NOTICE OF MEETING Notice is hereby given that a meeting of the Governance and Finance Committee of the Devonport City Council will be held in the Council Chambers, on Monday 15 September 2014, commencing at 6:00pm. The meeting will be open to the public at 6:00pm.
QUALIFIED PERSONS In accordance with Section 65 of the Local Government Act 1993, I confirm that the reports in this agenda contain advice, information and recommendations given by a person who has the qualifications or experience necessary to give such advice, information or recommendation.
Paul West GENERAL MANAGER 10 September 2014
AGENDA FOR THE GOVERNANCE AND FINANCE COMMITTEE MEETING OF DEVONPORT CITY COUNCIL HELD ON MONDAY 15 SEPTEMBER 2014 AT THE COUNCIL CHAMBERS AT 6:00PM Item
Page No.
1.0
APOLOGIES
2.0
DECLARATIONS OF INTEREST
3.0
PROCEDURAL
3.1
PUBLIC QUESTION TIME .................................................................................................... 6
3.1.1
Responses to Questions raised at prior meetings ...................................................................... 7
3.1.2
Questions on notice from the public ........................................................................................... 7
3.1.3
Questions without notice from the public ................................................................................... 7
3.2
QUESTIONS ON NOTICE FROM ALDERMEN ............................................................................ 7
3.3
NOTICE OF MOTIONS ....................................................................................................... 7
4.0
GOVERNANCE AND FINANCE REPORTS ......................................................... 5
4.1
Elected Members' Expenditure Report - July/August 2014 (D338871) ................................... 8
4.2
Annual Financial Report for year ended 30 June 2014 (D339495) ....................................... 11
4.3
Risk Management Framework (D339592) ................................................................................. 80
4.4
Local Government Association of Tasmania - General Meeting - 24 September 2014 (D339627) ............................................................................................................................. 108
4.5
Finance Report for August 2014 (D339976) ............................................................................. 133
4.6
Governance and Finance Report (D336517)......................................................................... 141
5.0
CLOSED SESSION - CONFIDENTIAL MATTERS .............................................. 155
PAGE 5 Report to Governance and Finance Committee meeting on 15 September 2014
Agenda of a meeting of the Devonport City Council‟s Governance and Finance Committee to be held at the Council Chambers, Fenton Way, Devonport on Monday, 15 September 2014 commencing at 6.00pm. PRESENT Present Chair
Ald J T Keay Ald S L Martin Ald G B Kent Ald L M Perry Ald A L Rockliff Ald W P Wilson
√
IN ATTENDANCE
1.0 APOLOGIES The following apology was received for the meeting. Ald Kent
Apology
Leave of Absence
2.0 DECLARATIONS OF INTEREST
ITEM 3.0
PAGE 6 Report to Governance and Finance Committee meeting on 15 September 2014
3.0 PROCEDURAL 3.1 PUBLIC QUESTION TIME
Members of the public are invited to ask questions in accordance with the following resolution of Council (Min Ref 5824): 1.
Public participation shall take place at Council meetings in accordance with Regulation 31 of the Local Government (meeting Procedures) Regulations 2005.
2.
Public participation will be the first agenda item following the formal motions regarding Leave of Absence, Apologies, Minutes and Declarations of Interest.
3.
A maximum period of time of 30 minutes in total will be allowed for public participation.
4.
A maximum period of time of 3 minutes will be allowed for each individual.
5.
A member of the public may give written notice to the General Manager 7 days before an ordinary meeting of Council of a question to be asked at that meeting.
6.
A member of the public will be entitled to ask questions relating to the activities of Council, giving an explanation that is necessary to give background to the question and ask supplementary or follow up questions relating to that specific matter that may come to light as a result of the answer.
7.
Questions do not have to be lodged prior to the meeting, whether verbal or in writing. If a verbal response cannot be given or if specifically a written response is required, the question must be reduced to writing and be submitted to the Chairperson prior to the end of the public section of the meeting.
8.
A question by any member of the public and an answer to that question are not to be debated.
9.
The Chairperson may a. Address questions on notice submitted by members of the public; b. Refuse to accept a question.
10.
If the Chairperson refuses to accept a question, the Chairperson is to give reason for doing so.
11.
Verbal questions and the fact that a verbal response was supplied will be recorded in the minutes and where a written question is submitted the written question will be included in the minutes as well as any written answer or summary of that answer to that question.
12.
Council will continue its current practice of receiving deputations from organisations and individuals who wish to make submissions to Council at informal workshop sessions held between Council meetings. The date and purpose of any workshop sessions will be listed in the next agenda. Where necessary, reports of those deputations will be included in future agendas for Council to make a decision. ITEM 3.0
PAGE 7 Report to Governance and Finance Committee meeting on 15 September 2014
3.1.1 Responses to Questions raised at prior meetings Nil 3.1.2 Questions on notice from the public At the time of compilation of the agenda no questions on notice from the public were received. 3.1.3 Questions without notice from the public
3.2 QUESTIONS ON NOTICE FROM ALDERMEN
At the time of compilation of the agenda no questions on notice from Aldermen were received.
3.3 NOTICE OF MOTIONS At the time of compilation of the agenda no notices of motion were received.
ITEM 3.0
PAGE 8 Report to Governance and Finance Committee meeting on 15 September 2014
4.0
GOVERNANCE AND FINANCE REPORTS
4.1
ELECTED MEMBERS' EXPENDITURE REPORT - JULY/AUGUST 2014 File: 22947 D338871
RELEVANCE TO COUNCIL’S PLANS & POLICIES Council‟s Strategic Plan 2009-2030: Strategy 5.3.2
Provide appropriate support to elected members to enable them to discharge their functions
SUMMARY
To detail expenditure of both the Mayor and Aldermen.
BACKGROUND
This report is in response to a Council resolution (Min 49/12 refers) “That Council be provided with a specific monthly report in relation to expenditure incurred, in excess of statutory allowances, for both the Mayor and Aldermen.”
STATUTORY REQUIREMENTS
Under the Local Government Act, 1993 Council is required to publish details of the total allowances and expenses paid to the Mayor, Deputy Mayor and Aldermen in its Annual Report, however there is no obligation to do so on a monthly basis.
DISCUSSION Expenditure processed for the period July/August is detailed below: Mayor Steve Martin $ 103.01 $ 104.55 $ 494.01 $ 33.64 $ 22.73 $ 13.82 $ 94.55 $ 66.36
Mobile telephone expenses Accommodation – Launceston Accommodation – LGAT Conference, Hobart Meal expenses – meeting with Jacqui Lambie DCCI Breakfast Meal expenses – meeting in Hobart Meal expenses – LGAT Conference Meal expenses – meeting with Jacqui Lambie
Aldermen $ 704.53
iPad expenses
Alderman Hollister $ 352.58 Accommodation – LGAT Conference, Hobart Alderman Goodwin $ 289.09 Accommodation – LGAT Conference, Hobart The attached table sets out the cumulative expenditure for the current financial year (July and August) to date. Due to the timing of Credit Card statements and invoices, expenditure will be reported as and when the account is paid. Items in this report may relate to transactions that occurred in previous months.
ITEM 4.1
PAGE 9 Report to Governance and Finance Committee meeting on 15 September 2014
COMMUNITY ENGAGEMENT
There was no community engagement as a result of this report.
FINANCIAL IMPLICATIONS
Mayoral and Aldermen expenses are costed to the general ledger account for Aldermen Support.
RISK IMPLICATIONS It is believed there are no risks associated with this report.
CONCLUSION Expenses are reported on a monthly basis in accordance with Councilâ€&#x;s direction.
ATTACHMENTS 1.
Aldermen's Expenditure - July/August 2014
RECOMMENDATION That it be recommended to Council that the report advising of Mayoral and Aldermanic expenditure for July and August 2014 be received and noted.
Author: Position:
Karen Hampton Governance Coordinator
Endorsed By: Position:
ITEM 4.1
Paul West General Manager
PAGE 10 Aldermen's Expenditure - July/August 2014
ATTACHMENT [1]
Aldermen Expenses Period - July to August 2014
Mileage R'ments
Alderman Mayor Martin
9,555
3,823
Deputy Mayor Kent
2,988
I'Pads
2,016
Conference/ Professional Development Attendance
Accomm & Meal expenses
57
Meeting expenses
706
Phone
122
Other
103
Total $
16,382
3,823
57
$
6,868
Ald Cole
3,823
57
$
3,880
Ald Goodwin
3,823
57
289
$
4,169
Ald Hollister
3,823
57
352
$
4,232
Ald Jarman
3,823
57
$
3,880
Ald Keay
3,823
57
$
3,880
Ald Laycock
3,823
57
$
3,880
Ald Perry
3,823
57
$
3,880
Ald Rockliff
3,823
57
$
3,880
Ald Squibb
3,823
57
$
3,880
Ald Wilson
3,823
72
$
3,895
$
-
$
62,706
Other Non Attributable TOTAL - YEAR TO DATE $ Budget BALANCE UNSPENT % Spent Year to Date
$
9,555
$
2,988
$
45,876
$ 2,016
$
699
50,700
15,850
199,486
12,100
5,000
41,145
$ 12,862
$ 153,610
$ 10,084
$ 4,301
19%
19%
23%
17%
$
-
$
14,000 $
14%
14,000 0%
1,347 8,500
$
7,153 16%
Note: Council provides a motor vehicle for use by the Mayor - the cost of this vehicle is shown in the Mileage column.
ITEM 4.1
$
122
$
1,000 $
878 12%
103
$
700 $
597 15%
-
$
-
307,336 $
244,630 20%
PAGE 11 Report to Governance and Finance Committee meeting on 15 September 2014
4.2
ANNUAL FINANCIAL REPORT FOR YEAR ENDED 30 JUNE 2014 File: 27901 D339495
RELEVANCE TO COUNCIL’S PLANS & POLICIES Council‟s Strategic Plan 2009-2030: Strategy 5.5.1
Provide financial services to support Council's operations and meet reporting and accountability requirements
SUMMARY
This report is provided to present to Council the Annual Financial Report for the year ended 30 June 2014. The report also details information relating to the carried forward capital works funding as at 1 July 2014.
