for the Events Tourism and Governance Committee Meeting€¦ · RECOMMENDATION It is recommended...

783

Adopted Report for the

Events Tourism and Governance Committee Meeting

held on

Thursday 21 November 2019

at

2pm

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

783rd Council Meeting 26 November 2019 2 Events Tourism And Governance Committee Meeting 21 November 2019 Adopted Report

Index

Adopted Report

Events Tourism and Governance Committee Meeting

Thursday, 21 November 2019

Item Direct. File Page Subject

1 OCOO LG115/1355/01/2019(P1) 4 Events Tourism and Governance Committee Action List and Forward Planning Schedule

2 OCOO LG964/06/20/03/CF(P1) 5 Audit Committee Chair Annual Report 2018-19

3 OS PN88908/16(P1) 35 Proposed Management Arrangements For a Minor Area of Tallebudgera Creek Conservation Park (Lot 1 on WD804791) to address an Historic Anomaly Relating to The Grant of Private Access Rights

4 OS PN198105/856(P1) 45 Potential Disposal of Council Freehold Lot 8 on BUP103758, 'Cavill Park', 46 Cavill Avenue Surfers Paradise

Closed Session

5 OCOO CS105/274/2019(P1) 51 Gold Coast Marathon (2020 and 21)

General Business

KEY: OCEO - Office of the Chief Executive Officer OCOO Office of the Chief Operating Officer EPE - Economy, Planning and Environment OS - Organisational Services LC - Lifestyle and Community TI - Transport and Infrastructure WW - Water and Waste

783rd Council Meeting 26 November 2019 3 Events Tourism And Governance Committee Meeting 21 November 2019 Adopted Report ADOPTED BY COUNCIL 26 NOVEMBER 2019 RESOLUTION G19.1126.022 moved Cr La Castra seconded Cr PC Young That the Report of the Events, Tourism and Governance Committee Recommendations of Thursday, 21 November 2019, numbered ETG19.1121.001 to ETG19.1121.005, be adopted with the exception of Recommendation Number ETG19.1121.002 which was specifically resolved.

CARRIED

ATTENDANCE Cr R La Castra (Chairperson) Cr P C Young Cr D Gates Cr W M A Owen-Jones Cr K L Boulton Cr P A Taylor Cr D I McDonald Cr G M O'Neill Cr Baildon visitor Mr A J McCabe Acting Chief Executive Officer Mr G Mather Acting Director Organisational Services Mr B Turner Chairperson Audit Committee APOLOGY / LEAVE OF ABSENCE Nil PRESENTATIONS Item 2 Audit Committee Chair Annual Report 2018-19 2pm

Bill Turner, Chairperson Audit Committee

783rd Council Meeting 26 November 2019 4 Events Tourism And Governance Committee Meeting 21 November 2019 Adopted Report ITEM 1 OFFICE OF THE CHIEF OPERATING OFFICER EVENTS TOURISM AND GOVERNANCE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE LG115/1328/01/2019(P1)

Item Action Officer &/or Branch

Action/Previous Resolution

(784) Events, Tourism and Governance Committee 3 December 2019

Controlled Entity Policy Office of the Chief Executive Officer

Information Management Policy and Information Privacy Policy

Organisational Services

City Operational Plan 2019-20: Performance Report Quarter One

Office of the Chief Executive Officer

Audit Committee Composition Office of the Chief Operating Officer

Corporate Structure Report Office of the Chief Executive Officer

Confidential Report

Olympics 2032 Update Office of the Chief Executive Officer

Presentation Only

Strategic Review of Fleet Services Organisational Services Presentation Only

RECOMMENDATION It is recommended that Council resolves as follows: That the list of proposed Agenda Items for the Events, Tourism and Governance Committee be noted. Authorised by:

Joe McCabe TRACKS REF: # 54648256 Chief Operating Officer COMMITTEE RECOMMENDATION ETG19.1121.001 moved Cr Owen-Jones seconded Cr Boulton That the list of proposed Agenda Items for the Events, Tourism and Governance Committee be noted.

CARRIED


ITEM 2 OFFICE OF THE CHIEF OPERATING OFFICER AUDIT COMMITTEE CHAIR ANNUAL REPORT 2018-19 LG964/06/20/03/CF(P1) Refer attachments A and B 1 BASIS FOR CONFIDENTIALITY

Not Applicable. 2 EXECUTIVE SUMMARY

The Committee considers that 2018-19 was a productive year in terms of contributing to improvements in the Council’s financial management, reporting and internal control environment. Notwithstanding those improvements, there are two significant areas where still further work is required including:

management of the infrastructure charges register and the timing of recognition of associated revenue. Councillors will recall that, during 2017-18, there were audit concerns regarding the recognition, timing and amount of revenue in relation to infrastructure charges. During 2018-19, considerable resources were devoted to analysis of items on the register and follow up of outstanding amounts. Whilst significant improvement has been noted, work is still required to establish and/or enhance formal processes for management of, and reporting on, items remaining on the register; and

IT controls around the Council’s Pathways system which were identified as part of the Internal Audit Unit’s “Focus on Fundamentals” audit program. Notwithstanding the Unit’s findings, later QAO testing did not identify any issues of concern.

In addition to these matters, QAO also rated as a Significant Deficiency, an issue in relation to the timing of recognition of revenue associated with assets contributed by developers which resulted from a mismatch of dates between the Council recognising the revenue and assuming responsibility for maintenance of the asset in question. This did not involve any loss of revenue to the Council but rather the time of recognition. This matter was resolved at the conclusion of the financial year but will be monitored going forward.

From the Committee’s perspective, reconciliation of data between the Pathways System and Council’s SAP system following implementation of the former system also continues to be an issue. Whilst data for both systems to date is reconciled in total (following identification of known issues), issues remain in relation to the reconciliation between the systems at a point in time and between categories within the systems. The Council and Infor, the software supplier, have agreed to engage an independent party to review and establish whether changes to the software should be pursued or whether the Council will have to adopt resource intensive “work arounds” to address the issues. It is anticipated that this matter will be resolved during 2019-20.

The Committee also noted that there had been some improvement in the timeliness of implementation of outstanding audit recommendations in relation to internal controls and will continue to closely monitor management responses particularly those which have remained outstanding for some time.

In addition, the Committee will also give detailed consideration to findings outlined in QAO performance audits in terms of their relevance to the City and to opportunities for business improvements and compliance requirements. This is particularly so given the outcomes of the Auditor-General’s Reports to Parliament in relation to Cyber Security and the Sustainability of Local Government Services.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) In relation to financial reporting, the Committee was pleased to note that, following encouragement by the Committee, the Council’s financial statements for 2018-19 were completed approximately 3 weeks earlier than in 2017-18 and that they were again provided with an unmodified audit opinion by the QAO. In addition, the Council’s 2018-19 financial sustainability statements were provided with an unmodified opinion with the QAO continuing to assess the Council’s long term financial sustainability as Moderate Risk. In this regard, the Committee noted that the operating surplus ratio for 2018-19 had improved due to the cessation of one off expenditures associated with the Commonwealth Games and the second stage of the light rail in 2017-18. Queensland Treasury Corporation (QTC) has also improved its rating of the Council to Sound Risk with a Positive Outlook.

While the Committee gave particular emphasis to the above matters, the Committee also exercised oversight and provided input, where appropriate, to other financial reporting matters including:

the effects of adopting new accounting standards and preparations for adoption of further changes in 2019-20;

completion of interim valuations of the City’s assets and planning for a comprehensive valuation of the Roads, Bridges and Major Culverts asset class in 2019-20;

review and simplification of notes to the financial statements; review of the process for identification and reporting of related party transactions

including identification of, and reporting in relation to, associated entities; review of treatment of assets held for sale and contingent liabilities; and preparation of the financial statements of controlled entities. The Committee noted

that unmodified (emphasis of matter) audit opinions were ultimately issued in relation to the financial statements of four of Council’s five controlled entities at the time of writing this report. The audit of Connecting Southern Gold Coast Ltd had not yet been finalised. The Committee expressed concerns in relation to issues identified during final audits at HOTA Gold Coast Pty Ltd and Connecting Southern Gold Coast Ltd and will be meeting with representatives of HOTA Gold Coast Pty Ltd at the Committee’s November meeting to consider plans for addressing the issues identified.

In addition to the above financial reporting matters, the Committee continued to exercise broad oversight of other key matters set out in its Charter including:

risk identification, assessment and management issues; conduct of internal audits and the implementation of relevant recommendations. The

Committee noted that the planned program of audits was largely completed although the outcomes remained varied. Given the demands on the Internal Audit Unit for assistance with several ad hoc and complex matters and projects, the Committee considers that the Unit has performed well;

fraud and corruption risk assessment, management and control; the outcomes of QAO performance audits; legislative amendments of relevance to the City; corporate governance matters including performance reporting; procurement activities; and legislative, regulatory and policy compliance.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) Finally, the Committee noted that during 2018-19, QAO undertook a performance audit focused on the management of local government rates, fees and charges. Five councils (excluding the City of Gold Coast) were selected for detailed analysis of their rating practices including:

compliance with legislative requirements; robustness and transparency of the processes used to set rates and charges; and effectiveness of administering rates and charges.

The report on the audit was tabled in Parliament in June 2018 and included a number of findings and recommendations including that Councils:

document the basis for their forecasts of financial sustainability; implement appropriate community engagement process to strengthen community

understanding of and input to rates decisions; implement appropriate costing models to ensure a clear understanding of the cost of

delivering services; publish a hardship policy to assist ratepayers in seeking concessions; ensure that all budget documents and resolutions comply with all requirements of the

Local Government Act; and provide appropriate training to staff in this area including better practice debt

collection. The Committee has noted the Council’s response to the recommendations contained in the report which indicated general agreement with the recommendations and that Council was well placed in relation to those recommendations. For 2019-20, the Committee recognises the need for further enhancement of the internal control environment and will again place further emphasis on various internal control, risk and financial reporting matters including:

enhancement of policies and procedures for management of the infrastructure charges register including clear guidelines for recognition of related revenue;

detailed follow up of outstanding audit matters relating to internal controls particularly those surrounding the SAP system;

reconciliations between the Pathways system and SAP; implication of further legislative amendments impacting on local government; continued simplification of the notes to the financial statements; the valuation activity associated with the Roads, Bridges and Major Culverts class of

infrastructure; asset valuation methodologies and the need for better, detailed and more

comprehensive peer review; appropriate implementation of the new accounting standards and their implications for

the City; risk management including the outcomes of the various reviews in relation to location

of function, risk appetite and approach; cyber resilience; activities supporting the transition from the 3 events based entities to MEGC;


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1)

reporting of related party transactions; development of a policy for controlled entities; outcomes of the reviews into corporate governance and procurement governance

including any recommendations; monitoring of policies, processes and activities designed to avoid fraud and

corruption; and review of the Committee’s Charter in the light of the above matters.

In summary, the Committee considers that it has continued to meet the obligations of its Charter during 2018-19 however remains aware that additional work remains to be undertaken in 2019-20 to further enhance the Council’s internal control framework.

3 PURPOSE OF REPORT

The Audit Committee Chair’s annual report is designed to provide all Councillors with a summary of the responsibilities, work, operations and deliberations of the Audit Committee for the 2018-19 meeting cycle. The report is also designed to inform Council of any significant relevant issues and/or matters which were addressed or which will be the focus of the Committee’s attention during 2019-20. The report is also designed to bring to Councillors’ attention, any relevant governance or financial management matters arising within the wider local government environment.

4 PREVIOUS RESOLUTIONS

GA15.1209.019 in part That the annual report of the Audit Committee Chairperson is noted. 5 THE COMMITTEE

5.1 Introduction

The Local Government Act 2009 (Act) requires all large local governments to establish an audit committee to:

monitor and review the - (i) integrity of financial documents; (ii) internal audit function; and (iii) effectiveness and objectivity of the local government’s internal auditors; and

make recommendations to the local government about any matters that the audit committee considers need action or improvement.

