Minutes of Audit and Risk Committee - 13 May 2020 · 2020-05-15 · A rolling Internal Audit...

Unconfirmed Minutes

Electronic Audit and Risk Committee Meeting

13 May 2020

The information contained in these Minutes are made available free to any member of the public.

Subject to copyright restrictions, members of the public may obtain copies of reports, attachments and tabled documents in accordance with the provisions of the Local Government Act 1995.

NB: Plans are generally not permitted to be copied due to copyright restrictions.

AUDIT AND RISK COMMITTEE MEETING UNCONFIRMED MINUTES 13 MAY 2020

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TABLE OF CONTENTS

ITEM SUBJECT PAGE NO

1. DECLARATION OF OPENING ................................................................................................ 1

2. ATTENDANCE ....................................................................................................................... 1

2.1 APOLOGIES .......................................................................................................................... 2

2.2 APPROVED LEAVE OF ABSENCE ........................................................................................... 2

3. DISCLOSURE OF INTERESTS .................................................................................................. 2

3.1 DECLARATIONS OF INTEREST (FINANCIAL) .......................................................................... 2

3.2 DECLARATIONS OF IMPARTIALITY ....................................................................................... 2

4. CONFIRMATION OF MINUTES.............................................................................................. 3

Audit and Risk Committee Meeting held on Wednesday 4 March 2020 ................................ 3

5. REPORTS .............................................................................................................................. 3

5.1 Director Canning Community and Commercial .................................................................... 4

ARC-010-20 Internal Audit Activity Report ...................................................................... 4

ARC-011-20 Status of Outstanding Audit Recommendations ........................................... 9

ARC-012-20 Internal Audit Plan 2020-2021 ................................................................... 12

ARC-013-20 Business Continuity Report ........................................................................ 15

ARC-014-20 City Debt ................................................................................................... 20

6. CONFIDENTIAL MATTERS................................................................................................... 26

7. CLOSURE ............................................................................................................................ 26

UNCONFIRMED MINUTES OF THE AUDIT AND RISK COMMITTEE MEETING 13 MAY 2020

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UNCONFIRMED MINUTES OF ELECTRONIC AUDIT AND RISK COMMITTEE MEETING

HELD IN THE COUNCIL CHAMBERS ON WEDNESDAY, 13 MAY 2020

1. DECLARATION OF OPENING

The Mayor welcomed attendees, declared the meeting open at 5.32pm and stated:

“We acknowledge the Wajuk (Wudjyuk) people, the traditional custodians of the land. We also pay our respects to Elders, both past and present.

Emeetings

On the 26 April 2020, the Commissioner of Police and State Emergency Coordinator issued a Closure and Restriction (Limit the Spread) Directions (No. 2), pursuant to section 71 of the Emergency Management Act 2005, which applies to the state of Western Australia.

The purpose of the Directions is to close certain places and prohibits certain gatherings and activities in order to prevent and control the risks associated with the public health emergency presented by COVID-19, by limiting the spread.

In accordance with this Direction Notice, the City of Canning is unable to conduct its Council and Committee Meetings in the Council Chambers as a public meeting.

Recent amendments to the Administration Regulations allow Council and Committee meetings to be conducted by electronic means during this public health emergency.

In accordance with Regulation 14 D(2), the Mayor has determined to conduct both Agenda Briefings, Council and Committee Meetings via an electronic means. Whilst the current public health emergency caused by COVID-19 is in force, and until revoked by the Mayor, all future Agenda Briefings, Council and Committee Meetings are authorised to be undertaken via video conference.”

2. ATTENDANCE

The Mayor confirmed the attendance of Committee Members via an electronic roll call, with each Member acknowledging they had joined the Meeting. Mayor P Hall Presiding Member Cr Barry Mason Cr Sweeney Nicholson Ms E Lee External Committee Member Mr M Wallace External Committee Member

https://www.wa.gov.au/sites/default/files/2020-04/Closure%20and%20Restriction%20%28Limit%20the%20Spread%29%20Directions%20%28No%202%29_2.pdf


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STAFF

The Mayor confirmed the attendance of Officers via an electronic roll call, with each Officer acknowledging they had joined the Meeting. Mr A Kyron Chief Executive Officer Ms K Bateman Executive Manager Governance Canning Mr S Leeson Executive Manager Business Canning Mr H Attawala Manager Finance and Asset Management Ms J Alexander Leader Assurance Mr S Dharmaratne Leader Risk Management Ms S Johnson Governance Officer

CONSULTANTS

The Mayor confirmed the attendance of the Consultants via an electronic roll call, with each Officer acknowledging they had joined the Meeting. Mr M Beevers Partner KPMG Mr H Rutters Senior Manager Partner KPMG Mr S Hoar Acting Senior Director, Office of the Auditor General PRESENTATION BY CONSULTANTS

Mr M Beevers, Partner KPMG and Mr S Hoar, Acting Senior Director, Office of the Auditor General gave a presentation to the Committee outlining:

a) KPMG’s audit responsibility. b) Audit approach. c) Audit scope. d) Business risk relevant to audit. e) Key audit focus areas.

