AUDIT COMMITTEE NOTICE OF MEETING...2013/02/11 · File No: 09.14.1 SMP: Goal 5: Open Effective and...

AUDIT COMMITTEE

NOTICE OF MEETING

To: Presiding Member Peter Brass

Members Peter Robertson Allen Bolaffi Kate Hosking Jan Loveday

Notice is hereby given pursuant to the provisions under Section 88 of the Local Government Act 1999 that the next meeting of the Audit Committee will be held on:

Monday 11 February 2013 63 Mt Barker Road, Stirling

6.00pm A copy of the Agenda for this meeting is supplied under Section 88 of the Act. Meetings of the Council and Committees are open to the public and interested members of this community are welcome to attend.

Andrew Aitken Chief Executive Officer

AGENDA FOR AUDIT COMMITTEE MEETING Monday 11 February 2013 63 Mt Barker Road, Stirling

6.00pm

ORDER OF BUSINESS

Council Vision To value our diversity, our landscape and our people Council Mission To improve services and protect our landscape for the people who live and

visit our area by providing quality and appropriate infrastructure, planning, community services and good governance

1. COMMENCEMENT

2. APOLOGIES

3. MINUTES OF PREVIOUS MEETINGS

3.1. Audit Committee Meeting held on 12 November 2012 Recommendation That the minutes of the Audit Committee meeting held on 12 November 2012, as distributed, be confirmed as an accurate record of the proceedings of that meeting.

4. DELEGATION OF AUTHORITY The Audit Committee operates in accordance with the relevant sections of the Local Government Act 1999, and its Terms of Reference.

5. DECLARATION OF INTEREST BY MEMBERS OF COMMITTEE

6. REPORTS

6.1. Audit Committee Action Report ............................................................

6.2. Long Term Financial Plan – Public Consultation ..................................

6.3. Procurement & Purchasing Policy .......................................................

6.4. Internal Audit Plan ...............................................................................

6.5. Final Audit Management Letter ............................................................

6.6. Budget Review 1 .................................................................................

7. CONFIDENTIAL ITEMS

7.1. External Audit Services, Contract No. 15/13

8. NEXT MEETING The next Audit Committee meeting will be held at 6.00pm on Monday, 29 April 2013, at 63 Mount Barker Road, Stirling.

9. CLOSE AUDIT COMMITTEE MEETING

ADELAIDE HILLS COUNCIL AUDIT COMMITTEE MEETING Monday 11 February 2013 AGENDA BUSINESS ITEM

Item: 6.1 Originating Officer: Tim Piper, Director Finance Subject: Audit Committee Action Report File No: 09.14.1 SMP: Goal 5: Open Effective and Efficient Governance SMP Key Issue: 5.4: Financial Responsibility

1. SUMMARY

A formal Audit Committee Action Report is maintained to record the items requiring ‘actioning’ resulting from each of the Audit Committee meetings.

2. DISCUSSION

A summary of the action items raised by the Audit Committee for the 2012 Calendar year is as follows:

Actions raised 10

Actions closed 10 Actions remaining open 0

The Audit Committee Action Report, highlighting items for 2012 is attached (Appendix 1).

3. RECOMMENDATION That the Action Report be noted.

4. APPENDICES (1) Audit Committee Action Report 2012

Appendix 1 Audit Committee Action Report 2012

Date Item Topic Action Responsible

Officer

Progress

6/02/2012 6.1 Internal Audit Report - Elections, June 2010 Council Management to report the status of the internal audit report

recommendations to the Audit Committee at each meeting until completed

Tim Piper Brought forward from 09/08/2010

6/02/2012 6.3 Whistleblowers Protection Policy Recommend the Whistleblowers Protection Policy & Procedures to Council for

adoption

Tim Piper Completed

6/02/2012 6.4 Revised Capitalised Assetts Policy Recommend the revised Capitalised Assets Policy to Council for adoption Tim Piper Completed

6/02/2012 6.4 Revised Capitalised Assetts Policy Use the revisded Capitalised Assets Policy for the accounting treatment of

capitalised assets for future General Purpose Financial Statements

Paul Francis Completed

6/02/2012 6.5 Business Excellence Provide Audit Committee with six monthly verbal updates Tim Piper Completed

2/04/2012 6.4 Internal Audit Programme Management prepare a further revised programme until 2014/15 for the next

meeting

Tim Piper Completed, see next item

29/10/2012 7.3 Internal Audit Programme Management to develop a risk based internal Audit 3 year plan covering both

strategic and operational areas, and report back to the Audit Committee in February

2013

Tim Piper Presented at this meeting

29/10/2012 8.1 Banking and Bill Payment Services, Contract

No. 28/12 – Exclusion of the Public

Awarding of Contract No. 28/12 endorsed adoption by Council supported. Prepare

report for Council.

Tim Piper Completed

12/11/2012 6.1 2011/12 Annual Financial Statements Advise Council's external auditor Tim Piper Completed

12/11/2012 - Matter Arising That staff compile a tender document to be used for the purpose of appointing an

Auditor and refer back to the Audit Committee.

Tim Piper Completed, results presented at this meeting

ADELAIDE HILLS COUNCIL AUDIT COMMITTEE ACTION REPORT - 2012

http://teams.ahc.sa.gov.au/finance/Audit Committee/Agendas and Minutes/130211 - 11 February 2013/Item 6.1 Audit Committee Action Report Attach 1.xls Page 1


Item: 6.2 Originating Officer: Tim Piper Responsible Director: Tim Piper Subject: Long Term Financial Plan – Community Consultation File No: 09.14.1 SMP Goal: Goal 5: Open Effective and Efficient Governance SMP Key Issue: 5.4: Financial Responsibility

1. SUMMARY

Council’s Long Term Financial Plan forms part of its Strategic Management Plan. It is therefore a requirement (LGA 1999, s122(6)) that members of the public are to be a given a reasonable opportunity to be involved in the development and review of Council’s Long Term Financial Plan. This report outlines the proposed consultation process and material for the most recent version of the Long Term Financial Plan. It also provides the Audit Committee with the Plan itself, updated to reflect BR1 of 2012/13 and the effect of the latest Asset Management Plan.

2. GOVERNANCE � Strategic Management Plan The Long Term Financial Plan is prepared as a part of the Strategic Management Plan in accordance with Goal 5.4, Financial Responsibility. � Legislation The Long Term Financial Plan is part of Council’s Strategic Management Plan according to section 122(1)(a) of the Local Government Act 1999. � Sustainability Economic Social

Environmental

Governance

Adelaide Hills Council Audit Committee Meeting 11 February 2013 LT Financial Plan – Community Consultation

Page 2

� Budget There is no specific cost associated with preparing the Long Term Financial Plan or undertaking Community consultation. The proposed consultation process utilises existing council facilities and communication channels. � Consultation Community feedback will sought on the content and appropriateness of the Plan incorporating the outcome of this item.

3. BACKGROUND This report has been written to present the latest Long Term Financial Plan to the Audit Committee along with the proposed consultation material to accompany it. Feedback from the Audit Committee can still be incorporated into the material and the process.

4. DISCUSSION The background to this version of the Long Term Financial Plan is recorded in the accompanying material and has not been repeated here. Financially, it reflects the latest Asset Management Plan and hence incorporates an additional $10.2M of capital spending over ten years to upgrade and increase the capacity of stormwater drainage and CWMS systems to an acceptable level. In order to avoid permanently increased borrowing to fund these items, the Plan also changes direction from those prepared over the last three years. It highlights that, in the absence of grant funding, additional capital items can only be paid for by generating operating surpluses in the long term. To ensure the necessary surpluses (increased from $4.6M over ten years to $10.6M) the Plan introduces an extra 1% over CPI rate increase in 2015, 2017, 2019 and 2021. This is a significant change from the existing LTFP which assumes a standard increase of CPI+1% on an ongoing basis. The extra 1% is to fund the existing asset backlog, predominantly in road and transport assets. Ultimately, the revised pattern of rate increases will leave council with slightly lower Net Financial Liabilities than the existing Plan. Planning for additional rate rises is a sensitive strategy which has already been considered by Council at a workshop before Christmas. There are alternative ways to achieve the required operating surpluses, and Council is continuing to explore those. The Consultation material clearly explains that any improvement to surpluses generated though efficiency gains (Business Excellence) or additional Financial Assistance Grants (from the Commonwealth) will allow for the extra rate increases to be reconsidered. The Plan, however, has been prepared on a prudent basis and does not assume those gains.

Adelaide Hills Council Audit Committee Meeting 11 February 2013 LT Financial Plan – Community Consultation

Page 3

4A OPTIONS Having noted the revised Long Term Financial Plan, its underlying assumptions and the attached consultation material, the Audit Committee can either endorse them and recommend their acceptance and use by Council, or it can recommend improvements prior to their finalisation. The Plan is scheduled to be approved for consultation by Council at its meeting on 26 February 2013, and circulated during March 2013.

5. RECOMMENDATION That Council adopt the revised Long Term Financial Plan as tabled to be taken for community consultation during March 2013.

.