BACKGROUND The Annual Financial Statements have been prepared in accordance with the requirements of the Local Government Act 1993, the Audit Act 2008 and relevant Accounting Standards. The Annual Financial Statements are now publicly available on Council‟s website or in „hard copy‟ from the Customer Services counter.
STATUTORY REQUIREMENTS Section 72 of the Local Government Act 1993 requires Council to prepare an Annual Report containing the Annual Financial Statements and other specified contents. The Annual Report must be considered at the Annual General Meeting, which is to be held no later than 15 December. The Annual Financial Statements are required to be prepared in accordance with applicable Accounting Standards; Section 84 of the Local Government Act 1993 and the Audit Act 2008. The Audit Act 2008 requires that the financial statements are to be prepared within 45 days of the end of the financial year and forwarded to the Auditor-General as soon as practicable. The Tasmanian Audit Office then has a further 45 days to complete the audit of the Annual Financial Statements. Section 84 (4) of the Local Government Act 1993 requires that „the general manager is to ensure that the certified financial statements are tabled at a meeting of the council as soon as practicable‟. This is the first opportunity for the certified financial statement to be provided formally to Council.
DISCUSSION
The Annual Financial Statements, including notes to the accounts are provided as an Appendix to this report. The Annual Financial Statements meets the requirements of the Local Government Act 1993 and Australian Accounting Standards and have been duly audited by the Tasmanian Audit Office. An unqualified audit opinion was issued by the Deputy Auditor General on 28 August 2014. The Annual Financial Report comprises four financial statements, together with the required „notes to the accounts‟. The „notes‟ provide additional detail and explanation to the actual financial statements. The Annual Financial Report fully complies with the ITEM 4.2
PAGE 12 Report to Governance and Finance Committee meeting on 15 September 2014
accounting standards and Council‟s statutory obligations. The four financial statements are: 1.
Statement of Comprehensive Income
2.
Statement of Financial Position
3.
Statement of Changes in Equity
4.
Statement of Cash Flows
In accordance with the Audit Panel Charter, prior to undergoing the final audit process the draft financial statements were referred to the Panel for review. A number of clarifications were provided and minor adjustments were made as a result of the Panel‟s review. Below is a summary of the results of Council‟s financial activities during the year. This information is provided to explain in words the actual results and is also reproduced in the Council‟s Annual Report. Financial Summary
Actual 2013/14 $000
Budget 2013/14 $000
Total income
35,796
34,971
Total expenditure
35,782
35,942
14
(971)
Grants
5,414
4,784
Contributions
1,815
250
(4,076)
-
393
-
Total capital items
3,546
5,034
Surplus/(deficit)
3,560
4,063
Ordinary activities
Surplus/(deficit) from ordinary activities Capital items
Gain/(Loss) on Disposal of Assets Share of profit of associates
The surplus from ordinary operations of $13,230 compares to a budgeted deficit of $970,350. The favourable variance stems from increased rates and service charges and investment revenue, as well as savings in employee benefits and depreciation, offsetting increased expenditure on materials and services, and reduced internal recoveries. The positive result includes the impacts from the first six months of operations at the newly constructed Aquatic Centre and first full year of operations for the Bass Strait Maritime Centre and the Julie Burgess historic vessel. The result also includes rental revenue from properties purchased as part of the LIVING CITY Project, as well as all costs of owning these properties, including interest on the borrowings.
ITEM 4.2
PAGE 13 Report to Governance and Finance Committee meeting on 15 September 2014
Operating Income
Actual 2013/14 $000
Budget 2013/14 $000
Variance $000
26,084
25,838
246
Fees and User Charges
5,120
5,314
(194)
Grants - Operating
1,262
1,170
92
34
57
(23)
2,388
2,041
347
908
551
357
35,796
34,971
825
Grants
5,414
4,784
630
Contributions
1,815
250
1,565
393
-
393
Gain/ (Loss) on disposal of assets
(4,076)
-
(4,076)
Total Income
39,342
40,005
663
Rates and Service Charges
Contributions - Operating Investment Revenue Other Revenue Total Operating Income Capital Income
Share of profits of associates
Total operating revenue was $0.8M or 2.33% higher than budget. Rates and Service charges were 0.95% higher than budget due to better than expected revenue from supplementary rate notices for both commercial and residential developments. Reduced revenue from admission charges and sale of goods relating to the Bass Strait Maritime Centre and the Julie Burgess contributed to the 3.6% reduction in fees and charges compared to budget. Additional heavy vehicle grants of $0.06M and higher than expected financial assistance grants contributed to the 7.9% increase in operating grant income compared to budget. Interest and dividend income was 17% higher than budget due in part to higher cash balances and interest revenue than anticipated. Council also received $0.4M as a share of profits from its investment in Dulverton Waste Management Joint Authority. Other revenue includes recovery of utility costs from tenants of Council owned properties, recovery of outstanding amounts referred to collection agencies, and insurance claim refunds. Capital grants were 13% higher than expected and included $3.9M in relation to the new Aquatic Centre; $0.8M for Black Spot road funding; and $0.1M in relation to the community energy efficiency program. Capital contributions included assets donated to Council as a result of the development of the Homemakerâ€&#x;s Centre at Stony Rise, and residential subdivisions in the municipal area. The loss on disposal of assets includes assets donated to the State Government, including the newly constructed roundabout at Tugrah Road and traffic lights. The amount also includes $2.0M in relation to the write down of buildings on Council land but not owned by ITEM 4.2
PAGE 14 Report to Governance and Finance Committee meeting on 15 September 2014
Council. As Council does not have effective control or ownership over these buildings, they were removed from Councilâ€&#x;s Assets Register. The total also includes $1.0M in relation to the demolition and write down of the former Police station building in Oldaker Street. Council demolished this building as part of the LIVING CITY Master Plan. The chart below depicts Councilâ€&#x;s operating income by source for the 2014 financial year.
Operating Income - 2014 Grants Operating 3% Fees and User Charges 16%
Investment Other Revenue Revenue 3% 7%
Rates and Service Charges 71% Operating Expenses
Actual 2013/14 $000
Budget 2013/14 $000
Variance $000
Employee Benefits
12,035
12,682
(647)
Materials and Services
10,695
10,556
139
Depreciation
8,910
9,028
(118)
Financial Costs
1,104
1,103
1
Levies & Taxes
2,835
2,819
16
Other Expenses
1,166
1,000
166
Internal Charges and Recoveries
(963)
(1,246)
283
35,782
35,942
(160)
Total Expenditure
A reduction in the number of full time equivalents (FTE) from a budget of 167 to 159, resulted in a saving of $0.6M or 5% in employee benefits. Materials and services were 1.3% higher than budget. This variance included higher than expected contractor payments for the operation of the Aquatic Centre. Depreciation expense was 1.3% lower than budget partly due to lower capital expenditure as compared to the budget. Finance costs include all interest on borrowings in relation to the LIVING CITY Project and the Aquatic Centre. Levies and taxes includes all relevant land tax and rates on Council owned assets.
ITEM 4.2
PAGE 15 Report to Governance and Finance Committee meeting on 15 September 2014
Other expenses includes the Mayor and Aldermen expenses, rates remissions granted, community grants and donations provided throughout the year as well as the cost of debt referred to collection agencies. The 16% increase in other expenses when compared to the budget mainly relates to the higher level of debt referred to collection agencies than anticipated. Council has been very successful in collecting this outstanding debt and the additional revenue is shown in “Other Revenue”. Internal charges relate to the level of Council resources allocated to the annual capital program. The resources were 22% lower than the budget partly as a result of the reduced number of employees. The chart below depicts Council‟s expenditure by type for the 2014 financial year.
Operating Expenditure - 2014 Employee Benefits 33%
Other Expenses 3% Financial Costs 3%
Depreciation 24%
Materials and Services 37%
Financial Position
Total Assets Total Liabilities Net Community Equity
2014
2013
$000
$000
477,681
473,483
25,438
25,581
452,243
447,902
10,312
14,126
375,714
363,920
20,020
19,185
Key Assets and Liabilities (included in Financial Position) Cash Assets Community Infrastructure and assets Council Borrowing
Cash assets include operating accounts, trust deposits and investments held by Council at 30 June 2014. Cash balances reduced by $3.8M during the year as Council continued to invest heavily in capital projects. Community infrastructure and assets increased by $11.8M which was the net movement of spending on new and the renewal of existing assets, disposal of assets, depreciation ITEM 4.2
PAGE 16 Report to Governance and Finance Committee meeting on 15 September 2014
charge and the revaluation of storm water assets. Included in new assets was the Aquatic Centre which was completed during the year and the purchase of property at 20-26 Best Street, Devonport, as part of LIVING CITY. Council borrowings increased by $0.8M being the movement of loan repayments and additional new borrowings of $2.0M in relation to the purchase of property.
COMMUNITY ENGAGEMENT
The preparation of the Annual Report and the conduct of the Annual General Meeting underpins the community engagement in relation to this matter.
