City of Bunbury 4 Stephen Street Bunbury WA 6230 Western Australia Correspondence to: Post Office Box 21 Bunbury WA 6231 Te l e phone: (08) 9792 7000 ◌ Facsimile: (08) 9792 7184 ◌ TTY: (08) 9792 7370 ◌ www.bunbury.wa.gov.au Appendices Council Meeting 29 November 2016 Appendix MTBN-1 Audit Committee Minutes 11/11/2016 Appendix MTBN-2 Community Access Committee Minutes 14/10/2016 Appendix DEL-1 Report on ICTC Conference 2016 Appendix DEL-2 Report on Training – CEO Performance Appraisals Appendix DEL-3 CEO Appraisal Checklist Appendix RAC-1 2016 City of Bunbury Financial Statements and Audit Report Appendix RAC-2 Audit Findings Report Appendix RAC-3 Financial Management Systems Review Report Appendix RAC-4 Audit Reg 17 updated 1 November 2016 Appendix CEO-1 2016 October Budget Review Appendix CEO-2 Statement of Comprehensive Income – October 2016 Appendix CEO-3 Statement of Financial Activity - October 2016 Appendix CEO-4 Net Current Assets - October 2016 Appendix CEO-5 Statement of Financial Position - October 2016 Appendix CEO-6 Capital Expenditure Summary – October 2016 Appendix CEO-7 Operating projects Report – October 2016 Appendix CEO-8 Schedule of Accounts Paid – October 2016 Appendix DPDRS-1 Lot 13 No.33 Stirling Street – Location Plan Appendix DPDRS-2 Lot 13 No.33 Stirling Street – Concept Plan for Car Parking Appendix DPDRS-3 Lot 13 No.33 Stirling Street – Schedule of Submissions Appendix DPDRS-4 Scheme Amendment 88 – Schedule LG Proposed Modifications
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City of Bunbury
4 Stephen Street Bunbury WA 6230 Western Australia
Audit Committee Terms of Reference The duties and responsibilities of the committee will be:
a) Provide guidance and assistance to Council as to the carrying out the functions of the local government in relation to audits;
b) Develop and recommend to Council an appropriate process for the selection and appointment of a person as the local government’s auditor;
c) Develop and recommend to Council:
a list of those matters to be audited; and
the scope of the audit to be undertaken; d) Recommend to Council the person or persons to be appointed as auditor; e) Develop and recommend to Council a written agreement for the appointment of the external auditor. The agreement is
to include:
the objectives of the audit;
the scope of the audit;
a plan of the audit;
details of the remuneration and expenses to be paid to the auditor; and
the method to be used by the local government to communicate with, and supply information to, the auditor; f) Meet with the auditor once in each year and provide a report to Council on the matters discussed and outcome of those
discussions; g) Liaise with the CEO to ensure that the local government does everything in its power to:
assist the auditor to conduct the audit and carry out his or her other duties under the Local Government Act 1995; and
ensure that audits are conducted successfully and expeditiously; h) Examine the reports of the auditor after receiving a report from the CEO on the matters to:
determine if any matters raised require action to be taken by the local government; and
ensure that appropriate action is taken in respect of those matters; i) Review the report prepared by the CEO on any actions taken in respect of any matters raised in the report of the auditor
and presenting the report to Council for adoption prior to the end of the next financial year or 6 months after the last report prepared by the auditor is received, whichever is the latest in time;
j) Review the scope of the audit plan and program and its effectiveness; k) Review the appropriateness of special internal audit assignments undertaken by internal audit at the request of Council
or CEO; l) Review the level of resources allocated to internal audit and the scope of its authority; m) Review reports of internal audits, monitor the implementation of recommendations made by the audit and review the
extent to which Council and management reacts to matters raised; n) Facilitate liaison between the internal and external auditor to promote compatibility, to the extent appropriate,
between their audit programs; o) Review the local government’s draft annual financial report, focusing on:
accounting policies and practices;
changes to accounting policies and practices;
the process used in making significant accounting estimates;
significant adjustments to the financial report (if any) arising from the audit process;
compliance with accounting standards and other reporting requirements; and
significant variances from prior years; p) Consider and recommend adoption of the annual financial report to Council. Review any significant changes that may
arise subsequent to any such recommendation but before the annual financial report is signed; q) Address issues brought to the attention of the committee, including responding to requests from Council for advice that
are within the parameters of the committee’s terms of reference; r) Seek information or obtain expert advice through the CEO on matters of concern within the scope of the committee’s
terms of reference following authorisation from the Council; s) Review the annual Compliance Audit Return and report to the council the results of that review, and t) Consider the CEO’s biennial reviews of the appropriateness and effectiveness of the local government’s systems and
procedures in regard to risk management, internal control and legislative compliance, required to be provided to the committee, and report to the council the results of those reviews.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
Audit Committee Minutes
Members of the public to note that recommendations made by this committee are not final and will be subject to adoption (or otherwise) at a future meeting of the Bunbury City Council.
1. Declaration of Opening
The Presiding Member declared the meeting open at 10 am.
2. Disclaimer Not applicable to this committee.
3. Announcements from the Presiding Member Cr Miguel welcomed the City’s Auditor Mr Michael Hillgrove,
4. Attendances
Committee Members:
Member Name Representing
Cr. Betty McCleary City of Bunbury
Cr. Michelle Steck City of Bunbury
Cr. Jaysen Miguel (Presiding Member) City of Bunbury
Mr Stephen Foster Community Member
Mr John Barratt Community Member
Support Staff/Visitors:
Name Title
Mr Greg Golinski Manager Governance
Mrs Vicki Gregg Team Leader Financial Accounting
Mrs Leanne French Senior Governance and Risk Officer
Mr Michael Hillgrove Auditor - Grant Thornton
4.1 Apologies Mr Andrew Brien, Chief Executive Officer Mr David Ransom, Manager Finance
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
4.2 Approved Leave of Absence
Nil
5. Declaration of Interest
IMPORTANT: Committee members to complete a “Disclosure of Interest” form for each item on the agenda in which they wish to disclose a financial/proximity/impartiality interest. They should give the form to the Presiding Member before the meeting commences. After the meeting, the form is to be forwarded to the Administration Services Section for inclusion in the Corporate Financial Disclosures Register.
Nil
6. Public Question Time
Not applicable to this committee.
7. Confirmation of Minutes
Committee Decision: Moved John Barratt Seconded Stephen Foster
The minutes of the Audit Committee Meeting held on 8 August 2016 are confirmed as a true and accurate record.
CARRIED 8. Presentations
Nil
9. Method of Dealing with Agenda Business
Items were dealt with in the order they appeared in the agenda.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
10. Reports 10.1 Auditors Report and Annual Financial Statements for the year ending 30 June 2016
Applicant/Proponent: Internal
Responsible Officer: David Ransom, Manager Finance
Executive: Andrew Brien, Chief Executive Officer
Attachments: Appendix 1: Auditor’s Report and Annual Financial Report
Summary The Auditor’s Report and Audited Annual Financial Report of the City of Bunbury for the financial year ending 30 June 2016 are attached at Appendix 1 for the information of the Audit Committee. Executive Recommendation That the Audit Committee recommends that Council accept the Auditor’s Report and the Audited Annual Financial Report of the City of Bunbury for the financial year ending 30 June 2016. Background The City’s auditors, Grant Thornton have audited the 2015/16 Annual Financial Report and have provided an Independent Auditor’s Report (refer Pages 80-81 in the attached Annual Financial Report) as required under the relevant provisions of the Local Government Act 1995 (the Act). The Auditor’s Report and Annual Financial Report are now presented to the Audit Committee for information. Furthermore, section 7.12A(2) of the Act requires a local government to meet with its Auditor at least once in every year. Mr Michael Hillgrove from Grant Thornton is the City’s appointed Auditor and will be in attendance to discuss with the Committee any queries arising from the 2015/16 Audit. Council Policy Compliance N/A Legislative Compliance Section 7.9(1) of the Act requires the auditor to submit a report to the local government by 31 December each year. Section 7.12A(2) of the Act requires a local government to meet with its Auditor at least once each year. Officer Comments Council's management and internal control systems are sound. In addition to being monitored internally on a daily and monthly basis they are also strengthened by an independent assessment each year on the
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
City’s financial management systems and external audit reporting. The independent assessment reviews Council's financial position, financial management practices and compliance with the requirements of the Local Government Act, the Local Government (Financial Management) Regulations, and Accounting Standards. There are five (5) primary financial statements:
- Statement of Comprehensive Income - Statement of Financial Position - Statement of Changes in Equity - Statement of Cash Flows - Rate Setting Statement
Statement of Comprehensive Income: The Statement of Comprehensive Income (shown on pages 4 to 6 of the Financial Report) shows the extent to which operating expenditure has exceeded operating revenue during the financial year (i.e. operating deficit). Key financial figures within the audited Annual Financial Report for the year ended 30 June 2016 include: 2016 2015 Operating Revenue $ 53,107,377 $ 52,869,639 Operating Expenses $ 54,259,375 $ 53,821,631 Operating Deficit $ 1,151,998 $ 951,992 Net Result $ 14,777,771 $ 4,867,534 For the year ending 30 June 2016, the operating deficit was $1.1M compared to $952K in 2014/15, an increase of $200K. Revenue increased by $238K and expenditure increased by $438K. Operating Revenue - The City received less Operating Grants in 2015/16 ($2.4M) mainly due to the advance payment of the 2015/16 General Purpose Grants from the Federal Government ($804K) in 2014/15 and also received a grant from the South West Development Commission ($1.0M) for the Bunbury Marine Facilities funding. However in 2015/16 the City raised more rates ($1.5M) and more revenue from Fees and Charges ($780K) which helped to offset the decrease in Operating Grants. Operating Expenditure - While Employee Costs were less than the previously year ($503K) due to vacancies in 2015/16 and Materials and Contract savings ($584K) reduced expenditure, this was offset by the increase in Depreciation on Non-Current Assets ($1.2M) in 2015/16. Net Result - When capital grants ($18.2M) including $12.5M of grants received for the Koombana Foreshore Redevelopment and the Loss on Revaluation of Civil Infrastructure ($1.5M) etc. are included, the Net Result was a surplus of $14.8M (compared to a surplus of $4.9M in 2014/15). The Statement also accounts for the revaluation of non-current assets during the year of $19.2M resulting in a Total Comprehensive Income for 2015/16 of $34.0M. Statement of Financial Position: The Statement of Financial Position (shown on page 7 of the Financial Report) shows the assets and liabilities which make up the community equity as at the 30 June 2016. Key financial figures within the audited Annual Financial Report for the year ended 30 June 2016 include:
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
2016 2015 Current Assets $ 41,732,499 $ 25,471,223 Current Liabilities $ 10,302,309 $ 9,500,592 Current Assets over Current Liabilities $ 31,430,190 $ 15,970,631 Non-Current Assets $ 556,611,662 $ 539,742,227 Non-Current Liabilities $ 14,490,165 $ 16,161,228 Total Equity $ 573,551,688 $ 539,551,630 Council’s current assets exceed current liabilities by $31.4M compared to $16.0M in 2014/15 mainly due to the increase in Restricted Cash i.e. Cash Backed Reserves and Unspent Grants. This increase together with an increase in the Revaluation Surplus of $19.2M (from the revaluation of non-current assets), increased the total community equity at 30 June 2016 by $34.0M to $573.5M. Statement of Changes in Equity: The Statement of Changes in Equity (shown on page 8 of the Financial Report) shows the extent to which the community equity has been increased by the net result of the year’s activities. For the year ending 30 June 2016, the Community Equity increased from $539.5M to $573.5M, an increase of $34.0M. Statement of Cash Flows: The Statement of Cash Flows (shown on page 9 of the Financial Report) shows the nature and amount of Council’s cash inflows and out flows from all activities. Council’s cash held at the end of the reporting period was $39.0M compared to $22.8M in 2014/15. Rate Setting Statement: The Rate Setting Statement (shown on pages 10 and 11 of the Financial Report) shows the amount of rates required to be raised to fund the City’s operations during 2015/16. In 2015/16 $33.9M in rates were raised, an increase of $1.5M or 4.6% on 2014/15 (i.e. a 3.5% rate increase plus a 1.1% increase in property growth).
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
Financial Information by Ratio: 2016 2015 2014 Current Ratio 1.111 1.418 1.214 Current Assets as a ratio of Current Liabilities. (Measure of short term liquidity, i.e. the ability of Council to meet its liabilities when they fall due. A ratio of greater than 1.0 indicates Council has more current assets than current liabilities. Target is > 1.0) Asset Sustainability Ratio 0.524 0.812 0.423 Capital renewal and replacement expenditure as a ratio of depreciation expense. (Measures the extent to which assets are being renewed/replaced compared to the amount consumed i.e. depreciation. A ratio of greater than 1.0 indicates that council is investing in asset renewal/replacement greater than current consumption) Debt Service Cover Ratio 3.287 4.167 2.852 Operating Surplus before Interest and Depreciation as a ratio of principal and interest expense for borrowings. (Measures Council’s ability to service debt out of its uncommitted or general purpose funds available for its operations. The Department of Local Government indicates that a Basic standard is achieved if ≥ 2.0. An Advanced standard is ≥ 5.0) Operating Surplus Ratio (0.066) (0.035) (0.122) Operating Revenue minus Operating Expenditure as a ratio of own source operating revenue. (A result of lower than zero indicates that the Council has an operating deficit. The Department of Local Government indicates that a Basic standard is achieved if between 0.4 and 0.6) Own Source Revenue Coverage Ratio 0.948 0.886 0.861 Own source operating revenue as a ratio of operating expense. (Measures Council’s ability to cover operating expenses from own source revenue. The higher the ratio, the more self-reliant the local government is. The Department of Local Government indicates that an Advanced standard is achieved if the ratio is greater than 0.9) Analysis of Financial and Budget Implications There are no financial or budget implications for Council to accept the Annual Financial Statements and Auditor’s Report. Community Consultation An abridged Annual Financial Report will be included in the City’s 2015/16 Annual Report.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
Outcome of Meeting Mr Michael Hillgrove provided the Committee with a general overview of the 15/16 audit, and thanked Mr Ransom and his team for their assistance. The Executive Recommendation was moved Stephen Foster and seconded Cr McCleary and was carried unanimously to become the Committee’s recommendation on this matter: That the Audit Committee recommends that Council accept the Auditor’s Report and the Audited Annual Financial Report of the City of Bunbury for the financial year ending 30 June 2016.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
10.2 2015/16 Audit Findings Report
Applicant/Proponent: Internal
Responsible Officer: David Ransom, Manager Finance
Executive: Andrew Brien, Chief Executive Officer
Attachments: Appendix 2: Audit Findings Report
Summary The purpose of this report is for the Audit Committee to receive the 2015/16 Audit Findings Report prepared by Council’s auditors Grant Thornton, which stems from the 2015/16 financial audit of the City of Bunbury. Mr Michael Hillgrove from Grant Thornton is the City’s appointed Auditor and will be in attendance to discuss with the Committee any queries arising from the 2015/16 Audit Findings Report. Executive Recommendation That the Audit Committee recommend that Council receive the 2015/16 Audit Findings Report as presented. Background The Audit Findings Report outlines any management issues identified by the Auditor as part of the 2015/16 financial audit of the City of Bunbury that were not material enough to qualify the overall audit, but relevant enough to be brought to the attention of the Audit Committee. Council Policy Compliance N/A Legislative Compliance The Audit Findings Report is provided by the City’s Auditor as part of the City’s annual audit report completed under section 7.9(1) of the Local Government Act 1995. Officer Comments The Audit Findings Report is presented at Appendix 2. The report is self-explanatory and no material misstatement or significant control deficiencies were identified by the City’s auditors. In the report the auditors have made the following comments:
We have not become aware of any material irregularities or illegal acts
We have not become aware of any material non-compliance with laws and regulations
We have been presented with all the necessary books and records and explanations requested of management
We have not detected any material deficiencies in the accounting policies disclosed
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
We have not detected any material deficiencies in management's assessment of the going concern assumption
We have had no material disagreements with management
National internal independence checks are performed annually
In the area of fraud risk (page 10 of appendix 2), it is stated that the audit procedures did not detect fraud, however also noted that there was an instance of fraud perpetrated throughout the period, albeit the auditors were satisfied that this incident had been addressed and no further pervasive incidences had occurred.
Analysis of Financial and Budget Implications There are no financial or budget implications arising from the recommendations contained within this report. Community Consultation N/A Outcome of Meeting The Executive Recommendation was moved Cr McCleary and seconded John Barratt and was carried unanimously to become the Committee’s recommendation on this matter: That the Audit Committee recommend that Council receive the 2015/16 Audit Findings Report as presented.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
10.3 Financial Management Systems and Procedures Review
Applicant/Proponent: Internal
Responsible Officer: David Ransom, Manager Finance
Executive: Andrew Brien, Chief Executive Officer
Attachments: Appendix 3: Financial Management Systems and Procedures Review Report
Summary The purpose of this report is for the Audit Committee to receive the Financial Management Systems and Procedures Review report, which is undertaken annually by the City’s auditors. Executive Recommendation That the Audit Committee recommend that Council receive the Financial Management Systems and Procedures Review report as presented, and note that no financial management control weakness were identified. Background During May 2016, the City’s auditors (Grant Thornton) undertook a financial management systems and procedures review in accordance with Regulation 5(1) of the Local Government (Financial Management) Regulations 1996. The resulting report has now been completed and is presented to the Audit Committee for their information. A copy of the report is at Appendix 3. Council Policy Compliance There are no Council policies relating to this report. Legislative Compliance Regulation 5(1) of the Local Government (Financial Management) Regulations 1996 outlines the CEO’s duties as to financial management. Officer Comments The areas that were reviewed as part of the financial management systems and procedures review included:
Purchases/Payments/Payables
Receipts/Receivables/Cash Management
Payroll
Rates
Other Revenue; and
Fixed Assets
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
The report as presented at Appendix 3 is self-explanatory, and indicates that no areas of concern or weakness were identified across any of the areas audited. Analysis of Financial and Budget Implications Nil Community Consultation N/A Councillor/Officer Consultation This report is presented for the information of the Audit Committee. Outcome of Meeting The Executive Recommendation was moved John Barratt and seconded Stephen Foster and was carried unanimously to become the Committee’s recommendation on this matter: That the Audit Committee recommend that Council receive the Financial Management Systems and Procedures Review report as presented, and note that no financial management control weakness were identified.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
10.4 Council Policy – Risk Management
Applicant/Proponent: Internal
Responsible Officer: Leanne French, Senior Governance and Risk Officer
Executive: Andrew Brien, Chief Executive Officer
Attachments: Appendix 4: Council Policy – Risk Management
Summary
The purpose of this report is for the Audit Committee to note the recent adoption of Council’s policy relating to risk management.
Executive Recommendation
That the Audit Committee notes the adoption by Council of Council Policy Risk Management as presented at Appendix 4.
Background
Council’s current policy relating to risk management was originally adopted by Council on 24 June 2014, following recommendation by the Audit Committee. It was last amended by Council on 12 July 2016 following review by the Policy Review and Development Committee. At the last meeting of the Audit Committee held 8 August 2016, it was requested by the Committee that an informal workshop be held between Committee Members and relevant Officers to discuss the ongoing development and implementation of the City’s risk management processes. This workshop was held on 29 August 2016. It was suggested at the time that the City’s recently revised Risk Management Policy (amended by the Policy Review and Development Committee and Council on 12 July 2016) be formally presented to the Audit Committee for endorsement. This report facilitates this request.
Council Policy Compliance
This report relates to a previously adopted Council Policy.
Legislative Compliance
This policy was developed in the context of Regulation 17 of the Local Government (Audit) Regulations 1996.
Officer Comments
As well as being good business practice, having a formal risk management policy in place is a crucial first step in addressing the requirements of Audit Regulation 17(1)(a).
Officers are also soon to finalise the City’s operational risk management framework and guidelines, which will be implemented across the day-to-day activities of the City, as discussed at the workshop on 29 August. The matrix that forms part of the adopted policy is an important component of the development and implementation of a broader framework across the organisation.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
Analysis of Financial and Budget Implications
There are no financial or budgetary implications arising from the recommendations of this report.
Community Consultation
Not applicable. Outcome of Meeting The Executive Recommendation was moved Cr McCleary and seconded John Barratt and was carried unanimously to become the Committee’s recommendation on this matter: That the Audit Committee notes the adoption by Council of Council Policy Risk Management as presented at Appendix 4.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
10.5 Audit Regulation 17 Review
Applicant/Proponent: Internal
Author: Leanne French, Senior Governance and Risk Officer
The purpose of this report is to provide the Audit Committee with the results of a biennial review regarding the appropriateness and effectiveness of the City’s systems and procedures in relation to risk management, internal controls and legislative compliance (Regulation 17).
Executive Recommendation
That the Audit Committee receive the information as presented.
Background
On 8 February 2013, amendments to the Local Government (Audit) Regulations 1996 extended the functions of local government Audit Committees. These functions (Regulation 17) require the CEO to review the appropriateness and effectiveness of the City’s systems and procedures in relation to risk management, internal control and legislative compliance every two calendar years, and report the results to the Audit Committee.
The initial report was required to be presented to the Audit Committee by 31 December 2014. The City’s compliance with Regulation 17 was achieved via a report presented to the Audit Committee on 30 October 2014. The Audit Committee continues to monitor the City’s internal control processes, legislative compliance and risk management on a periodic basis via a report at each meeting of the Committee.
The Local Government Operational Guidelines provide a comprehensive list of issues to be included in any review of risk management, internal control and legislative compliance, and these were used as a guide to systematically conduct the biennial review.
The information provided in the review is an ongoing assessment of the City’s current practices, outlining the appropriateness and effectiveness of those practices, and presented recommendations for improvement.
Council Policy Compliance
The City’s Risk Management process is guided by the Council Policy Risk Management. The Executive Management Team recently endorsed two corporate guidelines in relation to internal control and legislative compliance. The Audit Regulation 17 review reinforces the processes outlined in the three documents and details ongoing development and improvement in the areas of risk management, internal control and legislative compliance.
Legislative Compliance
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
This report relates to Regulation 17 of the Local Government (Audit) Regulations 1996, which reads as follows:
17. CEO to review certain systems and procedures
(1) The CEO is to review the appropriateness and effectiveness of a local government’s systems and
procedures in relation to – (a) risk management; and (b) internal control; and (c) legislative compliance.
(2) The review may relate to any or all of the matters referred to in subregulation (1)(a), (b) and (c),
but each of those matters is to be the subject of a review at least once every 2 calendar years. (3) The CEO is to report to the audit committee the results of that review.
Officer Comments
Regulation 17 requires biennial reporting. In additional to the biennial review officers have provided the Audit Committee with regular updates relating to progress achieved against any issues identified since the initial review in 2014.
Working undertaken to date has implemented a number of remedies for identified issues, and we will continue to build upon this work through a regular process of internal assessment.
Officers recently re-assessed the initial data collated and have provided a refreshed collation of data incorporating any new issues and recommendations identified, as well as updated progress on pre-existing recommendations. New updates are in red. Appendix 5 provides an updated version of the Audit Regulation 17 Findings.
In summary, 28 areas have been assessed to date, with 66 identified existing controls. The majority of areas audited have substantially effective systems and procedures in place. More specifically, 45 controls have been assessed as being substantially effective, with 11 controls identified as being partially effective and 3 controls largely ineffective. Appendix 5 outlines recommendations for improvements to increase all identified partially effective and largely ineffective controls to the level of substantially effective.
In late July 2016, the City was one of 12 public authorities who participated in an evaluation of arrangements for managing misconduct and notifying minor misconduct to the Public Sector Commission. In September the City has received draft evaluation advice from the commission and notes their suggested improvements.
In October 2016 the City underwent an Occupational Health and Safety audit conduct by LGIS. This audit evaluated the City’s OSH systems against Worksafe Plan assessment criteria. The City will be implementing a number of the recommendations as part of the continuous improvement process and has scheduled another review for 12 months’ time to assess the progress.
These timely evaluations and audits continue to build and strengthen the City’s controls, particularly in the areas of managing our risks and developing internal controls.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
The Audit Committee has previously requested that Officers highlight to Council those issues identified as being “largely ineffective”. These 3 areas (and 4 recommendations) are summarised in the table below, and will be included in a recurring progress report to the Committee. A full overview of all issues is contained within Appendix 5.
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for implementation/Review
Comments
1.0 The City’s risk management systems are effective, and consider material operating risks appropriately 1.1 Risk Management
Policy adopted 24 June
2014.
Largely ineffective Senior
Governance &
Risk Officer
Complete risk management framework
Implement risk management
framework and risk assessment within
business units
Completed 01/11/16
February 2017
01/11/16 - Nominated departments
currently undergoing risk assessment
prior to full implementation of
program. This is to streamline
processes and documentation.
Risk Management Training with staff to
be implemented in February 2017.
29/08/16 - Meeting with Audit
Committee to review Risk Management
Policy, Framework and guidelines.
20/06/16 - draft Framework and
Corporate Guidelines completed.
Finalisation of templates in process.
30/09/15 – A briefing paper was
endorsed by ELT.
12/07/16 - Amended Risk Management
Policy with new matrix approved and
adopted by Council Res 232/16.
27/04/16 - Draft Framework presented
to ELT. Following the finalisation of
draft templates - send all document to
Managers for feedback and proceed
with pilot program.
14/04/16 - Draft framework presented
to Managers. Request for feedback
prior to presentation to ELT on 27 April
2016.
11/11/15 - The Working group met and
discussed overview and draft
implantation plan. Risk tools are
currently being developed.
23/10/15 – A working group for Risk
Management was formed
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
4.0 Regular risk reports are provided to outline: * Key risks; * Status and effectiveness of the risk management systems; *Identified risks are monitored; * New risks are identified, mitigated and reported
4.1 Currently no regular risk
reports are provided.
Largely ineffective Manager
Governance/Senior
Governance & Risk
Officer
Risk Reports will be provided to the
Audit Committee
30/12/2016 01/11/16 - Risk Management process
currently being finalised. Training to
staff to be completed in February 2017.
20/07/16 - draft Framework and
Corporate Guidelines completed.
Finalisation of templates in process.
10.0 The management of fraud and misconduct is effective, with risks identified, analysed, evaluated, treated and reported
10.4 City Fraud Control Plan Largely ineffective Manager Finance
and Senior
Governance and
Risk Officer
Develop a City Fraud Control Plan in
accordance with the Risk
Management Framework
30/06/2016 01/11/16 Controls will be identified
and treatment plans implemented if
required, as part of City's management
of risk.
20/07/16 Waiting on the Risk
Framework, guidelines and templates
to be endorsed.
Revised timeframe in line with the
proposed implementation plan for risk
management programme.
Outcome of Meeting The Executive Recommendation was moved Stephen Foster and seconded Cr McCleary and was carried unanimously to become the Committee’s recommendation on this matter:
That the Audit Committee receive the information as presented.
11 November 2016 Minutes – Audit Committee ______________________________________________________________________________
11. Motions of Which Previous Notice has been given
Nil
12. Questions from Members 12.1 Response to Previous Questions from Members taken on Notice
Nil
12.2 Questions from Members Nil
13. Urgent Business Nil
14. Date of Next Meeting TBA
15. Close of Meeting The Presiding Member closed the meeting at 10.20am.
The City of Bunbury Community Access Committee exists to guide the Bunbury City Council towards attaining best practice on matters of access and inclusion. The Community Access Committee is to make recommendations to Council based on the following Terms of Reference:
1. To develop proposals and make recommendations to Council on matters of access andinclusion relating to City of Bunbury buildings, facilities, services and information.