6. APPENDICES (1) Long Term Financial Plan Information Package (2) Long Term Financial Plan Consultation Documents

Appendix 1 Long Term Financial Plan Information Package

ADELAIDE HILLS COUNCIL

LONG TERM FINANCIAL PLAN

PREPARED 2013

COMPARISON OF ADOPTED AND LATEST LTFP'S LTFP with final 2011/12, 2012/13 BR1 ($56k surplus) and provisional 2013/14 budget ($189k surplus).

-5,000

-4,000

-3,000

-2,000

-1,000

-

1,000

2,000

3,000

2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12

$'0

00

Period

Operating Surplus and Net Financial Liabilities ( /10)

Latest Indicator 1 - Operating Surplus / (Deficit) - $'000 2011/12 Budget - Operating Surplus / (Deficit) - $'000 2010 LTFP - Operating Surplus / (Deficit) - $'000

2009 LTFP - Operating Surplus / (Deficit) - $'000 Latest Indicator 3 - Net Financial Liabilities - $'000 2011/12 Budget - Net Financial Liabs - $'000

2010 LTFP - Net Financial Liabilities - $'000 2009 LTFP - Net Financial Liabilities - $'000

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6/02/2013 3:31 PM LTFPv5 Overview

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6/02/2013 3:31 PM LTFPv5 Overview (2)

Adelaide Hills Council - Long Term Financial Plan

Dashboard Parameter Settings

Dashboard Parameters Operating Surplus Ratio - Interpretation

Category Ratio Sustainability

Minimum Maximum

1 >10% * Very Substantial Comfort

2 5% - 10% Substantial Comfort

Indicator 1 - Operating Surplus / (Deficit) - $'000 (200) 1,200 3 0% - 5% Moderate Comfort

4 0% - (7.5)% Minimun comfort

Indicator 2 - Operating Surplus Ratio - % 0% 10% 5 (7.5)% - (10)% Vulnerable

6 <(10)% Unsustainable

Indicator 3 - Net Financial Liabilities - $'000 0 20,000

Indicator 4 - Net Financial Liabilities Ratio - % 20.0% 60.0% * Review of surplus required

Indicator 5 - Interest Cover Ratio - % 0.0% 10.0%

Indicator 6 - Asset Sustainability Ratio - % 80% 110%

Indicator 7 - Asset Consumption Ratio - % 40% 80%

Adelaide Hills Council - Long Term Financial Plan Notes:

Current Financial Indicators Dashboard

- Within Acceptable Target Range

- Outside Acceptable Target Range

Year Ended 30 June: 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Financial Indicator Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 11 Year 12 Year 13

Indicator 1 - Operating Surplus / (Deficit) - $'000 163 23 337 56 189 361 473 797 867 1,280 1,500 2,056 2,361

Indicator 2 - Operating Surplus Ratio - % 0.5% 0.1% 0.9% 0.2% 0.5% 1.0% 1.3% 2.1% 2.2% 3.2% 3.7% 5.0% 5.7%

Operating Surplus Ratio - Sustainability level

Indicator 3 - Net Financial Liabilities - $'000 14,737 16,101 16,632 16,564 17,315 18,354 19,985 21,746 22,441 22,249 21,246 19,693 17,482

Indicator 4 - Net Financial Liabilities Ratio - % 47% 49% 47% 46% 48% 49% 53% 57% 58% 56% 53% 48% 42%

Indicator 5 - Interest Cover Ratio - % 1% 2% 2% 2% 2% 2% 2% 3% 3% 3% 3% 3% 2%

Indicator 6 - Asset Sustainability Ratio - % 91% -134% -130% -106% -113% -117% -119% -128% -113% -106% -95% -95% -91%

Indicator 7 - Asset Consumption Ratio - % 69% 69% 67% 66% 65% 63% 63% 62% 61% 60% 59% 58% 57%

Financial Indicator(Outside this Green turns Red)

6/02/2013 3:31 PM LTFPv5 Dashboard



PREPARED 2013

SUMMARY OF KEY ASSUMPTIONS

Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12

These are the ten most significant variables applied 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Uncontrollable Factors:

- Inflation (measured by CPI) 2.60% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

- Interest rate (RBA base rate) 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50%

- Rates volume growth (new & improved properties) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

- Operating grants (percentage of current) 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

- Capital grants (percentage of current) 100% 72% 72% 72% 72% 72% 72% 72% 72% 72%

- Wage Price Index (in excess of CPI) 1.9% 1.0% 1.5% 1.0% 1.5% 1.0% 1.5% 1.0% 1.5% 1.0%

- Fuel price increases (in excess of CPI) 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

- Waste volume growth 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Each of the above factors affects either income or

expenditure but is entirely or substantially outside

Council's control.

Each is therefore set at the average value expected

to apply across the ten year period.

Controllable Factors:

- Rate increases (in excess of CPI) 1.0% 1.0% 2.0% 1.0% 2.0% 1.0% 2.0% 1.0% 2.0% 1.0%

- Capital Expenditure:

Infrastructure renewal and replacement 6,434$ 7,370$ 7,980$ 8,200$ 8,925$ 7,775$ 7,345$ 6,450$ 6,502$ 6,244$

New and upgraded infrastructure 838$ 880$ 970$ 1,500$ 1,275$ 1,475$ 1,475$ 1,825$ 1,825$ 1,775$

Plant, Equipment and Other 1,262$ 1,084$ 1,084$ 1,084$ 1,084$ 1,084$ 1,084$ 1,084$ 1,084$ 1,084$

These factors determined by Council will dictate future

financial performance and sustainability

6/02/2013 3:31 PM LTFPv5 Assumptions



PREPARED 2013

SUMMARY STATEMENT INCLUDING FINANCIAL TRANSACTIONS

(PER UNIFORM FINANCIAL PRESENTATION) Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12

y/e -> 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Operating Income 32,185 33,854 36,306 36,683 37,131 37,888 38,353 39,141 39,625 40,445 40,949 41,802 42,326

Less: Operating Expenses 32,022 33,831 35,969 36,627 36,942 37,527 37,880 38,343 38,758 39,165 39,449 39,746 39,965

Operating Surplus/(Deficit) Before Capital Amounts 163 23 337 56 189 361 473 797 867 1,280 1,500 2,056 2,361

Less: Net Outlays on Existing Assets

Capital Expenditure on Renewals/Replacement (7,642) (9,449) (9,453) (7,696) (8,454) (9,064) (9,284) (10,009) (8,859) (8,429) (7,534) (7,586) (7,328)

of existing assets

less: Depreciation, Amortisation & Impairment 6,412 6,943 6,906 7,285 7,494 7,735 7,780 7,826 7,871 7,917 7,962 8,008 8,053

less: Proceeds from Sale of Replaced Assets 182 166 501

Net Outlays on Existing Assets (1,049) (2,340) (2,046) (411) (960) (1,330) (1,504) (2,183) (988) (512) 428 421 725

less: Net Outlays on New and Upgraded Assets

Capital Expenditure on New/Upgraded Assets (1,916) (877) (378) (838) (880) (970) (1,500) (1,275) (1,475) (1,475) (1,825) (1,825) (1,775)

less: Amounts received specifically for New/Upgraded 1,381 1,596 1,357 1,048 750 750 750 750 750 750 750 750 750

Assets

less: Proceeds from Sale of Surplus Assets 472 170 - 320 250 250 250 250 250 250 250 250 250

Net Outlays on New and Upgraded Assets (63) 889 979 530 120 30 (500) (275) (475) (475) (825) (825) (775)

Equals: Net Lending/ (Borrowing) for Financial Year (948) (1,428) (730) 175 (651) (938) (1,531) (1,661) (596) 292 1,103 1,653 2,311

KEY PERFORMANCE INDICATOR RATIOS

Operating Surplus Ratio - % 0.5% 0.1% 0.9% 0.2% 0.5% 1.0% 1.3% 2.1% 2.2% 3.2% 3.7% 5.0% 5.7%

Net Financial Liabilities Ratio - % 47.0% 48.7% 46.8% 46.1% 47.6% 49.5% 53.2% 56.7% 57.8% 56.1% 52.9% 48.0% 42.1%

Asset Sustainability Ratio - % 91% 134% 130% 106% 113% 117% 119% 128% 113% 106% 95% 95% 91%

6/02/2013 3:31 PM LTFPv5 UFP Summary Statement



PREPARED 2013

STATEMENT OF COMPREHENSIVE INCOME

CPI Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12

y/e -> 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

INCOMERates 2 25,219 26,693 28,757 29,717 30,164 30,921 31,386 32,174 32,658 33,478 33,982 34,835 35,359

Statutory charges 2 860 854 824 965 965 965 965 965 965 965 965 965 965

User charges 2 1,348 1,422 1,320 1,070 1,070 1,070 1,070 1,070 1,070 1,070 1,070 1,070 1,070

Grants, subsidies and contributions 2 3,523 3,498 3,711 3,467 3,467 3,467 3,467 3,467 3,467 3,467 3,467 3,467 3,467

Investment income 2 37 70 69 85 85 85 85 85 85 85 85 85 85

Reimbursements 2 249 231 376 234 234 234 234 234 234 234 234 234 234

Other income 2 798 1,013 998 1,045 1,045 1,045 1,045 1,045 1,045 1,045 1,045 1,045 1,045