2.1 Apologies

Mr G Adams Director Canning Community and Commercial

2.2 Approved Leave of Absence

Nil.

3. DISCLOSURE OF INTERESTS

3.1 Declarations of Interest (Financial)

Nil.

3.2 Declarations of Impartiality

Nil.


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The Mayor made the following statement:

“Before I move to the suspension of Standing Orders, Committee Members will note that when they received hard copies of the Agenda, they were also given voting cards. These cards will be used to establish the way in which you are voting. I ask that you raise the cards when asked to vote and continue to hold them up until the vote has been declared. The Green Card is to be used when voting FOR, and the Red Card to be used when voting AGAINST a motion”.

SUSPENSION OF STANDING ORDERS

The Committee is requested to suspend a clause of the City of Canning Standing Orders Local Law 2015 for the duration of the meeting, in order to facilitate an electronic meeting that meets the requirements of the Local Government Act 1995 and Local Government (Administration) Regulations 1996 during this declared public health emergency. To not suspend this clause may find the Committee in breach of its Local Law.

COMMITTEE DECISION

MOVED Mayor Hall, SECONDED Cr Barry, that Council:

1. Suspend the operation of the City of Canning Standing Orders Local Law 2015 clause as

listed below for the duration of this electronic meeting:

Standing Orders Local Law 2015 Clauses:

7.14 No interruption

A member must

(c) ensure that his or her mobile telephone, pager or other audible device is switched off or maintained in the silent mode and not used during any meeting.

CARRIED BY ABSOLUTE MAJORITY 5/0

4. CONFIRMATION OF MINUTES

Audit and Risk Committee Meeting held on Wednesday, 4 March 2020

COMMITTEE DECISION

MOVED Ms Lee, SECONDED Mr Wallace, that the Minutes of the Audit and Risk Committee Meeting held on Wednesday, 4 March 2020, be taken as read and confirmed.

CARRIED UNANIMOUSLY 5/0

5. REPORTS


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ARC-010-20 Internal Audit Activity Report ARC-010-20

5.1 Director Canning Community and Commercial

ARC-010-20 Internal Audit Activity Report

PROGRAM: Canning Community and Commercial

SUB PROGRAM: Governance Canning

FILE REF: Q20/129

REPORT DATE: 6 May 2020

REPORTING OFFICER: June Alexander - Leader Assurance

RESPONSIBLE OFFICER: Garry Adams - Director Canning Community and Commercial

Strategic Plan Theme: LEAD - Accountable, responsible and forward-thinking administration.

Community Goal: Effective leadership and good governance. Council Strategy: Open and transparent to the community and stakeholders.

Authority/Discretion: Noting: Includes items provided to the Committee for information purposes only that do not require a decision of Committee.

Attachments: 1. Internal Audit Activity Report - 13 May 2020 (D20/55766). (Large Attachments) (Confidential)

In Brief:

The purpose of this report is to present the Internal Audit activities undertaken (in progress) by the City of Canning’s (the City’s) Internal Audit Function for the period 1 March 2020 to 30 April 2020, and activities planned for the period 1 May 2020 to 30 September 2020.

ARC-010-20 COMMITTEE DECISION

MOVED Mr Wallace, SECONDED Cr Barry, that the Audit and Risk Committee receives the Internal Audit Activity Report for the Internal Audit activities undertaken for the period 1 March 2020 to 30 April 2020 and planned for the period 1 May 2020 to 30 September 2020, with Large Confidential Attachment 1.


Relevant Committee Resolutions

Committee Meeting and Date Report No Decision

Audit and Risk Committee

4 March 2020

ARC-001-20

That the Audit and Risk Committee receives the Internal Audit Activity Report for the Internal Audit activities undertaken and planned for the period December 2019 to June 2020, as contained in Large Confidential Attachment 1.


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BACKGROUND

1 The City’s Internal Audit Activity Report covers the period 1 March 2020 to 30 September 2020 and outlines:

a) Audit activities undertaken (in progress) during the period 1 March 2020 to 30 April 2020.

b) Other assurance activities.

c) Audit activities planned for the period 1 May 2020 to 30 September 2020.

DETAILS

2 Audit Activities Undertaken (In Progress) for the Period 1 March 2020 to 30 April 2020

Internal Audit Review Status

Integrated Planning & Reporting (‘IPR’) Framework – Phases One and Two (In progress)

This audit review is being conducted by internal resources. The fieldwork is complete and the audit report is being drafted.

Project management – Centenary Park West Road Capping and Centenary Avenue Off Ramp widening Project (In progress)

This audit review was conducted by internal resources. The draft audit report is with management for comments.

Development approvals (In progress)

This audit review is being conducted by internal resources. The fieldwork is underway.

Data analytics – Waste (Rubbish / Recycling) Services Fees (In progress)

This audit review is being conducted by internal resources. The fieldwork is underway.