FINANCIAL IMPLICATIONS Whilst the Annual Financial Statements deals with the finances of Council, there are no direct financial consequences relating to the consideration and implementation of this covering report. Council has previously adopted a Long Term Financial Plan (LTFP). The LTFP is now under review and will be updated to include the results for the year ended 30 June 2014. The following table compares the projections included in the LTFP for the year ended 30 June 2014, as well as the forecasts included in the Annual Plan and Budget Estimates adopted by Council in June 2014. Actual $'000
Statement of Comprehensive Income
LTFP $'000
Forecast $'000
Operating Revenue Rates and service charges
26,084
25,838
26,023
Fees and charges
5,120
6,223
5,986
Government grants
1,262
1,170
1,270
34
57
83
2,388
2,041
2,181
908
551
811
35,796
35,880
36,354
Employee costs
12,035
12,682
12,175
Materials and services
Contributions Investment revenue Other income Total Operating Revenues Operating Expenses
12,567
11,465
10,803
Depreciation
8,910
9,028
8,918
Finance costs
1,104
1,103
1,103
Levies and taxes
-
2,819
2,830
Other expenses
1,166
1,000
1,159
Internal charges
-
(1,247)
-
Total Operating Expenses
35,782
Net Operating Surplus (Deficit)
14
36,850 (970)
36,988 (634)
Capital Items Capital Grants
5,414
4,784
Contributions
1,815
250
Net Gain/(Loss) on disposal or revaluation of assets Change in value of investments
(4,076)
393
NET SURPLUS (DEFICIT)
3,560
ITEM 4.2
4,064
7,028 (4,747) 1,647
PAGE 17 Report to Governance and Finance Committee meeting on 15 September 2014
Actual $'000
Statement of Cash Flows
LTFP $'000
Forecast $'000
Cash Flows from Operating Activities Rates and user charges
31,126
31,826
31,839
Government grants
1,262
1,170
1,270
Refund of GST tax credits
2,267
1,000
1,650
Investment revenue from TasWater
1,731
1,700
1,700
486
341
481
Interest Other receipts
862
608
829
Total Receipts
37,734
36,645
37,769
27,225
25,406
26,142
Payments Employee and supplier costs Finance costs
1,028
1,103
1,103
Other expenses
933
1,000
1,159
Total Payments
29,186
27,509
28,404
Net Cash provided by (or used in) Operating Activities
8,548
9,136
9,365
Cash Flows from Investing Activities Receipts Proceeds from sale of non current assets
308
200
200
5,414
4,784
5,228
Other investments
193
0
Repayment of loans from community organisations
117
0
Capital grants
Payments Loans to community organisations
(200)
Non current assets
(19,029)
(17,127)
(18,788)
(13,197)
(12,143)
(13,360)
2,000
1,000
2,000
(1,165)
(1,169)
(1,165)
835
(169)
835
Net Increase/(Decrease) in cash held
(3,814)
(3,176)
(3,160)
Cash at the Beginning of the Year
14,126
12,630
14,126
CLOSING CASH
10,312
9,454
10,966
Net Cash provided by (or used in) Investing Activities Cash Flows from Financing Activities Receipts New loans Payments Loan principal repayments Net Cash provided (or used in) Financing Activities
ITEM 4.2
PAGE 18 Report to Governance and Finance Committee meeting on 15 September 2014
A snapshot of the Councilâ€&#x;s cash situation at balance date, taking into account current commitments is as follows: $ ‘000 Cash Balance 1 July 2014
10,312
Less: -
Trust Funds & Deposits
252
-
Capital Works Carried Forward
2,557
-
Trade Creditors and Accruals
2,556
-
Current Employee Entitlements
2,112
Unrestricted Cash 30 June 2014
$2,835
At 30 June 2014 a total of $13,309,776 had been expended on capital works. A reconciliation of the works completed compared to the original budget is as follows: Category Open Space & Recreation Buildings Stormwater Transport Plant & Fleet Other Equipment Proceeds on disposal of asset Total
Budget 9,144,347 2,210,731 687,035 3,938,703 791,000 357,750
Actual 7,829,078 997,888 538,336 2,982,404 743,174 218,896
$ 17,129,566
$ 13,309,776
Carried F/wd 1,211,661 1,132,023 92,104 61,578 60,000
Surplus 103,608 80,820 56,595 894,721 47,826 78,854 (221,211)
$
2,557,366
$
1,041,213
The following table details the carried forward capital works now identified as a result of the finalisation of the year end reports. Project Open Space & Recreation Mersey Vale Master Plan Works Mersey Vale - modern burial system - stage 1 TasWater - meter consolidations
Budget 2014/15
Revised Budget 2014/15
126,500 500,000 30,000
144,070 499,780 57,811
346,000 10,000
340,774 10,000
Stormwater Kelcey Tier Road drain renewal (Ellice Hill to Sherston Rd)
92,000
92,104
Transport Road Traffic Devices Macfie Street
20,000
21,578
800,000
791,249
1,924,500
1,957,366
Facilities Community Energy Efficiency Program (CEEP) Public Art
Living City CARRIED FORWARD CAPITAL WORKS Add Mersey Vale - modern burial system - stage 2 (due 2015) - #1 Kelcey Tier Road - safety improvements (stage 2) - #2 Information Technology - #3 ADJUSTED TOTAL CARRIED FORWARD CAPITAL WORKS
ITEM 4.2
500,000 40,000 60,000 $
1,924,500
$
2,557,366
PAGE 19 Report to Governance and Finance Committee meeting on 15 September 2014
Note: 1.
Mersey Vale modern burial system works to be undertaken spanning two financial years. The total allocation in 2013/14 financial year was $1M for land purchase. Expected that the proposed modern burial system will be achieved for a similar amount - $500K to be spent 2014/15 with the additional $500K in 2015/16.
2.
As previously advised to Council there was a need to redesign some aspects of the Kelcey Tier Road project. The $40K allows for the likely additional cost associated with the revised design.
3.
IT carried forward for cemetery booking system, introduction of online induction software and additional hardware and software requirements not acquired prior to 30 June.
RISK IMPLICATIONS
There are no specific identified risks in relation to the content of this report. In undertaking the audit the following audit findings were identified and communicated to Council: “During the course of the audit, the Office became aware of enquiries by the Ombudsman into a complaint he had received over the tender process involving Devonport Aquatic Centre. Our review of the outcomes and Council‟s response concluded that there were flawed governance processes. As annual payments to the successful tenderer are immaterial within the context of Council‟s total expenditure, we concluded there was no impact on our audit opinion. However, it is clear that a number of procedural weaknesses were identified. In the General Manager‟s letter to the Ombudsman of 14 April 2014, an internal review identified a number of actions to address these weaknesses. It is our intention to follow up implementation of these actions during the course of the 2014-15 audit. It is also our intention to make reference to this matter in Council‟s Chapter in our report to Parliament due to be tabled in mid-November 2014.” As previously indicated to Council there have been significant changes implemented in relation to how tenders and contracts are administered. Part of this review has included the preparation of a new Code for Tenders and a Procurement Policy. Both of these documents are nearing completion and will be formally provided to Council in the near future.
CONCLUSION
The Annual Financial Report for the year ended 30 June 2014 provides detailed information as to Council‟s financial performance and position as at balance date. The Annual Report has been prepared and will be tabled at the Annual General Meeting to be held at Monday 13 October 2014 commencing at 7:00pm at the East Devonport Recreation Centre.
ATTACHMENTS 1.
Devonport City Council - Independent Auditor's Report - Year Ended 30 June 2014
2.
Audited Financial Statements 2013/14
ITEM 4.2
PAGE 20 Report to Governance and Finance Committee meeting on 15 September 2014
RECOMMENDATION That it be recommended to Council that the report of the General Manager relating to the Annual Financial Report for the year ended 30 June 2014 be received and that Council: (a)
receive the Annual Financial Report including the complete Notes to the Accounts will be included as an Appendix in the 2014 Annual Report; and
(b)
note the Annual General Meeting will be convened at the East Devonport Recreation Centre on Monday 13 October 2014 commencing at 7:00 pm.
(c)
adjust the carried forward capital works projects budget as listed in this report to the value of $2,557,366.
Author: Position:
Paul West General Manager
ITEM 4.2
PAGE 21 Devonport City Council - Independent Auditor's Report - Year Ended 30 June 2014
ITEM 4.2
ATTACHMENT [1]
PAGE 22 Devonport City Council - Independent Auditor's Report - Year Ended 30 June 2014
ITEM 4.2
ATTACHMENT [1]
PAGE 23 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 24 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 25 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 26 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 27 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 28 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
PAGE 45 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 46 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 47 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 48 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 49 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 50 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
PAGE 52 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
PAGE 54 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 55 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 56 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 57 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 58 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 59 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 60 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 61 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 62 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 63 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 64 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 65 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
PAGE 73 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
PAGE 74 Audited Financial Statements 2013/14
ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
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ATTACHMENT [2]
ITEM 4.2
PAGE 80 Report to Governance and Finance Committee meeting on 15 September 2014
4.3
RISK MANAGEMENT FRAMEWORK File: 26920 D339592
RELEVANCE TO COUNCIL’S PLANS & POLICIES Council‟s Strategic Plan 2009-2030: Strategy 5.6.2
Develop, implement, maintain and comply with Council's Risk Management Framework
SUMMARY
This report is provided to assist Council in considering the adoption of a Risk Management Framework.
BACKGROUND The Risk Management Framework outlines how Council will manage risks effectively and efficiently. It illustrates how risk management is embedded throughout organisational systems to ensure it is integrated at all levels and work contexts. The Framework was first adopted in 2012. At the time, the document complemented a Risk Management Policy and Risk Management Strategy amongst a suite of risk management documentation. This version of the document incorporates all of these three documents into one condensed reference point.
STATUTORY REQUIREMENTS There are number of legislative requirements to which Council must comply, including the Local Government Act 1993. Ensuring compliance with Acts and Regulations is part of the risk management framework of Council. AS/NZS ISO31000:2009 – Risk Management Principles and Guidelines provides further instruction on risk management responsibilities of the organisation.
DISCUSSION The Risk Management Framework was initially developed by an external resource and tailored to meet the requirements of Council. This version combines the existing framework document with the Risk Management Policy and Risk Management Strategy. Council‟s insurers, who previously audited the risk management documentation, have indicated that they are comfortable with the merging of the above documents and have indicated that this is consistent with a growing number of Councils.
COMMUNITY ENGAGEMENT No community consultation has been undertaken as part of this report. Once adopted the Risk Management Framework will be available to the public on Council‟s website.
FINANCIAL IMPLICATIONS There is significant financial risk to Council arising from poor risk management practices and inappropriate or insufficient insurance coverage.
RISK IMPLICATIONS
Incidents, significant insurance claims and poor risk management practices may have a detrimental effect on a Council‟s reputation.
ITEM 4.3
PAGE 81 Report to Governance and Finance Committee meeting on 15 September 2014
CONCLUSION
It is recommended that Council adopt the attached Risk Management Framework.
ATTACHMENTS 1.
Framework - DCC Risk Management Framework.docx
RECOMMENDATION That it be recommended to Council that the report of the Executive Manager Corporate and Business Services be received and that Council adopt the Risk Management Framework with immediate effect.
