Notice of Audit Committee Meeting · 20/08/2018 · Mr Sean Tu . Staff Present: Martin Cooper,...

Audit Committee Agenda 20 August 2018

Notice of Audit Committee Meeting

NOTICE IS HEREBY GIVEN in accordance with Section 87 of the Local Government Act 1999, that a meeting of the

AUDIT COMMITTEE

of the

CITY OF BURNSIDE

will be held in the Council Chamber 401 Greenhill Road, Tusmore

on

Monday 20 August 2018

at 6.00 pm Paul Deb Chief Executive Officer

1


2


Audit Committee

Agenda

20 August 2018 at 6.00 pm Council Chamber

401 Greenhill Road, Tusmore

Members: Mr David Powell - Chair (Independent) Mayor David Parkin Councillor Davis Mr Roberto Bria (Independent) VACANT (Independent)

Guests: Michael Salked, Project Director, Brown Hill Keswick Creek Stormwater Project

1. Apologies

Councillor Davis

2. Leave of Absence

Nil

3. Confirmation of Minutes p5

Recommendation

That the attached Minutes of the Audit Committee meeting held on 18 June 2018

be taken as read and confirmed.

Presentation from Michael Salked, Project Director, Brown Hill Keswick Creek Stormwater Project

4. Action List and Policy Tracking Table Review p9

5. Reports of Officers

5.1 Internal Audit Update – Mobile Device Management (Operational) p27 Attachment A

5.2 External Audit Update (Operational) p47 Attachment A

3


5.3 Application for Additional Loan Facilities (Operational) p63 Attachment A

5.4 Update to Procurement Policies (Operational) p69 Attachment A Attachment B Attachment C Attachment D Attachment E

5.5 Financial Delegations Policy – Review (Operational) p118 Attachment A Attachment B

5.6 Update to Risk Management Policy (Strategic) p129 Attachment A Attachment B

5.7 ERA Water (Standing Item) Nil reports

6. Confidential Items

Nil

7. Other Business

7.1 Forward Program p139

8. Date of Next Meeting

Recommendation

That the Audit Committee convenes on the 22 October 2018 acknowledging this isin caretaker period.

9. Closure

4

Audit Committee Minutes 18 June 2018

Audit Committee Minutes

18 June 2018 at 6.00 pm

Council Chamber 401 Greenhill Road, Tusmore

Members Present: Mr David Powell - Chair Mayor David Parkin Mr Roberto Bria Mr Sean Tu

Staff Present: Martin Cooper, General Manager Corporate and Development Apologies Councillor Henry Davis Leave of Absence Nil Confirmation of Minutes Recommendation A4113 That the Minutes of the Audit Committee meeting held on 9 April 2018 be taken as read and confirmed.

Moved Roberto Bria, Seconded Sean Tu CARRIED Presentation from Mr Michael Livori, CEO, Eastern Health Authority The Chair welcomed Michael Livori who attended the meeting as part of a rotating series of presentations from Council subsidiaries Action List and Policy Tracking Table Noted

15


Reports of Officers

Internal Audit Update (Operational) (5.1)

A4114

1. That the Report be received.

2. That the Audit Committee notes the Internal Audit report for the Bushfire ManagementPlan and the Administration’s responses to the recommendations.

Moved Mayor Parkin, Seconded Roberto Bria CARRIED

2018 Work Health Safety and Return to Work Plan (Strategic) (5.2)

A4115

That the Report be received.

Moved Sean Tu, Seconded Roberto Bria CARRIED

Eastern Regional Alliance Water – Draft 2018/19 Budget and Long Term Financial Plan (Operational) (5.3)

A4116


2. That the Audit Committee notes the draft 2018/19 Eastern Region Alliance WaterBudget and Long Term Financial Plan and forwards to Council for approval, noting thedraft Budget result for 2018/19 is a deficit of $375k.

3. The Audit Committee notes that the ERA Water Board has yet to determine a dividendor rebate policy for the subsidiary. The Committee notes that the project proceeded onthe basis that:

3.1 each participating council guarantees payment for an annual volume of waterirrespective of whether the water was delivered or required; and

3.2 the price paid for water would be either the SA Water price or a lower price which ensured that the subsidiary did not make a profit.

4. The Audit Committee notes that any change to this policy will disadvantage the City ofBurnside, which guarantees the largest volume of water and therefore carries thegreatest financial risk. It recommends that the City of Burnside request the ERA WaterBoard to confirm the above distribution policy and that Burnside not agree to any policyvariation.

5. The Audit Committee notes that the ongoing operating costs of the ERA Watersubsidiary in the LTFP are considerably higher than forecast in the Prudential Reviewon which the project is based (Fixed Operating Costs $382k compared with $300k andOperating Costs of $377k compared to $250k).

26


6. The Audit Committee recommends that Council seek, from the ERA Water Board, a detailed analysis and justification of the increased operating costs.

7. That the Audit Committee note that ERA Water is budgeting for sales of 214 mega litres to constituent Councils in 18/19.

8. The Audit Committee recommends that Council encourages the Board of ERA Water to immediately seek water sales to third parties to mitigate risk.

Moved Mayor Parkin, Seconded Sean Tu CARRIED Policy Review – Procurement Policies (Operational) (5.4) A4117 1. That the Report be received.

2. That the Administration note the comments from the Committee and re-present the Procurement Governance Framework, the Tender and Contract Engagement Policy and the Unsolicited Proposal Treatment Policy and re-presents these to the Audit Committee meeting in August 2018.

Moved Roberto Bria Seconded Sean Tu CARRIED 2018/19 Annual Business Plan and Budget (Strategic) (5.5) A4118 1. That the Report be received.

2. That the Audit Committee notes that the draft 2018/19 Annual Business Plan and Budget satisfies Council’s financial sustainability and performance measures and supports its presentation to Council for adoption.

3. That the draft (new version) of the Rating Policy is noted and the Committee supports it being presented to the Council for consideration and adoption.

Moved Roberto Bria, Seconded Sean Tu CARRIED Confidential Items Nil Other Business Forward Program Noted

37


Date of Next Meeting The Audit Committee to convene on the 20 August 2018 and 15 October 2018 (Third Monday of the month), consistent with the Terms of Reference. Closure The meeting concluded at 8.34pm. Minutes confirmed this day of 2018

Chairperson

48

1

AUDIT COMMITTEE MEETING APRIL 2018 – ACTIONS

MTG RESOLUTION//REQUEST WHO DUE RES NO.

COMMENT

1. 6/10/2009 Regional Subsidiary Quarterly Financial Reports That the Audit Committee requests that each regional subsidiary provide a report on its financial status at quarterly intervals.

GMFG Ongoing A0117 • Report quarterly

2. 7/2/2012 Risk Management Policy and Risk Management Framework (5.3) 5. That the Administration report all new and emerging strategic and

operational risks that are rated as High or Extreme to the Audit Committee on an ongoing basis.

GMCD Ongoing A0225 • Ongoing to be reported on an annual basis and when High and Extreme risks identified

3. 3/4/2012 15/2/2016

Internal Policy & Procedure Framework (5.5) 3. That the Council Policy Review Tracking is provided to the Audit

Committee as a standing agenda item until all Policies and Procedures are up to date.

That the Council Policy and Protocols Tracking Table is provided to the Audit Committee once per financial year (as opposed to every Audit Committee Meeting).

GMCD Ongoing A0251 • Standing Item

• Reported April 2018

9

2

AUDIT COMMITTEE – KEY DATES EXCEPTIONS / URGENT

DATE (each year)/

FREQUENCY

COMMENTARY

ACT REFERENCE * All references are to Local Government Act

1999 unless stated otherwise

COMMENTS/LAST COMPLETED

NEXT REVIEW/DUE DATE

RESPONSIBLE OFFICER

None

10

3

AUDIT COMMITTEE – UPCOMING KEY DATES SNAPSHOT (PRIOR TO NEXT AUDIT COMMITTEE MEETING)

DATE (each year)/

FREQUENCY

COMMENTARY





RESPONSIBLE OFFICER

Within two (2) years after each general election

Council to review strategic management plans (including long term financial and infrastructure/asset management plans) Audit committee to propose and provide information relevant to review of Council's strategic management plans

Section 122(4)(b) Section 126(4)(ab)

2017/18 LTFP adopted in November 2017 Asset Management Plans were adopted in November 2016 Strategic Community Plan adopted in November 2016

2018/19 LTFP will be presented to Council by March 2019

GMCD GMFG

Annually

Review of Business Plans of subsidiaries – in conjunction with Council or Constituent Councils.

Clauses 8(4) and 24(4) of Schedule 2

- Eastern Health Authority (May 2018) - East Waste (May 2018) - Highbury Landfill Authority (May 2018)

The Budget reviews for each of the subsidiaries for 2018/19 will be tabled as and when received.

GMCD GMFG

11

4

DATE (each year)/

FREQUENCY

COMMENTARY





RESPONSIBLE OFFICER

- ERA Water (June 2018)

30 September – 31 May (Inclusive)

Period in which a Council, single Council subsidiary or regional subsidiary must consider at least twice a report (where at least one report is considered before the consideration of the report under Regulation 9(1)(b) showing a revised forecast of its operating and capital investment activities for the relevant financial year compared with the estimates for those activities set out in the budget presented in a manner consistent with the note in the Model Financial Statements entitled Uniform Presentation of Finances. Regional subsidiaries:

Eastern Health Authority Eastern Waste Management Authority Highbury Landfill Authority ERA Water

Regulation 9(1)(a) of the Local Government (Financial Management) Regulations 2011

Budget Review 1 for 2017/18 adopted by Council on 24 October 2017. Budget Review 2 for 2017/18 adopted by Council on 20 February 2018. Budget Review 3 for 2017/18 adopted by Council on 22 May 2018.

2018/19 Annual Business Plan and Budget adopted 26 June 2018

GMCD GMFG

30 November – 15 March (inclusive)

Period in which a council, council subsidiary or regional subsidiary must consider a report showing a revised forecast of each item shown in its budgeted financial statements for the relevant financial year compared with the estimates set out in the budget presented in a manner consistent with the Model Financial Statements. The report must also include revised forecasts for the relevant financial year of the council’s operating surplus

Regulation 9(1)(b) & (2) of the Local Government (Financial Management) Regulations 2011

Budget Review 1 for 2017/18 adopted by Council on 24 October 2017. Budget Review 2 for 2017/18 adopted by Council on 20


GMCD GMFG

12

5

DATE (each year)/

FREQUENCY

COMMENTARY





RESPONSIBLE OFFICER

ratio, net financial liabilities ratio and asset sustainability ratio compared with estimates set out in the budget presented in a manner consistent with the note in the Model Financial Statements entitled Financial Indicators

February 2018. Budget Review 3 for 2017/18 adopted by Council on 22 May 2018.

Annually

Capital Expenditure Forecast and Plan That Council supports the spending of budgeted on renewal and replacement of existing assets across the entire budget year and discourages the practice of large outlays of capital spending in the last quarter. That an annual plan be presented to Council each July, showing the anticipated timing of capital projects-both Renewal and Replacement of Existing assets and New and Upgraded assets - and an accurate forecast of capital spend across the year. That a Quarterly report be presented to Council in conjunction with the quarterly budget update, detailing progress against the Annual plan and identifying any major impediments to that progress.

N/A

Budget Review 1 for 2017/18 adopted by Council on 24 October 2017. Budget Review 2 for 2017/18 adopted by Council on 20 February 2018. Budget Review 3 for 2017/18 adopted by Council on 22 May 2018.


GMCD GMFG

Annually as part of budget process -

Commence preparation of draft annual business plan to meet public consultation obligations under sections 123(3) and (4) and adoption requirements of section

Section 123(3)

Draft Annual Business Plan 2018/19

2018/19 Annual Business Plan

GMCD GMFG

13

6

DATE (each year)/

FREQUENCY

COMMENTARY





RESPONSIBLE OFFICER

January (see Part A of this document for specific dates)

123(8) for business plan and budget. See Part A of this document for specific dates Meet the adoption requirements of Section 123(8); an annual business plan and budget must be adopted after 31 March but before 31 August of the financial year

Consultation concluded 2 June 2018. Report being presented to Audit Committee on 18 June 2018.

and Budget adopted 26 June 2018

1 June

Earliest date for single Council subsidiaries and regional subsidiaries to adopt budget for the ensuing financial year.

Clauses 9 and 25 of Schedule 2

- Eastern Health Authority (May 2018) - East Waste (May 2018) - Highbury Landfill Authority (May 2018) - ERA Water (June 2018)


GMCD GMFG

1 June

Earliest date for a Council to adopt an annual business plan and a budget which must be adopted for the ensuing financial year. Note: -except in a case involving extraordinary administrative difficulty must be adopted before 31 August for the

Section 123(8), s123(7)(b), and s122(4)(a)

2017/18 LTFP adopted in November 2017


GMCD GMFG

14

7

DATE (each year)/

FREQUENCY

COMMENTARY





RESPONSIBLE OFFICER

financial year. -annual business plan must be adopted before budget –section 123(7)(b) -Council must review its long-term financial plan and any other elements of its strategic management plans prescribed by regulation as soon as practicable after adopting the council’s annual business plan for a particular financial year.

2018/19 LTFP will be presented to Council by March 2019

30 August

Last date for adoption of annual business plan and budget for that financial year (unless a case of extraordinary administrative difficulty). Note: (1)annual business plan must be adopted before budget –section 123(7)(b) (2) Council must review its long-term financial plan and any other elements of its strategic management plans prescribed by regulation as soon as practicable after adopting the council’s annual business plan for a particular financial year under section 122(4)(a)

Section 123(8), s123(7)(b), and s122(4)(a)

13 June 2017 – adoption of Annual Business Plan and Budget. 2017/18 LTFP adopted in November 2017

2018/19 Annual Business Plan and Budget adopted 26 June 2018 2018/19 LTFP will be presented to Council by March 2019

GMCD GMFG

15

8

DATE (each year)/

FREQUENCY

COMMENTARY





RESPONSIBLE OFFICER

Yearly

Annual Community Survey

November 2018

November 2019

CEO

Annually

Council to determine whether to fix maximum increases in general rates on principal place of residence

Section 153(3)

13 June 2017 – adoption of Annual Business Plan and Budget.


GMCD GMFG

1 June

Earliest date for declaration of a general rate – provided it is after adoption of the annual business plan and budget. Note: except in a case involving extraordinary administrative difficulty a Council must not declare a general rate after 31 August in that financial year.

Section 153(5)(a), (b)

13 June 2017


GMCD GMFG

1 June

Earliest date upon which a separate rate may be declared (unless it has previously been declared for more than one year) for the ensuing financial year.

Section 154(6)

13 June 2017


GMCD GMFG

29 August

Last date for submission of ordinary return by all Council

Section 66

August 2017

August 2018

CEO

16

9

DATE (each year)/

FREQUENCY

COMMENTARY





RESPONSIBLE OFFICER

2016 Members.

GMCD

29 August 2016

Last date for submission of ordinary return by the CEO (to the principal member of the Council) and by prescribed officers to the CEO.

Section 114

August 2017

August 2018

CEO GMCD

31 August

Last date for declaring a general rate (except in a case involving extraordinary administrative difficulty) for that financial year.

Section 153(5)(b)

June 2018

June 2019

GMCD GMFG

Annually

Council to determine rate payment dates in September, December, March and June

Section 181(1)

The rate payment dates were determined as part of the 2018/19 Annual Business Plan and Budget adopted 26 June 2018

June 2019

GMCD GMFG

17

10

DATE (each year)/

FREQUENCY

COMMENTARY





RESPONSIBLE OFFICER

Whenever a fee or charge is fixed or varied

Council must update list of fees and charges imposed under section 188 and bring to notice of persons who may be affected.

Section 188(6) and (7)

2018/19 Fees and Charges adopted by Council on 24 April 2018

April 2019

GMCD GMFG

Within twenty one (21) days after the date of adoption of valuations and/or declaration of a Council rate (or service charge)

Council must cause a notice of the adoption of valuations/declaration of rate (or service charge) to be published in the Government Gazette and in a newspaper circulating the area.

Sections 167(6) and 17

July 2018

July 2019

GMCD GMFG

Within 12 months of periodic election

Review Code of Practice relating to the principles, policies, procedures and practices applied in respect of public access to Council and committee meetings including minutes (and other documents)

Section 92(2)

28 July 2015, C10287 12 April 2016, C10602 25 July 2017

May 2019

GMCD

18

11

DATE (each year)/

FREQUENCY

COMMENTARY





RESPONSIBLE OFFICER

Annually Council report in relation to number, type and outcome of applications for internal review under section 270 policy

Section 270(8) 9 August 2016, C10763 14 August 2018

August 2019

GMCD

Annually

Council must cause an up-to-date information statement to be published in a manner prescribed by the Freedom of Information Regulations.

Section 9 of the Freedom of Information Act 1992

July 2017

August 2018

GMCD

19

of 7

Council Policies and Codes

As at July 2018

KEY: GMCD = General Manager Corporate and Development GMPI = Group Manager People & Innovation GMUC = General Manager Urban and Community GMFG = Group Manager Finance & Governance CEO = Chief Executive Officer GMCDS = Group Manager City Development & Safety C = Council MCE = Manager Customer Experience AC = Audit Committee SCEO = Strategic Community Engagement Officer GMOE = Group Manager Operations and Environment GMCC = Group Manager Community Connections GO = Governance Officer GMAI = Group Manager Assets & Infrastructure

LG Act 1999 = Local Government Act 1999 ICAC Act 2012 = Independent Commissioner Against Corruption Act 2012 Dvt Act 1993 = Development Act 1993

Policies which are overdue for review are shown in purple highlight. Due to Caretaker Policy policy amendments will not be presented to Council during the election

period, 12noon 18/09/2018 – November 2018.

Name Type Act Section Legislative Review Requirement

Last Adopted Review Next Review / Timeframe

Responsible Officer

Notes

Access to Development Documentation

Policy Dvt Act 1993 12/12/2017, C11537 1/10/2019 GMCDS

Arts, Culture, Heritage and Recreation Policy

Policy LG Act 1999 14/3/2017, C11078 1/03/2019 GMCC

Asset Management Policy 13/03/2018, C11620 1/03/2020 GMAI

Bluestone Kerbing Policy 14/3/2017, C11069 1/03/2019 GMAI

Building Inspection Policy Dvt Act 1993 08/05/2018, C11676 1/04/2020 GMCDS

Bushfire Hazard Management

Policy Dvt Act 1993; Fire and Emergency Services Act, 2005

10/07/2018, C11751 10/07/2020 GMCDS

Caretaker Policy LG Elections Act; LG Act 1999

91A 27/04/2017, C11157 1/05/2019 GO

Closed Circuit Television [CCTV]

Policy 13/03/2018, C11611 1/03/2020 GMPI

20

of 7



Responsible Officer

Notes

Code of Conduct for Council Employees

Code LG Act 1999 110 Code amended 01/04/2018

CEO; GMCD

Code of Conduct for Council Members

Code LG Act 1999 63 (1) Code introduced 01/09/2013,

CEO; GMCD

Code of Conduct for Development Assessment Panel (and Members of the Development Assessment Commission,

Code Dvt Act 1993 21A Minister adopts Code CEO

Code of Conduct for Volunteers

Policy LG Act 1999 11/7/2017, C11279 1/07/2019 GMPI

Code of Practice – Meetings and documents – Access and Procedures

Code LG Act 1999; LG (Procedures at Meetings Regulations) 2013

Council should, at least once in every financial year, review the operation of the code

10/10/2017, C11442 1/11/2018 GO To be reviewed and presented to the new elected council in December 2018/January 2019

Community Access, Inclusion and Participation Policy

Policy 14/03/2017, C11069 1/03/2019 GMUC

Community Engagement Policy LG Act 1999 S 50(6) & (7)

S50 LG Act, S38 Dvt Act, Part 6 of the Dvt Regs

13/03/2018, C11619 1/03/2020 SCEO

Community Funding Policy Policy LG Act 1999 13/03/2018, C11623 1/03/2020 GMUC

Community Gardens Policy 26/7/2016, C10754 1/07/2018 GMCC Currently being reviewed and will be presented to Council at its 28 August meeting

Complaint Handling Policy LG Act 1999 270(a1)(b) 27/4/2017, C1115 1/04/2019 GMPI

Corporate Credit Card Policy

Policy LG Act 1999 124 28/11/2017, C11506 1/11/2019 GMPI

Council Member Code of Policy LG Act 1999 63 Must be 5/5/2016 1/07/2018 GO Review to be conducted 21

of 7



Responsible Officer

Notes

Conduct Complaint Handling procedures

reviewed within 12 months after a LG Election

after the LG Elections in November 2018.

