Agenda of Audit and Risk Committee - Wednesday, 2 March 2022

CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 2 March 2022

TO: THE MAYOR AND COUNCILLORS

NOTICE is given that a meeting of the Audit and Risk Committee will be held in the Committee Room, Administration Building, Southern Drive, Busselton on Wednesday, 2 March 2022, commencing at 9.00am.

The attendance of Committee Members is respectfully requested.

DISCLAIMER

Statements or decisions made at Council meetings or briefings should not be relied on (or acted upon) by an applicant or any other person or entity until subsequent written notification has been given by or received from the City of Busselton. Without derogating from the generality of the above, approval of planning applications and building permits and acceptance of tenders and quotations will only become effective once written notice to that effect has been given to relevant parties. The City of Busselton expressly disclaims any liability for any loss arising from any person or body relying on any statement or decision made during a Council meeting or briefing.

Mike Archer

CHIEF EXECUTIVE OFFICER

24 February 2022

Audit and Risk Committee 8 2 March 2022

6. Reports

6.1 2021 ANNUAL COMPLIANCE AUDIT RETURN

STRATEGIC THEME	LEADERSHIP - A Council that connects with the community and is accountable in its decision making.
STRATEGIC PRIORITY	4.2 Deliver governance systems that facilitate open, ethical and transparent decision making.
SUBJECT INDEX	Compliance Audit Return
BUSINESS UNIT	Governance Services
REPORTING OFFICER	Governance Coordinator - Emma Heys
AUTHORISING OFFICER	Director Finance and Corporate Services - Tony Nottle
NATURE OF DECISION	Legislative: adoption of “legislative documents” such as local laws, local planning schemes and local planning policies
VOTING REQUIREMENT	Absolute Majority
ATTACHMENTS	Attachment a 2021 Compliance Audit Return - City of Busselton Responses ⇩

OFFICER RECOMMENDATION

That the Council, having received the 2021 Compliance Audit Return (Attachment A),

1. adopt the 2021 Compliance Audit Return; and

2. authorises the Mayor and Chief Executive Officer to sign in joint the Certificate.

EXECUTIVE SUMMARY

The Compliance Audit Return (CAR) is a statutory reporting tool that evaluates the City’s compliance with targeted sections of the Local Government Act 1995 (the Act) during the period 1 January 2021 to 31 December 2021.

The City has completed the 2021 CAR and it is included in this report (Attachment A) for the Audit & Risk Committee’s consideration. The 2021 CAR is recommended for adoption by Council, after which it will be lodged, as required, with the Department of Local Government, Sport and Cultural Industries (the Department) by 31 March 2022.

BACKGROUND

Between 1 January 2022 and 31 March 2022, local governments are required to carry out an audit of compliance covering the period 1 January 2021 to 31 December 2021. The City’s responses to the 2021 CAR are to be reviewed by the Audit & Risk Committee and then recommended to Council for adoption. The certified CAR, together with an extract of the Council Minutes of the meeting in which the 2021 CAR is adopted, will be lodged with the Department via the online SmartHub portal by 31 March 2022.

OFFICER COMMENT

In completing the 2021 CAR, relevant officers have undertaken an audit of the City’s activities, practices and procedures in line with the Act and associated Regulations.

The Audit results are summarised in the Table below:

Compliance Area	Number of Questions	Compliance
Commercial Enterprises by Local Government	5	100%
Delegation of Power/Duty	13	100%
Disclosures of Interest	25	99%
Disposal of Property	2	100%
Elections	3	100%
Finance	7	100%
Integrated Planning and Reporting	3	100%
Local Government Employees	6	100%
Official Conduct	3	100%
Tenders for Providing Goods and Services	22	100%
Optional Questions	9	100%

Disclosures of Interest

Due to an employee transitioning between fixed and permanent roles within the same business unit, an administrative oversight occurred and the employee was not provided with a Primary Return within the required time. Once this error was identified, the Primary Return was provided to the employee, who completed it immediately. This is therefore not a breach by the employee, but an administrative oversight.

The administrative process for identifying employees who are required to submit a Primary Return has now been strengthened, with a monthly audit of the appointments notifications against the delegations register and Primary/Annual Returns register.

Overall, the 2021 CAR represents a high level of compliance by the City.

Statutory Environment

Section 7.13 of the Local Government Act 1995 provides for the making of Regulations in regards to Audits.

Regulation 13 of the Local Government (Audit) Regulations 1996 prescribes the statutory requirements for the compliance audit.

Regulations 14 and 15 state the following:

14. Compliance audits by local governments

(1) A local government is to carry out a compliance audit for the period

1 January to 31 December in each year.

(2) After carrying out a compliance audit the local government is to prepare a compliance audit return in a form approved by the Minister.

(3A) The local government’s audit committee is to review the compliance audit return and is to report to the council the results of that review.

(3) After the audit committee has reported to the council under subregulation (3A), the compliance audit return is to be –

(a) presented to council at a meeting of the council; and

(b) adopted by council; and

(c) recorded in the minutes of the meeting at which it is adopted.

15. Certified copy of compliance audit return and other documents to be given to Departmental CEO

(1) After the compliance audit return has been presented to the council in accordance with regulation 14(3) a certified copy of the return together with

(a) a copy of the relevant section of the minutes referred to in regulation 14(3)(c); and

(b) any additional information explaining or qualifying the compliance audit,

Is to be submitted to the Departmental CEO by 31 March next following the period to which the return relates.

(2) In this regulation – certified in relation to a compliance audit return means signed by –

(a) the mayor or president; and

(b) the CEO.

Relevant Plans and Policies

There are no relevant plans or policies to consider in relation to this matter.

Financial Implications

There are no financial implications associated with the officer recommendation.

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

Options

As an alternative to the proposed recommendation the Council may choose to request further information from officers prior to adopting the 2021 CAR. It is however a statutory requirement that the 2021 CAR is endorsed by Council and submitted to the Department prior to 31 March 2022.

CONCLUSION

It is recommended that the Council adopts the 2021 CAR for submission to the Department prior to 31 March 2022.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The 2021 CAR will be lodged with the Department prior to 31 March 2022.