Notwithstanding the above obligations, The City of Gold Coast’s Audit Committee (Audit Committee) has a much broader charter in relation to financial and risk management, fraud and corruption control, governance and internal control and legislative and policy compliance.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) The Committee is an advisory committee of Council currently consisting of two (2) councillors and four (4) independent external members charged with providing assurance, oversight and advice to Council and the Chief Executive Officer in relation to the above accountabilities for the City of Gold Coast and its controlled entities. Council’s Audit Committee represents a vital part of good governance practice. This report documents the Committee’s work consistent with the above accountabilities and its proposed work for 2019-20.

5.2 Membership

The Local Government Regulation 2012 (Regulation) requires an audit committee to consist of between 3 and 6 members and stipulates that 2 of the members must be councillors.

The current members of the Audit Committee as at 1 July 2019 were:

Councillor William Owen-Jones Councillor Glenn Tozer Bill Turner (independent Chair) Geoff King (independent member) Mitchell Petrie (independent member) Kerry Phillips (independent member)

Mr Turner has extensive senior financial, audit, probity and risk management experience within the public service particularly in infrastructure and being a resident of the Gold Coast brings valuable local knowledge and insights to Committee discussions. Mr Turner’s current term of appointment as Chair of the Committee will conclude on 31 December 2019.

In a separate report to Council, it will be recommended that Mr Mitchell Petrie’s appointment as a member be extended until 31 December 2021 and that he be appointed as the next Audit Committee Chair for a period of two years commencing on 1 January 2020. Mr Petrie, who is a Gold Coast resident, was previously an audit assurance partner with KPMG and has extensive audit, risk management and governance experience and knowledge with a wide range of organisations including state and local government bodies.

The above report will also recommend that Mr Turner’s appointment as an independent member of the Committee be extended until 31 December 2020 to achieve an effective transition and also that the appointment of Mr Geoff King as an independent member be extended until 31 December 2022. Mr King has extensive experience in audit, risk management and governance, with particular emphasis on information and communication technology, across a diverse range of industries in the private and public sectors including local governments.

Ms Kerry Phillips was appointed to the Committee as an independent member effective from 1 July 2018. Ms Phillips has had highly relevant experience with a wide range of local government bodies both as an employee and audit committee member and has had an extensive involvement with professional accounting bodies.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) The Committee also values highly the continuing and active participation and input of Councillor William Owen-Jones and Councillor Glenn Tozer who also contribute to the Committee’s understanding and appreciation of the Council’s objectives and perspectives. Both Councillors also have significant financial accounting and financial management experience which is highly relevant to the work of the Committee and the matters under consideration. 5.3 Committee meetings

The Audit Committee met six times in relation to the 2018-19 reporting cycle as follows:

# Date Meeting

1 26 November 2018 Regular Meeting

2 25 February 2019 Regular Meeting

3 21 May 2019 Regular Meeting plus Annual Planning Workshop

4 22 July 2019 Regular Meeting

5 26 August 2019 Draft Financial Statements for 2018-19

6 23 September 2019 Final Financial Statements for 2018-19

Attendance by members at meetings and workshops was as follows:

Member Meetings and workshops

held

Meetings and workshops attended

Councillor William Owen-Jones 6 6

Councillor Glenn Tozer 6 5

Mr Bill Turner, Chair and independent member

6 6

Mr Geoff King, independent member 6 6

Mr Mitchell Petrie, independent member 6 6

Ms Kerry Phillips, independent member 6 6

In addition to the members of the Committee, the Chief Executive Officer (CEO) Mr Dale Dickson, who under the Act cannot be a member of the Committee, is a standing invitee and regular attendee. The Committee very much appreciates the time Mr Dickson makes available to provide valuable insights into corporate directions and current and emerging issues. Other management and staff are also invited to attend meetings as required.

Council’s Internal Audit function is represented at Committee meetings by Council’s Manager Corporate Assurance, Mr Grant Mather, Executive Coordinator Internal Audit, Ms Karen Farquhar and other internal audit staff as required.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) Council’s Chief Operating Officer, Mr Joe McCabe, Manager Corporate Finance, Mr John Blair and other Corporate Finance staff also attend Committee meetings on a regular basis, particularly those meetings where financial statements, financial management and internal and external audit matters are discussed. Representatives of the Queensland Audit Office (QAO) are invited to attend meetings or part thereof and contribute commentary and background to issues where relevant and appropriate. It is a responsibility of the Committee to undertake appropriate liaison with the QAO on matters raised or arising from their audit. The Committee also undertakes a closed session with only representatives of the QAO present to allow a free and open exchange of views concerning the performance of the City of Gold Coast in relation to audit and financial management and broader corporate governance issues. This year’s session did not raise any issues of concern but did inform the Committee of future areas of emphasis for the QAO.

The Committee has continued to take a strategic focus to the conduct of its responsibilities and operations via a Forward Meeting Schedule and review cycle which ensures that over the course of the Council term, all elements outlined in the Audit Committee Charter are addressed.

5.4 Responsibilities

The Audit Committee is governed by the Council endorsed Audit Committee Policy (Charter) which is reviewed and updated regularly by the Committee with any proposed amendments subject to Council endorsement.

As indicated in 5.1 above, the Charter imposes greater responsibilities on the Audit Committee than those defined in the Local Government Act which is consistent with Council’s intent to utilise the Committee as a broader governance tool rather than a just legislative compliance tool.

The oversight responsibilities of the Committee are set out in the Audit Committee Charter and include the key matters set out in Section 6 below. (More detail concerning these key responsibilities is included in the Charter which is published on Council’s website http://www.goldcoast.qld.gov.au/documents/bf/Audit_Committee_Policy.pdf)

6. THE COMMITTEE’S ACTIVITIES DURING 2018-19

6.1 Financial statements and reporting

The Audit Committee is required under its Charter and in accordance with the Local Government Act to review the financial statements of Council and all its controlled entities including City of Gold Coast Insurance Company Ltd, HOTA Gold Coast Pty Ltd and the three “events based” entities:

I. Surfers Paradise Alliance Ltd; II. Broadbeach Alliance Ltd and III. Connecting Southern Gold Coast Ltd

NB Note that the Council, Committee and QAO have previously agreed that Bleached Arts Ltd is not a controlled entity. (Although Bleached Arts Ltd remains an associated entity for the purpose of reporting of related party transactions, a review of beneficial entities has not identified any further associated entities for this purpose).


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) For some time, the Committee has been encouraging management to bring forward completion of the financial statement process and in this context, the Committee was pleased to note that the City’s financial statements were completed and signed by the QAO several weeks earlier.

As has been the usual practice, the Committee conducted its initial review of the Council’s financial statements and accompanying notes including consideration of issues such as the presentation of certain transactions and/or items, processes for valuation of assets, the implications of new or revised accounting standards and their implementation and the potential for rationalisation of the notes accompanying the statements.

As part of their audit of the Council’s financial statements, QAO did however refer to the following matters as Significant Deficiencies:

(a) the status of the infrastructure charges register.

As Councillors would be aware, the status of the infrastructure charges register was the subject of audit and Committee concern last financial year. The register records details of all infrastructure charges attributable to approved developments with charges becoming payable once the development has occurred in accordance with the development application and approval.

Extensive work was undertaken towards the end of 2018-19 (but earlier than in 2017-18) to analyse the status of the various records. Although the analysis revealed that most revenue had been appropriately recognised and accounted for, this was again a time consuming and resource intensive exercise.

Whilst the City has devoted considerable resources to improving the management of the register including the collection of charges during 2018-19, QAO continues to assess this matter as a Significant Deficiency and it is clear that still further work is required to establish documented processes, activities and relevant reports together with formal policies around the timing and recognition of related revenue.

The Committee will again closely monitor progress in this matter during 2019-20.

(b) IT controls around the Pathways system

Deficiencies in IT controls around the Pathways system were identified in an audit conducted as part of the Internal Audit Unit’s “Focus on Fundamentals” program. Although further QAO testing did not identify any issues, the Committee was disappointed that learnings from the implementation of SAP systems did not appear to have been adopted when implementing Pathways. The Committee will focus on this matter during 2019-20 and QAO will also undertake further testing ensure that corrective actions are operating properly.

(c) the timing of recognition of revenue arising from contributed assets

As part of their audit, QAO found that in some cases, there was a mismatch between the time of recognition of revenue in relation to a contributed asset and the time at which the asset became “on maintenance”, that is, the time at which Council accepted responsibility for maintenance of the asset. Although all revenue over the years was accounted for, some revenue was incorrectly attributed to relevant financial years. Management has now resolved this issue however the Committee and QAO will continue to monitor this matter including the mitigating processes adopted.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) Other matters

The financial year 2018-19 did not include a full revaluation of any of the City’s asset classes however the values of all classes were reviewed in the light of movements in relevant indices and current contract rates. In this context, the Committee closely reviewed indexation methods and calculations and format of reports relating to all asset classes.

In addition to the above matters, the Committee’s focussed on various matters relating to the preparation of financial statements including:

review of land valuations by the State Valuation Service; planning and preparation for a full valuation in 2019-20 of the Roads, Bridges and

Major Culverts class which is a major component of the Council’s infrastructure assets;

categorisation of land/buildings held for sale (including the Bruce Bishop car park); issues relating to reconciliation between SAP and the Pathways system. Although the

Committee is satisfied that reconciliations are being undertaken, they involve significant work arounds. The Committee is aware that management is working with the software supplier to establish whether system upgrades can be undertaken to automate the process and will closely monitor this matter during 2019-20;

consideration of various accounting estimates, assumptions and judgements; continuing simplification of the notes to the accounts; the transition to MEGC and the planned termination of the 3 event based entities; reporting of related party transactions including consistency with reporting by

controlled entities and an associated entity (Bleached Arts Ltd); consideration of planning for future accounting standard changes. Council’s financial

statements are required to be prepared in accordance with appropriate legislation and accounting standards. The primary changes in standards relate to the treatment of leases and timing of recognition of revenue; and

other matters raised by the QAO as part of their audit.

The draft financial statements for 2018-19 were completed and made available to the Committee in late August. Committee members provided comments which were incorporated in the final version made available to the Committee on 23 September and endorsed as appropriate for certification by the CEO and the Mayor who signed the statements on 27 September 2018.

The QAO provided an unmodified audit opinion on the financial statements on 30 September 2019, approximately 3 weeks earlier than in 2018. 6.2 Financial Sustainability Statements

The Financial Sustainability Statements for the Council comprising both current year and long term perspectives are required to be completed, and in respect of the current year’s statements, audited by the QAO. The various sustainability ratios and the methods of calculation are prescribed by legislation.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) As Councillors are well aware, the City of Gold Coast has previously made representations to various parties over time concerning the legislated methodologies and in particular, the appropriateness of using depreciation costs rather than the amount expended on renewal of assets (as provided for under the Council’s Asset Management Plans) when calculating the asset sustainability ratio. Recommendations also made by the QAO which would allow a broadening of the number of ratios to be used still remain under consideration by the Department of Local Government, Racing and Multicultural Affairs. Hence the ratios shown below have been calculated using the mandated methods although ratios for the Council’s preferred method of calculation are also shown for the first two ratios.

For 2018-19, the Operating Surplus Ratio was positive reflecting an improvement relative to 2017-18 with the latter year impacted by expenditure associated with the Commonwealth Games and Stage 2 of the Light Rail which was required to be treated as operating expenditure. Because the average ratio over the past 5 years for City of Gold Coast is marginally negative, the QAO has continued to assess the Council as Moderate Risk. In this context, it should be noted that the long term outlook is for a positive operating surplus ratio in each of the next 10 years notwithstanding that the City will be faced with a number of financial commitments to major projects including Stage 3A Light Rail, the Cultural Centre, major water projects and community centres. (By way of note, QTC has elevated the Council’s rating to Sound Risk with a Positive (from Neutral) Outlook).