Author: Position:
Shane Crawford Executive Manager Corporate and Business Services
Endorsed By: Position:
ITEM 4.3
Paul West General Manager
PAGE 82 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 83 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 84 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 85 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 86 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 87 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 88 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
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ITEM 4.3
ATTACHMENT [1]
PAGE 90 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 91 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 92 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 93 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 94 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 95 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 96 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
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ITEM 4.3
ATTACHMENT [1]
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ITEM 4.3
ATTACHMENT [1]
PAGE 99 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 100 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 101 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 102 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 103 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 104 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 105 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 106 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 107 Framework - DCC Risk Management Framework.docx
ITEM 4.3
ATTACHMENT [1]
PAGE 108 Report to Governance and Finance Committee meeting on 15 September 2014
4.4
LOCAL GOVERNMENT ASSOCIATION OF TASMANIA - GENERAL MEETING - 24 SEPTEMBER 2014 File: 26998 D339627
RELEVANCE TO COUNCIL’S PLANS & POLICIES Council‟s Strategic Plan 2009-2030: Strategy 5.1.1
Promote open communication and cooperation with local and state governments in regional initiatives
PURPOSE
This report has been prepared to inform Council of items listed for consideration on the agenda for the upcoming Local Government Association of Tasmania (LGAT) General Meeting to be held on Wednesday 24 September 2014 at Gnomon Pavilion, Wharf Precinct, Ulverstone.
BACKGROUND A full copy of the agenda for the meeting is attached for the information of Aldermen. The attachments which relate to the agenda can been found on the LGAT website by following the link: http://www.lgat.tas.gov.au/webdata/resources/files/Agenda%20September%202014.pdf
COMMENTARY The agenda items (apart from normal procedural matters) listed for the meeting are classified under the broad heading of:
Items for Decision
Items for Noting
Items for Discussion
2.
Items for Decision 2.1
Statewide Local Government Performance Index (Clarence City Council) That the Association establish a statewide Local Government Performance Index detailing Tasmanian benchmarking and performance ranking for Councils.
2.2
Disposal of State Government Owned Properties (Devonport City Council) That LGAT formally request the State Government to review and amend the Government's procedures for the disposal of State owned public land, including property acquired by default, by introducing prior sale conditions that: (a)
Requires the Government to have effectively dealt with any environmental rehabilitation and/or the removal of hazardous materials prior to offering the property for sale;
(b)
As part of the sale process, require prospective purchasers to provide details of the proposed future use of the site and include as a condition of sale that the property is to be developed within a specified timeframe; and
ITEM 4.4
PAGE 109 Report to Governance and Finance Committee meeting on 15 September 2014
(c)
3.
4.
Make available to the public the results of any feasibility study accepted as part of a sale contract for re development and future use of the site or premises consistent with the relevant planning scheme and zoning.
2.3
Super Trawlers – (Break O‟Day and Northern Midlands Councils) That LGAT supports the position of all state parties in their election commitments to lobby the major federal political parties in opposing super trawlers operating in Australian waters, and support immediate federal legislation to permanently ban super trawlers in Australia‟s Exclusive Economic Zone (EEZ) but not to affect current fishing operators.
2.4
Audit Panels (Meander Valley Council) That the LGAT write to the Minister for Local Government requesting the removal of the mandatory requirement for councils to have an audit panel, unless there is an express reasoning by the Auditor General and supported by the Minister for Local Government in relation to an identified and ongoing issue with a Council.
Items for Noting 3.1
LGAT Professional Development Program
3.2
Policy Update
3.3
Bushfire Prone Areas
3.4
Local Government Elections
3.5
Election Round-Up
3.6
2014 & 2015 Annual Conference
3.7
Planning Reform Update
3.8
Role of Local Government Project
Items for Discussion 4.1
Industrial Hemp Industry and Medicinal Cannabis in Tasmania
Background information on all of the items listed can be found in the attached agenda papers. LGAT has a communication protocol which it uses to disseminate information and decisions as a result of General Meetings of the Association.
FINANCIAL IMPLICATIONS Operating Budget Council contributes to LGAT through payment of subscriptions. Any decisions reached at General Meetings may have an impact on Council‟s finances.
RISK IMPLICATIONS There are no risks which have been identified in relation to the contents of this report. Any risk is dependent on the outcome of decisions which are reached at the General Meeting.
CONCLUSION
The LGAT General Meeting agenda items have been listed for the information of Aldermen and to allow comment and/or direction to be provided to Mayor Martin, Council‟s voting delegate, in relation to any matter. ITEM 4.4
PAGE 110 Report to Governance and Finance Committee meeting on 15 September 2014
ATTACHMENTS 1.
Agenda - General Meeting - LGAT - 24 September 2014
RECOMMENDATION That it be recommended to Council that the agenda for the Local Government Association of Tasmania General Meeting on 24 September 2014 be received and noted.
Author: Position:
Paul West General Manager
ITEM 4.4
PAGE 111 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 112 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 113 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 114 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 115 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 116 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 117 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 118 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 119 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 120 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 121 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 122 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 123 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 124 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 125 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 126 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 127 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 128 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 129 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 130 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 131 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 132 Agenda - General Meeting - LGAT - 24 September 2014
ITEM 4.4
ATTACHMENT [1]
PAGE 133 Report to Governance and Finance Committee meeting on 15 September 2014
4.5
FINANCE REPORT FOR AUGUST 2014 File: 29468 D339976
RELEVANT PORTFOLIO
Technical and Finance RELEVANCE TO COUNCIL’S PLANS & POLICIES Council‟s Strategic Plan 2009-2030: Strategy 5.5.1
Provide financial services to support Council's operations and meet reporting and accountability requirements
SUMMARY
To report the details of Council‟s financial position and operational outcomes against budget for the current financial year.
BACKGROUND Monthly financial reports are provided to Council for information.
STATUTORY REQUIREMENTS No statutory requirements that relate directly to this report.
DISCUSSION The attached report provides an overview of Council‟s financial position and year to date operating result as of 31 August 2014. Included in the report are the following: Financial Summary – This report provides an overview of Council‟s Operational and Capital Income and Expenditure, along with details on cash position and Debtors information for the reporting period. Summarised Operating Report – This report provides a summary of operational income and expenditure for the period to date compared to both the YTD Budget and Annual Budget. Financial Charts – These charts provide a visual representation of year to date Income and Expenditure compared to budget and prior year, plus a Capital Expenditure chart which demonstrates the progress of the current year capital plan against budget and prior year capital plan information for reference. Balance Sheet Report – This report provides a snapshot of Council‟s financial position at the end of the reporting period. Capital Expenditure Report – This report provides a list of all approved capital expenditure projects with their allocated budget, YTD expenditure and forecast expenditure including commentary in relation to budget variances, as well as whole of project budget and cost for those projects which span more than one financial year.
COMMUNITY ENGAGEMENT There has been no community engagement undertaken as a result of this report.
ITEM 4.5
PAGE 134 Report to Governance and Finance Committee meeting on 15 September 2014
FINANCIAL IMPLICATIONS
There are no financial implications arising from the presentation of this report. The report is provided for information.
RISK IMPLICATIONS
Financial Inaccurate financial information could lead to poor financial decision making.
CONCLUSION The monthly financial report provides an overview of Council‟s operating result and financial position at the end of the reporting period.
ATTACHMENTS 1.
Finance Report Attachment 1 - Summarised Operating Result - Aug 2014
2.
Finance Report Attachment 2 - Capital Works Report - Aug 2014
RECOMMENDATION That it be recommended to Council that the Finance Report for August 2014 be received and noted.
Author: Position:
Rodney O‟Rourke Financial Accountant
Endorsed By: Position:
ITEM 4.5
Shane Crawford Executive Manager Business
Corporate
&
PAGE 135 Finance Report Attachment 1 - Summarised Operating Result - Aug 2014
ATTACHMENT [1]
FINANCIAL SUMMARY
YTD to 31 August 2014
Operating Summary
YTD Budget
Actual
Revenue Expenditure
27,887,477 6,011,717
28,023,915 5,825,889
Operating Position
21,875,761
22,198,025
Capital Expenditure Summary
Annual Budget
Capital Expenditure
Actual
12,373,832
90,909
Annual Budget
Current Forecast
37,941,272 37,941,273 (1)
37,867,272 37,929,272 (62,000)
Current Forecast 12,373,832
Cash Information 31 August 2014 Operating Account (Reconciled balance) Interest-Earning Deposits
Debtor Information
Rates Debtors Infringement Debtors Sundry Debtors Planning & Health Debtors
31 August 2014
June 2014
Rates Debtors Ageing
17,052,676 117,224 307,584 14,857
209,701 94,785 267,632 4,923
17,492,341
577,042
2014/2015 - Current 2013/2014 - 1 Year 2012/2013 - 2 Years 2011/2012 - 3 Years 2010/2011 - Older
902,137 16,971,016
344,062 9,710,836
17,873,153
10,054,898
31 August 2014
% of Annual Rates
16,644,754 277,325 43,359 10,019 77,220
63.8%
17,052,676
Cash Investment Information Rate ANZ Cash Deposits CBA Cash Deposits
June 2014
3.50% at call 2.40% at call
All cash investments are invested in compliance with Council's Investment Policy.
31 August 2014 11,517,116 5,453,900 16,971,016
Commentary This report provides a high level summary of operational income and expenditure, capital expenditure and the cash and receivables position as at the date of the report. The current forecast is updated on a monthly basis to reflect anticipated changes to revenue, expenditure and net operating position. As at 31 August 2014, the forecast is a $62K deficit for the year. It should be noted that there are difficulties around forecasting at this early stage in the financial year. The forecast adjustments that have been made represent known variations being a reduction in financial assistance grant funding of $74K partly offset by LGAT and CCA membership savings of $12K.