Council Working Party Policy 12/12/2017, C11535 1/12/2019 GMCD

Customer Service and Public Interaction Policy

Policy 26/06/2018, C11739 1/06/2020 MCE

Dealing with Disruptive Behaviours Policy

Policy 8/2016, C10773 1/08/2018 GO Review to be conducted after the LG Elections in November 2018

Development Delegations Policy Dvt Act 1993 12/12/2017, C11537 1/10/2019 GMCDS

Discretionary Rebate of Rates

Policy 26/7/2016, C10751 1/07/2018 GMFG To be presented to council on 28 August 2018

Elected Member Allowances and Benefits - Allowance Only

Policy LG Act 1999 76(9). 77 25/7/2017, C11305 1/11/2018 GMCD

Elected Member Allowances and Benefits - Policy Only

Policy LG Act 1999 76(9). 77 25/7/2017, C11305 1/11/2018 GO

Elected Member Leave of Absence

Policy LG Act 1999 14/6/2016, C10686 1/06/2018 GO Review to be conducted after the LG Elections in November 2018

Elected Members Policy 27/4/2017, C11163 1/05/2019 GO

Elected Members’ Training and Development

Policy LG Act 1999 80A 12/12/2017, C11535 1/12/2019 GO

Enforcement Policy LG Act 1999; Dvt Act 1993

12/12/2017, C11537 1/12/2019 GMCD; GMUC

Environment & Biodiversity

Policy 28/6/2016, C10710 1/06/2018 GMAI Under review in conjunction with the strategy. It is anticipated that this will be presented to Council in April 2019

Fees and Charges (Non Rates)

Policy 27/6/2017, C11264 1/06/2019 GMPI

Fees and Charges (Non Policy 27/6/2017, C11264 1/06/2019 GMPI 22

of 7



Responsible Officer

Notes

Rates) Waivers, Discounts and Subsidies

Financial Delegation Policy

Policy 13/9/2016, C10807 1/08/2018 GMPI

Fixed Asset Financial Reporting


Flag Flying Policy 08/05/2018, C11682 1/05/2020 GMAI

Footpath Policy Policy 22/8/2017, C11360 1/08/2019 GMAI

Fraud and Corruption Prevention

Policy 22/03/2016, C10578 1/03/2018 GO Will be presented to Council in August 2018

Garden Awards Policy 27/01/2016, C10511 1/01/2018 GMUC Currently being reviewed

and will be presented to

Council at its 28 August

meeting

General Ledger Policy Policy LG Act 1999 124 28/11/2017, C11508 1/11/2019 GMFG

Guidelines and General Approval for the Placement or Affixation of Elections Signs for Federal, State and Local Government Elections Referenda and Polls

Guidelines GO LGA issues the General Approval document

Hedge Encroachment onto Road Reserve

Policy 20/02/2018, C11590 1/02/2020 GMUC

Hire of Community Open Space and Facilities Policy

Policy 22/03/2016, C10590 1/03/2018 GMUC Currently being reviewed


Council at its 11

September meeting

Independent Commissioner Against Corruption (ICAC) – Awareness and Application

Policy ICAC Act 2012 23/02/2016, C10535 1/02/2018 GMFG Presented to Council on 14 August 2018 for rescission

23

of 7



Responsible Officer

Notes

Informal Gatherings Policy LG Act 1999 90(8a), 90(8b)

Next election period

22/03/2016, C10587 1/11/2018 GO

Internal Financial Controls Framework

Policy LG Act 1999 125 08/05/2018, C11675 1/05/2020 GMFG

Internal Review of Council Decisions (Section 270) Procedure

Policy LG Act 1999 270(1) 27/4/2017, C11159 1/04/2019 GMCD

Kerbside Waste Management

Policy 22/7/2016, C9805 1/07/2018 GMUC Currently being reviewed


Council at its 11

September meeting

Leasing & Licensing of Community Facilities

Policy 08/05/2018, C11682 1/05/2020 GMUC

Library Policy 14/3/2017, C11070 1/03/2019 GMUC

Light Fleet Management Policy

Policy 13/9/2016, C10810 1/11/2018 GMPI

Lost and Found Property Policy Unclaimed Goods Act 1987

26/9/2017, C11415 1/05/2019 GMUC

Magill Cemetery Policy 08/05/2018, C11682 1/05/2020 GMUC

Media Policy 13/03/2018, C11619 1/03/2020 SCEO

Memorials and Heritage Places Policy

Policy LG Act 1999; Dvt Act 1993

10/04/2018 C11646 1/04/2020 GMUC

Naming of Public Places Policy LG Act 1999 219(5) 08/05/2018, C11682 1/05/2020 GMUC

Open Space Policy 19/9/2017, C11393 1/08/2019 GMUC

Order Making Policy LG Act 1999 259. 12/12/2017, C11537 1/10/2019 GMUC; GMCD

Parking Policy 20/02/2018, C11590 1/03/2020 GMCDS

Privately Funded Development Plan Amendment

Policy LG Elections Act; Dvt Act 1993

24 & 25 20/02/2018, C11590 1/02/2020 GMCDS

Procurement Governance Framework

Policy LG Act 1999 49 14/6/2016, C10680 1/06/2018 GMFG Being tabled at the 20 August Audit Committee meeting

Prudential Project Policy LG Act 1999 48(aa1) 26/9/2017, C11413 1/08/2019 GMCD 24

of 7



Responsible Officer

Notes

Management

Public Lighting Policy Policy 1/02/2017, C11013 1/02/2019 GMAI

Rating (Annual Review)


Records Management Policy 14/3/2017, C11073 1/03/2019 GMPI

Regulated and Significant Tree Assistance

Policy 12/12/2017, C11537 1/10/2019 GMCDS

Request for Service Policy Policy LG Act 1999 270(a1)(a) 26/6/2018, C11739 1/06/2020 MCE

Risk Management Policy LG Act 1999 134(4)(b) 13/9/2016, C10811 1/09/2018 GMCD

Road and Traffic Management

Policy 11/7/2017, C11274 1/02/2019 GMUC; GMCD

Sale or Disposal of Assets Policy

Policy LG Act 1999; ICAC Act 2012

27/4/2017, C11158 1/04/2019 GMPI

Social Media Policy 03/03/2018, C11619 1/03/2020 SCEO

Sponsorship and Donation Policy

Policy 28/3/2017, C11092 1/03/2019 GMUC

Street Numbering Policy LG Act 1999; AS4819:2003

08/05/2018, C11675 1/04/2020 GMFG

Streetscape Policy 28/02/2017, C11042 1/02/2019 GMAI

Swimming Pool Inspection Policy LG Act 1999 71AA 08/05/2018, C11676 1/04/2020 GMUC

Taxation Policy 124 08/05/2018, C11675 1/05/2020 GMFG

Telecommunications Facilities on Council Land

Policy 24/10/2017, C11454 1/10/2019 GMAI

Tender and Contract Engagement Policy

Policy 14/6/2016, C10680 1/08/2018 GMPI

Treasury Management Policy 28/11/2017, C11514 1/11/2019 GMPI

Unsolicited Proposal Treatment Policy

Policy LG Act 1999 14/6/2106, C10680 1/06/2018 GMFG Being tabled at the 20 August Audit Committee meeting

Urban Tree Management Policy 14/6/2018, C11713 1/05/2020 GMOE

Use of Road Reserves for Commercial Purpose

Policy 08/05/2018, C11676 1/05/2020 GMCDS

Verge Development Policy 24/02/2015, C10062 1/02/2017 GMUC On hold pending Verge Maintenance Service Review – report to be presented to Council at

25

of 7



Responsible Officer

Notes

its 11 September meeting

Volunteers Policy 11/7/2017, C11279 1/07/2019 GMPI

Ward Forums Policy 12/12/2017, C11535 1/12/2019 GO

Water Sensitive Urban Design

Policy 19/9/2017, C11392 1/02/2019 GMUC

Watercourse Management Policy 14/6/2018, C11718 1/05/2020 GMAI

Whistleblower Protection Policy 22/03/2016, C10579 1/03/2018 GMCD; GMUC

To be presented to Council in August 2018

26

Audit Agenda Item 5.1 20 August 2018

Item No: 5.1 To: Audit Committee Date: 20 August 2018 Author: Helen Nikitenko – Team Leader, Innovation and Technology General Manager and Division:

Martin Cooper – General Manager, Corporate and Development

Subject: INTERNAL AUDIT UPDATE – MOBILE DEVICE MANAGEMENT (OPERATIONAL)

Attachments: A. Internal Audit Report – Mobile Device Management Prev. Resolution: A4063, 20/2/17

Officer’s Recommendation


2. That the Audit Committee note the Internal Audit report for Mobile Device Management prepared by Galpins and the Administration’s responses to the recommendations made with an update on remedial actions provided to be provided to a meeting of the Committee in 2019.

Purpose

1. To inform the Audit Committee of the matters raised by the Internal Auditors in their report for the Mobile Device Management audit and the Administration’s responses to these matters.

Strategic Plan

2. The following Strategic Plan provisions are relevant:

“Delivery of good governance in Council business”

“Use technology to provide convenient and flexible service delivery”

“Utilisation of technology to deliver timely and cost-effective services”

Communications/Consultation

3. The following communication / consultation has been undertaken:

3.1 Discussions with Galpins Accountants, Auditors and Business Consultants (Galpins); and

3.2 Discussions with the City of Burnside’s key stakeholders.

Statutory

4. The following legislation is relevant in this instance:

Local Government Act 1999

27


State Records Act 1997

Policy

5. The following Council Policies are relevant in this instance:

Risk Management Policy

Sale or Disposal of Assets Policy

Code of Conduct for Council Members

Elected Members’ Training and Development Policy

Risk Assessment

6. The following risks have been identified:

6.1 regular review of Council’s risk environment and internal controls is an important risk management tool and helps assess the effectiveness of Council’s internal control environment;

6.2 an Internal Audit Plan is essential for good corporate governance and will help manage strategic and operational risks faced by Council. Failure to implement the recommendations arising from internal audit projects may also result in lost opportunities to achieve performance improvements in effectiveness and efficiency;

6.3 lack of controls around mobile device management including but not limited to password security, automated locking due to inactivity and device sanitisation prior to disposal may result in unauthorised access to Council systems and data; and

6.4 absence of training and security awareness in relation to mobile devices can result in misuse of Council resources and personal devices with access to Council data.

Finance

7. The main financial implication in enacting the recommendations is staff time. Any funding requirements outside of staff time will proceed through the standard budget request framework used within Council.

Discussion

8. At the meeting held on 20 February 2017, the Audit Committee endorsed the 2016-2018 Internal Audit Plan for the City of Burnside (A4063). In line with the proposed schedule for 2017/18, the Mobile Device Management audit was undertaken.

9. The objective of this audit was to assess the Council’s governance around management of all mobile devices, including personal devices with access to Council’s network and data. The audit reviewed and considered the following:

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9.1 Council’s established policies and protocols and relevant governance on mobile device management;

9.2 Council’s practices and procedures when issuing and disposing of mobile devices;

9.3 Council’s practices and procedures when granting access to Council networks and data on personal devices; and

9.4 Council provided adequate mobile device information security awareness and training for all mobile device users.

10. The audit found that Council’s practices and procedures around mobile device management including detailed registers of all Council issued mobile devices, sign out sheets for borrowed devices and secure storage of shared devices were key strengths in minimising risks.

11. The internal audit concluded that the City of Burnside’s practices demonstrated understanding in the approach undertaken by Council officers to prevent, mitigate and manage risks related to all mobile devices. However, the audit identified that Council’s policies and protocols did not specify guidelines around mobile device management including mobile device password requirements, set screen lockout time, disposal and sanitisation of devices, and information security awareness training to the appropriate use of mobile devices. These recommendations and Council’s responses are listed below:

Recommendation 1 Applicable City of Burnside policy and or protocols are updated to include reference to disposal and sanitisation of Information and Communication Technology (ICT) equipment containing sensitive or classified media.

Response Administration agrees that apart from Information Technology (IT) procedural documents and processes, there is no specific reference to disposal and sanitisation of ICT equipment within any relevant policy or protocol. The ‘Cyber Security and Acceptable Computer Use’ Management Protocol will be updated accordingly to include details around disposal and sanitisation of ICT equipment containing sensitive data or any Council related information.

Target Date 30 November 2018

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Recommendation 2 Update the Corporate Tablet Issuing Form and / or other relevant policies or protocols to provide further details around selecting a password for the device. Include reference to the requirement that security passwords should conform with Protocol 6.1 Passwords, in the City of Burnside Cyber Security and Acceptable Computer Use.

Response Administration agrees that apart from the complex and mandated network password strength requirements currently used for Council’s Microsoft Surface tablets, there is no reference to a device password standard for mobile devices or fleet Samsung tablets requiring a mandatory device lock (one of PIN, pattern or biometric). The ‘Cyber Security and Acceptable Computer Use’ Management Protocol and Corporate Tablet Issuing Form will be updated accordingly to include a mobile device password standard of a minimum 6 digit PIN or biometric lock on all Council issued or Bring Your Own (BYO) devices with access to Council systems or data.


Recommendation 3 The City of Burnside Elected Members’ Training and Development Policy is updated to include reference to information security awareness and training in relation to the use of ICT which includes mobile devices.

Response Administration agrees that the current ‘Elected Members’ Training and Development’ Policy does not reference training requirements in relation to mobile devices. This policy will be updated as per recommendation and brought forward prior to the Policy Review cycle, now scheduled for December 2018. Mandatory ICT and Security Awareness training will be provided to all new Elected Members following the election in November 2018.

Target Date 20 December 2018

Recommendation 4 Passwords are not shared for mobile devices. If more than one team member is required to use the same device, they are given separate logins. Or alternatively, if accessing Work Orders is deemed as being low risk, Protocol 6.1.4 in the City of Burnside Cyber Security and Acceptable Computer Use policy is modified to read that “Employees must not share passwords that provide access to the corporate network, even if instructed to do so by a supervisor.”

Response Administration agrees that as per current ‘Cyber Security and Acceptable Computer Use’ Management Protocol, network passwords for Microsoft Surface Pro tablets accessing multiple Council systems must not be shared amongst employees. However, the Management Protocol will be updated to include an exception specific to low risk fleet Samsung Tablets used exclusively for Council’s Work Order system where shared team passwords will be used to facilitate user adoption.


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Recommendation 5 Enforce a mandatory “screen lock out” time for all computer devices used at City of Burnside. Update Cyber Security and Acceptable Computer Use policy to include the “screen lock out” time chosen by the Management team.

Response Administration agrees that apart from the default ‘screen lock out’ time automatically set on all mobile devices, there are no defined durations set and outlined in the relevant Management Protocol. The ‘Cyber Security and Acceptable Computer Use’ Management Protocol and Corporate Tablet Issuing Form will be updated accordingly to include a set screen lock out duration for Corporate tablets and other mobile devices. These durations will be established as per Australian Standards.


Conclusion

12. The internal audit for Mobile Device Management has been undertaken in line with Council’s Internal Audit Plan. The action items resulting from this review will be progressed and remediated as indicated.

13. A bi-annual update on all internal audit action items will also be provided to the Audit Committee.

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City of Burnside – Mobile Device Management Internal Audit Report

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Table of Contents

1. EXECUTIVE SUMMARY ............................................................................................... 3

1.1 Background ................................................................................................... 3

1.2 Objectives and scope ...................................................................................... 4

1.3 Overall review of the Mobile Device Management Risk Management .................. 5

1.4 Key findings and recommendations .................................................................. 6

2. DETAILED FINDINGS .................................................................................................. 7

2.1: Mobile Device Sanitisation and Disposal .................................................... 7

2.2: Password Controls for Mobile Devices ....................................................... 8

2.3: Information Security Awareness and Training ............................................ 9

2.4: Password Sharing .................................................................................... 10

2.5: Screen Lock Out Policy for Mobile Devices Password Sharing ................ 11

Appendix 1: City of Burnside Risk Matrix .................................................................... 12

Appendix 2: Documentation Reviewed ...................................................................... 13

Appendix 3: Stakeholders Consulted.......................................................................... 14

DISCLAIMERS ............................................................................................................. 15

3.1 Inherent limitations ...................................................................................... 15

3.2 Third party reliance ...................................................................................... 15

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3 City of Burnside – Mobile Device Management Review

1. EXECUTIVE SUMMARY

1.1 Background

The City of Burnside has established a two (2) year internal audit program to enhance its business performance by reviewing existing business processes and recommending improvements in process effectiveness, efficiency and economy.

As part of the internal audit program, the Council’s approach around Mobile Device Risk Management has been identified for audit in the 2017/18 financial year.

Why is Mobile Device Management important?

Smart and mobile devices that are not appropriately managed by an organisation present a risk of data leakage, malware propagation, and data loss with unknown impact in the event of device loss or theft.

Corporate PC environments have been the target of hardening and protective measures for many years, whilst mobile devices by comparison generally have comparatively weak security mechanisms and are often most heavily used by senior members of organisations meaning any successful compromise has the potential to cause damage.

The loss or misuse of a mobile device could result in a breach of confidential information, which could impact on the reputation of the Council, and lead to potential litigation.

Whether the Mobile Device user is an Elected Member, manager or Corporate staff, each of these groups are obligated under their specific Codes of Conduct to ensure that confidential information that they have access to, is to the best of their abilities, kept confidential.

For Council Members, the specific Code of Conduct for Council Members published in section 63(1) of the Local Government Act 1999, Part 2 – Member duties, 3.3 elected members must:

“Not release or divulge information that the Council has ordered be kept confidential, or that the Council member should reasonably know is information that is confidential, including information that is considered by Council in confidence;”

For Corporate Staff and Managers, under the Local Government Act 1999, section 110(1) in Part 2 Conduct, under Responsibilities as an employee of Council, 2.11, they must:

“Not release or divulge information that the Council or Chief Executive Officer of the Council has ordered be kept confidential, or that the Council Employee should reasonably know is information that is confidential…..”

The City of Burnside employment contracts signed by Corporate Staff and Management also include a section around confidentiality and security of information and documentation.

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1.2 Objectives and scope

The objective of this internal audit was to assess the Council’s approach around Mobile Device Risk Management. The areas reviewed included:

• BYOD devices that connected to the Council’s networks or contain Council’s data. (BYOD devices included all varieties of smartphones, tablet computers and their various operating systems)

• Fleet devices inclusive of Management Tablets and Field Devices (i.e. Depot Work Orders Tablets)

• Elected member devices that may or may not be connected to the network.

The following areas were considered out of scope:

• Asset effectiveness • suitability of the specific devices for the processes implemented • procurement and purchase practices related to the mobile devices.

Key activities undertaken included:

• An assessment of all relevant documentation to understand the MDM users’ obligations and responsibilities.

• Interviews with MDM users and key stakeholders around provisioning and deprovisioning of MDM devices as well as overall awareness of responsibilities around the use of MDM devices.

• Reviewing the adequacy of training around MDM devices.

• Reviewing the capabilities of IT in monitoring and managing MDM devices in accordance with the Councils Protocols and Policies.

• Discussing key findings and recommendations for improvement with management for subsequent inclusion into a draft report.

• Providing a final report for presentation to the Audit Committee.

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1.3 Overall review of the Mobile Device Management Risk Management

Currently Mobile Devices Management within the City of Burnside Council are categorised into 3 groups. Elected Members and Managers, Corporate, and Depot Shared Devices. Each of these groups have their own register, training and specific protocols and regulations.

The Mobile Device Management software currently being used by the City of Burnside Council is Exchange. Audit notes that this management software is limited to managing access to emails only, and offers no capabilities around tracking, locating, locking or wiping mobile devices to protect network access. It also is unable to provide the IT department with the ability to remotely update security software when required.

Internal Audit has been informed that in June 2018 the City of Burnside Council will be rolling out Windows 10 across the corporate environment and will then rely on Microsoft 365 as the Mobile Device Manager.

What worked well

Galpins identified the following strengths in Council’s approach to minimising Mobile Device Risks:

Detailed registers are maintained for mobile devices held by Elected Members and Managers, Corporate Mobile Devices and Department Shared Devices

sign out sheets are completed at the Depot when employees borrow devices

depot devices are held in a locked cabinet when not in use.

Opportunities for improvement (see section 2 for detail):

• Updating relevant City of Burnside Policy to include mention of disposal and sanitisation of ICT equipment containing sensitive or classified media

• updating the Corporate Tablet Issuing Form to provide further details around selecting a password for the device

• updating the City of Burnside Elected Members Training and Development Policy to include mention of information security awareness and training in relation to the use of ICT which includes mobile devices

• stopping the practice of password sharing for devices

• enforcing a mandatory “screen lock out” time for all computer devices used at City of Burnside.

Opportunities for consideration:

• Three (3) separate registers are used to maintain the records of mobile devices. These could be combined to improve reporting on mobile devices.

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1.4 Key findings and recommendations

A summary of the internal audit findings is provided in the table below.

Summary of findings

Finding and Recommendation/s - Risk Table Extreme Risk

High Risk Moderate Risk

Low Risk Better Practice

2.1 Mobile Device Sanitisation and Disposal

2.2 Password Controls for Mobile Devices

2.3 Information Security Awareness and Training

2.4 Password Sharing

2.5 Screen Lock Out Policy for Mobile Devices

Risk Ratings have been determined using the City of Burnside Risk Matrix. (See Appendix 1)

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2. DETAILED FINDINGS 2.1: Mobile Device Sanitisation and Disposal

As part of our review of mobile device management within the City of Burnside we focused on the lifecycle of mobile devices within the organisation. We reviewed relevant protocols and policies and interviewed staff who managed the devices as well as the users in the field.

The Sale or Disposal of Assets Policy (version 1. Dated 23rd June 2017) does not mention how ICT equipment, including Mobile Devices are sanitised or disposed.

There is a risk that mobile devices that are no longer being used by City of Burnside may still provide access to the network, or to stored sensitive Council documents or passwords.

The 2017 Australian Government Information Security Manual, Product Sanitisation and Disposal, which acts as a relevant guide to good practice, contains the following recommended controls.

• Control: 0313 “Agencies must have a documented process for the sanitisation and disposal of ICT equipment.”

• Control: 0311 “When disposing of ICT equipment containing sensitive or classified media, agencies must sanitise the equipment by either: sanitising the media within the equipment, removing the media from the equipment, then sanitising or destroying the media individually and disposing of it separately destroying the equipment in its entirety.”

Recommendation 1 Applicable City of Burnside policy and or protocol are updated to include reference to disposal and sanitisation of ICT equipment containing sensitive or classified media.

Rating (Auditor) Moderate Likelihood Possible Consequence Moderate

Rating (COB) Moderate Likelihood Possible Consequence Moderate

Response Administration agrees that apart from IT procedural documents and processes, there is no specific reference to disposal and sanitisation of ICT equipment within any relevant policy or protocol. The ‘Cyber Security and Acceptable Computer Use’ Management Protocol will be updated accordingly to include details around disposal and sanitisation of ICT equipment containing sensitive data or any Council related information.

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2.2: Password Controls for Mobile Devices

As part of our review of mobile device management within the City of Burnside we focused on the controls around securing the mobile devices from unauthorised users. We reviewed relevant policies and interviewed staff who managed the devices as well as the users in the field.

The City of Burnside provide a Corporate Tablet Issuing Form when providing Microsoft Surface Pro 4 tablets to users. The form requests a password be used to protect the device, but provides no guidelines as to how the password should be selected.

Without a strong password policy, the City of Burnside network is at greater risk of being compromised.

Recommendation 2 Update the Corporate Tablet Issuing Form and or other relevant policies or protocols to provide further details around selecting a password for the device. Include reference to the requirement that security passwords should conform with Protocol 6.1 Passwords, in the City of Burnside Cyber Security and Acceptable Computer Use.



Response Administration agrees that apart from the complex and mandated network password strength requirements currently used for Council’s Microsoft Surface tablets, there is no reference to a device password standard for mobile devices or fleet Samsung tablets requiring a mandatory device lock (one of PIN, pattern or biometric). The ‘Cyber Security and Acceptable Computer Use’ Management Protocol and Corporate Tablet Issuing Form will be updated accordingly to include a mobile device password standard of a minimum 6 digit PIN or biometric lock on all Council issued or BYO devices with access to Council systems or data.


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2.3: Information Security Awareness and Training

As part of our review of mobile device management within the City of Burnside we focused on the security awareness and training of mobile device users and mobile device managers. We reviewed relevant policies and interviewed staff who managed the devices as well as the users in the field.