The Asset Sustainability Ratio declined slightly as did the preferred ratio as calculated by the City. As funding required for renewal of assets is provided in each budget, the City remains satisfied that assets are being sustained appropriately.

The remaining Net Financial Liabilities ratio continues to improve although this may indicate that there are opportunities for improved cash management which would be assisted should a more flexible approach to the City’s borrowing program be available to Council.

City of Gold Coast

Operating Surplus Ratio

Year Actual Benchmark

2012‐13 ‐11.2% 0%‐10%

2013‐14 ‐5.4% 0%‐10%

2014‐15 ‐1.6% 0%‐10%

2015‐16 1.1% 0%‐10%

2016‐17 1.6% 0%‐10%

2017‐18 ‐3.7% 0%‐10%

2018‐19

1.5

% 0%‐10%

Council's preferred method of calculation of the above Ratio for 2018‐19 results in a Ratio of 11.5%



Asset Sustainability Ratio

Year Actual Benchmark

2012‐13 24% >90%

2013‐14 48% >90%

2014‐15 35% >90%

2015‐16 46% >90%

2016‐17 50% >90%

2017‐18 57% >90%

2018‐19 51% >90%

Council's preferred method of calculation of the above Ratio for 2018‐19 results in a Ratio of 113%

Net Financial Liabilities Ratio

2012‐13 42% <60%

2013‐14 35% <60%

2014‐15 16% <60%

2015‐16 ‐4%* <60%

2016‐17 ‐15%* <60%

2017‐18 ‐18%* <60%

2018‐19 -31%* <60%

* The negative figure indicates that current assets exceed current liabilities.

The Financial Sustainability Statements were certified by the QAO on 30 September 2019.

6.3 City of Gold Coast Insurance Company Ltd

The Committee noted that the financial statements of the Company for 2018-19 had been audited by Ernst & Young LLP (one of the world’s largest accounting firms) and that an unmodified audit opinion had been issued.

The Committee also noted the CEO’s report on the Company’s operations and the tightening of the global insurance market which is having some effect on the Company’s insurance premiums. Notwithstanding that effect, the Company’s financial reserves continue to strengthen which will allow the Company to review its reinsurance arrangements to potentially reduce premiums.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) 6.4 Other Controlled Entities

The financial statements for all local controlled entities for 2018-19 were provided with unmodified audit opinions by QAO, except Connecting Southern Gold Coast which had not been finalised at the time of writing this report. Audit issues identified at Connecting Southern Gold Coast Ltd delayed completion of their financial statements. In addition, QAO identified some audit issues at HOTA Gold Coast Pty Ltd. The Committee will monitor relevant activities necessary to ensure satisfactory completion of the three event entities’ final financial statements following their winding up as at 30 June 2020 and will also focus on efforts to improve financial management at HOTA Gold Coast Pty Ltd.

7 INTERNAL AUDIT

7.1 Internal Audit Function

The Internal Audit function continues to be an integral function underpinning the governance framework of Council and provides extensive and valuable support to the work of the Audit Committee.

Council’s Internal Audit Unit reports to the Manager Corporate Assurance, Mr Grant Mather who has been with Council for ten years, firstly as Manager Internal Audit and more recently as Manager Corporate Assurance. Grant has an extensive range of internal audit, risk management and business consulting skills, and is a Certified Practising Accountant (CPA), Certified Information Systems Auditor (CISA) and long standing member of the Institute of Internal Auditors (Australia).

Ms Karen Farquhar is the Executive Coordinator Internal Audit and is supported by five professional internal audit staff (although not all are full time employees) and one business support officer. Ms Farquhar has extensive and relevant internal audit experience and holds the following qualifications – Bachelor of Business and member of the Institute of Chartered Accountants Australia.

Other professional internal audit staff have various qualifications and experience in the fields of accounting, finance, commerce, IT, data analysis and internal audit. Professional development plans have continued in place to ensure internal audit staff stay abreast of current risk and control developments and leading internal audit practices. Approximately 10% of available audit time is spent on professional development and related activities to ensure staff are providing high quality advice and audit services.

Internal Audit services have continued to be provided through a mix of professional internal staff supported by external specialist services as required particularly where a specific review or activity is involved.

The Manager Corporate Assurance and staff of the Internal Audit Unit provide specialist advice and guidance to the Audit Committee and to management through their active participation in a range of organisational working groups and project steering committees. Through this involvement, Internal Audit assists management to identify and implement risk and control improvements early in the change/project cycle and provide ongoing assurance. In undertaking this work, conditions are imposed by Internal Audit such that involvement is in no way part of the management or implementation process and is advisory only. This is important to protect the independence of Internal Audit and its ability to later audit outcomes.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) Under the guidance of the Manager, Corporate Assurance and the Executive Coordinator Internal Audit and with the support of the Committee and CEO, the Internal Audit Unit has continued to adopt a balanced and strategically aligned assurance and advisory function that seeks to add value to the organisation by helping management understand and better manage their key risks. The Audit Committee continues to be aware of the positive nature of feedback from areas being audited by the Internal Audit Unit and the Manager Corporate Assurance in addition to their contribution to projects upon which their input and advice is sought.

The Internal Audit Unit budget for internal audit services in 2018-19 was approximately $1 million. This represented around 0.08% of Council’s total operating revenue of approximately $1.3billion (excluding contributions and donations) which is less than the equivalent average percentage for Queensland State Government Departments.

7.2 Internal Audit Operations

Because of the continuing additional demands placed upon the internal audit function, it was not possible to fully complete the Internal Audit Plan for 2018-19. Some audits have been deferred to 2019-20 and some replaced due, in part, to emerging or evolving issues (including those outlined in this report). A table of formal internal audit reports issued during the 2018-19 cycle is attached as Attachment A.

As part of each audit, various recommendations were determined and agreed with the responsible Manager and Director, and ranked on a high, medium and low scale together with timelines for corrective action. Although generally satisfactory, the results of those audits remain varied indicating a need for a continued focus in certain areas. Perhaps the most concerning audit finding was, as mentioned elsewhere (see 6.1 (b) above), deficiencies around controls over the Pathways system which will remain a focus for Internal Audit in 2019-20 together with the development of appropriate documentation relating to management of the infrastructure charges register.

As usual, findings and recommendations made in internal and external audit reports and relevant Auditor-General reports to Parliament were recorded and tracked by the Internal Audit Unit with the aim of ensuring that management addresses improvement actions in a timely manner. A register of these issues (and those raised by the QAO) was maintained and regularly followed up by Internal Audit with reports on management’s progress in addressing audit actions provided to the Audit Committee on a regular basis. As part of the procurement of a new software tool (Folio supported by Lexus Nexus) for monitoring of overall compliance requirements, the Internal Audit Unit is also planning to use a version of that tool in 2019-20 to provide an enhanced reporting tool to assist the Unit and the Committee in undertaking this monitoring function.

During 2018-19, the Committee again focussed on the high rated outstanding actions and those more than three months overdue where there are still a significant number of outstanding recommendations to be implemented. Whilst noting some improvement, the Committee continues to have concerns regarding delays in addressing audit matters and will continue to closely monitor progress in this area.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) Finally, the Internal Audit Unit has continued its strong but independent working relationship with management and the Audit Committee. This has allowed for robust discussions surrounding risk and control issues as and when they arose. The Internal Audit Unit has also continued to play an active role in maintaining open and effective lines of communication with the QAO to ensure internal and external audit activities are aligned and integrated during audit planning activities. Both audit functions continued their close collaboration to minimise duplication of audit activities where possible.

7.3 Going forward - Internal Audit Planning

In accordance with the normal practice, the Audit Committee undertook its annual planning workshop in May 2019 in conjunction with the Internal Audit Unit and senior management. Workshop participants were provided with QAO and Internal Audit Unit strategies and plans. In addition, information was provided and presented by management concerning the wider internal audit environment, specific audit, risk and/or internal control matters allowing the Committee’s consideration of such matters and to ensure that:

any shortfalls in delivery of the 2018-19 Plan could be addressed; matters raised as Significant Deficiencies in the QAO’s Closing Report were being

addressed; matters raised in Reports to Parliament by the Auditor-General on performance audits

could be considered, assessed and acted upon where relevant; there is appropriate recognition of higher priority and emerging risk matters in audit

planning, scheduling and resourcing; and the Annual Internal Audit Plan for 2019-20 was prepared for the Committee’s

endorsement and that the existing rolling 3 year Strategic Audit Plan was reviewed and modified to ensure its currency and appropriateness.

In developing the Annual Audit Plan for 2019-20, there was a continuation of the focus on the following matters including:

the continuation of follow up of outstanding audit findings/recommendations/actions; a focus generally on high risks areas such as IT systems (including Pathways and

SAP); continued external IT security (that is Cyber security) threats; results of recent internal and external audits and whether there were adverse

conclusions; the extent and timeliness of implementation of agreed actions and the period since

the last audit; specific reviews in the areas of corporate governance and procurement governance; emerging identified risks; specific requests from management for an audit of a particular area or activity given

management concerns concerning risks to which the Council might be exposed; and the need for certain internal audit work to be undertaken annually simply because of

the size, importance and sensitivity of the activities, regardless of risks.

As usual, the Committee took a keen interest in ensuring that allowance is made in the Annual Internal Audit Plan (see Attachment B) for emerging issues that are unable to be identified or quantified at the time of planning. Any proposed changes to the Annual Plan will be considered by the CEO and the Audit Committee as part of committee meetings.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) In conclusion, the Internal Audit Unit has worked with the Committee and management to ensure an appropriate balance between competing focus areas and the consequent risks when developing the Annual Audit Plan for 2019-20 and the 3 year Strategic Audit Plan.

8 EXTERNAL AUDIT

8.1 QAO Financial Statement Audit

The Audit Committee, management and the Internal Audit Unit continue to work closely with the QAO as the Council’s external auditors with a strong and effective working relationship.

Throughout the 2018-19 audit, QAO kept management and the Committee informed of the audit process and specific matters requiring attention. This was achieved by presentation of the external audit strategy and plan and regular reports to the Committee as well as ad hoc briefing notes.

As part of its audit process, QAO also formally advises the Mayor and Chief Executive Officer of any major matters they have raised with management during the interim and final stages of the audit by issuing observation reports. These reports, when received by the Mayor, are tabled with Council as required by legislation.

The QAO’s closing report identified three items as Significant Deficiencies (as reported in section 6.1 above) which, it is expected, will be included in the final QAO Management Report for 2018-19 to be tabled with Council in November 2019.

The original external audit fee set by the QAO for Council’s 2018-19 external audit was $400,000. The final audit fee increased to $405,000 because of additional audit work required in relation to additional testing around the Pathways system (see the third dot point above).

Committee members appreciate the opportunity to liaise extensively with representatives of the QAO through their attendance at Committee meetings. From time to time relevant presentations are made by QAO on specific issues. In addition, the Committee met “in camera” with QAO representatives to ensure that open and honest communication can be undertaken without management being present No issues of concern were identified during that session.

Finally, the Committee wishes to acknowledge the valued advice, assistance and cooperation provided by QAO staff throughout the 2018-19 year.

8.2 QAO Report to Parliament on 2018-19 local government audits

In mid 2020, the QAO will issue its consolidated local government sector report covering the 2018-19 financial statement audits of all local government entities. It is possible that the report may include indirect reference to some of the matters mentioned in this report.

8.3 Other QAO reports to Parliament

From time to time, the Auditor-General tables reports to Parliament which deal with both sector wide issues and specific performance audits which may have application to more than one organisation. The Committee monitors such reports and all reports are also analysed by the Manager Corporate Assurance and the Committee to establish whether the findings and recommendations have relevance to the operations of the Council.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) Where they have relevance, action is taken to draw the attention of management to the findings and to the recommended actions.

Reports tabled during 2018-19 which had some relevance to Council included:

Monitoring and managing ICT projects; Delivering Shared Corporate Services in Queensland Water: Results of 2017-18 Financial Audits Local government entities: Results of 2017-18 Financial Audits; Managing consumer food safety in Queensland;

In September 2019 the Auditor-General also tabled his report on “Managing the sustainability of local government services”. The report on the audit, in which the City was not a direct participant, will be considered at the Committee’s November meeting to assess whether there are any enhancement opportunities for the City.