ITEM 4.5
PAGE 136 Finance Report Attachment 1 - Summarised Operating Result - Aug 2014
SUMMARISED OPERATING REPORT YTD Budget
ATTACHMENT [1]
YTD to 31 August 2014 YTD Variance $ %
Actual
Full Budget 2015
INCOME Rates and Service Charges Fees and User Charges Grants - Operating
Note 26,038,149
26,089,389
51,240
0.2%
26,228,167
1,132,575
1,180,594
48,019
4.2%
6,451,709
514,528
504,093
(10,435)
-2.0%
2,198,000
8,750
625
(8,125)
-92.9%
52,500
-
0.0%
1,762,000
Contributions - Operating Dividend Income
-
-
Interest Income
56,007
62,610
6,603
11.8%
336,043
Other Revenue
137,468
186,604
49,136
35.7%
912,853
27,887,477
28,023,915
136,437
0.5%
37,941,272
Employee Benefits
1,936,615
1,886,983
49,632
2.6%
12,110,076
Materials and Services
1,730,069
1,562,048
168,021
9.7%
12,397,543
Depreciation
1,477,547
1,470,635
6,912
0.5%
8,865,282
Financial Costs
164,355
157,972
6,383
3.9%
1,254,522
Levies & Taxes
374,630
374,437
193
0.1%
3,032,588
Other Expenses
435,701
411,604
24,096
5.5%
1,156,936
(107,199)
(37,790)
(69,409)
64.7%
TOTAL INCOME
O P P P P P P
1
EXPENSES
Internal Charges and Recoveries
TOTAL EXPENSES NET OPERATING SURPLUS / (DEFICIT)
(875,676)
6,011,717
5,825,889
185,828
3.1%
37,941,272
21,875,761
22,198,025
322,265
1.5%
0
P O P P P P O
2
3
CAPITAL ITEMS Grants - Capital Contributions - Capital
-
-
-
0.0%
1,911,528
50,000
-
(50,000)
-100.0%
300,000
(114,362)
0.0%
Gain / Loss on Disposal of Assets
-
Change in Value of Investment in Water Corporation
-
TOTAL CAPITAL ITEMS NET SURPLUS / (DEFICIT) Own Source Revenue:
(114,362) -
50,000
(114,362)
21,925,761
22,083,664
98.1%
(164,362)
157,903
(1,590,500)
0.0%
300,000
-328.7%
921,028
0.7%
921,028
98.2%
P P O P
4
94.1%
Indicator: Variance is less than 10% and/or $50000 threshold from budget and requires explanation Variance is greater than 10% and/or $50000 threshold from budget and requires explanation
P O
Note Commentary 1 Rates and service income exceeds budget by $51K and is largely due to a favourable variation in general rates of $70K partly offset by an unfavourable variation in waste management income of $24K. The unfavourable variation in waste management income is expected to reduce as supplementary assessments are processed during the year. 2 Materials and services expenditure is currently $168K favourable due largely to below budget expenditure on contractors and utilities. It is expected that actual expenditure will more closely align with budget as the year progresses. 3 Internal charges and recoveries are behind budget by $69K A slow start for capital projects for the year has had an impact on recoveries. Actual and budget are expected to realign as the year progresses. 4 The $114K loss on disposal os assets relates largely to the disposal of road assets following road redevelopment and road reseal
ITEM 4.5
PAGE 137 Finance Report Attachment 1 - Summarised Operating Result - Aug 2014
FINANCIAL CHARTS
ATTACHMENT [1]
Year to Date to end of 31 August 2014
Income Analysis 30,000,000 25,000,000
$ Income
20,000,000
15,000,000 10,000,000 5,000,000 -
Rates & Utility Charges
Fees & Charges
Grants
2015 YTD
26,089,389
1,180,594
504,093
Bud YTD
26,038,149
1,132,575
514,528
2014 YTD
25,614,167
1,149,006
80,647
Contributions
Other Income
625
Dividends and Other Investment Income 62,610
8,750
56,007
137,468
12,932
77,797
126,913
186,604
Expenditure Analysis 2,500,000
$ Expenditure
2,000,000 1,500,000
1,000,000 500,000 (500,000)
Materials & Services 1,562,048
Depreciation
Finance Costs
Levies & Taxes
2015 YTD
Employee Benefits 1,886,983
374,437
Other Expenses 411,604
Internal Charges (37,790)
1,470,635
157,972
Bud YTD
1,936,615
1,730,069
1,477,547
164,355
2014 YTD
2,265,146
1,495,360
1,438,319
43,394
374,630
435,701
(107,199)
306,758
445,285
(150,634)
Capital Expenditure - $'000 $16,000
Accumulated Expenditure - $'000
$14,000
$12,000 $10,000 $8,000 $6,000 $4,000
$2,000 $0
Start
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
2015 Budget
-
30
91
500
1,000
2,000
3,000
4,000
5,000
7,000
9,000
11,000
12,374
2015 Actual
-
30
91
2014 Actual
-
153
1,557
3,038
4,626
6,161
8,163
9,241
9,956
10,671
11,477
12,039
13,645
ITEM 4.5
PAGE 138 Finance Report Attachment 1 - Summarised Operating Result - Aug 2014
BALANCE SHEET REPORT
ATTACHMENT [1]
As at 31 August 2014 31 Aug 2014
30 Jun 2014
902,137 256,805 16,971,016 17,052,676 117,224 307,584 14,857 70,703 55,492 82,838 35,831,332
344,062 257,305 9,710,836 209,701 94,785 267,632 4,923 74,110 155,863 90,639 159,921 11,369,777
74,084 3,080,774 83,559,680 611,295,601 (237,318,020) 4,110,588 464,802,706
74,084 3,080,774 83,559,680 612,542,402 (236,828,256) 3,881,984 466,310,668
500,634,038
477,680,446
709,729 455,015 270,445 928,272 1,032,589 1,123,372 4,519,422
469,384 2,084,982 252,298 928,272 1,024,449 1,087,507 5,846,891
Loans - Non-Current Long Service Leave - Non-Current
21,304,586 498,293 21,802,879
19,091,876 498,293 19,590,169
Total Liabilities
26,322,301
25,437,061
474,311,738
452,243,385
Current Assets Cash at Bank and On Hand Trust Deposits Cash Investments Receivables - Rates and Utility Charges Receivables - Infringements Receivables - Sundry Receivables - Planning & Health Loans Receivable - Current Accrued Revenue Prepayments Net GST Receivable
Non Current Assets Loans Receivable - Non-Current Dulverton Regional Waste Management Authority TasWater Property, Plant & Equipment Accumulated Depreciation - PP&E Capital Work in Progress
Total Assets Current Liabilities Trade Creditors Accruals Trust Liability Loans - Current Annual Leave Long Service Leave - Current
Non Current Liabilities
Net Assets Equity Asset Revaluation Reserve Asset Revaluation Reserve - Associates Other Reserves Accumulated Surplus Operating Surplus / (Deficit) Capital Surplus / (Deficit)
257,554,262 1,057,826 1,476,874 192,139,112 22,198,025 (114,362)
257,554,262 1,057,826 1,476,874 182,908,247 13,230 9,232,945
Total Equity
474,311,738
452,243,385
Current Ratio:
7.93
1.94
The Current ratio indicates Council's ability to pay its debts as and when they become due. A ratio of one or higher is required for the entity to remain solvent.