Net gain - joint ventures & associates 19 151 74 251 100 100 100 100 100 100 100 100 100 100

Total Income 32,185 33,854 36,306 36,683 37,131 37,888 38,353 39,141 39,625 40,445 40,949 41,802 42,326

EXPENSESEmployee costs 3 11,333 11,607 12,139 12,630 12,757 12,948 13,077 13,274 13,406 13,607 13,743 13,950 14,089

Materials, contracts & other expenses 3 13,751 14,687 16,201 16,129 15,996 16,094 16,198 16,302 16,412 16,522 16,638 16,756 16,878

Finance costs 3 484 518 687 582 695 749 824 942 1,068 1,119 1,105 1,032 944

Depreciation, amortisation & impairment 3 6,412 6,944 6,907 7,285 7,494 7,735 7,780 7,826 7,871 7,917 7,962 8,008 8,053

Net loss - joint ventures & associates 19 42 75 35

Total Expenses 32,022 33,831 35,969 36,627 36,942 37,527 37,880 38,343 38,758 39,165 39,449 39,746 39,965

OPERATING SURPLUS / (DEFICIT) 163 23 337 56 189 361 473 797 867 1,280 1,500 2,056 2,361

Asset disposal & fair value adjustments 4 448 463 501 320 250 250 250 250 250 250 250 250 250

Amounts received specifically for new or

upgraded assets2 1,381 1,596 1,357 1,048 750 750 750 750 750 750 750 750 750

Physical resources received free of charge 2 213 158 - - - - - - - - - - -

NET SURPLUS / (DEFICIT)

transferred to Equity Statement 2,205 2,240 2,195 1,424 1,189 1,361 1,473 1,797 1,867 2,280 2,500 3,056 3,361

Changes in revaluation surplus - infrastructure,

property, plant & equipment9 2,686 5,750 (4,127) -

Share of other comprehensive income - joint

ventures and associates19 (7) 12 (7) -

Total Other Comprehensive Income 2,679 5,762 (4,134) - - - - - - - - - -

TOTAL COMPREHENSIVE INCOME 4,884 8,002 (1,939) 1,424 1,189 1,361 1,473 1,797 1,867 2,280 2,500 3,056 3,361

6/02/2013 3:31 PM LTFPv5 Combined I&E



PREPARED 2013

BALANCE SHEET

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12

y/e -> 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

ASSETS Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Current AssetsCash and cash equivalents 5 1,246 1,257 1,266 1,341 1,416 1,491 1,566 1,641 1,716 1,791 1,866 1866 1866

Trade & other receivables 5 2,474 1,769 2,573 2,628 2,683 2,738 2,793 2,838 2,883 2,928 2,973 2,973 2,973

Inventories 5 24 23 19 19 19 19 19 19 19 19 19 19 19

3,744 3,049 3,858 3,988 4,118 4,248 4,378 4,498 4,618 4,738 4,858 4,858 4,858

Non-current Assets held for Sale 20 - Total Current Assets 3,744 3,049 3,858 3,988 4,118 4,248 4,378 4,498 4,618 4,738 4,858 4,858 4,858

Non-current AssetsFinancial Assets 6 241 204 293 293 293 293 293 293 293 293 293 293 293

Equity accounted investments in Council

businesses6 767 847 934 1,034 1,134 1,234 1,334 1,434 1,534 1,634 1,734 1,834 1,934

Infrastructure, Property, Plant & Equipment 7 232,014 238,372 240,994 242,243 244,083 246,383 249,387 252,845 255,308 257,295 258,692 260,095 261,145

Other Non-current Assets 6 5,230 8,234 3,743 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750

Total Non-current Assets 238,252 247,657 245,964 247,320 249,260 251,660 254,764 258,322 260,885 262,972 264,469 265,972 267,122

Total Assets 241,996 250,706 249,822 251,308 253,378 255,908 259,142 262,820 265,503 267,710 269,327 270,830 271,980

LIABILITIES

Current LiabilitiesTrade & Other Payables 8 8,983 8,215 9,104 9,460 9,580 9,700 9,820 9,940 10,060 10,180 10,300 10,300 10,300

Borrowings 8 7,487 4,362 5,168 4,864 5,616 6,654 8,285 10,046 10,742 10,549 9,546 12,994 10,783

Provisions 8 1,235 1,136 989 999 1,009 1,019 1,029 1,029 1,029 1,029 1,029 1,029 1,029

Total Current Liabilities 17,705 13,713 15,261 15,323 16,204 17,373 19,134 21,015 21,830 21,758 20,875 24,322 22,111

Non-current Liabilities

Trade & Other Payables 8 - Borrowings 8 336 5,000 5,292 5,292 5,292 5,292 5,292 5,292 5,292 5,292 5,292 292 292

Provisions 8 568 443 158 158 158 158 158 158 158 158 158 158 158

Liability - Equity accounted Council businesses 8 89 175 53 53 53 53 53 53 53 53 53 53 53

Total Non-current Liabilities 993 5,618 5,503 5,503 5,503 5,503 5,503 5,503 5,503 5,503 5,503 503 503

Total Liabilities 18,698 19,331 20,764 20,826 21,707 22,876 24,637 26,518 27,333 27,261 26,378 24,825 22,614

NET ASSETS 223,298 231,375 229,058 230,482 231,671 233,032 234,505 236,303 238,170 240,449 242,949 246,005 249,366

EQUITY

Accumulated Surplus 123,362 125,536 128,225 129,649 130,838 132,199 133,672 135,470 137,337 139,616 142,116 145,172 148,533

Asset Revaluation Reserves 9 94,735 100,485 96,358 96,358 96,358 96,358 96,358 96,358 96,358 96,358 96,358 96,358 96,358

Other Reserves 9 5,201 5,354 4,475 4,475 4,475 4,475 4,475 4,475 4,475 4,475 4,475 4,475 4,475

Total Council Equity 223,298 231,375 229,058 230,482 231,671 233,032 234,505 236,303 238,170 240,449 242,949 246,005 249,366

6/02/2013 3:31 PM LTFPv5 Bal Sheet



PREPARED 2013

CASH FLOWS FROM OPERATING ACTIVITIES

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12

y/e -> 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Receipts

Rates - general & other 24,411 24,980 28,454 29,717 30,164 30,921 31,386 32,174 32,658 33,478 33,982 34,835 35,359

Fees & other charges 861 1,139 889 965 965 965 965 965 965 965 965 965 965

User Charges 1,348 2,276 1,561 1,070 1,070 1,070 1,070 1,070 1,070 1,070 1,070 1,070 1,070

Other Operating receipts 3,009 3,287 3,525 3,182 3,312 3,389 3,471 3,529 3,451 3,422 3,382 3,399 3,383

Investment receipts 39 26 (28) 85 85 85 85 85 85 85 85 85 85

Grants utilised for operating purposes 3,875 5,081 3,606 3,814 3,814 3,814 3,814 3,814 3,814 3,814 3,814 3,814 3,814

Payments

Employee Costs (11,615) (11,895) (12,209) (12,640) (12,766) (12,958) (13,088) (13,284) (13,417) (13,618) (13,754) (13,960) (14,100)

Materials, Contracts and Other Expenses (14,448) (18,314) (18,524) (17,663) (17,553) (17,663) (17,777) (17,892) (18,013) (18,135) (18,263) (18,393) (18,528)

Finance payments (1,253) (460) (665) (582) (695) (749) (824) (942) (1,068) (1,119) (1,105) (1,032) (944)

Net Cash provided by Operating Activities 11 6,226 6,120 6,609 7,948 8,395 8,874 9,103 9,520 9,545 9,962 10,176 10,783 11,104

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Amounts specifically for new or upgraded

assets1,381 1,596 1,357 1,153 825 825 825 825 825 825 825 825 825

Sale of replaced assets 182 166 501

Sale of surplus assets 472 170 - 320 250 250 250 250 250 250 250 250 250

Other Investment Receipts 51 19 -

Payments

Expenditure on renewal/replacement of assets (7,642) (9,449) (9,453) (8,955) (9,191) (9,938) (10,925) (11,432) (10,469) (10,034) (9,482) (9,535) (9,222)

Expenditure on new/upgraded assets (1,916) (877) (378) (398) (1,030) (1,049) (883) (924) (847) (811) (767) (771) (746)

Loans made to community groups - - (82)

Capital contributed to associated entities (1) - -

Net Cash (used in) Investing Activities (7,472) (8,375) (8,055) (7,880) (9,146) (9,913) (10,734) (11,281) (10,241) (9,770) (9,173) (9,231) (8,893)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Proceeds from Borrowings - 5,000 98

Proceeds from Aged Care Facility deposits - 727 504

Payments

Repayments of Borrowings (222) (111) (147) - - - - - - - - (5,000) -

Repayment of Aged Care Facility deposits (201) - -

Net Cash provided by (or used in) Financing

Activities(423) 5,616 455 - - - - - - - - (5,000) -

Net Increase (Decrease) in cash held (1,669) 3,361 (991) 68 (751) (1,038) (1,631) (1,761) (696) 192 1,003 (3,447) 2,211

Cash & cash equivalents at beginning of period (4,436) (6,105) (2,744) (3,735) (3,667) (4,418) (5,456) (7,087) (8,848) (9,544) (9,351) (8,349) (11,796) Cash & cash equivalents at end of period (6,105) (2,744) (3,735) (3,667) (4,418) (5,456) (7,087) (8,848) (9,544) (9,351) (8,349) (11,796) (9,585)

6/02/2013 3:31 PM LTFPv5 Cashflows

Appendix 2 LTFP Consultation Documents


Adelaide Hills Council is seeking community feedback on its Long Term Financial Plan, which sets Council’s financial targets for the next ten years (2013-2022).