2. To seek funding opportunities that improves access and inclusion within the City ofBunbury.
3. To provide advice and information to City of Bunbury Officers and Councillors on decisionsof best practice on matters of access and inclusion relating to Council buildings, facilities,services or information throughout Bunbury, and
4. To provide information to the private sector in relation to access and inclusion to assist indevelopment and redevelopment of buildings and facilities.
5. To monitor the implementation of the Disability Access and Inclusion Plan for City ofBunbury buildings, facilities, services and information.
9.1 Committee Member Resignation - Shelley Leech .......................................................................... 5
9.2 Update of actions from last meeting (see attached minutes) ....................................................... 6
9.3 Update from Community Development Team .............................................................................. 6
9.4 MARCIA – Launch Event Reflection and Future Direction ............................................................. 7
9.5 Access Friendly – Business Recognition ......................................................................................... 7
9.6 City of Mandurah’s Aspirations - Most Accessible and Inclusive Regional City in Australia – Focus on Inclusion/Employment .......................................................................................... 7
10. Applications for Leave of Absence ................................................................................................... 7
11. Questions from Members ............................................................................................................... 7
11.1 Response to Previous Questions from Members taken on Notice ................................................ 7
11.2 Questions from Members .............................................................................................................. 7
12. Urgent Business .............................................................................................................................. 7
13. Date of Next Meeting ..................................................................................................................... 7
14. Close of Meeting............................................................................................................................. 8
14 October 2016 Minutes – Community Access Committee ______________________________________________________________________________
Page 2
1. Declaration of Opening The Presiding Member declared the meeting open at 1.15pm.
2. Disclaimer Not applicable to this committee.
3. Announcements from the Presiding Member Nil
4. Attendances Committee Members:
Member Name Representing
Cr Brendan Kelly (Presiding Member) City of Bunbury
Carol Szabo Community Representative
Thomas Blair Community Representative
Kathryn Hewitt Short on Sight Support Group
Peter Sears Community Representative
Ex-officio Members (non-voting):
Member Name Representing
Support Staff:
Name Title
Deanna Sullivan Team Leader Community Development
Sharon Chapman Manager Community and Library Services
Guests:
Name Title
Michael Finn Enable Southwest
Mason Cox community member
Kathryn Rodgers community member
Rachel Wallis community member
Adam Johnson MARCIA PhD student
David Brightwell Team Leader Building Certification, City of Bunbury
Ann Jank Team Leader Development Assessment and Compliance, City of Bunbury
14 October 2016 Minutes – Community Access Committee ______________________________________________________________________________
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Gavin Harris Director Works and Services, City of Bunbury
Samantha Harnett Acting Facility Team Leader – South West Sports Centre, City of Bunbury
4.1 Apologies
Name Title
Councillor Wendy Giles City of Bunbury
Stephanie Addison-Brown Director Corporate and Community Services
Ryan Campbell Community Development Officer
Shelley Leech Community Representative
Rhonda Alman Community Representative
Jason Hall Disability Services Commission
4.2 Approved Leave of Absence
Member Name Representing
Aishath Shizleen Community Representative
5. Declaration of Interest
IMPORTANT: Committee members to complete a “Disclosure of Interest” form for each item on the agenda in which they wish to disclose a financial/proximity/impartiality interest. They should give the form to the Presiding Member before the meeting commences. After the meeting, the form is to be forwarded to the Administration Services Section for inclusion in the Corporate Financial Disclosures Register.
Nil
6. Confirmation of Minutes
It was requested to be noted by the Presiding Member that previous Community Access Committee Minutes dated 12 August 2016, Item 9.3 needed to include that John Kowal had provided an assurance that future development proposals should include provisions for ramps in accordance with regulations, standards and guidelines. This would ensure that other funding was not required to retro fit other planned works.
Committee Decision: Moved: Kathryn Hewitt Seconded: Thomas Blair
The minutes of the Community Access Committee Meeting held on 12 August 2016, are confirmed as a true and accurate record.
CARRIED: Unanimously
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7. Petitions, Presentations and Deputations 7.1 Petitions
Nil
7.2 Presentations 7.2.1 Bunbury Waterfront Project Presenter – Gavin Harris: Gavin provided an interesting overview of the project which included a detailed concept design. The redevelopment will improve and create social spaces along the foreshores while supporting the development of marine components. It will also create an accessible and connected waterfront for residents, visitors and tourists to enjoy. Some of these components include accessible ramps, accessible BBQ and picnic areas, new bridge with ramped access and amphitheatre. The following questions arose – a) would there be plenty of ACROD bays, Gavin confirmed there would be 5 and they would be similar to the ACROD bays in Centrepoint car park; b) will there be an upgrade to the car park as it is currently quite uneven, Gavin confirmed the car park will be resealed; c) will the BBQ and picnic areas be accessible, Gavin confirmed the BBQ and picnic areas will be accessible including accessible picnic tables; d) will the CAC be able to be more involved in the design of the Waterfront project, including the playground equipment, Gavin explained this would be very difficult due to the tight timelines the City has to deliver this project.
MOTION 7.2.1 The Community Access Committee encourages playground equipment in the Bunbury Waterfront Project to be designed and installed for universal access. MOVED - Kathryn Hewitt SECONDED - Carol Szabo CARRIED - unanimously
7.2.2 Australian Standards Relating to Disability Access and Inclusion Presenters – David Brightwell and Ann Jank: David provided a very interesting presentation on how decisions are made around Accessibility Standards and what Regulations and laws govern these decisions - which are the Disability Discrimination Act (DDA), complaints based; and the Building Code of Australia (BCA), which is compliance based. David explained how these are reviewed every 5 years and since 2010 the BCA complies with DDA. The DDA only applies to new works and not retrofits. David also explained what the Human Right Equal Opportunity Commission (HREOC) role was in relation to building access. Ann provided a brief overview of her role which is in the first stage of any planning applications that are submitted. 7.2.3 City of Bunbury Staff Induction video Presenter – Deanna Sullivan: A preview of the Employee Induction Video was presented to the Committee. This is based on the DAIP ‘Outcome 7 People with disability have the same opportunities as other people to access employment, volunteering and work experience opportunities’. Very positive feedback was received by everyone at the meeting. Mason Cox, who was part of the video, shared his experience, which he said was a very positive one and how he was surprised at its impact. There was also keen interest from representatives of different organisations to use the video. This will be followed up with the funding body and relevant organisations advised accordingly. 7.2.4 New Zealand Telephone Information Service
14 October 2016 Minutes – Community Access Committee ______________________________________________________________________________
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Presenter – Kathryn Hewitt: Due to the limited time allocated to all presentations and reports, this item was deferred to the next meeting.
7.3 Deputations Nil
8. Method of Dealing with Agenda Business
Items were dealt with in the order they appear in the agenda.
9. Reports 9.1 Committee Member Resignation - Shelley Leech
Applicant/Proponent: Internal
Responsible Officer: Sharon Chapman, Manager Community and Library Services
Executive: Stephanie Addison-Brown, Director Corporate & Community Services
Appendix: Nil
Summary The City of Bunbury received the resignation of Committee Member Shelley Leech on 29 September 2016. Ms Leech advised that she is unable to attend Committee meetings due to current levels of work commitments. Executive Recommendation That the Community Access Committee recommends Council: 1. Accepts the resignation of Ms Leech from the Committee; 2. Ms Leech is thanked in writing for her contribution by the Chief Executive Officer; and 3. The Chief Executive Officer advertises for a new Community Access Committee member.
Background Shelley Leech was re-elected at the October 2015 elections. Since this time Shelley has played an important role to the Committee, providing guidance to the Bunbury City Council on issues around access and inclusion for people with a disability in the Bunbury Region. Council Policy Compliance There is no Council policy compliance impacting upon this report. Legislative Compliance There is no legislative compliance impacting upon this report.
14 October 2016 Minutes – Community Access Committee ______________________________________________________________________________
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Officer Comments Shelley Leech has made a valuable contribution to the Committee during her time as a member. We thank her for her contribution and we wish her well in the future. Analysis of Financial and Budget Implications There are no financial or budgetary implications impacting from the recommendations of this report. Community Consultation Not applicable. Councillor/Officer Consultation
This report is to be presented to Community Access Committee for consideration. Outcome:
The Executive Recommendation was MOVED Cr Kelly and SECONDED Kathryn Hewitt, and was carried unanimously as follows: That Council: 1. Accepts the resignation of Ms Leech from the Committee; 2. Ms Leech is thanked in writing for her contribution by the Chief Executive Officer; and 3. The Chief Executive Officer advertises for a new Community Access Committee member.
CARRIED: unanimously 9.2 Update of actions from last meeting (see attached minutes)
9.2.1 Snap/Send/Solve Application Due to the limited time allocated to all presentations and reports, this item was not urgent and therefore deferred to next meeting. 9.2.2 Homelessness Shower Access Due to the limited time allocated to all presentations and reports, this item was not urgent and therefore deferred to next meeting.
9.3 Update from Community Development Team
9.3.1 Koombana Bay Changing Places Facility – Proposed Locking System Due to the limited time allocated to all presentations and reports, this item was not urgent and therefore deferred to next meeting.
9.3.2 South West Sports Centre - New Ablution Block Design Plans Presenter - Samantha Harnett: Community Access Committee members were each provided with a copy of 2 proposed options. Samantha gave an overview of the proposed accessible ablution block design and explained what considerations were made for accessibility and the differences
14 October 2016 Minutes – Community Access Committee ______________________________________________________________________________
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between the two options and asked for any comments or feedback. It was noted that Option 2 with the entrances to each change room away from each other would be preferable which was agreed by everyone. There was also some discussion about the issue of the placement of tactiles in the South West Sports Centre.
MOTION 9.3.2 Community Access Committee recommends an audit of tactile placements throughout South West Sports Centre. MOVED - Peter Sears SECONDED – Thomas Blair CARRIED - unanimously
9.4 MARCIA – Launch Event Reflection and Future Direction
Due to the limited time allocated to all presentations and reports, this item was not urgent and therefore deferred to next meeting.
9.5 Access Friendly – Business Recognition
Due to the limited time allocated to all presentations and reports, this item was not urgent and therefore deferred to next meeting.
9.6 City of Mandurah’s Aspirations - Most Accessible and Inclusive Regional City in Australia –
Focus on Inclusion/Employment Due to the limited time allocated to all presentations and reports, this item was not urgent and therefore deferred to next meeting.
9.7 Student Engagement, Education and Awareness of People with a Disability in Bunbury
Due to the limited time allocated to all presentations and reports, this item was not urgent and therefore deferred to next meeting.
10. Applications for Leave of Absence Nil
11. Questions from Members 11.1 Response to Previous Questions from Members taken on Notice
Nil
11.2 Questions from Members Nil
12. Urgent Business Nil
13. Date of Next Meeting Friday 2 December 2016; 1:00pm – 3:00pm; Ocean Room - City of Bunbury Administrative Building, 4 Stephen Street, Bunbury
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14. Close of Meeting The Presiding Member closed the meeting at 3pm.
ICTC Conference 2016
Report
One of the most informative activities of the conference was a guided tour of Launceston on the
afternoon before the presentations began. We were accompanied by a variety of Council Officers
who explained the processes and policies behind the development of the CBD Mall and newly
established ‘Dickie’s Walk’, creating a pedestrian precinct which was bustling with life. They are also
planning for a proposed City Square around significant buildings. The University of Tasmania campus
is being moved into the city (from the city outskirts) along with substantial accommodation to meet
the modern students’ needs. Tourist attractions such as Cataract Gorge and Penny Rose were also
featured. A free bus was available every day to transport both visitors and locals around the city on a
set circular route, something which Bunbury would do well to emulate, especially when cruise ships
arrive.
Day 1
Keynote speaker, Henriette Vamburg from Denmark (Europe), drew heavily on the work of Jan
Gehl. She showed many examples of how mobility and the value of place are essential to grow
communities. Cycling in Copenhagen is a way of life with children learning to ride in kindergarten
and 41% of people cycling to work. Car parks have been turned into town squares and property
values have risen. Helmets are not compulsory, and commuters ride old style bikes with no gears.
Bicycle paths are not shared with pedestrians, and the speed of riders in their work clothes is
relatively slow.
‘There is more to walking than walking’. Evidence shows that walking some way rather than parking
close to a destination improves social and economic outcomes for all.
Session 2: Main Street, Retail and Innovation
The main theme of these sessions was building areas for pedestrians and shoppers, not cars. There
were many examples of very successful transformations, but the message was to trial changes
before making them permanent, and communicate with the people involved from concept planning
to completion.
Session 3: Creative Cities
An interesting session on balancing movement and space (traffic and social exchange) suggested
that focussing on harmonising , not simply separating the two, was the crucial task.
Our own CEO gave a great presentation on Developing a Creative City to a packed house. It was very
well received, and I noted many people were keen to follow up with him for some time after it was
finished.
Session 4:
Plenary session with some of the key speakers answering questions.
Appendix DEL-1
Day 2
Session 5: Future Places, Engagement
I couldn’t believe that a future primary school had been designed with nowhere for children
to play – ‘they would be bussed to ovals for sport’. It was more encouraging to hear about
driverless vehicles which will be able to use our current roads much more efficiently without
entirely replacing those with drivers.
Parramatta has used our slogan, “Love where you live”, in a totally different way, utilising
behavioural economics to overcome the problems of illegal dumping, litter, graffiti and
unmown verges.
Session 6: Designing Liveable Communities
The presentations ranged from approaches to medium density housing and affordable
dwellings, to innovative ways to beautifying Blacktown’s major thoroughfares. It seems we
all have similar issues!
Session 7: Engagement: Youth, Elderly and Disadvantaged Groups
Ballarat has been consulting with children as young as five to create a more child and family
friendly city. Armidale has developed Community Hubs to support low socioeconomic
groups who are in danger of disengagement, truancy and crime. Creating a safe welcoming
space over which the local community has agency ensures meaningful engagement and
sustainable practices. Homeless people in Sydney are being catered for in premises which
are located amidst Darlinghurst’s vibrant restaurants, bars and cafes. It once looked very out
of place and ‘apologetic’, but a makeover aimed to empower the homeless community and
restore dignity. In Geelong, a series of free ‘Over 50s morning teas’ in open public spaces
with an extensive entertainment program has engaged the community and created links
between all age groups, resulting in a decrease of antisocial behaviour.
Conclusion
I found the conference very stimulating and I spoke with many interesting people. It
strengthened my belief that providing more parking in the inner city is not desirable.
Encouraging cycling and walking is good for health, social and economic outcomes.
There were many concurrent sessions which I could not attend although they all sounded
interesting. The conference will be held in Melbourne next year, so watch out for it.
I would encourage you to visit the conference website to view the presentations at
This report relates to the CEO Performance Appraisals Training Course held in Bunbury on Thursday
17th November. I would like to thank Council & WALGA for facilitating this training in my own home
town. It was funded by Royalties for Regions. The training course ran from 9:00am to 4:00pm and
was competently facilitated by Sean Fletcher.
Programme:
Session 1 – Assess Performance:
Key Performance Indicators (KPIs) are set & the performance is reviewed at least annually.
The CEO is the sole employee of the Council & therefore, it is the responsibility of theCouncil to review the performance of the CEO.
Elected Members do not become involved in performance reviews of other staff.
The employment of a CEO is governed by a written contract with a maximum term of 5years.
The expiry date is to be specified in the contract.
Performance criteria must be specified in the contract to enable the person’s performanceto be reviewed.
Appraisal members should have a copy of the contract.
Notification is required if the contract is to be put to the market.
The contract of employment will contain about 13 elements, including; term of employment,performance criteria, review of performance, remuneration, dispute resolution &termination etc.
Maintain an open dialogue – whilst the formal review is an annual event, Council mayauthorise interim sessions so that performance feedback can be given to the CEO. This cancatch undesirable behaviours which allows these to be corrected more easily.
Benefits of the review process – provides an opportunity to look at the performance of theCEO in the preceding 12 months but also allows both parties to agree on realistic &appropriate objectives for the next review period.
Appendix DEL-2
2
Training is required – Elected Members need a basic skill set to ensure they participate effectively in the process. Skills set required include these elements:
Ability to be fair & objective.
Able to take a corporate approach.
Good communication skills.
Preparation & evaluation skills.
Able to avoid bias.
Concentrate on outcomes.
Negotiation skills. Session 2 – Agree KPIs:
Key performance indicators provide a description of those matters that Council regard as a barometer of performance. They ensure the CEO will use best endeavours & place an emphasis on the priorities of Council.
Who is involved in the process? Council establishes & conducts the performance review procedures, not the CEO.
Prepare for the Appraisal:
Council establishes the KPIs (may be decided by the panel).
A review panel is selected to conduct the review & work with the CEO to establish KPIs for the forthcoming period.
A measurement tool – questionnaire forms which reflect the KPIs & the rating method.
Consultation – to obtain feedback from all Elected Members & the CEO (& others, where applicable).
Interview – the formal appraisal meeting.
Follow-up – post interview arrangements, such as report to Council, contractual matters.
Relevant groups & individuals – It is the Council at a corporate level that is accountable for the review of the CEO, therefore it is essential to decide firstly who will be responsible for leading the appraisal panel. The most likely & usual choice is the Mayor. The leader of the panel must make themselves responsible for all the administrative features of the review, not the CEO. The interview panel itself should be a smaller group of Elected Members. It is worthy of note that in LG, groups or panels meet with the CEO rather than one on one - as would be typical in a manager/employee relationship. For the review panel, select those Elected Members who are trained & experienced in undertaking the task. It is helpful for a cross-section of interests from the Council to be represented.
Involving all Elected Members – whilst not all Elected Members will be involved in the actual interview process, it is essential to gain input from all Elected Members. A briefing session, perhaps with a facilitator, is a good opportunity to discuss the performance appraisal.
Delegation – Council has the power to delegate the CEO appraisal process in its entirety but the outcomes, including recommendations, must be referred to Council for a final decision.
Considering additional assistance – if assistance from an outside facilitator is considered necessary, that assistance needs to be called in at the earliest possible opportunity.
360 degree appraisal – 360 degree appraisals are not easy to apply at LG level but a couple of elements can be used. Feedback from Community surveys & a CEO self-assessment.
3
Agreeing KPIs – KPIs can be set using the SMART method:
S = Specific
M = Measurable
A = Achievable
R = Resources
T = Timeliness
Tactical & strategic KPIs – often performance criteria for the CEO are expressed in 2 ways –
generic (tactical) management of the administration etc & strategic that relate to
achievement objectives. Tactical have a typical timeline of less than a year & strategic will
always be longer than one year.
Performance indicators relating to management skills – examples:
Production of public documents – Community Strategic Plan, Annual Report.
Standard & quality of advice from the CEO to Council.
Relationship & level of co-operation when liaising with the Mayor/President.
Public records management.
Audit Management Report.
Review of local laws & town planning schemes.
Oversight of procedures re public health, building licences etc.
Human Resource management including OH&S & equal employment opportunities
etc.
Assessing management competencies – examples:
Whether information about systems & procedures is available to staff.
How goals are set & monitored.
Timeliness in implementing Council decisions (resolutions).
How employees are encouraged, guided & developed.
What training processes are followed.
How technology is used.
What delegations are in place.
Level of staff commitment to the Community Strategic Plan.
Assessing leadership qualities – examples:
Ability to think strategically.
Ability to inspire action in other staff.
Good communication & listening skills.
Behave ethically.
4
Proactive change management.
Capable of making decisions appropriately.
Fosters good relationships.
Engenders respect.
Performance Standards – the employment contract of the CEO is to contain performance
criteria for reviewing the person’s performance. Members of the interview panel are
required to use the performance criteria in the contract, to form their views of whether the
CEO has performed to a satisfactory level. The CEO is contracted to use every reasonable
endeavour to measure up to & achieve the performance criteria.
Session 3 – Providing Feedback:
The aim of feedback:
Improving performance. Document any unsatisfactory performance so that
improvement of deterioration can be noted. Offer strategies, such as professional
development, to improve performance.
Acknowledging excellence in performance.
Improve communication, between the CEO & Elected Members, if required.
An aim of the review could be to motivate the CEO.
Effective feedback – will be objective & specific, constructive, take a corporate approach, be
problem solving & utilise communications skills.
Problem solving:
Show respect.
Actively listen.
Define the problem in strategy terms.
Ask the CEO to suggest options.
Agree on options that might be considered.
Effective communication – communication is an exchange of thoughts, ideas & information
which is clearly explained & clearly understood. The communication process has 4 main
components:
Someone sends a message.
The receiver is responsible for attending, listening & responding.
Creates feedback.
Assesses the feedback & makes a further response.
5
There are a number of ways to communicate:
Verbal – the actual words we use.
Vocal – the way we say the words.
Non-verbal – body language.
Use the W words – who, why, what, where & when.
Active listening – requires you to tune out of your own point of view, for a while, & tune into
the other person. What to do:
Adopt an open posture & focus on the other person.
Keep silent & let people talk without interruption.
Let them know you are listening to them.
Find out what makes them think the way they do.
Check out directly that you have heard correctly.
The process must be fair – the assessment must be conducted in a fair & reasonable
manner. Elected Members must not let their personal prejudices interfere with a considered
& objective judgement. Comments must be based on facts & be capable of substantiation.
The CEO must also be able to respond. Care should be taken to focus on the review period.
Confidentiality must be maintained & fairness also demands that a written record be kept of
the performance review & any comments the CEO makes in response.
Deciding what type of rating method to use – there are 3 different styles normally used for
rating performance:
Rating or scoring only.
Discussion/feedback session only.
A Combination of scoring, feedback & development.
Proforma used for feedback – each LG will discuss the topics that will be used in the
appraisal & the main discussion points with the CEO. After discussion & agreement, the
appraisal form can be produced by the administration or by an appointed facilitator.
Overcoming pitfalls during appraisal interviews:
Avoid showing bias.
Avoid attributional error.
Expectancy.
Avoid biased sampling.
Avoid similar to me effect.
6
Session 4 – Appraisal Interview Programme:
The setting & atmosphere:
Chairs grouped around one or more low tables are preferable.
No interruptions by telephones or staff.
If the interview cannot be done during daytime, start as early as possible, allow
adequate breaks & give yourselves adequate time.
Start by reminding yourselves what the appraisal is hoped to achieve.
Work through the forms you have designed to guide your discussion.
Don’t forget to give credit for achievements. Tackle areas for improvement
sensitively.
Be specific & constructive. Treat the whole matter professionally.
Concentrate on outputs, rather than inputs – inputs are the administrative & operational
processes & procedures, outcomes are the deliverables.
Other Expenses (2,183,457) (3,432,632) (2,009,036)
Depreciation on Non-Current Assets (12,780,213) (11,589,080) (11,577,322)
Loss on Disposal of Assets (762,501) - (826,711)
(55,021,876) (58,426,153) (54,648,342)
Net Result Excluding Rates (35,856,614) (36,531,311) (34,143,155)
Adjustments for Cash Budget Requirements:
Non-Cash Expenditure and Revenue
(Profit)/Loss of Asset Disposals 21 762,501 (3,519,216) 754,420
Depreciation and Amortisation on Assets 2(a) 12,780,213 11,589,080 11,577,322
Transfers Between Current and Non Current
Movement in Deferred Pensioner Rates (Non-Current) (23,039) - (4,283)
Movement in Deferred Sundry Debtors (58,898) (67,980) (9,375)
Movement in Self-Support Loans (325,452) - (1,088,786)
Movement in Employee Benefit Provisions (Non-Current) (46,426) 60,000 (26,634)
Movement in College Grove Joint Venture (South) - - 986,127
Movement in College Grove Joint Venture (North) (41,359) - (66,679)
Capital
Capital Revenue
Proceeds from Disposal of Assets 21 582,497 4,448,516 598,246Contributions for the Development of Assets 30 18,233,514 6,520,273 6,573,946
Proceeds from New Loans 22(b) 650,952 1,295,414 5,196,786Self-Supporting Loan Principal Income 167,034 163,698 69,422Interest on Capital Grants 15,390 13,533 -
12,441,434 12,438,400 19,649,387
This statement is to be read in conjunction with the accompanying notes.
Repayment of Loans 22(a) (2,216,687) (2,216,687) (1,831,840)
(15,344,388) (19,386,153) (16,718,314)
Financial Transfers
Movement in Unspent Loans 22(c) 1,132,767 1,132,767 (1,033,426)
Movement in Unspent Grants 2(c) (11,013,302) 3,425,382 (292,798)
Transfers to Reserves (Restricted Assets) 12 (15,763,205) (15,049,783) (9,150,072)
Transfers from Reserves (Restricted Assets) 12 6,529,193 6,860,433 6,533,238
Surplus(deficiency) before general rates (31,620,687) (33,047,411) (26,438,812)
Total Amount Raised From General Rates 23 33,942,115 33,904,742 32,436,743Net Current Assets as June 30 c/fwd - surplus (deficit) 24 2,321,428 857,331 5,997,937
FOR THE YEAR ENDED 30 JUNE 2016
CITY OF BUNBURY
RATE SETTING STATEMENT
Page 11
This statement is to be read in conjunction with the accompanying notes.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
Critical accounting estimates
The local government reporting entity
(b) Goods and Services Tax (GST)
(c) Cash and Cash Equivalents
In the process of reporting on the local government as a single unit, all transactions and balances between
those Funds (for example, loans and transfers between Funds) have been eliminated.
All monies held in the Trust Fund are excluded from the financial statements. A separate statement of those
monies appears at Note 20 to these financial statements.
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the ATO is included with receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows.
The financial report comprises general purpose financial statements which have been prepared in accordance
with Australian Accounting Standards (as they apply to local governments and not-for-profit entities),
Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting
Standards Board, the Local Government Act 1995 and accompanying regulations. Material accounting policies
which have been adopted in the preparation of this financial report are presented below and have been
consistently applied unless stated otherwise.
Except for cash flow and rate setting information, the report has been prepared on the accrual basis and is
based on historical costs, modified, where applicable, by the measurement at fair value of selected non-
current assets, financial assets and liabilities.
The preparation of a financial report in conformity with Australian Accounting Standards requires
management to make judgements, estimates and assumptions that effect the application of policies and
reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances; the results of which form the basis of making the
judgements about carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
All Funds through which the City controls resources to carry on its functions have been included in the financial
statements forming part of this financial report.
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Cash and cash equivalents include cash on hand, cash at bank, deposits available on demand with banks and
other short term highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value and bank overdrafts.
Bank overdrafts are reported as short term borrowings in current liabilities in the statement of financial
position.
Page 12
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(d) Trade and Other Receivables
(e) Inventories
General
Land held for sale
(f) Fixed Assets
Mandatory requirement to revalue non-current assets
Relevant disclosures, in accordance with the requirements of Australian Accounting Standards, have been
made in the financial report as necessary.
During the year ended 30 June 2013, the City commenced the process of adopting Fair Value in accordance
with the Regulations.
Whilst the amendments initially allowed for a phasing in of fair value in relation to fixed assets over three
years, as at 30 June 2015 all non-current assets were carried at Fair Value in accordance with the requirements.
Thereafter, each asset class must be revalued in accordance with the regulatory framework established and the
City revalues its asset classes in accordance with this mandatory timetable.