3 Other Assurance Activities

Audit Activities Status

Internal Audit Plan 2020-2021 (Completed)

A rolling Internal Audit Program (2020-2024) has been developed for the internal audit coverage. Full details are reported separately in the 13 May 2020 Audit and Risk Committee Report titled ‘Internal Audit Plan 2020-2021’.

Follow-up on Status of Outstanding Audit Recommendations (Ongoing)

The status of all outstanding audit recommendations was last followed up as at 31 March 2020.

Full details are reported separately in the 13 May 2020 Audit and Risk Committee Report titled ‘Status of Outstanding Internal Audit Recommendations’.

Whistleblower Hotline (Ongoing)

The Executive Manager Governance and Leader Assurance continue to monitor the City’s Whistleblower Hotline. The Hotline is tested every six months to ensure it is operating correctly. It was last tested on 17 March 2020 and found to be operating correctly.

Fraud and Corruption Risk Workshops (Ongoing)

Fraud and Corruption Risk workshops are conducted every six months in conjunction with the City’s Risk Management function. A workshop to assess fraud risks associated with the City’s assets management, including assets and portable and attractive assets, has been completed. A workshop to assess fraud risks associated with the City’s information technology and information systems is about to commence.

Fraud and Corruption Control Messaging (Ongoing).

The City’s Governance Team continues to provide staff with fraud and corruption control messaging presentations.


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Audit Activities Status

Investigations (Ad hoc)

Internal Audit has ongoing involvement in confidential investigations/complaints, including collecting information (evidence), reporting to the Department of Local Government, Sports and Cultural Industries, Public Sector Commission and the Crime Corruption Commission as appropriate, and maintaining the Register of Complaints against Elected Members.

IT Project Assurance (Ongoing)

The Leader Assurance, working with the City Delivery Unit and the Project Manager OneCouncil, is in the process of developing a checklist containing audit questions that can be used in the assessment of the five key focus areas relevant to the audit of IT Projects, for the purpose of providing assurance.

Internal Audit Manual Review (Planning)

The City’s Internal Audit Manual (‘the Manual’) was developed in July 2018 by an external provider. The Manual defines the approach taken by the City to Internal Auditing, and the roles and responsibilities of its Leader Assurance. The Manual is scheduled to be reviewed.

Annual Financial Controls Review Activity Report (Ongoing)

The 2020 financial year review (part one of three reviews covering the 2020, 2021 and 2022 financial years) has been completed and the audit report endorsed by the Executive Team and the Audit and Risk Committee.

The City engaged an external consultant to complete the 2020 review, which covered the following four areas:

a) Elected Members and staff allowances (excluding overtime).

b) Credit card security and usage.

c) Register (Financial Interests).

d) Contracts for service (with total contract value of $50,000 plus per contract).

All remaining areas of review will be covered in the 2021 and 2022 financial years.

Audit and Risk Customer Survey Results (Ongoing)

The Internal Audit Function provides auditees with the opportunity to rate their level of satisfaction following the completion of each Internal Audit, by providing them with a satisfaction survey for completion. Completion of the survey by the auditee is voluntary.

Average overall auditee satisfaction rating for the period 1 July 2019 to 30 April 2020 is 76%.

Audit Activities in Progress and Planned for the period 1 May 2020 to 30 September 2020

4 The audit activities in progress and planned are consistent with the approved 2019-2020 and 2020-2021 Internal Audit Plans.

Audit Activities

1 May 2020 to 30 September 2020

Responsible Program / Sub-Program

Integrated Planning & Reporting (‘IPR’) Framework – Phases One and Two (In progress)

Office of the CEO

Project management – Centenary Park West Road Capping and Centenary Avenue Off Ramp widening Project (In progress)

Canning Sustainable Development

Development approvals (In progress)



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Audit Activities

1 May 2020 to 30 September 2020

Responsible Program / Sub-Program

Data analytics – Waste (Rubbish / Recycling) Services Fees. (In progress)

Canning Community & Commercial

IT vulnerability review. (Planning)


Events program management – performance review. (Planning)


Post implementation review – Envibe Booking System replacement for Centaman. (Planning)


Inventory management. (Q1 2020-2021)

Canning Environment

Strategic Planning. (Q1 2020-2021)


CONSIDERATIONS

Legal Compliance

5 Not applicable.

Policy Implications

6 The Audit and Risk Committee Terms of Reference sets out the objectives, authority, membership and responsibilities of the Committee; this includes monitoring and reviewing the internal audit activities.

Financial Considerations

Business Plan

7 Governance Canning.

Internal Budget

8 Budget allocations have been made for external resourcing, and the two main positions involved in the Internal Audit Function (internal resourcing):

a) Executive Manager Governance.

b) Leader Assurance.

Asset Management

9 Not applicable.

Sustainability Considerations

10 Not applicable.

Consultation

11 Audits were conducted in consultation with the relevant Program and Sub-Program staff.


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12 Governance presented the following items to the Executive Team:

a) Status of Outstanding Audit Recommendations (as at 31 March 2020) on 20 April 2020, and

b) Internal Audit Plan 2020-2021 on 30 April 2020.

