeframes o Monitor and review actions/strategies to manage risk to an

acceptable level

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o Reduce the risk rating so far as is reasonably practicable. May be an acceptable level of risk

Low Add risk to City of Burnsides Risk Register

Undertake localised risk management & actions (if required)

Review within the department parameters and routine procedures


o Reduce the risk rating so far as is reasonably practicable. Commonly is an acceptable level of risk

4.4 Risk Treatment

Risk treatment can be conducted using a variety of methods. When looking at risks, treatments are aimed at reducing or removing the potential for consequences occurring. However when looking at opportunities, treatments look at ensuring that consequences are realised.

Risk treatment involves selecting one or more options for modifying risks, and implementing those options. Once implemented, treatments provide or modify the controls. An action should be implemented to treat certain risks.

Justifications for risk treatment is broader than solely economic considerations and should take into account all of City of Burnside’s obligations, voluntary commitments and stakeholder views. Appropriate risk treatment options should have regard to City of Burnside’s objectives, risk criteria and available resources.

City of Burnside will tolerate a level of risk, in accordance with the risk tolerances set out in section 5.3.2.3 Any risk that is rated at or above a tolerable level of risk should be discussed with the relevant department to have a treatment plan in place.

4.4.1 Risk treatment options

Risk treatment options are not necessarily mutually exclusive or appropriate in all circumstances. Options may include:

Avoid Treat the risk by avoiding the event that would lead to the risk or remove the asset or cease the delivery of the service completely.

Share Allocate risk to a third party, such as through appropriate contactor management or insurance arrangement

Mitigate Implement a treatment control to that will reduce the likelihood and/or consequence of the risk. This may include but is not limited to options such as substitution (swapping), isolation (barricade), engineering (modify by design) or administration (policy/process)

Accept or Retain

Risks can be accepted or retained for a number of reasons including:

no extra treatments being available;

meets the stated target for the type of risk;

informed decision has been made about that risk despite the level of risk being above the target level ; and

treatment would cost more than the consequences of the risk

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(but not just in dollar terms).

4.4.2 Treatment characteristics

Risk treatments need to be designed in a manner to ensure they are sufficient to mitigate that risk, and have some of the following characteristics if they are to become an adequate control:

a) Documented (e.g. Policies, procedures, task lists, checklists)

b) Systems-oriented (e.g. integrated and/or automated)

c) Preventative (e.g. system controls) or detective

d) Consistent and regular (including during staff absence)

e) Performed by competent and trained individuals

f) Clear responsibility and accountability

g) Create value (i.e. benefits outweigh costs)

h) Achievable for the organisation (based on available resources)

i) Evidenced

j) Confirmed independently

4.4.3 Preparing and implementing risk treatment plans

Risk treatment plans specify how the risk treatment options will be implemented, so that those involved understand what arrangements are in place and to allow progress against the plan to be monitored. Risk treatment plans may be integrated into City of Burnside’s existing processes, (e.g. project management plans, risk registers,) and provide the following information:

a) Rationale for selection of treatment options;

b) Responsibilities and accountability for approving and implementing the plan;

c) Proposed actions and timeframes;

d) Resourcing requirements;

e) Constraints and contingencies; and

f) Required reporting and monitoring.

4.5 Monitoring and Review

4.5.1 Review of risks and controls

Monitoring and review must be a formal part of the risk management process and involves regular checking or surveillance of the effectiveness and efficiency of the risk management processes implemented.

A monitoring and review process will:

a) Ensure that implemented controls are effective and adequate;

b) Provide further information to improve risk assessment and treatment plans;

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c) Identify any (new) activities that may influence established strategies to mitigate risks.

It is essential to monitor all activities and processes in order to capture any new or emerging risks arising from the changing environment, (both internal and external) and the activities undertaken by City of Burnside.

Monitoring and review guidelines and timeframes are captured in the Risk Reporting structure. See section 7.

4.5.2 Project risks

Due to the dynamic nature of most projects, a risk may change over the lifecycle of the project, triggering the need for reassessment. The monitor and scheduled review process allows for validation of risks to ensure that they remain relevant and adaptation of project plans as necessary. Any changes in risks throughout the project and after its completion should be recorded and used for future project planning.

