Town of Bassendean: Agenda
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TOWN OF BASSENDEAN
NOTICE OF A MEETING OF THE
AUDIT AND RISK MANAGEMENT COMMITTEE
Dear Committee Member
A meeting of the Audit and Risk Management Committee of the Town of Bassendean is to be held in the Council Chamber, 48 Old Perth Road, Bassendean, on Wednesday, 12 November 2008 commencing at 12.30pm.
Mr G Haggart
ACTING CHIEF EXECUTIVE OFFICER
4 November 2008
A G E N D A
1.0 DECLARATION OF OPENING/ANNOUNCEMENT OF VISITORS
Due to the resignation of Mr Chris Merfield, who was Presiding Member of this Committee, the Deputy Presiding Member, Cr Tina Klein, will chair the meeting.
Consideration will need to take place to fill the position of Presiding Member.
2.0 ATTENDANCES, APOLOGIES AND APPLICATIONS FOR LEAVE OF ABSENCE
3.0 DEPUTATIONS
4.0 CONFIRMATION OF MINUTES
4.1 Minutes of the Meeting held on 9 July 2008
OFFICER RECOMMENDATION – ITEM 4.1
That the minutes of the meeting held on 9 July 2008, be confirmed as a true record.
5.0 ANNOUNCEMENTS BY THE PRESIDING PERSON WITHOUT DISCUSSION
6.0 DECLARATIONS OF INTEREST
7.0 BUSINESS DEFERRED FROM PREVIOUS MEETING
8.0 REPORTS
8.1 Annual Financial Statements for the Year Ended 30 June 2008 (Ref: G042 – Mike Costarella, Director Corporate Services)
Report Summary
- Council is required to adopt an Annual Report which includes the Annual Financial Statements, prior to 31 December each year.
- The Annual Financial Statements are presented to the Audit & Risk Management Committee for it to recommended to Council for adoption.
- Following adoption of the Annual Report, including the Annual Financial Statements, by Council, the General Meeting of Electors is to be held within 56 days of the adoption and is scheduled for early February 2009.
PURPOSE
The purpose of this report is to present the Annual Financial Statements to the Audit & Risk Management Committee (ARMC) to enable to Committee to recommend to Council that the Annual Financial Statements, for the year ended 30 June 2008, be adopted.
BACKGROUND
Section 8.3(x) – Duties and Responsibilities of the Audit and Risk Management Committee – Instrument of Appointment and Delegation states:
Recommend adoption of the annual financial report to Council. Review any significant changes that may arise subsequent to any such recommendation but before the financial report is signed.
As such, the Annual Financial Report is included with this agenda. The ARMC is requested to recommend that Council adopts the Annual Financial Statements as part of the Annual Report. The Annual Report and Financial Statements will be presented to the Standing Committee in December and adopted at the Ordinary Council meeting in December 2008.
Once the Annual Report has been adopted by Council, the CEO is required to give local public notice of the availability of the report. Additionally, a General Meeting of Electors is to be held within 56 days of the adoption by Council of the Annual Report.
RELEVANT LAW
The Local Government Act specifies as follows:
Section 5.53. Annual reports
(1) The local government is to prepare an annual report for each financial year.
(2) The annual report is to contain:
(a) a report from the mayor or president;
(b) a report from the CEO;
[(c) (d) deleted]
(e) an overview of the plan for the future of the district made in accordance with section 5.56, including major initiatives that are proposed to commence or to continue in the next financial year;
(f) the financial report for the financial year;
(g) such information as may be prescribed in relation to the payments made to employees;
(h) the auditor’s report for the financial year;
(ha) a matter on which a report must be made under section 29(2) of the Disability Services Act 1993; and
(i) such other information as may be prescribed.
Section 5.54. Acceptance of annual reports
(1) Subject to subsection (2), the annual report for a financial year is to be accepted* by the local government no later than 31 December after that financial year.
* Absolute majority required.
(2) If the auditor’s report is not available in time for the annual report for a financial year to be accepted by 31 December after that financial year, the annual report is to be accepted by the local government no later than 2 months after the auditor’s report becomes available.
Section 5.55. Notice of annual reports
The CEO is to give local public notice of the availability of the annual report as soon as practicable after the report has been accepted by the local government.
CONSULTATION
The external auditors have prepared the Statements for Council’s adoption.
POLICY & STRATEGIC IMPLICATIONS
The Financial Statements are important to give a clear picture of the Town’s financial position and performance for the year in achieving the outcomes specified in the Strategic Plan.
SUSTAINABILITY CONSIDERATIONS
The adoption of the Annual Financial Statements does not affect sustainability considerations, however, if the Town does not manage its financial affairs, it will negatively impact on its ability to manage its infrastructure and assets for future generations.
FINANCIAL IMPLICATIONS
The cost of publishing the Annual Report, including the Annual Financial Statements, is approximately $6,500.
OPTIONS
Council must adopt the Annual Report by 31 December as a requirement of the Local Government Act, unless it has not received the Auditors’ report in time. As the Town has received the Auditors’ report, Council must adopt the Annual Report by 31 December 2008.
COMMENT
The Annual Financial Statements give a picture of the financial performance and the position of the Council following the 2007/08 year.
The Independent Audit Report provided by the Town’s Auditors, Marci & Partners, is included in the Financial Report.
The report is presented to the Audit and Risk Management Committee in order for the Committee to recommend adoption by Council.