Other Considerations or Risks

13 Report is for noting only.

COMMENT

14 Not applicable.

VOTING REQUIREMENT

15 Simple majority.

COMMITTEE COMMENT

16 Not applicable.


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ARC-011-20 Status of Outstanding Audit Recommendations ARC-011-20

ARC-011-20 Status of Outstanding Audit Recommendations



FILE REF: Q20/130







Attachments: 1. Status of Outstanding Audit Recommendations (as at 31 March 2020) (D20/53051). (Large Attachments) (Confidential)

In Brief:

The purpose of this report is to present the Status of Outstanding Audit Recommendations at the point of last follow up (ie 31 March 2020) and report on how they are tracking in relation to the completion due dates.


MOVED Cr Barry, SECONDED Cr Sweeney, that the Audit and Risk Committee receives the Status of Outstanding Audit Recommendations Report, with Large Confidential Attachment 1.





4 March 2020

ARC-003-20

That the Audit and Risk Committee receives the Status of Outstanding Audit Recommendations Report as contained in Large Confidential Attachment 1.

BACKGROUND

1 On a quarterly basis, Internal Audit follows up on the status of all outstanding audit recommendations, resulting from both internal audit reviews and performance and financial reviews conducted by the Office of the Auditor General (OAG), and reports the status to the Audit and Risk Committee (ARC). The status of all outstanding audit recommendations was last followed up for the quarter ended 31 March 2020 and the results are detailed in this report (refer Large Confidential Attachment 1).


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DETAILS

2 Outstanding audit recommendations were previously followed up as at 31 December 2019.

3 All outstanding internal audit and OAG performance and financial audit recommendations have been followed up as at 31 March 2020:

a) Out of a total of 58 internal audit recommendations followed up (across the 17 internal audits), of which five audit recommendations were raised during the period 1 January 2020 to 31 March 2020, 37 were completed leaving 21 outstanding as at 31 March 2020. Of the 21 outstanding recommendations, five are on schedule original due date and 16 are on schedule revised date.

b) Out of a total of six OAG performance audit recommendations followed up (all for the Records Management in Local Government 2019 review), none was completed during the period 1 January 2020 to 31 March 2020 leaving six outstanding as at 31 March 2020. Of the six outstanding recommendations, one is on schedule original due date and five are on schedule revised due date.

c) Out of a total of six OAG financial audit recommendations followed up (all for the 2016-2017; 2017-2018 and 2018-2019 financial reviews), four were completed leaving two outstanding as at 31 March 2020. The two outstanding recommendations are on schedule original due date.

4 Actions are in progress to address all outstanding audit recommendations, and Internal Audit will continue to follow up on the status on a quarterly basis.

5 Summaries of the follow up results for the combined 2016-2020 period, as well as for each of the individual financial years, are outlined in Large Confidential Attachment 1 of this report.

Executive Acceptance of Status of Audit Recommendations

6 As at 31 March 2020, the Executive Team, after review by respective Executive Team members, has accepted:

a) Status of audit recommendations with revised due dates greater than 12 months beyond original due dates (includes High risk recommendations); and

b) Status of audit recommendations completed between 1 January 2020 and 31 March 2020.

CONSIDERATIONS

Legal Compliance

7 Not applicable

Policy Implications

8 Not applicable


Business Plan


Internal Budget

10 Internal audit activities are carried out within existing budget.

Asset Management

11 Not applicable.


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12 Not applicable.

Consultation

13 Relevant sub program staff completed the update on the status of the audit recommendations relating to their sub program.

14 Governance presented the status of all outstanding audit recommendations (as at 31 March 2020) to the Executive Team on 20 April 2020.


15 Report is for noting only.

COMMENT

16 Not applicable.

VOTING REQUIREMENT

17 Simple majority.

COMMITTEE COMMENT

18 Not applicable.


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ARC-012-20 Internal Audit Plan 2020-2021 ARC-012-20

ARC-012-20 Internal Audit Plan 2020-2021



FILE REF: Q20/131







Attachments: 1. Internal Audit Plan 2020-2021 (D20/46218). (Large Attachments) (Confidential)

In Brief:

The purpose of this report is to present the Internal Audit Plan 2020-2021 (‘Annual Plan’) for the City of Canning (‘the City’).


MOVED Mayor Hall, SECONDED Cr Barry, that the Audit and Risk Committee receives the Internal Audit Plan 2020–2021 with Large Confidential Attachment 1.




Audit and Risk Committee 26 June 2019

ARC-011-19 That the Audit and Risk Committee receives the confidential Internal Audit Plan 2019–2020.

BACKGROUND

1 A rolling Internal Audit Program 2020-2024 has been developed for the internal audit coverage. This is reviewed annually to establish the Internal Annual Plan 2020-2021 (Annual Plan).

