Please note:  These minutes are yet to be confirmed as a true record of proceedings

CITY OF BUSSELTON

MINUTES OF THE Audit and Risk Committee MEETING HELD ON 2 March 2022

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening, acknowledgement of country and Announcement of Visitors. 2

2....... Attendance. 2

3....... Public Question Time. 3

4....... Disclosure Of Interests. 4

5....... Confirmation Of Minutes. 4

5.1          Minutes of the Audit and Risk Committee Meeting held 25 January 2022. 4

6....... Reports. 5

6.1          2021 ANNUAL COMPLIANCE AUDIT RETURN.. 5

7....... General Discussion Items. 28

8....... Next Meeting Date. 28

9....... Closure. 29

 


Audit and Risk Committee                                                3                                                                       2 March 2022

MINUTES

 

MINUTES OF THE Audit and RIsk Committee HELD IN THE Committee Room, Administration Building, Southern Drive, Busselton, ON 2 March 2022 AT 9.00am.

 

1.               Declaration of Opening, acknowledgement of country and Announcement of Visitors

The Presiding Member opened the meeting at 9.03am.

 

The Presiding Member noted this meeting is held on the lands of the Wadandi people and acknowledged them as Traditional Owners, paying respect to their Elders, past and present, and Aboriginal Elders of other communities who may be present.

 

2.               Attendance 

Presiding Member:

 

Members:

 

Cr Paul Carter

 

 

Cr Grant Henley    

Cr Phill Cronin

Cr Anne Ryan

 

Officers:

 

Mr Tony Nottle, Director, Finance and Corporate Services

Mrs Emma Heys, Governance Coordinator
Ms Jo Barrett-Lennard, Governance Officer

 

Apologies:

 

Nil

 

Public:

 

1

 

3.               Public Question Time

                   mr Andrew Macnish

                         Question
What date were the minutes of the Audit and Risk Committee publicised, and what evidence do you have about the accuracy of that?

                         Response
(Mr Tony Nottle, Director Finance and Corporate Services)

                         Officers will check the time/date stamp of the document. We will take that question on notice.

                         Question
In those minutes, three impartiality interests were declared in relation to item 6.1. What assurances can you give the public that the matter received unbiased consideration?

   Response
(Cr Paul Carter, Presiding Member)

   The onus of the declaration falls on the individuals who make the disclosure. The declarations are specifically made so that any potential bias is known.

                         Question
Local Government Operational Guidelines and the Local Government (Rules of Conduct) Regulations 2007 (now preceded by Local Government (Model Code of Conduct) Regulations 2021) state that the nature of the interest must be recorded in the minutes. Do those that declared their interest now wish to provide the nature of their impartiality interests?

   Response
(Mr Tony Nottle, Director Finance and Corporate Services)

   The specifics of the declarations made by both the elected members and the senior officer would potentially release confidential information of which the Committee discussed. Therefore on the public set of minutes, the particular nature of their interest is not disclosed to protect the confidentiality of the matter. The nature of the disclosure will be in the confidential minutes of the meeting.

                         Question
A letter responding to the Audit and Risk Committees reply regarding a complaint was emailed to the City on 17 February 2022, addressed to the Audit and Risk Committee c/- the Presiding Member and Mr Ben Whitehill. Will each of the members present at the Audit and Risk Committee meeting indicate if they have received this recent letter addressed for the committee’s consideration?

                         Response
(Mr Tony Nottle, Director Finance and Corporate Services)

                         The letter received by the City is an official record of the City of Busselton and therefore needs to be treated as such. As the content of the letter contained information that was outside of the Audit and Risk Committee, and Councils, jurisdiction, officers provided an appropriate response to you to advise of the appropriate jurisdiction. This advice was previously provide by the Presiding Member of the Audit and Risk Committee. The Presiding Member was provided with a copy of the letter and the response, for his information.


4.               Disclosure Of Interests

Nil

                    

5.               Confirmation Of Minutes

5.1             Minutes of the Audit and Risk Committee Meeting held 25 January 2022

Committee Decision

AU2203/057           Moved Councillor G Henley, seconded Councillor A Ryan

That the Minutes of the Audit and Risk Committee Meeting held 25 January 2022 be confirmed as a true and correct record.

CARRIED 4/0

 


Audit and Risk Committee                                                5                                                                       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  

 

Committee Decision

AU2203/058           Moved Councillor P Cronin, seconded Councillor A Ryan

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.

CARRIED 4/0

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.

 


Audit and Risk Committee

21

2 March 2022

6.1

Attachment a

2021 Compliance Audit Return - City of Busselton Responses

 



















 


Audit and Risk Committee                                                29                                                                     2 March 2022

7.               General Discussion Items

At this time the Presiding Member called on a Committee Member to move a motion to close the meeting to discuss items of a confidential nature.

The motion was moved and carried.

Committee Decision

AU2203/059           Moved Councillor P Cronin, seconded Councillor A Ryan

 

That the meeting be closed to members of the public to discuss this item which is confidential for the reasons as shown.

CARRIED 4/0

 

9:34am    At this time, the meeting was closed to members of the public.

 

At this time the Presiding Member called on a Committee Member to move a motion to re-open the meeting.

The motion was moved and carried.  

Committee Decision

AU2203/060           Moved Councillor P Cronin, seconded Councillor A Ryan

 

That the meeting be re-opened to the members of the public.

CARRIED 9/0

 

9:40am    At this time, the meeting was re-opened to members of the public.

 

8.               Next Meeting Date

TBA

 


9.               Closure

 

The meeting closed at 9:40am

 

THESE MINUTES CONSISTING OF PAGES 1 TO 29 WERE CONFIRMED AS A TRUE AND CORRECT RECORD ON  .

 

DATE:________________      PRESIDING MEMBER:        _________________________