The key points are:

• Council is now consistently operating at breakeven, for the first time since incorporation

• Larger surpluses are planned to pay for $10M of replacement and upgraded infrastructure (especially stormwater Drainage and Community Waste Management Systems, CWMS)

• Rate increases of CPI + 2% are planned in 2015, 2017, 2019 and 2021 (and CPI +1% in other years)

• Over the ten year period Council’s total operating surplus will climb from the $4.6M previously planned to $10.6M, which will pay for the required upgrades without reducing service levels

• The additional surplus will slightly reduce overall borrowings in the long term compared with the existing Plan

• Council is also working to secure extra Commonwealth Grant Funding and improve its own internal efficiency to maximise surpluses. If successful, these changes would reduce the extra rate increases planned

For further information and a copy of the Long Term Financial Plan, please go to Council’s website at www.ahc.sa.gov.au or contact one of our service Centres in Stirling, Gumeracha or Woodside.



COMMUNITY CONSULTATION TEXT

Summary:

When Council adopted the LTFP in its current form in 2010 it did so in the aftermath of three very

difficult years, when operating losses totalled $(7.4)M. Since incorporation Council had focussed on

repaying interest bearing loans whilst containing rate increases and deferring infrastructure renewal.

This had reduced borrowings to record lows, but the asset backlog exceeded $20M and operating

costs had exceeded income to generate losses of $(17.5)M since incorporation.

The LTFP was a response to that position, seeking to stabilise operations and restore a breakeven

position. The LTFP included $77M of infrastructure spending over ten years, with modest operating

surpluses ($4.6M in ten years) to help pay for new assets. Even this required annual rate increases of

CPI+1%, but it was a prudent and measured response to a situation which had taken ten years to

arise.

Three years later, Council has been able to report small surpluses every year, and operating

performance has slightly exceeded the LTFP. Borrowings, however, have increased again to pay for

essential infrastructure renewal. The latest Asset Management Plan shows that, in addition to the

$77M already planned, Council should be investing a further $10M in asset upgrades for stormwater

drainage and CWMS systems. Without this investment, incidents of flooding and waste overflows

are highly likely to increase.

Without grant funding to pay for the upgrades, Council can only fund them through operating

surpluses. Even if it borrows now to pay for the construction, those borrowings still ultimately have

to be repaid. Council is now considering a revised LTFP which generates $10.3M of surpluses in the

next ten years and sees net financial liabilities slightly reduced (although they increase during the

construction phase).

To generate the required surpluses, Council has planned four years (2015, 2017, 2019 and 2021)

when a rate increase of CPI+2% is required. In the meantime, Council is exploring other ways to

achieve the required surpluses by improving internal efficiencies (Business Excellence) and by

securing additional Federal Assistance Grant funding. Success in either of these areas will give

Council the flexibility to contain rate increases In excess of CPI, or to consider other infrastructure

improvements in the future.

Questions & Answers

What is a long term financial plan?

A Council long term financial plan (LTFP) must contain estimated financial statements consistent

with those in Council’s Annual Report for a period of at least ten years. It should include estimates

of the key ratios, operating surplus, net financial liabilities and asset sustainability. This illustrates

the expected long term financial performance of the Council, and hence whether financial

sustainability is being achieved.

Why does Council prepare one?

The Local Government Act requires Council to prepare a long term financial plan as part of its

Strategic Management Plan, and to update it on the same basis. This means that members of the

public are to be a given a reasonable opportunity to be involved in the development and review of

Council’s long term financial plan.

How does Council prepare a long term financial plan?

The long term financial plan is based on a spreadsheet model which projects Council’s future

financial performance based on a very large range of variables applied to its performance in recent

years. Because there are so many variables it is an extremely complicated model. In order to use it

to guide each year’s budget setting process, the variables have been divided into two groups:

• Controllable variables – items that Council can control such as service levels, capital

expenditure, rate increases and wage increases

• Non-controllable variables – items outside Council’s control, such as interest rates, inflation

and growth.

For controllable variables, Council is able to model different levels of activity and increase to see

what effect they have on financial performance. The long term effects of each decision can then be

assessed.

For non-controllable variables, the plan uses reasonable long term estimates which do not change.

In this way the impact of different choices about the controllable variables can be assessed. For

instance, inflation measured by CPI has fluctuated substantially in recent years. Because inflation

works differently on different elements of Council’s income and expense it can quickly and

materially distort the LTFP, especially in its later years.

To overcome the effect of inflation, Council’s LTFP is prepared in “current year” dollars assuming

zero inflation for decision making purposes. (Inflation can then be “switched on” for illustrative and

forecasting purposes if needed). By working in current year dollars and expressing controllable

variables accordingly, Council can plan for rate increases and wage increases according to whether

they are higher, lower or equal to CPI.

What variables does Council plan to control?

The two most important variables are annual rate increases and infrastructure expenditure,

particularly renewing our existing assets (or repairing them) and building new ones. If Council keeps

rate increases low (at or below inflation) then it needs to find other ways to generate surpluses to

pay for infrastructure expenditure. In the short term, however, it means borrowing more, and

hence greater interest costs. During the first quarter of 2012/13, Council’s average borrowings of

$9.87M equalled 17.8 weeks of rate income, up from $9.47M and 17.7 weeks of rates income in

2011/12.

Council has continued to increase its borrowings in recent years to fund asset renewals and reduce

its infrastructure backlog. This was planned in the 2010 LTFP and updated with each budget cycle.

Whilst the LTFP sets an acceptable range of 40%-60% for the Net Financial Liabilities Ratio, it has

remained below 50% so far.

The Asset Management Plan adopted before Christmas 2012 illustrated that Council’s largest asset

categories (roads, stormwater draining and community waste management systems, CWMS) have

all been wearing out faster than they are renewed. Not enough has been spent renewing these

assets and so their average condition has deteriorated.

What are Council’s options?

When the LTFP was adopted in its current form in 2010, Council knew that the high rate increases of

recent years could not be sustained, and planned to limit future increase to CPI +1%. At the same

time, the level of asset backlog to catch up was not fully understood. Based on the information

available, Council planned to spend $76.8M on infrastructure assets between 2013 and 2022. This

was all that Council could afford with rate increases of CPI+1% and without major increases in

borrowings and net financial liabilities.

The latest Asset Management Plan shows that an additional $10.2M of spending is required to bring

existing stormwater drainage and CWMS up to the required capacity. To borrow this sum would

double Council’s loans and hence its interest charge. However, by phasing the additional spending

across ten years and adopting slightly larger rates increases in later years, the extra cost can be met

without permanently increasing borrowings. Alternatively, if Council retains the original planned

asset renewal spend, increased incidents of flooding and waste overflows can be expected.

Various combinations of rate increase and borrowings have been modelled, and the mix adopted in

the LTFP attached is regarded as the best compromise between borrowing and rate increases if

infrastructure is not to fall further into disrepair.

What does the LTFP look like?

The easiest way to illustrate the LTFP is on a graph showing operating surpluses (and deficits) and

net financial liabilities together. The graph actually shows four generations of Council’s LTFP since

2009, and reports actual results since 2006.

The blue line shows Council’s LTFP in 2009, recovering from substantial operating losses in 2007,

2008 and 2009 which totalled $7.4M. Council was not expected to return to surplus until 2012 and

net financial liabilities peaked at $19.2M. Total surplus from 2012-21 was $4.6M generated from

rate increases pegged at CPI+1%.

The yellow line shows the improved position reflected in the 2010 LTFP, returning to surplus a year

earlier and generating a total surplus from 2012-21 of $6.2M, still with rate increases of CPI+1% and

$76.8M of infrastructure spending.

The red dotted line indicates the depressed position forecast when the 2012 budget was adopted,

before the final result for 2011 was known, and when another surplus was not expected until 2014.

Note that forecast net financial liabilities remained at $19.2M or lower in all these scenarios.

The solid red line, based on the latest information, indicates the new LTFP which Council is

considering. It introduces the extra $10.2M of infrastructure expenditure, and increases rates by

CPI+2% in 2015, 2017, 2019 and 2021. In this way the extra infrastructure can be funded without

increasing net financial liabilities beyond $22.4M in 2018, and by the end of 2021 they reduce to

$17.5M, which is actually lower than any of the previous forecasts.

The key to the success of this plan lies in generating responsible operating surpluses, sufficient to

replenish community infrastructure in the long term. Council’s financial history since incorporation

demonstrates the effect of alternative strategies which sought to contain both rate increases and

infrastructure renewals, as well as repay borrowings. In the last three years Council has consistently

produced modest surpluses whilst addressing its asset backlog, but this is not enough to secure long

term financial sustainability.

How can this LTFP be improved upon?