During 2019-20, the QAO will be undertaking 2 performance audits which have direct relevance to the Council:

Evaluating major infrastructure projects; and Managing the cost of local government services.

A further 2 audits will also have some relevance to the Council:

Effectiveness of audit committees in state government entities; and Delivering social housing and housing services.

The Committee will, in conjunction with management, review the outcomes of the audits when completed, to assess whether there are learnings from the findings and recommendations.

9 FRAUD AND CORRUPTION CONTROL

The Audit Committee has continued to take a keen interest in fraud and corruption control during the 2018-19 meeting cycle and supports management’s ongoing attention to this matter. Several members of the Committee have attended breakfast seminars on this subject during the Council’s Fraud awareness week activities.

The Committee also appreciates that this matter continues to be the subject of ongoing attention by the QAO and the CCC and continues to be updated on instances of fraudulent or corrupt activity and the implementation of the fraud and corruption control framework.

In this context, the Manager Corporate Assurance has implemented an annual benchmarking activity using the QAO developed fraud and corruption assessment tool throughout the Council’s operations to review the strength and integrity of the Council’s current framework including policies, processes and responses. It is anticipated that the Committee will receive an updated report at its November 2019 meeting while Integrity and Ethical Standards Unit (IESU) report will be due at the February 2020 meeting.

The Committee will continue to monitor this matter to ensure that staff, external suppliers and contractors remain fully aware of Council’s zero tolerance towards fraud and corruption and the potential consequences of any wrongdoing.



10 INTERNAL CONTROL AND GOVERNANCE

10.1 Internal Control

Although the Internal Audit Unit and the Committee have focussed on internal control matters in recent years, it was concerning that further weaknesses were identified during 2018-19 with the timeliness and comprehensiveness of management responses still poor in some areas. The Committee will work with the Internal Audit Unit to further enhance performance in this area.

10.2 Management Presentations to Audit Committee

The Committee gains significant value from presentations made by senior managers and directorates with at least an annual presentation and, in the higher risk areas, six monthly presentations or as needed. The focus of the presentations remains on updating the Committee on staff and functional changes and activities since the last report with a focus on current and emerging issues, strategies, risks, opportunities and activities being undertaken to address relevant matters.

Presentations made during the 2018-19 meeting cycle and/or at the planning workshop included:

Chief Executive Officer – on strategic direction, challenges faced by the City, issues such as opportunities in the digital space, Stage 3A of the light rail, development of the Cultural Centre, risks and opportunities and organisational and personnel changes;

Director, Economy, Planning and Environment – on issues and developments within the directorate including the matter of the infrastructure charges register;

Director Lifestyle and Communities – on issues and developments within the directorate;

Director Organisational Services in relation to the implementation of the Pathways and other IT systems;

Chief Procurement Officer in terms of procurement strategies and direction, contract management and procurement systems;

Manager Business Services GCW in relation to major water projects and water security;

Manager Corporate Planning and Performance in relation to Corporate Plans, preparation of the Annual Report and quarterly corporate performance;

Manager Corporate Asset Management in relation to asset valuations and asset management plans;

Manager Corporate Finance on financial statements, financial performance, financial management plan, financial management, related parties reporting, financial sustainability and proposed changes in accounting policies or presentation;

Manager Corporate Assurance on progress against the 2018-19 audit plan and major findings and recommendations arising from internal and external audit activities together with various assurance matters;

Executive Coordinator Ethics and Integrity Unit on fraud and corruption matters and trends;

Manager Business Innovation and Technology Services in relation to cyber resilience;



City Solicitor on legal issues, contingency provisions and insurance

matters and current legal and legislative issues; and Executive Coordinator, Risk, Security and Business Continuity on

current and emerging risks to Council and emerging safety issues and trends.

10.3 Circulation of Better Practice Guidance material

The Audit Committee continues to encourage the sharing of better practice guidance within Council and supports the efforts of the Manager Corporate Assurance, Executive Coordinator Internal Audit and Executive Coordinator Ethics and Integrity in disseminating and discussing relevant better practice guidance material and other independent reports for the consideration of Council managers and staff. The outcomes and recommendations resulting from sector wide QAO audits were also made available for appropriate consideration and/or action where relevant.

10.4 Related Party Transactions

The requirement for local government bodies to disclose and report related party transactions became effective in the 2016-17 financial year and the Committee has taken a close ongoing interest in this matter. As part of its 2018-19 audit, the QAO found that there were shortcomings in the monitoring and ongoing assessment of related parties’ declarations. This issue was resolved as part of the year end process with no issues of concern being raised.

10.5 Beneficial Enterprises

As part of its audit for 2018-19, QAO raised, as a deficiency, the lack of policies and procedures for the assessment and reporting of beneficial enterprises. The Committee is aware that there are varying views concerning the definition of a “beneficial enterprise” for the purposes of the Local Government Act 2009. The Committee is aware that a further review of this matter is currently being undertaken by management and will review the outcomes of that review for future reporting implications.

10.6 Enterprise Risk Management

During 2018-19, the Committee received the customary biannual presentations from the Council’s Manager Corporate Risk and Safety on all aspects of Council’s risk profile and risk register including the extent of changes from prior presentations and emerging new risks. In addition, relevant Directorate presentations also touched on risks specific to that Directorate with the opportunity provided to Committee members to seek explanations concerning the identification and treatment of risks in that area. The Committee continued to monitor whether new and existing risks are being properly addressed and managed including seeking explanations of the effectiveness of mitigation activities with the matter of risk management remaining a key topic at the Committee’s annual planning workshop.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) In that context, the Committee noted the outcomes of an assessment conducted by the Internal Audit Unit on the level of risk management maturity. That assessment found a significant difference in the level of maturity as seen by the corporate unit (fully mature) and by divisional units (developing). The assessment also raised options for consideration as to the appropriate organisational location for the corporate risk management function and also suggested that there is scope to make further use of risk management in business operations.

10.7 Legislative and Policy Compliance

In accordance with established good corporate governance, representation letters for 2018-19 were prepared by Directors and Managers in relation to specific activities. This is a structured and continuous process with representation effectively to Council officials who sign the financial statements on behalf of Council. Executives remain acutely aware of the significance and importance of this process and the reliance that is placed on their representations. While the process works effectively and is a useful mechanism to highlight any major issues for the Committee, some matters were identified in 2017-18 particularly in the area of valuations and infrastructure charges which the Committee considered would further improve the value of such representations to management. These were implemented during 2018-19.

As Councillors would also be aware, there are often changes to legislation (including regulations) that control the activities of Council. As changes are proposed and/or made, relevant discussion papers are prepared, presented and discussed at Committee meetings. The Committee’s focus remains on how any changes effect Council’s position and the risks and opportunities relating thereto. Further, the Committee is advised of what processes are being put in place to comply with legislative changes and how compliance is to be monitored. The Committee is also aware that several external organisations conduct compliance reviews such as governance, privacy and environmental reviews which assist in ensuring that the Council remains compliant.

Finally, the Committee continues to strongly advocate for a single point of accountability for the totality of all compliance matters (see 10.9 below) which might be addressed as part of any prganisational review.

10.8 Legal Matters

The City Solicitor again presented to the Committee during 2018-19 and also provided ad hoc briefings in relation to the amount to be included as contingent liabilities in Council’s financial statements. As part of the City Solicitor’s presentations, advice was provided to the Committee on outstanding legal matters, insurance issues and legislative or regulatory changes with implications for the City.

Some of the more significant legal matters on which the Committee was briefed during 2018-19 included:

the outcomes of various court cases and issues arising in relation to the issue of infrastructure charges notices and rates;

progress related to the potential sale of the Bruce Bishop car park; and

outstanding insurance claims


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) 10.9 Other Assurance Activities

From time to time certain Council activities are subjected to independent reviews of their operational activities by regulators or other independent bodies. Where such reports are known to Internal Audit and available, executive summaries are made available to the Committee. These reviews and accompanying /comments/recommendations assist with the overall governance of Council.

Examples of independent audits or reviews include those by the Crime and Corruption Commission, Office of the Information Commissioner, Queensland Ombudsman, regular Work Health and Safety reviews by the self insurance regulator and QTC Credit Reviews. The Committee is not currently aware of any adverse matters arising from such activities.

10.10 Overall compliance responsibility

The Committee remains concerned that there is no single point of accountability for ensuring Council’s overall compliance with relevant legislation, regulations and Council specific policies and procedures. Although acknowledging that further work is being undertaken to enhance compliance activities, the Committee is concerned that the rate of progress appears to be slow and would encourage work being expedited during 2019-20. In this context the Committee understands that management is completing the procurement of a software tool (“Folio”) which should assist in monitoring and managing compliance activities. The same tool may be used by the Internal Audit Unit to enhance their capability to monitor outstanding audit recommendations with a prototype currently under development.

11 THE COMMITTEE’S WORK FOR 2019-20

Given the matters identified in relation to internal control deficiencies and their impact on financial reporting, the Committee will continue to have a clear focus on closely monitoring the following matters:

11.1 Active infrastructure charges register

The Committee will continue to pay close attention to this matter to ensure that appropriate policies and processes are developed, in place and followed to ensure the integrity of the register and that all revenue to which the Council is entitled, is recognised and collected.

11.2 Reconciliation of data between Pathways and SAP systems

Issues around the reconciliation of data between the Pathways system and the Council’s financial system (SAP) continued during 2018-19. Although the data continues to be reconciled in total on a “to date” basis (after allowing for known matters), reconciliations at month and year end remain problematic largely due to differences in timing of recognition of certain transactions between the two systems.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) The Committee is aware that there is a difference of opinion between Council’s management and the software supplier, Infor, as to a way forward and that it has been agreed that an independent party should be engaged to advise on whether a software “fix’ is required or whether the current “work arounds” should be formalised and continued. The Committee will closely monitor this matter in 2019-20 and will also work to ensure that existing processes are fully documented given the existing reliance on one Council staff member to manage the reconciliations.

In this context, the Committee continues to have some concerns regarding the timeliness and quality of responses to outstanding audit recommendations including those relating to service providers (Infor and Fujitsu). Whilst improvements have been noted including the use of an improved reporting tool, the Committee will increase its focus on any outstanding management responses to audit recommendations.

11.3 Valuation of non-current assets

During 2019-20, the roads, bridges and major culverts class will be subject to a comprehensive revaluation. During the latter part of 2018-19, the committee focussed on the need for timely planning and preparation for this activity and sought the completion of a project plan which would meet the timeframe set down by the committee including the requirement for comprehensive peer review. The committee will closely monitor progress against the agreed project plan during 2019-20.

The Committee will also continue to monitor the interim valuation activities for all other asset classes and in particular, valuation activities around land and buildings. The Committee will also closely scrutinise the documentation of such valuation activities and the potential application of appropriate indices given the identification of some minor issues in 2018-19.

In addition, the Committee has been concerned for some time that management continues to identify assets not previously recognised or assets previously recognised which are, in fact, not Council assets. The Committee is concerned (as is the QAO) that the Council has been through a number of cycles and these assets continue to be identified. The Committee will continue to scrutinise the efforts of management to improve this situation.

Finally, the Committee will monitor the planning and preparation for transfer of ownership and valuation of assets from the 3 events based entities to MEGC.

11.4 Reporting of related party transactions

Because of the QAO findings during its 2018-19 audit (see 10.4 above), the Committee will monitor this matter during 2019-20 to ensure that all relevant related party declarations are kept up to date and that all transactions are properly identified and reported. This will include planning for any changes arising from the transition from the 3 events based entities to MEGC.

The Committee will also consider the outcomes of the review being undertaken concerning “beneficial enterprises” and whether there are any implications for reporting of related party transactions.