ITEM 4.5
PAGE 139 Finance Report Attachment 2 - Capital Works Report - Aug 2014
ATTACHMENT [2]
Devonport City Council Capital Works Income & Expenditure Report 31 August 2014 As at 3/9/2014
Income 2014/15
Expenditure 2014/15
Additional Funds Carried External Funding Total Budget Annual Budget forward (inc. Grants) Available $ $ $ $
Actual $
Balance
Total Commitments Expenditure $ $
Remaining Funds $
Performance Measures Works Start Month
Works % Completion Budget Month Spent
Comments
Summary Open Space & Recreation Facilities Stormwater Transport Living City Plant & Fleet Other Equipment Total Capital Works
776,500 436,400 402,000 4,923,000 3,312,090 365,600 233,742 10,449,332
656,500 356,000 92,000 20,000 800,000 1,924,500
173,500 30,000
126,500
380,528 1,741,000 2,121,528
1,433,000 792,400 494,000 4,943,000 4,112,090 365,600 233,742 12,373,832
16,737 4,206 20,295 49,672 90,909
300,000 30,000
1,585 728
39,000 40,000 55,200
41 274 -
165,000 500,000 75,000 55,000 15,000
741 12,471
30,000 35,000 15,000 78,800 1,433,000
286 389 178 44 16,737
617,400 30,000 10,000 5,000 10,000 45,000 5,000 5,000 15,000 50,000 792,400
50,000
5,847 47,406 74,829 1,865 3,571 133,518
22,584 51,612 95,124 51,537 66,126 286,983
1,410,416 740,788 398,876 4,891,463 4,112,090 365,600 233,742 12,152,975
-
1,585 728
298,415 29,272
Oct 2014 Jan 2015
Jan 2015 Feb 2015
-
41 274 -
38,959 39,726 55,200
TBA Oct 2014 Oct 2014
TBA Nov 2014 Nov 2014
741 5,847 12,471
165,000 499,259 69,153 55,000 2,529
TBA Mar 2015
TBA June 2015
Aug 2014
Sept 2014
286 389 178 44
29,714 34,611 14,822 78,756
TBA Aug 2014 TBA
TBA Sept 2014 TBA
5,847
22,584
1,410,416
601 2,182 230 1,193 4,206
47,406 47,406
48,007 2,182 230 1,193 51,612
569,393 27,818 10,000 5,000 9,770 43,807 5,000 5,000 15,000 50,000 740,788
50,000
12,797
-
12,797
37,203
25,000
25,000
180
-
180
24,820
30,000 30,000 35,000 65,000 35,000 12,000 10,000
30,000 30,000 35,000 65,000 35,000 12,000 10,000 92,000 110,000 494,000
4,713 527 1,689 389 20,295
4,713 527 76,518 389 95,124
30,000 30,000 35,000 65,000 35,000 7,287 9,473 15,482 109,611 398,876
Open Space & Recreation CP0086 CP0094
Mersey Vale Master Plan Works Cycling Network Strategy Action Plan Year 2 - actions
CP0095 CP0096 CP0097
Girdlestone Park - Drainage Upgrade & ground renovation Aquatic Centre - overflow car park east Signage Strategy Implementation 2014-15
CP0098 CP0099 CP0100 CP0101 CP0102
Meercroft Park - reserve car park Mersey Vale - MBS stage 1 Rooke Street Mall Improvement Shared path renewals program (2014/15) BBQ Replacements (2014/15)
39,000 40,000 55,200 165,000 500,000 75,000 55,000 15,000
TasWater Meter Consolidation Reg Hope Park - Safety Mowing Strip & sea wall repairs Mariners Park safety mowing strip Mersey Bluff playground - bark softfall replacement with rubber Proceeds on disposal of assets Total Open Space & Recreation
776,500
656,500
Facilities CB0050 CEEP - energy efficiency funding ( yr 1 $292,000 yr 2 $271,400) CB0059 Public Art CB0060 Art Acquisition - Tidal Art Award (2014/2015) CB0061 BSMC - concrete path and bin screen CB0062 BSMC - concrete path eastern side CB0063 Establishment of fill site Bay Drive CB0064 WTS - PA System for Push Pit area CB0065 WTS - CCTV to Steel waste area CB0066 Julie Burgess - pontoon alterations CB0067 Mersey Bluff Caravan Park - ground levelling Total Facilities
271,400 20,000 10,000 5,000 10,000 45,000 5,000 5,000 15,000 50,000 436,400
346,000 10,000
CP0070 CP0103 CP0104 CP0105
Stormwater CS0029 Pit Replacements CS0030
Manhole Lid Replacements
CS0031 Minor Stormwater Works CS0032 SW Outfall Risk Improvement & Renewal CS0033 326 Kelcey Tier Road - Culvert renewal and outlet protection CS0034 118 Madden St - new pipe in easement CS0035 259 Melrose Road - crossing renewal outlet works CS0036 14 Chelsea Court - manhole renewals CS0037 Miandetta Park SW inlet CS0018 Kelcey Tier Drain Renewal CS0038 William St SW Catchment Upgrade - Stage 4 Total Stormwater
30,000 35,000 15,000 78,800
356,000
-
380,528
380,528
92,000 110,000 402,000
92,000
-
ITEM 4.5
5,847 -
74,829 74,829
0.5% Tender accepted by council, Contractor engaged 2.4% Brooke Street link Prices being obtained from contractors - site works will be completed and reinstated prior to 2015 0.1% football season 0.7% Design being finalised 0.0% Awaiting funding contribution confirmation from 0.0% Meercroft Home 0.1% EOI currently being sought 7.8% WiFi installation being progressed 0.0% Bluff footpath north of skat e park to be upgraded 83.1% BBQ installation have been completed 1.0% 1.1% 1.2% 0.1%
Majority of Locations confirmed, awaiting Tas water Design being finalised Finalising lease with Crown Land Services Alternative products being investigated
1.6%
Sept 2014 NA Dec 2014 Aug 2014 Aug 2014 Sept 2014 Oct 2014 Oct 2014
June 2015 NA Dec 2015 Sept 2014 Sept 2014 Oct 2014 Oct 2014 Oct 2014
Oct 2014
Oct 2014
April 2015 Feb 2015 Mar 2015 Jul 2014
May 2015 Mar 2015 Apr 2015 Jul 2014
Aug 2014
Sep 2014
7.8% 7.3% 0.0% 0.0% 2.3% 2.7% 0.0% 0.0% 0.0% 0.0% 6.5%
Tenders for DECC HVAC system being reviewed Trees - Forrest Walk' piece purchased in July Works completed Works completed Design for entrance alterations finalised Quotations being reviewed Quotations being reviewed Project to progress after summer tourist season Project to progress after summer tourist season
25.6% First list of priority locations has been completed First list of priority locations has been identified, 0.7% project planning underway Budget to be used to fund increased pipe size for 0.0% Brooke Street Subdivision 0.0% 0.0% 0.0% 0.0% 39.3% Project Completed 5.3% 83.2% Contractor nearing completion 0.4% 19.3%
PAGE 140 Finance Report Attachment 2 - Capital Works Report - Aug 2014
ATTACHMENT [2]
Income 2014/15
Expenditure 2014/15
Balance
Additional Funds Carried External Funding Total Budget Annual Budget forward (inc. Grants) Available $ $ $ $
Total 2015 Actual Commitments Expenditure $ $
Remaining Funds $
Performance Measures Works Start Month
Works % Completion Budget Month Spent
Comments
Transport CT0103 CT0104 CT0105 CT0106 CT0107 CT0108 CT0109 CT0110 CT0111 CT0112 CT0113 CT0114 CT0115 CT0116 CT0117 CT0095 CT0118 CT0119 CT0120
PAYL conversion - Car Park to be identified (Best St Car park) Formby Road Car park Arcade Link Road Network Minor Works Re-seal programme Street Light Provision Footpath Minor Renewal in Road Reserve William St - Fourways pavement reconstruction William Street pavement reconstruction - Tasman to Charles Don/Hillcrest essential pavement renewal and sight distance Devonport Road Reconstruction - Turners Lane to McLeod Thomas St base correction and reseal Mersey Bluff car park renewal Torquay Road reconstruction and widening stage 1- east of James st footpath renewal - south side of Devonport Oval stage 1 Road Traffic Devices Minor Works Road Traffic Devices Macfie Street Pedestrian Network Strategy (2012) Action Plan Implementation Stony Rise Rd - Middle Rd intersection New Roundabout Rooke St Safety Barrier - Rooke and Steele Junction
300,000 18,000 25,000 660,000 20,000 25,000 330,000 515,000 215,000 275,000 155,000 60,000 450,000 50,000 25,000
1,827 200 5,480 10,801 1,147 8,575 982 6,179 666 931 5,026 1,878 3,355 40
150 5 2 2 1 1,205 500 -
1,827 200 5,480 10,951 1,153 8,575 984 6,179 668 932 6,231 1,878 3,855 40
298,173 18,000 24,800 654,520 20,000 14,049 328,847 506,425 214,016 268,821 154,332 59,069 443,769 48,122 25,000 20,000 40,000 1,196,145 14,960
40,000 1,200,000 15,000
CT0121 CT0122 CT0123 CT0124 CT0125 CT0125
Kelcey Tier Road safety improvements stage 3 - wall and guard rail Clayton Drive guard rail renewal River Road Rural - Widening Stage 2 Stony Rise Pathway - Leary Ave. To Friend Street. Don & Hillcrest Road Pedestrian Facilities Don Road Pedestrian Safety Island - Lapthorne Close Black Spot Funding - Improvements
310,000 40,000 90,000 105,000
310,000 40,000 90,000 105,000
456 2,129 -
-
456 2,129 -
309,544 40,000 87,871 105,000
4,943,000
49,672
1,865
51,537
4,891,463
4,112,090
-
-
-
4,112,090
4,112,090
-
-
265,000
265,000
-
-
-
265,000
NA
NA
0.0% Parks/Waste Truck quotations being reviewed
Minor Plant Replacement Plan
58,600
58,600
-
-
-
58,600
NA
NA
0.0% List of identified items to be progressively purchased
Fleet Replacement Plan Proceeds on disposal / trade-in of assets Total Plant & Fleet
42,000
42,000
-
-
-
42,000
NA
NA
0.0% List of identified items to be progressively purchased
165,500
165,500
20,000 1,200,000
127,000 55,000 28,000
Total Transport
4,923,000
20,000
Living City CB0053 Living City - Strategic Initiatives
3,312,090
800,000
Total Living City
3,312,090
800,000
Plant & Fleet CF0010 Hire Plant Replacement Plan CF0011 CF0012
1,741,000
-
TBC
Oct 2014
Jan 2015
TBC
Dec 2015
April 2015
Sept 2014
Nov 2014
NA
NA
0.6% 0.0% 0.8% 0.8% 0.0% 43.8% 0.3% 1.7% 0.5% 2.2% 0.4% 1.6% 1.4% 3.8% 0.0% 0.0% 0.0% 0.3% 0.3%
Tenders being sought for PAYL machinery, layout design being finalised Hub Arcade Traders to be advised prior to works
300,000 18,000 25,000 660,000 20,000 25,000 330,000 515,000 215,000 275,000 155,000 60,000 450,000 50,000 25,000 20,000 40,000 1,200,000 15,000
Preparation works to commence in August First section in Nicholls Street completed - additional
Design being finalised for DIER approval
Design has commenced Design has commenced
Design forwarded to DIER for approval
Design completed - construction to be tendered 0.1% once additional land is required 0.0% 2.4% Contractor engaged New project as a result of grant funding New project as a result of grant funding New project as a result of grant funding 0.0% Grant Funding not available. Projects will not 1.0%
July 2014
June 2015
4,112,090
0.0% Project to continue through duration of year 0.0%
365,600
-
-
365,600
-
3,571
66,126
365,600
18.1%
10,462
-
-
-
10,462
NA
NA
0.0% List of identified items to be progressively purchased
Other Equipment CE0004
Furniture & Fittings - Renewal
Furniture & Fittings - New Information Technology - Renewal Information Technology - New Proceeds on disposal / trade-in of assets Total Other Equipment CE0005 CC0005 CC0006
TOTAL CAPITAL EXPENDITURE
10,462 32,631
32,631
-
32,631
NA
NA
0.0% List of identified items to be progressively purchased
121,400
121,400
-
-
-
121,400
NA
NA
0.0% Ongoing program of IT infrastructure upgrades
69,249
69,249
-
-
-
69,249
NA
NA
0.0% Ongoing program of IT infrastructure upgrades
233,742 10,449,332
1,924,500
2,121,528
233,742 12,373,832
90,909
ITEM 4.5
133,518
286,983
233,742
0.0%
12,152,975
2.3%
PAGE 141 Report to Governance and Finance Committee meeting on 15 September 2014
4.6
GOVERNANCE AND FINANCE REPORT File: 29468 D336517
RELEVANCE TO COUNCIL’S PLANS & POLICIES Council‟s Strategic Plan 2009-2030: Strategy 5.4.1
Provide timely, efficient, consistent and quality services which are aligned with and meet our customers needs
SUMMARY
This report provides a summary of the activities undertaken in the following areas of Council:
Corporate and Business Services; Governance; and Organisational Performance department.