The City of Burnside, Elected Members Training and Development Policy dated 12th December 2017 does not make reference to training requirements in relation to mobile devices or handling of data.

This potential lack of security awareness amongst elected members could lead to security risks.

The 2017 Australian Government Information Security Manual recommends the following control:

• Control: 0252 “Agencies must provide ongoing information security awareness and training for personnel on information security policies including topics such as responsibilities, consequences of non–compliance, and potential security risks and counter-measures.”

Recommendation 3 The City of Burnside Elected Members Training and Development Policy is updated to include reference to information security awareness and training in relation to the use of ICT which includes mobile devices.



Response Administration agrees that the current ‘Elected Members Training and Development’ Policy does not reference training requirements in relation to mobile devices. This policy will be updated as per recommendation and brought forward prior to the Policy Review cycle, now scheduled for December 2018. Mandatory ICT and Security Awareness training will be provided to all new Elected Members following the election in November 2018.

Target Date 20 December 2018

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2.4: Password Sharing As part of our review of mobile device management within the City of Burnside we focused on the security of passwords used by mobile device users and mobile device managers. We reviewed relevant policies and interviewed staff who managed the devices as well as the users in the field.

Mobile devices such as the Microsoft Surface Pro 4 are being issued by City of Burnside Managers, Elected Members and other staff, which require individual user logon. Alternatively, Samsung Galaxy tablets are provided to the Depot Operations staff for which team credentials, or a shared password, is used rather than an individual logon. The Samsung Galaxy tablets are deemed by City of Burnside to be a lower security risk, in comparison to the Microsoft Surface Pro 4 tablets, as they do not provide corporate access, and are used predominantly for Work Orders. Although a lower risk, this is still in breach of the Protocol 6.1.4 in the City of Burnside Cyber Security and Acceptable Computer Use policy updated 9th of January 2018 which states “Employees must not share passwords, even if instructed to do so by a supervisor.”

Shared passwords lead to a lack of accountability and traceability should the device be used inappropriately.

Recommendation 4 Passwords are not shared for mobile devices. If more than one team member is required to use the same device, they are given separate logins. Or alternatively, if accessing Work Orders is deemed as being low risk, Protocol 6.1.4 in the City of Burnside Cyber Security and Acceptable Computer Use policy is modified to read that “Employees must not share passwords that provide access to the corporate network, even if instructed to do so by a supervisor.“

Rating (Auditor) Low Likelihood Possible Consequence Low

Rating (COB) Low Likelihood Possible Consequence Low

Response Administration agrees that as per current ‘Cyber Security and Acceptable Computer Use’ Management Protocol, network passwords for Microsoft Surface Pro tablets accessing multiple Council systems must not be shared amongst employees. However, the Management Protocol will be updated to include an exception specific to low risk fleet Samsung Tablets used exclusively for Council’s Work Order system where shared team passwords will be used to facilitate user adoption.


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2.5: Screen Lock Out Policy for Mobile Devices Password Sharing

As part of our review of mobile device management within the City of Burnside we focused on the security of unsupervised mobile devices. We reviewed relevant policies and interviewed staff who managed the devices as well as the users in the field.

The existing policy in relation to ensuring that devices have a screen lock activated for user inactivity places the onus on the employee to select an appropriate lock out time, if at all. The City of Burnside, Cyber Security and Acceptable Computer Use policy dated 9th of January 2018 section 6.1.7 states “It is highly recommended that employees lock their computers to avoid instances of masquerading.”

There is no mandatory requirement for employees to comply with this policy and therefore there is a potential risk that devices left unsupervised can be accessed for malicious intent. This risk may be higher for mobile devices as they are inherently more likely to be left unsupervised given their size and transportability.

Recommendation 5 Enforce a mandatory “screen lock out” time for all computer devices used at City of Burnside. Update Cyber Security and Acceptable Computer Use policy to include the “screen lock out” time chosen by the Management team.



Response Administration agrees that apart from the default ‘screen lock out’ time automatically set on all mobile devices, there are no defined durations set and outlined in the relevant Management Protocol. The ‘Cyber Security and Acceptable Computer Use’ Management Protocol and Corporate Tablet Issuing Form will be updated accordingly to include a set screen lock out duration for Corporate tablets and other mobile devices. These durations will be established as per Australian Standards.


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Appendix 1: City of Burnside Risk Matrix

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Appendix 2: Documentation Reviewed The documents listed below were obtained and reference as part of undertaking the

Mobile Device Management review.

• Local Government Act SA 2012

• City of Burnside - Cyber Security and Acceptable Computer Use (January 2018)

• City of Burnside – Performance Management and Misconduct Protocol (December 2015)

• City of Burnside – Internet Acceptable Use (2007)

• City of Burnside – Telephone, Mobiles and Data Usage (January 2016)

• Code of Conduct for Council Members (Local Government Act 1999)

• City of Burnside – Employment Contract (July 2016)

• City of Burnside – Elected Members Training and Development (December 2017)

• City of Burnside – Sale or Disposal of Assets Policy (April 2017)

• City of Burnside – Corporate Tablet Issuing Form

• City of Burnside – Application / permit to burn in the open

• City of Burnside – Resident letter for Bushfire prevention

• City of Burnside – Green waste removal program

• Australian Government Information Security Manual 2017

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Appendix 3: Stakeholders Consulted

We extend our appreciation to the following individuals who provided information and participated in this review:

Name Position

Matthew Spearman City of Burnside - Group Manager People and Innovation

Helen Nikitenko City of Burnside - IT Team Leader

Clinton Schmerl City of Burnside – Network Administrator

Dario Brko City of Burnside – Technical Business Improvement Officer

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DISCLAIMERS 3.1 Inherent limitations

This report has been prepared for the information and internal use of the City of Burnside in accordance with the scope and objectives outlined in the Executive Summary of this report. The services provided in connection with this engagement comprise an advisory engagement which is not subject to the Australian Auditing Standards or the Australian Standards on Review and Assurance Engagements. Consequently, no express opinions or conclusions have been drawn or intended to convey assurance. Due to the inherent limitations of any internal control structure, it is possible that fraud, error or non-compliance with laws and regulations may occur and not be detected.

Further, the internal control structure, within which the control procedures that have been subject to the procedures we performed operate, has not been reviewed in its entirety and, therefore, no opinion or view is expressed as to its effectiveness of the greater internal control structure. The procedures performed were not designed to detect all weaknesses in control procedures as they are not performed continuously throughout the period and the tests performed on the control procedures were on a sample basis. Any projection of the evaluation of control procedures to future periods is subject to the risk that the procedures may become inadequate because of changes in conditions, or that the degree of compliance with them may deteriorate.

We believe that the statements made in this report are accurate, but no warranty of completeness, accuracy or reliability is given in relation to the statements and representations made by, and the information and documentation provided by, the City of Burnsides’ management and personnel. We have not sought to independently verify those sources. We are under no obligation in any circumstance to update this report, in either oral or written form, for events occurring after the report has been issued in final form unless specifically agreed with the City of Burnside. The internal audit findings expressed in this report have been formed on the above basis.

3.2 Third party reliance

This report is solely for the purpose set out in the Executive Summary of this report and for the City of Burnsides’ information, and is not to be used for any other purpose or distributed to any other party without Galpins’ prior written consent. This internal audit report has been prepared at the request of the City of Burnside or its delegate in connection with our engagement to perform internal audit services. Other than our responsibility to City of Burnside, neither Galpins nor any member or employee of Galpins undertakes responsibility arising in any way from reliance placed by a third party, including but not limited to the City of Burnside external auditor, on this internal audit report. Any reliance placed is that party’s sole responsibility.

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Item No: 5.2 To: Audit Committee Date: 20 August 2018 Author: Karishma Reynolds – Group Manager, Finance and Governance General Manager and Division


Subject: EXTERNAL AUDIT UPDATE (OPERATIONAL) Attachments: A. 2017/18 Interim Audit Management Letter Prev. Resolution: N/A



2. That the Audit Committee note the Interim Audit Management Letter issued by the External Auditors for the financial year ended 30 June 2018 and Administration’s response to these matters, with actions against issues raised and outstanding matters provided to the Audit Committee on a bi-annual basis.

Purpose

1. To inform the Audit Committee of the matters raised by the External Auditors in their Interim Audit Management Letter for 2017/18 and the Administration’s response to these matters and associated timeframes.

Strategic Plan

2. The following Strategic Plan provisions are relevant:


“A financially sound Council that is accountable, responsible and sustainable”



3.1 discussions with External Auditors, Dean Newbery and Partners;

3.2 discussions with relevant Council departments; and

3.3 discussions with the General Manager, Corporate and Development.

Statutory


Local Government Act 1999 and in particular, the following sections:

4.1 Under Section 126 of the Local Government Act 1999, the Council is required to appoint an Audit Committee. One of the prescribed functions of the Committee is

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to review the adequacy of the accounting, internal control, reporting and other financial management systems and practices of the Council on a regular basis.

4.2 Under Section 129 of the Local Government Act 1999 – Conduct of audit, Council Auditors must audit the:

4.2.1 Council’s financial statements within a reasonable time after the statements are referred to the auditor for the audit (unless there is good reason for a longer period, this is within two months after the referral); and

4.2.2 controls exercised by the Council for the receipt, expenditure and investment of money; the acquisition and disposal of property; and the incurring of liabilities.

4.3 The Auditor must provide to the Council an audit opinion on:

4.3.1 the financial statements; and

4.3.2 whether the Council’s controls are sufficient to provide reasonable assurance that Council’s financial transactions have been conducted properly and in accordance with the law.

Local Government (Financial Management) Regulations 2011

Policy

5. The following Council Policy is relevant in this instance:

Internal Financial Control Framework

Risk Assessment

6. Matters raised in the External Auditor’s Interim Audit Management Letter must be addressed to ensure that the City of Burnside remains a financially accountable and sustainable organisation.

Finance

7. The main financial implication in enacting the recommendations is staff time and, if required, funding for technological solutions. Any funding requirements outside of staff time will proceed through the standard budget request framework within Council.

Discussion

8. During each audit visit, the audit lead meets with senior finance staff to discuss matters of note arising from the audit. These range from procedural and processing matters to suggestions or recommendations for internal control improvements. Based on the outcomes of the audit, a report is forwarded to the Mayor, Chief Executive Officer and the Chair of the Audit Committee in accordance with the requirements of the Local Government Act 1999.

9. The External Auditors have completed the 2017/18 Interim audit and have issued a Management Letter with their key findings.

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10. The matters raised in this report have been discussed by the Administration and no items of major concern have been noted. In addition, appropriate actions are underway which will help ensure that these matters are addressed, and Council’s internal control environment is strengthened.

11. The matters raised in the External Auditor’s Interim Audit and action being taken by Administration have been listed below:

Audit Recommendation

Action being undertaken by Administration

Target Date

Status

Ensure that Council has valid tax invoices retained for GST and Fringe Benefit Tax administration purposes and recommend that all users be provided with updated training/reminders about credit card usage requirements

To strengthen this control, the Administration has: • distributed an email to all

credit card holders on 30 May 2018 to remind them of the requirement to have a valid tax invoice;

• updated the Credit Card

Protocol and included an example of the correct documentation required i.e. a valid receipt and a tax invoice; and

• conducted refresher training

on 3 July 2018 on the revised Protocol (including requirement for a valid tax invoice).

N/A Complete

Either daily limits are updated or additional credit card spending limits are implemented

Administration has reviewed the Credit Card Protocol in which a revision from a maximum ‘daily’ limit to a maximum ‘transaction’ limit has been adopted. This is in addition to the existing monthly credit card limits. The Administration has also added on an audit function to Council’s credit card management system (ProMaster), whereby any transaction over $2,000 needs to be reviewed to ensure that appropriate documentation and approvals are provided. Both the transaction and monthly limits are also controlled by the Commonwealth Bank credit card control systems.

N/A Complete

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Target Date

Status

Recommend the tenancy register be updated to include details of what costs have outgoings as recoverable so that systems can be implemented whereby costs are recovered appropriately and there is a reduced risk of lost revenue to the Council from undercharging of rental costs

Administration will review the tenancy register and incorporate any provisions which include the on-charge of outgoing costs (e.g. Electricity, gas, water and insurances).

31 December 2018

In Progress

Recommend that the current process for recognising Infrastructure asset disposals be reviewed and that the accurate capture of disposal transaction occurs for FY2018

Administration are currently reviewing the disposal process for Infrastructure assets and its impact on the financial statements. It is expected that if required, an adjustment will be made in the 2017/18 year-end financial statements and the process streamlined to be followed consistently in the future.

31 August 2018

In Progress

Recommend that at each budget review conducted, individual income and expense budget lines are updated for the anticipated total amount to be recorded

To strengthen this control, a process has already been implemented whereby, at each Budget Review, individual income and expense budget lines are reviewed and updated.

N/A Complete

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Recommend that additional controls are implemented whereby third-party verification is done for any changes to supplier bank account details prior to the changes being processed

Council has a number of controls in place to ensure that fraudulent emails are prevented and detected and no such instances have been encountered to date. The Administration has also attended Cyber Security training on 8 August which provided information on identifying fraudulent emails. The Administration will contact the third party only in the event that an email looks suspicious as doing so in every event may be inefficient.

N/A To be undertaken as required



Target Date

Status

Recommend information relating to the changes to the Code of Conduct is communicated to all relevant staff

At the time of the audit, Administration were already aware of and implementing the new Code of Conduct for Council Employees. Since the audit visit, the following actions have already been undertaken: • training sessions for all

employees were conducted in June 2018;

• the Gifts and Benefits Policy

was repealed at the 24 April Council Meeting and has been replaced by the new Code of Conduct for Council Employees; and

• a new Employee Conduct

Protocol and will be completed by 30 September 2018.

30 September 2018

In progress

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Conclusion

12. Council has received the Interim Audit Management Letter for the 2017/18 financial

year (Refer Attachment A).

13. A regular update on all outstanding external audit action items will be provided to the Audit Committee on a bi-annual basis.

Recommend the Council allocate appropriate resources to ensuring the Council’s systems and processes can accommodate the upcoming payroll reporting requirements.

At the time of the audit, the Administration were already aware of, and implementing the new Single Touch Payroll. Council’s payroll software vendor, Frontier has successfully applied for a vendor deferral from the ATO and as such the new requirements will be effective from 30 March 2019. The Council has adequate resources in place to ensure that the Council’s systems and processes will be able to accommodate the reporting requirements from the aforesaid effective date.

30 March 2019

In Progress

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1 | P a g e

City of Burnside

External Audit Management Report

March 2018 Audit Attendance

Financial Year Ending 30 June 2018

Dean Newbery & Partners Chartered Accountants

214 Melbourne Street

North Adelaide SA 5006

www.deannewbery.com.au

P 08 8267 4777

E [email protected]

53

2 | P a g e

Disclaimer: This document is for the exclusive use of the person/organisation named on the front of this

document (City of Burnside). This document must not be relied upon by any person/organisation who is

not the Recipient. Dean Newbery & Partners Chartered Accountants does not take responsibility for any

loss, damage or injury caused by use, misuse or misinterpretation of the information in this document by

any person who is not the Recipient. This document may not be reproduced in whole or in part without

permission.

Liability limited by a scheme approved under Professional Standards Legislation

Dean Newbery & Partners

Chartered Accountants

214 Melbourne Street North Adelaide SA 5006

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3 | P a g e

16 August 2018

Mayor David Parkin

City of Burnside

PO Box 9

GLENSIDE SA 5065

Dear Mayor Parkin

RE: External Audit Management Report - Financial Year Ending 30 June 2018

Our audit team undertook a site visit in relation to the external audit of your Council in relation to

the 2017/18 financial year audit of the Council.

This report has been prepared to comply with Australian Auditing Standard (ASA) 260

Communication with Those Charged with Governance and ASA 265 Communicating Deficiencies in

Internal Controls to Those Charged with Governance and Management.

Our commentary and audit recommendations arising from our audit are outlined in this report.

Please note that all matters raised in this report have been discussed with the Administration prior

to being issued and responses provided by the Administration to audit matters raised have been

included.

Please contact me on 8267 4777 ([email protected]) if you have any queries with regard to

our report.

Yours sincerely

DEAN NEWBERY & PARTNERS

SAMANTHA ALLARD

Partner

C. Chief Executive Officer

C. Audit Committee

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External Audit Management Report – March 2018 Attendance

4 | P a g e

Item Area Residual

Risk Rating

Comment and Audit Recommendations Management’s Response

1. Council Credit

Cards –

Retention of

Receipts

Low Our review of a sample of monthly credit card statement reconciliations noted

that a small number of transactions were not supported by valid receipts

and/or tax invoices to substantiate the transaction recorded on the credit card

statement.

To ensure credit card usage procedures are adhered to and that Council has

valid tax invoices retained for GST and Fringe Benefit Tax administration

purposes, recommend that all users be provided with updated

training/reminders about credit card usage requirements.

To be able to claim GST, a tax invoice is required

for amounts over $82.50. The audit found that

there were a small number of transactions that

were not supported by a tax receipt and they

were all under this threshold.

To strengthen this control, the Administration

has:

• distributed an email to all credit card

holders on 30 May 2018 to remind them

of the requirement to have a valid tax

invoice;

• updated the Credit Card Protocol and

included an example of the correct

documentation required i.e. a valid

receipt and a tax invoice; and

• conducted refresher training on the

revised Protocol (including requirement

for a valid tax invoice) on 3 July 2018.

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5 | P a g e

Item Area Residual

Risk Rating


2. Council Credit

Cards – Daily

Spending Limit

Low We identified a small number of instances where the daily transaction limit

per Council’s ‘Credit Card Expenditure Authorisation Matrix’ were exceeded

by card users. Controls over daily limits were not set on credit cards per

Council’s daily transaction limits set.

We recommend that either daily limits are updated or additional credit card

spending limits are implemented to ensure this matter is addressed.

Per the Council’s Credit Card Expenditure

Authorisation Matrix the ‘Daily’ transaction limit

is $2,000. However, it was noted that that there

were four instances where the daily transaction

limit was marginally exceeded (between $32-

$283).

Administration has since reviewed the Credit Card

Protocol in which a revision from a maximum

‘daily’ limit to a maximum ‘transaction’ limit has

been adopted. This is in addition to the existing

monthly credit card limits.

The Administration has also added on an audit

function to Council’s credit card management

system (ProMaster), whereby any transaction

over $2,000 needs to be reviewed to ensure that

appropriate documentation and approvals are

provided.

Both the transaction and monthly limits are also

controlled by the Commonwealth Bank credit card

control systems .

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6 | P a g e

Item Area Residual

Risk Rating


3. Council

Property

Leases

Low The administration over the recovery of outgoing costs are managed by

Council’s Coordinator Property & Facilities and Council maintains a tenancy

register which documents key information relating to each tenant (e.g. the

name of the tenant, facility details/address, Term of the lease, annual rent,

etc.). The tenancy register doesn’t however provide information from the

lease as to which leases has provisions included that allow the on-charge of

outgoing costs (e.g. power, water, insurance, etc.) and there is no centralised

register that records all recoverable outgoings per all individual lease

agreements held.

Recommend the tenancy register be updated to include details of what costs

have outgoings as recoverable so that systems can be implemented whereby

costs are recovered appropriately and there is a reduced risk of lost revenue

to the Council from undercharging of rental costs.

Administration will review the tenancy register

and incorporate any provisions which include the

on-charge of outgoing costs (e.g. Electricity, gas,

water and insurances)

Estimated completion date: 31 December 2018

4. Infrastructure

Asset Disposal

Recognition

Moderate In discussions held with Council’s Finance staff, asset disposals for works

undertaken on Council’s Infrastructure asset network are not being

consistently captured and recorded. To ensure Council complies with

Australian Accounting Standard (AASB) 116 Property, Plant and Equipment

requirements, recommend that the current process for recognising asset

disposals be reviewed and that the accurate capture of disposal transaction

occurs for FY2018.

Administration are currently reviewing the

disposal process for Infrastructure assets and its

impact on the financial statements

It is expected that if required, an adjustment will

be made in the 2017/18 year-end financial

statements and the process streamlined to be

followed consistently in the future.

Estimated completion date : 31 August 2018

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7 | P a g e

Item Area Residual

Risk Rating


5. Budget –

Internal

Controls

Low Our review of actual versus budget performance as at the end of January 2018

noted that there were examples of where income and costs were being

allocated against individual budget income and expense lines that had no

budget allocation recorded.

To strengthen budget controls, we recommend that at each budget review

conducted, individual income and expense budget lines are updated

accordingly for the anticipated total amount to be recorded so that there is a

reduced risk of transactions/events not being properly analysed or identified

or miss-posting of entries

Council manages their budgets by Cost Centre and

there may be instances where amounts are coded

correctly to an account without an allocated

budget. However, the budget holder will reduce

their spending in another account as an offset and

ensure that overall; the cost is still managed

within Budget. This is encouraged to ensure

accurate coding is undertaken.

However, to strengthen this control, a process has

already been implemented whereby, at each

Budget Review, individual income and expense

budget lines are reviewed and updated.

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8 | P a g e

Item Area Residual

Risk Rating


6. Supplier

Change in

Bank Details –

Internal

Controls

Low When the Accounts Payable staff receives an email or an invoice from a

supplier requesting a change in bank details, there are no assessed effective

controls in place to verify the emails are bona fide, which presents a risk of

fraud in this area.

To address this internal control weakness, we recommend that additional

controls are implemented whereby third party verification is done for any

changes to supplier bank account details prior to the changes being processed

(e.g. confirm via phone contact with the supplier) and that this process be

documented to verify the change in details.

Council has a number of controls in place to

ensure that fraudulent emails are prevented and

detected and no such instances have been

encountered to date.

The Administration has also attended Cyber

Security training on 8 August which provided

information on identifying fraudulent emails.

As such, the Administration will contact the third

party only in the event that an email looks

suspicious as doing so in every event may be

inefficient.

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9 | P a g e

Item Area Residual

Risk Rating


7. Changes to

the Gifts and

Benefits

Register

Low We wish to advise that a new Code of Conduct for Council Employees (the

Code) has been developed that will impact upon the Council’s reporting

requirements surrounding the Gifts and Benefits Register. These changes

commenced on 2 April 2018.