4.5.3 Internal audit

The audit process plays an important role in evaluating the internal controls (and risk management processes) currently employed by City of Burnside. Council’s internal audit program is ‘risk based’ and provides assurance that we are managing priority risks appropriately. In developing the Internal Audit Plan consideration is given to the extreme, high and moderate risks identified by the risk assessment process. Internal audits assess the adequacy of selected controls identified.

Information is shared between the risk management and internal audit functions. Similarly, control issues identified through internal audit will inform our Risk Register. The internal audits are conducted to provide assurance that key risks have been identified and the controls in place are adequate.

4.5.4 Review of Risk Management Framework

The review of City of Burnside’s risk management framework and processes will be scheduled for completion within 3 years from endorsement.

5 Recording and reporting

5.1 General

The risk management process and its outcomes should be documented and reported, in order to:

a) Communicate risk management activities and outcomes;

b) Provide information for decision making;

c) Continuous improvement;

d) Assist interaction with stakeholders, including those with responsibility and accountability for risk management activities.

Records will be managed and retained in accordance with State Records General Disposal Schedule 20 for Local Government.

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5.2 Risk register

The Risk Register enables City of Burnside to document, manage, monitor and review strategic, project and operational risk information in order to build a risk profile and provide direction on how to improve risk management processes. Risks that are not recorded are not able to be managed and the risk exposure of City of Burnside is unlikely to be reduced. The Risk Register can be used to monitor whether, using the approach outlined in this framework, the risk management process for opportunities is resulting in an increasing trend towards potential for success and less risk with negative consequences.

5.2.1 Strategic Risks

City of Burnside will identify and record Strategic Risks on the Intranet Risk Register. Strategic level risks are identified by the Executive and Leadership Team and the City of Burnside, as part of an annual review at a minimum. Any risks identified at the Strategic level may be reflected in other corporate documents e.g. Strategic Plan, Annual Business Plan, and Asset Management Plans and mitigated through action detailed in these documents; however these should be collated in the Risk Register for ease of monitoring and review.

Recording and reporting of Strategic level risks is the responsibility of the WHS and Risk Management Coordinator via Executive and Audit Committee.

5.2.2 Operational Risks

City of Burnside will record and maintain Operational risks on the Intranet Risk Register, which is reviewed at least annually by Group Managers. The Risk Register will incorporate departmental risks and proposed mitigation techniques, as determined by the evaluation process. Recording operational level risks in the register and updating of implementation and effectiveness of controls is the responsibility of Group Managers in conjunction with the WHS and Risk Management Coordinator.

5.2.3 Project Risks

Project level risks can be identified by anyone at any time prior to, and during, specified projects and are recorded within the Risk Register. Project level risks must be identified during the Planning process, however can be added as and when necessary. Recording and reporting of Project level risks rest with the identified Project Owner.

5.3 Risk reporting

5.3.1 Purpose

Risk based Reports will draw data from the Risk Register and provide monitoring and profile information to Executive and Leadership Team and Audit Committee in order to:

a) Understand the risk exposure of the City of Burnside;

b) Identify risks that require increased attention and action;

c) Provide risk information to the City of Burnside; especially anything effecting the Strategic Management Plan;

d) Provide information to all workers at all levels to make risk informed decisions; and

e) Improve the Risk Management awareness and culture at City of Burnside

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5.3.2 Content

Risk reporting will include:

a) All Council and Committee reports to include identification of potential risks, based on completed risk assessment;

b) An annual review and update of the Risk Register by Group Managers, (or as otherwise required, e.g. organisational structure change/ process change/ new project);

c) Quarterly review of Extreme/ High Operational Risks by Executive;

d) Annual review of Strategic Risks by Executive and Leadership Team provided to the Audit Committee;

e) All new Strategic Risks reviewed by Executive and Leadership Team as required; and

f) Any risks rated as HIGH or EXTREME after the consideration or implementation of treatment options are reported to City of Burnside’s Audit Committee.

g) Any actions that are overdue for HIGH and EXTREME risks to the Leadership Team

6 Training

6.1 Workers

This Framework and supporting policies and tools will be made available to all workers through the intranet.