BACKGROUND This report is provided to the Governance and Finance Committee every two months and aims to update the Aldermen and the community on matters of interest. The function areas of Council covered by this report include:
Governance Financial Reporting Strategic and Operational Plans Corporate Communication Human Resources Partnerships Risk Management and Insurances Information Technology Budget Management Economic Development Car Parking
Property Management Legal Issues Customer Service Financial Strategy and Management -
Revenue and Rating Grants Loan Borrowings Compliance Related Policies
- Financial Reporting
STATUTORY REQUIREMENTS Council is required to comply with the provisions of the Local Government Act 1993 and other legislation.
DISCUSSION GOVERNANCE 1.
Governance and Legal Matters 1.1
Common Seal Register The following documents have been signed under Council‟s seal July, 2014 to date:
ITEM 4.6
PAGE 142 Report to Governance and Finance Committee meeting on 15 September 2014
Details
Date created 30/07/2014
Final Plan of Survey - 251 Tugrah Road Agreement for Lease DCC and Mr Robert David Torney - Fenton Villas Unit No 2 92 North Fenton Street Application for Grant Assistance - Grant Deed - funding for roundabout at Stony Rise Road Signed Lease – Security Services of Tasmania P/L (trading as Island State Antiques Collectables and Estate Auctions”) – 13 Oldaker Street, Devonport
31/07/2014
Final Plan PA2014.0042 - PM Crowden - 44 Surrey Street Devonport
26/08/2014
Final Plan - SA2013.0006 - WD Speight & E Speight - 526 Paloona Road, Paloona
26/08/2014
Final Plan - SA2013.0005 - BL Speight & E Speight - 406 Paloona Road, Paloona
26/08/2014
Green Army Programme - Signed Agreement - Clayton Reserve Burrowing Crayfish Habitat Improvement Project
1/09/2014
Delegated Authority - LUPAA 1993 - Council to Shane Warren
1/09/2014
Delegated Authority - LUPAA 1993 - Council to Matthew Atkins
1/09/2014
Services Agreement (Non-Clinical Services) - Tasmania Medicare Local Limited & DCC
2/09/2014
1.2
No. of Meeting
Planning Authority
2
Attendance
2.
21/08/2014
Aldermen’s attendance Attendance for July and August is detailed below: Council
Community Services
3 Member
Governance & Finance
1 Non Member
Mayor Ald S L Martin
2
3
Deputy Mayor G B Kent
1
1
Ald B L Cole
0
Ald G F Goodwin
2
3
Ald P G Hollister
2
3
Ald A J Jarman
2
0
Ald J T Keay
2
0
Ald L M Laycock
2
0
Ald L M Perry
2
0
Ald A L Rockliff
2
0
Ald W M Squibb
2
1
Ald W P Wilson
1
2
1.3
19/08/2014
Member
Workshops
2
4
1
Non Member
1
Member
Non Member
Member
1 0
0
Infrastructure & Works
2
0
1
0
0
0
0
2
1
1
2
1
0 0
1
1
1
4 3 0
3 1
3
1
2
4
0 1
2
2 0
Leila Avenue Walkway All matters pertaining to the transfer of titles at Leila Avenue (including Fleetwood Drive and Walter Street) have now been finalised. A copy of the plan is attached which shows which roadways have now been transferred to Council‟s ownership. Annual Report The draft Annual Report for 2014 has been provided to Aldermen for comment. The Annual General Meeting has been scheduled for Monday 13 October at 7.00pm at the East Devonport Recreation and Function Centre. Statutory advertising of the AGM has commenced.
ITEM 4.6
3 3
2
Strategic and Annual Plans 2.1
0
1
0 1
3 1
0
2 0
0
Non Member
3
PAGE 143 Report to Governance and Finance Committee meeting on 15 September 2014
ORGANISATIONAL PERFORMANCE 3.
Organisational Performance 3.1. Year End Audit The focus for July and August 2014 has been the completion of the Financial Statements for the year ending 30 June 2014. Council received the Audit Report and the final management letter from the Tasmanian Audit Office on Thursday 28 August 2014. The Financial Report for the year ended 30 June 2014 is the subject of a separate report on this agenda. 3.2
Internal Audit Council had nominated to join the Northern Sub Regional Alliance internal audit group. The group comprises Councils from the Northern Tasmania Region, however no other Councils from the North West Region have nominated to join. The possibility of forming an internal audit group comprising North West Councils will be discussed at the next meeting of the Regional General Managers scheduled for late September.
CORPORATE SERVICES 4.
Records Management 4.1
5.
Physical Storage – Guideline No 11 from the Tasmanian Archives & Heritage Office (TAHO) An email guideline was received on 31 July 2014 from TAHO recommending checking of record storage areas due to the inclement weather conditions. TAHO recommended that records storage areas are reviewed for potential water damage. All DCC Storage areas were checked by Records Officers and found to be free from water damage and therefore records continue to be compliant with State Records Guideline No. 11 Physical Storage of State Records.
Risk Management and Insurance 5.1. Insurance Cover for Aldermen At the last meeting of the Governance and Finance Committee it was requested that Aldermen are provided with information regarding the insurance cover that is in place applicable to their role. This information has been circulated via email. 5.2
Incident Reports & Insurance Claims 5.2.1 Number of Reported Incidents Report Year
Number of Reported Incidents Internal
Number of Reported Incidents External
July / August
18
10
5.2.2 Incident Type Internal Report Year
Personal Injury
Property Damage
Motor Vehicle
July / August
4
4
8
Near Hit
Hazard
Report Only 2
ITEM 4.6
Procedural
Non Conformance
PAGE 144 Report to Governance and Finance Committee meeting on 15 September 2014
5.2.3 Incident Type External Report Year
Personal Injury
Property Damage
Motor Vehicle
Hazard
July /August
2
6
1
1
5.2.4 Insurance Claim Costs (Internal) Report Period
Actual Claim Costs
July-August 2014
$6,203
Number of Claims
4
The costs for claims in this financial year are a result of the following:
Council garbage truck damaged letter box - $203
Council vehicle hit tree stump - $1,000 excess (total $1500)
Vandalism to Surf Club - $2,500 excess (total app $7000)
Fallen tree caused damage to board walk on Don Reserve - $2,500 excess (total $5000)
5.2.5 Insurance Claim Costs (External) Report Period
Potential Claim Costs
Actual Claim Costs
July - August2014
$3,000
$0
Number of Claims
10
0
No claims have been accepted this financial year. The potential cost relates to two incidents where fallen trees during a storm caused damage to a fence on adjoining properties. (liability denied) 5.3
Health & Safety Policies and Procedures The Securing Loads and Vehicle Recovery Safe Operating Procedures were reviewed and revised during July/August. One Safe Work Method Statement (SWMS) was developed during the period. This SWMS has positively influenced the final design of a project in Bay Drive by identifying high risk work in the preliminary design, which was subsequently removed from the final plan.
5.4
Health & Safety Activities Health & Safety Committee meetings were held in both July and August. Risk Management Improvement Team meetings were held in both July and August. A Risk & Safety meeting (includes Executive Team, Risk & Safety Department, Human Resources) was held in August which included reporting on incidents, risk assessments, insurance matters, audits and health & wellbeing. Seven workplace inspections were completed throughout July and August at locations including the Devonport Recreation Centre, Bass Strait Maritime Centre, Art Storage Facility, Waste Transfer Station including TROLL Shop, Devonport Oval and a Construction Site Audit in Wright Street, East Devonport.
5.5
Risk & Insurance Activities An MAV Insurance Best Practice Forum was held in August the following agenda items were discussed. ITEM 4.6
PAGE 145 Report to Governance and Finance Committee meeting on 15 September 2014
6.
Non-Compliant sports grounds and solutions for improving run off.
Consistency between councils regarding insurance claims process
Consistent documentation for recording and investigating incidents and insurance claims.
Human Resources 6.1
LGAT Workplace Behaviours Policies LGAT held a number of workshops to introduce a new workplace behaviour toolkit. The toolkit contains a suite of policies and procedures to enable Councils to best understand their legal obligations regarding workplace behaviours, and apply their standards and guidelines to protect Council and its workers. The policies developed by Page Seager on behalf of LGAT include workplace behaviour, code of conduct, disciplinary, communications, performance management, work health and safety, fitness of work and issue resolution. Council has submitted feedback in relation to this concept and the draft documents.
6.2
LGAT Special Interest Group - HR Representatives attended the HR Forum in Riverside on Thursday 28 August 2014. A number of presentations were made to the group including:
An introduction and overview of workforce planning issues and planning cycles an overview of parental leave and the right of workers requesting individual flexibility arrangements resolving dispute management – a session on HR employees taking into account the life experiences of staff when investigating and resolving a dispute discussion on the job classifications/reclassifications under the Local Government Modern Award.