Recommend information relating to the changes to the Code is communicated

to all relevant staff. By way of example, changes to the Code include;

• A Council employee must provide details of any gift or benefit (now

including any hospitality) of an amount greater than $50

• A gift or benefit received by a person related to a Council employee

(as defined in Schedule 3 to the Local Government Act 1999) is to be

treated as a gift or benefit received by the employee

• Council employees may not seek or receive a gift or benefit that is, or

could reasonably be taken to be, intended or likely to create a sense

of obligation on part of the employee to a person or influence the

employee in the performance or discharge of their functions or duties

• The Chief Executive Officer must maintain a register of gifts and

benefits received by employees. The register is a public document

available for inspection and must be published on a website

determined by the Chief Executive Officer

As mentioned in the audit recommendation, at

the time of the audit, Administration were already

aware of and implementing the new Code of

Conduct for Council Employees.

Since the audit visit, the following actions have

already been undertaken:

• training sessions for all employees were

conducted in June 2018;

• the Gifts and Benefits Policy was repealed at

the 24 April Council Meeting and has been

replaced by the new Code of Conduct for

Council Employees; and

• a new Employee Conduct Protocol is currently

under review to include aspects of the old

Code of Conduct (CoC) which are not included

in the New CoC such as behaviour and

responsibilities. The new protocol will be

completed by 30 September 2018.

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10 | P a g e

Item Area Residual

Risk Rating


7.

Cont.

Changes to

the Gifts and

Benefits

Register

(Cont.)

Low A complaint alleging that a Council employee has not complied with the code

must be dealt with in accordance with a policy prepared and maintained by

the Council relating to complaints against employees. The policy must

nominate a person or persons to whom complaints are to be given. In the case

of the Chief Executive Officer, the policy must provide that complaints are to

be given to the principal member of Council.

At the time of our audit visit, we were advised by the Council Administration

that action was being taken to adhere to the above.

Administration has a current Complaints Handling

policy which nominates the Customer Service

Manager as the addressee. Each complaint is

handled on a case by case basis and dealt with in

accordance with the policy and/or the relevant

complaints procedures.

8. Transition to

Single Touch

Payroll

N/A As at 1 July 2018 the Council will be impacted by the new Single Touch Payroll

reporting requirements. These new reporting requirements will involve the

electronic reporting of employee payroll information (including salaries,

wages, and PAYG withholding and superannuation information) directly to the

ATO at the time in which the payroll is processed.

Recommend the Council allocate appropriate resources to ensuring the

Council’s systems and processes can accommodate the upcoming reporting

requirements.

At the time of our audit visit, we were advised by the Council Administration

that action was being taken to adhere to the above.

As mentioned in the audit recommendation, at

the time of the audit, Administration were already

aware of and implementing the new Single Touch

Payroll

Council’s payroll software vendor, Frontier has

successfully applied for a vendor deferral from

the ATO and as such the new requirements will be

effective from 30 March 2019.

The Council have adequate resources in place to

ensure that the Council’s systems and processes

will be able to accommodate the reporting

requirements from the aforesaid effective date.

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Audit Committee Agenda Item 5.3 20 August 2018

Item No: 5.3 To: Audit Committee Date: 20 August 2018 Author: General Manager and Division:

Karishma Reynolds – Group Manager, Finance and Governance Martin Cooper – General Manager, Corporate and Development

Subject: APPLICATION FOR ADDITIONAL LOAN FACILITIES (OPERATIONAL)

Attachments: A. Standard Debenture Loan Facilities Prev. Resolution: N/A



2. That the Audit Committee considers and recommends that Council obtain an additional credit foncier loan facility of $1.6m specifically for the Council supported Public Lighting LED Transition Project for a period of five years with the Local Government Finance Authority of South Australia.

3. That the Audit Committee considers and recommends that Council obtain an additional credit foncier loan facility of $2m for a period of 15 years with the Local Government Finance Authority of South Australia.

Purpose

1. To seek endorsement from the Audit Committee for an additional loan facility of $1.6m and $2m with the Local Government Finance Authority of South Australia (LGFA).

Strategic Plan

2. The following Strategic Plan provision is relevant:




3.1. discussions with LGFA;

3.2. discussions with the Finance Department and key internal stakeholders; and

3.3. Council considered and supported a report on Public Lighting LED Transition Project at its meeting on 14 August 2018.

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Statutory



Policy


Treasury Management

Risk Assessment

6. Council not being able to meet operational and capital replacement costs leading to asset, financial, safety and stakeholder relation issues.

Finance

7. Refer to ‘Discussion’ section below.

Discussion

8. Section 134 (1) of the Local Government Act 1999 gives Councils the Authority to ‘borrow money and obtain other forms of financial accommodation’.

9. In addition, Council’s Treasury Management Policy states that ‘Council will establish and make extensive use of a LGFA CAD facility that requires interest payments only and that enables any amount of principal to be repaid or redrawn at call.’

10. A Cash Advance Debenture is a loan which facilitates short term finance on an ‘at call’ basis, for which the principal may be repaid at any time and interest is only payable on the amounts of principal outstanding.

11. A credit foncier loan on the other hand is a loan for a fixed period with regular repayments where each repayment includes components of both principal and interest, such that at the end of the period, the principal will have been entirely repaid.

12. Attachment A outlines the characteristics of the various debenture loan facilities.

13. As at 15 August 2018, Council has the following loan facilities and available limits:

Type of Loan Limit / Principal

Rate Current Balance

Cash Advance Debenture facility

$10m 3.60% (Variable) $8.1m

Credit Foncier Loan $2m 4.20% (Fixed) $1.8m

Credit Foncier Loan $3m 4.80% (Fixed) $2.9m

TOTAL $15m $12.8m

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Credit Foncier Facility – LED Project:

14. On 14 August 2018, Council considered a report on Public Lighting LED Transition Project and resolved:


2. That Council approve the upgrade of the eligible Public Street Lights to Light Emitting Diodes under a Public Lighting Customer Funded tariff through a one-year implementation program, to be completed during the 2018/2019 financial year.

3. That the Council Administration secure a five-year loan through the Local Government Finance Authority of South Australia to finance this upgrade.

4. That this additional project and expenditure be presented to Council at the 2018/19 Second Quarter Budget Review.

5. That Council acknowledge that by undertaking this upgrade, the following benefits will be achieved:

5.1 Estimated $9.4 million of savings over the life of the new assets;

5.2 Reduction of Council’s carbon footprint of approximately 10,696 tCO2-e over the life of the new assets; and

5.3 The project has an estimated payback period of less than four years through annual energy cost savings.

15. The first part of the Administration’s Recommendation in this report is to obtain a $1.6 million credit foncier loan to fund the Public Lighting LED Transition Project. The estimated cost in the feasibility report is $1,592,437. Although, we are yet to receive an exact quote from SAPN, Administration is confident that the capital investment will be close to $1.6m.

16. Commencing 2019/20, the estimated savings from this Project is expected to be approximately $443k per annum, all of which will be quarantined towards the repayment of the debt over the five year period.

17. As noted below, this additional loan facility will have an implication on the Financial Ratios as per the Adopted 2018/19 Annual Business Plan and Budget. However, all of these ratios will remain within the target limits.

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2018/19 Impact

Per Adopted 2018/19 Budget

Including LED Project

Variance Target Limits

Operating Surplus Ratio - % 1.00% 1.00% 0%

0 – 10%

Net Financial Liabilities - $'000 21,563 23,155 1,592

Less than Total Annual Operating Revenue of $46.7m

Net Financial Liabilities Ratio - % 46% 49% 3%

Between 0 - 100%

Debt to Total Income Ratio - %

34%

37%

3%

No LGA target Audit Committee recommendation 0-50%

Asset Sustainability Ratio - % 93% 93% 0%

Greater than 90% but less than 110%

Credit Foncier Facility – Cashflow

18. As stated in the 2018/19 Annual Business Plan and Budget, adopted by Council on 26 June 2018, the forecast borrowing as at 30 June 2019 is expected to be $15.8m, $0.8m more than the current available CAD and loan facility of $15m.

19. Council’s rates are due in four quarterly installments per year. The payments to suppliers and employees however, are made consistently throughout the year. The additional loan capacity will ensure that Council has funds available to meet any shortfalls in cash flow throughout the year and provide capacity to respond to unanticipated cash requirements. Shortfalls in cash can be experienced particularly towards the end of the financial year when all the rate revenue, user charges and sundry income sources have been fully utilised.

20. As a result, the Administration would like to obtain an additional loan facility of $2m for a period of 15 years which will secure a low interest rate of 4.5 per cent as well as provide flexibility for Council’s cash flow peaks and troughs.

21. The LGFA has provided the following indicative rates and the Administration has opted for a 15-year term, in line with the previous loan terms approved by Council. The 15-year term also forms the basis of the financial modelling undertaken in the adopted 2018/19 Annual Business Plan and Budget.

22. The LGFA has provided a very competitive 4.50 per cent fixed interest rate for the 15 year period and it would seem prudent to borrow now and avail the favourable low rate.

Loan Interest Rate

5 Years 3.75%

10 Years 4.40%

15 Years 4.50%

23. Council’s current CAD balance as at end of 15 August 2018 is $8.1m and if this additional credit foncier loan facility were to be approved, the CAD balance would

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reduce to $6.1m thus making $3.9m available for use by Council to meet its operating and capital requirements.

24. This additional $2m loan facility does not have any adverse impact on Council’s Key Financial Indicators.

Interest Costs

25. These additional loan facilities would increase interest costs borne by Council as follows. However, it should be noted that in the absence of a Credit Foncier Loan, the interest costs would still be incurred by Council through the CAD facility. The benefit of securing a Credit Foncier loan is that the interest rate is fixed over the long term.

Type of Loan Limit / Principal

Rate Loan Term

Interest Costs over loan term

Average interest costs per year

Cash Advance Debenture facility

$10m Limit

3.60% Variable

N/A Variable as dependent on balance

Variable as dependent on balance

Credit Foncier Loan

$2m 4.20%

Fixed

15 yrs $716k $43k

Credit Foncier Loan

$3m 4.80%

Fixed

15 yrs $1.24m $83k

Credit Foncier Loan – LED

$1.6m 3.75%

Fixed

5 yrs

$170k $34k

Credit Foncier Loan

$2m 4.50%

Fixed

15 yrs $772k $51k

TOTAL $18.6m $2.9m

(exc CAD)

$211k

(exc CAD)

Conclusion

26. The Administration requests that the Audit Committee recommend to Council that the two additional loan facilities of $1.6m and $2m be availed with the Local Government Finance Authority of South Australia.

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68

biskup

Attachment A


Item No: 5.4 To: Audit Committee Date: 20 August 2018 Author: Karishma Reynolds – Group Manager, Finance and Governance General Manager and Division:


Subject: UPDATE TO PROCUREMENT POLICIES (OPERATIONAL) Attachments: A. Procurement Policy (New)

B. Procurement Governance Framework (to be rescinded) C. Tender and Contract Engagement Policy (to be rescinded) D. Unsolicited Proposal Treatment Policy (Tracked Changed) E. Unsolicited Proposal Treatment Policy (New Version)

Prev. Resolution: A4040, 6/6/16 C10680, 14/6/16 A4117, 18/6/18



2. That the Audit Committee endorse the new Procurement Policy and revised Unsolicited Proposal Treatment Policy to be presented to Council for consideration and adoption.

3. That the Audit Committee recommend to Council that the Procurement Governance Framework and Tender and Contract Engagement Policy be rescinded.

Purpose

1. To provide the Audit Committee with a Procurement Policy and revised Unsolicited Proposal Treatment Policy for consideration and endorsement prior to being presented to the Council for consideration and adoption.

2. To recommend rescission of the Procurement Governance Framework and Tender and Contract Engagement Policy.

Strategic Plan





4.1. discussions with the General Manager, Corporate and Development and key internal stakeholders; and

4.2. the Procurement Policies were initially presented to the Audit Committee at its meeting on 18 June 2018.

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Statutory

5. The following legislation and documents are relevant:


Independent Commissioner Against Corruption Act 2012

Competition and Consumer Act 2010 (Commonwealth)

National Competition Policy (Commonwealth)

Competition Policy Reform (South Australia) Act 1996

Local Government (Elections) Act 1999 – Caretaker provision

Freedom of Information Act 1991

Ombudsman Act 1972

Policy

6. The recommended adoption and rescission of the current policies listed below has direct reference:

6.1. Procurement Policy, formerly the Procurement Governance Framework and Tender and Contract Engagement Policy; and

6.2. Unsolicited Proposal Treatment Policy.

Risk Assessment

7. Regular reviews of the Council’s policy framework are an important risk management tool in ensuring the Administration is appropriately empowered to undertake the business of the Council in the manner that the Elected Body determines and ensures legislative compliance. The risk of not doing so is that the Administration may be acting on an outdated or compromised position on behalf of Council.

Finance

8. There are no financial implications for the City of Burnside in respect of the recommendation.

9. Formal adoption of these policies will continue to enhance the Administration’s internal financial controls.

Discussion

10. The Procurement Policies (Procurement Governance Framework, Tender and Contract Engagement Policy and the Unsolicited Proposal Treatment Policy) were initially presented to the Audit Committee on 18 June 2018 where it was resolved (A4117):


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2. That the Administration note the comments from the Committee and re-present

the Procurement Governance Framework, the Tender and Contract

Engagement Policy and the Unsolicited Proposal Treatment Policy and re-presents these to the Audit Committee meeting in August 2018.

11. Based on this feedback, the Administration has consolidated the policies, removed duplication and maintained the policies at a high level instead of including several operational elements.

12. The operational elements removed from the policies will be incorporated into a Management Protocol which will be revised after adoption of these policies.

13. The attached policies have been reviewed and the following amendments made as a result:

13.1. Procurement Governance Framework and Tender and Contract Engagement Policy have been consolidated into one New Procurement Policy;

13.2. relevant legislation, title and documentation references have been updated where applicable;

13.3. requirement for approval of all dispensations by the CEO (as opposed to only those over $100k);

13.4. removal of the public consultation section and reference to Council’s Public Consultation Policy instead;

13.5. removal of detailed sections of the legislation and reference to the legislation itself; and

13.6. strengthening of the section on promoting environmental protection.

Conclusion

14. The Audit Committee is now presented with a new Procurement Policy and the revised Unsolicited Proposal Treatment Policy for endorsement following initial debate in June 2018.

15. These draft policies will be presented to Council for consideration and adoption.

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Procurement Policy

Classification: Council Policy

Policy Name: Procurement Policy

First Issued / Approved: May 2003 see note below

Last Reviewed: New Policy

Next Review: August, 2020

ECM Document Set ID.: 968185

Responsible Officer: Group Manager, Finance and Governance

Relevant Legislation:

Local Government Act, 1999 Independent Commissioner Against Corruption Act, 2012 Competition and Consumer Act, 2010 (Commonwealth) National Competition Policy (Commonwealth) Competition Policy Reform (South Australia) Act, 1996 Local Government (Elections) Act, 1999 Caretaker provision Freedom of Information Act, 1991 Ombudsman Act, 1972 Construction Industry Training Fund Act, 1993

Related Policies:

Caretaker Code of Conduct for Council Employees Code of Conduct for Council Members Community Engagement (Public Consultation) Corporate Credit Card Employees, Staff and Associates - Gifts and Benefits Fraud and Corruption Prevention Risk Management Financial Delegation Internal Financial Control Framework Prudential Project Management Complaint Handling

Note:

Policy previously called • Contracts and Tender Policy (May 2013) • Procurement (Contracts, Tenders and OHSW) Policy

(F1725, 31 August 2009) • Procurement Policy (October 2015)

1 Introduction

1.1 This Policy forms the framework for how procurement activities are undertaken at the City of Burnside. Council is committed to providing best value to the community ensuring fairness, transparency and accountability.

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1.2 This Policy applies to:

1.2.1 All employees procuring or involved in activities that result in the procurement of goods, works and services. Whilst the primary focus for the provisions in this Policy document are directed to the conduct of Council’s employees, parts of it apply to Elected Members in relation to provisions of the Independent Commissioner Against Corruption Act, 2012.

1.2.2 The community and business operators who have a valid interest in the approach adopted by the Council in purchasing goods and services and entering into contracts.

2 Strategic Plan Desired Outcomes

2.1 Delivery of good governance in Council business.

2.2 A financially sound Council that is accountable, responsible and sustainable.

3 Our Approach

3.1 Regularly review, update and adopt leading governance, risk management and administrative processes.

3.2 Provide sufficient resources to meet current and future needs of the community.

4 Legislative Requirements and Corporate Policy Context

4.1 This Framework has been developed primarily to adhere to Section 49 of the Local Government Act 1999.

4.2 Council members and employees should also be aware of specific provisions in the Independent Commissioner Against Corruption Act 2012 (ICAC Act). Specifically Section 5 of the ICAC Act defines acts of corruption, misconduct and maladministration in public office.

5 Interpretation

5.1 For the purpose of this policy:

5.1.1 “Acquisition Plan” means a document that outlines the procurement methodology and strategy to be undertaken in procuring the required works, goods or services. This plan is approved by the appropriate delegated authorising officer before the procurement strategy has commenced.

5.1.2 “Delegated Authorising Officer” the person who has the authority to approve expenditure as per the Financial Delegation Policy.

5.1.3 “Direct Sourcing” means a procurement process undertaken by directly approaching and negotiating with one or more suppliers.

5.1.4 “Employee” means a person employed by, or contracted to fulfil agreed tasks for, the City of Burnside.

5.1.5 “Expression of Interest” means an EOI (also referred to as a Registration of Interest - ROI) Suppliers are invited to express/register their interest in providing particular goods, works or services and the

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responses evaluated to develop a shortlist for future market approaches or negotiations, using a more detailed specification.

5.1.6 “Open Tender” means a tender is advertised to the entire market via an open invitation process e.g. SA Tenders website accompanied by an advertisement.

5.1.7 “Panel Contract” or “Pre-Qualified Panel Contracts” means a contractual arrangement established with suppliers for the anticipated provision of goods, works or services, as and when required over a specified period of time.

5.1.8 “Preferred Supplier” means a Supplier that is preferred by the Council to supply certain goods, works or services, following a competitive tender process.

5.1.9 “Project Manager” means the Council officer responsible for initiating and overseeing the procurement of goods, works or services for the purposes of achieving a desired outcome, in consultation with Procurement where required.

5.1.10 “Purchase Order” means an official document used to authorise and record the purchase of goods, works or services.

5.1.11 “Quotation” means a formal request to obtain offers from one or more suppliers. This is generally used for low value purchases and therefore is not advertised publicly.

5.1.12 “Request for Information” (RFI) means an informal means of researching the particular good or service and the possible solutions or approaches available in the market. As such, informal market research and the gathering of intelligence through an RFI do not require any formal procurement approvals to be sought.

5.1.13 “Request for Proposal” (RFP) means a formal request where potential suppliers are invited to suggest ways and means of meeting an identified need, allowing scope for variety and innovation.

5.1.14 “Request for Tender” (RFT) means an invitation to tender based on clearly defined and specific statement of requirements.

5.1.15 “Request for Quotes” (RFQ) means an invitation for quotations based on clearly defined and specific statement of requirements.

5.1.16 “Select Tender” or “Selective Tender” means the selection of suppliers that will be invited to tender. Selection may be from a multi-use list, a list of potential suppliers that have previously responded to an Expression of Interest (EOI) or a list of potential suppliers that have been granted a specific licence or comply with a legal requirement.

5.1.17 “Strategic Alliances” is seeking tenders and establishing contracts as part of a purchasing group, aggregating demand to leverage economies of scale in order to make an offering more commercially viable for Council, or accessing contracts already established in other spheres of government.

6 Policy

6.1 Procurement Governance Principles

The following governance principles underpin all procurement activities for all Council representatives:

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6.1.1 Value for Money achieves the best outcome for the most appropriate price. This includes taking into account fit for purpose procurement, whole of life cost, timeliness of expected completion and flexibility to adapt to the needs of the requirement encompassing quality, sustainability, intangible costs and benefits, service, support and warranty.

6.1.2 Transparent and Fair Competition is ensured by providing equitable and appropriate access to Council’s procurement activities. Council recognises the commercial and economic benefits of open and effective competition. Council will encourage healthy competition in the markets from which it purchases.

6.1.3 Ethical Behaviour and Probity are essential in ensuring the highest professional standards are upheld in confidential business dealings conducted by both Council members and employees in relation to procurement activities. Council members and employees have a responsibility to act with integrity and impartiality and behave with fairness, independence, and professionalism to ensure probity within procurement processes. Council members and employees will observe Council’s Code of Conduct for Members and Employees, Staff and Associates respectively, throughout any involvement within procurement processes.

6.1.4 Risk Management ensures that appropriate risk management practices are in place for procurement activities including risk identification, assessment, and implementation of risk mitigation controls.

6.1.5 Financial Responsibility ensures that Council employees procure goods, works or services where there is an approved and allocated budget for that purchase, and where a Council employee with the appropriately delegated financial authority approves the purchase.

6.1.6 Compliance with Statutory Obligations refers to the obligation to comply with all legal and common law obligations.

6.1.7 Social and Economic and Environmental Sustainability refers to Council’s commitment to maximising the positive impact its activities have on the local community, its economy, and the environment. Where all other considerations are equal, Council may prefer to engage a local contractor or supplier to promote local employment opportunities and economic growth.

In addition, in order to promote environmental protection through its procurement processes Council where reasonably practicable will:

6.1.7.1 Adopt purchasing practices which conserve natural resources;

6.1.7.2 Align Council’s procurement activities with principles of ecological sustainability;

6.1.7.3 Purchase recycled and environmentally friendly products where possible;

6.1.7.4 Integrate relevant principles of waste minimisation and energy efficiency;

6.1.7.5 Foster the development of products and services which have a low environmental impact; and

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6.1.7.6 Provide leadership to business, industry and the community in promoting the use of environmentally sensitive goods and services.

6.2 Procurement Lifecycle Elements

6.2.1 Each procurement of goods, works or services involves common elements at each stage of the procurement lifecycle, prior to engaging or executing a contract.

6.2.2 These elements are crucial to ensure a balance of the governance principles outlined above. At a high level the elements are highlighted in order to achieve those principles throughout every stage of the procurement process;

6.2.2.1 Planning the procurement’s desired outcome (including budget approval);

6.2.2.2 Requesting information from the market segment required

6.2.2.3 Approaching the market;

6.2.2.4 Evaluating market responses;

6.2.2.5 Recommending successful responder;

6.2.2.6 Contract Negotiation;

6.2.2.7 Contract Execution;

6.2.2.8 Contract Performance Management;

6.2.2.9 Contract Close Out.

6.3 Procurement Thresholds and Methods

6.3.1 The initiation of any procurement process must be approved by the delegated authorising officer. These activities must comply with the Financial Delegations Policy and the Prudential Project Management Policy (if applicable).