Members will note that the Audit Report is again unqualified and this indicates that the Auditors were satisfied that the Town’s accounting processes complied with the requirements of the Local Government Act and Regulations under that Act, and other mandatory professional reporting requirements.
SURPLUS/DEFICIT
Council had budgeted for a closing surplus of $56,971 for the 2007/08 financial year. The actual surplus was $67,813. This amount was achieved following the deduction of the provision for leave which does not form part of the budget closing surplus. Attached is a spreadsheet that details the opening and closing surplus. The Director Corporate Services will provide an explanation at the meeting.
OFFICER RECOMMENDATION – ITEM 8.1
The Audit and Risk Management Committee recommends to Council, through the December 2008 Standing Committee, that:
1. The Town of Bassendean’s Annual Financial Report for the year ended 30 June 2008, be adopted;
2. The Independent Audit Report from Marci & Partners, be received; and
- Following the adoption of the Annual Report in December 2008, that a General Meeting of Electors be held on Tuesday, 3 February 2009.
8.2 Playground Safety Audits 2008 (Ref: PLES/TENDNG/11 – Ian McDowell, Manager Asset Services)
Report Summary
- In May 2008, the Town engaged the services of Recreation Safety Australia to carry out an external audit of our playgrounds and play equipment.
- This report provides information to the Audit and Risk Management Committee in relation to the audit.
PURPOSE
The purpose of this report is to present the Audit and Risk Management Group with the results of the Playground Safety Audit conducted by Recreation Safety Australia in May 2008.
BACKGROUND
The Town of Bassendean has a formal inspection program for its playgrounds and play equipment. The program includes one independent external audit. The external audit was completed in May 2008 by Recreation Safety Australia.
SUSTAINABILITY & STRATEGIC PLAN ALIGNMENT
In carrying out its functions a local government is to use its best endeavours to meet the needs of current and future generations through an integration of environmental protection, social advancement and economic prosperity. (Section 1.3 of the Local Government Act).
This report has a low strategic impact.
Environmental Enhancement: To ensure an integrated approach to enhancing the built environment and protecting the natural environmental that provides a sustainable environment for future generations.
Natural Environment 2 – Improve the Town’s Parks and Reserves
- Implement ten year strategic playgrounds strategy and commence upgrades.
Community Wellbeing: To enhance the quality of community life in the Town characterised by vibrant participation, cohesiveness, increased social capital and recognition of the need for social justice and community safety.
Community Development 4 – Improve Community Safety and Health
Leadership in Business Excellence: To strengthen the Town’s position as an innovative, independent local government achieving business excellence.
Strategy & Planning – Effective Planning for the Sustainable Management of the Town’s Financial Resources and Assets
- Develop long term asset management and financial management plans for the sustainable utilisation of the Town’s resources
RISK MANAGEMENT
The Community & Legal Liability
In the past the Town has received public liability claims from members of the community who have been injured whilst using our playgrounds and play equipment. The Town has a formal inspection program in place that includes one independent external audit. The purpose of this program is to reduce the opportunity for injury to users by quickly identifying and resolving faults and/or hazards through the conduct of structured inspections using an approved checklist.
OPTIONS
The Audit and Risk Management Committee is being asked only to receive information provided by the external auditor. Implementation of the recommendations and actions of the audit will be managed operationally by Council staff.
COMMENT
The following documents are attached to this report for the reference of the Audit and Risk Management Committee:
Play Equipment Site Listing
This provides the locations of all playgrounds that were audited by Recreation Safety Australia in May 2008.
Play Equipment Overview
This provides an overview of the issues found during the external audit. A more detailed list of issues for each of the playgrounds was provided by the auditor. These have been reviewed by Asset Services and, where appropriate, remedial action taken.
Specific comments are provided here in relation to some of the issues identified in the overview.
- Drinking Facilities – the provision of drinking facilities was considered as part of the Public Open Space Strategy. It was identified that these would be provided to major POS facilities including Ashfield and Jubilee Reserves. Drinking fountains will be installed when these facilities are upgraded and pending the allocation of funding by Council.
- Grass/Weed Intrusion – this has been addressed through the appointment of a contractor to regularly sift and clean san softfall pits around our play equipment. Each area is sifted and cleaned at least three times per year.
- Safety Signs – MAS has had advice from the Town’s insurer (LGIS) that Council does not have a statutory obligation to comply with this standard. The standard was developed in 1997 and is considered outdated. More people have access to mobile phone technology, conversely Telstra is reducing the number of public phones. Added to this is the close proximity of all of our playgrounds to residential housing, in an extreme emergency users would no doubt be provided with assistance from these close by residents. The issue of faulty equipment is addressed through the a process of formal and informal inspection programs that has our playgrounds undergo some form or scrutiny from Council staff almost weekly.
Play Equipment Replacement Schedule
This provides recommendations for the scheduled replacement of play equipment over a period of 12 years. These recommendations will be considered by Leisure and Asset Services when developing programs for the replacement of play equipment in accordance with the POS Strategy and the Play Spaces Implementation Plan.
OFFICER RECOMMENDATION – ITEM 8.2
That the Audit & Risk Management Committee receives the information and the attachments contained in the report to the November 2008 Audit and Risk Management Agenda relating to the external audit of the Town’s playgrounds and play equipment.
9.0 MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN
10.0 ANNOUNCEMENTS OF NOTICES OF MOTION FOR THE NEXT MEETING
11.0 CONFIDENTIAL BUSINESS
12.0 CLOSURE
The next meeting is to be held on Wednesday, 11 February 2009, commencing at 12.30pm.