11.5 Financial statements preparation (including accompanying notes)

Although simplification of the financial statements and the accompanying notes continued during 2018-19, the Committee strongly considers that there is still potential to further simplify the notes and improve their readability and will pursue this in conjunction with Corporate Finance at the appropriate time.

11.6 Controlled entities

Following the Council’s decision to create a new Major Events Gold Coast (MEGC) Corporation, the Committee has continued to take a keen interest in planning and preparation for the transition from the 3 events based entities to the MEGC and has provided input to the transition arrangements. The Committee is also taking a keen interest in the arrangements for the preparation of financial statements for the 2019-20 financial year for those entities.

In addition, the Committee was pleased to note that management will establish a Council policy in relation to the creation and management of controlled entities by 31 December 2019 in accordance with the initial commitment to the QAO and has provided some input to the development of that policy. The Committee considers that such a policy is an essential part of good corporate governance and will provide some guidance to current transitional activities.

Finally, the Committee will also monitor the development of policies and procedures for the assessment and reporting on beneficial enterprises.

11.7 Implementation of new or revised accounting standards

There are two significant changes in relation to accounting standards which will be effective for financial years commencing from 2019-20. They are:

AASB 15 Revenue from Contracts with Customers (and the accompanying AASB 1058 Income of Not-For-Profit Entities which provides guidance in relation to AASB 15). Implementation of this Standard means that certain payments (primarily prepaid rates) will be accounted for as income in the financial year to which the rates apply and not in the financial year of receipt. This is estimated to have a one-off negative impact on income reported in the Council’s operating statement for 2019-20 of between $20M and $22M;

AASB 16 – Leases – where most operating leases will be required to be recognised on the balance sheet as both lease assets and financial liabilities. The Committee has noted advice from Corporate Finance that the impact on the Council’s operating statement will not be significant although both assets and liabilities on the Council’s balance sheet will increase by approximately $13m as a result of adoption of the Standard.

The Committee will monitor implementation of the new Standards during 2019-20.



11.8 Cyber resilience (including the potential for data breaches)

The Committee remains acutely aware of the dangers to Council operations and to the broader community posed by cyber attacks on its systems. The Committee has continued and will continue to monitor the steps being taken by management to develop resilience to such attacks and for the Council’s operations to recover from any successful attack.

In this context, the Committee is aware that the QAO has recently undertaken an audit of IT security at a variety of government organisations (5) and has found various levels of shortcomings in their cyber security. The QAO has made a series of recommendations for all government organisations designed to improve their cyber security. The Committee has sought a report for its November meeting which seeks a response in relation to the QAO’s general findings and a proposed course of action where shortcomings have been identified. 11.9 Internal Audit Plans

A 3 year Strategic Audit Plan and an Annual Audit Plan (copy at Attachment B) were developed by the Manager Corporate Assurance and agreed with the Committee following the Committee’s planning workshop in May 2019 and the July 2019 Committee meeting. The focus of the Plans continues a “Focus on the Fundamentals” approach however as indicated earlier in this report, there will also be a focus on some of internal control issues which emerged late in the financial reporting cycle, for example, IT security around the Pathways system. In addition, there will continue to be an emphasis on follow up of outstanding audit findings and recommendations. Consequently, the Committee will continue to review these Plans to ensure that all relevant issues identified are addressed in a timely manner. 11.10 Risk Management

At various times during the past two financial years, the Committee has raised concerns in relation to the risk management framework including the absence of a documented risk appetite statement and the level of assessed mitigated risks. As indicated in section 10.6 above, the Internal Audit Unit undertook a review of the level of risk management maturity in the Council during 2018-19. The findings of that review indicated that there was a mismatch of perceptions as to the level of maturity between the Corporate Unit responsible for Safety and Risk and operating Divisions. The Committee understands that the report on risk management maturity along with the question of the appropriate organisational location for the function will shortly be considered by the Executive Leadership Team.

Further the Committee is also aware of, and has had some involvement in, work being undertaken as part of KPMG’s review of corporate governance (see below) which highlights a trend away from Enterprise Risk Management (ERM) towards more of a focus on the use of risk management to drive individual business unit strategy, activity and performance monitoring.

The Committee will consider the outcomes of the above activities for their implications for risk management and for the Committee’s Charter in 2019-20. Of course, the Committee will also continue to receive regular updates on ongoing risks and actions being taken by management including details of risk registers where relevant.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) 11.11 Outsource audit activities

KPMG has recently been engaged to undertake two of the approved audits on the Audit Plan- being reviews into contract governance and corporate governance within the City. The Committee will consider the outcomes of those reviews when completed to ascertain whether there are any learnings or recommendations which would apply to or be beneficial for the Committee’s Charter, activities and/or operations. 12 AUDIT COMMITTEE CHARTER AND OPERATIONS

The Committee is well aware of the ongoing need to enhance the effectiveness of its operations. Consequently, the Chair of the Committee attends QAO briefings provided specifically for Audit Committee Chairs to ensure that they are aware of QAO objectives, strategies and plans together with current and emerging issues and approaches and can pass on relevant matters to Committee members and to Council management.

At the completion of the 2018-19 cycle, members gave further consideration to the appropriateness of the Committee’s Charter and has recommended some changes for consideration and approval by Council prior to the completion of 2019.

During 2019-20, the Committee will also:

consider the outcomes of various external reviews and any further legislation (for example “Belcarra”) which may have implications for the range and nature of functions and responsibilities of the Committee;

continue to work towards more standardised reporting from key governance areas; and further review the forward schedule of activities to better align with the Audit Committee

Charter.

13 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN

The role of Council's Audit Committee is aligned with the "Supporting the Delivery of Gold Coast 2020" elements of the corporate plan, particularly:

B We manage the city responsibly

Our stewardship of the city provides value for money for ratepayers.

14 FUNDING AND RESOURCING REQUIREMENTS

There were no new budget/funding considerations. The budget for the Committee’s operations remains at approximately $90,000 per annum. 15 RISK MANAGEMENT

The Audit Committee continues to play an active role in relation to Council's corporate and directorate risk profiles in ensuring that appropriate focus is placed on identifying, prioritising, monitoring, mitigating and managing risks to which the Council is exposed. Sections 10.6 and 11.10 above provide further information concerning the Committee’s interest and involvement in risk management.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) 16 STATUTORY MATTERS Section 105 of the Local Government Act 2009 (Act), requires all large local governments to establish an audit committee to:

monitor and review the:

integrity of financial documents; and

internal audit function; and

effectiveness and objectivity of the local government’s internal auditors; and

make recommendations to the local government about any matters that the audit committee considers need action or improvement.

The Council’s Audit Committee Charter extends well beyond the statutory requirements outlined above to incorporate a broader range of matters including financial and risk management, corporate governance, fraud and corruption control, internal control framework and asset management and valuation. The Committee’s activities and operations for 2018-19 satisfied all the above statutory requirements together with those of its Charter. 17 COUNCIL POLICIES Audit Committee Policy and Charter 18 DELEGATIONS Not Applicable. 19 COORDINATION AND CONSULTATION In the table below, identify how internal and external stakeholders have been involved / participated in the proposal to date and the outcome of that participation. Name and/or Title of the Stakeholder Consulted

Directorate or Organisation

Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Audit Committee members Audit Committee Yes

Grant Mather, Manager Corporate Assurance

Karen Farquhar Executive Coordinator Internal Audit

Office of the COO Yes – Consulted

Yes – Consulted


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) 20 STAKEHOLDER IMPACTS

Not Applicable. 21 TIMING

Council's Audit Committee Charter requires the Chair of the Audit Committee to present an annual report of the Committee's activities for the year after the QAO has certified Council's financial statements. The QAO certified the Council’s financial statements on 30 September 2019.

22 CONCLUSION

The Audit Committee continued to meet its obligations and responsibilities as set out in the Audit Committee Charter and applicable legislation during 2018-19 with a number of improvements in the Council’s internal controls and financial reporting achieved. Nonetheless there remain a number of areas (as set out in Section 11 above) where further improvement is required and these areas will be the focus of the Committee’s work during 2019-20.

Although this report has been submitted by me as the Chair of the Audit Committee, I would like to acknowledge the extensive, perceptive and effective contributions which continue to be made by the other members of the Committee. All members remain totally independent ensuring that they are free from conflicts of interest by maintaining up to date declarations of external interests (and relevant registers for Councillor members).

While enjoying excellent relationships with key Council staff, members have continued to participate in an enquiring, professional and robust manner through detailed and comprehensive questioning of attendees to assess their strategic and operational understanding of the topic under discussion or review, the quality of their responses and their assessment and management of associated risks and opportunities. The members’ extensive experience, strategic insights and approach and their knowledge of current audit, IT, procurement, financial and risk management and governance issues and developments provide significant value to the Committee’s workings.

The Committee would also like to acknowledge and express its appreciation for the ongoing excellent work undertaken by the Internal Audit Unit and the Manager Corporate Assurance. The outcomes achieved and continuing improvements made in a variety of internal control areas reflect their dedicated efforts and work. The Committee also very much appreciates the support afforded to it in its work by the Internal Audit Unit.

The Committee has continued to work closely with the QAO, Corporate Assurance, executive management, Councillors and other stakeholders with the ongoing aim of adding value by improving the efficiency and effectiveness of Council's operations including identification, assessment and management of risks and protection of the Council from fraud, loss and/or corruption.

Through meeting agenda items and minutes, matters that the Committee considers might benefit from escalation to senior management or other Councillors are discussed with Councillors Owen-Jones and Tozer.


ITEM 2 (CONTINUED) AUDIT COMMITTEE CHAIR’S REPORT TO COUNCIL 2018-19 LG964/06/20/03/CF(P1) Finally, The Committee was again pleased to welcome Mayor Tom Tate and Councillors Cameron Caldwell, Pauline Young and Gail O’Neill to various meetings (or parts thereof) of the Committee and trusts that the Mayor and Councillors gained some valuable insight into the operations of the Committee and the issues arising. The Committee again invites all Councillors (and particularly those members of the Events, Tourism and Governance Committee) to attend Committee meetings for the whole or any session of a meeting that may be of interest. 23 RECOMMENDATION It is recommended that Council resolves as follows: That the annual report of the Audit Committee Chair for 2018-19 is noted.

Author:

Mr Bill Turner Independent Audit Committee Chair 12 November 2019

TRACKS REF:#74879934

CHANGED AT COUNCIL MEETING 26 NOVEMBER 2019 COMMITTEE RECOMMENDATION ETG19.1121.002 moved Cr La Castra seconded Cr Gates 1 That the annual report of the Audit Committee Chair for 2018-19 is noted.

2 That Council notes the contribution of Bill Turner as the Chair of the Audit Committee and thanks him for his years of service.

CARRIED

COUNCIL MEETING 26 NOVEMBER 2019 RESOLUTION G19.1126.021 moved Cr Tozer seconded Cr Caldwell

That Committee Recommendation ETG19.1121.002 be adopted as printed which reads as follows:- 3 That the annual report of the Audit Committee Chair for 2018-19 is noted.

4 That Council notes the contribution of Bill Turner as the Chair of the Audit Committee and thanks him for his years of service.