Council is aware that generating surpluses through rate increases above CPI places a further burden

on ratepayers. An alternative way to generate surpluses is to reduce costs (without reducing service

levels) by increasing efficiency. Council has begun a long term programme to improve efficiency in

processes and systems through Business Excellence.

The LTFP incorporates modest efficiency gains to reflect this, but the potential savings are far

greater. If they can be realised, it will be possible to reduce rate increases back to the original

CPI+1% envisaged, or even lower. Until they can be confirmed, however, Council has to plan for

surpluses funded by rates growth to the extent shown.

Council is also making a submission to the current Local Government Grants Commission Review,

aiming to increase its Financial Assistance Grant (FAG) above the minimum level which has been

applied for the last fifteen years. Council faces a unique set of environmental and social

circumstances which comprise a major cost penalty compared with other SA Councils. Besides

unusually high bushfire risk and annual rainfall, the Hills area is penalised by its watershed status and

its evenly dispersed communities.

Equivalent councils interstate enjoy far greater FAG support to meet these operating costs, which in

turn allows them to generate surpluses and maintain their infrastructure in a way that AHC has

struggled to do.


Item: 6.3 Originating Officer: Tim Piper, Director Finance Subject: Procurement & Purchasing Policy File No: 09.63.1 SMP Goal: Goal 5 SMP Key Issue: Effective & Efficient Governance

1. SUMMARY

Council’s Procurement and Purchasing Policy is due for a review. A team of Council Officers have undertaken this review, looking at updating this policy to improve business work flow without reducing probity. Staff are recommending that the revised Procurement & Purchasing Policy as detailed in Attachment 1 of the report be endorsed by the Audit Committee and recommended to Council for adoption.

2. GOVERNANCE � Strategic Management Plan Goal 5: Effective & Efficient Governance � Legislation This policy has been developed pursuant to the requirements of Section 49 of the Local Government Act 1999 to prepare and adopt policies on contracts and tenders including policies on the following: • the contracting out of services; and • competitive tendering and the use of other measures to ensure that services

are delivered cost-effectively; and • the use of local goods and services; and • the sale or disposal of land or other assets. � Sustainability Economic

Social Environmental Governance

Adelaide Hills Council Audit Committee Meeting 11 February 2013 Procurement & Purchasing Policy

� Budget Not applicable � Consultation A working group comprising Ron Chapman (Organisational Excellence Partner), Geoff Hood (Manager Works and Services) and Paul Murphy (Property Officer) was appointed to review the current policy and determine the changes needed to ensure more efficient business flow but maintain probity and create a new draft procurement policy. The draft procurement policy was circulated to all Council Managers for review and then sent to the Management Executive Group for final review.

3. BACKGROUND Council’s Procurement Policy is a requirement under the Local Government Act 1999. As a part of council’s Business Excellence process the current procurement policy was seen to require change to improve business work flow. This policy was submitted to Council at its 11 December 2012 meeting where Council resolved:

That this item be deferred to enable consideration by the Audit Committee prior to further consideration by Council

4. DISCUSSION The main proposed changes in the attached Procurement Policy are as follows: • Monetary values for the various levels of procurement have been increased;

recognising the inflationary reduction in purchasing values over time and allows for the purchasing of goods and services within the typical requirements of council’s day to day business (as listed on page 5 and page 6 of attachment 1).

• Removal of the individual council officer staff delegations list allowing the CEO to set individual officer delegations for amounts below $300,000.

• Allowing any two of the CEO and Council Director’s to approve up to $1,000,000 operational expenditure (see page 7 Sec. 7 of attachment 1).

• It is also proposed to appoint a procurement committee of council to oversee procurement and audit process to ensure probity is maintained.

The LGA’s Guide Procurement Policy has been used as a template for the majority of the Policy.

Adelaide Hills Council Audit Committee Meeting 11 February 2013 Procurement & Purchasing Policy

5. RECOMMENDATION

That the Audit Committee endorses the revised Procurement & Purchasing Policy and recommends it adoption to Council.

6. APPENDIX (1) Draft Procurement and Purchasing Policy

Appendix 1 Draft Procurement and Purchasing Policy

COUNCIL POLICY

PROCUREMENT & PURCHASING

Policy Number SER-10

Responsible Department(s): Finance & Corporate Services

Relevant Delegations: Delegations under the Purchasing Policy

Other Relevant Policies:

Disposal of Land Management Consultants Fraud & Corruption Prevention Code of Conduct for Council Employees Code of Conduct for Elected Members

Relevant Procedure(s): None

Relevant Legislation Local Government Act 1999

Policies and Procedures Superseded by this policy on its Adoption:

Code of Tendering Contracts and Tendering 16 Dec 2003 21 Dec 2004, 9.1.1 Pg 91 FS&P 15 March 2005, Item 9.1.1 Contracts & Tenders 2 June 2009, Item 10.13, 190 21 December 2010, Item10.5, 320 8 February 2011, Item 10.2, 28

Adoption Authority: Council

Date of Adoption:

Minute Reference for Adoption:

Next Review: No later than February 2016, or as required

Procurement & Purchasing Page 2

PROCUREMENT & PURCHASING

1. POLICY OBJECTIVES • To ensure the Adelaide Hills Council is providing a fair, transparent and

accountable process for the provision of services and the purchasing of goods and services

• To achieve the best value for money outcome in an efficient and effective manner

• Making decisions with probity, accountability and transparency • To promote and adopt procurement and purchasing practices which conserve

resources, save energy, minimise waste, protect the environment and are consistent with ecologically sustainable principles.

• Ensuring compliance with all relevant legislation • Appropriately managing risk

2. INTRODUCTION

2.1 In compliance with Section 49 of the Local Government Act 1999 (Act), Council should refer to this policy (Policy) when acquiring goods and services.

2.2 Section 49 of the Act requires Council to prepare and adopt policies on contracts and tenders on:

2.2.1 the contracting out of services; and

2.2.2 competitive tendering and the use of other measures to ensure that services are delivered cost-effectively; and

2.2.3 the use of local goods and services.

2.3 Furthermore, Section 49 (a1) of the Act requires Council to develop and maintain policies, practices and procedures directed towards:

2.3.1 obtaining value in the expenditure of public money; and

2.3.2 providing for ethical and fair treatment of participants; and

2.3.3 ensuring probity, accountability and transparency in all operations.

2.4 This Policy seeks to:

2.4.1 define the methods by which Council can acquire goods and services;

2.4.2 demonstrate accountability and responsibility of Council to ratepayers;

2.4.3 be fair and equitable to all parties involved;

2.4.4 enable all processes to be monitored and recorded; and

2.4.5 ensure that the best possible outcome is achieved for the Council.


2.5 However, this Policy does not cover:

2.5.1 non-procurement expenditure such as sponsorships, grants, funding arrangements, donations and employment contracts; or

2.5.2 the disposal of land and other assets owned by the Council; or

2.5.3 the purchase of land by the Council

Note – Workplace Health and Safety (WHS) must be considered in each stage of the procurement process with reference to the relevant WHS policy and procedure. For example, Hazardous & Dangerous Substances procedure, Manual Handling procedure, Plant & Equipment procedure. Refer to the intranet for the full list of Council’s WHS Policies, Procedures and Safe Operating Procedures.

3. DEFINITIONS

Open Tender – An advertisement providing relevant details of the Tender is placed in one or more suitable newspapers or on line. Select Tender – Suitable Tenderers are prequalified for suitability by appropriate Council Staff prior to being invited to tender for the works. Prequalification – A process where appropriate Council staff obtain and assess relevant information relating to the potential tenderers including but not limited to; previous experience on similar projects, financial capacity, resources, reference checks. Can also be applied to other agencies (e.g. Local Government’s Local Buy procurement, Procurement Australia) where prequalification has already occurred and is acceptable to council’s Procurement Advisory Group.

4. RESPONSIBILITY

Council employees responsible for purchasing goods and services must comply with this policy. It is the responsibility of Council employees involved in the procurement process to understand the meaning and intent of this policy. This policy is to be read in conjunction with the following Council policies:

• Code of Conduct for Council Employees • Code of Conduct for Elected Members • Fraud & Corruption Prevention • Disposal of Land

Appropriate action will be taken for any breaches of this policy including reporting allegations through appropriate channels and, where allegations are substantiated, taking disciplinary action in accordance with Council’s Fraud & Corruption Prevention Policy and the Council’s Codes of Conduct. A “Procurement Advisory Group” of Council shall be formed with a minimum of three members as determined by Council’s Chief Executive Officer. This Advisory Group shall meet as required to undertake decisions as referenced within this document.


In administering this policy employees shall make the following considerations a priority in decision making: ● Whole of life costing and value for money ● Is the product recycled or can it be reused at the end of its life ● Reduce greenhouse gas emissions ● Saves water and/or energy ● Is locally made or recycled ● Protect biodiversity and habitat ● Be non-toxic ● Socially responsible ● Waste prevention

5. SERVICE PROVISION OPTIONS

Council has a responsibility for undertaking works in a manner which provides probity and achieves best value, minimises risks and achieves the Council’s operational and strategic goals. Service provision and purchasing are part of an evolving environment, so service delivery options may need to be varied from time to time by Council. As the nature and scope of work varies considerably, Council has identified the following options for the provision of services.