6.3.2 The following types of procurement engagements are accepted methods for Council employees to initiate the process of sourcing goods, works or services from suppliers through the completion of an Acquisition Plan, if required.

6.3.3 The determination of the procurement method will be undertaken in strict accordance with the Procurement Thresholds Matrix Appendix 1, subordinate to this Policy.

6.3.4 Each value tier and its corresponding procurement method represent the minimum procurement activity that must be undertaken in order for Council to engage with suppliers.

6.3.5 All values stated are excluding GST.

6.3.6 Supplies up to $2,000 - Direct Sourcing

6.3.6.1 These forms of procurement are for low risk, low value supplies where a written quotation is not required prior to engaging with the supplier.

6.3.7 Supplies between $2,000 to $100,000 – Written Quotations

6.3.7.1 The value ranges determining the minimum written quotations required is as follows;

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6.3.7.2 One (1) Written Quotation - $2,001 up to $10,000.

6.3.7.3 Two (2) Written Quotations - $10,001 up to $30,000.

6.3.7.4 Three (3) Written Quotations - $30,001 up to $100,000.

6.3.7.5 On receiving all quotations from suppliers, they are to be evaluated with the preferred option being the most advantageous to Council, in considering all procurement governance principles per section 6.1 of this Policy.

6.3.7.6 The Project Manager in consultation with the evaluation team, if required, will make a recommendation for acceptance and forward all documentation to the appropriate delegated authorising officer for approval.

6.3.8 Supplies between $100,001 to $200,000 – Select Tender

6.3.8.1 At the discretion of the Project Manager, either a formal invitation requesting tenders (RFT) or requesting quotations (RFQ) from suppliers is to be arranged by Council.

6.3.8.2 The procurement process may be undertaken by approaching the market via a Select Tender process.

6.3.8.3 When undertaking a Select Tender or Quotation process, then a minimum of three (3) quotations must be obtained, prior to Council staff engaging in a formal evaluation process.

6.3.8.4 If for whatever reason, at least three (3) quotations are not able to be obtained from selected suppliers, then the reasons for this are to be documented by the procurement Evaluation Panel.

6.3.8.5 The Project Manager and Procurement Officer will analyse the options and advise the authorising delegated officer for consideration of the actions required.

6.3.9 Supplies over $200,001 – Open Tender

6.3.9.1 All procurements over this value threshold will be subject to an Open Tender process (SA Tenders) through public advertisement for responses, with no predetermined limitation on the amount of suppliers responding to the invitation.

6.3.9.2 An Open Tender process may take the form of an initial Expression of Interest (EOI) that may lead to a Request for Tender (RFT) or a Request for Quotation (RFQ) from prospective suppliers.

6.3.9.3 Council also has the option of initiating the procurement process by a RFT or RFQ, eliminating the requirement for an EOI.

6.3.10 Panel Contracts - Prequalification of Suppliers

6.3.10.1 Pre-qualified panel contracts may be appropriate where there is sufficient demand and supply of goods, works and services and there is a commercial advantage in Council having a choice of supplier.

6.3.10.2 Where possible, Council will establish contracts by conducting a prequalification process for contractors. Each

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of these prequalification processes will be conducted in accordance with the appropriate Registration of Interest process.

6.3.10.3 Participation in this process will allow contractors to become a Preferred Supplier for particular types of goods, works and services.

6.3.10.4 Contracts established under this method will require quotations or tenders as appropriate to be sought from contractors for each individual project.

6.3.11 Strategic Alliances

6.3.11.1 Strategic Alliances may be appropriate where Council can increase its purchasing power by partnering with another Council, representative body or supplier. Strategic alliances allow the Council to negotiate lower costs for standard goods and services.

6.3.11.2 Council currently leverages alliances with entities such as LGA Procurement (LGAP), Procurement Australia (PA), Council Solutions (CS), Vendor Panel (VP) Australia, along with other local, state and federal government entities.

6.4 Purchase Order Governance

6.4.1 Purchase Orders should be raised for the purchase or goods, works or services prior to the purchase being made.

6.4.2 Single one-off purchases shall be the total or estimated amount of the purchase (excluding GST).

6.4.3 For any particular contract, cumulative ongoing purchases over a period of time shall not breach the original total amount (excluding GST) contained in the applicable contract terms and conditions.

6.4.4 Splitting of purchases to bring expenditure within lower limits of delegated authority is strictly prohibited.

6.4.5 If it is discovered a supplier’s executed contracted amount or agreed payment milestones (excluding GST) have been disaggregated to reduce invoice amounts, this shall be reported to the Group Manager Finance and Governance for further investigation and disciplinary action if required.

6.5 Dispensations from Policy

6.5.1 In certain circumstances and emergencies Council may waive application of this Policy and pursue a method which will bring the best outcome for the Council. The Council must record its reasons in writing for waiving application of this Policy in accordance with the Procurement Dispensation Form Appendix 2, subordinate to this Policy.

6.5.2 Dispensations from the procurement processes and requirements outlined in this Policy are required to be approved by the Chief Executive Officer (CEO).

6.5.3 Any dispensation over $100,000 is to be included in the CEO monthly report to Council.

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6.6 Outsourcing

6.6.1 Any proposal to purchase by outsourcing any service or function currently performed predominantly by an employee, or group of employees, must be approved by the Chief Executive Officer.

6.7 Complaints

6.7.1 Complaints about any procurement process shall be subject to Council’s Complaint Handling Policy and any accompanying procedures.

6.8 Work, Health and Safety

6.8.1 The City of Burnside will only engage contractors and suppliers who are able to maintain an appropriate level of health, safety and welfare acceptable to Council for the contract they are engaged to complete.

6.8.2 As a minimum, this will entail compliance with all applicable legislation, regulations, project requirements, standards, and Council policies, and as specified in terms and conditions of contractual arrangements.

7 Availability

7.1 The Policy is available to be downloaded, free of charge, from Council’s website www.burnside.sa.gov.au

7.2 The Policy will be available for inspection without charge at the Civic Centre during ordinary business hours and a copy may be purchased at a fee as set annually by Council.

City of Burnside Civic Centre 401 Greenhill Road, Tusmore SA 5065 Telephone; 8366 4200 Fax; 8366 4299 Email; [email protected] Office hours: Monday to Friday, 8.30am to 5.00pm (except public holidays)

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Procurement Thresholds Matrix Functional Input

Requirement Value Method Agreement

Documentation Requiring Completion

Delegated Approval Levels

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$0 ≥ $2k Direct Sourcing Commercial Terms /

Credit Card / Purchase Order

• Receive & archive completed transaction invoice or receipt.

Team Leader or Corporate Credit Cardholder

$2,001 ≥ $10k

Minimum

1 Written Quote

Purchase Order • Short Form Quote Template • Recommendation Authorisation

Line Manager initiating the Procurement

$10,001 ≥ $30k

Minimum

2 Written Quotes

Purchase Order or Contract

• Short Form Quote Template • Short Form Quote Conditions • Nominated Tender Participant

Line Manager initiating the Procurement

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$30,001 ≥ $100k

Minimum

3 Written Quotes RFQ or RFP

Contract / Purchase Order for Vendor

Panel Suppliers

• Acquisition Plan • Specification Template • Schedule of Rates • Contract Recommendation Template • Request For Tendering Template • Conditions of Contract

Line Manager initiating the Procurement noted by General

Manager

$100,001 ≥ $200k

Select Tender

RFT or RFQ (SA Tenders & Vendor

Panel)

Contract


General Manager noted by Chief Executive Officer

$200,001 ≥

Open Tender RFT, RFQ & EOI

SA Tenders

Contract


Chief Executive Officer noted by

Executive

Refer to Prudential Management Policy for Council Report

considerations

Disclaimer: This Matrix is to be used as a guide only – for any queries or clarifications please contact the Procurement Team July 2018 In line with Council’s Procurement Policy threshold amounts are to be interpreted as the cumulative amount over the predicted life of the contract for the purposes of determining the appropriate procurement method and approval levels. (i.e. a proposed procurement with estimated budget of $200k per annum exc. GST over 2 years will be subject to Open Tender as the cumulative amount over predicted life of the contract will be $400k exc. GST in totality).

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Appendix A Pre-qualified Suppliers by Goods, Works or Service Category

Vendor Panel Minor Civil Works & Building. Maint. Panel Air Conditioning Asbestos Removal Carpentry Earthworks / Flood Mitigation Glazing Joinery / Cabinet Making Minor Building Works Painting Pipes, Pumps & concrete Products Plant Hire / Purchase Plastering / Rendering Plumbing / Gas Fitting Railing, Balustrades & Height Safety Solutions Roof Plumbing / Repairs Stormwater Tiling Welding and Fabrication

Arboriculture Consultancy Consultancy Services Services - Works

Consultancy Panel Project Management Quality Surveying / Cost Management Surveying Stormwater Investigation & Management Stormwater Systems Design Structural / Civic Design Engineering Footings Geotechnical Investigations Traffic & Safety Analysis Transport Design (all modes) Lighting Design Lighting Audits / Certification Electrical Engineering Energy Audits Air-conditioning design & Supervision

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of 2

Procurement Dispensation Form In line with the Procurement Policy,, all dispensation requests, regardless of their cause, must be made in writing and must outline the reasons for the request and any risks which may be involved in the approach. Please use this form to seek approval for Procurement Dispensation. Upon receiving the fully completed and approved form, this dispensation will be included in the Procurement Dispensation Register. Any amounts over $100,000 included in the Register will be reported to Council.

Goods / Services Required:

Requesting Department: Requesting Manager:

Details: Who, what ,why and when

Cost of Requested Dispensation $

Any known risks identified

Budget available

Yes / No

GL code:

Amount available

If budget is not available, please provide details of how this expenditure will be funded

Dispensations from Procurement Policies may be either general dispensations from specific provisions of Procurement Policies, or a single source supply dispensation, including emergency supplies in extenuating circumstances. Single source supply dispensations may be considered where at least one of the following reasons applies:

Dispensation Criteria Reasons for seeking dispensation

There are only a limited number of suppliers with the capability, experience, and suitability to meet needs and no alternative exists.

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of 2

No submissions are received in a procurement process or the submissions received did not meet the specification requirements; The need for compatibility with existing systems or services; Obligations under warranty or other contractual arrangements requiring the supply of goods, works or services from a particular supplier.

An absence of competition due to technical reasons, including but not limited to exclusive licence, proprietary information, or protection of intellectual property.

Value in the procurement process will not be achieved by the prescribed market approach, and there is demonstrated advantage in amending the approach.

A response to a Council resolution with limited timeframes.

Other – Attach supporting documentation.

Approved by Requesting Manager

Name: Sign: Date:

Approved by CEO

Name: Sign: Date:

Please note that for Segregation of Duties purposes, approval is required from at least two tiers of Management. Once the approvals have been received, please return this form to the Manager, Finance and Governance (extn 178, email:[email protected]). For any assistance with this form, please contact the Procurement Team.

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P r o c u r e m e n t Go v e r n a n c e F r a m e w o r k


Policy Name: Procurement Governance Framework

First Issued / Approved: May 2003 – see note below

Last Reviewed: 14th June 2016, C10680

Next Review: June 2020

ECM Tracking No.: 968185

Responsible Officer:

Group Manager, Finance and Governance


Local Government Act, 1999 Independent Commissioner Against Corruption Act, 2012 Competition and Consumer Act, 2010 (Commonwealth) National Competition Policy (Commonwealth) Competition Policy Reform (South Australia) Act, 1996 Local Government (Elections) Act, 1999 – Caretaker provision Freedom of Information Act, 1991 Ombudsman Act, 1972

Related Policies:

Caretaker Code of Conduct for Council Employees Code of Conduct for Council Members Community Engagement (Public Consultation) Corporate Credit Card Employees, Staff and Associates - Gifts and Benefits Fraud and Corruption Prevention Risk Management Financial Delegation Policy Internal Financial Control Framework Prudential Project Management Complaint Handling Tender and Contract Engagement

Note Policy previously called: • Contracts and Tender Policy (May 2013) • Procurement (Contracts, Tenders And OHSW) Policy

(F1725, 31 August 2009) • Procurement Policy (October 2015)

1. Introduction

1.1 This Policy is the peak document forming the governance framework for how procurement activities will be undertaken at the City of Burnside. It applies to all employees of Council directly responsible for procuring goods, works and services from suppliers.

1.2 It also applies to employees involved in activities that result in the procurement of goods, works and services during the course of performing their duties.

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1.3 Whilst the primary focus for the provisions in this Policy document are directed to the conduct of Council’s employees, parts of it apply to elected members in relation to provisions of the Independent Commissioner Against Corruption Act, 2012.

2. Strategic Plan Desired Outcomes



3. Our Approach



4. Legislative Requirements and Corporate Policy Context

4.1 This Framework has been developed primarily to adhere to Section 49 of the Local Government Act 1999.

4.2 Section 49(a1) of the Local Government Act 1999 requires Council to develop and maintain procurement policies, practices and procedures directed towards:

4.2.1 Obtaining value in the expenditure of public money; and

4.2.2 Providing for ethical and fair treatment of participants; and

4.2.3 Ensuring probity, accountability and transparency in procurement operations.

4.3 Policies developed must include provisions concerning:

4.3.1 The contracting out of services; and

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

4.3.3 The use of local goods and services; and

4.3.4 The sale or disposal of land or other assets.

4.4 This Policy has also been developed in order for Council members and employees to be aware of specific provisions in the Independent Commissioner Against Corruption Act 2012 (ICAC Act) and the provisions relationship with procurement activities undertaken by a public authority, as identified by the ICAC Act

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4.5 In particular, Section 5 of the ICAC Act specifically defines acts of corruption, misconduct and maladministration in public office.

4.6 Acts constituting corruption in public administration that may pertain to procurement activities include;

4.6.1 Bribery or corruption of a public officer; or

4.6.2 Abuse of public office; or

4.6.3 Demanding or requiring benefit of public office.

4.7 Misconduct is characterised as the;

4.7.1 Contravention of a code of conduct by a public officer while acting in his or her capacity as a public officer, that constitutes grounds for disciplinary action against the officer; or

4.7.2 Other misconduct of a public officer while acting in his or her capacity as a public officer.

4.8 Maladministration in public administration is characterised as the;

4.8.1 Irregular and unauthorised use of public money or substantial mismanagement of public resources; or

4.8.2 Conduct of a public officer involving substantial mismanagement

in, or in relation to, the performance of official functions, which includes conduct resulting from impropriety, incompetence or negligence.

4.9 The ICAC Act specifically identifies both local government body elected members and employees as “public officers” of “public authorities” for the purposes of the provisions contained in the Act. Therefore, this Policy applies to both employees and elected members and is to be read in conjunction with the City of Burnside’s;

4.9.1 Code of Conduct for Council Members Policy; and

4.9.2 Code of Conduct for Council Employees Policy.

5. Interpretation


5.1.1 “Acquisition Plan” means a document that outlines the procurement methodology and strategy to be undertaken in procuring the required works, goods or services. This plan is approved by the appropriate approving body/person before the procurement strategy has commenced.

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5.1.2 “Common Use Purchasing Arrangements or Alliances” is seeking tenders and establishing contracts as part of a purchasing group, aggregating demand to leverage economies of scale in order to make an

offering more commercially viable for Council, or accessing contracts already established in other spheres of government



5.1.5 “Expression of Interest” means an EOI (also referred to as a Registration of Interest - ROI) is a formal market approach and the first step in a multi stage procurement process in a documented Acquisition plan. Suppliers are invited to express/register their interest in providing particular goods, works or services and the responses evaluated to develop a shortlist for future market approaches or negotiations, using a more detailed specification.


5.1.7 “Panel Contract” or “Pre-Qualified Panel Contracts” means a contractual arrangement established with at least two suppliers for the anticipated provision of goods, works or services, as and when required over a specified period of time.

5.1.8 “Preferred Supplier” means a Supplier that is preferred by the Council to supply certain goods, works or services, following a competitive tender process.

5.1.9 “Public Authority” means a local government Council, as defined by the ICAC Act Schedule 1 for the purposes of this Policy.

5.1.10 “Public Officer” in the context of local government means a member or an officer or employee of a local government body, as defined by the ICAC Act Schedule 1 for the purposes of this Policy.



5.1.13 “Request for Information (RFI)” means an informal means of researching the particular good or service and the possible solutions or approaches available in the market. As such, informal market research and the gathering of intelligence through an RFI do not require any formal procurement approvals to be sought.

5.1.14 “Request for Proposal (RFP)” means a formal request where potential suppliers are invited to suggest ways and means of meeting an identified

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need, allowing scope for variety and innovation.

5.1.15 “Request for Tender (RFT)” means a publicly advertised invitation to offer based around a clearly defined and specific statement of requirements.

5.1.16 “Select Tender” or “Selective Tender” means the selection of suppliers that will be invited to tender. Selection may be from a multi-use list, a list of potential suppliers that have previously responded to an Expression of Interest (EOI) or a list of potential suppliers that have been granted a specific licence or comply with a legal requirement. Sometimes referred to as limited tendering.

6. Procurement Governance Principles

6.1 The following key governance principles underpin all procurement activities for all Council representatives:

6.1.1 Value for Money achieves the best outcome for the most appropriate price. This includes taking into account fit for purpose procurement, whole of life cost, timeliness of expected completion and flexibility to adapt to the needs of the requirement encompassing quality, sustainability, intangible costs and benefits, service, support and warranty.

6.1.2 Transparent and Fair Competition is ensured by providing equitable and appropriate access to Council’s procurement activities. Council recognises the commercial and economic benefits of open and effective competition. Council will encourage healthy competition in the markets from which it purchases.

6.1.3 Ethical Behaviour and Probity are essential in ensuring the highest professional standards are upheld in confidential business dealings conducted by both Council members and employees in relation to procurement activities. Council members and employees have a responsibility to act with integrity and impartiality and behave with fairness, independence, and professionalism to ensure probity within procurement processes. Council members and employees will observe Council’s Code of Conduct for Members and Employees, Staff and Associates respectively, throughout any involvement within procurement processes.

6.1.4 Risk Management ensures that appropriate risk management practices are in place for procurement activities including risk identification, assessment, and implementation of risk mitigation controls.

6.1.5 Financial Responsibility ensures that Council employees procure goods, works or services where there is an approved and allocated budget for that purchase, and where a Council employee with the appropriately delegated financial authority approves the purchase.

6.1.6 Compliance with Statutory Obligations refers to the obligation to comply with all legal and common law obligations.

6.1.7 Social, Economic and Environmental Sustainability refers to Council’s commitment to maximising the positive impact its activities have on the

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local community, its economy, and the environment. Where all other considerations are equal, Council may prefer to engage a local contractor or supplier to promote local employment opportunities and economic growth. In addition, in order to minimise Council’s impact on its environment, Council will where all other factors are equal, seek to purchase to achieve the following:

6.1.7.1 Environmentally friendly or recycled products;

6.1.7.2 Conservation of natural resources;

6.1.7.3 Integrate principles of waste minimisation and energy reduction; and

6.1.7.4 Provide leadership to local business and the community in promoting the use of environmentally sensitive goods, works or services.

6.2 Recognised Procurement Methods

6.2.1 Council will purchase goods, works or services in accordance with accepted methods of procurement.

6.2.2 The determination of the procurement method will be undertaken in strict accordance with the Tenders and Contracts Engagement Policy, subordinate to this framework Policy.

6.2.3 Primarily a purchasing Acquisition Plan details why the procurement method chosen is the most appropriate, in accordance with the Procurement Thresholds Matrix, for that purchase for subsequent approval by the appropriate delegate prior to proceeding.

6.2.4 An acquisitions overall estimated cost, complexity and risk will generally determine the procurement method to engage a contractor.

6.2.5 Accepted formal procurement methods include; 6.2.5.1 Direct Negotiation

6.2.5.2 Request for Quotation (RFQ)

6.2.5.3 Request for Proposal (RFP)

6.2.5.4 Request for Tender (RFT)

6.2.5.5 Select RFP or RFT

6.2.5.6 Expression of Interest (EOI) followed by RFP or RFT.

6.2.6 Relatively small purchases can be made either by direct sourcing facilitated by petty cash, invoice or corporate credit card.

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6.2.7 Purchases more complex in nature are executed subsequent to market testing in the form of gaining a number of supplier quotations dependent on the inherent risk and the proposed cost of the procurement.

6.2.8 Dependent on the procurement risk and cost, the minimum amount of quotations required of suppliers will range from at least one (1) to at least three (3).

6.2.9 Where at least three (3) quotations are required or there are higher risk factors inherent within a purchase, a formal contract will be required.

6.2.10 Highly complex purchases resulting in sophisticated risk management assessments will generally be subject to either a Select or Open Tender process, usually culminating in the execution of a formal contract with the preferred supplier.

6.2.11 The evaluation of the responses from suppliers will be documented, typically in an Evaluation Plan for delegate approval. All amounts quoted are to be annualised amounts for any supply to Council.

6.2.12 The accepted methods of procurement are subject to a dedicated Council Policy, the Tender and Contract Engagement Policy, detailing how and when each procurement type is to be activated when planning to engage suppliers.

6.2.13 In the event that a report to Council highlights the timing of Procurement involvement, the responsibility of communicating and liaising with the Procurement team lies with the report writer prior to the report being presented to Council.

6.3 Purchase Order Governance

6.3.1 Purchase Orders should be raised for the purchase or goods, works or services prior to the purchase being made.

6.3.2 Single one-off purchases shall be the total or estimated amount of the purchase (excluding GST).

6.3.3 For any particular contract, cumulative ongoing purchases over a period of time shall not breach the original total amount (excluding GST) contained in the applicable contract terms and conditions.

6.3.4 Splitting of purchases to bring expenditure within lower limits of delegated authority is strictly prohibited.

6.3.5 If it is discovered a supplier’s executed contracted amount or agreed payment milestones (excluding GST) have been disaggregated to reduce invoice amounts, this shall be reported to the Group Manager Finance and Governance for further investigation and disciplinary action if required.

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6.4 Delegations

6.4.1 Appropriate levels of authority to approve procurement activities are detailed in Council’s Financial Delegations Policy.

6.4.2 As with the current approval structure for delegated authorities, procurement approval limits will be strictly adhered to with the onus being on the individual employee to ensure those limits are not breached or abused

6.4.3 In line with these provisions, all purchase order requisition requests

directed to an employee, whose position does not hold the required level of authorisation according to the amount of the requisition will be refused and redirected to the officer holding the appropriate level of authorisation.