CARRIED UNANIMOUSLY



Attachment A



Attachment B INTERNAL AUDIT PLAN FOR 2019-20

ID# Engagement Title Type Days

OFFICE OF THE CHIEF OPERATING OFFICER (OCOO)

19/20:AE1 Staff Welfare Fund Assurance 5

19/20:AE2 10 Year Financial Plan Assurance 40

19/20:AE3 Risk Management Systems Assurance 25

19/20:AE4 Asset Revaluation Steering Committee Advisory 10

19/20:AE5 Insurance Claims Management Assurance 30

ORGANISATIONAL SERVICES (OS)

19/20:AE6 Cyber Resilience Review (funded by Organisational Services)

Assurance 10

19/20:AE7 Payment Card Industry Compliance Advisory 10

19/20:AE8 Fraud & Corruption risk assessment – Procurement

Assurance/Fraud risk

15

19/20:AE9 Agency Resource Contract Management Assurance 30

19/20:AE10 Chris21 Award Interpreter Configuration Assurance 20

19/20:AE11 Executive Contracts Assurance 15

19/20:AE12 Land/Property Acquisitions Assurance 20

LIFESTYLE AND COMMUNITY (LC)

19/20:AE13 Community Grants Assurance 30

19/20:AE14 VicRoads Annual Agreement Assurance 5

TRANSPORT AND INFRASTRUCTURE (TI)

19/20:AE15 Transport Levy Assurance 30

19/20:AE16 Asset Custodianship Assurance 30



ID# Engagement Title Type Days

GOLD COAST WATER & WASTE (GCWW)

19/20:AE17 IPS Implementation Advisory 20

19/20:AE18 State Waste Levy impacts Assurance 40

19/20:AE19 QAO – Critical Water Infrastructure Security Performance audit – follow up

Assurance 15

ECONOMY, PLANNING & ENVIRONMENT (EPE)

19/20:AE20 Development Assessment Approvals and charges

Assurance 40

OFFICE OF THE CHIEF EXECUTIVE OFFICER (OCEO)

19/20:AE21 Controlled Entity transition arrangements Assurance 30

19/20:AE22 Belcarra Stage 2 Legislative reforms Assurance 25

19/20:AE23 Mayor & Councillor Expense reimbursement

Assurance 15

ALL DIRECTORATES

19/20:AE24 Continuous Controls Monitoring Fraud 20

N/A Prior years Audit actions follow up 27

CONTROLLED ENTITIES

19/20:AE25 Controlled Entities – Review of bi-annual reporting

Assurance 15

INTERNAL AUDIT ENGAGEMENT TOTAL DAYS 572


ITEM 3 ORGANISATIONAL SERVICES PROPOSED MANAGEMENT ARRANGEMENTS FOR A MINOR AREA OF TALLEBUDGERA CREEK CONSERVATION PARK (LOT 1 ON WD804791) TO ADDRESS AN HISTORIC ANOMALY RELATING TO THE GRANT OF PRIVATE ACCESS RIGHTS PN88908/16(P1) Refer Attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To outline the history to the grant of private access interests over a small area currently dedicated as the Tallebudgera Creek Conservation Park and to seek Council’s resolution on management arrangements for those access interests going forward. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION Background Lot 1 on survey plan WD804791 (see Attachment 1) having an area of 4.377 hectares comprises part of the Tallebudgera Creek Conservation Park held in the trusteeship of the State Department of Environment and Science under the provisions of the Nature Conservation Act and Regulations. Historically, the same lot comprised a Reserve for Environmental Park purposes under the trusteeship of the City under the Land Act, but with that ending with the introduction of amending State legislation in the mid-1990s. However, before the City’s trust responsibilities ended, a matter which received Council consideration related to an arrangement for private access through the Reserve and it is that arrangement which has come to light more recently. History pre mid-1990s In 1989, applications were being processed in respect of the construction of dwellings on private freehold sites at 12 – 20 Vantage Point Drive Burleigh Heads, the rear boundaries of such lots comprising a shared boundary with Lot 1 on WD804791 (see Attachment 1). At that time and based on officer recommendations, Council specifically resolved that the subject freehold lot owners could provide for and utilise a sealed access along the rear of the respective freehold parcels allowing for each lot to have a legal frontage from the north (directly off Vantage Point Drive) supplemented by an informal access point to the south (via Lot 1 on WD804971 in an easterly direction to Vantage Point Drive as shown indicatively at Attachment 2). In respect of the informal access, numerous conditions were imposed, the most pertinent of which in the context of this report are:


ITEM 3 (CONTINUED) PROPOSED MANAGEMENT ARRANGEMENTS FOR A MINOR AREA OF TALLEBUDGERA CREEK CONSERVATION PARK (LOT 1 ON WD804791) TO ADDRESS AN HISTORIC ANOMALY RELATING TO THE GRANT OF PRIVATE ACCESS RIGHTS PN88908/16(P1) (4) That the applicant be advised that the paved access is to remain in the Public Open

Space – Environmental area at Council’s discretion and is to be maintained by the affected property owners in a manner satisfactory to the Chief Engineer. A notation is to be placed on the rate search information to this effect.

(5) If Council requires the constructed access to be removed at a later date, the cost of removal of the access and reinstatement of the area is to be met by the affected property owners. The required work is to be carried out to the satisfaction of the Chief Engineer and the Environmental Officer.

(6) Council does not support action to formalise the access to private allotments by way of easement or formal Road Reserve dedication.

As noted previously in this report, it was only a few years later that Lot 1 on WD804791 was set apart as the Tallebudgera Creek Conservation Park, with the City no longer having any statutory control or responsibilities for Lot 1. History post mid-1990s At the time that Lot 1 transitioned to the trusteeship of the State, there is no apparent note on City files of any anomalies in respect of the informal access arrangement. In fact, it was not until March 2019 that the Department of Environment and Science (DES) corresponded with the City on an Impact Assessable application for the property at 14 Vantage Point Drive that the informal access again came to officer attention. The DES correspondence correctly observed that the owner of 14 Vantage Point Drive was reliant on the rear access through the Tallebudgera Creek Conservation Park for their development application to be able to proceed. However, the DES also confirmed that private access arrangements through conservation parks could not be facilitated under the Nature Conservation Act, such that the only alternative to a removal of the access rights would be for the City to make application for a potential revocation of a small area of the Conservation Park, enabling the access corridor to then transfer to City control. With the knowledge of the DES position, it can be confirmed that: (a) only the private freehold properties at 14 and 16 Vantage Point Drive take physical

advantage of the access corridor today; and (b) that 18 Vantage Point Drive (currently a vacant lot) was subject to a development

application in 2010 which provided for the use of the access corridor but such application has now lapsed (it cannot be confirmed from files how such application was processed without the requisite consent of DES as landowner of the access corridor).

Attachment 3 outlines in simple terms the current arrangements in place at the site.


ITEM 3 (CONTINUED) PROPOSED MANAGEMENT ARRANGEMENTS FOR A MINOR AREA OF TALLEBUDGERA CREEK CONSERVATION PARK (LOT 1 ON WD804791) TO ADDRESS AN HISTORIC ANOMALY RELATING TO THE GRANT OF PRIVATE ACCESS RIGHTS PN88908/16(P1) Options on how to proceed In reality the properties at 18 and 20 Vantage Point Drive have never taken advantage of the informal access arrangements and it is considered that no further consideration need be given to those parcels in respect of future access arrangements. That position would be consistent with the conditions outlined in City correspondence dated 4 July 1989 (Item 4) – the access to be available at Council’s discretion etc. As such, and again consistent with City correspondence dated 4 July 1989 (Item 4), a notice should be placed against such lots confirming that all future access point/s to these lots be direct from Vantage Point Drive and not in reliance on any historic informal arrangement. This aspect is reflected in the recommendations in this report. In respect of 16 Vantage Point Drive, it needs to be noted that the dwelling thereon has garages and a car port that are fully reliant on the informal access arrangement remaining in place. Likewise, 14 Vantage Point Drive has a current intention, as per the lodged development application which lies in abeyance, to utilise the informal access arrangements. Accordingly, there appears to be merit, irrespective the City correspondence dated 4 July 1989 and the City’s stated discretion to remove the access availability, to at least explore the formalisation of the access arrangement. In respect of 12 Vantage Point Drive, there is no evidence that such lot uses the access corridor. Irrespective, formalising the access arrangements for 14 and 16 Vantage Point Drive will have the flow on benefit of facilitating a potential future access point in the event that 14 Vantage Point Drive is ever redeveloped. Intended solution to formalise access arrangements Based on all of the above, the means to formalise the existing access arrangements from 12–16 Vantage Point Drive would comprise the following: 1. The City making application to the Department of Environment and Science

requesting the indicative area of approximately 400 square metres at Attachment 4 be revoked from the Tallebudgera Creek Conservation Park and for such area to be granted as freehold (or similar) to Council of the City of Gold Coast.

2. If 1 proceeds to finality, and at no cost to the City (see below), the City grant a licence to the owner of 14 Vantage Point Drive over the access corridor area on the following terms: a. rent to be $1.00 per annum;

b. term to be subject to City determination upon the giving of 3 months notice in the

event of non-compliance with balance licence terms;

c. the licensee be responsible for ongoing repairs and maintenance of the licence area in common with their neighbours at 12 and 16 Vantage Point Drive;


ITEM 3 (CONTINUED) PROPOSED MANAGEMENT ARRANGEMENTS FOR A MINOR AREA OF TALLEBUDGERA CREEK CONSERVATION PARK (LOT 1 ON WD804791) TO ADDRESS AN HISTORIC ANOMALY RELATING TO THE GRANT OF PRIVATE ACCESS RIGHTS PN88908/16(P1)

d. likewise to c, the licensee be responsible for the removal of weed species and other items of storage/refuse from the licence and adjoining areas of the Tallebudgera Creek Conservation Park and for such to be an ongoing obligation on the licensee, failing which the licence would be liable to determination;

e. the licensee meeting the costs incurred in the revocation action required in 1 above offset against any assessment of the increase in value of 14 Vantage Point Drive brought about by the formalisation of the access with such enhancement to be assessed by a registered valuer at no cost to the City; and

f. the licence be noted on the property records with such licence to travel with the ownership of that property such that future owners of 14 Vantage Point Drive will automatically ‘inherit’ the licence obligations in the event of the ownership of 14 Vantage Point Drive transferring.

3. If 1 proceeds to finality, 12 and 16 Vantage Point Drive have their property records

noted such that at any time in the future when either lot is subject to a development application or other application referencing the current informal access arrangements that a similar licence to that described in 2 will be required to be entered into with the City on substantially the same terms as in 2 above and prior to any owner’s consent needed for the use of the access corridor.

Items 1, 2 and 3 above reflect the recommendations in this report to resolve the historic access issues at the subject site. Of course it is also the case that Council could form the view that it does not support the formalisation of the access corridor. This would seemingly only have significant impact on 16 Vantage Point Drive which as noted above is utilising garages and a carport fully reliant on the access corridor remaining available for use. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Supporting the delivery of Gold Coast 2022 We plan for the future of the City. We manage the City responsibly. 7 FUNDING AND RESOURCING REQUIREMENTS Initially, all costs relating to revocation actions and ongoing repairs and maintenance of the proposed access corridor will be met by landowners having the benefit of the access. 8 RISK MANAGEMENT Not Applicable. 9 STATUTORY MATTERS Not Applicable. 10 COUNCIL POLICIES Not Applicable.


ITEM 3 (CONTINUED) PROPOSED MANAGEMENT ARRANGEMENTS FOR A MINOR AREA OF TALLEBUDGERA CREEK CONSERVATION PARK (LOT 1 ON WD804791) TO ADDRESS AN HISTORIC ANOMALY RELATING TO THE GRANT OF PRIVATE ACCESS RIGHTS PN88908/16(P1) 11 DELEGATIONS Not Applicable. 12 COORDINATION & CONSULTATION Not Applicable. 13 STAKEHOLDER IMPACTS Not Applicable. 14 TIMING Subject to Council’s resolution of this report, the recommendations will be implemented immediately. 15 CONCLUSION A number of historic arrangements exist such that a small area of about 400 square metres of the Tallebudgera Creek Conservation Park is used as a rear access point to private freehold parcels at 12 – 16 Vantage Point Drive Burleigh Heads. For the reasons outlined in the background to this report, it seems possible that the small area of 400 square metres can be revoked from the Tallebudgera Creek Conservation Park and placed under City control. If that can occur, formalisation of access arrangements for 12 – 16 Vantage Point Drive can occur and continue into the future. The recommendations in this report reflect that Council resolve to formalise the access arrangements.