5.1 Direct Purchasing Direct purchasing may be used for the purchase of:

a) Goods & Services via Petty Cash b) Goods & Services via Corporate Credit Card c) Purchase via Purchase Order of items defined in Councils Prequalified

Contractors / Suppliers list that are deemed to require negotiated purchase and audited annually by Council’s Procurement Advisory Group

5.2 Written Quotations

This process is used for low risk and low value goods or services where suppliers can provide a service to Council. To assure best value three written quotations should be received.

5.3 Open Tendering

Services may be best provided through an open tendering process. This process involves advertising to an open market for supply of goods or services.

5.4 Select Tender

A procurement procedure in which the procuring agency (Council) selects which potential suppliers are invited to submit tenders. This applies to areas where only specialist services are available or there are a limited number of suppliers within the State (an example would be in the Information Technology area). This process would need approval by Council’s Procurement Advisory Group.

5.5 Preferred Contractors / Suppliers Council undertakes works that require ongoing use of supplies of goods and services that are repetitive by nature (an example would be electrical, sign supply etc.) To achieve this supply process a registration of interest with conditions of contract is available on Council’s website for service providers to register an interest in provision of the service. Once assessed by Council’s procurement assessment team as eligible the providers can be given work upon the supply of an order for works less than a certain value. Council shall have a list of preferred contractors / suppliers that is kept up to date that provides details of the reasons for entering into a preferred contract other than those


resulting from a tender process, the name of contractor, the nature of the contract, contract period, review date(s), evidence of WHS policy, Work Cover and Public Liability and any other relevant details.

5.6 Subsidiaries Under the Local Government Act (1999) Council can choose to establish an incorporated body for the delivery of services, or collaborate with other Councils to establish a subsidiary.

5.7 Joint Venture

Council can join with an organisation, Local Government authority, State Government authority or private sector company to deliver a service or undertake a project. If undertaking this process prior approval of Council’s “Procurement Advisory Group” shall be required.

5.8 Use of State Procurement Services / Private Organisations Council can utilise Strategic Alliances where the Council undertakes procurement through contract arrangements already established and administered by other organisations, including: ● LGA Procurement ● G6 Procurement Group ● Procurement Australia ● Strategic Purchasing ● State Government Contracts

6. PURCHASE REQUIREMENTS

The following are the “minimum requirements” desired. Additional criteria can be applied.

6.1 Goods and Services not exceeding $10,000

A supplier shall be chosen using one of the following procurement methods: ● Direct Purchasing (Sec. 5.1) ● Preferred Suppliers (Sec. 5.5) ● Use of Other Organisations’ Procurement services (Sec. 5.8) ● Written Quotations - (Sec. 5.2) ● Open Tendering - (Sec. 5.3)

6.2 Goods and Services with estimated value exceeding $10,000 but not exceeding $100,000 A supplier shall be chosen using one of the following procurement methods: ● Use of Other Organisations’ Procurement services (Sec. 5.8) ● Written Quotations – Three Written Quotations should be requested (Sec. 5.2) ● Open Tendering - (Sec. 5.3) ● Select Tendering - only if approved by Procurement Advisory Group. (Sec. 5.5)

6.3 Supply of Goods & Services exceeding $100,000 A supplier shall be chosen using one of the following procurement methods: ● Use of Other Organisations’ Procurement services (Sec. 5.8) ● Open Tendering - (Sec. 5.3) ● Select Tendering - only if approved by Procurement Advisory Group. (Sec.

5.4)


A Purchase Order shall be provided to the successful tenderer upon award of the contract.

6.4 In all the above cases (sect. 6.1, 6.2, 6.3 above) and for amounts greater than $100,000 the Chief Executive Officer of Council may authorise divergence from the above requirements due to an emergency, sole supplier or for any other cause. In such a case the Chief Executive Office shall approve a “Certificate of Exemption” (C of E) from tendering on the appropriately filled out form which shall be retained as part of Council records.

The above financial limits apply to the estimated value of an individual purchasing commitment. However, where an on-going relationship with a supplier is anticipated (e.g. a Schedule of Rates contract), the annual contract amount must be considered.

All financial limits are exclusive of GST.


The following table summarises the purchase value and purchasing process:

Estimated Value Range

Purchasing Process Purchasing Method

Minimum Tender/Quotation

Period (days) Type of Contract

< $10,000 Goods & Services

No quotation required – purchase direct from supplier

● Direct Purchasing (Sec. 5.1) ● Preferred Suppliers (Sec. 5.5) ● Use of Other Organisations’

Procurement services (Sec. 5.8) ● Written Quotations (Sec. 5.2) ● Open Tendering (Sec. 5.3)

0 Terms and conditions on the back of the purchase order form.

$10,000 to $100,000 Goods & Services

A minimum of three quotations, or Tender Process

● Use of Other Organisations’ Procurement services (Sec. 5.8) ● Written Quotations – Three Written Quotations (Sec. 5.2) ● Open Tendering (Sec. 5.3) ● Select Tendering (Sec. 5.4)

0

Terms and conditions on the back of the purchase order form, and/or Council’s Formal Instrument of Agreement

> $100,000 Goods & Services

Open Tender Process or Select tender

● Use of Other Organisations’ Procurement services (Sec. 5.8) ● Open Tendering (Sec. 5.3) ● Select Tendering (Sec. 5.4)

14

Terms and conditions on the back of the purchase order form, and/or Council’s Formal Instrument of Agreement


7. STAFF DELEGATIONS / AUTHORISATIONS The Chief Executive Officer shall administratively determine staff delegations (authorisation to purchase) levels below a value of $300,000 per officer. The Chief Executive Officer shall have a delegation of up to $500,000. For operational expenditure any two of the Chief Executive Officer and a council director may jointly authorize payment (examples are listed below) up to a value of $1,000,000:

• Scheduled and Budgeted loan repayments, • Budgeted Non-elective services, e.g. Public Liability Insurance & WorkCover • Fortnightly payroll, • Funds transfers between accounts, • Creditor Electronic Funds Transfers

8. CONFIDENTIALITY

All information provided between tenderers and Council shall be treated as confidential information during the contract selection process.

http://teams.ahc.sa.gov.au/finance/Audit Committee/Agendas and Minutes/130211 - 11 February 2013/Item 6.4 - Internal Audit Plan.docx Page 1


Item: 6.4 Originating Officer: Tim Piper Subject: Internal Audit Programme File No: 09.14.1 SMP/Council Policy: Goal 5: Effective and Efficient Governance

1. SUMMARY

This report provides the Audit Committee with information about the proposed Internal Audit Plan that details audit engagements planned within the projected period.

2. GOVERNANCE

� Strategic Management Plan / Council Policy Council has undertaken to maintain an internal audit programme as part of its Risk Management and Corporate Governance. � Sustainability Economic Social Environmental

Governance

3. BACKGROUND The Adelaide Hills Council Internal Audit Plan schedules the proposed activities to be investigated as part of the Internal Audit program for the next three years. It is envisaged that the plan be regularly reviewed and updated to reflect current status and projected activities each year and will be submitted to the Audit Committee for consideration and feedback as key changes are made. The Internal Audit function will also respond to emerging issues arising from Senior Management directives and Audit Committee feedback. The Internal Audit Plan encompasses projects, operational, compliance, strategic, internal control and risk based engagements. It has been developed using the following inputs:

Adelaide Hills Council Audit Committee Meeting 11 February 2013 Internal Audit Programme

Page 2

• Discussion and consultation with Council’s external auditors prior to their 5 year engagement finishing:

• Benchmarking with other South Australian Councils: • Consultation and feedback from Council’s Management Executive Group: • Consideration of previous internal and external audit findings.

4. DISCUSSION

Based on the current internal audit resource and internal audit budget of $25,650, it is considered that no additional funding will be required to undertake the planned activities. However, if the frequency or the quantum of work required increases a review of resource and funding as part of the budget review process will be examined. Internal Audits form a vital part of satisfying Section 125 of the Local Government Act 1999 which requires a Council to have a system of internal controls. Additionally, they have a key function in evaluating risk exposure to Council’s operations, systems and governance. From time to time, it is anticipated that the Internal Audit function will also respond to emerging issues arising from Management Executives’ directives and Audit Committee feedback.

5. RECOMMENDATION That the Audit Committee receive and note the planned Internal Audit Programme for the 2013 to 2016 calendar years.

6. APPENDIX 1. Internal Audit Programme

http://teams.ahc.sa.gov.au/finance/Audit Committee/Agendas and Minutes/130211 - 11 February 2013/Item 6.4 - Internal Audit Plan.docx Page 1

Appendix 1 Internal Audit Programme

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Item: 6.5 Originating Officer: Paul Francis Subject: Interim Audit Management Letter & Response File No: 09.14.1 SMP/Council Policy: Goal 5: Effective & Efficient Governance

1. SUMMARY

The external auditors, Dean Newbery, have written to the Mayor (Appendix 1) with key matters arising as a result of performing the Financial Year Ending June 2012 final audit. Management have provided a response to Dean Newbery (Appendix 2) which is provided for the Audit Committee’s information.