2 The Annual Plan meets emerging business imperatives and will provide assurance, or otherwise, that business processes and existing controls are operating throughout the City as expected. Additionally, the Annual Plan takes into account the results of previous years’ internal audits and developments within the City.


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3 The audits are predominantly conducted by the Leader Assurance, with external resources engaged periodically to conduct audits requiring specialised skills or expertise.

DETAILS

4 The internal audit planning process for 2020-2021 encompassed:

a) Discussions with senior management to consider risk exposure and identify internal audits for key processes and controls within respective Programs and Sub Programs.

b) Mapping internal audits to the City’s focus areas and strategic risks.

c) Providing an overview of the matters of focus of internal audit work to be performed.

d) Estimating the time (number of days) required to conduct each internal audit engagement.

e) Planning the timing (by financial quarter) for each of the internal audit engagements.

f) Planning the audit resources (including internal vs external mix) required to complete the Annual Plan.

5 Preliminary timings have been provided in the Annual Plan. After the Annual Plan has been received by the Audit and Risk Committee (ARC), the timing of the audits will be confirmed with the respective Programs and Sub-Programs.

6 Professional judgement has been used to estimate the number of days per auditable area. This could change if issues arise which require additional time.

7 Five 2019-2020 audits require independent assurance or assistance with resourcing to complete the Annual Plan, and will be fully or partly sourced externally. These audits are:

a) Financial Controls Review.

b) Compliance Audit Return 2020 (partly outsourced).

c) Procurement and contract management framework review.

d) Occupational Health & Safety (OHS) – Workplace Health & Safety.

e) Penetration testing against public facing servers, networks and public website.

8 In addition to conducting audits (planned and ad hoc as required), the in-house internal audit function activities also include for 2020-2021:

a) Information Technology Project Assurance reviews.

b) Fraud and corruption control – risk assessments.

c) Follow-up on outstanding audit recommendations.

d) Audit customer surveys.

e) Governance presentations.

f) Ad hoc requests and investigations.

g) Annual Internal Audit Plan development.

h) ARC reporting and meetings.

i) ARC: Financial Controls Review Activity report.

j) ARC: Terms of Reference Review.

k) Quality Assessment (outsourced External Assessment) of Internal Audit Function (once every five years).


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CONSIDERATIONS

Legal Compliance

9 Local Government Act 1995, Section 7 – Audit.

Local Government (Audit) Regulations 1996, Section 7(c).

Policy Implications

10 Not applicable.


Business Plan


Internal Budget

12 There is a budget allocation for the two main positions involved in the internal audit function (internal resourcing):

a) Executive Manager Governance.

b) Leader Assurance.

Internal budget also includes an allocation for external resourcing.

Asset Management

13 Not applicable.


14 Not applicable.

Consultation

15 The Annual Plan was developed based on discussions with the Executive Team and senior management to consider risk exposures and identify internal audits for key processes and controls within respective Programs and their Sub-Programs.

16 The Executive Team reviewed and endorsed the Internal Annual Plan 2020-2021 on 30 April 2020.


17 Not applicable as this report is for noting only.

COMMENT

18 Not applicable.

VOTING REQUIREMENT

19 Simple majority.

COMMITTEE COMMENT

20 Not applicable.


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ARC-013-20 Business Continuity Report ARC-013-20

ARC-013-20 Business Continuity Report



FILE REF: Q20/132


REPORTING OFFICER: Shaakya Dharmaratne - Leader Risk Management





Attachments: 1. Business Continuity Response Team (BCRT) Exercise Report FINAL (March 2020) (exercise regarding COVID-19) (D20/42867). (Confidential)

2. CIMT and BCRT structure (D20/54923). 3. COVID-19 Timeline of Events (d20/54944). (Confidential)

In Brief:

The purpose of this report is to provide the Audit and Risk Committee with an overview of the COVID-19 business continuity activities undertaken by City of Canning (the City) since 4 March 2020.


MOVED Ms Lee, SECONDED Cr Barry, that the Audit and Risk Committee receives the Business Continuity report, with Confidential Attachments 1, 3 and Attachment 2.




Audit and Risk Committee 4 March 2020.

ARC-006-20

Audit and Risk Committee receives the Risk Management and Business Continuity Activity Report for March 2020.

BACKGROUND

1 This report provides an overview of the business continuity activities undertaken by the City from the 4 March 2020.


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DETAILS

Business Continuity Response Team Exercise for the Administration Building

2 The City’s COVID-19 preparedness commenced on 4 March 2020 with an exercise conducted for the Business Continuity Response Team (BCRT) of the Administration Building, together with representatives from other key locations such as the Works Depot and the Waste Depot. Whilst this was a pre-planned exercise, the scenarios were developed to prepare the City for a COVID-19 response.

3 At a high level, the objectives of the exercise were to:

a) Provide an opportunity for the Administration Building BCRT members (and representatives from other key locations) to build familiarity with the Business Continuity Action Plans (BCAPs);

b) Assist the BCRT to practice working together in response to a major disruptive event such as COVID-19; and

c) Validate the completeness, relevance and accuracy of the BCAPs and identify opportunities for improvement.