ITEM 3 (CONTINUED) PROPOSED MANAGEMENT ARRANGEMENTS FOR A MINOR AREA OF TALLEBUDGERA CREEK CONSERVATION PARK (LOT 1 ON WD804791) TO ADDRESS AN HISTORIC ANOMALY RELATING TO THE GRANT OF PRIVATE ACCESS RIGHTS PN88908/16(P1) 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 The City makes application to the Department of Environment and Science for the

revocation of the approximate area at Attachment 4 from the Tallebudgera Creek Conservation Park.

2 Subject to 1 proceeding to finality, the owner of 14 Vantage Point Drive be offered a licence to utilise the revocation area as a secondary access to their parcel, the terms of which to be consistent with those outlined in the background to this report.

3 Relevant notations be placed on the property records for 12 – 16 Vantage Point Drive pertaining to Council’s resolution such that all future owners of the respective parcels are made aware of the history and potential ongoing licence aspects pertaining to the rear access arrangements for each parcel.

4 Relevant notations be placed on the property records for 18 – 20 Vantage Point Drive confirming that historic arrangements for a rear access through the Tallebudgera Creek Conservation Park will not be supported by Council into the future.

Author: Authorised by:

Brendan Madden Glen Potter Executive Coordinator Property Management Director Organisational Services 17 October 2019

TRACKS REF: 74716170 COMMITTEE RECOMMENDATION ETG19.1121.003 moved Cr Owen-Jones seconded Cr Boulton 1 The City makes application to the Department of Environment and Science for

the revocation of the approximate area at Attachment 4 from the Tallebudgera Creek Conservation Park.

2 Subject to 1 proceeding to finality, the owner of 14 Vantage Point Drive be offered a licence to utilise the revocation area as a secondary access to their parcel, the terms of which to be consistent with those outlined in the background to this report.

3 Relevant notations be placed on the property records for 12 – 16 Vantage Point Drive pertaining to Council’s resolution such that all future owners of the respective parcels are made aware of the history and potential ongoing licence aspects pertaining to the rear access arrangements for each parcel.

4 Relevant notations be placed on the property records for 18 – 20 Vantage Point Drive confirming that historic arrangements for a rear access through the Tallebudgera Creek Conservation Park will not be supported by Council into the future.

CARRIED


Attachment 1


Attachment 2


Attachment 3

Property Address Property Description Current Use Purchase Date Access in Use Comments

12 Vantage Point Drive Lot 32 on RP97208 House May 2016 X Pole house only No use of access

14 Vantage Point Drive Lot 31 on RP97208 House June 2014 Garages

Access in use DA on hold due to access issue

16 Vantage Point Drive Lot 30 on RP97208 House November 2005 Garages and carport

Access in use

18 Vantage Point Drive Lot 29 on RP97208 Vacant May 2011 X DA 2010 now lapsed

PN29176/13/DA1 No use of access

20 Vantage Point Drive Lot 28 on RP97208 House March 2011 X No use of access


Attachment 4


ITEM 4 ORGANISATIONAL SERVICES POTENTIAL DISPOSAL OF COUNCIL FREEHOLD LOT 8 ON BUP103758, ‘CAVILL PARK’, 46 CAVILL AVENUE SURFERS PARADISE PN198105/856(P1) Refer 1 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To advise Council on the history of ownership and use of Lot 8 on BUP103758 and to recommend to Council that the lot be deemed surplus to City requirements and thus, suitable for disposal by public tender. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION History of lot The ‘Cavill Park’ office complex at 46 Cavill Avenue Surfers Paradise was developed in the late 1970s, with the Town Planning Permit at that time requiring the developer of the site to provide for an area on the ground floor of the building to be available for public toilets coupled with an adjacent community space. At that time, negotiations between the developer and Council resulted in the City being responsible for cleaning, supplies and maintenance of the toilets, together with costs attributable to power and water. Subsequent to the development of the site, a number of ownership changes for the office complex proceeded with each new owner enjoying the benefit of Council’s involvement with the public toilet area. However, in 1995 the then owner of the site raised for the first time an intention to strata title the office complex. Ultimately, strata titling did proceed and with that Lot 8 on BUP103758 having an area of 69 square metres was created and in time transferred into the ownership of the City. Attachment 1 shows Lot 8 in the context of the ‘Cavill Park’ office complex and adjacent Cavill Park (Council freehold Lot 2 on RP167713). Points of note in respect of Lot 8 in respect of the strata title scheme and/or development approval for the site: Lot 8 has a ‘unit entitlement’ (both contribution and interest) of 1 out of the aggregate

entitlements for the office complex of 704 within the community title scheme; Lot 8 is not otherwise mentioned in the community title scheme in respect of use

rights, car parking allocation, exclusive use rights etc; and Lot 8 is noted in the original Town Planning Permit for the site as an area to be used

for public toilet / community purposes.


ITEM 4 (CONTINUED) POTENTIAL DISPOSAL OF COUNCIL FREEHOLD LOT 8 ON BUP103758, ‘CAVILL PARK’, 46 CAVILL AVENUE SURFERS PARADISE PN198105/856(P1) Since ownership of Lot 8 came to the City, the owners of the ‘Melbas Nightclub’ (Melbas) within the ‘Cavill Park’ complex have held a Licence from the City over the lot. That Licence has served two purposes – firstly from the City’s perspective, for the public toilets to be managed on a daily basis by an entity other than the City within the ‘Cavill Park’ complex and secondly from the perspective of the nightclub owner, to secure for their nightclub additional toilet facilities for their patrons. More recently though, changed liquor licensing laws have made the toilet facilities less beneficial to the nightclub owner, such that the focus has changed to ascertaining whether a public toilet facility is in fact required at the site. On this aspect, the owner of the nightclub site advised that the use of Lot 8 has degenerated in respect of public use, the site being greater utilised by vagrants during early morning hours. With that situation having developed over time, management of the site has reverted almost solely to that of a nightclub extension rather than as a true public toilet facility. With that in mind the owner of Melbas has corresponded with the City over the last few years seeking to acquire Lot 8. Lot 8 currently lies in the asset custodianship of the City Assets Branch within the Transport and Infrastructure Directorate and that Branch now confirms that Lot 8 is surplus to City needs as a public toilet facility. That view no doubt prevails on the basis that the purchase application by the nightclub owner makes the point that their nightclub, restaurant and bar is open during the hours of 11.00am to 3.00am daily with ample toilet facilities available for patrons and the wider public within their premises. The point is also made that one-off events outside of those hours in the City’s adjacent Cavill Park prove to be trading events for their businesses where again, more than adequate toilet facilities exist for precinct users. Disposal process In the event that Council resolved that Lot 8 is surplus to City needs and thus available for disposal, a sale process would need to proceed consistent with the provisions in the Local Government Regulation – that is, sale by way of public tender. Noting the history of the subject site, necessary comment would need to be encapsulated in tender documentation identifying that it would be a purchaser’s responsibility to lodge a Minor Change application to be assessed under the City Plan if Lot 8 was to be repurposed to a use other than as public toilets and adjacent community room uses. Further, tender documentation would also need to identify that Lot 8 attracts a unit entitlement of 1 only within the ‘Cavill Park’ community title scheme which would on face value need to be suitably amended should repurposing of the site be pursued. The recommendations in this report deal with each of the above issues. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Supporting the delivering of Gold Coast 2020

A We plan for the future of the city We make good choices that create a better future for the Gold Coast community B We manage the city responsibility Our stewardship of the city provides value for money for ratepayers


ITEM 4 (CONTINUED) POTENTIAL DISPOSAL OF COUNCIL FREEHOLD LOT 8 ON BUP103758, ‘CAVILL PARK’, 46 CAVILL AVENUE SURFERS PARADISE PN198105/856(P1) 7 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 8 RISK MANAGEMENT Not Applicable.

9 STATUTORY MATTERS Any sale of Lot 8 would be pursued under the tender processes as prescribed in the Local Government Regulation. 10 COUNCIL POLICIES Not Applicable. 11 DELEGATIONS Not Applicable. 12 COORDINATION & CONSULTATION Not Applicable. 13 STAKEHOLDER IMPACTS Transport and Infrastructure Directorate has confirmed that Lot 8 is now surplus to City needs. 14 TIMING Subject to Council resolution, the recommendations in this report can be implemented immediately. 15 CONCLUSION The City currently holds freehold title to Lot 8 on BUP103758 in the ‘Cavill Park’ office complex in Surfers Paradise. Lot 8 has since construction of the office complex in the late 1970s been used as a public toilet facility with a small adjacent community use area. The public toilet facility within Lot 8 falls into the custodianship of the Transport and Infrastructure Directorate with that Directorate advising that Lot 8 is now surplus to City needs. Accordingly, the recommendations in this report reflect that Council resolve that Lot 8 can be disposed of by way of public tender.


ITEM 4 (CONTINUED) POTENTIAL DISPOSAL OF COUNCIL FREEHOLD LOT 8 ON BUP103758, ‘CAVILL PARK’, 46 CAVILL AVENUE SURFERS PARADISE PN198105/856(P1) 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Lot 8 on BUP103758 having an area of 69 square metres within the ‘Cavill Park’

office complex be deemed surplus to City needs and accordingly, for the lot to be disposed of by way of public tender.

2 That tender documentation make reference to both City Plan and community title scheme issues relating to the current use of the lot.


Brendan Madden Glen Potter Executive Coordinator Property Management Director Organisational Services 22 October 2019

TRACKS REF: 74751196v2 COMMITTEE RECOMMENDATION ETG19.1121.004 moved Cr Owen-Jones seconded Cr Boulton 1 That Lot 8 on BUP103758 having an area of 69 square metres within the ‘Cavill

Park’ office complex be deemed surplus to City needs and accordingly, for the lot to be disposed of by way of public tender.

2 That tender documentation makes reference to both City Plan and community title scheme issues relating to the current use of the lot.

CARRIED


Attachment 1


CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION That the Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following items for the reasons shown:-

Item Subject Reason

5 Gold Coast Marathon (2020 and 2021) Contract / Prejudicial Matter

PROCEDURAL MOTION That the Committee move into Open Session.

783rd Council Meeting 26 November 2019 Events Tourism And Governance Committee Meeting 21 November 2019 Adopted Report

ITEM 5 OFFICE OF THE CHIEF OPERATING OFFICER GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019 1 BASIS FOR CONFIDENTIALITY 1.1 I recommend that this report be considered in Closed Session pursuant to section

275 (1) of the Local Government Regulation 2012 for the reason that the matter involves:

(e) contracts proposed to be made by it; and (h) other business for which a public discussion would be likely to prejudice the

interests of the local government or someone else, or enable a person to gain a financial advantage.

1.2 I recommend that the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to consider continued investment into the Gold Coast Marathon (2020 and 2021) to be based out of the Broadwater Parklands in July annually. 4 PREVIOUS RESOLUTIONS At its meeting on 7 December 2016, Council resolved the following:

That the report/attachment be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

That the Chief Executive Officer be authorised to negotiate and execute an appropriate Agreement in relation to financial support of the 2017, 2018 and 2019 Gold Coast Marathon subject to:

a listing the event with detailed information and images on

www.moregoldcoast.com.au b engaging with Gold Coast Tourism to:

i coordinate marketing and promotion of the event so as to attract additional visitors to the city and

ii deliver out-of-region visitors with a range of tourism related products to support overnight stays and expenditure around the event;

c undertaking to provide a comprehensive Post Event Report d agreement on KPIs and benefits, that includes the waiving of any hire fees of

the Parklands

That the source of funds be ED5710O006 "Major Events Support" at $180,000 (plus GST) cash contribution and $25,000 (plus GST) in-kind support annually, for the 2017, 2018 and 2019 events.