2. BACKGROUND Council’s external Auditors, Dean Newbery, recently attended Council offices to conduct final sample transaction testing and internal control reviews following on from their interim attendance as part of their 2011/12 financial year audit of Adelaide Hills Council.

The matters raised in this Management Letter were discussed with Council’s Administration prior to being issued, as is Dean Newbery’s customary practice. Council’s Management has provided a response to Dean Newbery and this is attached for the Audit Committee’s information.

3. RECOMMENDATION

That the Audit Committee note Management’s response to Dean Newbery’s Management Letter for the financial year ending 30 June 2012.

4. APPENDICES

(1) Dean Newbery & Partners Management Letter – Y/E 30 June 2012 (2) Management’s response to Management Letter – Y/E 30 June 2012

Appendix 1 Dean Newbery & Partners

Management Letter - Y/E 30 June 2012

Appendix 2 Management’s Response to

Management Letter - Y/E 30 June 2012


Item: 6.6 Originating Officer: Paul Francis, Financial Controller Responsible Director: Tim Piper, Director Finance Subject: 2012/13 Budget – Budget Review 1 File No: 07.11.13 SMP Goal: Goal 5: Open, Effective & Efficient Governance SMP Key Issue: 5.4: Financial Responsibility

1. SUMMARY

Under the requirements of the Local Government Act 1999, a Council must undertake a review of its Budget at least four times throughout the financial year, the final review being the actual results for the prior financial year. This review considers actual results for the first quarter ended 30 September 2012, and adjusts capacity for the remainder of the 2012/13 Budget Period accordingly.

2. GOVERNANCE � Strategic Management Plan / Council Policy The Strategic Management Plan recognises the importance of good governance and responsible financial management. � Legislation The undertaking of formal budget reviews is a requirement of the Local Government Act 1999, and the Local Government (Financial Management) Regulations 2011. � Sustainability

Economic Social Environmental Governance

Sustainability indicators and performance measures are included in the attached reports.

Adelaide Hills Council Audit Committee Meeting 11 February 2013 2012/13 Budget – Budget Review 1

� Budget

This report presents the relevant information in the required format, consistent with the adopted financial statements. � Consultation

Not Applicable

3. BACKGROUND Section 9(1)(b) of the Local Government (Financial Management) Regulations 2011 requires quarterly consideration of the Council’s budget for a particular financial year.

4. DISCUSSION The budget review and quarterly reports (Appendix 1) have been prepared in consultation with Directors and Managers to obtain detailed information of each budget area. Budget Review 1 Variations During the first quarter, some items have been identified that require consideration as part of Budget Review 1. Council’s administration has reviewed the 2012/13 budget and proposes an alteration to the Original Budgeted Operating Surplus of $80k by $(24)k unfavourable to show an Adjusted Operating Surplus of $56k. Favourable items: • Grants $285k. Bushfire grants for work done in previous years are due to be

invoiced before the end of 2012 • User Charges $25k New tenancies at AHBTC. • Other Income $23k Workers Compensation bonus was $250k, which was

$17k ahead of the budgeted $233k

Unfavourable items: • Materials, Contract & Other $401k. Previously committed Sport and Rec

projects on grounds that don’t belong to Council $140k, Energy Efficiency Initiative project $60k, Power at AHBTC $21k, maintenance at AHBTC $13k, Infrastructure materials $88k.

A detailed “walkthrough” of BR1 Operating items is disclosed in Appendix 2.

Adelaide Hills Council Audit Committee Meeting 11 February 2013 2012/13 Budget – Budget Review 1

Financial Assistance Grant In June 2012, Council received $816k of the 2012/13 Financial Assistance Grant early. Management suspect that this amount will probably be deducted from the total grant that Council will receive in 2012/13. Until confirmation is available, this adjustment has not been reflected in the Budget Review process. Capital Budget Revisions Additional expenditure of a capital nature has been identified totalling $90k comprising renewals new projects funded by grants, and sale of surplus assets. The most significant element is $70k to accelerate the Stirling Office/Library Fire Protection Upgrades (Stage 2), originally deferred from the 2012/13 budget. Completing stage 2 should ensure that fire fighting water tanks are constructed on site for most of the upcoming Fire Season (planning work is completed, tenders have been obtained and the project is suitable to commence). A full list of BR1 Capital items is in Appendix 3.

5. RECOMMENDATION

That the Budget Variations presented in Budget Review 1 (2012/13) totalling $(24)k, bringing the Adjusted 2012/13 Budget Operating Surplus for the year to $56k, be received and noted.

6. APPENDIX (1) Budget Review 1 – Statutory Financial Statements (2) Budget Review 1 – Detailed Walkthrough (3) Budget Review 1 – Capital Projects List

Appendix 1 Budget Review 1 – Statutory Financial Statements

2011/12

Actuals Notes

2012/13

Original

Budget BR1

2012/13

Adjusted

Budget

$'000 $'000

OPERATING INCOME

28,758 Rates 29,719 (2) 29,717

824 Statutory Charges 965 965

1,320 User Charges 1,045 25 1,070

3,464 Grants and Subsidies 3,182 285 3,467

69 Investment Income 85 85

376 Reimbursements 222 12 234

1,244 Other Income 1,122 23 1,145

267 Joint Ventures

36,322 TOTAL INCOME 36,340 343 36,683

OPERATING EXPENSES

12,061 Employee Costs 12,661 (29) 12,632

16,109 Materials,Contracts & Other Services 15,727 401 16,128

690 Finance Costs 587 (5) 582

6,906 Depreciation 7,285 7,285

35 Joint Ventures

35,801 TOTAL OPERATING EXPENDITURE 36,260 367 36,627

521 NET BUDGETED SURPLUS/ (DEFICIT) 80 (24) 56

BEFORE CAPITAL AMOUNTS

Less: Net Outlays on Existing Assets

9,921

Capital Expenditure on Renewal and Replacement of

Existing Assets 1 10,288 (93) 10,195

(25) Unwind Waste Remediation -

Provision for Waste Remediation - -

(123) Proceeds from Sale of Replaced Assets - -

(6,906) Depreciation (7,285) - (7,285)

2,867 NET OUTLAYS ON EXISTING ASSETS 3,003 (93) 2,910

Less: Net Outlays on new and Upgraded Assets Capital Expenditure on New and Upgraded Assets &

Remediation costs 1 370 676 1,046

(1,357)

Capital Grants and Monetary Contributions for New and

Upgraded Assets (625) (423) (1,048)

(501) Proceeds from Sale of Surplus Assets (250) (70) (320)

(1,858) NET OUTLAYS ON NEW AND UPGRADED ASSETS (505) 183 (322)

Other Comprehensive Income

5,601 Asset Revaluations -

23 Joint Ventures - -

5,624 - - -

Repayment of borrowings

GST Adjustment

(6,112) Net Lending/ (Borrowing) for Financial Year (2,418) (114) (2,532)