4 The Crisis Incident Management Team (CIMT) was invited to the BCRT exercise debrief. At the debrief the Chief Executive Officer and the CIMT Leader, decided to form a Working Group to implement next steps/action items identified from the exercise.

5 The Working Group was formed and the first Working Group meeting was held on 9 March 2020. A plan was put in place to commence the implementation of next steps/action items from the BCRT exercise.

6 The next steps/action items identified in the report are either complete or work is in progress to action them. The Risk Management Function is working with relevant parties to ensure these next steps/action items are being progressed.

7 Confidential Attachment 1 contains the detailed report for the exercise. Steps taken to address these action items are being captured and tracked.

8 Feedback from the participants was that the scenario was appropriate and relevant to the challenges in managing and responding to the COVID-19 outbreak. The exercise was useful in highlighting some of the key preparatory and planning steps that need to be carried out in relation to:

a) Communications;

b) Health and safety;

c) Business continuity ;

d) Critical suppliers, service providers and contractors; and

e) Policies on staff entitlements.

Activating the Crisis Incident Management Team (CIMT) and the Business Continuity Response Teams (BCRT) (Refer Attachment 2 for the CIMT and BCRT structure)

9 The CIMT is responsible for managing how the City deals effectively with a crisis, such as the declared public health emergency for the COVID-19 outbreak. CIMT has to consider every aspect at the City that is affected by the crisis. For example, regarding the public health emergency for the COVID-19 outbreak the CIMT had to consider what has to be done to take care of issues in relation to any number of matters such as staff, assets, community, communications, technology, facilities etc.


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10 The BCRTs convene at the request of the CIMT. The BCRTs’ role is to identify which operations could continue, what operations would have to be put on hold and how to return to full operational capacity when, in this instance, the public health emergency has passed. The City has BCRT teams for each of the City’s key locations being the Administration Building, the Leisureplexes, the Libraries, the Waste Depot at Ranford Road and the Works Depot on Fleming Avenue.

11 The Business Continuity Action Plans are activated following a major disruptive event to ensure that the City can continue to provide essential services to our Canning community. This is the responsibility of the BCRT when activated by the CIMT.

12 In early March 2020, the Western Australian Government activated the Western Australian Government Pandemic Plan, in response to the World Health Organisation declaring COVID-19 a pandemic.

13 Due to rapid developments in matters pertaining to COVID-19 and the escalating emergency, on 12 March 2020 the CIMT Leader activated the Crisis Incident Management Plan and the Business Continuity Action Plans for each site. Thus, the CIMT and the BCRTs were convened.

14 Since activation on 12 March 2020, the CIMT has been meeting on a regular basis (three times a week).The BCRTs collectively meet weekly at this stage, with individual site meetings taking place more regularly as required.

15 Key undertakings of the CIMT to date have included:

a) Understanding and acting responsibly to the various Federal and State Government decisions/policy changes and re-aligning the City’s operations and services.

b) Making decisions on City’s day to day operational requirements such as people and performance, communication, work health and safety of staff/contractors/public, office accommodation, service delivery, ICT needs, supply chain management and customer liaison. Examples include:

i. Initial closure of facilities such as the Administration Building to customers, the Whaleback golf course, leisureplexes and libraries; then

ii. Progressive re-opening ‘in a controlled manner’ of the Whaleback golf course, and limited library services;

iii. Enabling staff to working effectively from home to meet social distancing requirements;

iv. Increasing the cleaning regimes in public and office spaces to reduce transmission of the virus;

v. Sending clear and consistent messages to public and staff to raise awareness on the virus; and

vi. The introduction of eMeetings for Council meetings.

16 The Executive Manager Healthy Canning has played a key role in the CIMT, updating the CIMT daily on latest COVID-19 developments. These updates are based on information from the Department of Health WA and Federal web sites. Latest updates are also obtained from the Prime Minister’s media web page. This information provides a sound basis to enable the CIMT to make informed decisions. All communications and health related operational decisions are approved by the Chief Executive Officer and the Executive Manager Healthy Canning, prior to release.

17 Further to this role, Executive Manager Healthy Canning is also the conduit between the CIMT and the BCRT teams. In this role the Executive Manager Healthy Canning is responsible for communicating any operational decisions taken at the CIMT meetings to the BCRT and feeding back the progress of actions to the CIMT.


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18 Since the commencement of the crisis response, the BCRT teams have identified and prepared the following information for each key site (Administration Building, Waste Depot, Works Depot, Leisureplexes, Libraries and Canning Lodge):

a) Essential services at each location within the nominated sites;

b) Minimum number of staff required to continue essential services;

c) If the essential services can be performed from home;

d) Impact if essential services cannot be continued;

e) Intensity of staff face to face interaction with community; and

f) Key suppliers and mitigation plans if the suppliers cannot provide the required services.