City of Burnside’s Training Needs Analysis (TNA) is a tool used to:

a) capture legislative training and/or licencing requirements, and

b) identify individual tasks within specific jobs and the core competencies required for the safe performance of those jobs.

Risk Management awareness training is captured on City of Burnsides TNA, to ensure the effective implementation of this Framework.

Risk Management should be viewed as an umbrella that is overarching across all City of Burnside functions, not as a specialist skill that is owned by a designated risk management position and, as such, City of Burnside considers it to be a skill and necessity that workers need to perform their day to day activities. Risk Management awareness training will be provided by City of Burnside to relevant workers and will take into consideration the role of the worker within the Risk Management Framework and the level of past risk management experience and knowledge.

6.2 Elected Members

Elected members are key strategic decision makers and it is therefore imperative that they have an understanding of City of Burnside’s Risk Management Policy and Framework and their role in informed decision making based on sound risk management principles.

Risk Management awareness training will be scheduled within 12 months of elections.

Elected member will be informed of Councils approach to risk management through a number avenues. The induction provided to new elected members will start the process of education with further specific risk information provided to elected members either as a standalone topic

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or as part of relevant discussions, for example project risks, financial risk, reputation risks, etc.

6.3 Audit Committee

Audit committee members should, at a minimum, have an understanding of their roles and responsibilities as outlined in City of Burnside’s Risk Management Policy and Framework, including the monitoring and review of risk management reports and outcomes from management and external auditors.

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7 APPENDICES

7.1 Appendix A: Definitions

Key Definitions

Assurance: A process that provides a level of confidence that objectives will be achieved within an acceptable level of risk

Consequence: The outcome of an event expressed qualitatively or quantitatively, being a loss, injury, disadvantage or gain. There may be a range of possible outcomes associated with an event.

Controls: An action that modifies risks and increases the likelihood that objectives and goals of Council will be achieved.

Enterprise Risk Management:

ERM can be defined as the process affected by an organisation's board of directors (elected members/Audit Committee for City of Burnsides), management and other personnel, applied in strategy setting and across the organisation, designed to identify potential events that may affect the entity, manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of Council's objectives.

Environmental Risk: Risk relating to impact that Council may have on the environment through its services, activities or actions

Exposure: The risk exposure is a qualitative value of the sum of the consequence of an event multiplied by the likelihood of that event occurring

External Context: External environment in which Council seeks to achieve its objectives

Financial Risk: Risk relating to the Council's financial sustainability or financial management.

Frequency: A measure of the rate of occurrence of an event expressed as the number of occurrences of their event in a given time.

Inherent Risk: Risk at time of risk assessment without existing/current controls

Internal Audit:

An independent, objective assurance and consulting activity designed to add value and improve Council’s operations. It helps Council to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

Internal Context: Internal environment in which Council seeks to achieve its objectives

Legal and regulatory risk: Risks relating to failure or inability to comply with legal or regulatory compliance

Likelihood: Chance of something happening

Monitor: To check, supervise, observe critically or record the progress of an activity, action or system on a regular basis in order to identify change.

Operational Risks: Risks associated with departmental functions and daily operations to deliver core services.

People Risks: Risk to the organisation caused by its people, (e.g. relating to culture or behaviour,) or the risk of harming people, (whether employees or not).

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Key Definitions

Project Risks: Risks associated with Project Management that may affect milestones or deliverables connected to a specific project.

Residual Risk: Rating of the risk remaining after risk treatment or control has been applied.

Risk: An event or uncertainty that will stop an organisation to achieve its objectives

Risk Analysis: A systematic use of available information to determine how often specified events may occur and the magnitude of their consequences.

Risk Appetite: Is the amount of risk an organisation is prepared to accept or avoid. Broad-based description of the desired level of risk that an entity will take in pursuit of its mission

Risk Assessment: An overall process of risk identification, risk analysis and risk evaluation

Risk Escalation: A requirement whereby an increasingly higher level of authorisation is required to sanction the continued tolerance of increasingly higher levels of risk.

Risk Evaluation: The process used to determine risk management priorities by comparing the level of risk against predetermined standards, target risk levels or other criteria.