ITEM 5 (Continued) GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019 5 DISCUSSION 5.1 Applicant Cameron Hart Chief Executive Officer Events Management Queensland (EMQ) Level 2, 105 Upton Street Bundall QLD 4217 Phone – 07 5668 9888 [email protected] 5.2 Event Background The Gold Coast Marathon (GCM) was first staged in 1979 with just 691 runners and has grown to become one of the biggest and best holiday marathons in the world. The event now boasts the reputation as the ‘go to’ marathon for northern hemisphere runners in July to escape their summer heat. The primary aim of the event is to drive tourism impacts for the Gold Coast by delivering a sustainable world class marathon experience for visitors and locals. In 2014, the GCM became the first Australian marathon race to attain an International Association of Athletics Federations (IAAF) Road Race Gold Label – putting it in esteemed company around the world with only 26 events having the status. The criteria for whether a road race receives a label designation is based on six general areas being race organisation, course measurement, timing and results, media services, medical provisions and the quality of the international field of elite runners. The great appeal of the GCM for visiting runners can be attributed to its Gold Label and reputation for superior quality of delivery, its faster and flatter course, its climate and temperature, and the Gold Coast as a destination. Feedback from travel agencies in China, Taiwan, Japan and South East Asia confirm the strong appeal of the event on the back of the Gold Label status, as does the continued growth from these international markets. Now six years on, elite runners and their managers are pro-actively reaching out to race management for opportunities to race on the Gold Coast. The GCM features events for all ages and abilities. Conducted over two days, the program includes the full 42.195km Gold Coast Marathon, Asics Half Marathon, Southern Cross University 10km Run, the Gold Coast Airport Fun Run and 4km and 2km Garmin Junior Dash races for the kids, plus 15km and 42km wheelchair races. In the three days preceding the Marathon event, over 80 exhibitors will join in the ASICS Sports and Leisure Expo held at the Gold Coast Convention and Exhibition Centre, the largest race expo of any running event in Australia with over 30,000 visitors over the duration. Support events include –

an elite athlete press conference; gala dinner for 200 key stakeholders;


ITEM 5 (Continued) GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019

two day corporate hospitality suite facilitating networking opportunities for business and tourism leaders.

THE GCM is managed by Events Management Queensland (EMQ), who are wholly owned by the Queensland Government through Tourism and Events Queensland (TEQ). 5.3 Marketing / Broadcast

In recent years the most successful marketing campaigns have been digital and social. Looking ahead, these media channels will be prioritised to create high level engagement direct to potential consumers, complimented by direct tourism marketing into domestic and international regions where aviation access into the Gold Coast Airport is easy. Images of the Gold Coast are streamed across the globe during the three-hour race day webcast which in 2019 attracted 250,000+ viewers. Post event, runners and supporters can relive the experience with an hour-long TV broadcast nationally on Australian Television via Channel Nine which reached 114,000 viewers. Internationally, the same program is expected to achieve international coverage of 1,000 hours by reaching over 800 million homes in over 120 countries. Successive post event surveys revealed the key motivators for runners are-

completing a personal challenge; location and course; participating in a major event.

These three key motivators will be used to generate imagery and copy to build a desire to participate in the GCM and create engagement between the event and potential runners. Once the engagement has been made, regular communication and quality content will be used to convert desire into action which leads to registration. REDACTED Key to this will be the appeal of the event and ability to achieve personal best times and challenge oneself in a resort marathon. Appealing destination imagery will be used alongside visuals of the event and tourism partner websites will be linked to the event homepage and key tourism messages and images used on social media channels. Destination Gold Coast (DGC) recognises that the GCM contributes significant economic value to the visitor economy and has worked with both EMQ and TEQ for many years to support both domestic and international visitation. In 2020, DGC will continue to actively profile the GCM throughout domestic sports and leisure event marketing activity. Internationally, DGC will partner with TEQ to deliver a highly targeted campaign with one of Japan’s leading travel wholesalers. A standalone investment for targeted activity in mainland China has also been committed too, with the activity currently in the development phase.


ITEM 5 (Continued) GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019 Both EMQ and TEQ have and will continue to be consulted around this investment, to ensure it compliments other activities being undertaken in the market. 5.4 Participation Over 26,000 runners participated in the 2019 GCM, with organisers projecting this to rise towards 28,000 in 2020 (refer to Figure 1 below). Some standout facts within this include- 5.4 Participation Over 26,000 runners participated in the 2019 GCM, with organisers projecting this to rise towards 28,000 in 2020 (refer to Figure 1 below). Some standout facts within this include-

a record number of international entrants (3678 in total) with the following new markets appearing-

o Indonesia (262) o Kenya (20) o Singapore (525) o Slovakia (10)

77% of all runners were visitors to the Gold Coast.

Figure 1 – Total event participation 2017 - 2020 5.5 Investment Requested EMQ is seeking an annual investment of $300,000 for the 2020 and 2021 editions of the GCM. This request is an increase of $95,000 on what was provided annually (2017 to 2019).

24902

27126

26287

28000

23000

23500

24000

24500

25000

25500

26000

26500

27000

27500

28000

28500

2017 2018 2019 2020 (projected)


ITEM 5 (Continued) GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019 The recognised challenges facing distance running events in Australia are a diluted market place and proliferation of competing events with declining domestic participation per event. Growth from within Australia will be extremely challenging, so a focus will be on maintenance with limited domestic growth. REDACTED Therefore, the funding will be utilised to:

REDACTED

cover the Parks related fees which have been waived for every event to date. An initial

quote has been provided and park usage costs are expected to be in the vicinity of $25,000 in 2020.

In 2019, the total City investment into the GCM was $205,000 made up of-

$158,050 cash $46,950 in-kind (including items such as conning crew, asphalt ramp install / removal,

banner bookings, flag poles and bases, plumbing installations, IT requirements, parks rectification, street sweeper).

An increased investment to $300,000 in 2020, is projected to be made up of-

$228,050 cash ($70,000 increase) $71,950 in-kind (inclusive of $25,000 park fees).

REDACTED 5.6 Outcomes / Benefits REDACTED The GCM also contributes to the Gold Coast building its reputation as a global event destination, demonstrated by these indicators-

1,006,398 unique website visitors generating 1.5 million sessions from 219 countries; 54 different countries were represented as actual participants in the event; a total of 138 media were accredited in 2019;


ITEM 5 (Continued) GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019

between the race webcast and the packaged TV broadcast, international coverage of 1,000 hours in over 800 million homes across 120 countries was achieved.

EMQ will provide the City the following benefits:

logo association on all GCM marketing collateral including but not limited to posters, website, electronic promotional material, finishing gate/tower and billboards;

twenty items of signage and banners containing a City message in prominent locations such as main public entrances, viewing areas, media interviewing areas, presentation backdrops and in locations likely to receive television exposure;

twenty VIP invitations to the event functions; recognition of support incorporated in public address announcements at the event; Mayoral welcome message / advertising space on the GCM website and race guide; hyperlinks on the GCM homepage to the websites of City and DGC; a 3m x 3m powered expo within the Asics Sport and Leisure Expo; two City stories in the GCM E-newsletter including related image (120,000+

distribution). 5.7 Performance Incentive Payment REDACTED


ITEM 5 (Continued) GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019 REDACTED 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND OPERATIONAL PLAN

2.0 Prosperity built on a strong diverse economy 2.5 We are a globally recognised tourism destination.

Our city attracts visitors from all over the world. 3.0 People contribute to a strong community spirit

3.2 We are proud of our city. 3.6 We are an active and healthy community.

We enjoy our city and its enviable climate.

7 FUNDING AND RESOURCING REQUIREMENTS $213,200 is available in Budget Centre ED5710O006 Major Event Support, Cost Centre 1005308 (GC Marathon). The $86,800 increase (achieving a $300,000 total) is available in the Events Reserve. 8 RISK MANAGEMENT Operational risks regarding the event will be assessed and addressed as detailed planning and preparation evolves. 9 STATUTORY MATTERS Not Applicable.


ITEM 5 (Continued) GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019 10 COUNCIL POLICIES Not Applicable. 11 DELEGATIONS Not Applicable. 12 COORDINATION & CONSULTATION The following internal and external stakeholders have been involved to date:

13 STAKEHOLDER IMPACTS The event will have a significant positive impact on the tourism sector. 14 TIMING The GCM is generally held on the first weekend of July annually. The dates in 2020 are 4 and 5 July. The Gold Coast Major Events calendar for July 2020 is currently as follows-

Major Event 2020 Dates Gold Coast Marathon 4 and 5 July Viva Surfers Paradise 10 – 19 July World Junior Squash Championships 19 – 30 July World Underwater Hockey Championships 20 July to 1 Aug Groundwater Country Music Festival 24 – 26 July

15 CONCLUSION The Gold Coast Marathon (GCM) was first staged in 1979 with just 691 runners and has grown to become one of the biggest and best holiday marathons in the world. The GCM is managed by Events Management Queensland (EMQ), who are wholly owned by the Queensland Government through Tourism and Events Queensland (TEQ). The GCM features events for all ages and abilities. Conducted over two days, the program includes the full 42.195km Gold Coast Marathon, Asics Half Marathon, Southern Cross University 10km Run, the Gold Coast Airport Fun Run and 4km and 2km Garmin Junior Dash races for the kids, plus 15km and 42km wheelchair races. Over 26,000 runners participated in the 2019 GCM, with organisers projecting this to rise towards 28,000 in 2020. 77% of all runners were visitors to the Gold Coast.

Name and/or Title of the Stakeholder Consulted

Directorate or Organisation Stakeholder Satisfied With Content of Report

Kate Barr, Sports and Leisure Events Manager

Destination Gold Coast Yes

Jan McCormick, Chief Executive Officer

Major Events Gold Coast Yes


ITEM 5 (Continued) GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019 In recent years the most successful marketing campaigns have been digital and social. Looking ahead, these media channels will be prioritised to create high level engagement direct to potential consumers, complimented by direct tourism marketing into domestic and international regions where aviation access into the Gold Coast Airport is easy. EMQ is seeking an annual investment of $300,000 for the 2020 and 2021 editions of the GCM. This request is an increase of $95,000 on what was provided annually (2017 to 2019). REDACTED It is recommended that any cash increase is linked to a performance incentive payment. 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the applicant (Events Management Queensland) be advised that Council will invest

a maximum of $300,000 (plus GST) annually into the 2020 and 2021 Gold Coast Marathon via:

a in-kind support (City products and services required to support the event, inclusive of park related fees / post event rectification costs);

b balance payable in cash (inclusive of a performance incentive payment).

2 The investment is subject to:

a all statutory approvals and site approvals secured for the event;

b Council and Events Management Queensland entering into a formal agreement on terms satisfactory to the Chief Executive Officer.

3 The Chief Executive Officer be authorised to negotiate and execute an Agreement detailing a comprehensive list of benefits and deliverables, including a suite of additional benefits in connection with the increased cash investment.

4 That support of these events is an exercise of Council’s Beneficial Enterprise Powers.


Steve Brook Joe McCabe Executive Officer Events (Acting) Chief Operating Officer 8 November 2019

TRACKS REF: 74858155


ITEM 5 (Continued) GOLD COAST MARATHON (2020 AND 2021) CS105/274/02/2019 COMMITTEE RECOMMENDATION ETG19.1121.005 moved Cr Owen-Jones seconded Cr Boulton 1 That the applicant (Events Management Queensland) be advised that Council will

invest a maximum of $300,000 (plus GST) annually into the 2020 and 2021 Gold Coast Marathon via:

a in-kind support (City products and services required to support the event, inclusive of park related fees / post event rectification costs);

b balance payable in cash (inclusive of a performance incentive payment).

2 The investment is subject to:

a all statutory approvals and site approvals secured for the event;

b Council and Events Management Queensland entering into a formal agreement on terms satisfactory to the Chief Executive Officer.

3 The Chief Executive Officer be authorised to negotiate and execute an Agreement detailing a comprehensive list of benefits and deliverables, including a suite of additional benefits in connection with the increased cash investment.

4 That support of these events is an exercise of Council’s Beneficial Enterprise Powers.

CARRIED


These Pages

Numbered 1 to 61

Constitute The Adopted Report Of The Meeting

Of The Events Tourism and Governance Committee

Held Thursday 21 November 2019

for the Events Tourism and Governance Committee Meeting€¦ · RECOMMENDATION It is recommended...

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