6.5 Panel Contracts - Prequalification of Suppliers

6.5.1 Where possible, Council will establish contracts by conducting a prequalification process for contractors. Each of these prequalification processes will be conducted in accordance with the appropriate Registration of Interest process.

6.5.2 Participation in this process will allow contractors to become a Preferred Supplier for particular types of goods, works and services.

6.5.3 Contracts established under this method will require quotations or tenders as appropriate to be sought from contractors for each individual project and constitute a standing offer.

6.5.4 Pre-qualified panel contracts may be appropriate where there is sufficient demand and supply of goods, works and services and there is a commercial advantage in Council having a choice of supplier.

6.6 Common Use Purchasing Arrangements or Alliances

6.6.1 Purchases can also be arranged through common use arrangements with the aim of:

6.6.1.1 Reducing direct and indirect purchasing costs; and/or

6.6.1.2 Providing tangible benefits through joint purchasing; and/or

6.6.1.3 Improving delivery and/or quality of outcomes to residents; and/or

6.6.1.4 Attract more competition or a more suitable field of providers to respond to the tender call.

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6.6.2 Council currently leverages alliances with entities such as LGA Procurement (LGAP), Procurement Australia (PA), Council Solutions (CS), Vendor Panel (VP) Australia, along with other local, state and federal government entities.

6.7 Dispensations from Policy

6.7.1 Dispensations from the procurement processes and requirements outlined in this Policy may be approved as follows:

6.7.1.1 Up to the value of $100,000, General Managers may approve; and

6.7.1.2 Above the value of $100,000, the Chief Executive Officer (CEO) may approve. Council is to be provided with a monthly report on dispensations provided above the value of $100,000.

6.7.2 Dispensations from this, or other procurement Policies listed in the Related Policies section above, may be either general dispensations from specific provisions of procurement Policies, or a single source supply dispensation, including emergency supplies in extenuating circumstances.

6.7.3 Single source supply dispensations may be considered where at least one of the following reasons applies:

6.7.3.1 There are only a limited number of suppliers with the capability, experience, and suitability to meet needs and no alternative exists;

6.7.3.2 No submissions are received in a procurement process or the submissions received did not meet the specification requirements;

6.7.3.3 The need for compatibility with existing systems or services;

6.7.3.4 Obligations under warranty or other contractual arrangements requiring the supply of goods, works or services from a particular supplier;

6.7.3.5 An absence of competition due to technical reasons, including

but not limited to exclusive licence, proprietary information, or protection of intellectual property;

6.7.3.6 Value in the procurement process will not be achieved by the

prescribed market approach, and there is demonstrated advantage in amending the approach; and

6.7.3.7 A response to a Council resolution with limited timeframes.

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6.7.4 If a procurement is deemed and approved as an emergency supply, in these cases;

6.7.4.1 Expenditure must be within the employee’s delegated financial authority.

6.7.4.2 Expenditure must be limited to that required to alleviate the

emergency situation only.

6.7.4.3 The employee must ensure that appropriate methods of purchase are resumed as soon as practicable.

6.7.5 All dispensation requests, regardless of their cause, must be made in writing and must outline the reasons for the request and any risks which may be involved in the approach.

6.7.6 Where a funding agreement specifies that Council must follow a prescribed tendering or selection process which differs from that outlined in this Policy, the project funded under that agreement must follow the tendering or selection process outlined in the funding agreement and records of this must be recorded in Council’s records management system.

6.8 Conflicts of Interest

6.8.1 Council members shall at all times act in accordance with the conflicts of interest requirements in the Local Government Act 1999, specifically Section 73 detailing when a member will be required to disclose an interest in a matter.

6.8.2 Similarly, employees shall at all times act in accordance with the

conflicts of interest provisions in Section 120 of the Act, when a staff member or contractor will be required to disclose an interest in a matter.

6.8.3 In addition, Council members and employees shall observe the specific

provisions concerning conflicts of interest outlined in their respective Codes of Conduct.

6.9 Outsourcing

6.9.1 Any proposal to purchase by outsourcing any service or function currently performed predominantly by an employee, or group of employees, must be approved by the Chief Executive Officer.

6.8 Public Consultation

6.8.1 Where a purchase requires public consultation, then such consultation must be conducted in accordance with Council’s Community Engagement Policy.

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6.9 Complaints

6.9.1 Complaints about any procurement process shall be subject to Council’s Complaint Handling Policy and any accompanying procedures.

6.10 Work Health and Safety

6.10.1 The City of Burnside will only engage contractors and suppliers who are able to maintain an appropriate level of health, safety and welfare acceptable to Council for the contract they are engaged to complete.

6.10.2 As a minimum, this will entail compliance with all applicable legislation, regulations, project requirements, standards, and Council policies, and as specified in terms and conditions of contractual arrangements.

7. Availability



City of Burnside Civic Centre 401 Greenhill Road, Tusmore SA 5065

Telephone; 8366 4200 Fax; 8366 4299 Email; [email protected]

Office hours: Monday to Friday, 8.30am to 5.00pm (except public holidays)

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Document Set ID: 2704789 Version: 3, Version Date: 26/06/2016

Tender & Contract Engagement Policy


Policy Name: Tender and Contract Engagement Policy

First Issued / Approved: 14th June 2016 C10680

Last Reviewed:

Next Review: June 20XX



Group Manager Finance and Governance

Relevant Legislation: Local Government Act, 1999 Independent Commissioner Against Corruption Act, 2012

Related Policies:

Procurement Governance Framework Code of Conduct for Council Employees Code of Conduct for Council Members Employees, Staff and Associates - Gifts and Benefits Fraud and Corruption Prevention Risk Management Financial Delegation Policy Customer Service Internal Financial Controls Framework Prudential Project Management Complaint Handling

1. Introduction

1.1 This Policy provides a framework relating to accepted procurement methods for engaging the market in order to complete goods, works or services initiatives, in accordance with Section 49(1)(a), (b) and (c) of the Local Government Act 1999 prescribing Council have such a Policy.

1.2 This Policy must be read in conjunction with Council’s over-arching Procurement Governance Framework outlining high level principles which will be observed and adhered to when Council employees and Elected Members, where applicable, are involved in Council procurement activities and decision making.




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3. Our Approach




4.1 This Policy has been developed and adopted in accordance with Section 49 of the Local Government Act 1999.

4.2 Section 49(a1) of the Local Government Act 1999 requires Council to develop and maintain a procurement Policy on contracts and tenders, including policies, practices, and procedures on:

4.2.1 Obtaining value in the expenditure of public money; and

4.2.2 Providing for ethical and fair treatment of participants; and

4.2.3 Ensuring probity, accountability and transparency in procurement operations.

4.3 Specifically at Sections 49(1)(a), (b) and (c) in the context of its procurement activities Council must develop and maintain a Policy regarding the contracting out of services, outlines methods of procurement to ensure cost effective outcomes and use of local goods and services.

4.4 This Policy underpins and supports the Procurement Governance Framework. As such, the procurement governance principles outlined in that policy should be observed at all times throughout any stage of procurement activities with potential or current suppliers.

5. Interpretation


5.1.1 “Acquisition Plan” means a document that outlines the procurement methodology and strategy to be undertaken in procuring the required works, goods or services. This plan is approved by the appropriate approving body/person before the procurement strategy has commenced.



5.1.4 “Expression of Interest” means an EOI (also referred to as a Registration of Interest - ROI), which is a formal market approach and the first step in a multi stage procurement process in a documented Acquisition plan. Suppliers are invited to express/register their interest in providing

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particular goods or services and the responses evaluated to develop a shortlist for future market approaches or negotiations, using a more detailed specification.


5.1.6 “Panel Contract” or “Pre-Qualified Panel Contracts” means a contractual arrangement established with at least two suppliers for the anticipated provision of goods, works or services, as and when required over a specified period of time.

5.1.7 “Preferred Supplier” means a Supplier that is preferred by the Council to supply certain goods, works or services, following a competitive procurement process.

5.1.8 “Project Manager” means the Council officer responsible for initiating and overseeing the procurement of goods, works or services for the purposes of achieving a desired outcome, in consultation with Procurement where required.

5.1.9 “Public Authority” means a local government Council, as defined by the ICAC Act Schedule 1 for the purposes of this Policy.



5.1.12 “Request for Information (RFI)” means an informal means of researching the particular goods, works or service and the possible solutions or approaches available in the market. As such, informal market research and the gathering of intelligence through an RFI do not require any formal procurement approvals to be sought.

5.1.13 “Request for Proposal (RFP)” means a formal request where potential suppliers are invited to suggest ways and means of meeting an identified need, allowing scope for variety and innovation.

5.1.14 “Request for Tender (RFT)” a formal request seeking responses from the market place, either in an open, select or selective manner, based on a clearly defined and specific statement of requirements.

5.1.15 “Select Tender” or “Selective Tender” means the selection of suppliers that will be invited to tender. Selection may be from a multi-use list, a list of potential suppliers that have previously responded to an Expression of Interest (EOI) or a list of potential suppliers that have been granted a specific licence or comply with a legal requirement. Sometimes referred to as limited tendering.

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6. Procurement Thresholds and Methods

6.1 The following types of procurement engagement are accepted methods for Council employees to initiate the process of sourcing goods, works or services from suppliers through the completion of an Acquisition Plan, if required.

6.2 Each value tier and its corresponding procurement method represent the minimum procurement activity that must be undertaken in order for Council to engage with suppliers.

6.3 All values stated are exclusive of any applicable GST.

6.4 Supplies up to $2k - Direct Sourcing

6.4.1 These forms of procurement are for low risk, low value supplies where a written quotation is not required prior to engaging with the supplier.

6.4.2 For the predominant form of direct sourcing, the use of a corporate credit card, Council has a dedicated Policy governing the use of corporate credit cards, directly supported by a management Protocol.

6.4.3 Other less common forms of direct purchasing are purchases made via petty cash or direct invoicing for supplies of goods, works or services of a low risk nature.

6.4.4 Whilst it is not a requirement to obtain a written quote for this procurement method, if one is supplied then the details shall be recorded as per the provisions of Council’s Records Management Policy.

6.5 Supplies between $2k to $100k – Written Quotations

6.5.1 In order to achieve the procurement governance principles, particularly best value for money, procurements in this value range will be subject to a competitive process.

6.5.2 The value ranges determining the minimum written quotations required is as follows, as tabled in the Procurement Thresholds Matrix (Appendix 1);

6.5.2.1 One (1) Written Quotation - $2,001 up to $10k.

6.5.2.2 Two (2) Written Quotations - $10,001 up to $30k.

6.5.2.3 Three (3) Written Quotations - $30,001 up to $100k.

6.5.3 On receiving all quotations from suppliers, they are to be evaluated with the preferred option being the most advantageous to Council, in considering all procurement governance principles outlined in Council’s Procurement Governance Framework this Policy is subordinate to.

6.5.4 The evaluating officer, or Panel if required, will make a recommendation for acceptance and forward all documentation to the appropriate delegated authorising officer for approval.

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6.5.5 The delegated authorising officer may approve or not approve the recommendation. If the officer does not approve the recommendation, the authorising officer may opt to approve another supplier not recommended by the evaluation party, or suspend the procurement process until such time as a more suitable supplier sourcing option can be identified.

6.5.6 Alternatively the authorising officer may request the quotation process be reinstated to test the market for more suitable options.

6.5.7 If alternative quotations are received then the delegated authorising officer may approve one of these quotations, providing written justification for the alternative approval process undertaken.

6.6 Supplies between $100,001 to $200k – Select or Open Tender

6.6.1 There are a number of procurement options open to Council staff for engaging contractors for procurements falling within this value range.

6.6.2 At the discretion of the delegated authorising officer responsible for approving the procurement process, either a formal invitation requesting tenders (RFT) or quotations (RFQ) from suppliers is to be arranged by Council in accordance with Council’s tender and contract management Protocols, supporting this Policy.

6.6.3 The procurement process may be undertaken by approaching the market via an Open Tender or Select Tender process.

6.6.4 Circumstances may arise where it is less advantageous for Council to engage in an Open RTF or RFQ process, relative to selecting known suppliers that have performed similar tasks to a satisfactory level previously.

6.6.5 In these cases a Select Request for Tender (RFT) or Request for Quotation (RFQ) process may be undertaken to engage with known suppliers for the purposes of receiving a tender or quotation response by those suppliers.

6.6.6 When undertaking a Select Tender or Quotation process, then a minimum of three (3) quotations must be obtained, prior to Council staff engaging in a formal evaluation process.

6.6.7 If for whatever reason, at least three (3) quotations are not able to be obtained from selected suppliers, then the reasons for this are to be agreed, and documented by the procurement Evaluation Panel.

6.6.8 This is to be advised to the line General Manager for consideration of further actions required.

6.7 Supplies over $200,001 – Open Tender

6.7.1 All procurements over this value threshold will be subject to an Open Tender process through public advertisement for responses, with no predetermined limitation on the amount of suppliers responding to the invitation.

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6.7.2 An Open Tender process may take the form of an initial Expression of Interest (EOI) that may lead to a Request for Tender (RFT) or a Request for Quotation (RFQ) from prospective suppliers.

6.7.3 Council also has the option of initiating the procurement process by a RFT or RFQ, eliminating the requirement for an EOI.

6.8 Delegated Threshold Approval Levels

6.8.1 The initiation of any procurement process must be approved by the appropriate authorising officer or body. These activities must comply with the Financial Delegations Policy.

6.8.2 In exceptional circumstances, where procurements result in large capital projects totalling $4m over five (5) years, or where expenditure exceeds 20% of the average of Council’s previous five (5) financial year’s operating expenses, a Report will be prepared for Council.

6.8.3 For further provisions regarding Council’s statutory requirements in planning and managing large, complex projects please refer to its dedicated Prudential Project Management Policy.

6.9 Pre-Qualification of Suppliers

6.9.1 Council employees will follow the above provisions when planning to engage a contractor for goods, works or services. However there are some circumstances in the procurement planning stage, where unilateral or open requests for quotes, proposals or tenders, may not represent the best value for money in consideration of overall procurement costs to Council at that time.

6.9.2 In these circumstances the prescribed methods of procurement below may be undertaken, whilst still adhering to the appropriate procurement thresholds levels above. Those circumstances are;

6.9.3 Pre-Qualified Panel Contracts

6.9.3.1 Council may enter in agreements where contractors complete a pre-qualification process in order to carry out specific tasks on its behalf.

6.9.3.2 In these circumstances the contractor will have successfully demonstrated their ability to meet set minimum criteria that would normally be tested through a once-off procurement.

6.9.3.3 Each of these pre-qualification processes will be conducted in accordance with Council’s Registration of Interest policies and procedures.

6.9.3.4 Typically projects or tasks undertaken through arrangements with a pre-qualified contractor are of a regular nature and/or are required to be carried out at short notice. 100


6.9.3.5 Pre-qualified Panel Contracts may also be referred to as ‘period contracts’, ‘standing offers’ or ‘pre-qualified panels’.

6.9.4 Preferred Supplier Arrangements

6.9.4.1 Another form of procurement Council may engage in is through preferred supplier arrangements through leveraging other local, state or federal government procurements.

6.9.4.2 These common use arrangements come about either through mandatory arrangements with peak organisations, or through opting into strategic alliances with specialist procurement entities.

6.9.4.3 Currently Council have strategic alliances with the following procurement peak entities in order to leverage economies of scale advantages these entities over individual Councils;

6.9.4.3.1 Local Government Association of South Australia Procurement (LGAP) and;

6.9.4.3.2 Procurement Australia (PA) and;

6.9.4.3.3 Council Solutions and;

6.9.4.3.4 Vendor Panel (VP) Australia and;

6.9.4.3.5 Other arrangements such as joint purchasing arrangements with other local (such as the Eastern Regional Alliance - ERA), state and federal entities when demand requires.

6.9.5 Dependent on the value of the procurement involved, the request for a waiver from undertaking an open market approach, will be approved by the appropriate line manager, in line with the normal procurement delegations.

6.9.6 An approval for a waiver prescribed above at 6.9.5 is not to be deemed as a policy dispensation request, as outlined in the Procurement Governance Framework. The two events are mutually exclusive in nature and shall be treated as such.

6.10 Procurement Lifecycle Elements

6.10.1 Each procurement of goods, works or services involves common elements at each stage of the procurement lifecycle, prior to engaging or executing a contract.

6.10.2 These elements are crucial to ensure a balance of the governance principles outlined above. At a high level the elements are highlighted in order to achieve those principles throughout every stage of the procurement process;

6.10.2.1 Planning the procurement’s desired outcome (including budget approval);

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6.10.2.2 Requesting information from the market segment required

6.10.2.3 Approaching the market;

6.10.2.4 Evaluating market responses;

6.10.2.5 Recommending successful responder;

6.10.2.6 Contract Negotiation;

6.10.2.7 Contract Execution;

6.10.2.8 Contract Performance Management;

6.10.2.9 Contract Close Out.

6.10.3 Council staff shall recognise these as the critical steps in a contract’s lifecycle with a supplier and adhere to the management processes outlined in the following Protocols supporting this Policy;

(a) Tenders and Contract Management – Planning and Evaluation Protocol.

(b) Tenders and Contract Management – Contract Execution Protocol

(c) Tenders and Contract Management – Contractor Performance Protocol.

7. Availability






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Policy Name: Unsolicited Proposal Treatment Policy


Last Reviewed:

Next Review: July August 2020


Responsible Officer: General Manager, Corporate and Development

Relevant Legislation: Local Government Act, 1999

Related Policies and Protocols:

Procurement Governance FrameworkPolicy Code of Conduct for Council Members Code of Conduct for Council Employees Code of Conduct for Volunteers Employees, Staff and Associates Gifts and Benefits Policy Fraud and Corruption Prevention Internal Financial Control Framework Risk Management

1. Introduction

1.1 This Policy oversees how Council treats approaches by the market place proposing to undertake particular projects that provide unique and innovative outcomes for Council and the community.

1.2 Whilst the primary focus for this Policy is directed to the conduct of Council’s employees, parts of it may apply to Elected Members in certain circumstances.




3. Our Approach



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4.1 This Policy has been developed in to order provide guidance as to the treatment of aspirational approaches initiated by the market to Council, with the aim of successfully being awarded contracts with Council for the provision of goods, works or services.

4.2 4.2 This Policy has been developed to adhere to Section 49(a1) of the Local

Government Act, 1999 requires Council to develop and maintain procurement controls including policies and procedures directed towards:

4.2.1 Obtaining value in the expenditure of public money; 4.2.2 Providing for ethical and fair treatment of participants; and 4.2.3 Ensuring probity, accountability and transparency in procurement

operations. 4.3 Policies developed must include how Council manages: 4.3.1 The contracting out of services; 4.3.2 Competitive tendering and the use of other measures to ensure that services are delivered cost-effectively; 4.3.3 The use of local goods and services; and 4.3.4 The sale or disposal of land or other assets.

4.34 In the main, these Policies are conventionally predicated towards Council ensuring it engages with the market, as the initiator of the engagement process to acquire goods, works or services from an external party.

4.5 State Government Context

4.5.1 The Department of Premier and Cabinet (DPC) has developed guidelines in how it treats unsolicited proposals by potential suppliers for specific initiatives which outline essential steps in the processing and assessment of such proposals.

4.5.2 The guidelines for unsolicited proposals for State government can be found

at http://www.sa.gov.au/topics/business-industry-and-trade/doing-business-with-government/unsolicited-proposals.

5. Interpretation


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5.1.1 “Chief Executive Officer” or “CEO” means Councils most senior executive officer.

5.1.2 “Expression of Interest” means an EOI (also referred to as a Registration of Interest - ROI) Suppliers are invited to express/register their interest in providing particular goods, works or services and the responses evaluated to develop a shortlist for future market approaches or negotiations, using a more detailed specification.“EOI” or “Expression of Interest” (also referred to as a Registration of Interest - ROI), which is a formal market approach and the first step in a multi stage procurement process in a documented Acquisition plan.

5.1.3 “Employee” means any person who is employed by the Council, but also

includes any contractors, volunteers and consultants undertaking work for, or on behalf of Council.

5.1.4 “Intellectual Property” means inventions, original designs and practical applications of ideas protected by copyright, patents, registered designs, circuit layout rights and trademarks. It can also mean trade secrets, proprietary know-how and other commercial-in-confidence information protected against unlawful disclosure by common law and through other contractual obligations.

5.1.5 “RFT” or “Request For Tender” (RFT) means an publicly advertised invitation to offertender based around aon clearly defined and specific statement of requirements.

5.1.6 “Unique” in the context of this Policy means Council cannot reasonably engage another market place provider to complete the same or equivalent outcome, within acceptable timeframes.


5.1.7 “RFQ” or “Request for Quote” means a formal request where potential suppliers are invited to suggest ways and means of meeting an identified need, allowing scope for variety and innovation.

6. Policy 6.1 Definition

6.1.1 An unsolicited proposal is a unique or innovative proposal initiated by the private sector to deliver outcomes that are desirable to Council, without being formally requested by Council through a recognised market engagement process. It may be otherwise known as a “market-led proposal” in other jurisdictions.

6.1.2 For the purposes of this Policy, an unsolicited proposal as defined at clause

6.1.1 initiated by an existing or prospective supplier to Council will

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constitute an unsolicited proposal, regardless of the nature or value associated with the proposal.

6.2 Assessment

6.2.1 In order to ensure an unsolicited proposal received by Council does not usurp or duplicate a current or previous procurement evaluation process initiated by Council, it will verify that the proposal is unique and therefore requiring further assessment.

6.3 Probity 6.3.1 At all times, Council and its officers will adhere to the Procurement

Governance principles outlined in Council’s Procurement Governance Framework (Policy).

6.3.2 Council and its officer must also continue to observe Codes of Conduct and

other Policies and Protocols providing guidance on potential conflicts of interest, fair and transparent business transactions and undertaking risk averse decision making, in consideration of all aspects of a proposal.

6.3.3 The management of, or engagement in a process concerning, an unsolicited proposal does not waive Council or its officers obligations to observe these principles at all times.

6.3.4 The principles of probity and fair and equitable procurement activities will be observed when undertaking an assessment of an unsolicited proposal. These and other underlying procurement principles can be found in Council’s Procurement Governance Framework (Policy).

6.4 Value Thresholds and Responsibility

6.4.1 In the event that the Administration feel the need to pursue an Unsolicited Proposal, thisese shall be authorised by either the General Managers or CEO in accordance with their financial delegation.administered and managed according to the financial delegation thresholds currently adopted by Council.