Risk Management: Coordinated activities to direct and control an organisation with regard to risk.

Risk Management Culture: Risk Management culture refers to the behaviours that lead to how every person thinks about and manages risks,

Risk Management Framework: Set of components that provide the foundations and organisational arrangements for designing, implementing, monitoring, reviewing and continually improving risk management throughout the organisation.

Risk Owner: Staff member with the accountability and authority to manage a risk

Risk Rating: Risk priority based on consequence and likelihood assessments

Risk Register: Register of all identified risks, their consequences, likelihood, rating and treatments. It works well when it is a live document and the risks are reviewed on a periodic basis.

Risk Tolerance:

Council’s or stakeholder’s readiness to bear the risk after risk treatment/control has been applied in order to achieve its objectives. It also reflects the acceptable variation in outcomes related to specific performance measures linked to objectives the entity seeks to achieve

Risk Treatment:

Risk treatment is a risk modification process - Usually the risk treatment means what are you going to do (modify) with the risk based on its residual risk rating, i.e. • Avoid • Transfer • Accept or retain • Share

Safety Risk: Risk to Council caused by its people, the operating environment and equipment they the risk of harming people, (whether employees or not).

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Key Definitions

Service Delivery Risk: Risk relating to the Council's ability to provide or maintain services, structures and/or facilities

Stakeholder: Person or organisation that can affect, be affected by, or perceive themselves to be affected by, a decision or activity

Strategic risks:

Risks associated with high level strategic goals that align to City of Burnsides Strategic, Annual and Business Plans. Strategic risks may affect the achievement of City of Burnside’s corporate objectives-They are key issues for the management and impinge on the whole business rather than a business unit. These risks can be triggered from within the business or externally. In other words they may stop the organisation from achieving its strategic goals.

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7.2 Appendix B: Consequence Tables

Qualitative Measures of Consequence (excluding Project Risks)

RANK Safety Financial Service Delivery Reputation Environmental Legal/Regulatory

Insignificant No or minor injuries not

requiring first aid treatment, or near miss

Low financial impact – low financial loss

<$10,000 (or up to 2% of budget)

Minimal delay in undertaking routine

tasks or services

No appreciable effect on public image

No appreciable environmental change

No legal or regulatory impact

Minor First aid treatment. Minor financial impact $10,000 to $50,000 (or

up to 5% of budget)

Minor impact on undertaking routine

tasks or services

Minor acknowledged effect on public image, low news profile

Minor impact to environment, e.g. on-site chemical release that can be immediately contained. Can be reversed in the short term

Minor legislative or policy/procedure breach

Moderate Significant Injury requiring medical

attention.

High financial impact $50,000 to $250,000 (or

up to 15% of budget)

Moderate impact on undertaking routine

tasks or services

Moderate public image impact, moderate news profile

Moderate impact to environment. Localised damage that has potential to spread but can be contained. Damage is reversible with remediation.

Negligent breach or noncompliance with legislation or policies, lack of good faith

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RANK Safety Financial Service Delivery Reputation Environmental Legal/Regulatory

Major Extensive injuries -

serious long term injury. Temporary disablement.

Major financial impact $250,000 to $1,000,000 or up to 30% of budget

Major impact on undertaking routine

tasks or services

Sustained public image impact, High negative news profile

Severe localised environmental damage or danger of continuing environmental damage.

Major/serious breach of legislation with formal investigation or report to authority with prosecution and/or fines possible.

Catastrophic Death

Catastrophic financial impact $1,000,000 or more (or up to 50% or

more of budget)

Prolonged suspension of task or service

Widespread public image impact, State Government level involvement, Prolonged high negative news profile

Toxic off-site chemical release with detrimental effect, major loss of environmental amenity or irreversible environmental damage

Extensive fines and litigation with possible class action; threat to viability of activity or service.

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Consequence Table for Project Risks

RANK Cost Schedule Quality Reputation Safety

Insignificant Up to 2.5% of

project budget

Little or no impact Would cause the delivered project to be functionally fit for all desired key project benefits or tasks, but there may be some

exception to the level to which it would deliver non-critical key benefits or task.

