Corporate governance

New Code of Meeting Practice

In May 2019, Council adopted a new Code of Meeting Practice, based on the Model Code of Meeting Practice for local councils in NSW: • In addition to webcasting Ordinary Meetings of Council, Council will also webcast all Advisory Committee

Meetings, Standing Committee Meetings and Extraordinary Meetings of Council, commencing 1 June 2019. • Public forums are to be held prior to all Standing Committee Meetings, Ordinary Meetings of Council and

Extraordinary Meetings of Council. • The number of public speakers was retained at three speakers for and three speakers against any item on the agenda. • Public speakers will be permitted to speak on more than one item of business on the agenda, subject to the approval of the General Manager. • The use of audio or visual aids will be permitted subject to the speaker providing notification at the time of registering their request to speak and subject to the content of the aids not containing offensive or defamatory material. • An extension of time may be granted to registered speakers in extenuating circumstances at the discretion of the Chairperson. • Video recordings of Council meetings are to be retained for 12 months on Council’s website. • ‘Matters of Privilege’ are removed from the Order of Business Amendments to the Local Government Act 1993 allowed councils to meet remotely to reduce the risk of COVID-19. Meetings of Council were held remotely via Skype from March 2020 to June 2020.

In order to ensure the same level of public participation in these meetings of Council, the Public Forum portion of each meeting was adapted. When members of the public registered to address Council, they provided a written submission which was read aloud to the Skype meeting.

Ethical conduct

Good governance are the processes and behaviours that ensure an organisation is able to meet its intended purpose, conforms by complying with laws, codes, policies and procedures while meeting community expectations of probity, accountability and transparency.

Code of Conduct

Our Code of Conduct incorporates the provisions of the Office of Local Government’s Model Code of Conduct for Local Councils in NSW and includes additional provisions relevant to Council.

We have adopted an Ethical Conduct Framework which includes the Code of Conduct, the Code of Meeting Practice and our Statement of Business Ethics. The Code of Conduct is the principal document which forms the foundation for a strong ethical culture at Council. This Framework includes a suite of policies and procedures that we have developed which provide further guidance in regards to ethical conduct. Failure to comply with these policies and procedures would therefore be a breach of the Code of Conduct. Twenty-one complaints were made about councillors and the General Manager during 2019/20 under the Code of Conduct. The cost of dealing with these complaints, including staff costs, is $147,581.

Other governance policies

The Public Interest Disclosures Reporting Policy was adopted by Council in June 2020 after the provision of workshops facilitated by the NSW Ombudsman in November 2019 and the Local Government NSW e-Learning workshop for Councillors in June 2020.

Our updated Fraud and Corruption Control Policy was adopted in June 2020 and we have commenced a review of the Fraud and Corruption Control Plan having regard to the foreshadowed changes to the Australian Standard on Fraud and Corruption Control (AS 8001:2008). In addition, our website was updated to include an online Suspected Corrupt Conduct Form to facilitate members of the public reporting suspected fraud and corruption.

We have consulted across business areas on the review and update of staff delegations, culminating in the launch of a new Online Staff Delegations Register. We are implementing all actions arising from the recommendations of the Procurement Audit, entailing the restructure and recruitment of the procurement team and adoption of new procurement and contact management policies, the roll out of a new procurement Intranet portal and delivery of bespoke training specific to the needs of each directorate.

Our Procurement Policy and thresholds was further updated to include an Interim Direction for local procurement in line with the adoption of our Economic and Social Recovery Plan, to encourage purchasing from suppliers in the LGA.

Future priorities will focus on the implementation of actions arising from the recommendations of the Contract Management Audit and further updates to the contract management framework, systems and reporting.

Risk management

Our risk management approach follows the principles and practices specified in the Australian and New Zealand Standard (AS/NZS) ISO 31000:2018 Risk Management – Guidelines and tailored for our operating environment.

Enterprise Risk Management Framework

Our Enterprise Risk Management Framework aims to support organisational objectives and considers all types of strategic, financial, regulatory, reputation, project and other operational risks. The framework provides the foundations and organisational arrangements for designing, implementing, monitoring, reviewing and continually improving risk management. It consists of: • Enterprise Risk Management Policy to clearly communicate our intent and commitment • Risk Appetite Statement to help guide management and risk owners in respect to the parameters of acceptable risk taking and tolerances • Enterprise Risk Management Plan to provide a roadmap of the approach to foster a positive risk-aware culture and outline the mechanisms for implementing, resourcing, communicating and improving risk management as well as measuring and reporting risk management performance • Risk Assessments and Reports including risk registers which are applicable to all functions.