Inventories are measured at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale.
Land held for development and sale is valued at the lower of cost and net realisable value. Cost includes the
cost of acquisition, development, borrowing costs and holding costs until completion of development. Finance
costs and holding charges incurred after development is completed are expensed.
Gains and losses are recognised in profit or loss at the time of signing an unconditional contract of sale if
significant risks and rewards, and effective control over the land, are passed on to the buyer at this point.
Land held for sale is classified as current except where it is held as non-current based on the Council’s
intentions to release for sale.
Receivables expected to be collected within 12 months of the end of the reporting period are classified as
current assets. All other receivables are classified as non-current assets.
Collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be
uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective
evidence that they will not be collectible.
Each class of fixed assets within either property, plant and equipment or infrastructure, is carried at cost or fair
value as indicated less, where applicable, any accumulated depreciation and impairment losses.
Effective from 1 July 2012, the Local Government (Financial Management) Regulations were amended and the
measurement of non-current assets at Fair Value became mandatory.
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Trade and other receivables include amounts due from ratepayers for unpaid rates and service charges and
other amounts due from third parties for goods sold and services performed in the ordinary course of business.
Page 13
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets (Continued)
Land under control
Initial recognition and measurement between mandatory revaluation dates
Revaluation
Land under roads
Consequently, any land under roads acquired on or after 1 July 2008 is not included as an asset of the City.
Increases in the carrying amount arising on revaluation of assets are credited to a revaluation surplus in equity.
Decreases that offset previous increases of the same asset are recognised against revaluation surplus directly in
equity. All other decreases are recognised in profit or loss.
In Western Australia, all land under roads is Crown Land, the responsibility for managing which, is vested in the
local government.
Effective as at 1 July 2008, Council elected not to recognise any value for land under roads acquired on or
before 30 June 2008. This accords with the treatment available in Australian Accounting Standard AASB 1051
Land Under Roads and the fact Local Government (Financial Management) Regulation 16(a)(i) prohibits local
governments from recognising such land as an asset.
In respect of land under roads acquired on or after 1 July 2008, as detailed above, Local Government (Financial
Management) Regulation 16(a)(i) prohibits local governments from recognising such land as an asset.
Whilst such treatment is inconsistent with the requirements of AASB 1051, Local Government (Financial
Management) Regulation 4(2) provides, in the event of such an inconsistency, the Local Government (Financial
Management) Regulations prevail.
In accordance with Local Government (Financial Management) Regulation 16(a), the City was required to
include as an asset (by 30 June 2013), Crown Land operated by the local government as a golf course,
showground, racecourse or other sporting or recreational facility of State or Regional significance.
Upon initial recognition, these assets were recorded at cost in accordance with AASB 116. They were then classified as Land and revalued along with other land in accordance with the other policies detailed in this Note.
All assets are initially recognised at cost and subsequently revalued in accordance with the mandatory
measurement framework detailed above.
In relation to this initial measurement, cost is determined as the fair value of the assets given as consideration
plus costs incidental to the acquisition. For assets acquired at no cost or for nominal consideration, cost is
determined as fair value at the date of acquisition. The cost of non-current assets constructed by the City
includes the cost of all materials used in construction, direct labour on the project and an appropriate
proportion of variable and fixed overheads.
Individual assets acquired between initial recognition and the next revaluation of the asset class in accordance
with the mandatory measurement framework detailed above, are carried at cost less accumulated depreciation
as management believes this approximates fair value. They will be subject to subsequent revaluation at the
next anniversary date in accordance with the mandatory measurement framework detailed above.
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Page 14
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Fixed Assets (Continued)
Depreciation
(a) Restated proportionately with the change in the gross carrying amount of the asset so that the carrying
amount of the asset after revaluation equals its revalued amount; or
(b) Eliminated against the gross carrying amount of the asset and the net amount restated to the revalued
amount of the asset.
Major depreciation periods used for each class of depreciable asset are:
Buildings 10 to 80 years
Furniture and Fittings 7 to 13 years
Equipment 4 to 60 years
Plant and Vehicles 4 to 30 years
Arts and Culture 4 to 100 years
Road Formation Not Depreciated
Road Pavement 75 years
Road Seal
- aggregate seals 40 years
- asphalt surfaces 45 years
Signs 12 years
Kerb and Gutter 75 years
Stormwater 20 to 100 years
Open Space Assets 5 to 100 years
Carparks Pavement 75 years
Carparks Seal
- aggregate seals 40 years
- asphalt surfaces 45 years
Pathways 20 to 60 years
Capitalisation threshold
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the statement of comprehensive income in the period in which they arise.
Capitalisation thresholds are determined on an asset class basis as outlined in Council's asset management
plans.
The depreciable amount of all fixed assets including buildings but excluding freehold land, are depreciated on a
straight-line basis over the individual asset’s useful life from the time the asset is held ready for use. Leasehold
improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated
useful life of the improvements.
When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the
revaluation is treated in one of the following ways:
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable amount.
FOR THE YEAR ENDED 30 JUNE 2016
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
Page 15
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Fair Value of Assets and Liabilities
Fair value hierarchy
Level 1
Level 2
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable
market data. If all significant inputs required to measure fair value are observable, the asset or liability is
included in Level 2. If one or more significant inputs are not based on observable market data, the asset or
liability is included in Level 3.
To the extent possible, market information is extracted from either the principal market for the asset or liability
(i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of
such a market, the most advantageous market available to the entity at the end of the reporting period (i.e.
the market that maximises the receipts from the sale of the asset after taking into account transaction costs
and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to
use the asset in its highest and best use or to sell it to another market participant that would use the asset in its
highest and best use.
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises
fair value measurement into one of three possible levels based on the lowest level that an input that is
significant to the measurement can be categorised into as follows:
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date.
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly.
When performing a revaluation, the City uses a mix of both independent and management valuations using the
following as a guide:
Fair Value is the price that the City would receive to sell the asset or would have to pay to transfer a liability, in
an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at
the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used
to determine fair value. Adjustments to market values may be made having regard to the characteristics of the
specific asset or liability. The fair values of assets that are not traded in an active market are determined using
one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data.
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
CITY OF BUNBURY
Page 16
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Fair Value of Assets and Liabilities (Continued)
Valuation techniques
Market approach
Income approach
Cost approach
(h) Financial Instruments
Initial recognition and measurement
Classification and subsequent measurement
Amortised cost is calculated as:
(a) the amount in which the financial asset or financial liability is measured at initial recognition;
The City selects a valuation technique that is appropriate in the circumstances and for which sufficient data is
available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific
characteristics of the asset or liability being measured. The valuation techniques selected by the City are
consistent with one or more of the following valuation approaches:
Valuation techniques that use prices and other relevant information generated by market transactions for
identical or similar assets or liabilities.
Valuation techniques that convert estimated future cash flows or income and expenses into a single discounted
present value.
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
CITY OF BUNBURY
Valuation techniques that reflect the current replacement cost of an asset at its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the City gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered observable.
As detailed above, the mandatory measurement framework imposed by the Local Government (Financial
Management) Regulations requires, as a minimum, all assets carried at a revalued amount to be revalued in
accordance with the regulatory framework.
Financial assets and financial liabilities are recognised when the City becomes a party to the contractual
provisions to the instrument. For financial assets, this is equivalent to the date that the City commits itself to
either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified at fair value through profit or loss, in which case transaction costs are expensed to profit or loss immediately.
Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate
method, or at cost.
Page 17
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Financial Instruments (Continued)
Classification and subsequent measurement (continued)
(b) less principal repayments and any reduction for impairment; and
(c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially
recognised and the maturity amount calculated using the effective interest rate method.
(i) Financial assets at fair value through profit and loss
(ii) Loans and receivables
(iii) Held-to-maturity investments
(iv) Available-for-sale financial assets
Held-to-maturity investments are included in non-current assets, where they are expected to mature within 12
months after the end of the reporting period. All other investments are classified as non-current.
Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified
into other categories of financial assets due to their nature, or they are designated as such by management.
They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or
determinable payments.
They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses) recognised in
other comprehensive income (except for impairment losses). When the financial asset is derecognised, the
cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is
reclassified into profit or loss.
The effective interest method is used to allocate interest income or interest expense over the relevant period
and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees,
transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably
predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or
financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying
value with a consequential recognition of an income or expense in profit or loss.
Financial assets are classified at “fair value through profit or loss” when they are held for trading for the
purpose of short-term profit taking. Such assets are subsequently measured at fair value with changes in
carrying amount being included in profit or loss. Assets in this category are classified as current assets.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in
profit or loss.
Loans and receivables are included in current assets where they are expected to mature within 12 months
after the end of the reporting period.
Held-to-maturity investments are non-derivative financial assets with fixed maturities and fixed or
determinable payments that the City has the positive intention and ability to hold to maturity. They are
subsequently measured at amortised cost. Gains or losses are recognised in profit or loss.
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Page 18
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Financial Instruments (Continued)
(v) Financial liabilities
Impairment
Derecognition
(i) Impairment of Assets
Classification and subsequent measurement (continued)
Available-for-sale financial assets are included in current assets where they are expected to be sold within 12 months after the end of the reporting period. All other available-for-sale financial assets are classified as non-
current.
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised
cost. Gains or losses are recognised in profit or loss.
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
A financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as a result
of one or more events (a “loss event”) having occurred, which will have an impact on the estimated future cash
flows of the financial asset(s).
In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the
instrument is considered a loss event. Impairment losses are recognised in profit or loss immediately. Also, any
cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or
loss at this point.
In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or
a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal
payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears
or economic conditions that correlate with defaults.
For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is
used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible
measures of recovery, if management establishes that the carrying amount cannot be recovered by any means,
at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired
financial assets is reduced directly if no impairment amount was previously recognised in the allowance
account.
Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is
transferred to another party whereby the City no longer has any significant continual involvement in the risks
and benefits associated with the asset.
Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The
difference between the carrying amount of the financial liability extinguished or transferred to another party
and the fair value of the consideration paid, including the transfer of non-cash assets or liabilities assumed, is
recognised in profit or loss.
In accordance with Australian Accounting Standards the City's assets, other than inventories, are assessed at
each reporting date to determine whether there is any indication they may be impaired.
Where such an indication exists, an impairment test is carried out on the asset by comparing the recoverable
amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, to the asset's
carrying amount.
Page 19
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(i) Impairment of Assets (continued)
(j) Trade and Other Payables
(k) Employee Benefits
Short-term employee benefits
Other long-term employee benefits
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or
loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. AASB 116)
whereby any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that
other Standard.
For non-cash generating assets such as roads, drains, public buildings and the like, value in use is represented
by the depreciated replacement cost of the asset.
Trade and other payables represent liabilities for goods and services provided to the City prior to the end of the
financial year that are unpaid and arise when the City becomes obliged to make future payments in respect of
the purchase of these goods and services. The amounts are unsecured, are recognised as a current liability and
are normally paid within 30 days of recognition.
Provision is made for the City’s obligations for short-term employee benefits. Short-term employee benefits
are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after
the end of the annual reporting period in which the employees render the related service, including wages,
salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to
be paid when the obligation is settled.
The City’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as
a part of current trade and other payables in the statement of financial position. The City's obligations for
employees’ annual leave and long service leave entitlements are recognised as provisions in the statement of
financial position.
Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled
wholly within 12 months after the end of the annual reporting period in which the employees render the
related service. Other long-term employee benefits are measured at the present value of the expected future
payments to be made to employees. Expected future payments incorporate anticipated future wages and
salary levels, durations of service and employee departures and are discounted at rates determined by
reference to market yields at the end of the reporting period on government bonds that have maturity dates
that approximate the terms of the obligations. Any remeasurements for changes in assumptions of obligations
for other long-term employee benefits are recognised in profit or loss in the periods in which the changes
occur.
The City’s obligations for long-term employee benefits are presented as non-current provisions in its statement
of financial position, except where the City does not have an unconditional right to defer settlement for at least
12 months after the end of the reporting period, in which case the obligations are presented as current
provisions.
Page 20
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(l) Borrowing Costs
(m) Provisions
(n) Leases
(o) Investment in Associates
The carrying amount of the investment includes, where applicable, goodwill relating to the associate. Any
discount on acquisition, whereby the City’s share of the net fair value of the associate exceeds the cost of
investment, is recognised in profit or loss in the period in which the investment is acquired.
Profits and losses resulting from transactions between the City and the associate are eliminated to the extent
of the City’s interest in the associate.
When the City’s share of losses in an associate equals or exceeds its interest in the associate, the City
discontinues recognising its share of further losses unless it has incurred legal or constructive obligations or
made payments on behalf of the associate. When the associate subsequently makes profits, the City will
resume recognising its share of those profits once its share of the profits equals the share of losses not
recognised.
Finance leases are capitalised recording an asset and a liability at the lower amounts equal to the fair value of
the leased property or the present value of the minimum lease payments, including any guaranteed residual
values. Lease payments are allocated between the reduction of the lease liability and the lease interest
expense for the period.
Leased assets are depreciated on a straight line basis over the shorter of their estimated useful lives or the
lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are
charged as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight line basis over
the life of the lease term.
An associate is an entity over which the City has significant influence. Significant influence is the power to
participate in the financial operating policy decisions of that entity but is not control or joint control of those
policies. Investments in associates are accounted for in the financial statements by applying the equity method
of accounting, whereby the investment is initially recognised at cost and adjusted thereafter for the post-
acquisition change in the City’s share of net assets of the associate. In addition, the City's share of the profit or
loss of the associate is included in the City’s profit or loss.
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Borrowing costs are recognised as an expense when incurred except where they are directly attributable to the
acquisition, construction or production of a qualifying asset. Where this is the case, they are capitalised as part
of the cost of the particular asset until such time as the asset is substantially ready for its intended use or sale.
Provisions are recognised when the City has a present legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of
the reporting period.
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but
not legal ownership, are transferred to the City, are classified as finance leases.
Page 21
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(p) Interests in Joint Arrangements
(q) Rates, Grants, Donations and Other Contributions
(r) Superannuation
(s) Current and Non-Current Classification
(t) Rounding Off Figures
Joint arrangements represent the contractual sharing of control between parties in a business venture where
unanimous decisions about relevant activities are required.
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Joint venture operations represent arrangements whereby joint operators maintain direct interests in each
asset and exposure to each liability of the arrangement. The City’s interests in the assets, liabilities, revenue
and expenses of joint operations are included in the respective line items of the financial statements.
Information about the joint ventures is set out in Note 17.
Rates, grants, donations and other contributions are recognised as revenues when the local government
obtains control over the assets comprising the contributions.
Control over assets acquired from rates is obtained at the commencement of the rating period or, where
earlier, upon receipt of the rates.
Where contributions recognised as revenues during the reporting period were obtained on the condition that
they be expended in a particular manner or used over a particular period, and those conditions were
undischarged as at the reporting date, the nature of and amounts pertaining to those undischarged conditions
are disclosed in Note 2(c). That note also discloses the amount of contributions recognised as revenues in a
previous reporting period which were obtained in respect of the local government's operations for the current
reporting period.
The City contributes to a number of Superannuation Funds on behalf of employees. All funds to which the City
contributes are defined contribution plans.
In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the City’s operational cycle. In the case of liabilities where the City does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability is classified as current even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current even if not expected to be realised in the next 12 months except for land held for sale where it is held as non-current based on the City's intentions to release for sale.
All figures shown in this annual financial report, other than a rate in the dollar, are rounded to the nearest
dollar.
Separate joint venture entities providing joint venturers with an interest to net assets are classified as a joint
venture and accounted for using the equity method. Refer to note 1(o) for a description of the equity method
of accounting.
CITY OF BUNBURY
Page 22
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(u) Comparative Figures
(v) Budget Comparative Figures
Where required, comparative figures have been adjusted to conform with changes in presentation for the
current financial year.
When the City applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies
items in its financial statement, an additional (third) statement of financial position as at the beginning of the
preceding period in addition to the minimum comparative financial statements is presented.
Unless otherwise stated, the budget comparative figures shown in this annual financial report relate to the
current budget estimate for the relevant item of disclosure.
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Page 23
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w) New Accounting Standards and Interpretations for Application in Future Periods
The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting
periods, some of which are relevant to the City.
Management's assessment of the new and amended pronouncements that are relevant to the City, applicable to future reporting periods and which have not
yet been adopted are set out as follows:
Title Issued/Compiled Applicable (1)
Impact
(i) AASB 9 Financial Instruments December 2014 1 January 2018 Nil – The objective of this Standard is to improve and simplify the
(incorporating AASB 2014-7 and approach for classification and measurement of financial assets
AASB 2014-8) compared with the requirements of AASB 139. Given the nature of
the financial assets of the City, it is not anticipated the Standard will
have any material effect.
(ii) AASB 15 Revenue from Contracts with December 2014 1 January 2017 This Standard establishes principles for entities to apply to report
Customers useful information to users of financial statements about the nature,
amount, timing and uncertainty of revenue and cash flows arising
from a contract with a customer.
The effect of this Standard will depend upon the nature of future transactions the City has with those third parties it has dealings with. It may or may not be significant.
CITY OF BUNBURY
FOR THE YEAR ENDED 30 JUNE 2016
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
Page 24
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w) New Accounting Standards and Interpretations for Application in Future Periods (Continued)
Title Issued/Compiled Applicable (1)
Impact
(iii) AASB 16 Leases February 2016 1 January 2019 Under AASB 16 there is no longer a distinction between finance and
operating leases. Lessees will now bring to account a right-to-use asset
and lease liability onto their statement of financial position for all leases.
Effectively this means the vast majority of operating leases as defined
by the current AASB 117 Leases which currently do not impact the
statement of financial position will be required to be capitalised on the
statement of financial position once AASB 16 is adopted.
Currently, operating lease payments are expensed as incurred. This will
cease and will be replaced by both depreciation and interest charges.
Based on the current number of operating leases held by the City, the
impact is not expected to be significant.
(iv) AASB 2014-3 Amendments to Australian August 2014 1 January 2016 This Standard amends AASB 11: Joint Arrangements to require the
Accounting Standards - Accounting for acquirer of an interest (both initial and additional) in a joint operation
Acquisitions of Interests in Joint Operations in which the activity constitutes a business, as defined in AASB 3:
Business Combinations, to apply all of the principles on business
[AASB 1 & AASB 11] combinations accounting in AASB 3 and other Australian Accounting
Standards except for those principles that conflict with the guidance
in AASB 11; and disclose the information required by AASB 3 and
other Australian Accounting Standards for business combinations.
Since adoption of this Standard would impact only acquisitions of
interests in joint operations on or after 1 January 2016, management
believes it is impracticable at this stage to provide a reasonable
estimate of such impact on the City's financial statements.
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Page 25
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w) New Accounting Standards and Interpretations for Application in Future Periods (Continued)
Title Issued/Compiled Applicable (1)
Impact
(v) AASB 2014-4 Amendments to Australian August 2014 1 January 2016 This Standard amends AASB 116 and AASB 138 to establish the
Accounting Standards - Clarification of principle for the basis of depreciation and amortisation as being the
Acceptable Methods of Depreciation and expected pattern of consumption of the future economic benefits of
Amortisation an asset. It also clarifies the use of revenue-based methods to calculate
the depreciation of an asset is not appropriate nor is revenue
[AASB 116 & 138] generally an appropriate basis for measuring the consumption of the
economic benefits embodied in an intangible asset.
Given the City currently uses the expected pattern of consumption of
the future economic benefits of an asset as the basis of calculation
of depreciation, it is not expected to have a significant impact.
(vi) AASB 2014-5 Amendments to Australian December 2014 1 January 2017 Consequential changes to various Standards arising from the issuance
Accounting Standards arising from AASB 15 of AASB 15. It will require changes to reflect the impact of AASB 15.
(vii) AASB 2015-2 Amendments to Australian January 2015 1 January 2016 This Standard amends AASB 101 to provide clarification regarding
Accounting Standards – Disclosure the disclosure requirements in AASB 101. Specifically, the Standard
Initiative: Amendments to proposes narrow-focus amendments to address some of the concerns
AASB 101 expressed about existing presentation and disclosure requirements
and to ensure entities are able to use judgement when applying a
[AASB 7, 101, 134 & 1049] Standard in determining what information to disclose in their financial
statements.
This Standard also makes editorial and consequential amendments as
a result of amendments to the Standards listed in the title column.
It is not anticipated it will have any significant impact on disclosures as
they currently exist and any changes will relate to presentation.
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
CITY OF BUNBURY
FOR THE YEAR ENDED 30 JUNE 2016
Page 26
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w) New Accounting Standards and Interpretations for Application in Future Periods (Continued)
Title Issued/Compiled Applicable (1)
Impact
(viii) AASB 2015-6 Amendments to Australian March 2015 1 July 2016 The objective of this Standard is to extend the scope of AASB 124
Accounting Standards - Extending Related Related Party Disclosures to include not-for-profit sector entities.
Party Disclosures to Not-for-Profit Public
Sector Entities The Standard is expected to have a significant disclosure impact on
the financial report of the City as both Elected Members and Senior
[AASB 10, 124 & 1049] Management will be deemed to be Key Management Personnel and
resultant disclosures will be necessary.
Notes:(1)
Applicable to reporting periods commencing on or after the given date.
(x) Adoption of New and Revised Accounting Standards
During the current year, the City adopted all of the new and revised Australian Accounting Standards and Interpretations which were compiled, became
mandatory and which were applicable to its operations.
(i) AASB 2015-3 Amendments to Australian Accounting Standards arising from the withdrawal of AASB 1031 Materiality
(ii) AASB 2015-7 Amendments to Australian Accounting Standards - Fair Value Disclosures of Not-for-Profit Public Sector Entities
(1) - Grants/Contributions recognised as revenue in a previous reporting period which were not expended at the close of that previous reporting period.
(2) - New grants/contributions which were recognised as revenues during the reporting period and which has not yet been fully expended in the manner specified by the
contributor.
(3) - Grants/contributions which had been recognised as revenues in a previous reporting period or received in the Current reporting period and which were expended in the
current reporting period in the manner specified by the contributor.
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Page 34
Note 2016 2015
3. CASH AND CASH EQUIVALENTS $ $
Unrestricted 7,886,457 10,757,292
Restricted 31,135,655 12,021,109
39,022,112 22,778,401
Unspent Grants 14,604,060 3,590,758
Unspent Loans - 1,132,767
Cash Backed Reserves
ACDI Equipment Replacement Program 587,895 520,212
Airport 31,178 -
Asset Management and Renewal 4,447,972 950,000
Building Restoration and Maintenance 238,254 40,000
Bunbury Museum and Heritage Centre 62,438 62,318
Canal Management 444,146 405,760
CBD Contribution Parking - 21,899
Central Traffic Area (2) - 3,973
Central Traffic Area (3) - 65,028
City Arts Collection 38,984 36,107
City of Bunbury General Parking 2,083,926 1,398,629
College Grove Subdivision Amended Joint Venture 32,818 94,854
Depot Construction 1,585,182 158,182
Disaster Relief Fund - (City of Bunbury) 100,000 90,000
Dual Use Path Upgrade Contributions 59,746 59,746
Employee Entitlements and Insurance 764,562 -
Environmental 195,057 70,795
Hay Park Regional Athletics Track 300,665 230,665
Heritage Building Maintenance 27,500 -
Land Subdivision and Development 340,723 90,723
Local Planning Policy Framework 50,000 -
Marlston Hill TV Aerial Network - 2,434
Meat Inspection 73,983 9,900
Plant and Equipment 323,327 50,000
Public Art 135,333 135,333
Recreation Centre Development - 25,046
Refuse Collection and Waste Minimisation 3,544,134 1,943,704
Regional Museum 3,442 3,442
Road Upgrade Contributions 153,730 153,730
Town Planning Act Section 20A 456,222 387,579
Town Planning Scheme Land Acquisition and Compensation 135,000 135,000
Withers 315,379 152,525
31,135,655 12,021,109
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
The following restrictions have been imposed by regulations or other externally imposed requirements:
Page 35
4. INVESTMENTS
To manage cash flow requirements and maximise return, funds have been invested in:
Term deposits with the following financial institutions:
- ANZ Bank
- Bankwest
- Commonwealth Bank of Australia
- National Australia Bank
- Westpac Banking Corporation
On-call Cash deposit funds with:
- Commonwealth Bank of Australia
- WA Treasury Corporation
Invested Funds
2016 2015
Investment Type Term $ $
ANZ Term Deposit Short Term - 8,500,000
Bankwest Short Term 29,666 -
Commonwealth Bank of Australia Term Deposit Short Term - 3,000,000
National Australia Bank Term Deposit Short Term 22,447,979 6,028,727
Westpac Banking Corporation Short Term 7,885,883 -
Commonwealth Bank of Australia On-Call Fund Oncall 1,500,000 2,250,000
WA Treasury Corporation On-Call Fund Oncall 12,505,452 1,000,214
current condition (Level 2), residual values and remaining
useful life assessments (Level 3) inputs
Plant and Vehicles
- Independent valuation 2016 2
Sales Comparison (Market) approach
using recent observable market data for
similar assets
Independent
Registered ValuersJune 2016 Market Price per item
- Management valuation 2016 3Market approach and Cost approach using
depreciated replacement cost
Management
ValuationJune 2016
Purchase costs and current condition (Level 2), residual
values and remaining useful life assessments (Level 3)
inputs
Equipment 2
Sales Comparison (Market) approach
using recent observable market data for
similar assets
Management
ValuationJune 2014 Price per item
Furniture and Fittings 2Cost approach using depreciated
replacement cost
Management
ValuationJune 2015
Purchase costs and current condition (Level 2), residual
values and remaining useful life assessments (Level 3)
inputs
Arts and Culture
- Management valuation 2015 2Market approach using recent observable
market data for similar art work
Independent
Registered ValuersJune 2015 Price per item
- Management valuation 2015 3
Cost approach using depreciated
replacement cost for art and culture
assets excluding art collections and public
art
Management
ValuationJune 2015
Purchase costs and current condition (Level 2), residual
values and remaining useful life assessments (Level 3)
inputs
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were varied, they have
the potential to result in a significantly higher or lower fair value measurement.
During the period there were no changes in the valuation techniques used by the local government to determine the fair value of property, plant and equipment using either level 2 or level
Construction costs and current condition (Level 2), residual values
and remaining useful life assessments (Level 3) inputs
Paths 3Cost approach using depreciated
replacement cost
Management
ValuationJune 2016
Construction costs and current condition (Level 2), residual values
and remaining useful life assessments (Level 3) inputs
Stormwater 3Cost approach using depreciated
replacement cost
Management
ValuationJune 2016
Construction costs and current condition (Level 2), residual values
and remaining useful life assessments (Level 3) inputs
Open Space 3Cost approach using depreciated
replacement cost
Management
ValuationJune 2016
Construction costs and current condition (Level 2), residual values
and remaining useful life assessments (Level 3) inputs
Marine 3Cost approach using depreciated
replacement cost
Management
ValuationJune 2016
Construction costs and current condition (Level 2), residual values
and remaining useful life assessments (Level 3) inputs
Structures 3Cost approach using depreciated
replacement cost
Management
ValuationJune 2016
Construction costs and current condition (Level 2), residual values
and remaining useful life assessments (Level 3) inputs
Bridges 3Cost approach using depreciated
replacement cost
Management
ValuationJune 2016
Construction costs and current condition (Level 2), residual values
and remaining useful life assessments (Level 3) inputs
Other Infrastructure 3Cost approach using depreciated
replacement cost
Management
ValuationJune 2016
Construction costs and current condition (Level 2), residual values
and remaining useful life assessments (Level 3) inputs
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Level 3 inputs are based on assumptions with regards to future values and patterns of consumption utilising current information. If the basis of these assumptions were
varied, they have the potential to result in a significantly higher or lower fair value measurement.
