Town of Bassendean: Minutes
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TOWN OF BASSENDEAN
MINUTES
AUDIT & RISK MANAGEMENT COMMITTEE MEETING
HELD IN THE COUNCIL CHAMBER, 48 OLD PERTH ROAD, BASSENDEAN
ON WEDNESDAY 12 AUGUST 2009 AT 12.30PM
1.0 DECLARATION OF OPENING/ANNOUNCEMENT OF VISITORS
The Presiding Member, Her Worship the Mayor, Cr Tina Klein JP, opening the meeting at 12.30pm and welcomed all those in attendance.
2.0 ATTENDANCES, APOLOGIES AND APPLICATIONS FOR LEAVE OF ABSENCE
Present
Her Worship the Mayor, Cr Tina Klein JP, Presiding Member
Cr Michelle Stubbs
Cr Sam Piantadosi JP
Cr Don Yates
Mr Ron Back, Consultant
Officers
Mr Michael Costarella Director Corporate Services
Ms Sue Perkins Executive Assistant/Minute Secretary
Apologies
Nil.
3.0 DEPUTATIONS
Nil.
Cr Yates entered the Chamber, the time being 12.30pm.
4.0 CONFIRMATION OF MINUTES
4.1 Minutes of the Meeting held on 13 May 2009
COMMITTEE/OFFICER RECOMMENDATION – ITEM 4.1
MOVED Cr Stubbs, Seconded Cr Klein, that the minutes of the meeting held on 13 May 2009, be confirmed as a true record.
CARRIED UNANIMOUSLY 4/0
5.0 ANNOUNCEMENTS BY THE PRESIDING PERSON WITHOUT DISCUSSION
Nil.
6.0 DECLARATIONS OF INTEREST
The Director Corporate Services declared an impartiality interest in Item 8.1, 2008/09 Interim Audit, as the Auditor, Mr Anthony Macri, the Proprietor of the audit firm, is a family acquaintance.
7.0 BUSINESS DEFERRED FROM PREVIOUS MEETING
Nil.
8.0 REPORTS
8.1 2008/09 Interim Audit – Macri & Partners (Ref: Michael Costarella, Director Corporate Services
APPLICATION
The purpose of this report is to provide Council, through the Audit and Risk Management Committee, with the Interim Audit Report and provide management comments and information on the remedial action taken.
Declaration of Interest
The Director of Corporate Services declares an impartiality interest in this item as the Auditor, Mr Anthony Macri, the Proprietor of the Audit firm, is a family acquaintance.
BACKGROUND
In May 2008, Macri & Partners Auditors reviewed:
- Purchases;
- Payments and creditors;
- Rate receipts and Rate Debtors;
- Receipts and Sundry Debtors;
- Payroll;
- General Accounting and Computer Environment; and
- Registers(tender register and register of Financial Interest).
A copy of the report was attached to the agenda for the Committee’s consideration.
The review also covered an examination of some compliance matters which are required under the Local Government Act 1995 (as amended) and the Financial Management Regulations 1996.
Interim Audit of systems and processes provides a level of assurance to auditors, the CEO, the Committee and Council in relation to the level of controls that are in place and staff adherence to those controls.
The Audit and Risk Management Committee may recommend that Council receives the Interim Audit Report and note management’s comments.
COMMENT
In each of the areas covered, the Auditors consider the controls and procedures in place are adequate, however, have raised a number of issues that can be improved.
A summary of the issues identified by the Auditor is included in the attached, as well as comments made by management.
The DCS recommends that the Internal Audit Report prepared by Macri & Partners be received and that the management’s comments be noted.
COMMITTEE/OFFICER RECOMMENDATION – ITEM 8.1
ARM – 01/08/09 MOVED Cr Piantadosi, Seconded Cr Stubbs, that the Audit and Risk Management Committee receives the Interim Audit Report from Macri & Partners for the year ended 30 June 2009.
CARRIED UNANIMOUSLY 4/0
8.2 2009/10 Opening Surplus - Budget Review (Ref: FINM/BUGTG/1– Michael Costarella, Director of Corporate Services
APPLICATION
The purpose of this report is to review the Budget and suggest amendments that will provide a small surplus totalling $14,974 at the conclusion of the 2009/10 financial year. The Director Corporate Services recommends that the Audit Committee approves the adjustments and recommends to Council to amend the adopted 2009/10 Budget.
BACKGROUND
The Local Government Act requires a budget review be completed at least once each financial year and traditionally the Town has completed that review in February/March.
However, the estimated opening surplus for the 2009/10 financial year of $126,234 was not achieved and the current estimated closing deficit totals $191,657. Additionally there was redundancy payments for JPET staff that were not covered by the grant totally $54,696. This increased the closing deficit to $372,588. Staff believe it is imperative that the adopted Budget is amended to reflect the new amount.
COMMENT
In assessing the estimated closing surplus for the 2008/09 totalling $126,234, Staff had taken into account the sale of land of some $300,000 but had also under estimated the expenditure for the end of the financial year. Accordingly the opening amount was understated by some $372,588.
A spreadsheet detailing the estimated Closing Surplus for the 2008/09 year and the opening surplus for the 2009/10 year, is included as an attachment.
In order to “balance the budget”, staff have identified a number of projects that can be deleted from its Operational and Capital Budgets to provide for the opening surplus of $126,234.