BUDGETED FUNDING STATEMENT

2012/13 Adopted Budget

2011/12

Actuals

2012/13

Original

Budget BR1

2012/13

Adjusted

Budget

$'000 $'000

OPERATING INCOME

28,758 Rates 29,719 (2) 29,717

824 Statutory Charges 965 - 965

1,320 User Charges 1,045 25 1,070


69 Investment Income 85 - 85

376 Reimbursements 222 12 234

1,244 Other Income 1,122 23 1,145

267 Joint Ventures

36,322 TOTAL INCOME 36,340 343 36,683

OPERATING EXPENSES

12,061 Employee Costs 12,661 (29) 12,632

16,109 Materials, Contractual & Other Services 15,727 401 16,128

690 Finance Costs 587 (5) 582

6,906 Depreciation 7,285 - 7,285

35 Joint Ventures

35,801 TOTAL OPERATING EXPENDITURE 36,260 367 36,627

521 OPERATING SURPLUS/ (DEFICIT) 80 (24) 56

123 Asset Disposal and Fair value adj

1,357 Amounts received for new/upgraded assets 625 423 1,048

- Physical resources received free of charge

2,001 NET BUDGETED SURPLUS/ (DEFICIT) 705 399 1,104

Other Comprehensive Income

(5,601) Asset Revaluation - - -

(23) Joint ventures

(5,624) - - -

(3,623) TOTAL COMPREHENSIVE INCOME 705 399 1,104


BUDGETED COMPREHENSIVE INCOME STATEMENT


2011/12

Actuals

2012/13 Original

Budget BR1

2012/13

Adjusted

Budget

$'000 $'000

CURRENT ASSETS

1,266 Cash and cash equivalents 1,407 1,407

2,573 Trade & other receivables 1,479 766 2,245

19 Inventories 23 23

3,858 TOTAL CURRENT ASSETS 2,909 766 3,675

NON-CURRENT ASSETS

240,993 Infrastructure, Property, Plant & Equipment 252,788 - 252,788

3,586 Financial Assets 1,051 1,051

244,579 TOTAL NON-CURRENT ASSETS 253,839 - 253,839

248,437 TOTAL ASSETS 256,748 766 257,514

CURRENT LIABILITIES

5,168 Borrowings 5,455 5,455

9,104 Trade & Other Payables 8,936 367 9,303

925 Short term Provisions 1,456 1,456

15,197 TOTAL CURRENT LIABILITIES 15,847 367 16,214

NON-CURRENT LIABILITIES

5,292 Long- term Borrowings 5,000 5,000

196 Long- term Provisions 645 645

5,488 TOTAL NON-CURRENT LIABILITIES 5,645 - 5,645

20,685 TOTAL LIABILITIES 21,492 367 21,859

227,752 NET ASSETS 235,256 399 235,655

EQUITY

128,393 Accumulated Surplus 126,917 399 127,316

94,884 Asset Revaluation Reserve 102,985 - 102,985

0 Reserves beginning of year - -

0 Transfers to Reserves - -

0 Transfers from Reserves - -

4,475 Reserves at end of year 5,354 5,354

227,752 TOTAL EQUITY 235,256 399 235,655


BUDGETED BALANCE SHEET


2011/12

Actuals

2012/13 Original

Budget BR1

2012/13

Adjusted

Budget

$'000 CASH FLOWS FROM OPERATING ACTIVITIES $'000 $'000 $'000

RECEIPTS

28,758 Rates 29,719 (2) 29,717

824 Statutory Charges 965 - 965

1,320 User Charges 1,045 25 1,070


Interest Received 85 - 85

376 Reimbursements and Donations 222 12 234

1,244 Other 1,122 23 1,145

2,730 GST Adj

38,716 TOTAL RECEIPTS 36,340 343 36,683

PAYMENTS

(12,061) Employee Costs (12,661) 29 (12,632)

(16,109) Materials, Contracts & Other Services (15,727) (401) (16,128)

(690) Finance costs (587) 5 (582)

(3,683) GST Adj

(32,543) TOTAL PAYMENTS (28,975) (367) (29,342)

6,173 NET CASH USED IN OPERATING ACTIVITIES 7,365 (24) 7,341

CASH FLOWS FROM FINANCING ACTIVITIES

RECEIPTS

601 Proceeds from Borrowings -

PAYMENTS

- Repayment from Borrowings -

601 NET CASH USED IN FINANCING ACTIVITIES - - -

CASH FLOWS FROM INVESTING ACTIVITIES

RECEIPTS

1760 Grants for new or upgraded assets 625 423 1,048

501 Sale of replaced/ new assets & other investment 320 70 390

65 Repayment of loans to Community Groups

PAYMENTS

(9,921) Expenditure on new/ upgraded assets (370) (676) (1,046)

(147) Expenditure on renewal/ replacement of assets (10,288) 93 (7,695)

(23) Contribution to Associated entities - - -

(7,765) NET CASH USED IN INVESTING ACTIVITIES (9,713) (90) (7,303)

(991) NET INCREASE (DECREASE) IN CASH HELD (2,348) (114) 38

(2,743) CASH AT BEGINNING OF YEAR (3,734) (3,734)

(3,734) CASH AT END OF YEAR (6,082) (114) (3,696)



BUDGETED CASHFLOW STATEMENT

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Appendix 2 Budget Review 1 – Detailed Walkthrough

Budget Review 1 - Operating items

Expenditure Type

Amount

$000 Department

Maintenance - Buildings : Electrical -15 Asset Management

Maintenance - Buildings : Asbestos -10 Asset Management

Maintenance - Buildings : Other Contractual Services -10 Asset Management

Maintenance - Buildings : Other Contractual Services -8 Asset Management

Legal Expenses : Legal Fees -7 Asset Management

Maintenance - Buildings : Pest Treatment -5 Asset Management

Power : Other Materials 5 Asset Management

Maintenance - Buildings : Other Contractual Services 7 Asset Management

Maintenance - Buildings : Other Contractual Services 10 Asset Management

Power : Other Materials 16 Asset Management

-17

Contractors : Contractor Payments -80 Community Services

Grant - Commonwealth : Home and Community Care Subsidies -15 Community Services

Social Support Prog Coord : Salaries - Ordinary Time -10 Community Services

Salaries and Wages - Ordi : Salaries - Ordinary Time -9 Community Services

Grant - Commonwealth : Home and Community Care Subsidies -8 Community Services

Grant - State Government : Home and Community Care Subsidies -6 Community Services

Fees over 65`s : Other Revenue -6 Community Services

HACC - Minor Capital Expe : Other Materials -6 Community Services

Client Contributions : HACC Client Contributions 6 Community Services

Program Development : Other Contractual Services 6 Community Services

Cleaning - over 65`s : Contractor Payments 11 Community Services

Social Support Prog Coord : Reimbursements 12 Community Services

Social Support Prog Coord : Other Expenditure - Miscellaneous 13 Community Services

Over 65`s : Contractor Payments 92 Community Services

0

Rent Received - AHBTC : Other Fees -28 Director`s Office - Services

Other Costs Recovered : Reimbursements -12 Director`s Office - Services

Maintenance - Furniture & : Other Contractual Services -9 Director`s Office - Services

Maintenance - Buildings : Other Contractual Services 13 Director`s Office - Services

Power : Other Materials 21 Director`s Office - Services

Sporting Facilities - Gen : Contractor Payments (Capex to Opex) 140 Director`s Office - Services

126

Workers Compensation Bonu : Insurance Bonus -17 Financial Management

-17

Adelaide Hills Bushfire R : Other Operating Grants -240 Health & Regulatory Services

Impounding - Dogs : Materials - Direct Purchase 5 Health & Regulatory Services

Energy & Greenhouse Gas R : Other Contractual Services 60 Health & Regulatory Services

-175

Storage : Other Contractual Services -5 Information Services

ICT Systems Support : Contractor Payments 5 Information Services

Salaries and Wages - Ordi : Salaries - Ordinary Time 10 Information Services

10

Library Stock : Fees Other 9 Library Services

9

Maintenance - Buildings : Contractor Payments 6 Works Services

Existing Domestic Waste C : Other Contractual Services 10 Works Services

Contractor Fee : Other Contractual Services 12 Works Services

Maintenance : Materials - Direct Purchase 60 Works Services

88

24

Appendix 3 Budget Review 1 – Capital Projects List

1.

Budget Review Item

New/

Renewal

Addition/

Removal Expense RevenueAyers Hill Roundabout (co-share Blackspot funding) New Addition 526,000 -368,000Station Road Woodside Boundary Issue (inc design) Renewal Addition 35,000Merchants Road Culvert Collapse Renewal Addition 30,000Stirling Office/Library Fire Protection Upgrades (Stage 2) New Addition 70,000Heathfield High - Longwood Rd Bus Park Bays (co-share with school) New Addition 80,000 -55,000Buckleys Road Lobethal Reseal - defer Renewal Removal -25,000 Deferred to afford Ayers Hill RoundaboutCWMS Woodside Line Renewal - Defer construction to 13/14 Renewal Removal -90,000 Deferred to afford Ayers Hill RoundaboutCWMS Kersbrook Line Renewal - Defer construction to 13/14 Renewal Removal -70,000 Deferred to afford Ayers Hill Roundabout

Other Playground Works - Various Renewal Addition 10,000

Increase to reflect the true amount that should have been carried

forward from 2011-12.

Bridgewater Institute Playground - equipment safety upgrade Renewal Addition 11,000 Increase to reflect the true carry forward requirement from 2011-12.

Footbridge Mill Rd Lobethal Renewal Addition 5,500 To replace damaged footbridgeNew 676,000 -423,000Renewal -93,500

Sale of Unmade Road Reserves -70,000

582,500 -493,000

Net Cost 89,500

ADELAIDE HILLS COUNCIL AUDIT COMMITTEE MEETING Monday 11 February 2013

CONFIDENTIAL AGENDA BUSINESS ITEM Item: 7.1 Originating Officer: Tim Piper, Director Finance Subject: External Audit Services, Contract No. 15/13 SMP Goal: Goal 5: Open, Effective and Efficient Governance

SMP Key Issue: 5.4 Financial Responsibility

1. External Audit Services, Contract No. 15/13 – Exclusion of the Public

Moved S/-

Pursuant to Section 90(2) and (3)(k) of the Local Government Act 1999, an order be made that the public, with the exception of appropriate Council staff – CEO Andrew Aitken, Director Finance Tim Piper and Financial Controller Paul Francis be excluded from attendance at the meeting in order to receive, discuss or consider in confidence any information or matter relating to Section 90(3):

(k) tenders for the supply of goods, the provision of services or the

carrying out of works;

Adelaide Hills Council Audit Committee Meeting 11 February 2013 External Audit Services, Contract No 15/13

Page 4

3. External Audit Services, Contract No. 15/13 – Period of Confidentiality

Moved S/-

That having considered this matter in confidence under section 90(2) and 90 (3)(k) of the Local Government Act 1999, the Council, pursuant to section 91(7) of the Local Government Act 1999, orders that the documents, reports and minutes pertaining to this matter, including discussions and considerations, be retained in confidence until the tender is finalised, but not longer than 12 months, pursuant to section 91(9). That, pursuant to section 91(9)(c) of the Local Government Act 1999, the Chief Executive Officer be authorised to release documents at the conclusion of the period of confidentiality.

AUDIT COMMITTEE NOTICE OF MEETING...2013/02/11 · File No: 09.14.1 SMP: Goal 5: Open Effective and...

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