During the period there were no changes in the valuation techniques used to determine the fair value of infrastructure using level 3 inputs.
Page 45
2016 2015
$ $
9. TRADE AND OTHER PAYABLES
Current
Sundry Creditors 2,233,822 1,875,165
Accrued Interest on Loans 77,518 87,230
Accrued Salaries and Wages 168,915 920,244
Deposits and Prepayments 505,534 494,862
Income Received in Advance 727,869 572,717
GST Payable 891,583 -
4,605,240 3,950,218
Non-Current
College Grove Subdivision Profit Share 16,034 57,393
16,034 57,393
10. LONG-TERM BORROWINGS
Current
Secured by Floating Charge Debentures 2,234,229 2,216,687
2,234,229 2,216,687
Non-Current
Secured by Floating Charge Debentures 14,046,263 15,629,540
14,046,263 15,629,540
Total Long-Term Borrowings 16,280,492 17,846,227
Additional detail on borrowings is provided in Note 22.
11. PROVISIONS
Current
Annual Leave 1,690,125 1,736,923
Long Service Leave 1,739,551 1,518,305
RDO 33,635 77,593
Purchased Leave (470) 865
3,462,840 3,333,686
Non-Current
Long Service Leave 427,869 474,295
Total Provisions 3,890,708 3,807,981
Opening Balance
as at Provision as at
01-Jul-15 Movements 30-Jun-16
$ $ $
Annual Leave 1,736,923 (46,798) 1,690,125
Long Service Leave 1,992,600 174,819 2,167,419
RDO 77,593 (43,959) 33,635
Purchased Leave 865 (1,336) (470)
3,807,981 82,726 3,890,708
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Page 46
2016 2016 2015
Actual Budget Actual
$ $ $
12. RESERVES - CASH BACKED
ACDI Equipment Replacement Program
Opening Balance 520,212 434,118 434,118
Amount Set Aside / Transfer to Reserve 92,427 100,300 91,255
Amount Used / Transfer from Reserve (24,744) (10,000) (5,161)
587,895 524,418 520,212
Airport
Opening Balance - - -
Amount Set Aside / Transfer to Reserve 57,496 217,786 -
Amount Used / Transfer from Reserve (26,318) (33,300) -
31,178 184,486 -
Asset Management and Renewal
Opening Balance 950,000 850,000 850,000
Amount Set Aside / Transfer to Reserve 3,660,244 3,327,773 100,000
Amount Used / Transfer from Reserve (162,272) (100,000) -
4,447,972 4,077,773 950,000
Building Restoration and Maintenance
Opening Balance 40,000 - -Amount Set Aside / Transfer to Reserve 250,000 250,000 40,000
Amount Used / Transfer from Reserve (51,746) (70,000) -
238,254 180,000 40,000
Bunbury Museum and Heritage Centre
Opening Balance 62,318 30,500 30,500
Amount Set Aside / Transfer to Reserve 20,000 - 31,818
Amount Used / Transfer from Reserve (19,880) (36,000) - 62,438 (5,500) 62,318
Canal Management
Opening Balance 405,760 353,801 353,800
Amount Set Aside / Transfer to Reserve 41,846 51,577 51,959
Amount Used / Transfer from Reserve (3,460) (4,000) -
444,146 401,378 405,759
Purpose: To receipt specific area rating from the Pelican Point Canal Development to provide for the ongoing
management and maintenance of the canal residential and commercial area
Purpose: To provide funding for the Museum
Purpose: For the purchase and upgrade of Council buildings
Purpose: To provide funding for future asset management and renewal programs and projects
Purpose: For the Purchase and upgrade of equipment used by ACDI
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Purpose: To receipt funds from airport leases for the future provision of asset management and expansion
projects at the airport
Page 47
2016 2016 2015
Actual Budget Actual
$ $ $
12. RESERVES - CASH BACKED (Continued)
CBD Contribution Parking
Opening Balance 21,899 21,899 21,899
Amount Set Aside / Transfer to Reserve - - -Amount Used / Transfer from Reserve (21,899) (21,899) -
- - 21,899
Central Traffic Area (2)
Opening Balance 3,973 3,973 3,973
Amount Set Aside / Transfer to Reserve - - -Amount Used / Transfer from Reserve (3,973) (3,973) -
- - 3,973
Central Traffic Area (3)
Opening Balance 65,028 65,028 65,028
Amount Set Aside / Transfer to Reserve - - -
Amount Used / Transfer from Reserve (65,028) (65,028) -
- - 65,028
City Arts Collection
Opening Balance 36,107 28,213 28,213
Amount Set Aside / Transfer to Reserve 2,877 - 7,894
Amount Used / Transfer from Reserve - - -
38,984 28,213 36,107
City of Bunbury General Parking
Opening Balance 1,398,629 683,055 683,054
Amount Set Aside / Transfer to Reserve 2,174,620 2,036,095 2,210,610
Amount Used / Transfer from Reserve (1,489,323) (1,558,307) (1,495,035)
2,083,927 1,160,843 1,398,629
FOR THE YEAR ENDED 30 JUNE 2016
Purpose: To fund Council's general parking motor vehicle parking requirements within the City of Bunbury
Purpose: For the Purchase and upgrade of Council Art Collections
Purpose: To receipt funds from Council's specified area rate on the Central Traffic Area for the future provision of
car parking, road improvements and traffic management measures to benefit the Central Traffic Area
Purpose: To receipt funds from Council's specified area rate on the Central Traffic Area for the future provision of
car parking, road improvements and traffic management measures to benefit the Central Traffic Area
Purpose: To receipt contributions from developers within the CBD other than from the specified area parking
reserve fund to provide motor vehicle parking in the CBD
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
Page 48
2016 2016 2015
Actual Budget Actual
$ $ $
12. RESERVES - CASH BACKED (Continued)
Opening Balance - 194,868 194,868
Amount Set Aside / Transfer to Reserve - - -
Amount Used / Transfer from Reserve - - (194,868)
- 194,868 -
College Grove Subdivision Amended Joint Venture
Opening Balance 94,854 - -
Amount Set Aside / Transfer to Reserve 1,721 1,229,374 202,184
Amount Used / Transfer from Reserve (63,757) (102,964) (107,330)
32,818 1,126,410 94,854
Depot Construction
Opening Balance 158,182 158,182 158,182
Amount Set Aside / Transfer to Reserve 1,427,000 692,000 -
Amount Used / Transfer from Reserve - - -
1,585,182 850,182 158,182
Disaster Relief Fund - (City of Bunbury)
Opening Balance 90,000 65,000 65,000
Amount Set Aside / Transfer to Reserve 30,000 30,000 25,000
Amount Used / Transfer from Reserve (20,000) (20,000) -
100,000 75,000 90,000
Dual Use Path Upgrade Contributions
Opening Balance 59,746 59,746 59,746
Amount Set Aside / Transfer to Reserve - - -
Amount Used / Transfer from Reserve - - -
59,746 59,746 59,746
Employee Entitlements and Insurance
Opening Balance - - -
Amount Set Aside / Transfer to Reserve 764,562 489,562 -
Amount Used / Transfer from Reserve - - -
764,562 489,562 -
Purpose: To receipt funds received from Council's associated land sales raised for the purpose of constructing a
new depot
Purpose: To provide funding for the development of land relating to the amended College Grove joint venture
College Grove Subdivision
Purpose: To fund the ongoing development of the College Grove residential subdivision
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Purpose: To provide future funds for employee related entitlements and insurance liabilities
Purpose: To receipt funds received from Council's subdivision conditions for the future provision of dual use paths
improvements and path management measures to benefit path infrastructure
Purpose: To provide relief of personal hardship and distress arising from natural disasters
Page 49
2016 2016 2015
Actual Budget Actual
$ $ $
12. RESERVES - CASH BACKED (Continued)
Environmental
Opening Balance 70,795 100,000 100,000
Amount Set Aside / Transfer to Reserve 148,772 139,205 -
Amount Used / Transfer from Reserve (24,510) (70,795) (29,205)
195,057 168,410 70,795
Hay Park Regional Athletics Track
Opening Balance 230,665 160,665 160,665
Amount Set Aside / Transfer to Reserve 70,000 70,000 70,000
Amount Used / Transfer from Reserve - - -
300,665 230,665 230,665
Heritage Building Maintenance
Opening Balance - - -
Amount Set Aside / Transfer to Reserve 27,500 27,500 -
Amount Used / Transfer from Reserve - - -
27,500 27,500 -
Land Subdivision and Development
Opening Balance 90,723 90,723 90,723
Amount Set Aside / Transfer to Reserve 250,000 - -Amount Used / Transfer from Reserve - (20,000) -
340,723 70,723 90,723
Local Planning Policy Framework
Purpose:
Opening Balance - - -
Amount Set Aside / Transfer to Reserve 50,000 50,000 -
Amount Used / Transfer from Reserve - - -
50,000 50,000 -
Marlston Hill Landscape (2)
Opening Balance - 13,252 13,252
Amount Set Aside / Transfer to Reserve - - -
Amount Used / Transfer from Reserve - - (13,252)
- 13,252 -
Purpose: To retain funds for the future replacement of the regional athletics track
Purpose: To receipt funds from specified are rate Environmental Services Levy for the future provision of
environmental management and associated projects
FOR THE YEAR ENDED 30 JUNE 2016
Purpose: Income received from the lease or rental of heritage buildings to be set aside from the maintenance of
heritage buildings
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
Purpose: Receipt of funding from specified area rate levied for the provision and maintenance of landscaping
within the Marlston Hill subdivision
Purpose: To provide funding for land subdivision development
Page 50
2016 2016 2015
Actual Budget Actual
$ $ $
12. RESERVES - CASH BACKED (Continued)
Marlston Hill TV Aerial Network
Opening Balance 2,434 3,914 3,914
Amount Set Aside / Transfer to Reserve (2,434) (2,434) -
Amount Used / Transfer from Reserve - - (1,480)
- 1,480 2,434
Meat Inspection
Opening Balance 9,900 14,198 14,198
Amount Set Aside / Transfer to Reserve 332,730 295,550 243,599
Amount Used / Transfer from Reserve (268,647) (231,032) (247,897)
73,983 78,716 9,900
Ocean Drive Underground Power
Opening Balance - 31,136 31,136
Amount Set Aside / Transfer to Reserve - - -
Amount Used / Transfer from Reserve - - (31,136)
- 31,136 -
Plant and Equipment
Opening Balance 50,000 - -Amount Set Aside / Transfer to Reserve 273,327 - 50,000
Amount Used / Transfer from Reserve - - -
323,327 - 50,000
Public Art
Opening Balance 135,333 - -
Amount Set Aside / Transfer to Reserve - - 135,333
Amount Used / Transfer from Reserve - - -
135,333 - 135,333
Purpose: To make funds available to enable the monitoring of annual meat inspection income and expenditure to
ensure as far as possible the service is carried out on a self balancing basis
Purpose: Receipt funding from specified area rate levied for the maintenance of TV Aerial Network within the
Marlston Hill subdivision
FOR THE YEAR ENDED 30 JUNE 2016
Purpose: To provide funding for the installation of artworks in public spaces
Purpose: To provide for the purchase of plant and equipment, including office furniture, office equipment,
computer hardware and software
Purpose: To receipt funds from specified area rate Provision for Underground Power for the provision of
underground power along Ocean Drive
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
Page 51
2016 2016 2015
Actual Budget Actual
$ $ $
12. RESERVES - CASH BACKED (Continued)
Recreation Centre Development
Opening Balance 25,046 25,046 25,046
Amount Set Aside / Transfer to Reserve - - -
Amount Used / Transfer from Reserve (25,046) (25,046) -
- - 25,046
Refuse Collection and Waste Minimisation
Opening Balance 1,943,704 206,371 206,371
Amount Set Aside / Transfer to Reserve 5,710,517 5,665,495 5,574,888
Amount Used / Transfer from Reserve (4,110,087) (4,031,023) (3,837,555)
3,544,134 1,840,843 1,943,704
Regional Museum
Opening Balance 3,442 3,442 3,442
Amount Set Aside / Transfer to Reserve - - -Amount Used / Transfer from Reserve - - -
3,442 3,442 3,442
Road Upgrade Contributions
Opening Balance 153,730 153,730 153,730
Amount Set Aside / Transfer to Reserve - - -Amount Used / Transfer from Reserve - - -
153,730 153,730 153,730
Town Planning Act Section 20A
Opening Balance 387,579 459,171 459,170
Amount Set Aside / Transfer to Reserve 80,000 80,000 -
Amount Used / Transfer from Reserve (11,357) (15,000) (71,591)
456,222 524,171 387,579
Purpose: To receipt income from the sale of Town Planning Act Section 20A Public Open Space Reserves to fund
other public open space developments in accordance with the Town Planning Act
Purpose: To receipt funds received from Council's subdivision conditions for the future provision of road
improvements and traffic management measures to benefit road infrastructure
Purpose: To fund Council's contribution toward the establishment of a regional museum
Purpose: To receipt any annual surplus from Council's waste collection/minimisation program to provide funding
for Council's sanitation program
Purpose: To receipt funds for the development of the South West Sports Centre
FOR THE YEAR ENDED 30 JUNE 2016
CITY OF BUNBURY
NOTES TO AND FORMING PART OF THE FINANCIAL REPORT
Page 52
2016 2016 2015
Actual Budget Actual
$ $ $
12. RESERVES - CASH BACKED (Continued)
Town Planning Scheme Land Acquisition and Compensation
Opening Balance 135,000 135,000 135,000
Amount Set Aside / Transfer to Reserve - - -Amount Used / Transfer from Reserve - - -
135,000 135,000 135,000
Townscape Improvements
Opening Balance - - -
Amount Set Aside / Transfer to Reserve - - 15,532
Amount Used / Transfer from Reserve - - (15,532)
- - -
Withers
Purpose: To provide funding for the implementation of the Withers Action Plan
Opening Balance 152,525 335,721 335,721
Amount Set Aside / Transfer to Reserve 300,000 300,000 300,000
Amount Used / Transfer from Reserve (137,146) (442,066) (483,196)
315,379 193,655 152,525
TOTAL RESERVES 16,531,596 12,870,102 7,297,584
Reserves Summary
Total Opening Balance 7,297,584 4,680,752 4,680,749
Total Amount Set Aside / Transfer to Reserve 15,763,205 15,049,783 9,150,072
Total Amount Used / Transfer from Reserve (6,529,193) (6,860,433) (6,533,238)
TOTAL RESERVES 16,531,596 12,870,102 7,297,584
All of the reserve accounts are supported by money held in financial institutions and match the amount shown as
restricted cash in Note 3 to this financial report.
Purpose: To receipt funds from specified area rate Townscape Improvement for the Stirling St Streetscape
Improvement Project
Purpose: For land acquisitions and compensation payable in respect to the implementation of Council's Town
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.
INDEPENDENT AUDITOR’S REPORT TO THE RATEPAYERS
OF THE CITY OF BUNBURY
Report on the Financial Report
We have audited the accompanying financial report of the City of Bunbury, which
comprises the statement of financial position as at 30 June 2016, and the statement of
comprehensive income, statements of changes in equity, and statements of cash flows for
the year ended 30 June 2016, a summary of significant accounting policies and other
explanatory notes, and the Chief Executive Officer’s statement.
Council responsibility for the financial report
The Council of the City of Bunbury is responsible for the preparation and fair presentation
of the financial report in accordance with Australian Accounting Standards (including the
Australian Accounting Interpretations) and the Local Government Act 1995 Part 6. This
responsibility includes establishing and maintaining internal control relevant to the
preparation and fair presentation of the financial report that is free from material
misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards. These Auditing
Standards require that we comply with relevant ethical requirements relating to audit
engagements and plan and perform the audit to obtain reasonable assurance whether the
financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial report in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the Council, as well as
evaluating the overall presentation of the financial report.
Page 80
We performed the procedures to assess whether in all material respects the financial report
presents fairly, in accordance with the Local Government Act 1995 Part 6 and Australian
Accounting Standards (including the Australian Accounting Interpretations), a view which is
consistent with our understanding of the City of Bunbury’s financial position and of their
performance.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Independence
In conducting our audit, we followed applicable independence requirements of Australian
professional ethical pronouncements.
Auditor’s opinion on the financial report
In our opinion, the financial report of the City of Bunbury:
(i) presents fairly of the City of Bunbury’s financial position as at 30 June 2016 and of its performance for the financial year ended 30 June 2016;
(ii) complies with Australian Accounting Standards (including the Australian Accounting Interpretations); and
(iii) are prepared in accordance with the requirements of the Local Government Act 1995 Part 6 (as amended) and Regulations under that Act.
Statutory Compliance
I did not, during the course of my audit, become aware of any instance where the Council
did not comply with the requirements of the Local Government Act 1995 and Local
Government (Financial Management) Regulations 1996 as they apply to financial
statements.
GRANT THORNTON AUDIT PTY LTD Chartered Accountants
M J Hillgrove Partner – Audit & Assurance
Perth, 26 October 2016
Page 81
RATIO INFORMATION
2016 2015 2014
Asset Consumption Ratio 0.620 0.590 0.585
Asset Renewal Funding Ratio 0.748 0.731 0.634
The above ratios are calculated as follows:
Asset Consumption Ratio
Asset Renewal Funding Ratio NPV of planning capital renewal over 10 years
NPV of required capital expenditure over 10 years
The following information relates to those ratios which only require attestation and do not form part of the
audited financial report. They have been checked and are supported by verifiable information.
To the Audit Committee for the year ended 30 June 2016
Appendix RAC-2
The Audit Committee
City of Bunbury
4 Stephen Street
Bunbury WA 6230
11 November 2016
Dear Sirs/Madams,
REPORT TO THE AUDIT COMMITTEE FOR THE YEAR ENDED 30 JUNE 2016
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
'Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the
member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another's acts or
omissions. In the Australian context only, the use of the term 'Grant Thornton' may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.
Please find attached our Report to the Audit Committee for the year ended 30 June 2016.
We have completed our audit work and have signed an unqualified audit report.
We take this opportunity to extend our appreciation to the finance team for their assistance and cooperation
during the course of the audit.
This report has been prepared for the Audit Committee and Management of City of Bunbury. It should not
be quoted or referred to, in whole or in part, without our prior written consent. No warranty is given to, and
no liability will be accepted from, any party other than City of Bunbury. This report should be read in
conjunction with our audit engagement letter and any other formal correspondence addressed to the Audit
Committee regarding this year's audit.
We strive for a high level of client satisfaction, and our business is built around the relationships we maintain
with our clients. We want to hear feedback from our clients, both positive and negative, to ensure the
services we provide exceed expectations.
If you receive our Client Voice Engagement Survey, we would greatly appreciate if you would please take the
time to provide your feedback.
We trust that you find this report informative and we appreciate the opportunity to be of service to you. If
you have any queries or wish to discuss any issues further, please do not hesitate to contact either Graeme
Infrastructure Fixed Asset 307,146 300,028 Yes Yes Yes No
Changes on revaluation Other Comprehensive
Income 19,222 109,605 Yes Yes Yes No
Depreciation Expense 12,780 11,577 Yes Yes Yes No
7
Key areas of audit focus
Key audit matter
The recording of the employee entitlement provision requires rigorous tracking, a reliance
on payroll systems and also includes the application of management's judgements and
estimates. Management applies wage inflation rates and discount factors for those
entitlements that are expected to be realised beyond one year from the balance date. On-
costs, such as superannuation, are also factored into the computations.
Employee costs are the most significant costs of the Council. Thus, there is risk that the
costs may not be accounted for appropriately in the period and that fictitious or
fraudulent activity is occurring in the payment of employees.
How our audit addressed the key audit matter
• We performed a review of payroll expenditures recorded in the period, using
disaggregated payroll information by department and by month. We analysed the data
against both budgeted figures and prior period comparatives. Any significant
variances were discussed with management and corroborated through the review of
source documents, such as employee contracts, termination letters or letters of
resignation.
• The annual leave and long service leave schedules were reviewed to ensure that
management was appropriately and reasonably applying wage inflation rates, discount
factors, and on-costs.
• We tested the annual leave and long service leave schedules by ensuring each schedule
contained all entitled employees. This was performed by using our audit software to
match employees included on the last pay run in the period to the schedules. Any
unmatched employees were reviewed with management and resolved. Typically, an
employee did not appear on the annual leave schedule because they were not entitled
given their casual status.
How our audit addressed the key audit matter (continued)
• On a sample basis, we selected employee data from the annual leave and long service leave
schedule, comparing all inputs to source documents. An example of this is employee leave
taken in the period. This data was traced to evidence of leave approval by management.
• The Employee Masterfile was reviewed for any potentially fictitious employees set-up in the
system. Our audit software has the capability to detect duplicate bank accounts, duplicate
employee addresses and invalid TFN numbers in the system.
Conclusions
Per the substantives procedures performed, no material misstatements of employee
entitlements and costs were identified.
Control deficiencies:
Prior year: no material deficiencies noted.
Current year: no material deficiencies noted.
Account description Type 2016
$000
2015
$000
Risk Key audit matter Management
judgement
ASIC focus area
Employee Costs Expenditure 22,491 22,994 Yes Yes No No
Employee Entitlement Provisions Liability 3,892 3,808 Yes Yes Yes No
8
Key areas of audit focus
Key audit matter
The Council expends significant amounts on it operating activities and derives large trade
payable and accrual balances. There is a risk that the accruals and trade payable balances
owing as at 30 June 2016 are understated due to the timing of invoices received from
suppliers and the nature of the estimates required for accruals.
How our audit addressed the key audit matter
• We obtained the creditors (trade payables) sub ledger and used our audit software to
search for debit balances or duplicate invoices within the sub ledger.
• We reviewed the Vendor Masterfile to identify employees that were paid through
Accounts Payable as well as reviewing for duplicate or missing bank accounts and
addresses. Where exceptions were noted, we obtained explanations from management
and corroborated those explanations.
• We reviewed the calculations of prepayments and accruals and ensured they were
reasonably by agreeing to supporting documentation.
• We performed an analytical review of operating expenses by comparing general ledger
account balances to prior year and budgets. Where significant variations were
identified, we obtained explanations from management and corroborated those
explanations.
How our audit addressed the key audit matter (continued)
• In order to search for possible unrecorded misstatements, our audit procedures included a
review of disbursements incurred by the Council post 30 June 2016. For significant
disbursements, we ensured that the related payable was captured in the correct period.
Conclusions
The substantive procedures did not uncover any material misstatement of expenses,
prepayments or accruals.
Control deficiencies:
Prior year: no material deficiencies noted.
Current year: no material deficiencies noted.
Account description Type 2016
$000
2015
$000
Risk Key audit matter Management
judgement
ASIC focus area
Operating Expenses Expenditure 18,987 19,250 Yes Yes No No
Trade and Other Payables Liability 4,605 3,950 Yes Yes Yes No
9
Current year control deficiencies
We note our performance of our Financial Management Systems and Procedures Review, which resulted in no noted exceptions in our audit reports released on the 26th of October.
Consistent with this, in performance of our financial statement audit, we did not identify any weaknesses in internal controls that should be communicated to the Audit Committee.
10
Scope of audit services regarding fraud
In accordance with Auditing Standard ASA 240, our required objectives with regards to
fraud are:
• to identify and assess the risks of material misstatement of the financial report due
to fraud;
• to obtain sufficient appropriate audit evidence regarding the assessed risks of material
misstatement due to fraud, through designing and implementing appropriate
responses; and
• to respond appropriately to fraud or suspected fraud identified during the audit.
Responsibility of Council and management
The Council and management are required to consider the risk of fraud within the
company, and are responsible for maintaining a system of internal control to prevent, or
detect material misstatements to the financial statements arising from instances of fraud.
Detailed fraud detection services?
Grant Thornton’s Forensic Consulting division specialise in providing fraud detection
services, and can efficiently perform this value-add service. This testing is designed to
detect fraud of values far lower than audit materiality and further to assess controls,
policies and procedures specifically to address the prevention of fraud at the Council.
We attach in an Appendix details to the services and personnel pertaining to Grant
Thornton Forensic Consulting and encourage the Council to contact Courtney Gibson
(Partner) for any further information.
What have we done in our audit to address the risk of fraud?
• Considered conditions present that increase the risk of fraud.
• Conducted planning discussions with management regarding the risk or existence of
fraud, policies and procedures in place to prevent and detect fraud.
• Planned the nature and extent of our audit tests having regard to the risk of fraud;
• Reviewed accounting estimates for management bias.
• Evaluated the business rationale for unusual transactions.
• Maintained professional scepticism throughout the audit.
• Reviewed the appropriateness of journal entries and year-end accounting adjustments;
• Evaluated if any identified audit misstatements are indicative of fraud.
• Incorporated unpredictable audit procedures into our audit plan and testing.
Fraud risk
Conclusion
Our audit procedures did not detect fraud. We note that there was an
instance of fraud perpetrated throughout the period, but we were
satisfied that this incident had been addressed and no further
pervasive incidences occurred.
11
In accordance with Auditing Standards, we are required to communicate a number of matters with those charged with governance which is covered by our audit planning report, within
this audit findings report, and in the table below.
Matters for Grant Thornton
to consider Description* Exceptions
Irregularities and illegal
acts
We have not become aware of any material
irregularities or illegal acts. No
Non-compliance with laws
and regulations
We have not become aware of any material
non-compliance with laws and regulations. No
Access to books and
records, and conduct of
audit
We have been presented with all the necessary
books and records and explanations requested
of management.
No
Appropriateness of
accounting policies
We have not detected any material deficiencies
in the accounting policies disclosed. No
Matters for Grant Thornton
to consider Description* Exceptions
Material uncertainties and
going concern
We have not detected any material deficiencies
in management's assessment of the going
concern assumption.
No
Disagreements with
management
We have had no material disagreements with
management. No
Independence of auditor National internal independence checks are
performed annually. No
Expected modifications /
exceptions to the audit
report
No exceptions. No
* Reference to “material” implies the exception would cause the financial report to be materially misstated.
Communication of audit matters with those charged with governance
12
Contained within Note 1 of the financial statements are new accounting standards that may
impact on the company in future reporting periods.
Below is an update on the status of accounting standards which are proposed to be subject
to major changes:
Standard Applicable from
annual periods
AASB 15 Revenue from
Contracts with Customers
Commencing
1 January 2018
AASB 9 Financial
Instruments (2014)
Commencing
1 January 2018
AASB 16 Leases Commencing
1 January 2019
Technical Accounting (TA) Alerts and other technical resources
We understand the task of keeping up with changes can be daunting, particularly given the
length of some of the new standards; to assist you with this we publish TA Alerts on our
website: www.grantthornton.com.au.
TA Alerts also cover some contentious/difficult accounting concepts which the technical
teams of both Grant Thornton International and Grant Thornton Australia have received a
number of queries requiring guidance or clarification.