Embedding risk management

All Council officials should embed risk management into day-to-day activities so that risk management thinking is deeply entrenched into the organisation’s norms and prudent risk taking is aligned to risk appetite. Our integration of risk will follow these principles: • apply a transparent and consistent framework across the organisation • use a flexible approach to how we identify, respond and control risk to accommodate our range of activities • reinforce accountability at all levels • continually promote a positive risk culture where risk management is seen as an enabler, embraced and valued by Council officials and stakeholders • consider enterprise-wide risks in strategies, plans, reports, decisions, operations, events, activities and business processes.

In June 2019 the Statewide Mutual Risk and Audit Maturity Benchmarking results reported Council to be within the top-three in assessment of the maturity of audit and enterprise risk management processes and functions across member councils.

In November 2019 a Councillors’ workshop was held on the New Internal Audit and Risk Management Framework for councils in NSW, reporting the current audit and risk management system and functions are well positioned for the foreshadowed legislative changes by the Office of Local Government (OLG). Feedback was submitted to the OLG as part of the consultation period ending December 2019.

Lunar New Year 2020

Achievements

Commenced and completed the implementation of all actions arising from the recommendations of the Enterprise Risk Management Audit. Reviewed, consolidated and streamlined all risk registers by directorates with respect to strategic, operational and fraud related events. Integrated risk registers to reduce any duplication of risk events across functions and ensure cost effective monitoring and reporting by senior management and the Audit Risk and Improvement Committee. Adopted the updated Enterprise Risk Management Policy. Held workshops across directorates to ensure uptake and contribution to the integrated risk registers for council. Made risk a standing item on all meeting agendas to ensure identification, ownership, risk mitigation and appropriate management. Held risk education and workshops held to capture current climate. Regularly reviewed risk registers in each directorate to update any items that are no longer current. Held relevant risk training conducted for all directorates. Held a business continuity scenario training exercise held with the crisis management team in September 2019. Developed the effective risk management of Business Continuity COVID-19 action plan and held a debrief workshop to capture learning across council operational areas and identify improvements to assist future disruption event.

Business Continuity Plan

Our Business Continuity Management Policy governs the framework of Business Continuity Plans (BCPs).

The framework covers site-specific BCPs for Hurstville Civic Centre Administration Building, Customer Service Centre, Library, Childcare, Depot, Aquatic Centre, Pandemic, Technical Infrastructure Disaster Recovery and Local Emergency Management. They are used by staff to restore business operations in the event of an unscheduled business disruption or catastrophic event at our sites.

The Plan is divided into four main parts which correspond to the key phases of a disaster as follows:

Emergency Response

Crisis Management

Business Recovery

Business Resumption.

Incident occurs

Emergency?

No

Business crisis

Yes

Execute Crisis Management Plan

No

Execute Business Recovery Plan

Execute Emergency Response Plan

Stage 1

Stage 2

Stage 3 Business Continuity Plan

Execute Business Resumption Plan

Stage 4

Incident ends

Our BCP was activated on 9 March 2020 by the General Manager after consultation with the Crisis Management Team (CMT). This took place several weeks prior to the Council meeting held on 20 April 2020. Jardine Lloyd Thompson (JLT), our risk insurer and a key external stakeholder involved in developing our BCP, was consulted prior to the General Manager activating the Plan.

The BCP allows us to prepare for and continue to operate after an incident or crisis occurs. It assists with the identification and reduction of risk, where possible, to prepare it for those risks that are uncontrollable.

In order to monitor the evolving situation, the CMT had daily COVID-19 meetings, including the welfare of staff and the community, followed by information updates on our website and communications to staff through a dedicated COVID-19 intranet page.

Daily reports included an overview of critical statistics such as: • staffing (self-isolation, working from home, redeployment, vulnerable staff (those more than 60 and 70 years of age) • customer service • children’s services • financial hardship enquiries • service delivery (waste, aquatics, etc) • commercial and community property lease enquiries • IMT and digital infrastructure updates • daily audit of essential staff present in the Civic

Centre (in line with Public Health Order gathering restrictions).

Council received updates on the BCP and contingencies in respect to COVID-19 and the budget impact of COVID-19, including reports on decisions made pursuant to the Instrument of Delegation to the Mayor (Emergency Administrative Provisions).

The daily COVID-19 meetings continued until 15 May 2020, after which meetings were held each week as restrictions were lifted, in line with Public Health Orders.

Georges River Civic Centre

Audit, Risk and Improvement Committee

The Audit, Risk and Improvement Committee provides Council with independent assurance and assistance on its compliance, risk management, financial management, governance, audit, fraud control and service delivery responsibilities.

There are three independent members and two councillors on the Committee. The membership has remained stable over the past two years since the election of the amalgamated Council. Two of the independent members had their appointments extended in September 2019 to carry through to 31 December 2020.