6.5 Exclusivity

6.5.1 Council’s default procurement method will be to invite or request proposals from the market, in order to balance its procurement governance principles in assessing and evaluating any proposals it subsequently receives in response to invites or requests.

6.5.2 However there may be unique occasions when an unsolicited proposal

represents an opportunity where a desired outcome can be attained by negotiating exclusively with the proponents of that proposal.

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6.5.3 If Council wishes to enter into exclusive negotiations with a proponent of an unsolicited proposal, the proposal must; (a) be solely limited to the proponent for the purposes of developing the

outcomes proposed; and (b) be granted for a limited time period.

6.5.4 During the period of the exclusive negotiation, similar rights will not be granted to another proponent, if that proponent happens to offer a proposal that is substantially similar, or equivalent, to that which exclusive negotiations have already commenced with a previous proponent.

6.5.5 However Council may enter into individual exclusive negotiations with more

than one proponent separately, if it has received multiple unsolicited proposals concerning the equivalent subject matter at the same time, prior to ultimately selecting a successful proponent if warranted.

6.5.6 These provisions are included to protect intellectual properties rights of the

individual proponent and ensure Council and its officers commence and conclude any exclusive negotiations with fairness and probity.

6.6 No Other Competing Proposals

6.6.1 The criteria for evaluating an unsolicited proposal is substantially the same

as those outlined in Council’s Procurement Governance Framework (Policy).

6.6.2 Underpinning the criteria is the principle of achieving value for money,

culminating in desired outcomes for Council and the community. 6.6.3 This premise guiding Council undertaking the procurement of goods, works

or services supplied by the market place is not waived through the consideration of an unsolicited proposal.

6.6.4 Nevertheless, there are distinctive evaluation characteristics that an

unsolicited proposal shall be measured against, that may not be applicable to the default procurement methods predominantly undertaken by Council.

6.6.5 The predominant characteristic is that there are no other competing

proposals from the market place through default procurement methods, such as a RFT, RFQ or EOI.

6.6.6 Council reserves the right not to enter into any form of negotiations with any

proponent of an unsolicited proposal, if it can be shown the proposal is substantially similar to a proposal under current consideration, or has been previously considered and evaluated, or is being proposed for consideration in the future.

6.6.7 This can be either through conventional means of procurement

engagement, outlined in Council’s Tenders and Contract EngagementProcurement Policy, or receipt of another similar unsolicited proposal.

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6.7 Evaluation Criteria

6.7.1 Council will evaluate an unsolicited proposal based on the following criteria.

6.7.2 Unique and Innovative

6.7.2.1 Primarily a proposal is unique if it is able to demonstrate it can

provide Council with a strategic outcome desired by the community. 6.7.2.2 It must be innovative in how the proposal plan is developed and

undertaken and be able to present Council with a rare opportunity to consider progressing.

6.7.2.3 The proponent may possess particular assets, such as real property

or intellectual property rights (IP), that other competitors do not possess, that could bring about the desired strategic outcome.

6.7.2.4 The proponent must be able to demonstrate that the sole

possession of those rights would limit an outcome sought through a competitive evaluation process initiated by Council.

6.7.3 Community Need

6.7.3.1 The unsolicited proposal must promote economic, social and/or

environmental outcomes for Council and the community and provide a clear and demonstrable link with its strategic community plans.

6.7.3.2 Council shall also consider whether the proposal would require the reallocation or reprioritisation of capacity at its disposal and whether that would run congruent with Council’s strategic objectives.

6.7.4 Capability

6.7.4.1 The proponent must be able to demonstrate that it can leverage the unique and innovative rights at its disposal to achieve the outcome it is proposing to Council.

6.7.4.2 Council reserves its right to perform any due-diligence it deems

necessary of a proposal and its proponent, as part of the evaluation process.

6.8 Assessment Progression

6.8.1 If the criteria outlined above have been met to the satisfaction of the

Council Administration, it will undertake an assessment process according to the stages summarised below.

6.8.2 Preliminary Meeting

6.8.2.1 Parties may wish to meet prior to formally registering an unsolicited proposal with Council.

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6.8.2.2 Whilst a non-compulsory stage of the assessment process, both

parties may find this useful, primarily to ascertain if the high level attributes of the proposal necessitate it to be assessed further.

6.8.2.3 If confidential aspects to the proposal are discussed, these shall

remain so between those parties at the meeting, or their representative entities, regardless of whether the proposal is considered worthy of further assessment.

6.8.3 Stage One – Initial Assessment

6.8.3.1 This stage of the assessment process primarily measures the attributes of the proposal against those deemed to be appropriate for classifying the proposition as a definitive unsolicited proposal.

6.8.3.2 Formal lodgement of the proposal must be completed before the assessment of the proposal can commence. The Council portal [email protected] is the only vehicle by which the proposal can be formally lodged and registered.

6.8.3.3 At a high level, dependent on the value of the proposal according to

criteria outlined above, the details of the proposal will be considered by commensurate Council bodies and/or officers to determine its suitability to strategic Council needs and its uniqueness.

6.8.3.4 At the completion of the initial assessment, the proposal may be

considered for further assessment and progression to Stage Two – Detailed Assessment, or alternatively the proposal may be deemed inappropriate for further consideration and assessment.

6.8.3.5 In any case, the proponent will be advised of the outcome of the

initial assessment by the commensurate Council body or officer responsible for managing and overseeing the proposal.

6.8.3.6 Only after the initial assessment has been complete and the

proponent has been advised of the outcome, will Council communicate any information regarding to the proposal the public.

6.8.4 Stage Two – Detailed Assessment

6.8.4.1 If warranted, the second assessment phase involves testing the feasibility of delivering the proposal in a practical manner.

6.8.4.2 The proponent and Council will work collaboratively to undertake feasibility testing where cost and benefit assumptions and their margins of error are agreed, along with timings for potential delivery confirmed.

6.8.4.3 Council Administration will also consider delivery options and the

implications for budgeting, resourcing and impacts on the

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community throughout a proposed implementation and completion phase.

6.8.5 Stage Three – Contract Negotiation

6.8.5.1 If an unsolicited proposal progresses through the assessment

stages outlined above, Council may wish to enter into negotiations with the proponent to deliver the proposal.

6.8.5.2 Those negotiations shall be undertaken according to current Council Policy and Protocols concerning contract negotiation and execution.

6.9 Policy Review

6.9.1 This Policy will be reviewed bi-annually in accordance with Council’s Policy and Procedure Framework.

7. Availability

7.1 The Policy is available to be downloaded, free of charge, from Council’s website www.burnside.sa.gov.au.

The Policy will be available for inspection without charge at the Civic Centre during ordinary business hours and a copy may be purchased at a fee as set annually by Council. City of Burnside Civic Centre 401 Greenhill Road, Tusmore SA 5065 Telephone; 8366 4200 Fax; 8366 4299 Email; [email protected] Office hours: Monday to Friday, 8.30am to 5.00pm (except public holidays).

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Policy Name: Unsolicited Proposal Treatment Policy


Last Reviewed:

Next Review: August 2020


Responsible Officer: General Manager, Corporate and Development

Relevant Legislation: Local Government Act, 1999

Related Policies and Protocols:

Procurement Policy Code of Conduct for Council Members Code of Conduct for Council Employees Code of Conduct for Volunteers Employees, Staff and Associates Gifts and Benefits Policy Fraud and Corruption Prevention Internal Financial Control Framework Risk Management

1. Introduction

1.1 This Policy oversees how Council treats approaches by the market place proposing to undertake particular projects that provide unique and innovative outcomes for Council and the community.

1.2 Whilst the primary focus for this Policy is directed to the conduct of Council’s employees, parts of it may apply to Elected Members in certain circumstances.




3. Our Approach




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4.1 This Policy has been developed in to order provide guidance as to the treatment

of aspirational approaches initiated by the market to Council, with the aim of successfully being awarded contracts with Council for the provision of goods, works or services.

4.2 This Policy has been developed to adhere to Section 49 of the Local Government

Act, 1999

4.3 In the main, these Policies are conventionally predicated towards Council ensuring it engages with the market, as the initiator of the engagement process to acquire goods, works or services from an external party.

5. Interpretation


5.1.1 “Chief Executive Officer” or “CEO” means Councils most senior executive officer.

5.1.2 “Expression of Interest” means an EOI (also referred to as a Registration of Interest - ROI) Suppliers are invited to express/register their interest in providing particular goods, works or services and the responses evaluated to develop a shortlist for future market approaches or negotiations, using a more detailed specification.

5.1.3 “Employee” means any person who is employed by the Council, but also

includes any contractors, volunteers and consultants undertaking work for, or on behalf of Council.

5.1.4 “Intellectual Property” means inventions, original designs and practical applications of ideas protected by copyright, patents, registered designs, circuit layout rights and trademarks. It can also mean trade secrets, proprietary know-how and other commercial-in-confidence information protected against unlawful disclosure by common law and through other contractual obligations.

5.1.5 “Request For Tender” (RFT) means an invitation to tender based on clearly defined and specific statement of requirements.

5.1.6 “Unique” in the context of this Policy means Council cannot reasonably engage another market place provider to complete the same or equivalent outcome, within acceptable timeframes.


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6. Policy 6.1 Definition

6.1.1 An unsolicited proposal is a unique or innovative proposal initiated by the private sector to deliver outcomes that are desirable to Council, without being formally requested by Council through a recognised market engagement process. It may be otherwise known as a “market-led proposal” in other jurisdictions.

6.1.2 For the purposes of this Policy, an unsolicited proposal as defined at clause

6.1.1 initiated by an existing or prospective supplier to Council will constitute an unsolicited proposal, regardless of the nature or value associated with the proposal.

6.2 Assessment

6.2.1 In order to ensure an unsolicited proposal received by Council does not usurp or duplicate a current or previous procurement evaluation process initiated by Council, it will verify that the proposal is unique and therefore requiring further assessment.

6.3 Probity

6.3.1 At all times, Council and its officers will adhere to the Procurement

Governance principles outlined in Council’s Procurement Policy.

Council and its officer must also continue to observe Codes of Conduct and other Policies and Protocols providing guidance on potential conflicts of interest, fair and transparent business transactions and undertaking risk averse decision making, in consideration of all aspects of a proposal.

6.4 Value Thresholds and Responsibility

6.4.1 In the event that Administration pursue an Unsolicited Proposal, this shall be authorised by either the General Managers or CEO in accordance with their financial delegation.

6.5 Exclusivity

6.5.1 Council’s default procurement method will be to invite or request proposals from the market, in order to balance its procurement governance principles in assessing and evaluating any proposals it subsequently receives in response to invites or requests.

6.5.2 However there may be unique occasions when an unsolicited proposal

represents an opportunity where a desired outcome can be attained by negotiating exclusively with the proponents of that proposal.

6.5.3 If Council wishes to enter into exclusive negotiations with a proponent of an

unsolicited proposal, the proposal must;

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(a) be solely limited to the proponent for the purposes of developing the outcomes proposed; and

(b) be granted for a limited time period.

6.5.4 During the period of the exclusive negotiation, similar rights will not be granted to another proponent, if that proponent happens to offer a proposal that is substantially similar, or equivalent, to that which exclusive negotiations have already commenced with a previous proponent.

6.5.5 However Council may enter into individual exclusive negotiations with more

than one proponent separately, if it has received multiple unsolicited proposals concerning the equivalent subject matter at the same time, prior to ultimately selecting a successful proponent if warranted.

6.5.6 These provisions are included to protect intellectual properties rights of the

individual proponent and ensure Council and its officers commence and conclude any exclusive negotiations with fairness and probity.

6.6 No Other Competing Proposals

6.6.1 The criteria for evaluating an unsolicited proposal is substantially the same

as those outlined in Council’s Procurement Policy. 6.6.2 Underpinning the criteria is the principle of achieving value for money,

culminating in desired outcomes for Council and the community. 6.6.3 This premise guiding Council undertaking the procurement of goods, works

or services supplied by the market place is not waived through the consideration of an unsolicited proposal.

6.6.4 Nevertheless, there are distinctive evaluation characteristics that an

unsolicited proposal shall be measured against, that may not be applicable to the default procurement methods predominantly undertaken by Council.

6.6.5 The predominant characteristic is that there are no other competing

proposals from the market place through default procurement methods, such as a RFT, RFQ or EOI.

6.6.6 Council reserves the right not to enter into any form of negotiations with any

proponent of an unsolicited proposal, if it can be shown the proposal is substantially similar to a proposal under current consideration, or has been previously considered and evaluated, or is being proposed for consideration in the future.

6.6.7 This can be either through conventional means of procurement

engagement, outlined in Council’s Procurement Policy, or receipt of another similar unsolicited proposal.

6.7 Evaluation Criteria

6.7.1 Council will evaluate an unsolicited proposal based on the following criteria.

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6.7.2 Unique and Innovative 6.7.2.1 Primarily a proposal is unique if it is able to demonstrate it can

provide Council with a strategic outcome desired by the community. 6.7.2.2 It must be innovative in how the proposal plan is developed and

undertaken and be able to present Council with a rare opportunity to consider progressing.

6.7.2.3 The proponent may possess particular assets, such as real property

or intellectual property rights (IP), that other competitors do not possess, that could bring about the desired strategic outcome.

6.7.2.4 The proponent must be able to demonstrate that the sole

possession of those rights would limit an outcome sought through a competitive evaluation process initiated by Council.

6.7.3 Community Need

6.7.3.1 The unsolicited proposal must promote economic, social and/or

environmental outcomes for Council and the community and provide a clear and demonstrable link with its strategic community plans.

6.7.3.2 Council shall also consider whether the proposal would require the reallocation or reprioritisation of capacity at its disposal and whether that would run congruent with Council’s strategic objectives.

6.7.4 Capability

6.7.4.1 The proponent must be able to demonstrate that it can leverage the unique and innovative rights at its disposal to achieve the outcome it is proposing to Council.

6.7.4.2 Council reserves its right to perform any due-diligence it deems

necessary of a proposal and its proponent, as part of the evaluation process.

6.8 Assessment Progression

6.8.1 If the criteria outlined above have been met to the satisfaction of the

Council Administration, it will undertake an assessment process according to the stages summarised below.

6.8.2 Preliminary Meeting

6.8.2.1 Parties may wish to meet prior to formally registering an unsolicited proposal with Council.

6.8.2.2 Whilst a non-compulsory stage of the assessment process, both parties may find this useful, primarily to ascertain if the high level attributes of the proposal necessitate it to be assessed further.

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6

6.8.2.3 If confidential aspects to the proposal are discussed, these shall remain so between those parties at the meeting, or their representative entities, regardless of whether the proposal is considered worthy of further assessment.

6.8.3 Stage One – Initial Assessment

6.8.3.1 This stage of the assessment process primarily measures the attributes of the proposal against those deemed to be appropriate for classifying the proposition as a definitive unsolicited proposal.

6.8.3.2 Formal lodgement of the proposal must be completed before the assessment of the proposal can commence. The Council portal [email protected] is the only vehicle by which the proposal can be formally lodged and registered.

6.8.3.3 At a high level, dependent on the value of the proposal according to

criteria outlined above, the details of the proposal will be considered by commensurate Council bodies and/or officers to determine its suitability to strategic Council needs and its uniqueness.

6.8.3.4 At the completion of the initial assessment, the proposal may be

considered for further assessment and progression to Stage Two – Detailed Assessment, or alternatively the proposal may be deemed inappropriate for further consideration and assessment.

6.8.3.5 In any case, the proponent will be advised of the outcome of the

initial assessment by the commensurate Council body or officer responsible for managing and overseeing the proposal.

6.8.3.6 Only after the initial assessment has been complete and the

proponent has been advised of the outcome, will Council communicate any information regarding to the proposal the public.

6.8.4 Stage Two – Detailed Assessment

6.8.4.1 If warranted, the second assessment phase involves testing the feasibility of delivering the proposal in a practical manner.

6.8.4.2 The proponent and Council will work collaboratively to undertake feasibility testing where cost and benefit assumptions and their margins of error are agreed, along with timings for potential delivery confirmed.

6.8.4.3 Council Administration will also consider delivery options and the

implications for budgeting, resourcing and impacts on the community throughout a proposed implementation and completion phase.

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7

6.8.5 Stage Three – Contract Negotiation

6.8.5.1 If an unsolicited proposal progresses through the assessment stages outlined above, Council may wish to enter into negotiations with the proponent to deliver the proposal.

6.8.5.2 Those negotiations shall be undertaken according to current Council Policy and Protocols concerning contract negotiation and execution.

6.9 Policy Review

6.9.1 This Policy will be reviewed bi-annually in accordance with Council’s Policy and Procedure Framework.

7. Availability

7.1 The Policy is available to be downloaded, free of charge, from Council’s website www.burnside.sa.gov.au.

The Policy will be available for inspection without charge at the Civic Centre during ordinary business hours and a copy may be purchased at a fee as set annually by Council. City of Burnside Civic Centre 401 Greenhill Road, Tusmore SA 5065 Telephone; 8366 4200 Fax; 8366 4299 Email; [email protected] Office hours: Monday to Friday, 8.30am to 5.00pm (except public holidays).

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Item No: 5.5 To: Audit Committee Date: 20 August 2018 Author: Karishma Reynolds – Group Manager, Finance and Governance General Manager and Division:


Subject: FINANCIAL DELEGATIONS POLICY – REVIEW (OPERATIONAL) Attachments: A. Financial Delegations Policy (Tracked Changes)

B. Financial Delegations Policy (New Version) Prev. Resolution: A4049, 15/8/16

C10807, 13/9/16



2. That the updated Financial Delegations Policy be endorsed and presented to Council for consideration and adoption.

Purpose

1. To provide the Audit Committee with the opportunity to review and endorse the draft Financial Delegation Policy prior to its presentation to Council for consideration and adoption.

Strategic Plan





3.1 Discussion with the Finance and Procurement Teams and General Manager, Corporate and Development in addition to an Information Document for Elected Members.

Statutory



Policy

5. The recommended adoption of this specific Policy is discussed in the ‘Discussion’ section of the report.

118


Risk Assessment

6. Not having adequate financial delegations and monitoring in place could hinder the smooth operation of Council’s day to day activities.

Finance

7. There are no direct financial or budgetary implications associated with the establishment of this Policy. The Policy provides Council with a framework to ensure that officers have appropriate levels of authority to expend funds on behalf of the Council.

Discussion

8. The Financial Delegations Policy has been reviewed and the following amendments have been made as a result:

9.1 changes to position titles have been amended to reflect the new organisational structure, with the Interpretations section in the Policy containing additional clarification;

9.2 credit Card Holders’ delegation limit has been amended to reflect the maximum transaction limit held of $5,000; and

9.3 relevant title and documentation references have been updated where applicable.

9. The attached Financial Delegations Policy sets the following limits based upon the Council Officer’s delegated position:

Position Delegating Authority

Maximum Limit per

transaction (excluding GST)

Chief Executive Officer Council In Line with the Act

GM Chief Executive Officer 300,000

Managers (Urban Services) General Manager 100,000

Managers (Other Departments) General Manager 50,000

Senior Officer General Manager/ Manager 20,000

Junior Officer General Manager/ Manager 10,000

Credit Card Holders General Manager/ Manager 5,000

Financial Delegation

Conclusion 10. It is recommended that the Audit Committee endorse the revised Financial Delegations

Policy and submit to Council for consideration and adoption.

119

Document Set ID: 2934317

Version: 3, Version Date: 23/09/2016

Financial Delegations Policy

Classification:

Council Policy

Policy Name:


First Issued / Approved: 13 September 2016 (C10807)

Last Reviewed: 13 September 2016 (C10807)




Group Manager, Finance and ProcurementGovernance


Local Government Act, 1999 Local Government (Financial Management) Regulations 2011

Related Policies: General Ledger Financial Information Policy Procurement Policy

1 Introduction

This Policy outlines Council’s principles for delegating, reviewing and updating financial authority. The Policy provides a framework in order to ensure that delegated officers have appropriate authority to conduct their activities and that all transactions incurred are appropriately authorised.


2.1 Strategic Desired Outcomes are;

2.1.1 Protecting public funds and assets ensuring all transactions are appropriately authorised.

2.1.2 Delivery of good governance in Council business.

2.1.3 A financially sound Council that is accountable, responsible and sustainable.


3.1 This Policy is directly related to Section 137 (Expenditure of funds) of the Local Government Act, 1999 (the Act) gives Council the power to expend its funds in the exercise, performance or discharge of its powers, functions or duties under the Act or any other Act.

3.2 Council has delegated this power, with limitations, to the Chief Executive Officer (CEO) in accordance with Section 44 of the Act and this power is further sub- delegated in accordance with Section 101 of the Act.

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4 Interpretation


4.1.1 “Council” means the City of Burnside Council.

4.1.2 “Delegating Authority” means the person and/or Committee that makes a delegation to another person and/or Committee.

4.1.3 “Delegated Officers” are the holders of those positions which have been approved to hold and exercise a financial delegation.

4.1.4 “Financial delegation” is a delegation of power made under Sections 44 and 101 of the Act to expend approved budgeted funds and to source funds on behalf of Council in accordance with Sections 137 and 133 respectively.

4.1.5 “Junior Officer” represents the financial delegation provided to the most Senior Officer below the Team Leader or Coordinators role. This financial delegation would be provided at the Managers’ discretion based on their position.

4.1.4

4.1.6 “Legislation” means all relevant State and Commonwealth legislation and Council By-Laws.

4.1.7 “Senior Officer” represents a Team Leader in the Corporate and Development division and Community Connections department or and Coordinators in the Assets and Infrastructure and Operations and Environment departments. At the Managers’ discretion this financial delegation will be applied to a Non Team leader or Coordinator based on their position requirements.

4.1.5 “Junior Officer” represents the financial delegation provided to the most Senior Officer below the Team Leader or Coordinators role. This financial delegation would be provided at the Mmanagers’ discretion based on their position.

5 Policy

5.1 A financial delegation prescribes the dollar amount up to which an officer is authorised to commit and/or make expenditure in respect of an individual transaction.

Any member of staff may createraise a purchase requisition (request an order) however this request must then be authorised by an officer with sufficient financial delegation to become an actual generate a purchase order for goods/services. This also applies to verbal or other orders not made through Council's purchasing system.

5.2 A financial delegation allows an employee to:

5.2.1 Authorise a purchase requisition or other type of purchase request by another officer (an employee should not approve their own purchase requisition, this ensures adequate segregation of duties)

5.2.2 Authorise expenses, invoices and payments (including petty cash). Approval of transactions and/or payments must not exceed the delegated officers’ financial delegation limit per transaction.