19 BCRT teams have been working to ensure staff are safe and business operations are conducted efficiently and effectively to continuously provide services to the community. To ensure staff safety and continuity of business activities, guidelines have been developed on steps to take if a staff member is suspected to have COVID-19. These guidelines are aligned with Department of Health advice. Further to this, risk registers are being developed to identify controls in place at sub program level to mitigate the spread of COVID-19.

20 In considering all these factors, the City, through the CIMT and BCRTs, has put in place a number of controls to mitigate the risk of COVID-19 by enabling ‘remote’ working practices. For example:

a) ‘Splitting up’ staff in essential services into several locations;

b) Enabling staff to work from home;

c) Taking measures to implement social distancing requirements; and

d) Implementing technology to enable video conferencing capability and other controls.

21 The Mayor is the community spokesperson and the representative for elected members in the CIMT. In addition to the regular communication that goes out to Elected Members, the Mayor receives an update from the CIMT Leader subsequent to the CIMT meetings.

22 The City is still firmly in the response phase of the COVID-19 crisis, but is looking ahead to assist the community in the recovery phase when the threat has passed and people can get back to life ‘as we knew it’.

23 This response structure will be ongoing until a decision is made to disband the CIMT and the BCRTs.

24 The City is in the process of developing a timeline of decisions; actions taken; analysis of measures put in place; improved or changed work practices and services delivery methods. (Refer Attachment 3 for the list of key activities to date). This full report when completed will form the basis for a review of lessons learnt and be a blue print for improved efficiency and effectiveness in the delivery of the City’s services.

Legal Compliance

25 Not applicable.

Policy Implications

26 The Risk Management Strategy and the Business Continuity Framework are based on the City’s Risk Management Policy AF312.


Business Plan



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Internal Budget

28 Activities are performed in line with the approved Annual Budget.

Asset Management

29 Not applicable.


30 Not applicable.

Consultation

31 Crisis response activities are led by the City’s senior management team.


32 Not applicable. The Report is for noting only.

COMMENT

33 Nil.

VOTING REQUIREMENT

34 Simple majority.

COMMITTEE COMMENT

35 Not applicable.


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ARC-014-20 City Debt ARC-014-20

ARC-014-20 City Debt


SUB PROGRAM: Business

FILE REF: Q20/133


REPORTING OFFICER: Natalie Hett - Leader Revenue



Community Goal: Effective leadership and good governance. Council Strategy: Prudent financial management and long term financial sustainability.

Authority/Discretion: Legislative: Includes adopting Local Laws, Town Planning Schemes and Policies. Committee and Council to review decisions made by Officers.

Attachments: 1. Rates Aged Debt Report GT 10,000 (D20/53659). (Confidential) 2. Debtors Outstanding 90 days GT (D20/53818). (Confidential) 3. Policy FM.13 Financial Hardship (D20/43656).

In Brief:

The purpose of this report is to provide an update on the City of Canning’s outstanding Aged Sundry and Rates Debt.


MOVED Cr Barry, SECONDED Mr Wallace, that the Audit and Risk Committee receives the report on City Debt, as contained in Confidential Attachments 1 and 2.




Special Council Meeting

30 April 2020

CC-015-20 Community and Business Support – Phase 1 Response

That Council:

1. Adopts the proposed policy FM.13 Financial Hardship – Collection of Property Rates, Fees and Charges as contained in Attachment 1 to allow for the cessation of penalty interest, a pause on payments for up to six months and the establishment of alternate payment arrangements.


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CC-016-20 Budget Review as at 31 March 2020

That Council:

1. Approves the Budget Review as at 31 March 2020 and endorses the actions proposed within the report.


4 March 2020

ARC-007-20

That the Audit and Risk Committee receives the report on City Debt as contained in Confidential Attachments 1 and 2.

BACKGROUND

1 Sundry debtors are created when an invoice is issued for goods or services provided by the City of Canning (the City). Infringements are issued for compliance matters, and those which remain unpaid after three months are referred to the Department of the Attorney General - Fines Enforcement Agency (FER) for collection.

2 The City’s Sundry Debt Collection Procedure is in accordance with the Chief Executive Officer (CEO) Instruction FMC.06 Sundry Debt Collection. The Sundry Debt Collection Procedure is consistent with established commercial business practices and the steps to be followed are:

a) Invoice request generated by the responsible Officer as soon as possible to the time the debt is owed to the City.

b) Within 30 days - Statement issued with notification requesting payment within 14 days.

c) Within 45 days - Telephone contact is to be made with the customer requesting payment, or a letter is to be sent requesting payment within 14 days.

d) Within 60 days - Letter is to be sent to the customer informing that debt recovery or legal action will be pursued, if payment terms are not established within 14 days.

e) Within 90 days - Where considered feasible, recovery of outstanding debt is placed in the hands of a debt collection agency or solicitor.

3 The procedure for collection of the City’s rate and service charges is in accordance with CEO Instruction FMC.02 Rates and Service Charges Recovery. This procedure is in compliance with the Local Government Act 1995 and actions that may be taken are:

a) Lodge caveats on land where rates and/or service charges are in arrears for three years or longer.

b) Withdraw caveats on land where the owner has paid in full, the outstanding rates and/or service charges.

c) Engage the services of a debt collection agency to recover rates and/or service charges that are overdue and unpaid for less than three years and/or proceed to recover those debts in a court of competent jurisdiction.