The projects to be considered for deletion or amended by Council are as follows:
Suggested Adjustments to 2009/10 Budget |
Budget |
Adjustment |
Balance in Budget |
Reduced Expenditure |
|
|
|
Guildford Road Median Strip |
$100,000 |
$100,000 |
$0 |
Customer Service Air-conditioning |
$43,880 |
$43,880 |
$0 |
Alfresco Dining Old Perth Road |
$15,000 |
$15,000 |
$0 |
Mary Crescent Reserve - Detailed Design |
$50,000 |
$50,000 |
$0 |
Infrastructure Officer |
$70,000 |
$19,000 |
$51,000 |
Cyril Jackson Floor Sanding |
$20,000 |
$20,000 |
$0 |
Admin Services - Air Con |
$25,000 |
$25,000 |
$0 |
Purchase of Vehicles |
$75,000 |
$75,000 |
$0 |
Street Trees |
$50,000 |
$25,000 |
$25,000 |
Total Adjustments to 2009/10 |
$448,880 |
$372,880 |
$76,000 |
Guildford Road Median Strip $100,000
Staff believe this project can be deferred for one year with minimal impact on the community.
Customer Service Air-conditioning $43,880
Staff believe that this project can be deferred and considered at the budget review in February or in the 2010/11 financial year.
Alfresco Dining Old Perth Road $15,000
Staff believe this is another project for deferment with minimal impact on the community. The costs provided some 15 months ago were indicative only and prior to commencing these works, there is a need to determine an accurate scope of works.
Mary Crescent Reserve - Detailed Design $50,000
This project has been included in the Budget, however, staff believe this project will not be completed in the immediate future and could be delayed and included for consideration in the February 2010 budget review.
COMMITTEE/OFFICER RECOMMENDATION – ITEM 8.2 (a)
ARM – 02/08/09 MOVED Cr Yates, Seconded Cr Stubbs, that the Audit and Risk Management Committee recommends to Council the following amendments to the 2009/10 adopted Budget:
Suggested Adjustments to 2009/10 Budget |
Budget |
Adjustment |
Balance in Budget |
Reduced Expenditure |
|
|
|
Guildford Road Median Strip |
$100,000 |
$100,000 |
$0 |
Customer Service Air-conditioning |
$43,880 |
$43,880 |
$0 |
Alfresco Dining Old Perth Road |
$15,000 |
$15,000 |
$0 |
Mary Crescent Reserve - Detailed Design |
$50,000 |
$50,000 |
$0 |
Infrastructure Officer |
$70,000 |
$19,000 |
$51,000 |
Cyril Jackson Floor Sanding |
$20,000 |
$20,000 |
$0 |
Admin Services - Air Con |
$25,000 |
$25,000 |
$0 |
Purchase of Vehicles |
$75,000 |
$75,000 |
$0 |
Street Trees |
$50,000 |
$25,000 |
$25,000 |
Total Adjustments to 09/10 |
$448,880 |
$372,880 |
$76,000 |
DUE TO AN EQUALITY OF VOTES (2/2) THE PRESIDING MEMBER USED HER SECOND VOTE TO VOTE AGAINST THE MOTION AND THEREFORE THE MOTION WAS LOST 2/3.
Those Councillors in favour of the motion were Crs Yates and Stubbs . Those Councillors against the motion were Crs Klein and Piantadosi.
MOVED Cr Klein that the “Alfresco Dining Old Perth Road” project be retained and implemented in favour of removing the summer movie project.
LAPSED FOR WANT OF A SECONDER.
COMMITTEE RECOMMENDATION – ITEM 8.2 (b)
ARM – 03/08/09 MOVED Cr Stubbs, Seconded Cr Yates, that:
1. The Audit and Risk Management Committee recommends to Council that the following projects be deferred and reconsidered at the budget review in February 2010:
Suggested Adjustments to 2009/10 Budget |
Budget |
Adjustment |
Balance in Budget |
Reduced Expenditure |
|
|
|
Guildford Road Median Strip |
$100,000 |
$100,000 |
$0 |
Customer Service Air-conditioning |
$43,880 |
$43,880 |
$0 |
Alfresco Dining Old Perth Road |
$15,000 |
$15,000 |
$0 |
Mary Crescent Reserve - Detailed Design |
$50,000 |
$50,000 |
$0 |
Infrastructure Officer |
$70,000 |
$19,000 |
$51,000 |
Cyril Jackson Floor Sanding |
$20,000 |
$20,000 |
$0 |
Admin Services - Air Con |
$25,000 |
$25,000 |
$0 |
Purchase of Vehicles |
$75,000 |
$75,000 |
$0 |
Street Trees |
$50,000 |
$25,000 |
$25,000 |
Total Adjustments to 09/10 |
$448,880 |
$372,880 |
$76,000 |
and
2. Should the land in Iveson Place sell, then these projects will be reinstated.
CARRIED UNANIMOUSLY 4/0
9.0 MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN
Nil.
10.0 ANNOUNCEMENTS OF NOTICES OF MOTION FOR THE NEXT MEETING
Nil.
11.0 CONFIDENTIAL BUSINESS
Nil.
12.0 CLOSURE
The next meeting is to be held on Wednesday, 11 November 2009, commencing at 12.30pm.
There being no further business, the Presiding Member closed the meeting at 1.30pm.