5.2.3 A single large transaction, which may exceed the delegated

Formatted: List Paragraph, Right: 0

cm, No bullets or numbering, Tabstops: Not at 6.13 cm

Formatted: Right, Indent: Left: 6.13cm, No bullets or numbering

121



limit of authority for an officer cannot be split into multiple, smaller, transactions that then fall within the levels of delegated authority for that officer.

5.3 Applying for a financial delegation

5.3.1 With the exception of the Chief Executive Officer, an application for a financial delegation must be completed using the finance request form on the intranet or via email. The application for a financial delegation should adhere to the set limits listed in the table below and should be endorsed by the relevant Manager or General Manager.

5.3.25.3.1

5.3.2 In case of a temporary financial delegation, the dates during which the delegation will apply need to be clearly indicated on the request form.

5.4 Financial Delegation Register

5.4.1 A Financial Delegations register will be kept and maintained by the Finance department. This register indicates the financial delegations by department including the name of the employee and the standard limit delegated to the employee as prescribed


Maximum Limit per










122



under section 5.3.1 above.

5.4.2 The Financial Delegations register will be updated for:

5.4.2.1 The appointment or termination of an employee;

5.4.2.2 If there is a change in the position of an employee (both temporary and permanent); and

5.4.2.3 If a variation is required to the current financial delegation of an employee per the CEO’s request.

5.5 Reviewing the Financial Delegation Register

5.5.1 Per the Local Government Act, 1999 section 44 (6) of the Act provides that the Council must cause a separate record to be kept of all delegations made under Section 44, and should at least once in every financial year review the delegations for the time being in force under Section 44.

5.5.2 At least quarterly, the Finance team will prepare a report and distribute to all managers for review.

5.5.3 Any changes are required to be communicated in a timely manner to the Finance team. Any amendments will require appropriate approvals by their Manager or General Manager.

5.5.4 The financial delegations register will be reviewed for appropriateness on an annual basis.

6 Availability






123

Financial Delegations Policy

Classification:

Council Policy

Policy Name:


First Issued / Approved: 13 September 2016 (C10807)

Last Reviewed: 13 September 2016 (C10807)




Group Manager, Finance and Governance


Local Government Act, 1999 Local Government (Financial Management) Regulations 2011

Related Policies: General Ledger Financial Information Policy Procurement Policy

1 Introduction

This Policy outlines Council’s principles for delegating, reviewing and updating financial authority. The Policy provides a framework in order to ensure that delegated officers have appropriate authority to conduct their activities and that all transactions incurred are appropriately authorised.


2.1 Strategic Desired Outcomes are;

2.1.1 Protecting public funds and assets ensuring all transactions are appropriately authorised.

2.1.2 Delivery of good governance in Council business.

2.1.3 A financially sound Council that is accountable, responsible and sustainable.


3.1 This Policy is directly related to Section 137 (Expenditure of funds) of the Local Government Act, 1999 (the Act) gives Council the power to expend its funds in the exercise, performance or discharge of its powers, functions or duties under the Act or any other Act.

3.2 Council has delegated this power, with limitations, to the Chief Executive Officer (CEO) in accordance with Section 44 of the Act and this power is further sub- delegated in accordance with Section 101 of the Act.

124

4 Interpretation


4.1.1 “Council” means the City of Burnside Council.

4.1.2 “Delegating Authority” means the person and/or Committee that makes a delegation to another person and/or Committee.

4.1.3 “Delegated Officers” are the holders of those positions which have been approved to hold and exercise a financial delegation.

4.1.4 “Financial delegation” is a delegation of power made under Sections 44 and 101 of the Act to expend approved budgeted funds and to source funds on behalf of Council in accordance with Sections 137 and 133 respectively.

4.1.5 “Junior Officer” represents the financial delegation provided to the most Senior Officer below the Team Leader or Coordinators role. This financial delegation would be provided at the Managers’ discretion based on their position.

4.1.6 “Legislation” means all relevant State and Commonwealth legislation and Council By-Laws.

4.1.7 “Senior Officer” represents a Team Leader in the Corporate and Development division and Community Connections department or Coordinator in the Assets and Infrastructure and Operations and Environment departments. At the Managers’ discretion this financial delegation will be applied to a Non Team leader or Coordinator based on their position requirements.

5 Policy

5.1 A financial delegation prescribes the dollar amount up to which an officer is authorised to commit and/or make expenditure in respect of an individual transaction.

Any member of staff may create a purchase requisition (request an order) however this request must be authorised by an officer with sufficient financial delegation to generate a purchase order for goods/services. This also applies to verbal or other orders not made through Council's purchasing system.

5.2 A financial delegation allows an employee to:

5.2.1 Authorise a purchase requisition or other type of purchase request by another officer (an employee should not approve their own purchase requisition, this ensures adequate segregation of duties)

5.2.2 Authorise expenses, invoices and payments (including petty cash). Approval of transactions and/or payments must not exceed the delegated officers’ financial delegation limit per transaction.

5.2.3 A single large transaction, which may exceed the delegated limit of authority for an officer cannot be split into multiple, smaller, transactions that then fall within the levels of delegated authority for that officer.

125

5.3 Applying for a financial delegation

5.3.1 With the exception of the Chief Executive Officer, an application for a financial delegation must be completed using the finance request form on the intranet or via email. The application for a financial delegation should adhere to the set limits listed in the table below and should be endorsed by the relevant Manager or General Manager.

5.3.2 In case of a temporary financial delegation, the dates during which the delegation will apply need to be clearly indicated on the request form.

5.4 Financial Delegation Register

5.4.1 A Financial Delegations register will be kept and maintained by the Finance department. This register indicates the financial delegations by department including the name of the employee and the standard limit delegated to the employee as prescribed under section 5.3.1 above.

5.4.2 The Financial Delegations register will be updated for:

5.4.2.1 The appointment or termination of an employee;

5.4.2.2 If there is a change in the position of an employee (both temporary and permanent); and

5.4.2.3 If a variation is required to the current financial delegation of an employee per the CEO’s request.

5.5 Reviewing the Financial Delegation Register

5.5.1 Per the Local Government Act, 1999 section 44 (6) of the Act provides that the Council must cause a separate record to be kept of all delegations made under Section 44, and should at least once in every financial year review the delegations for the time being in force under Section 44.

5.5.2 At least quarterly, the Finance team will prepare a report and distribute to all managers for review.

5.5.3 Any changes are required to be communicated in a timely manner to the Finance team. Any amendments will require appropriate approvals by their Manager or General Manager.


Maximum Limit per










126

5.5.4 The financial delegations register will be reviewed for appropriateness on an annual basis.

6 Availability






127

Council Agenda Item 5.6 20 August 2018

Item No: 5.6 To: Audit Committee Date: 20 August 2018 Author: Stephen Smith – WHS and Risk Management Coordinator General Manger and Division:


Subject: UPDATE TO RISK MANAGEMENT POLICY (STRATEGIC) Attachments: A. Risk Management Policy (track changes)

B. Risk Management Policy (new version) Prev. Resolution: A4047, 15/8/16



2. That the Audit Committee endorse the updated Risk Management Policy and present to Council for consideration and adoption.

3. That the Audit Committee note that following endorsement the Administration will review the Risk Management Framework document and update as necessary to ensure it remains consistent with the updated Policy.

Purpose

1. To provide the Audit Committee with an update on areas of change within the Risk Management Policy and request endorsement of the document to enable it to be presented to Council for consideration and adoption.

Strategic Plan





3.1. Discussion with Adi Roy Chowdhury – Strategic Risk Consultant, Local Government Risk Services.

Statutory


Section 48 (aa1) of the Local Government Act 1999

Section 134(4)(b) of the Local Government Act 1999

129

Council Agenda Item 5.6 20 August 2018

Policy



Risk Assessment

6. There are no risks associated with the recommendation.

Finance

7. There are no financial implications for the City of Burnside in respect of the recommendation.

Discussion

8. The City of Burnside has had a Risk Management Policy and Framework in place since 2003.

9. The Policy was last reviewed by the Audit Committee in August 2016. This recent review has been undertaken to meet scheduled review timeframes.

10. In reviewing the Policy, comparison has been made with several other metropolitan Council’s Risk Management Policy Statements and a Risk Policy Template created by Local Government Risk Services, to ensure consistency and appropriate coverage of all aspects of the risk management process.

11. Change to the legislative requirements section of the Policy have been made to align it with relevant sections of the Local Government Act 1999.

12. Additional policy statements have been made to highlight the important role of managers in the risk management process and to ensure that the Risk Register, Risk Management Policy and Risk Management Framework are subject to review, reports and audits.

13. A further outcome of this review has been to clearly articulate the responsibilities of various parties within the risk management process.

14. There is no significant change in the way the City of Burnside documents and manages risks as a result of the modifications to the Policy.

15. Upon Council’s adoption of the Risk Management Policy, the Risk Management Framework document will be reviewed and updated as necessary to ensure it remains consistent with the updated Policy. The updated Framework will then be tabled at the next available Audit Committee Meeting for endorsement.

Conclusion

16. The Risk Management Policy has been reviewed and updated to reflect legislative requirements and ensure responsibilities of parties and elements of the Risk Management Program are subject to appropriate review, reports and audits.

130

Risk Management


Policy Name: Risk Management

First Issued / Approved: March 2008

Last Reviewed:

7 February 2012 (A0225) 13 May 2014 (C9715) 13 September 2016 (C10811) JuneAugust 2018

Next Review: SeptemberJuneAugust 202018

ECM tracking number: 1392049

Responsible Officer: General Manager Corporate Servicesand Development

Relevant Legislation: Local Government Act 1999

Related Documents:

ISO31000:2009 Risk Management – Principles and Guidelines

City of Burnside Risk Management Framework

Internal Financial Controls Framework Policy

1. Introduction

Council will adopt a structured and systematic approach to Risk Management with the aim of improving its decision-making practices, and performance and thereby minimising risk increasing confidence toin the achievement of ourits specified outcomes and approaches..approaches.


2.1 Delivery of good governance in Council business 3. Our Approach

3.1 Regularly review, update and adopt leading governance, risk management and administrative practices.

3.2 Review services to ensure they meet community needs facilitating efficient and

effective outcomes of the Strategic Community Plan.


4.1 Section 125 of the Local Government Act 1999 requires Council to ensure that appropriate policies practices and procedures of internal control are implemented and maintained in order to assist the Council to carry out its activities in an efficient and orderly manner to achieve its objectives.

Formatted: Font: Italic

131

4.2 Section 132A of the Local Government Act 1999 requires Council to ensure that appropriate policies, practices and procedures are implemented and maintained in order toto ensure compliance with statutory requirements and achieve and maintain standards of good public administration.

4.3 Section 134(4)(b) of the Local Government Act 1999 (the Act) requires Council to

adopt risk management policies, controls and systems specifically in relation to borrowing and related financial arrangements.

4.24 It is prudent for Council to make this Policy in order toto address other “risks”

identified in other legislation such as Emergency Management Act, Work Health and Safety Act, etc.

5. Definitions

5.1 Risk Management - the culture, processes and structures directed towards realising potential opportunities, whilst managing adverse effects.

5.2 Risk - the effect of uncertainty on Council’s business objectives whether it be

positive (opportunity) or negative (threat).

6. Policy

6.1 The City of Burnside is committed to applying risk management principles across all of its operations and functions (inclusive of business continuity arrangements), in order to more effectively realise Council’s Vision, Desired Outcomes, Approaches and Actions.

6.2 Council will adopt and implement Risk Management involves adopting a

systematic procedures and practicesapproach to identify, evaluate, treat and monitor risk in all Council activities so that the risks associated with these activities are controlled and opportunities maximised. The process of risk management comprises identifying opportunities for avoiding or mitigating losses or exploiting situations with potential positive outcomes as well as for responding to adverse events or actions.

6.3 Council will integrate risk management practices into its dealing with

stakeholders, its corporate culture and everyday business operations at the strategic and operational levels. Included in this are arrangements to minimise the impact of business disruptions on Council’s critical functions or community services.

6.4 Managers will leader, actively participate and have oversight over all aspects of

risk management within their area of responsibility. 6.45 Council will maintain a Risk Management Framework consistent with the

guidelines and principles of risk management as set out in International Standard ISO31000:2009 – Risk Management Principles and guidelines. The aim of this framework is to provide a consistent process for dealing with uncertainties likely to impact on the achievement of the Strategic Community Plan and Corporate Plan..



132

6.6 The Rrisk Rregister(s) will be periodically and consistently reviewed and reported upon in accordance with the Risk Management Framework.

6.7 The Rrisk Mmanagement Pprogram, including the Risk Management Policy and

Framework, will be subject to compliance auditing and review from time to time. Scope 6.58 This policy encompasses every member of the organisation, including Elected

Members, Chief Executive Officer, Leadership Team, workers and volunteers given that each has responsibility for the effective management of risk within their area(s) of responsibility.

Responsibility 6.96 Council is responsible for setting the organisation’s risk appetitethe approval of

this policy and framework and oversight of the organisation’s systems for managing risk. To assist Council in discharging its responsibility in relation to risk management, the Council may seek the views of the Audit Committee.

6.10 Audit Committee is responsible for checking that appropriate policies, practices

and procedures of internal control are implemented and maintained. This will in order to assist the Council to carry out its activities in an efficient and orderly manner to achieve its objectives, to ensure adherence to Council and Management policies, to safeguard the Council’s assets, and to secure (as far as possible) the accuracy and reliability of Council records.

6.711 Chief Executive Officer is responsible for ensuring that a Rrisk Mmanagement

processFframework is established, implemented and maintained in accordance with this Risk Management Policy. Further that risk management is integrated into Council’s activities and functions.

6.812 Leadership Team members are accountable for the implementation,

maintenance and evaluation of risk management within their areas of responsibility in accordance with the Risk Management Framework. They are responsible for creating an environment where each staff memberworkers is responsible for and actively involved in managing risk.

6.13 WHS and Risk Management Coordinator is responsible for assisting the

Leadership Team to develop, implement and maintain the rRisk Mmanagement Fframework and Pprogram in a systematic and standardised manner.

6.914 Workers, Volunteers and Contractors are responsible for identifying potential

risks and for the effective management of risk as part of their employment or contractual obligations with the Council.

7. Availability

7. 7.1 The Policy is available to be downloaded, free of charge, from Council’s website

www.burnside.sa.gov.au

Formatted: Font: Bold

Formatted: Indent: Left: 1.63 cm, No bullets or numbering, Tab stops:Not at 1.63 cm

133





134

Risk Management


Policy Name: Risk Management

First Issued / Approved: March 2008

Last Reviewed:

7 February 2012 (A0225) 13 May 2014 (C9715) 13 September 2016 (C10811) August 2018


ECM tracking number: 1392049

Responsible Officer: General Manager Corporate and Development

Relevant Legislation: Local Government Act 1999

Related Documents:

ISO31000:2009 Risk Management – Principles and Guidelines

City of Burnside Risk Management Framework

Internal Financial Controls Framework Policy

1. Introduction

Council will adopt a structured and systematic approach to Risk Management with the aim of improving its decision-making practices, performance and thereby increasing confidence in the achievement of its specified outcomes and approaches.


2.1 Delivery of good governance in Council business 3. Our Approach

3.1 Regularly review, update and adopt leading governance, risk management and administrative practices.

3.2 Review services to ensure they meet community needs facilitating efficient and

effective outcomes of the Strategic Community Plan.


4.1 Section 125 of the Local Government Act 1999 requires Council to ensure that appropriate policies practices and procedures of internal control are implemented and maintained to assist the Council to carry out its activities in an efficient and orderly manner to achieve its objectives.

135

4.2 Section 132A of the Local Government Act 1999 requires Council to ensure that appropriate policies, practices and procedures are implemented and maintained to ensure compliance with statutory requirements and achieve and maintain standards of good public administration.

4.3 Section 134(4)(b) of the Local Government Act 1999 requires Council to adopt

risk management policies, controls and systems specifically in relation to borrowing and related financial arrangements.

4.4 It is prudent for Council to make this Policy to address other “risks” identified in

other legislation such as Emergency Management Act, Work Health and Safety Act, etc.

5. Definitions

5.1 Risk Management - the culture, processes and structures directed towards realising potential opportunities, whilst managing adverse effects.

5.2 Risk - the effect of uncertainty on Council’s business objectives.

6. Policy

6.1 The City of Burnside is committed to applying risk management principles across all of its operations and functions (inclusive of business continuity arrangements), in order to more effectively realise Council’s Vision, Desired Outcomes, Approaches and Actions.

6.2 Council will adopt and implement a systematic approach to identify, evaluate,

treat and monitor risk in all Council activities so that the risks associated with these activities are controlled and opportunities maximised. The process of risk management comprises identifying opportunities for avoiding or mitigating losses or exploiting situations with potential positive outcomes as well as for responding to adverse events or actions.

6.3 Council will integrate risk management practices into its dealing with

stakeholders, its corporate culture and everyday business operations at the strategic and operational levels. Included in this are arrangements to minimise the impact of business disruptions on Council’s critical functions or community services.

6.4 Managers will lead, actively participate and have oversight over all aspects of risk

management within their area of responsibility. 6.5 Council will maintain a Risk Management Framework consistent with the

guidelines and principles of risk management as set out in International Standard ISO31000:2009 – Risk Management Principles and guidelines. The aim of this framework is to provide a consistent process for dealing with uncertainties likely to impact on the achievement of the Strategic Community Plan and Corporate Plan.

6.6 The Risk Register(s) will be periodically and consistently reviewed and reported

upon in accordance with the Risk Management Framework.

136

6.7 The Risk Management Program, including the Risk Management Policy and Framework, will be subject to compliance auditing and review from time to time.

Scope 6.8 This policy encompasses every member of the organisation, including Elected

Members, Chief Executive Officer, Leadership Team, workers and volunteers given that each has responsibility for the effective management of risk within their area(s) of responsibility.

Responsibility 6.9 Council is responsible for the approval of this Policy and Framework and

oversight of the organisation’s systems for managing risk. To assist Council in discharging its responsibility in relation to risk management, the Council may seek the views of the Audit Committee.

6.10 Audit Committee is responsible for checking that appropriate policies, practices

and procedures of internal control are implemented and maintained. This will assist the Council to carry out its activities in an efficient and orderly manner to achieve its objectives, to ensure adherence to Council and Management policies, to safeguard the Council’s assets, and to secure (as far as possible) the accuracy and reliability of Council records.

6.11 Chief Executive Officer is responsible for ensuring that a Risk Management

Framework is established, implemented and maintained in accordance with this Risk Management Policy. Further that risk management is integrated into Council’s activities and functions.

6.12 Leadership Team members are accountable for the implementation,

maintenance and evaluation of risk management within their areas of responsibility in accordance with the Risk Management Framework. They are responsible for creating an environment where each worker is responsible for and actively involved in managing risk.

6.13 WHS and Risk Management Coordinator is responsible for assisting the

Leadership Team to develop, implement and maintain the Risk Management Framework and Program in a systematic and standardised manner.

6.14 Workers, Volunteers and Contractors are responsible for identifying potential

risks and for the effective management of risk as part of their employment or contractual obligations with the Council.

7. Availability

7.1 The Policy is available to be downloaded, free of charge, from Council’s website

www.burnside.sa.gov.au


137




138

AUDIT COMMITTEE FORWARD AGENDA

FEBRUARY 2018

Aug-16 Oct-16 Nov-16 Feb-17 Apr-17 Jun-17 21-Aug-17 4-Sep-17 16-Oct-17 20-Nov-17 19-Feb-18 9-Apr-18 18-Jun-18 20-Aug-18 22-Oct-18

ANNUAL BUSINESS PLAN AND LONG TERM FINANCIAL PLAN

Annual Business Plan and Budget a a a a a

LTFP a a

LTFP Parameters

ANNUAL REPORT AND EXTERNAL AUDIT

Annual Report (Strategic) a a a

External Auditor’s Interim Report/ Update a a a a a

External Auditor’s Report to the Council for Year End a a

External Auditor Presentation a a

Independence of Council Auditor a a a

Appointment of external auditor a

REGIONAL SUBSIDIARIES

Regional Subsidiary Periodical Financial Results a a a a a a a

ERA Water - Standing Item a a a a a

Attendance from Regional Subsidiary Rep ERA Water East Waste HLA EHA BHKC

INTERNAL REVIEWS AND INTERNAL AUDIT

Business Service Review – Finance

Business Service Review – Finance Structure

Business Service Review – Procurement

Internal Audit – Status Report a

Internal Audit Plan Update / Review a a a a a a a a

Follow-Up on Finance – Rates

Internal Financial Controls Self-Assessment a a a a

Internal Revenue Review – Verbal Update

Investment Performance Review a

Good Governance Assessment Program – Progress Report

Governance Critical Dates Report

Key Actions and Outstanding Key Dates Table a a a a a a a

Land & Buildings Valuation Project – Progress Report

Report on Business Continuity and Information Technology

Disaster Recovery Exercise

Effectiveness and Efficiency program

WHS Management System KPI Audit a

Update on WHS a a a a a

2017 SA LGRS Membership Summary a

Review of new standards (Leases and Revenue) a

AUDIT COMMITTEE RELATED

Audit Committee Terms of Reference a

Review Of Audit Committee Activities (Operational) a a

Forward Agenda a a a a a a a a a a a a a

POLICIES:

Policy Protocol Tracking Table a a a a

Register Compliance Table a a

Council Policies and Codes Management Protocols

Independent Commissioner Against Corruption – Awareness

And Application Policy

Financial Delegations Policy a a

Internal Financial Controls Policy a

Review Draft Treasury Management Policy

ProcurementGovernance Policy a a

Prudential Policy a

Financial Indicators Policy a

Motor Vehicle Policy a

Elected Members Allowance and Benefits Policy a

Treasury Management Policy a

Asset Disposal Policy a

Corporate Credit Card Policy a

Discretionary Rebates of Rates Policy

Fixed Asset Financial Reporting Policy a

Fraud and Corruption Policy

General Ledger Financial Information Policy a

Light Fleet Management Policy

Rating Policy a


Taxation Policy a

Fees and Charges Policy a

The Committee shall meet at 6.00pm on the third Monday of February, April,

June, August, and October or as otherwise determined by Council

(whether as the result of a motion upon notice in or an Officer’s Report to

Council).

2016-17 2017-18

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Notice of Audit Committee Meeting · 20/08/2018 · Mr Sean Tu . Staff Present: Martin Cooper,...

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Transcript of Notice of Audit Committee Meeting · 20/08/2018 · Mr Sean Tu . Staff Present: Martin Cooper,...