4 In recognition of the significant impact associated with the COVID-19 pandemic, the City has recently implemented changes in its approach to collection of City Debt. The City’s measures include so far:

a) Adoption of a Financial Hardship Policy (included as Attachment 3);

b) Concession on penalty interest on overdue rates;

c) Concession on health inspections;

d) Concession on leasing charges for business, community groups and sorting clubs; and


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e) Pausing formal debt collection of property rates, fees and charges overdue less than two years.

DETAILS

5 The total outstanding amount for debts > 90 days as at 30 April 2020 is $381,572.36 (an increase from $367,183.14 as at 7 February 2020). Overall this amount makes up 65% of the overall debt amount of $584,810.44

It should be noted that prosecutions awarded by the courts become responsibility of Fines and Enforcement Registry to manage and collect on the City’s behalf. The adjusted debt amount that the City can collect > 90 days is 9.84%

6 The City’s current outstanding debt greater than 90 days is represented in the graph below:

7

Prosecutions continue to form the bulk of the City’s long term debt. City Officers have established contacts with the FER, in an effort to recognise uncollectable fines earlier and recognise bad debts in a timely manner.

8 Represented in the graph below is a comparison of the City’s overall sundry debt outstanding greater than 90 days since September 2018. The older 2018 debt comprises mostly prosecutions for health and fire hazard infringements which are being pursued by the FER, with old aged care and eating house inspection debts currently under review. Amounts in red on the graph below represent the amounts written off during that period.


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9 Sundry debts greater than $10,000 and outstanding 90+ days are included as Confidential Attachment 1. This includes comment and recommendations.

10 The City may proceed with formal recovery of outstanding debts; or enter into payment arrangements or alternatively, write the debt off.

Rates

11 Included as Confidential Attachment 2 are details of due and payable rates over $10,000 which remain outstanding for three or more years. It should be noted that eligible pensioners and seniors are not included in this report.

12 The City does enter into alternative payment arrangements (being other than the four instalment options as per the adopted budget) for outstanding rates, fees and service charge debt. This is on an individual basis with ratepayers who may be experiencing financial difficulty with the intent of avoiding further recovery action and legal expenses. The City’s expectation of a suitable payment arrangement is to have the outstanding debts and further rates as they fall due, recovered within two financial years. These alternative payment arrangements are entered in to as direct debit arrangement.

13 There are currently 274 ratepayers on informal arrangements which are reviewed periodically, included with 875 accounts on direct debit arrangements.

14 To date, the City has received 94.2% of the total rates and service charges levied for the 2019-2020 financial year. This is slightly higher than the same time last financial year (93.6%).

15 Historically, the City has maintained a low outstanding rates and service charge balance as at 30 June each year. The amount outstanding has increased marginally as a percentage of total rates raised for the financial year, from 4.1% in 2011-2012 to 5.3% in 2018-2019. SMS payment reminders have been established (for those ratepayers whose details have been provided) and the City will endeavour to broaden this approach. The graph below shows the amounts outstanding at the end of each financial year from 2011-2012. Included in the below tables balances are deferred rates and the Emergency Service Levy.


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CONSIDERATIONS

Legal Compliance

16 Not applicable

Policy Implications

17 FM.13 Financial Hardship


18 The current provision for doubtful debt is $346,844.59.

Business Plan

19 Business Canning.

Financial Reporting:

a) To prepare the City’s Annual Report, Annual Budget, and Long Term Financial Plan.

b) To oversee acquittals for external agencies.

c) To prepare the City’s accounts for audit.

Internal Budget

20 Not applicable.

Asset Management

21 Not applicable.


22 Not applicable.

Consultation

23 Finance staff liaised with the service units responsible for the establishment of the debt, regarding its collectability and any recommendations made within this report.


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24 Not applicable.

COMMENT

25 City ratepayers are able to make application under the recently adopted Financial Hardship Policy, to pause repayment of their property rates, fees and charges for up to six months, without penalty interest for two years.

26 An online application process has been established to assist ratepayers, streamlining meeting the requirements of policy and data collection requirements. The online process also enables ratepayers to also transition to eRates. The assessment process is automated, though still reviewed and authorised, minimising manual process and handling requirements upon the City’s Revenue Officers.

VOTING REQUIREMENT

27 Simple majority.

COMMITTEE COMMENT

28 Not applicable.


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6. CONFIDENTIAL MATTERS

Nil.

7. CLOSURE

There being no further business, the Chairman declared the Meeting closed at 6.28pm.

Minutes of Audit and Risk Committee - 13 May 2020 · 2020-05-15 · A rolling Internal Audit...

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Transcript of Minutes of Audit and Risk Committee - 13 May 2020 · 2020-05-15 · A rolling Internal Audit...