The next scheduled date for the HR Forum is Thursday 27 November 2014. 6.3
Recruitment Staff positions currently being recruited: Position
Department
Work Location
Media and Communication Officer
General Management
Council Offices
Civil Works Coordinator
Infrastructure Works and Development
Operations Centre
Waste Management Trainee – Group Employed
Infrastructure works and Development
Transfer Station
ITEM 4.6
PAGE 146 Report to Governance and Finance Committee meeting on 15 September 2014
6.3.1 Staff appointments/changes in July and August 2014: Position
Name
Department
Work Location
Events Officer (Internal, parttime to full-time)
Maree Brodzinski
Community Services
Council Offices
Works Supervisor (Internal Recruitment)
Peter Tuson
Infrastructure Works and Development
Operations Centre
City Engineer (Internal Recruitment)
Michael Williams
Infrastructure Works and Development
Council Offices
Technical Support Supervisor (Internal Recruitment)
Jamie Goodwin
Infrastructure Works and Development
Council Offices
Project Officer (Returned part-time from maternity leave)
Rebecca McKenna
Infrastructure Works and Development
Council Offices
Functions/Box Office Administrator (Internal increase to part-time hours)
Felicity Treloar
Corporate and Business Services
DECC
Functions/Box Office Administrator (Internal increase to temporary parttime hours)
Susan Ikin
Corporate and Business Services
DECC
Casual Waste Management Serviceperson (Direct appointment)
Ronald Hay
Infrastructure Works and Development
Transfer Station
Assistant Accountant (Internal)
Janelle Cabalzar
Corporate and Business Services
Council Offices
Administration Officer (Internal)
Nikita Hillier
Corporate and Business Services
Council Offices
6.3.2 Staff Departures July and August 2014: Position
Name
Department
Work Location
Date Effective
Executive Assistant
Rosemary Lynd
Infrastructure Works and Development
Council Offices
26 August 2014
Box Office Attendant
Tim Cooper
Corporate and Business Services
DECC
29 August 2014
ITEM 4.6
PAGE 147 Report to Governance and Finance Committee meeting on 15 September 2014
6.3.3 Number of Workers Compensation Claims Policy Year ending 30 June
Number of Workers Compensation Claims lodged with Council’s Insurer
Gross value incurred by the Insurer
30/06/2015
0 claims
$0
30/6/2014
8 claims
$ 20,368.14
30/6/2013 *
13 claims
$201,191.96
30/6/2012
13 claims
$140,681.41
30/6/2011
17 claims
$395,319.38
30/6/2010
17 claims
$ 64,609.24
Commentary: *A claim remains open in this year ending. New Workers Compensation claims for the period There were no new worker‟s compensation claims lodged during the month of July and up to 22 August 2014. Continuing Workers Compensation Claims One claim remains open: 7.
Injured worker is participating in Return Work and Injury Management Plan.
Customer Service 7.1
National Local Government Customer Service Network The National Local Government Customer Service Network Inc met in Glenorchy on 20 August 2014. The main topic of the meeting was “Customer Service Strategy Workshop” facilitated by Carol Lewis. Carol is from NSW and works with Local Government and other organisations to improve their customer service. She worked with the group to ascertain, why have a strategy? What does it really mean? How the process should work and discussed suggested structures for the strategy. Council attendees also used the opportunity to gain some benchmarking information from other Councils and members of the network.
8.
Customers
13/14
14/15
Receipts Issued
13/14
14/15
July
6431
6237
July
4767
4662
August
6040
5080
August
5017
4283
Total
12471
11317
Total
9784
8945
Finance 8.1
TasWater Account Manager TasWater have appointed an Account Manager to begin building relationships between TasWater and Council across the broad range of areas in which we have contact. This role is to provide an avenue via which council can access
ITEM 4.6
PAGE 148 Report to Governance and Finance Committee meeting on 15 September 2014
TasWater to obtain relevant information and a high level of customer service. An initial meeting has been held to commence this process. 8.2
132 Certificates During the months of July and August, the Finance Team issued 133 and 93 section 132 certificates respectively. A comparison to the previous financial year is shown below.
s132 Certificates 150 100
133
2014/15 87
50
93
74
2013/14
0 July
August
BUSINESS SERVICES 9.
Property Management 9.1
Lease of 13 Oldaker Street Commencing 27 August, Island State Antiques Collectables and Estate Auctions entered into a lease for the building at 13 Oldaker Street, Devonport for a three year term. The lease is for a three year term and will be managed by Council‟s Property Managers, Collins Real Estate. The premises will be used for a general auction business and retail sale of antiques and collectables. The business was previously run from Burnie Showgrounds, Wivenhoe.
9.2
10.
Renew Devonport – 25 King Street, Devonport Council‟s vacant property at 25 King Street, Devonport has been provided to Renew Devonport on a monthly basis for the Renew Devonport Project.
Parking 10.1 Pay as You Leave (PAYL) As reported to the Infrastructure and Works Committee, tenders have been advertised for new parking machinery with a closing date of 9 September 2014. A tender assessment report will be provided to the September 2014 Council Meeting. It is anticipated that there will be a twelve week delivery timeframe for the equipment once it is ordered. There will be some civil works required to the existing Best Street Car Park including installation of power, new concrete islands and alterations to line marking. The design for the civil work alterations is progressing. 10.2 Parking Statistics Parking statistics across a range of areas is listed below, including a comparison to the previous year.
ITEM 4.6
PAGE 149 Report to Governance and Finance Committee meeting on 15 September 2014
11.
Devonport Entertainment and Convention Centre (DECC) 11.1 Ticketing at the DECC The ticketing system at the DECC has been updated to ProVenue - a new system which allows for more flexibility. This system gives the venue the option to sell tickets for shows for other venues including shows in Launceston and Burnie (subject to approval) and will allow easy access to ticket state-wide events such as the Ten Days on the Island festival. ITEM 4.6
PAGE 150 Report to Governance and Finance Committee meeting on 15 September 2014
The system has an enhanced data management system. It will allow staff to capture and review buying history giving staff the knowledge and insight to market effectively and drive ticket sales. 11.2 DECC Website A new mobile website has also been developed by Tickets.com. The DECC aims to have it operational within the next few weeks. The new website will ensure a professional image and will assist in meeting the following objectives:
To promote the venue and the upcoming shows and events. To be the primary source of information for upcoming events. To provide a list and promote the facilities and services available at the DECC
11.3 Theatre Performances and Events In excess of 3,200 tickets were sold to the 16 performances which were held in The Town Hall Theatre and Centenary Court during July/August. There were twelve performances presented by commercial organisations. These included nine performances which were programmed as part of The Devonport Jazz Festival. Our Lady of Lourdes School presented two performances to the general public together with two private performances for schools. The DECC presented two performances from its own program. One show was specifically selected for the schools audience and the other was programmed for the general public with the aim of encouraging sports enthusiasts (in particular AFL fans) to the theatre. There were 352 tickets sold through Ticketmaster and Ticketek for sporting and theatre events around Australia. Attendances in July were comparable to 2013 however there was a favourable increase in attendances for August. This was due to an increase in the number of theatre performances presented. Details of the productions staged at the DECC in July and August were as follows: Commercial Hire - July Devonport Jazz Events were the only events held at the DECC during July. These were as follows: • • • • • • • • •
West Australia Youth Jazz Orchestra Vince Jones Live West Australia Youth Jazz Orchestra Encore John Coltrane Project The Syncopators 30th Anniversary Concert De Lovely - Janet Siedel Nic Haywood Quartet Melissa Oliveira The Syncopators - Jelly Roll
The attendances at Devonport Jazz Events over three consecutive days at the Devonport Entertainment Centre totalled 896 patrons. Commercial Hire – August • •
Take Me Home – The Music & Life of John Denver The Kransky Sisters – Piece of Cake ITEM 4.6
PAGE 151 Report to Governance and Finance Committee meeting on 15 September 2014
•
Oh! What a Night – Frankie Valli & the Four Seasons Tribute
Audience numbers for commercial theatre productions during August totalled 1,269 patrons. Community Hire - August
Our Lady of Lourdes School - Kids at Sea
The two general public performances attracted an audience of 845 patrons with the school shows almost at capacity. DECC Entrepreneurial Program - August
Monkey Baa Theatre Company – Pete the Sheep Jager Productions – Barassi – The Stage Show
Audience numbers for DECC initiated performances totalled 369 patrons.
11.4 Devonport Eisteddfod The 86th City of Devonport Eisteddfod commenced on Monday, 25 August and will continue until Friday, 12 September. The City of Devonport Eisteddfod has attracted approximately 2,000 entries from all around Tasmania in 300 classes offered this year. They are anticipating in excess of 6,000 people through the doors with a calculated spending in the City of $175,000 during this period. 11.5 Event Details A total of 38 events held at the Devonport Entertainment & Convention Centre for July/August.
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PAGE 152 Report to Governance and Finance Committee meeting on 15 September 2014
Income for this period is disseminated as follows:
12.
Information Technology 12.1 Public Wi-Fi Equipment has been ordered for the implementation of the trial period in the Rooke Street Mall commencing in November. The Department of State Growth has released a Tasmanian free public Wi-Fi consultation paper and is seeking comment by Friday, 19 September 2014. The Cradle Coast Authority are preparing and submitting a regional response to the consultation paper in partnership with the regions Local Governments and Local Tourism Associations, and presenting a roll out option for Wi-Fi across the region.
13.
Corporate Communication 13.1 Website Upgrade Council has engaged software provider Seamless to develop a new website and Intranet. Seamless are currently developing design proposals for consideration.
COMMUNITY ENGAGEMENT The information provided above details any issues relating to community engagement.
FINANCIAL IMPLICATIONS Any financial or budgetary implications related to matters discussed in this report will be separately reported to Council. There is not expected to be any impact on the Councilâ€&#x;s operating budget as a result of this recommendation.
RISK IMPLICATIONS Any specific risk implications will be outlined in the commentary above. Any specific issue that may result in any form of risk to Council is likely to be subject of a separate report to Council.
CONCLUSION
This report is provided for information purposes only and to allow Council to be updated on matters of interest. ITEM 4.6
PAGE 153 Report to Governance and Finance Committee meeting on 15 September 2014
ATTACHMENTS 1.
Plan - transfer of roadways from R W Squibb and Sons
RECOMMENDATION That it be recommended to Council that the Governance and Finance report be received and noted.
Author:
Shane Crawford, Kym Peebles, Karen Hampton
Endorsed By: Position:
ITEM 4.6
Paul West General Manager
PAGE 154 Plan - transfer of roadways from R W Squibb and Sons
ITEM 4.6
ATTACHMENT [1]
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5.0
CLOSED SESSION
RECOMMENDATION That in accordance with Regulation 15 of the Local Government (Meeting Procedures) Regulations 2005 the following items be dealt with in Closed Session; Local Government (Meeting Procedures) Regulations 2005 Reference
Item No
Matter
3.1
Outstanding Debtors - 90 Days and Over 15(2)(j) Report
3.2
Outstanding Rates Debtors - Three Years 15(2)(j) and Over
6.0 CLOSURE There being no further business the Chairman declared the meeting closed at
ITEM 4.6
pm.