Committee Profiles

Councillor Christina Wu Councillor Warren Tegg

Independent Members

Stephen Horne-Committee Member

PFIIA-Aus., CIA, CGAP, CRMA, FGIA, GAICD, B Bus,Grad Cert Mgt Comm, Grad Cert Fraud Control, Cert Public Admin, MIPAA

Stephen had a 38-year career in the NSW public sector. His executive roles included Assistant AuditorGeneral for NSW, looking after Performance Audits, and Chief Executive of IAB, a Government Trading Enterprise undertaking internal audits and misconduct investigations for NSW Government and local government bodies.

In 2015 Stephen established his company, Checks Balances and Integrity, offering services as a professional non-executive director and a specialist adviser, consultant and trainer in the fields of integrity and culture, probity, fraud control, risk, governance and internal audit.

Stephen serves as an independent member on a number of audit and risk committees across state and local government bodies in NSW and Victoria, and chairs five of these.

Elizabeth Gavey-Committee Member

B Com (Economics) LLB GAICD

Elizabeth joined the Audit Risk and Improvement Committee as an independent member when it was first constituted in August 2016. She also serves on the Audit, Risk and Improvement Committees for four other councils in NW and on the Audit and Risk Committee for the NSW Electoral Commission.

She has 30 years’ plus experience gained in commercial law, investment banking and the health sector and is an experienced company director in the not for profit sector.

John Gordon – Committee Chair

B.Comm.(hons.), FCA, CPA, ACIS, AAGI, AIIA (Aust.), MAICD, FLGAA, JP

John was appointed to the Committee as Chair since formation of the Committee in August 2016. He is an assurance, risk and corporate governance specialist.

John had a career of over 30 years, 22 as an audit/ assurance partner with PricewaterhouseCoopers (PwC) and predecessor firms. Clients covered a broad range of organisations including listed public companies across most industry sectors. Public sector clients including Commonwealth, State and local government comprised approximately 30 per cent of John’s portfolio.

John served in the roles of Hunter Region Managing Partner; NSW Local Government Leader; National Staff Partner, and National Risk Management Partner for the Resources, Services and Government Division of PwC.

Since 2009, John works in governance and risk. He has served with audit and risk committees for over 20 ACT, NSW and NSW council agencies as well as not-for-profit organisations. He is a Board Member for South Western Sydney Local Health District, chairs the Finance, Performance and Assets Committee, is a member of the Audit and Risk Committee and the Research and Teaching Committee. John is chair or member of 13 audit and risk committees including nine in NSW local government.

Committee tasks

The Committee operates under the Audit, Risk and Improvement Committee Charter which reflects the guidelines provided by the NSW Office of Local Government and industry best practice. The Charter was adopted by Council on 1 May 2017 and includes the new legislative responsibilities, including: • compliance • risk management • fraud control • financial management • governance • service reviews • implementation of the strategic plan, delivery program and strategies • collection of performance measurement data • The Committee annually adopts a forward responsibility meeting plan that ensures coverage of these responsibility areas over a twelve month period.

Key achievements

The Committee reviewed all responsibility categories required by the Charter over the course of the year. This was facilitated by the adoption of a Forward Responsibility Calendar in August 2018, which reflects the requirements of the Charter and Legislation, allocating the varying responsibilities to nominated meetings across an 18 month period to ensure complete coverage.

Key achievements include: • on target with the risk-based Audit Plan 2018-2021 • oversight of the development of Risk Management,

Compliance and Governance Frameworks within a merged council arrangement • introduction of pre-meeting information briefing sessions to gain greater insights and understanding of Council • early review of the Draft Financial Statements for the year ended 30 June 2019 in September 2019

Internal Audit

Chief Audit Executive

We have a full-time qualified Chief Audit Executive (Internal Auditor) reporting administratively to the General Manager and functionally to the Audit, Risk and Improvement Committee. The Chief Audit Executive is a member of the Institute of Internal Auditors and, by being so, is required to comply with the International Standards for the Professional Practice of Internal Auditing.

This position strives to support the Committee as well as performing other internal audit functions included in an Internal Audit Charter. This includes developing and implementing the three-year risk-based Audit Plan, carrying out/coordinating internal audits, providing related consultancy advice and conducting related investigations. The Chief Audit Executive has the capacity to engage experienced contractors to undertake selected reviews and internal audits.

Internal Audit Plan

During 2019/20, substantial progress was made on the three-year 2018-2021 Audit Plan. The following audits were undertaken and reviewed by the Audit, Risk and Improvement Committee: • developer contributions • accounts payable • accounts receivable • voluntary planning agreements (VPAs) • Transport for New South Wales Driver and vehicle

Information System (RMS Drives) Terms of Access

Agreement • debtors management and debt recover • credit card transactions • time management • fire safety processes and compliance • Enterprise Risk Management – treatment plans • financial assistance • contract management.

Detail of mural by artist Mandy Salter, a.k.a. MAN.De on the corner of Dora and MacMahon Street, Hurstville