In addition, there are a range of other IFRS/technical resources available on our website,
including:
• Impairment of Assets - A guide to applying IAS 36 in practice
• Under control? A Practical guide to applying IFRS 10 consolidated Financial
Statements
• Navigating the accounting for business combinations: Applying IFRS 3 in practice
• Deferred tax: A Chief Financial Officer's guide to avoiding the pitfalls
• AASB 107: Statement of Cash Flows – A guide to avoiding common pitfalls and
application issues
• AASB 132: Financial Instruments Presentation – Liability or equity?
• Intangible Assets in a Business Combination – Identifying and Valuing Intangibles
under IFRS/AASB 3: Business Combinations
• Example financial statements
Grant Thornton also has dedicated technical resources/National Audit Support division
which can either be contacted via your audit contact or directly on
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26 October 2016
Mr Andrew Brien Chief Executive Officer City of Bunbury PO BOX 21 BUNBURY WA 6231
Dear Sir,
FINANCIAL MANAGEMENT SYSTEMS AND PROCEDURES REVIEW
We have completed our financial management systems review of the City of Bunbury (“The City”) in accordance with the requirement of Regulation 5(1) of the Local Government (Financial Management) Regulations 1996 and are pleased to submit our report to you.
Australian Auditing Standards require us to obtain an understanding of the internal control structure and accounting systems applicable to financial reporting at the City of Bunbury as part of our audit process.
During May 2016, we carried out audit procedures necessary for us to comply with the requirements of the auditing standards in respect to audit planning, risk assessment, assessment of fraud and assessment of the control environment.
During our review of certain areas, sample testing was conducted to determine whether the processes we had documented as being in place were supported by the selection of a random sample. We have considered the effectiveness of management’s internal controls over financial reporting, however our review is not designed to provide assurance on internal controls.
There were no areas where we were unable to perform procedures which would enable us to comply with Australian Auditing Standards.
The areas that were reviewed included:
Purchases/Payments/Payables
Receipts/Receivables/Cash Management
Payroll
Rates
Other Revenue
Fixed Assets
Appendix RAC-3
Grant Thornton Australia Limited ABN 41 127 556 389 Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia. Liability limited by a scheme approved under Professional Standards Legislation.
2
Background The City utilises the AUTHORITY system to process its accounts. This system has been in operation for a number of years. We report as to our work done and our findings as follows. Purchasing / Payments/Payables Review Objective and Scope The primary objectives of the review were:
To ensure proper processes were followed with regards to the Purchasing Policy.
To ensure payments have made in accordance with the Local Government (Financial Management) Regulations 1996.
Review Approach We documented the Purchasing Cycle and reviewed a sample of 25 tenders, purchase orders, invoices and related payments from July 2015 to April 2016 to determine whether purchases were authorised, supported and then correctly allocated to the general ledger. Our review of the controls over payments and accounts payable did not identify any significant control weaknesses, nor were any exceptions noted in performance of our sample based testing. In addition to the above, our review examined the set-up of vendors in the AUTHORITY subsystem to determine whether the appropriate processes were followed to authorise and establish vendors as creditors. This review was performed to ensure a control environment is established to protect from fictitious vendor payments. We selected 10 new vendors set-up in the creditor subsystem and noted no exceptions. In all cases, vendors were appropriately approved. Security access rights in the subsystem were shown to be adequately segregated to protect from unauthorised access. Receipts/Receivables/Cash Management Review Objective and Scope The primary objectives of the review were:
To review processes in place are followed with regards to the collection and control of cash and recording of financial information.
Review Approach We documented the Receipts Cycle, which includes Accounts Receivable and Bank reconciliations for the City to determine whether any matter has come to our attention which causes us to believe appropriate procedures are not in place regarding the Receipt of Income. In addition, testing of receipts was performed.
Grant Thornton Australia Limited ABN 41 127 556 389 Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia. Liability limited by a scheme approved under Professional Standards Legislation.
3
In our review of the performance of Accounts Receivable and Bank reconciliations, we noted the timely performance of each reconciliation (performed at least monthly) and evidence of appropriate review by upper management. With respect to the recording of receipting, in our sample of a random 25 receipts, we noted appropriate documentation, including ticking and marking, to demonstrate adequate controls in place in the processing of receipts against the relevant debtor balances raised in the subsystem. Based on our review and testing of the Receipts Cycle, we have not identified any significant weaknesses in these systems and procedures. Payroll Review Objective and Scope The primary objectives of the review were:
To review processes followed with regards to Payroll.
That the process followed complied with the City’s Policy and legislative requirements.
We documented the Payroll Cycle and reviewed the processing and balancing controls for the pay run. Commencements and Termination were also reviewed. Finally, we reviewed the controls around authorising and recording annual leave obligations. In detail, we selected 25 new employees in fiscal 2016 and ensured that the appropriate documentation was filled out, alongside the correct approvals, and that all documentation was retained in the set-up of each employee in the payroll subsystem. We selected 25 pay-runs processed in the fiscal year and selected an employee at random from each pay-run, ensuring that pay rates matched signed contracts, and viewing evidence that the pay-runs were approved and authorised by the appropriate individuals. For annual leave processing, we reviewed the processing of 25 leave applications during the fiscal period and viewed evidence of the appropriate approval and processing of the leave requested. No exceptions to any of these tests were noted. No matters came to our attention with regards to the payroll process at the City of Bunbury. Rates Review Objective and Scope The primary objective of the review was:
To ensure proper processes are followed with regards to processing and collection of rates.
Grant Thornton Australia Limited ABN 41 127 556 389 Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia. Liability limited by a scheme approved under Professional Standards Legislation.
4
Review Approach We documented the Rates Cycle and conducted a review of the procedures in place. Our review included reviewing the rates process for a sample of 25 rate charges to rate payers for the financial year ended 30 June 2016. No matters came to our attention with regards to the rates process at the City of Bunbury.
Other Revenue Review Objective and Scope The primary objective of the review was: • To ensure proper processes are followed with regards to processing and collection
of other revenue for cash receipts at the Administration Office and the Recreation Centres.
Review Approach We documented the cash receipts processes at the Administration office and the Recreation Centre as well as conducting a high level review of the procedures in place. Our review included reviewing the rates process for a sample of 25 cash receipts being received during the financial year ended 30 June 2016. During our review, no matters in relation to the cash receipts processes at the Administration Office or the Recreation Centre were noted. Fixed Assets Review Objective and Scope The primary objectives of the review were:
To ensure the acquisition and disposal of fixed assets are in compliance with the City’s Policies.
Review Approach We documented the Fixed Asset Cycle and reviewed 5 disposals and 25 additions for the period July 2015 to April 2016. During our review of the Fixed Asset Cycle we found no matters or recommendations and conclude that the controls in place regarding fixed assets are adequate.
Grant Thornton Australia Limited ABN 41 127 556 389 Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia. Liability limited by a scheme approved under Professional Standards Legislation.
5
Conclusion Based upon our work, we have concluded that the Financial Management Systems and procedures currently adopted by the City of Bunbury are operating effectively for the City’s current level of operation. Our review identified no control matters that need to be addressed in this report. This report has been prepared for the distribution to the addressee for the purpose of our engagement. We disclaim any assumption of responsibility for any reliance on this report to any person other than the addressee, or for any other purpose other than that for which it was prepared. Finally, we would like to take this opportunity to thank David Ransom and all the staff that assisted in the review for their assistance during our visit. If you have any questions or wish to discuss anything raised in the report, please do not hesitate to contact Graeme Morissey or myself on (08) 9480 2000. Yours sincerely
GRANT THORNTON AUDIT PTY LTD Chartered Accountants
M J Hillgrove Partner – Audit and Assurance
City of Bunbury
Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
Biennial Review - 1 November 2016
Appendix RAC-4
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
Risk Management - Internal control and risk management systems and programs are a key expression of a local government's attitude to effective controls
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
1.0 The City’s risk management systems are effective, and consider material operating risks appropriately1.1 Risk Management Policy adopted 24 June
2014.
Largely ineffective Senior Governance &
Risk Officer
Complete risk management framework
Implement risk management framework and
risk assessment within business units
Completed 01/11/16
February 2017
01/11/16 - Nominated departments currently undergoing
risk assessment prior to full implementation of program.
This is to streamline processes and documentation.
Risk Management Training with staff to be implemented in
February 2017.
29/08/16 - Meeting with Audit Committee to review Risk
Management Policy, Framework and guidelines.
20/06/16 - draft Framework and Corporate Guidelines
completed. Finalisation of templates in process.
30/09/15 – A briefing paper was endorsed by ELT.
12/07/16 - Amended Risk Management Policy with new
matrix approved and adopted by Council Res 232/16.
27/04/16 - Draft Framework presented to ELT. Following
the finalisation of draft templates - send all document to
Managers for feedback and proceed with pilot program.
14/04/16 - Draft framework presented to Managers.
Request for feedback prior to presentation to ELT on 27
April 2016.
11/11/15 - The Working group met and discussed overview
and draft implantation plan. Risk tools are currently being
developed.
23/10/15 – A working group for Risk Management was
formed
1.2 Occupational Safety & Health (OSH) Work
Procedure/Instruction
Substantially effective Manager HR and
Organisational
Development
Annually In October 2016 the City underwent an Occupational
Health and Safety audit conduct by LGIS. This audit
evaluated the City’s OSH systems against Worksafe Plan
assessment criteria. The City will be implementing a
number of the recommendations as part of the continuous
improvement process and has scheduled another review
for 12 months’ time to assess the progress.
01 November 2016 Page 2 of 28
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
1.3 OSH Committee Partially effective Manager HR and
Organisational
Development
The OSH Coordinator and Committee work
together to ensure a risk based approached
to OSH issues
The Committee meet monthly
1.4 Records Disaster Management Plan Substantially effective Manager Information
Annually The Events team currently prepare risk assessments for City
run events (Christmas Carnival and Australia Day).
The risk assessments are reviewed and updated annually in
line with event debriefs, changes to the event, and any new
or revised information. Risk assessments include
collaboration with relevant departments including Health.
Risk management template provided to event organisers
with all major events requiring a risk management plan as
part of the event approval process.
It will also be ensured that team members undertaking risk
assessments receive adequate training and support.
These templates will be further enhanced in line with the
Risk Management Framework and tools currently being
developed.
01 November 2016 Page 3 of 28
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
1.6 Asset Management - Risk Assessments Partially effective Manager Assets Inclusion of a risk assessment undertaken as
part of development and maintenance of
the City of Bunbury
ongoing 01/11/16 Asset Management Planning for individual asset
classes is being undertaken and will include more in depth
analysis of risk and risk management.
The Asset Management Plan was presented to the Audit
Committee on 2/11/15, and received by Council on
10/11/15.
An asset management working group comprising of two
elected members and officers has been established
(Council Decision 407/15).
The intent of the working group is to progress appropriate
service level benchmarks and options and put further asset
strategy recommendations for consideration by Council.
Risk is an integral part of asset planning and will continue
to be incorporated into asset management planning, as
part of the Risk Management Program
1.7 Workforce Risk Assessment Partially effective Manager HR and
Organisational
Development
Inclusion of a risk assessment undertaken as
part of development and maintenance of
the City of Bunbury Workforce Plan
ongoing Will be developed as part of the Risk Management Program
01 November 2016 Page 4 of 28
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
2.0 The City’s business continuity plan is current effective and tested from time to time 2.1 Business Continuity Plan Substantially effective Team Leader Community
Safety Emergency
Management
Continue development of appropriate
structures, procedures to support Business
Continuity, with final endorsement by ELT.
ongoing 01/11/16 - Triggers from threat plans, used to initiate
certain actions endorsed by LEMC and now effective 'all
hazards' triggers for response.
18 April, 2016 - Process in place, triggers for action
established, only training required to enable process.
01/16 Local Emergency Management Arrangements (annex
4 – Threat Plans) amended to include triggers for City of
Bunbury response levels, plus the addition of some
additional threats.
~
CLSEM has developed a process to provide for a
coordinated response from the City, scalable to emergency
risk complexity and enabling interface with responding
agencies. Process is reliant upon the selection of
appropriate staff, to occupy positions on the Emergency
Coordination Team, bringing their existing knowledge and
understandings to inform response decisions.
Process endorsed by ELT in October 2105.
~
LGIS study completed in 2013 and report provided. The
workshops determined acceptable downtimes for various
services and identified critical business. No formal ‘plan’
was developed or inculcated into CoB Business, as a result.
The study has highlighted expectations on core business
and indicates some business disruption risks.
2.2 Business Continuity Plan - training Partially effective Team Leader Community
Safety Emergency
Management
Arrange for training in Australasian Inter-
service Incident Management System
(AIIMS) for respondents
ongoing 01/11/16 Still awaiting the delivery of this training.
Requires nomination of likely candidates from City
Managers.
01/16 ELT has been asked to identify staff members who
would likely be in identified Emergency Coordination
Teams, so that training can occur in the Business Continuity
Process and it’s operating platform, the AIIMS.
This is likely to take place in late February, 2016.
~
As part of above, staff likely to be involved in the
Emergency Coordination Team, will receive training in the
above process and also the AIIMS (process as used by
response agencies).
01 November 2016 Page 5 of 28
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
2.3 Business Continuity Plan - scenario testing Partially effective Team Leader Community
Safety Emergency
Management
Undertake scenario testing at least twice per
annum.
ongoing 01/16 The first such exercise would be held subsequent to
the training (above), to test preparedness and adequacy of
process.
~
Authority to conduct would be required by ELT and through
Directors/Managers.
3.0
3.1 Completion of annual statutory compliance
audit report (CAR) - enables identification of
any potential non-compliance with
legislation, regulations, standards and
policies
Partially effective Senior Governance &
Risk Officer
Identify tolerance and appetite for risk for
inclusion in Risk Management Framework
and provide systematic processes to
identify, analyse, evaluate and treat all
material operating risks.
~
In accordance with the recommendations
outlined in Audit 17 report, ongoing internal
assessment of risk management, internal
control and legislative compliance processes
are in place
31/03/2017 08/03/16 - the Compliance Audit Report for the City was
adopted by Council (Res 57/16) following the
recommendation of the Audit Committee. The City
achieved 100% compliance for the period ending 31/12/15.
The City has identified internal processes for determining and managing material operating risks in accordance with the City's identified tolerance for risk in the following areas:
* Potential non-compliance with legislation, regulations and standards and policies;
* Important accounting judgements or estimates that prove to be wrong;
* Litigation and claims;
* Misconduct fraud and theft; Significant business risks;
* Recognising responsibility for general or specific risk areas, for example, environmental risk, occupational health and safety, and how they are managed by the City.
01 November 2016 Page 6 of 28
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
Review and Annual Audit for the 2015/16 financial year
have been completed and finalised with no deficiencies to
note. These reports are tabled in the Audit Committee
meeting 11 November 2016.
At the Committee meeting 8 August 2016 the current
auditors, Grant Thornton, were appointed for a further 12
months.
20/07/16 - Annual Audit by Grant Thornton for the
2015/16 financial year to commence 5 September 2016.
Grant Thornton's term as the City's auditor ends after the
audit of the 2015/16 financial year. The City's Audit
Committee to consider and recommend to Council the
appointment of a new auditor (or reappointment of the
current auditor) at its Committee meeting 8 August 2016.
3.3 Comprehensive Insurance/Claims coverage
and program with LGIS.
Substantially effective Manager Governance Insurance renewals for 16/17 were
undertaken in consultation with the Assets
Team to ensure consistency between asset
and insurance registers.
Annually
3.4 Organisational Development Department
maintain an OSH register of risks managed
by the OSH Committee.
Substantially effective OSH Officer ongoing
01 November 2016 Page 7 of 28
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
3.5 Sustainability and Integrated Land Use
Planning (SaILUP) – has responsibility for the
planning of functions in accordance with the
Strategic Community Plan including covering
the strategic (forward land use planning)
responsibilities in keeping with legislative
requirements and in consultation with other
State and Local Agencies.
Substantially effective Manager Sustainability,
Planning and
Development
ongoing 01/11/16 Draft Local Planning Scheme and Strategy 8
currently available for public consultation until Friday, 16
December 2016.
Key elements of the draft Local Planning Scheme 8 (LPS8),
which has been formulated by the City over a period of
several years, include greater opportunities for living and
working within walking distance and expanding the city
centre to engage with the “three waters” of the
Leschenault Inlet, ocean and Koombana Bay.
Under the new Scheme, the development potential of
Bunbury’s CBD will be unlocked by the ability to double
floor space through the new Regional Centre Zone.
More mixed use, such as commercial space on a lower floor
with residential above, is also being promoted through two
new mixed use zones.
There is also a range of new land uses designed to
encourage innovative development based on sound
planning and urban design principles.
An inaugural Local Planning Strategy is also an important
tool that will guide the implementation of the new Scheme
and the city’s development over the next 20 years.
4.0
4.1 Currently no regular risk reports are
provided.
Largely ineffective Manager
Governance/Senior
Governance & Risk
Officer
Risk Reports will be provided to the Audit
Committee
Risk Management Framework action plan
will recommend:
A Risk Committee established to oversee
risk management process; monitor risk
register; provide mechanism for new risks to
be reported.
Regular risk reports from Risk committee
provided to the Audit Committee
30/12/2016 01/11/16 - Risk Management process currently being
finalised. Training to staff to be completed in February
2017.
20/07/16 - draft Framework and Corporate Guidelines
completed. Finalisation of templates in process.
50% complete
23/10/15 – Working group formed
We anticipate the implementation process will be a
minimum of 12 months. An outcome of the plan is to
present risk reports to the Audit Committee on a regular
basis.
Processes and procedures to ensure the Audit Committee (and all other Council Committees) are adequately informed and do not misuse their position to gain advantage for themselves or another and disclose any
conflict of interest
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5.0 The City’s insurable risks are adequately managed
Substantially effective Manager Governance Annually Insurance renewals for 16/17 were undertaken in
consultation with the Assets Team to ensure consistency
between asset and insurance registers.
6.0 The City’s internal control system with management and the internal and external auditors is effective 6.1 Annual Review of financial management
systems in accordance with Regulation 5(1)
of the Local Government (Financial
Management) Regulations 1996
Areas reviewed include:
*Purchases/Payments/Payables;
*Receipts/Receivables/Cash Management
*Payroll
*Rates
*Other Revenue; and
*Fixed Assets.
Substantially effective Manager Finance ongoing 01/11/16 - A review of the financial management systems
was undertaken in May 2016. The report indicated no
areas of concern and no weaknesses were identified across
any of the areas audited. The Auditors to present findings
to the Audit Committee 11 November 2016.
May 2016 - Interim Audit and Financial Management
Systems Review undertaken by Grant Thornton Auditors.
A review of the financial management systems was
undertaken in May 2015. The Auditors presented to the
Audit Committee on 2 November 2015. The final report
indicated no areas of concern or weakness were identified
across any of the areas audited.
6.2 2014 Human Resources Internal Audit Substantially effective Manager HR and
Organisational
Development
Audit completed by AMD and captured in
Sycle.
Nine recommendations were made.
As at 1 May 2015, 6 are completed, 1
dismissed and 2 remain ongoing indefinitely.
completed
6.3 2014 Information and Communication
Technology Audit
Substantially effective Manager HR and
Organisational
Development
Audit completed by AMD and captured in
Sycle.
Fourteen recommendations were made. As
at November 2015 all recommendations
have been completed.
completed
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6.4 2013 Procurement Probity Review/Audit Substantially effective Senior Contracts And
Procurement Officer Audit completed by WALGA Procurement
Consultancy Service and captured in Sycle,
provided a Procurement Probity Review in
May 2013.
45 Recommendations were made.
As at November 2015, 40 are completed, 3
dismissed and 2 remain ongoing indefinitely.
completed
6.2 Evaluation of Misconduct management
arrangements
Partially effective Manager HR &
Organisational
Development
Evaluation completed by Public Sector
Commission (PSC). The City of Bunbury was
one of 12 public authorities to participate in
the evaluation process.
Annually The evaluation considered the extent to which policies,
procedures and management practices were demonstrated
against 23 criteria across the following areas:
1 Culture and Leadership
2 Systems and Processes
3 Consistency and completeness of application
The PSC has provided the City with a draft evaluation
advice which includes a number of suggested
improvements. The City has noted these suggestions and
has implemented an action plan to implement
improvements where required.
6.3 Occupational Health and Safety Audit Partially effective OSH Officer Audit completed by LGIS Annually The audit evaluated the City's OSH systems against
Worksafe Plan assessment criteria. The City will be
implement a number of the recommendations part of the
continuous improvement process and has scheduled
another review for 12 months time to assess the progress.
6.4 Ongoing Audit Programme Partially effective Manager Governance Prepare an internal audit programme to be
considered annually during project budget
considerations. Audited areas to be defined
at initial implementation and rotated
biennially.
ongoing The Governance Department will continue to proceed with
the recommendations outlined in this report, and
implement improvement actions using existing resources.
If any additional resources are required they will be
presented to Council for consideration as part of future
budget processes.
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7.0 The City's controls for unusual types of transactions and/or any potential transactions that might carry more than on acceptable degree of risk are effective
7.1 The following financial controls are in place
to identify and mitigate these risks:
*Purchase limit controls.
*Purchase limit controls.
*Segregation of financial duties.
*Internal review of payments by an
independent officer.
*Actual expenditure is compared to budgets
adopted by Council.
*Manager Finance unable to process
journals.
*Journals and bank reconciliations are
reviewed by Team Leader or Manager.
*Access to financial system programmes are
controlled by the Information and
Technology Department.
*Budget reviews are carried out in October
and February each year.
*A monthly financial report is prepared for
Council which includes explanations of actual
to budget variances of 10% and $25,000.
Internal controls are reviewed annually by
external auditors Grant Thornton
Partially effective Manager Finance Following the establishment of Council’s
appetite and tolerance for corporate risk as
identified under Issue 3.1, in accordance
with the risk management framework, the
level of controls will be reviewed.
30/06/2016 Financial Management Systems and Procedures review was
undertaken in May 2016. Outcome from the review is that
the financial controls are considered adequate by external
auditors.
May 2016 - Interim Audit and Financial Management
Systems Review undertaken by Grant Thornton Auditors -
awaiting outcome of Audit and Review
Financial controls are considered adequate by external
auditors
8.0 The City's procurement Framework - application of probity, transparency and procedures/processes of policies is effective 8.1 WALGA Procurement Consultancy Service
provided a Procurement Probity Review in
May 2013.
The Review assessed the City’s current level
of compliance against relevant purchasing
legislation and regulations
Substantially effective Senior Contracts And
Procurement Officer
The Review and implementation of 45
recommendations is now complete.
As at November 2015, 40 were completed, 3
dismissed and 2 remain ongoing indefinitely.
completed
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9.0
9.1 The Audit Committee meets at least 3 times
per annum
Substantially effective Manager Governance ongoing Committee meets quarterly as required depending of
timing of Auditors
9.2 The Audit Committee Membership consists
of three (3) Councillors, two (2) Community
members, one (1) ex-officio member and
support staff as required.
Substantially effective Manager Governance Reviewed in line with Local
Government Elections
9.3 The terms of reference has recently been
revised and reflects the model ToR provided
by the Department of Local Government and
Communities.
Substantially effective Manager Governance Reviewed in line with Local
Government Elections
10.0 The management of fraud and misconduct is effective, with risks identified, analysed, evaluated, treated and reported
10.1 Whilst it is acknowledged that fraud is
difficult to detect, it is believed that
appropriate financial controls exist and are
independently verified. Any evidence of
fraud and misconduct is immediately
reported to the CEO.
Substantially effective Manager Finance The external review by Grant Thornton each
year on the City’s financial managements
systems is maintained.
ongoing 01/11/16 The interim Grant Thornton Audit Findings
Report noted that no fraud was detected during the audit
procedure conducted. However, the City had an instance of
fraud perpetrated throughout the 15/16 period that has
been addressed and no further pervasive incidences have
occurred.
10.2 The City maintains a schedule of hierarchy
for purchasing limits and reviews the
purchasing and tendering policies in
accordance with the Policy & Review
Development Committee schedule.
Substantially effective Manager Finance
Senior Contracts and
Procurement Officer
ongoing The Finance Department maintain an up to date schedule
of hierarchy for purchasing limits, which is reviewed on a
regular basis. Notwithstanding changes in legislation, the
purchasing and tendering policies are reviewed every two
years, which is in accordance with the City’s adopted policy
framework.
ELT have endorsed the Risk Management Paper produced
by the Senior Governance Officer and a project group for
Risk Management Framework was established on 23
October 2015. Procurement risk is mitigated through
specifications and contract annexures to manage risk on a
project by project basis. While this recommendation is
complete the nature of risk dictates that this is an ongoing
area that is continuously reviewed and best practice
adopted.
The audit committee understands and discusses any changes in the City's control environment with key management including regular periodical meetings with internal and external auditors and compliance staff
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10.3 The City adopted a revised Code of Conduct
on 11 November 2014 (Decision 418/14).
Substantially effective Senior Governance &
Risk Officer
Reviewed biennially 01/11/16 - Code of Conduct currently being reviewed
20/07/16 - The Governance Department will undertake the
biennial review of the Code of Conduct. To be presented to
the Policy Review and Development Committee October
2016 meeting .
Acknowledgement of the Code is received from all new
staff as part of the induction process, and it is mandatory
for existing staff to acknowledge the updated Code through
the BOLD e-learning programme.
10.4 City Fraud Control Plan Largely ineffective Manager Finance and
Senior Governance and
Risk Officer
Develop a City Fraud Control Plan in
accordance with the Risk Management
Framework
30/06/2016 01/11/16 Controls will be identified and treatment plans
implemented if required, as part of City's management of
risk.
20/07/16 Waiting on the Risk Framework, guidelines and
templates to be endorsed.
Revised timeframe in line with the proposed
implementation plan for risk management programme.
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Internal control - systems involve policies and procedures that safeguard assets, ensure accurate and reliable financial reporting, promote compliance with legislation and achieve effective and efficient operations.
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
1.0 The City's Internal Control Framework is effective
1.1 The City has identified internal controls in the
following areas:
* Audit Compliance
* Delegation Register
*Policy Review Schedule
*Business Continuity Plan
*Code of Conduct
*Integrated Planning and Reporting Framework -
Community Strategic Plan, Corporate Business
Plan, Asset Management Plan and Workforce
Plan
*Record Keeping Plan
*Financial Register - Gifts, Financial Interests,
Primary & Annual Returns
*Tender Register
*Financial Audit Programme
* Corporate Guideline outlining the City's
internal control framework and it's commitment
to implementing, maintaining and reviewing risk
based internal controls
Partially effective Senior Governance & Risk
Officer
Document a Policy and Framework outlining
Council’s commitment to internal controls
and their importance to the organisation
Develop a risk based approach to internal
controls and establish a monitoring and
reporting system.
To ensure a process exists to track breaches
of internal controls and effectiveness of
changes to internal controls.
Attain - Governance Calendar
30/03/2016 Annually 01/11/16 - Risk Management program being finalised and
implemented. Training with staff to be conducted in
February 2017.
Internal Control Corporate Guideline endorsed by ELT
27/07/16.
Internal Corporate Guideline framework is complete and
will be presented to ELT on 27/07/16 for endorsement.
2.0 The City's separation of roles and functions, processing and authorisation controls are effective
2.1 Council maintains an up-to-date register of
delegations.
Documentation of designated employees is
maintained and kept up-to-date.
Procedures are in place to authorise employees
as required by legislation.
Procedures are in place to ensure designated
employees are informed and aware of their
responsibilities.