Use ratin

g from

abo

ve table for this con

sequ

ence

Use ratin

g from

abo

ve table for this con

sequ

ence

Minor Between 2.5 – 10% of project budget

Short delay or impact – increased by less than 2% of

schedule

Would cause the delivered capability to be functionally fit for all desired key benefits or tasks, but there would be several exceptions to the level to which it would deliver non-critical

key benefits or task.

Moderate Between 10-14% of project budget

Significant delay or impact – increase greater than 5% of

schedule

Would cause the delivered capability to be partly functionally fit for purpose (i.e. degraded ability to meet key benefits or

tasks; however, there are known workarounds). There would be some qualification to the level to which it would deliver key benefits (e.g. due to issues of relationships, concurrency, etc.).

Major Between 15-19% of project budget

Major delay or impact – increase

greater than 10% of schedule

Would cause the delivered capability to be only partly functionally fit for purpose (i.e. degraded ability to deliver

some key benefits or essential tasks or unable to deliver non-core benefits or tasks, and there are no known workarounds).

Catastrophic 20% or more of project budget

Project halted or prolonged delay – increased greater

than 20% of schedule

Would cause the delivered capability to be functionally unfit for its intended purpose (i.e. unable to deliver key benefits or

essential tasks).

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7.3 Appendix C: Likelihood Table

Likelihood Explanation – Operations Explanation – Projects

Certain

It is expected to occur in most circumstances, immediately or within a short period – likely to occur most weeks or months.

Could be expected to occur more than once during the study or project delivery

Likely Will probably occur in most circumstances – several times a year.

Could easily be incurred and has generally occurred in similar studies or projects.

Possible Might occur at some time - within a one – two year period.

Incurred in a minority of similar studies or projects

Unlikely Could occur at some time - in a two - five year time frame.

Known to happen, but only rarely.

Rare May occur only in exceptional circumstances. Could be incurred in a 5-30 year timeframe.

Has not occurred in similar studies or projects. Conceivable but in extreme circumstances.

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7.4 Appendix D: Risk Matrix

Likelihood

Consequence

Insignificant Minor Moderate Major Catastrophic

Certain Medium High High Extreme Extreme

Likely Medium Medium High Extreme Extreme

Possible Low Medium Medium High Extreme

Unlikely Low Low Medium High High

Rare Low Low Low Medium High

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LGAMLS Risk Management Framework Template

Electronic version on the Intranet is the controlled version. Printed copies are considered uncontrolled. Before using a printed copy, verify that it is the current version.

Page 30 of 30

231

AUDIT COMMITTEE FORWARD AGENDA FEBRUARY 2019

Feb-19 Apr-19 Jun-19 Aug-19 Oct-19ANNUAL BUSINESS PLAN AND LONG TERM FINANCIAL PLAN Annual Business Plan and Budget Long Term Financial Plan Fees and Charges

ANNUAL REPORT AND EXTERNAL AUDIT Annual Report (Strategic) External Auditor’s Interim Report/ Update External Auditor’s Report to the Council for Year End External Auditor Presentation Independence of Council Auditor Appointment of external auditor

REGIONAL SUBSIDIARIES Regional Subsidiary Periodical Financial Results ERA Water - Standing Item Attendance from Regional Subsidiary Rep BHKC

INTERNAL REVIEWS AND INTERNAL AUDIT Internal Audit Plan Update / Review Appointment of Internal Auditor Update on WHS

AUDIT COMMITTEE RELATEDAudit Committee Terms of Reference Review Of Audit Committee Activities (Operational)Forward Agenda

REGISTERS:Key Actions and Outstanding Key Dates Table (April and Oct) Policy Protocol Tracking Table (Feb and Aug) Register Compliance Table (April and Oct)

POLICIES: Fees and Charges Non Rates Policy Fees and Charges Discounts Policy Prudential Policy Treasury Management Policy Asset Disposal Policy Corporate Credit Card Policy Fixed Asset Financial Reporting Policy General Ledger Financial Information Policy

The Committee shall meet at 6.00pm on the third Monday of February, April,June, August, and October or as otherwise determined by Council(whether as the result of a motion upon notice in or an Officer’s Report toCouncil).

2019

As Needed

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