Substantially effective Senior Governance and
Risk Officer
Annually 01/11/16 - Review of Delegation Authority register to be
considered by Policy Review and Development Committee
on 17/11/16.
20/07/16 - Governance Department are currently
undertaking the annual review of the Delegated Authority
Register. In conjunction with the Register review, the
governance Department has also embarked on a review of
authorised officers and the procedures of authorising said
officers
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2.2 Authorised employees are provided a Certificate
of Authorisation issued by the CEO that
stipulates the legislation that each employee
has been authorised to administer and enforce.
Further to this, the roles and responsibilities for
each authorised employee are stipulated within
each authorised employees Position
Description.
Partially effective Manager Community Law,
Safety & Emergency
Management
Manager Health
Director Planning,
Development & Regulatory
Services
Establish a authorised officers register for all
City staff.
Dec-16 20/07/16 - Governance Department are currently
undertaking a review of authorised officers and the
procedures supporting this process.
New employees authorisations are included as part of
their induction program.
2.3Separation of financial duties and
responsibilities is reviewed annually by Auditors
Grant Thornton during the interim audit
Substantially effective Manager Finance ongoing Segregation of duties is considered appropriate
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3.0 The City's control of approval of documents, letters and financial records is effective
3.1 All documents created and stored by the City of
Bunbury are governed in accordance with the
State Records Act of Western Australia,
including the Record Keeping Plan.
The City is currently working with both paper
based and electronic records.
These documents are controlled within two
electronic document management systems –
although in future the City will only use one.
Users have access to these systems and
documents are controlled in accordance with
security privileges determined by their role
within the organisation.
*Financial records are covered by the
aforementioned controls.
Partially effective Manager Information,
Communications and
Technology
The City recognises that more work needs to
be done in relation to the creation and
control of records. It is expected that these
measures will be implemented as part of the
current document management system
deployment.
Annually 01/11/16 - Internal Review of IT Systems currently being
undertaken to gain insight into the current systems, how
they are being used and also to look for opportunities
going forward.
Project to migrate content from MyDocs to TRIM Record
Manager approved by ELT Dec 2015.
3.2 Common Seal Procedure outlined in the City of
Bunbury Standing Orders Local Law 2012.
Common Seal Register maintained by the office
of the CEO
Substantially effective CEO ongoing
4.0 The City's security controls in respect to physical access to records are effective
4.1 The City has the following security controls in
place:
• HR Information can only be accessed by staff
within the HR Department.
• Highly sensitive documents are managed
through the CEO’s office.
• At the present time, access to the City’s
physical paper based information is managed
through the City’s EDMS system, Trim.
Substantially effective Manager Information,
Communications and
Technology
ongoing
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5.0 The current security controls in respect to computer applications and information systems (general and application IT controls) are effective
5.1 The City utilises a broad range of controls
designed to protect the information systems
and the data that is contained while providing
as much flexibility to the users as possible.
The virtualisation of desktop systems has
allowed control of applications using efficient
and quick mechanisms.
Staff do not have administration level access to
install applications etc, and what they have
access to see and modify is controlled as well.
Other general controls such as password
complexity and change repetition are also
employed.
Access to the Internet is also filtered to prevent
use of material that is not desired for standard
business activities.
Substantially effective Manager Information,
Communications and
Technology
ongoing
6.0 The access limits placed on data files and systems (to make changes) are effective
6.1• The City utilises limits on email systems to
ensure that users email is maintained at
acceptable sizes and catalogued into the
Document Management System (myDocs).
• With regards to file level access this has been
reduced with the transition to using the myDocs
system resulting in a more structured approach
to the data that is generated. The remaining file
shares are limited and monitored using quota
management software.
• As part to the virtualisation of server
hardware that the City has embarked on,
centralisation of these file shares have resulted
in more efficient management of the file share
data.
Substantially effective Manager Information,
Communications and
Technology
ongoing
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7.0 The regular maintenance and review of financial control accounts and trial balances is appropriate
8.0 Independent review of internal financial controls
8.1 Independent auditors are engaged to undertake
annual independent audits of the financial
statements, including:
• Statement of financial position
• Statement of comprehensive income,
• Statement of changes in equity
• Statement of cash flows for year
• Summary of significant accounting policies
The Annual Audit includes:
• examination, on a test basis, of evidence
supporting the amounts and other disclosures in
the financial statements
• assessment of the risks of material
misstatement of the financial report, whether
due to fraud or error.
• evaluation of the appropriateness of the
financial reporting framework, accounting
policies used
• the reasonableness of accounting estimates
made by management
• evaluation of the overall financial statement
presentation.
Substantially effective Manager Finance Annually 01/11/16 - Grant Thornton Audit Pty Ltd formed an
opinion, the financial report of the City of Bunbury:
* Presents fairly of the City of Bunbury's financial position
as at 30 June 2016 and of its performance for the financial
year ended 30 June 2016.
*Complies with Australian Accounting Standards including
the Australian Accounting interpretations.
*Are prepared in accordance with the requirements of the
Local Government Act 1995 part 6 (as amended) and
Regulations under that Act.
20/07/16 - Annual Audit by Grant Thornton for the
2015/16 financial year to commence 5 September 2016.
May 2016 - Interim Audit and Financial Management
Systems Review undertaken by Grant Thornton Auditors -
awaiting outcome of Audit and Review.
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8.2 Independent Auditors (Grant Thornton)
undertook an independent financial Audit for
the year ended 30 June 2016.
The key areas of the financial audit focus are:
• Revenue
• Non-operating grants, subsidies and
contributions
• Receivables
• Assets (expenditure, valuation, depreciation)
• Employee costs/entitlements
• Operating expenses/trade other payables
• Identification and assessment risks of material
misstatement of the financial report due to
fraud
Substantially effective Manager Finance ongoing 01/11/16 Grant Thornton Audit Pty Ltd reported no
significant control deficiencies:
An in-depth analysis of controls around the processing of
transactions in the following areas was undertaken:
*Purchases, payments and payables
*Receipts, receivables and cash management
*Payroll
*Rates
Additionally it was noted in the Audit Findings Report in
regards to fraud risk:
Our audit procedures did not detect fraud. We note that
there was an instance of fraud perpetrated throughout the
period, but we were satisfied that this incident had been
addressed and no further pervasive incidences occurred.
2/11/15 Grant Thornton Audit Pty Ltd reported no
significant control deficiencies were identified.
An in-depth analysis of controls around the processing of
transactions in the following areas was undertaken:
• Purchases, payments and payables
• Receipts receivables and cash management
• Payroll
• rates
Additionally, their procedures did not uncover any matters
related to instances of fraud during the assessed period.
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9.0 Management undertake internal reviews in respect of comparison and analysis of financial results with budgeted amounts9.1 A financial summary report and project variance
report is reviewed by Executive Leadership
Team on a monthly basis. The project variance
report provides a summary of operating and
capital projects with an actual variance of
greater than 10% and $15,000 compared to the
year to date budget.
Substantially effective Manager Finance Monthly A monthly Financial Summary report and Project Variance
report is provided to the Executive Leadership team.
These reports show any areas of concern for comment and
action.
9.2 At the special council meeting 22 July 2016,
council adopted that a variance between actual
and budget to date of greater than or equal to
10% and $25,000. This is considered to be a
material variance for reporting purposes in the
Statement of Financial Activity for 2016/17 This
variance is reviewed annually by Council.
Substantially effective Finance Manager Annually At the special council meeting 27 July 2016, council
adopted that a variance between actual and budget to
date of greater than or equal to 10% and $25,000. This is
considered to be a material variance for reporting
purposes in the Statement of Financial Activity for
2016/17. This variance is reviewed annually by Council.
10.0 Controls in respect to purchasing and payment of accounts are assessed and appropriate
10.1 Annually - Independent auditors (Grant
Thornton) undertake a financial management
systems review in accordance with Regulation
5(1) of the Local Government (Financial
Management) Regulations 1996.
Areas reviewed included:
• Purchases/Payments/Payables;
• Receipts/Receivables/Cash Management
• Payroll
• Rates
• Other Revenue; and
• Fixed Assets.
Substantially effective Finance Manager Annually The following was noted in the May 2016 Financial
Management Review:
• Review of the controls over payments and account
payable did not identify any significant control
weaknesses.
• Review and testing of the receipts Cycle, did not identify
any significant weaknesses in these systems and
procedures.
• Review of payroll cycle, processing and balancing
controls for the payment run and commencements and
termination did not produce any matters requiring
attention.
• Review of the rates cycle including process and
procedures did not produce any matters requiring
attention
• Review of cash receipts processes at the administration
office and recreation centre did not produce any matters
requiring attention
• Review of fixed asset cycle found the controls in place
are adequate
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11.0 Reporting, review and approval controls of financial payments and reconciliations are appropriate
11.1 Annually- Independent auditors (Grant
Thornton) undertake a financial management
systems review in accordance with Regulation
5(1) of the Local Government (Financial
Management) Regulations 1996.
Areas reviewed included:
• Purchases/Payments/Payables;
• Receipts/Receivables/Cash Management
• Payroll
• Rates
• Other Revenue; and
• Fixed Assets.
Substantially effective Manager Finance Annually The following was noted in the May 2016 Financial
Management Review:
• Review of the controls over payments and account
payable did not identify any significant control
weaknesses.
• Review and testing of the receipts Cycle, did not identify
any significant weaknesses in these systems and
procedures.
• Review of payroll cycle, processing and balancing
controls for the payment run and commencements and
termination did not produce any matters requiring
attention.
• Review of the rates cycle including process and
procedures did not produce any matters requiring
attention
• Review of cash receipts processes at the administration
office and recreation centre did not produce any matters
requiring attention
• Review of fixed asset cycle found the controls in place
are adequate
May 2016 - Interim Audit and Financial Management
Systems Review undertaken by Grant Thornton Auditors -
awaiting outcome of Audit and Review
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12.0 The City compares result of physical cash and inventory count records with accounting records
12.1 Annually - Independent auditors (Grant
Thornton) undertake a financial management
systems review in accordance with Regulation
5(1) of the Local Government (Financial
Management) Regulations 1996.
Areas reviewed included:
• Purchases/Payments/Payables;
• Receipts/Receivables/Cash Management
• Payroll
• Rates
• Other Revenue; and
• Fixed Assets.
Substantially effective Manager Finance Annually 01/11/16 In addition to the interim audit and financial
management system review undertaken by Grant
Thornton, monthly bank and investment reconciliations
are completed (confirmed annually with bank
confirmations) as are stocktakes for the Depot.
The following was noted in the May 2016 Financial
Management Review:
• Review of the controls over payments and account
payable did not identify any significant control
weaknesses.
• Review and testing of the receipts Cycle, did not identify
any significant weaknesses in these systems and
procedures.
• Review of payroll cycle, processing and balancing
controls for the payment run and commencements and
termination did not produce any matters requiring
attention.
• Review of the rates cycle including process and
procedures did not produce any matters requiring
attention
• Review of cash receipts processes at the administration
office and recreation centre did not produce any matters
requiring attention
• Review of fixed asset cycle found the controls in place
are adequate
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Legislative Compliance - The compliance programs of a local government are a strong indication of attitude towards meeting legislative requirements.# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
1.0 Internal monitoring of the City's compliance with legislation and regulations is undertaken 1.1 • Yearly completion of Statutory Compliance Audit
Report.
• Annual review of Delegations Register.
• Bi monthly meetings of Policy Review and
Development Committee, where current Council
Policies are reviewed and updated or revoked
accordingly and proposed Policies are considered
before recommendation to Council.
• Content of Gift Register maintained.
• Content of Register of Financial Interests
maintained.
• Content of Register of Complaints maintained
• Content of Annual Report in accordance with the
Local Government Act 1995 and associated
regulations.
• Corporate Guideline outlining the City's
framework and commitment to maintaining
legislative compliance
Partially effective Senior Governance &
Risk Officer
That a framework reflecting a risk based
approach to legislative compliance be
developed, detailing the monitoring and
reporting systems to be utilised.
Adopt a formal policy outlining the City’s
commitment to comply with legislative
requirements.
Implement a Governance
calendar/legislative compliance risk
register.
Completed
December 2016
01/11/16 Legislative Compliance Corporate
Guideline endorsed by ELT 27/07/16.
Legislative Compliance Corporate Guideline
framework is complete and will be
presented to ELT on 27/07/16 for
endorsement.
New Governance Calendar to be included in
ATTAIN - the City's electronic management
platform for financial disclosure
requirements.
1.2 Review of Authorised Officers is undertaken when
new Authorised Officers are employed or at various
stages when legislation changes or new legislation
is introduced.
Substantially effective Manager Community
Law, Safety &
Emergency
Management
Manager Health
Director Planning,
Development and
Regulatory Services
ongoing 01/11/16 15/04/16 - Governance
Department are currently undertaking a
review of authorised officers and the
procedures supporting this process.
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1.3 Regular monitoring of legislative compliance is
conducted when new Authorised Officers are
employed, when legislation changes or new
legislation is introduced. Information relating to
changes in relevant legislation or the introduction
of new legislation is obtained via circulars provided
by the Dept. Local Government, State Law Publisher
or various professional organisations and relevant
Associations i.e. WA Rangers Association, IPAA.
Substantially effective Manager Community
Law, Safety &
Emergency
Management
Manager Health
Director Planning,
Development and
Regulatory Services
ongoing
1.4 Annual audits of end of year financial statements
and financial management systems
Substantially effective Manager Finance Annually An interim audit, financial management
systems, procedures review and annual
audit are completed during the course of
the financial year by externally appointed
auditors, currently Grant Thornton Auditors.
1.5 Review operational expenditure which may be
considered non-compliant as per tender legislation
Substantially effective Senior Contracts and
Procurement Officer
ongoing Arc Blue have produced the dashboard
analysis on expenditure. There has been
some preliminary analysis on information
and additional baseline expenditure on
some procurement areas has commenced to
ensure compliance and value for money.
There will be more in depth analysis to take
place and an ongoing program to tighten up
compliance and best practice.
1 November 2016 Page 24 of 28
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
2.0 The annual Compliance Audit Return is completed and the review reported to the Audit Committee and Council 2.1 Yearly Compliance Audit Report (CAR) completed in
accordance with legislation and adopted by Council
accordingly. The audit Committee review the CAR
prior to adoption by Council.
Completion of the relevant sections of the Return
effectively requires a number of ad-hoc internal
audits, which assist the City to ensure that
operations meet the statutory requirements of the
Local Government Act 1995 and associated
Regulations.
Substantially effective Manager Governance Reviewed annually 08/03/16 - the Compliance Audit Report for
the City was adopted by Council (Res 57/16)
following the recommendation of the Audit
Committee. The City achieved 100%
compliance for the period ending 31/12/15.
Officers have completed the CAR for 2015,
which will be considered by the Audit
Committee on 15 February 2016.
3.0
3.1 Bi monthly meetings are held with senior
management and the audit committee.
Minutes of meetings are recorded and presented to
Council for notation. Individual reports are
presented to Council for consideration and
recommendation. Council decisions are captured in
Sycle and monitored for action.
Partially effective Senior Governance &
Risk Officer
Regular risk updates to Audit Committee 30/06/2016 Quarterly We anticipate the Risk Management
Framework implementation process will be
a minimum of 12 months. An outcome of
the plan is that risk reports will be delivered
to the Committee on a regular basis.
Communication between the Audit Committee and Management is robust to ensure the Audit Committee is informed in respect to the effectiveness of the City’s compliance and able to make
recommendations for change as necessary
1 November 2016 Page 25 of 28
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
4.0 The City’s procedures in respect to receiving, retaining and handling complaints, including confidential and anonymous employee complaints
4.1 Up to date Code of Conduct sets out procedures for
handling employee complaints.
Partially effective Manager Governance Reviewed biennially 01/11/16 - The Governance Department are
undertaking a Code of Conduct Review
20/07/16 - The Governance will shortly
commence the biennial review of the Code
of Conduct. To be presented to the Policy
Review and Development Committee
October 2016 meeting.
4.2 Procedures for dealing with Councillor breach or
complaints are dealt with according to the Act.
Substantially effective Senior Governance &
Risk Officer
In accordance with the LGA
Act 1995
4.3 Customer Service Charter reviewed and adopted by
Council in February 2014. Customer Service
Framework and Complaints Policy currently being
prepared as part of the organisational customer
service framework.
Partially effective Manager Information,
Communication and
Technology
Customer Service and Complaints
Handling Guidelines reviewed and
updated Jan 2016 and will be presented to
ELT for consideration.
Completed 11/10/16 Customer Service Charter and
Customer Complaint Handling Guidelines
endorsed by ELT
19/07/16 Amendments were requested to
the draft guidelines. It is proposed to
represent the guidelines to ELT in the near
future.
1 November 2016 Page 26 of 28
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
4.4 Throughout 2014 procedures for receipting of
Primary and Annual Returns have been refined and
are in accordance with the Act and regulations.
Substantially effective Senior Governance
and Risk Officer
ongoing All Councillors and designated employees
have been trained in the use of Attain and
are now using the electronic management
system to record primary and annual
returns.
4.5 Public Interest Disclosure Policy and Guidelines Substantially effective Senior Governance
and Risk Officer
Reviewed biennially The Policy and Guidelines for Public Interest
Disclosure were reviewed at the Policy and
Review Development Committee Meeting
held 16 June 2016. No changes were
recommended.
5.0 How management disclosures the effect of significant compliance issues (if any) in financial reports 5.1 The independent auditor, Grant Thornton is
Audit Regulation 17 Review of appropriateness and effectiveness of the systems and procedures in relation to Risk Management, Internal Control and Legislative Compliance
# #.# Existing Controls Control Effectiveness Officer Improvements Timeframes for
implementation/Review
Comments
6.0
6.1 Councillors inducted to the City of Bunbury Substantially effective Manager Governance Reviewed in line with Local
Government Elections
New Councillors provided with induction
pack from the Governance Department.
6.2 Community Members inducted to the City of
Bunbury.
Substantially effective Manager Governance Reviewed in line with Local
Government Elections
All Committee members have been sent
welcome letters, which include
• terms of reference for the applicable
committee,
• Standing Orders Local Law
• term of commitment; and
• the City of Bunbury Code of Conduct
6.3 Declarations of impartiality/financial interests
6.4 Primary and Annual Returns recorded in Attain Substantially effective Manager Governance Ongoing
7.0 The City has adequate compliance frameworks to deal with relevant external legislation and regulatory requirements 7.1 • Standard operating procedures
• Council Policies and corporate guidelines
• Training of employees
• Use of Department Circulars
• Liaison with regulatory bodies to provide current
and anticipatory information
Substantially effective Senior Governance
and Risk Officer and all
Managers
Use of new Governance Calendar function
in ATTAIN to ensure review processes and
compliance with external legislation and
regulations are captured and maintained.
1/09/2016 Calendar not
available from Integrity
Management Solutions as yet.
Processes and procedures to ensure the Audit Committee (and all other Council Committees) are adequately informed and do not misuse their position to gain advantage for themselves or another and
disclose any conflict of interest
1 November 2016 Page 28 of 28
Thursday, 10 November, 2016
Budget Review
October 2016
Appendix CEO-1
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Office of Chief Executive Original
Budget
Department : Chief Executive Leadership
Operating and Capital Projets
Business Engagement
PR-4266 Undertake review of Council's Business Systems
Expenditure
$0 $44,858Salary Exp - General -$44,858$0
$0 $44,858 -$44,858 0.0$0
Undertake an internal review of Council's Business Systems. Funded from savings within
existing salaries budget.Comments:
Corporate Research and Policy Development
PR-3877 Management of funds for the Bunbury Marines Facilities: Engineering, Environmental and Planning
Increase in expenditure due to the set-up of an additional rates payment option with Australia Post's Digitial Mailbox. Increase in income due to the contribution from Australia Post to set up the facility.
Workers' compensation reimbursements received. Funds to be transferred to the Employee
Entitlement and Insurance Reserve.
Comments:
$35,000 -$15,240 $50,240Base Operating $35,000
Operating and Capital Projets
Corporate Training and Employee Development
PR-4257 Undertake Equal Employment Opportunity Training
Income
$0 -$10,000Operating Grant and Subsidy Inc - State $10,000$0
$0 -$10,000 $10,000 0.0$0
Expenditure
$0 $15,000Contract Exp - Professional Services -$15,000$0
$0 $15,000 -$15,000 0.0$0
The City is required to provide organisational wide training on Equal Employment Opportunity
and disability understanding. The City has successfully applied for a Lighthouse Grant from
the Department of Local Government for $10,000. The remaining $5,000 will be funded from
Administer Corporate Training Programs (refer page 6).
Comments:
$0 $5,000 -$5,000Operating and Capital Projets $0
$35,000 -$10,240Total for Organisational Development and Human Resources $45,240$35,000
Department : Trainees and Cadetships
Base Operating
Traineeships and Cadetships
Provide traineeships and cadetships
Expenditure
$251,822 $206,964Salary Exp - General $44,858$251,822
$251,822 $206,964 $44,858 17.8$251,822
Savings identified in the Traineeship and Cadetship salaries budget. Savings allocated to
PR-4266 Undertake review of Council's Business Systems (refer page 2).Comments:
Page 7 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Office of Chief Executive Original
Budget
Department : Trainees and Cadetships
$251,822 $206,964 $44,858Base Operating $251,822
$251,822 $206,964Total for Trainees and Cadetships $44,858$251,822
Page 8 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Planning and Development Services Original
Budget
Department : Community Law, Safety and Emergency Management
Base Operating
Community Safety
Maintain public CCTV equipment
Expenditure
$15,000 $9,024Contract Exp - Labour and Materials $5,976$15,000
$15,000 $9,024 $5,976 39.8$15,000
Savings used to partially fund overspend on PR-3870 Purchase and install CCTV cameras at
Queens Gardens (refer below, page 9).Comments:
Development Compliance
Conduct compliance inspections and administration
Income
$0 -$104,222Fine and Penalty Inc - Court Prosecution $104,222$0
$0 -$104,222 $104,222 0.0$0
Increase in fine and penalty income due to the finalisation of a successful health and building
court prosecution.
Comments:
Vehicle Parking Planning and Operations
Operate and maintain parking meters
Income
-$35,465 -$11,310Parking Fee Inc - Victoria Street -$24,155-$35,465
-$35,465 -$11,310 -$24,155 68.1-$35,465
Expenditure
$50,000 $5,299Lease and Hire Exp - Land $44,701$50,000
$50,000 $5,299 $44,701 89.4$50,000
Reduction in parking fee income and carpark lease expenditure at the Victoria Street
carpark due to owners developing. Lease expenditure and parking revenue has
ceased. All funds are transferred to/from the Parking reserve.
Comments:
$29,535 -$101,209 $130,744Base Operating $29,535
Operating and Capital Projets
Community Safety
PR-3870 Purchase and install CCTV cameras at Queens Gardens
Expenditure
$0 $12,976Contract Exp - Labour and Materials -$12,976$0
$0 $12,976 -$12,976 0.0$0
Original project in 2015/16 proposed a wireless link between the cameras in Cobblestone
Drive and the switch at the Visitor Centre. This was not able to be achieved and so it was
necessary to install a fibre optic cable which included horizontal boring under Blair Street. This is partially funded from Maintain Public CCTV Equipment (refer above, page 9). Balance funded from the General Carparking Reserve.
Comments:
Page 9 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Planning and Development Services Original
Budget
Department : Community Law, Safety and Emergency Management
Operating and Capital Projets
Community Safety Equipment Acquisition Upgrade and Renewal
PR-4254 Installation of electric security fencing and compound at Regional Animal Welfare Centre
Expenditure
$0 $64,425Contract Exp - Labour and Materials -$64,425$0
$0 $64,425 -$64,425 0.0$0
Installation of an electric security fence ($54K) around the perimeter of the new Regional
Animal Welfare Centre has been proposed to help reduce the current number of break-ins
and to improve the overall security. It has also been proposed to increase the compound
area for the temporary storage of abandoned vehicles ($12K).
Comments:
PR-4175 Disposal of portion of Lot 200 Robinson Drive, Davenport
Income
$0 -$163,425Proceeds from Disposal of Land $163,425$0
$0 -$163,425 $163,425 0.0$0
Expenditure
$0 $7,000Contracts Exp - Professional Services -$7,000$0
$0 $39,612Contract Exp - Labour and Materials -$39,612$0
$0 $46,612 -$46,612 0.0$0
The disposal is in relation to the old animal pound facility. Since the new Animal Welfare
Centre is fully functional an opportunity to sell the old facility has been presented.
Quotes are currently being sought for the demolition and relocation/disconnection of services.
Net proceeds to be used for PR-4254 - Installation of electric fencing and compound at
Regional Animal Shelter ($64K) and balance to Asset Management and Renewal Reserve
($52K).
Comments:
$0 -$39,412 $39,412Operating and Capital Projets $0
$29,535 -$140,621Total for Community Law, Safety and Emergency Management $170,156$29,535
Page 10 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Planning and Development Services Original
Budget
Department : Environmental Health
Base Operating
Public Health Compliance
Enforce health legislation
Income
$0 -$15,500Fine and Penalty Inc - Court Prosecution $15,500$0
$0 -$15,500 $15,500 0.0$0
Increase in fine and penalty income due to the finalisation of a successful health and building
court prosecution.
Comments:
Assess street trading licence applications
Income
-$6,545 -$10,627Fee and Charge Inc - Other Health $4,082-$6,545
-$6,545 -$10,627 $4,082 -62.4-$6,545
Increase in budgeted income for 2016/17 due to increase in number of street trading licences.Comments:
-$6,545 -$26,127 $19,582Base Operating -$6,545
-$6,545 -$26,127Total for Environmental Health $19,582-$6,545
Department : Sustainability, Planning and Development
Operating and Capital Projets
Heritage Conservation
PR-3722 Prepare a Conservation Plan for the Stirling Street Arts Centre
Expenditure
$6,732 $0Contract Exp - Labour and Materials $6,732$6,732
$6,732 $0 $6,732 100.0$6,732
Project carried forward from 2015/16. This has been able to be completed with no additional
expenditure required.Comments:
$6,732 $- $6,732Operating and Capital Projets $6,732
$6,732 $0Total for Sustainability, Planning and Development $6,732$6,732
Page 11 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Works and Services Original
Budget
Department : Building and Trades
Operating and Capital Projets
Community Building Acquisition Upgrade and Renewal
PR-4264 Stirling Street Arts Centre Air Conditioning
Expenditure
$0 $12,500Asset Purchases >$2000 Exp -$12,500$0
$0 $12,500 -$12,500 0.0$0
Provide two reverse cycle high level split air-conditioning units to studio 2. A development
application and heritage approval are required before works can be undertaken.Comments:
PR-4162 Construct new toilet facilities at Koombana North
Expenditure
$145,000 $105,000Contract Exp - Labour and Materials $40,000$145,000
$145,000 $105,000 $40,000 27.6$145,000
Design works and costings have been completed. Project expected to be delivered under
budget. A budget reallocation of $40,000 to PR-3445 Refurbish existing toilet at Queens
Gardens (below) to ensure enough funds based on design and current costings.
Comments:
PR-3445 Refurbish existing toilet at Queens Gardens
Expenditure
$120,000 $160,000Contract Exp - Labour and Materials -$40,000$120,000
$120,000 $160,000 -$40,000 -33.3$120,000
Design works and costings have been completed. A budget reallocation of $40,000 from
PR-4162 Construct new toilet facilities at Koombana North (above) to ensure enough funds
based on design and current costings.
Comments:
Office and Depot Building Acquisition Upgrade and Renewal
PR-1248 Construct new depot building to replace existing depot (Design PR-1246)
Expenditure
$0Contract Exp - Labour and Materials $2,000,000 -$2,000,000$0
$0 $2,000,000 -$2,000,000 0.0$0
Design works for the new depot are currently being undertaken. Construction of the new depot
is expected to commence in the 2016/17 financial year and it is expected there will be
$2,000,000 of expenditure. This is to be funded from the Depot Construction Reserve
($872.5K), Refuse Collection and Waste Minimisation Reserve ($600K) and the Asset
Management and Renewal Reserve ($527.5K).
Comments:
Sport and Leisure Building Acquisition Upgrade and Renewal
PR-3446 Upgrade underground power into Hay Park from Bussell Highway
Expenditure
$77,000 $75,311Contract Exp - Labour and Materials $1,689$77,000
$77,000 $75,311 $1,689 2.2$77,000
Savings have been transferred to PR-4026 Upgrade Hay Park North Sewerage Infrastructure
- Stage 1 (refer page 22).Comments:
Page 12 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Works and Services Original
Budget
Department : Building and Trades
$342,000 $2,352,811 -$2,010,811Operating and Capital Projets $342,000
$342,000Total for Building and Trades $2,352,811 -$2,010,811$342,000
Department : Engineering
Base Operating
Airport Operations and Maintenance
Maintain airport grounds
Expenditure
$0 $20,000Contract Exp - Labour and Materials -$20,000$0
$0 $20,000 -$20,000 0.0$0
Transfer of funds from maintain Turf Surfaces - Non-Sporting (page 15) to Maintain Airport
Grounds for the mowing of airport grounds.Comments:
$0 $20,000 -$20,000Base Operating $0
Operating and Capital Projets
Engineering Advice, Investigations, Survey and Concept Design
PR-4265 Pelican Point Grand Canals Maintenance Dredging Report
Expenditure
$0 $32,000Contract Exp - Professional Services -$32,000$0
$0 $32,000 -$32,000 0.0$0
It has been identified that the City requires to appoint a consultant to complete a dredging
report on the Grand Canals, Pelican Point. This report will cover the need for dredging,
technical information, alternatives, and environmental impacts. This project will be funded
from the Canal Management Reserve.
Comments:
Page 13 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Works and Services Original
Budget
Department : Engineering
Operating and Capital Projets
Transport Asset Acquisition Upgrade and Renewal
PR-3694 Renew Parade Road
$0 -$70,000
Income
Capital Grant Inc - State - Regional Road $70,000$0
$0 -$70,000 $70,000 0.0$0
Expenditure
$0 $105,000Contract Exp - Labour and Materials -$105,000$0
$0 $105,000 -$105,000 0.0$0
Additional funding made available from Regional Road Group Funding Pool. City of Bunbury
1/3 contribution ($35,000) coming from cash saving on PR-1190 Reconstruct Pennant Road
(refer below on page 14).
Comments:
PR-1190 Reconstruct Pennant Road, East Bunbury
Expenditure
$120,735 $85,735Contract Exp - Labour and Materials $35,000$120,735
$120,735 $85,735 $35,000 29.0$120,735
Project carried forward from 2015/16 to allow asphalting to be completed. Budget reduced by
$35,000 (saving) to cover City of Bunbury's 1/3 contribution to new Regional Road Group
project PR-3694 Renew Parade Road (refer above on page 14).
Comments:
$120,735 $152,735 -$32,000Operating and Capital Projets $120,735
$120,735 $172,735Total for Engineering -$52,000$120,735
-$4,734,413 -$4,773,078Total for Waste Operations $38,665-$4,734,413
Page 16 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Works and Services Original
Budget
Operating and Capital Projets
PR-4253 - Support Roadwise "M8 the call can W8" campaign 2016/17
Income
$0 -$27,850Operating Grant and Subsidy Inc - State $27,850$0
$0 -$27,850 $27,850 0.0$0
Expenditure
$0 $8,791Material Exp - General -$8,791$0
$0 $13,450Contract Exp - Advertising -$13,450$0
$0 $8,400Lease and Hire Exp - Equipment -$8,400$0
$0 $30,641 -$30,641 0.0$0
Road safety campaign instigated by the Bunbury Roadwise Committee.Comments:
PR-4145 Expand and upgrade Koombana Bay Foreshore
Income
$0 -$138,934Capital Contribution Inc - Interest on C $138,934$0
$0 -$138,934 $138,934 0.0$0
Expenditure
$4,600,000 $4,738,934Contract Exp - Labour and Materials -$138,934$4,600,000
$4,600,000 $4,738,934 -$138,934 -3.0$4,600,000
Design documentation due to be delivered in mid December.
Interest has been received on grant income that was received late in the 2015/16 financial
year that was not budgeted. This is matched with additional expenditure for the project.
Comments:
$4,600,000 $4,602,791 -$2,791Operating and Capital Projets $4,600,000
$4,600,000 $4,602,791Total for Works and Services Leadership -$2,791$4,600,000
Page 17 of 23
Department : Works and Services Leadership
Operating and Capital Projets
Special Projects
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Community and Corporate Services Original
Budget
Department : Arts and Culture
Operating and Capital Projets
Cultural Development
PR-4005 Conduct Culture Counts Pilot project
Income
-$5,000 $0Operating Grant and Subsidy Inc - State -$5,000-$5,000
-$5,000 $0 -$5,000 100.0-$5,000
Expenditure
$9,500 $4,500Contract Exp - Professional Services $5,000$9,500
$9,500 $4,500 $5,000 52.6$9,500
Grant funding for the Art Gallery project ($5k) is now not required as the expenditure will be paid directly by the Department Culture and Arts. The balance of $4,500 will be used to conduct the Culture Counts Pilot project at the Bunbury Museum and Heritage Centre.
Comments:
Museum Operations
PR-2734 Undertake exhibition fit-out for Bunbury Museum and Heritage Centre (includes fit-out of shop)
Expenditure
$355,120 $359,758Contract Exp - Labour and Materials -$4,638$355,120
$355,120 $359,758 -$4,638 -1.3$355,120
Additional expenditure incurred to finalise Museum fit-out. Additional expenditure will be
funded from the Museum donations and Reserves.
Comments:
$359,620 $364,258 -$4,638Operating and Capital Projets $359,620
$359,620 $364,258Total for Arts and Culture -$4,638$359,620
Department : Community and Corporate Services Leadership
Operating and Capital Projets
Community Funding Coordination
PR-4262 Support Koombana Bay Sailing Club CSRFF application to refurbish male toilets and change room
facilities
Expenditure
$0 $50,000Contributions Exp -$50,000$0
$0 $50,000 -$50,000 0.0$0
Council to consider allocating $50,000 to support the Koombana Sailing Club's CSRFF
application to refurbish the male toilets and change room facilities as part of the October
2016 Budget Review. Council Decision 280/16 dated 9 August 2016.
Comments:
Page 18 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Community and Corporate Services Original
Budget
Department : Community and Corporate Services Leadership
Operating and Capital Projets
Executive Leadership - Community and Corporate Services
PR-4118 Additional Information, Communication and Technology Hardware and Software - Unplanned
Project was originally budgeted as operating with $33,000 grant and expenditure. We have
since been advised that the successful grant was $32,000 and the funds will be used for
amenities upgrade, a new project has been created PR-4295 (refer page 22).
Comments:
$60,000 $61,689 -$1,689Operating and Capital Projets $60,000
$60,000 $61,689Total for Sports and Recreation -$1,689$60,000
Page 22 of 23
Thursday, 10 November, 2016Budget Review - October 2016
Current
Budget
Forecast Forecast
Change
%Community and Corporate Services Original
Budget
Department : Tourism and Events
Base Operating
Wildlife Park Operations
Operate wildlife park
Expenditure
$0 $1,000Memberships and Subscriptions Exp -$1,000$0
$0 $1,000 -$1,000 0.0$0
The Bunbury Wildlife Park has been granted permission to become a member of the
Zoological Association of Australia (ZAA). This recognises that the Wildlife Park has met strict
criteria and allows the park to become a part of conservation programs and access a range of
animals from other ZAA organisations.
Comments:
$0 $1,000 -$1,000Base Operating $0
Operating and Capital Projets
Festival and Event Development and Support
PR-4263 Conduct Victoria Street Trial Periodic Closures
Income
$0 -$1,000Contribution Income $1,000$0
$0 -$1,000 $1,000 0.0$0
Expenditure
$0 $3,000Salary Exp - Overtime -$3,000$0
$0 $8,000Contract Exp - Labour and Materials -$8,000$0
$0 $11,000 -$11,000 0.0$0
The City is collaborating with a number of event organisers to develop a series of events throughout December and January in support of trial Victoria Street periodic closures. On Sunday 4 December 2016 there will be a Victoria Street Artisan Fayre featuring high-quality artisan markets in the lead-up to Christmas, on Saturday 14 January a food truck and entertainment event, and on Saturday 4 February 2017 the Bunbury Fringe Festival will host a street event. This project is to fund the City's contribution to the three closure events being traffic management staff, event staff, security, lighting and generators, staging and production equipment, and marketing.
Comments:
$0 $10,000 -$10,000Operating and Capital Projets $0
$0 $11,000Total for Tourism and Events -$11,000$0
-$5,909,357Review Total
D:\CammsApps\Hosted Applications\Live\Interplan\CustomReports\COB Budget Review Major Variances.rpt
Page 23 of 23
STATEMENT of COMPREHENSIVE INCOME
Friday, 11 November, 2016
Period Ending October 2016
Appendix CEO-2
Budget
Year to Date Friday, 11 November, 2016City of Bunbury
Statement of Comprehensive IncomePeriod Ending October 2016
Actual ForecastCurrent
Budget
%
Var
Original
Budget
Operating Income
Rates
35,452,996 35,451,956 35,451,956 35,451,956Rates General Inc 0 35,451,956
43,995 43,869 43,869 43,869Rates Specified Area Inc 0 43,869
PR-2104 Reseal Blair Street carpark 85,000 85,000 85,000% Complete 0
PR-3699 Renew footpath at Frankel Street shopping precinct, reseal carpark
16,452 220,000 220,000 220,000% Complete 65
287,914 366,997 850,000 850,000 850,000
Page 3 of 25
City of Bunbury
Capital Works Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Community Building Acquisition Upgrade and Renewal
PR-3390 Capital works at Bunbury Regional Entertainment Centre (BREC), including replacing hardi-flat sheeting with colourbond metal sheeting to flytower
Design works and costings have been completed. A budget reallocation of $40,000 from PR-4162 Construct new toilet facilities at Koombana North to ensure enough funds based on design and current costings.
PR-3612 Design and construct Bunbury SES headquarters and incident control centre
Building has been completed, with furniture, fittings and computers to be installed. Telecommunications are still in the process of being installed with the delay of the NBN.
PR-4112 Upgrade facilities to meet the goal of becoming the Most Accessible Regional City in Australia by 2020
100,000 100,000 100,000% Complete 20
PR-4162 Construct new toilet facilities at Koombana North 676 145,000 145,000 105,000 -40,000% Complete 20
Design works and costings have been completed. Project expected to be delivered under budget. A budget reallocation of $40,000 to PR-3445 Refurbish existing toilet at Queens Gardens to ensure enough funds based on design and current costings.
PR-4264 Stirling Street Arts Centre Air Conditioning 12,500 12,500% Complete 0
Provide two reverse cycle high level split air-conditioning units to studio 2. A development application and heritage approval are required before works can be undertaken.
PR-3870 Purchase and install CCTV cameras at Queens Gardens 12,976 12,976 12,976% Complete 100
Original project in 2015/16 proposed a wireless link between the cameras in Cobblestone Drive and the switch at the Visitor Centre. This was not able to be achieved and so it was necessary to install a fibre optic cable which included horizontal boring under Blair Street. This is partially funded from Maintain Public CCTV Equipment. Balance from the General Carparking Reserve.
12,976 12,976 12,976
Page 5 of 25
City of Bunbury
Capital Works Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Community Safety Equipment Acquisition Upgrade and
PR-4009 Install remote Council system access for rangers 12,500 12,500 12,500 12,500% Complete 10
Investigations have commenced for appropriated devices.
PR-4149 Implement State CCTV Strategy Infrastructure program 334,370 334,370 334,370% Complete 15
PR-4175 Disposal of portion of Lot 200 Robinson Drive, Davenport 437 46,612 46,612% Complete 10
The disposal is in relation to the old animal pound facility. Since the new Regional Animal Welfare Centre is fully functional an opportunity to sell the old facility has been presented. Quotes are currently being sought for the demolition and relocation/disconnection of services. Net proceeds to be used for PR-4254 - Installation of electric fencing and compound at Regional Animal Shelter ($64K) and balance to Asset Management and Renewal Reserve ($52K).
PR-4254 Installation of electric security fencing and compound at Regional Animal Welfare Centre
64,425 64,425% Complete 0
Installation of an electric security fence ($54K) around the perimeter of the new Regional Animal Welfare Centre has been proposed to help reduce the current number of break-ins and to improve the overall security. It has also been proposed to increase the compound area for the temporary storage of abandoned vehicles ($12K).
437 12,500 346,870 346,870 457,907 111,037
Page 6 of 25
City of Bunbury
Capital Works Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Corporate Information
PR-4258 Purchase of a storage facility for Corporate Information and documents
9,350 9,350% Complete 95
Purchase of a 40ft sea container to store confidential record information.
9,350 9,350
Corporate Plant and Vehicle Acquisition Upgrade an
PR-4119 Upgrade of Graffiti removal equipment and storage area to meet safety standards
6,348 6,348 6,348 6,348% Complete 50
Quotes are currently being sourced.
6,348 6,348 6,348 6,348
Page 9 of 25
City of Bunbury
Capital Works Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Land Acquistions and Rationalisations
PR-3381 Dispose of Lot 66 Ocean Drive 5,245 53,000 53,000 27,000 -26,000% Complete 5
As it is hard to accurately budget when land sales will occur, the income will be removed from the budget. When land sales occur the proceeds from disposal of land will be transferred to the Asset Management and Renewal Reserve to fund works in future years.
PR-3387 Dispose of Lot 24 Fielder Street 9,673 64,647 64,647 72,447 7,800% Complete 50
As it is hard to accurately budget when land sales will occur, the income will be removed from the budget. When land sales occur the proceeds from disposal of land will be transferred to the Asset Management and Renewal Reserve to fund works in future years. Additional expenditure is due to preliminary site investigations, additional surveying fees and subdivision fees.
PR-3658 Disposal of portions of lots 8 and 256 Tuart Street South Bunbury
2,344 1,000 1,000 2,344 1,344% Complete 90
Legal fees on the disposal of Lot 8 and 256 Tuart Street higher than budgeted.
PR-3730 Dispose of Lot 70 Winthrop Avenue (Amended College Grove Joint Venture)
38,815 38,815 20,000 -18,815% Complete 35
As it is hard to accurately budget when land sales will occur, the income will be removed from the budget. When Lot 70 Winthrop Avenue is sold the proceeds of sale will be transferred into the College Grove Subdivision Amended Joint Venture Reserve. Some expenditure will still be required prior to the sale for marketing costs, etc.
PR-4148 Disposal of Lot 33 Strickland Street 2,211 5,000 5,000 5,000% Complete 5
As it is hard to accurately budget when land sales will occur, the income will be removed from the budget. When land sales occur the proceeds from disposal of land will be transferred to the Asset Management and Renewal Reserve to fund works in future years.
Settlement of 10 Sutherland Way, Picton occurred on the 31/08/2016. This budget includes an allocation for design costs which are currently in progress.
PR-4154 Acquisition of portion of Lot 123 Jarvis Street, Bunbury 2,495 12,220 12,220 12,220 12,220% Complete 50
Property owner reimbursed for expenses to date. Purchase of land now subject to property owner subdividing land.
PR-3616 Acquisition, subdivision and disposal of Lot 1028 Latreille Rd South Bunbury
3,932 7,426 7,426 13,263 5,837% Complete 75
As it is hard to accurately budget when land sales will occur, the income will be removed from the budget. When land sales occur the proceeds from disposal of land will be transferred to the Asset Management and Renewal Reserve to fund works in future years. Additional expenditure required due to property subdivision and clearances prior to sale.
3,932 7,426 7,426 13,263 5,837
Landscape Acquisition Upgrade and Renewal
PR-1536 Renew landscaping and irrigation systems at Queens Gardens
Additional expenditure incurred to finalise Museum fit-out. Additional expenditure will be funded from the Museum donations and Reserves.
PR-3716 Develop 'The Classroom' within the Bunbury Museum and Heritage Centre for school and community use, in partnership with the Chefs Long Table Lunch
28,523 28,523 28,523 28,523% Complete 80
Project carried forward from 2015/16.
359,758 328,523 383,643 383,643 388,281 4,638
PR-2244 Asset Replacement - Fixed and mobile phones and
PR-4012 Upgrade and segmentation of network infrastructure 100,000 100,000 100,000% Complete 0
PR-4013 Replace Council Chambers Audio Visual and Streaming Equipment
60,000 60,000 60,000 60,000% Complete 30
2,085 94,000 250,000 250,000 250,000
Page 13 of 25
Network and Communications Equipment Acquisition Upgrade and Renewal
City of Bunbury
Capital Works Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Office and Depot Build Acquisition Upgrade Renewal
PR-1248 Construct new depot building to replace existing depot (Design PR-1246)
2,000,000 2,000,000% Complete 0
Design works for the new depot are currently being undertaken. Construction of the new depot is expected to commence in the 2016/17 financial year and it is expected there will be $2,000,000 of expenditure. This is to be funded from the Depot Construction Reserve ($872.5K), Refuse Collection and Waste Minimisation Reserve ($600K) and the Asset Management and Renewal Reserve ($527.5K).
2,000,000 2,000,000
Office Furniture and Equipment Acquisition and Rep
PR-2768 Undertake works to complete the implementation of Leschenault Inlet Master Plan (LIMP) Precinct 2 - Water Playground
7,344,443 7,344,443 7,344,443% Complete 0
Project carried forward from 2015/16.
PR-2792 Undertake works to complete the implementation of LIMP Precinct 4 - Friendship Gardens
25,000 50,000 50,000 50,000% Complete 5
PR-3441 Withers Projects as per Withers Advisory Committee 263,636 39,726 39,726% Complete 90
As decisions are made by the Withers Advisory Committee and Council. Funds are transferred from this general project to specific projects.
PR-4111 Install accessible ramp at Koombana Bay 28,842 28,842 28,842% Complete 10
Project carried forward from 2015/16.
PR-4145 Expand and upgrade Koombana Bay Foreshore 223,340 4,600,000 4,600,000 4,738,934 138,934% Complete 30
Design documentation due to be delivered in mid December.Interest has been received on grant income that was received late in the 2015/16 financial year that was not budgeted. This is matched with additional expenditure for the project.
PR-4165 Develop a detailed design for a Cultural Precinct 125,000 365,000 365,000 365,000% Complete 0
PR-4173 Installation of CCTV to Withers Laneways (Jacaranda to Davenport, Rendell to Westwood)
53,910 53,910% Complete 0
As per WAC meeting 19/08/16 (WAC decision 25/16, Council Decision 314/16)
Page 16 of 25
City of Bunbury
Capital Works Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Special Projects
PR-4174 Install external toilet and sink facilities at Withers Community Garden
1,575 55,000 55,000% Complete 40
As per WAC meeting 19/08/16 (WAC decision 25/16, Council Decision 314/16)
PR-2659 Undertake Hay Park Development Plan - Convert dilapidated basketball courts to parking area
1,291 25,000 25,000 25,000% Complete 75
Needac work for the dole program has lowered the fence and set the railing.
PR-3393 Provide kitchen and bar equipment for the Hay Park South Multi Sports Pavilion
2,500 2,500 2,500 2,500% Complete 50
Project carried forward from 2015/16.
PR-3394 Provide furniture and equipment for Hay Park South Multi Sports Pavilion
9,250 9,250 9,250 9,250% Complete 50
Project carried forward from 2015/16.
PR-4018 Renew South West Sports Centre (SWSC) cafe cabinet 35,000 35,000 35,000 35,000% Complete 40
Quotes currently being sought.
PR-4019 Renew South West Sports Centre (SWSC) carpet 2016/17 to 2019/20
40,000 40,000 40,000% Complete 25
PR-4026 Upgrade Hay Park North Sewerage Infrastructure - Stage 1 61,689 60,000 60,000 60,000 61,689 1,689% Complete 100
Project completed. Overrun funded from PR-3446 Upgrade underground power into Hay Park from Bussell Highway.
PR-4295 Renew and revitalise South West Sports Centre (SWSC) Community Pool Revitalisation Program (CPRP) 2017
32,000 32,000% Complete 0
Page 18 of 25
City of Bunbury
Capital Works Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Sport and Recreation Asset Acquisition Upgrade an
Project was originally budgeted as operating with $33,000 grant and expenditure (PR-4164). We have since been advised that the successful grant was $32,000 and the funds will be used for amenities upgrade.
62,980 106,750 171,750 171,750 205,439 33,689
Sports Building Acquisition Upgrade and Rewewal
PR-3446 Upgrade underground power into Hay Park from Bussell Highway
Grant received from the Department of Infrastructure and Regional Development (Stronger Communities Program - matching funds required from the City of Bunbury). Works will be undertaken at Big Swamp Playground, awaiting confirmation of permit.
Project carried forward from 2015/16 to allow asphalting to be completed. Budget reduced by $35,000 (saving) to cover City of Bunbury's 1/3 contribution to new Regional Road Group project PR-3694 Renew Parade Road.
PR-1197 Upgrade intersection of Parade Rd and Crampton Ave, Usher (Design PR-2181)
Earthworks and clearing complete, Southbound lane pavement and seal complete, Seawall approx. 25% complete, Drainage approx. 50% complete, Earthworks and pavement complete for roundabout, Boardwalk removed.
Additional funding made available from Regional Road Group Funding Pool. City of Bunbury 1/3 contribution ($35,000) coming from cash saving on PR-1190 Reconstruct Pennant Road.
Upgrade of Intramaps to Version 8.2. Funds have been reallocated from Maintain spatial data sets ($8,000) and PR-4118 Additional Information, Communication and Technology Hardware and Software - unplanned ($6,586).
7,200 7,200 7,200 21,786 14,586Business System Acquisition Upgrade and RenewalTotal for
Business System Maintenance
PR-3882 Upgrade Trim Electronic Document Management System to Records Manager 8 and Implement Sharepoint Integration
21,000 21,000 21,000% Complete 0
Project carried forward from 2015/16.
PR-4014 Upgrade TRIM 7.3.5 to HP Records Manager 8.x 15,000 15,000 15,000 15,000% Complete 0
On hold, pending ECU review.
PR-4255 ESXi Update 5,044 5,044% Complete 0
This project will ensure the update of the City's firmware on our ESXi nodes and resolve a number of issues that the City has been dealing with in the virtual computer environment. Funds have been reallocated from PR-1745 Upgrade Information Technology Disaster Hardware and Software.
15,000 36,000 36,000 41,044 5,044Business System MaintenanceTotal for
Page 3 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
8,960 8,960 8,960 8,960Community Building MaintenanceTotal for
Community Development and Support
PR-3897 Community Capacity Building Waterwise Kitchen Garden Stage 2
12,566 12,000 16,858 16,858 16,858% Complete 75
Project carried forward from 2015/16.
PR-4260 Install fencing and seating at Bunbury Community Garden 4,425 4,425% Complete 0
Grant funding for the Bunbury Community Garden formally known as the Withers Waterwise Kitchen Garden to provide upgrades to address safety issues and make it more user friendly.
12,566 12,000 16,858 16,858 21,283 4,425Community Development and SupportTotal for
Page 4 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Community Funding Coordination
PR-3822 Provide funding for a "Place-making" Funding Round 2016/17
13,458 10,000 20,000 20,000 20,000% Complete 50
PR-3825 Provide funding for an "Arts and Culture" Funding Round 2016/17
17,000 10,000 20,000 20,000 20,000% Complete 90
PR-3838 Support King Cottage Museum 2016/17 31,544 31,544 31,544 31,544 31,544% Complete 100
PR-3842 Support Bunbury City Band 2016/17 6,150 6,150 6,150% Complete 90
PR-3846 Support Bunbury Regional Entertainment Centre (BREC) - operating subsidy 2016/17
PR-3850 Support Stirling Street Arts Centre (SSAC) - operating subsidy 2016/17
66,625 66,625 66,625 66,625 66,625% Complete 100
PR-3856 Support Anzac Day Working Group 2016/17 4,579 4,579 4,579 4,579 4,579% Complete 100
PR-3862 Provide funding for a "Community Grants" Funding Round 2016/17
62,630 65,000 80,000 80,000 80,000% Complete 80
PR-4137 Provide support to Youth Care (School Chaplaincy program)
10,000 10,000 10,000% Complete 90
PR-4157 Provide funding for a "Minor Community Grants" Funding Round 2016/17
3,400 7,500 25,000 25,000 25,000% Complete 10
Page 5 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Community Funding Coordination
Council to consider allocating $50,000 to support the Koombana Sailing Club's CSRFF application to refurbish the male toilets and change room facilities as part of the October 2016 Budget Review. Council Decision 280/16 dated 9 August 2016.
392,886 388,898 651,198 651,198 701,198 50,000Community Funding CoordinationTotal for
Community Seniors Support
PR-3292 Conduct Grandfamilies Fun Day 2016/17 6,000 6,000 6,000% Complete 0
PR-3891 Age Friendly Communities Strategic Plan - City of Bunbury & Shires of Harvey & Dardanup
8,022 8,022 8,022 8,022% Complete 75
Project carried forward from 2015/16.
8,022 14,022 14,022 14,022Community Seniors SupportTotal for
Corporate Plant and Vehicle Disposal
Disposal value of corporate plant 31,250 31,250 31,250% Complete 0
Disposal value of corporate vehicles 128,619 128,619 128,619% Complete 0
159,869 159,869 159,869Corporate Plant and Vehicle DisposalTotal for
Page 6 of 21
PR-4262 Support Koombana Bay Sailing Club CSRFF application to refurbish male toilets and change room facilities
50,000 50,000% Complete 0
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Corporate Research and Policy Development
PR-3877 Management of funds for the Bunbury Marines Facilities: Engineering, Environmental and Planning Studies
460 919,753 919,753 928,659 8,906% Complete 10
Interest has been earned on grant funds received. Project expenditure has been increased to match interest accordingly.
460 919,753 919,753 928,659 8,906Corporate Research and Policy DevelopmentTotal for
Corporate Revenue
PR-3167 Undertake 2017 GRV Property revaluation in accordance with legislation
375,000 375,000 375,000% Complete 0
Landgate valuation report is expected in May 2017.
375,000 375,000 375,000Corporate RevenueTotal for
Corporate Training and Employee Development
PR-4257 Undertake Equal Employment Opportunity Training 15,000 15,000% Complete 0
The City is required to provide organisational wide training on Equal Employment Opportunity and disability understanding. The City has successfully applied for a Lighthouse Grant from the Department of Local Government for $10,000. The remaining $5,000 will be funded from Administer Corporate Training Programs.
15,000 15,000Corporate Training and Employee DevelopmentTotal for
As per Council Decision 281/16 dated 9 August 2016, a budget of $10,000 to be allocated in 2016/17, subject to matching income. The MARCIA Forum was delivered on 22 August 2016. Over 150 community members, service providers and agencies attended the successful event at the Bunbury Regional Entertainment Centre. The MARCIA forum was delivered for $5,115.
11,617 9,597 22,597 22,597 27,712 5,115Disability Access and Inclusion SupportTotal for
Page 8 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Engineering Advice, Investigations, Survey and Des
PR-4265 Pelican Point Grand Canals Maintenance Dredging Report 32,000 32,000% Complete 0
It has been identified that the City requires to appoint a consultant to complete a dredging report on the Grand Canals, Pelican Point. This report will cover the need for dredging, technical information, alternatives and environmental impacts. This project will be funded from the Canal Management Reserve.
32,000 32,000Engineering Advice, Investigations, Survey and DesTotal for
Festival and Event Development and Support
PR-3809 Provide funding for an "Events Grants" Funding Round 2016/17
PR-4141 Provide funding for an "Iconic Event" 2016/17 100,000 100,000 100,000% Complete 0
PR-4263 Conduct Victoria Street Trial Periodic Closures 11,000 11,000% Complete 0
On Sunday 4 December 2016 there will be a Victoria Street Artisan Fayre featuring high-quality artisan markets in the lead-up to Christmas, and on Saturday 4 February 2017 the Bunbury Fringe Festival will be the centrepiece for the entertainment. This project is to fund the City's contribution to the two closure events being traffic management staff, event staff, security, lighting and generators, staging and production equipment, and marketing.
24,500 45,000 350,000 350,000 361,000 11,000Festival and Event Development and SupportTotal for
Page 9 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
PR-3722 Prepare a Conservation Plan for the Stirling Street Arts Centre
6,732 6,732 6,732 -6,732% Complete 100
Project carried forward from 2015/16. This has been able to be completed with no additional expenditure required.
6,732 6,732 6,732 -6,732Heritage ConservationTotal for
International Relationships
PR-3866 Conduct 25-year celebrations for the Bunbury-Setagaya Sister City Relationship
20,000 20,000 20,000% Complete 0
PR-4151 Support Jiaxing Sister City Visit 2016/17 10,000 10,000 10,000% Complete 0
Funding of the Biennial Photographic Competition with Setagaya as part of the Bunbury-Setagaya sister city relationship.
30,000 30,000 36,000 6,000International RelationshipsTotal for
Page 10 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Land Acquistions and Rationalisations
Disposal value of land 931,938 931,938 25,500 -906,438% Complete 0
The disposal value of land is an accounting book entry only (non-cash) to record the profit or loss on the disposal of assets. As it is proposed in this budget review to reduce income on land sales, the corresponding value of land disposed is also required to be adjusted.
PR-4256 Obtain legal advise for sale and development of Lot 5 Wellington Street, Bunbury
20,000 20,000% Complete 0
Legal expenditure will be incurred as part of negotiating the sale of land. This will be reimbursed under the contract if the sale proceeds.
931,938 931,938 45,500 -886,438Land Acquistions and RationalisationsTotal for
Land Administration
PR-3581 Investigate proposed amalgamation and subsequent disposal of Lots 492, 5002 and a portion of Lot 50 Withers Crescent
8,000 8,000 8,000% Complete 5
Project carried forward from 2015/16.
8,000 8,000 8,000Land AdministrationTotal for
Library Operations
PR-4016 Implement mobile printing from devices 4,500 4,500 4,500% Complete 10
2,339 12,000 12,000 12,000Open Space Asset MaintenanceTotal for
Property Contract and Agreement Administration
PR-4146 Development of Public Land (as per Council Policy) 50,000 50,000 50,000% Complete 0
50,000 50,000 50,000Property Contract and Agreement AdministrationTotal for
Page 12 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Public Health
PR-1578 Develop and implement a public health plan 600 25,000 25,000 25,000% Complete 40
Project carried forward from 2015/16.
PR-2536 Seek additional financial resources to rewrite and gazette health related local laws under the local government act
8,000 8,000 8,000% Complete 0
Project carried forward from 2015/16.
600 33,000 33,000 33,000Public HealthTotal for
Page 13 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Relationship and Partnership Development and Suppo
PR-3178 Provide financial support to the St John of God Foundation Coronary and Cancer unit
25,000 25,000 25,000% Complete 0
PR-3875 Support Regional Cities Alliance 2016/17 to 2020/21 44,000 44,000% Complete 60
The Council has been involved with WA Regional Cities Alliance (WARCA) for several years and a decision was made to finalise the relationship between WARCA and UWA. As the funding arrangements are undertaken in arrears, there is a need to allocate funding to finalise the work already completed through the research agreement. A further report will be provided to Council as part of the budget development process for 2017/18 outlining future options in relation to WARCA.
PR-4116 Provide disaster assistance 20,000 20,000 20,000% Complete 0
PR-4131 Provide financial contribution to the Bunbury Hotel Investment analysis
16,500 16,500 54,607 54,607 54,607% Complete 25
Project carried forward from 2015/16.
16,500 16,500 99,607 99,607 143,607 44,000Relationship and Partnership Development and SuppoTotal for
Page 14 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Special Projects
PR-3888 Closure of Laneways in Withers - Survey and legal costs 29,411 29,411 29,411 29,411% Complete 50
Project carried forward from 2015/16. Letters have been sent to properties owners adjoining laneways with the option to purchase and amalgamate into their property or not to purchase. Council Decision 25/16 to proceed with formal closure, documentation sent to Department of Lands to commence formal closure process.
PR-4168 Prepare detailed concept design to improve the Leschenault Inlet (Precinct 2 - Koombana South)
15,017 15,000 23,567 23,567 23,567% Complete 99
Project carried forward from 2015/16.
PR-4253 - Support Roadwise "M8 the call can W8" campaign 2016/17
30,641 30,641% Complete 10
Road safety campaign instigated by the Bunbury Roadwise Committee.
15,017 44,411 52,978 52,978 83,619 30,641Special ProjectsTotal for
Sport and Leisure Building Maintenance
PR-1683 Paint South West Sports Centre (SWSC) 16,364 16,364 18,000 18,000 18,000% Complete 40
16,364 16,364 18,000 18,000 18,000Sport and Leisure Building MaintenanceTotal for
Page 15 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Sport and Recreation Development and Planning
PR-3032 Support South West Academy of Sport (SWAS) 2016/17 5,220 5,220 5,220% Complete 0
PR-3801 Construct dirt jump line runs for the black and double-black jump lines (St Mark's Urban Mountain Bike Park Master Plan - Phase 1B)
25,000 25,000 25,000% Complete 10
Project carried forward from 2015/16.
PR-3803 Design pump track area and design 'Tiny Tot' and 'Little' track (St Mark's Urban Mountain Bike Park Master Plan - Phase 2)
25,000 25,000 25,000% Complete 10
PR-3883 Deliver South West Sports Hall of Fame Project 5,000 5,000 5,000% Complete 10
Project carried forward from 2015/16.
PR-4133 Support Club Development Program for 2016/17 23,640 25,918 78,505 78,505 78,505% Complete 30
PR-4144 Support Bunbury Surf Life Saving Club CSRFF application to upgrade ablution facilities
22,907 22,907 22,907% Complete 0
PR-4153 Deliver Department of Sport and Recreation KidSport Initiative
23,635 12,500 65,000 65,000 65,000% Complete 25
47,275 38,418 226,632 226,632 226,632Sport and Recreation Development and PlanningTotal for
Page 16 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Period Ending October 2016YTD
Actual
Original
Budget
Revised
Budget
End Year
Forecast
Forecast
Change
YTD
Budget
Friday, 11 November, 2016
Sport and Recreation Facility Operations
PR-4126 Deliver 'Aqua Walking' pilot program 3,110 3,110 3,110 3,110% Complete 50
Project carried forward from 2015/16.
PR-4134 Renew and revitalise South West Sports Centre (Community Pool Revitalisation Program CPRP) 2016
6,187 16,730 16,730 16,730 16,730% Complete 80
Project carried forward from 2015/16.
PR-4155 Funding to support the South West Sports Centre (SWSC) vacation care program
6,904 3,375 14,823 14,823 14,823% Complete 50
Project carried forward from 2015/16.
PR-4164 Renew and revitalise South West Sports Centre (Community Pool Revitalisation Program CPRP) 2017
33,000 33,000 -33,000% Complete 0
Project was originally budgeted as operating with $33,000 grant and expenditure. We have since been advised that the successful grant was $32,000 and the funds will be used for amenities upgrade, a new project has been created PR-4295.
13,091 23,215 67,663 67,663 34,663 -33,000Sport and Recreation Facility OperationsTotal for
Page 17 of 21
City of Bunbury
Operating Projects Expenditure Summary with Comments
Staff Training - Public Administration Conference Facebook Advertising - VariousFacebook Advertising - VariousFacebook Advertising - Junior Sports StarSponsorship of World Vision ChildMeeting Expenses - Bunbury Chamber Commerce Staff Accomodation - Premier and Minister Meetings Institute of Public Administratin Membership Renewal - CEO Staff Accomodation - Premier and Minister Meetings Staff Training - ParkingStaff Training - ParkingFuel - Temp Vehicle
4406.5568-0106/10/2016 1,169.67City of Bunbury - Asst to CEO - Credit Card
INV SEP16 35.00Catering - Agenda Briefing Meeting INV SEP16 30.10Facebook Advertising INV SEP16 30.00Catering - Potential Development Bus Tour INV SEP16 35.00Catering - Agenda Briefing Meeting INV SEP16 60.03Facebook Advertising INV SEP16 65.94Kitchen Supplies - Admin Building INV SEP16 35.00Catering - Ordinary Council Meeting INV SEP16 223.80Staff Recognition - Gift Cards INV SEP16 24.95Book - One Small Step for Leaders INV SEP16 35.00Catering - Potential Development Bus Tour INV SEP16 240.00Trademark Registration INV SEP16 30.00Catering - Wellington Group of Councils Meeting INV SEP16 4.75Supplies - Council Chambers and Meeting Rooms INV SEP16 243.73Facebook Advertising INV SEP16 76.37Facebook Advertising
4406.5569-0106/10/2016 189.50City of Bunbury - Asst to Mayor - Credit Card
5
Schedule of Accounts Paid
for Period
1/10/2016 to 31/10/2016
City of Bunbury
COB Municipal Account
Reference
No. Amount DescriptionPayeeDate
INV SEP16 35.00Catering - Ordinary Council Meeting INV SEP16 154.50Catering - Outgoing Goodwill Tour
12.004406.5570-0106/10/2016 City of Bunbury - Parking Meter Test - Credit Card
INV SEP16 12.00Parking Meter Testing 3,173.024406.6129-0106/10/2016 City of Bunbury - Manager Human Resources - Corporate Credit Card
Australian Institute of Building Surveyors Tour Australian Road Research Board Group - Annual SubscriptionTV and Wall Mount - HRConsumables - CEO BreakfastConsumables - CEO BreakfastThumb Drive - CEO BreakfastConsumables - CEO BreakfastStaff Training - First AidStaff Training - First AidStaff Training - HR ConferencePadlock for Archive Sea ContainerStaff Accomodation - Waste and Recycle Conference Staff Training - Putting Urban Forest on the Map Staff Training - Mental Health First Aid
4408.419-01 11/10/2016 350,446.33City of Bunbury
INV 071016 350,446.33Advance Account Recoup4414.419-01 12/10/2016 112,937.77City of Bunbury
INV 111016 112,937.77Advance Account Recoup 1,756.934416.5568-01 12/10/2016 City of Bunbury - Asst to CEO - Credit Card
INV SEP16 975.47IT Manager Recruitment Expenses for Travel INV SEP16 240.00TradeMark - Geographe Logo INV SEP16 25.45Staff Amenities INV SEP16 35.00Catering - Council Agenda Briefing INV SEP16 481.01Facebook Advertising - Unleashed and SWSC
4423.419-01 18/10/2016 326,424.56City of Bunbury
INV 171016 326,424.56Advance Account Recoup4424.136-01 21/10/2016 174,976.00 Australian Taxation Office
INV PY01-08-Australia 174,976.00Payroll Deduction4427.419-01 25/10/2016 216,276.52City of Bunbury
INV 211016 216,276.52Advance Account Recoup 0.004429.4490-01 26/10/2016 Fines Enforcement Registry
N/A N/A 0.00Cancelled
6
Schedule of Accounts Paid
for Period
1/10/2016 to 31/10/2016
City of Bunbury
COB Municipal Account
ReferenceAmount Description
15,486.00
No. Date Payee
4431.4490-01 26/10/2016 Fines Enforcement Registry
INV 201016 15,486.00Lodge Outstanding Infringements - October 2016 156,709.134437.1792-01 31/10/2016 WA Local Government Superannuation Plan
INV October 150,854.63 INV October 5,854.50
Superannuation-October Superannuation-October
768.244437.2606-01 31/10/2016 ING Life OneAnswer Personal Super
INV October 768.24Superannuation-October 180.654437.2644-01 31/10/2016 AXA Superannuation
INV October 180.65Superannuation-October 10,008.224437.2759-01 31/10/2016 Australian Super
INV October 8,607.47 INV October 1,400.75
Superannuation-October Superannuation-October
1,901.144437.2795-01 31/10/2016 UniSuper Limited
INV October 1,901.14Superannuation-October 3,231.764437.2796-01 31/10/2016 AMP Superannuation Ltd
INV October 1,802.02 INV October 1,337.09 INV October 92.65
Payroll Transfers05/10/2016 12:00:00AMCOB Municipal Account 682,387.97 PY01-07
19/10/2016 12:00:00AMCOB Municipal Account 625,338.45 Payroll - P/E 5/10/2016
Payroll - P/E 19/10/2016 PY01-08
$1,307,726.42Total: Payroll Transfers
Total: $5,310,320.45COB Municipal Account
9
Schedule of Accounts Paid
for Period
1/10/2016 to 31/10/2016
City of Bunbury
CERTIFICATION BY MANAGER FINANCE
This Schedule of Accounts Paid is submitted to the Council Meeting on 29 November 2016 in accordance with the Local Government (Financial Management) Regulations 1996 Section 13. These accounts have been checked and are fully supported by vouchers and invoices, which have been duly certified as to the receipt of goods and the rendition of services and as to prices, computations and costings.
D. RANSOM
MANAGER FINANCE
10
Schedule of Accounts Paid
for Period
1/10/2016 to 31/10/2016
City of Bunbury
COB Advance Account
Reference
No. Amount DescriptionPayeeDate
Cheque Payments 00153538 06/10/2016 Child and Parent Centre - Carey Park 211.26
INV 211.26AR4437.07 Refund of Overpayment00153539 06/10/2016 Harcourts Bunbury 400.49
INV RJ17.104.4 400.49Rates Refund00153540 06/10/2016 Nathan Peter Dawson 1,205.56
INV RJ17.104.5 1,205.56Rates Refund00153541 06/10/2016 Daniel Mahon 732.20
INV 300916 732.20Pro-rata Refund for 12 Month Full Membership00153542 06/10/2016 Audrey Mahon 151.00
INV 300916 151.00Pro-Rata Refund for 12 Month Full Membership00153543 06/10/2016 Planning Solutions Australia Pty Ltd 2,424.88
INV 290916 2,424.88Refund of Scheme Amendment Fee00153544 06/10/2016 2,100.00Australian Institute of Building Surveyors
INV 2995 2,100.00Staff Training - WA Chapter Conference00153545 06/10/2016 732.84 Department of Social Services
INV 9472A 4,224.00TV Support - Marlston Hill INV 9476A 66.00TV Support - Marlston Hill INV 9477A 1,440.00TV Support - Marlston Hill INV 612 7,385.40Install Data Services - SES Facility INV 614 20,320.30Install Phone Systems - SES Facility
15
Schedule of Accounts Paid
for Period
1/10/2016 to 31/10/2016
City of Bunbury
COB Advance Account
Reference
No. Amount DescriptionPayeeDate
4389.1830-0104/10/2016 345.68 West Australian Newspapers Limited
INV 6725 100.00Wreath - Ron Middleton4421.1037-0118/10/2016 1,287.00Kwik Kerb Bunbury
INV 154858 396.00Clean up paths - Back Beach INV 154857 891.00Clean up beach - Back Beach
4421.1156-0118/10/2016 404.20 Truck Centre (WA) Pty Ltd
INV 7040531-000003 404.20Vehicle Repairs - BY7534421.1289-0118/10/2016 103.49 On Hold Magic
INV 137610 103.49Monthly Subscription - October 20164421.14-01 18/10/2016 498.47 Activ Foundation Incorporated
INV 0223031 498.47Dog and Cat Registration Letters4421.1490-0118/10/2016 2,782.74 Bunbury State Emergency Service Unit
INV 03/2016 2,782.74New SES Facility Kitchen Fit-Out4421.1528-0118/10/2016 773.45 Slee Anderson and Pidgeon
INV 773.45CH:PJR:NRH:16330 Legal - Redevelopment clause- Koombana Kiosk Lease4421.1579-0118/10/2016 19,523.90Stirling Street Art Centre
INV 4592 7,663.70Arts Development Grant Funding 2016/2017 INV 4584 7,240.20Community Assistance and Arts Funding 2016/2017 INV 4591 4,620.00Events Grant Funding - 2016/2017
INV 20161212 5,282.92Prosand - Health4430.1310-0131/10/2016 1,320.00 Parks & Leisure Australia
INV 8294 220.00Staff Training - Developing a Public Open Space INV 8295 220.00Staff Training - Public Health Plans Seminar INV 8312 440.00Staff Training - Integrating Sport and Recreation INV 8366 440.00Staff Training - Developing a Public Open Space
4430.1395-0131/10/2016 188.25 Quality Publishing Australia
Photocopier Meter Readings Photocopier Meter Readings Photocopier Meter Readings Photocopier Meter Readings Photocopier Meter Readings Photocopier Meter Readings Photocopier Meter Readings Photocopier Meter Readings
INV AB00016506 299.82Photocopier Meter Readings INV AB00016606 89.14Photocopier Meter Readings INV AB00016458 541.19Photocopier Meter Readings INV AB00016509 885.74Photocopier Meter Readings INV AB0016503 2,069.43Photocopier Meter Readings INV AB00016510 384.50Photocopier Meter Readings INV AB00016980 99.89Photocopier Meter Readings INV AB00016508 57.14Photocopier Meter Readings
4430.1541-0131/10/2016 490.00Southern Lock and Security
INV BYBX3329 372.57Staff PPE - Parks and Gardens INV BYBX2676 164.12Staff PPE - Parks and Gardens INV PEBX2687 93.56Staff PPE - Parks and Gardens INV BYBW2674 110.00Staff PPE - Parks and Gardens INV PEBX0972 237.60Staff PPE - Parks and Gardens INV PHBX0955 99.00Staff PPE - Parks and Gardens INV GNBX0945 39.60Staff PPE - Parks and Gardens INV PEBY1587 19.80Staff PPE - Parks and Gardens
INV 27441 57.75Oil Waste Disposal - Minor Plant INV 27443 118.25Oil Disposal - September 2016
4430.271-01 31/10/2016 36,799.99 Bunbury Harvey Regional Council
INV 41304 330.00Hook Bin Hire - September 2016 INV 41426 71.52Waste Services Refuse Disposal - September 2016 INV 41449 132.96Banksia Road Organics Disposal - September 2016 INV 41424 194.03Refuse Disposal - September 2016 INV 41303 561.00Hook Bin Hire - September 2016 INV 41425 35,510.48Waste Disposal - September 2016
4430.2724-0131/10/2016 236.85PC Machinery Pty Ltd
INV 20861 236.85Vehicle Parts - Various4430.275-01 31/10/2016 330.96 Bunbury Holden
INV 9711561 256.98SWSC Bin Rental - September 20164430.460-01 31/10/2016 1,457.50 Coates Hire Operations Pty Ltd
INV 15292712 632.50Equipment Hire - SWSC INV 15329907 363.00Portable Site Office - September 2016 INV 15329899 363.00Portable Crib Room Hire - September 2016 INV 15375439 99.00Equipment Hire - Frankel Street
258.034430.4804-01 31/10/2016 Hema Maps Pty Ltd
INV 1850 258.03Merchandise - BVIC 1,006.724430.4878-01 31/10/2016 Fire & Safety WA
INV 28726 1,006.72Equipment - BVBFB4430.496-01 31/10/2016 0.00 Country Framers
This Schedule of Accounts Paid is submitted to the Council Meeting on 29 November 2016 in accordance with the Local Government (Financial Management) Regulations 1996 Section 13. These accounts have been checked and are fully supported by vouchers and invoices, which have been duly certified as to the receipt of goods and the rendition of services and as to prices, computations and costings.
D. RANSOM
MANAGER FINANCE
59
Schedule of Accounts Paid
for Period
1/10/2016 to 31/10/2016
City of Bunbury
COB Trust Account
Reference
No. Amount DescriptionPayeeDate
Cheque Payments 00010328 26/10/2016 City of Bunbury 825.95
INV BRAGOCT16 825.95Art Sale Commission Aug/Sep/Oct00010329 26/10/2016 Tahlia Bennell 201.00
INV 2205483 53.60Sale of Artwork - Untitled #6100010353 31/10/2016 City of Bunbury 579.75
INV OCT 2016 579.75CTF Levy Commission - October 201600010354 31/10/2016 Department of Commerce, Building Co 9,129.80
INV OCTOBER 2016 9,129.80BSL Levies collected - October 201600010355 31/10/2016 Construction Training Fund 6,008.90
INV OCTOBER 2016 6,008.90CTF Levies collected October 2016 - 23 Forms$19,058.45Total: Cheque Payments
Total: $19,058.45COB Trust Account
CERTIFICATION BY MANAGER FINANCE
This Schedule of Accounts Paid is submitted to the Council Meeting on 29 November 2016 in accordance with the Local Government (Financial Management) Regulations 1996 Section 13. These accounts have been checked and are fully supported by vouchers and invoices, which have been duly certified as to the receipt of goods and the rendition of services and as to prices, computations and costings.
D. RANSOM
MANAGER FINANCE61
Schedule of Accounts Paid
for Period
1/10/2016 to 31/10/2016
City of Bunbury
BVIC Trust Account
Reference
No. Amount DescriptionPayeeDate
Cheque Payments 00009315 07/10/2016 695.00City of Bunbury
INV 5512850/5354445 6.25Herbies Shuttles / Bamkin INV 5553189/5397384 246.40Comfort Inn Admiral / Margan INV 5571594/5417000 30.36Clifton & Grittleton Lodge / Midgley & Bartley INV 5571587/5418221 48.75Rose Hotel / Kerr INV 5573301/5419048 22.25Bunbury Motel / Lloyd INV 5575376/5421286 25.81Clifton & Grittleton Lodge / Parker INV 5577425/5423408 13.09Comfort Inn Admiral / Sweeney INV 5581135/5427337 15.18Clifton & Grittleton Lodge / Kelly INV 5581135/5427338 12.90Clifton & Grittleton Lodge / Kelly INV 5584026/5430394 12.90Clifton & Grittleton Lodge / McKim INV 5586257/5432724 16.25Ocean Side Apartments / Webby INV 5586291/5432760 12.90Clifton & Grittleton Lodge / Rich INV 5588026/5434612 14.85Comfort Inn Admiral / McKinnon INV 5588751/5435355 8.13Herbies Shuttles / Wallace INV 5590454/5437145 15.00Welcome Inn Motel / Refei INV 5591059/5437840 15.84Lord Forrest Hotel / Lim INV 5592132/5438937 27.25Bunbury Motel / Evans INV 5592923/5439729 13.75Gecko Bike Hire / Devata INV 5592923/5439731 13.75Gecko Bike Hire / Devata INV 5592923/5439732 13.75Gecko Bike Hire / Devata INV 5592923/5439733 13.75Gecko Bike Hire / Devata INV 5596951/5444044 14.08Discovery Koombana Bay / Brady INV 5599491/5446797 13.75Ocean Drive Motel / Venkataiya INV 5599824/5447134 11.88Australind Tourist Park / Nolan INV 5601811/5449251 16.25Rose Hotel / Woodcock INV 5603367/5450868 5.50Gecko Bike Hire / Thomas INV 5603367/5450869 5.50Gecko Bike Hire / Thomas INV 5603981/5451479 15.18Clifton & Grittleton Lodge / Grumley INV 5604427/5451925 13.75Welcome Inn Motel / Guard
00009316 10/10/2016 1,568.66City of Bunbury
INV 300916 1,545.14Commission 01/09/16 to 30/09/16 INV 300916 23.52Correction to Commission for SW Transit Group
00009317 10/10/2016 Mary Orr 156.80
INV 1145970 156.80Refund of South West Coach Lines Ticket00009320 17/10/2016 779.52City of Bunbury
This Schedule of Accounts Paid is submitted to the Council Meeting on 29 November 2016 in accordance with the Local Government (Financial Management) Regulations 1996 Section 13. These accounts have been checked and are fully supported by vouchers and invoices, which have been duly certified as to the receipt of goods and the rendition of services and as to prices, computations and costings.
D. RANSOM
MANAGER FINANCE
71
Schedule of Accounts Paid
for Period
1/10/2016 to 31/10/2016
City of Bunbury
BHRC Municipal Account
Reference
No. Amount DescriptionPayeeDate
4415.271-01 12/10/2016 46,485.90 Bunbury Harvey Regional Council
INV 111016 46,485.90Advance Account Recoup4418.136-01 21/10/2016 17,659.00 Australian Taxation Office
INV 060916 11,325.00 INV 200916 11,041.00
PAYG Tax for BHRC Staff for F/E 06/09/16 PAYG Tax for BHRC Staff - F/E 20/09/16Credit Note to Offset PAYG with Fuel Tax
4419.136-01 21/10/2016 2,176.00 Australian Taxation Office
38,885.27EFT Payments 4393.136-01 21/10/2016 Australian Taxation Office
Corporate Credit CardCorpcard 26/10/2016 Commonwealth Bank
INV 201016 120.40 INV 251016 43.50
Trafalgars - Farewell Lunch Coles - Office Supplies
163.90
Total: $748,889.73BHRC Municipal Account
CERTIFICATION BY MANAGER FINANCE
This Schedule of Accounts Paid is submitted to the Council Meeting on 29 November 2016 in accordance with the Local Government (Financial Management) Regulations 1996 Section 13. These accounts have been checked and are fully supported by vouchers and invoices, which have been duly certified as to the receipt of goods and the rendition of services and as to prices, computations and costings.
D. RANSOM
MANAGER FINANCE
72
Schedule of Accounts Paid
for Period
1/10/2016 to 31/10/2016
City of Bunbury
BHRC Advance Account
Reference
No. Amount DescriptionPayeeDate
Cheque Payments 00014069 06/10/2016 581.32 Department of Social Services
INV 581.32PY01-06 Payroll Deduction00014070 11/10/2016 308.00 Bill Adams
INV 300916 308.00Councillor Meeting Attendance Fees - July to Sep 1600014071 11/10/2016 132.00 John Sabourne
INV 300916 132.00Councillor Meeting Attendance Fees - July to Sep 1600014072 11/10/2016 593.15 Telstra Corporation Ltd
INV 1193482051 593.15Mobile and Internet Charges - 07/9/16 to 06/10/1600014073 13/10/2016 0.00 Bankwest
00014074 13/10/2016 508,500.00 Bunbury Harvey Regional Council