Notice of Meeting
Audit, Risk and Improvement Committee Meeting
An Audit, Risk and Improvement Committee Meeting of Byron Shire Council will be held as follows:
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Venue |
Meeting Room 1, Station Street, Mullumbimby |
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Date |
Tuesday, 17 March 2020 |
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Time |
11.30am |
Vanessa Adams
Director Corporate and Community Services I2020/378
Distributed 10/03/20
CONFLICT OF INTERESTS
What is a “Conflict of Interests” - A conflict of interests can be of two types:
Pecuniary - an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person or another person with whom the person is associated.
Non-pecuniary – a private or personal interest that a Council official has that does not amount to a pecuniary interest as defined in the Code of Conduct for Councillors (eg. A friendship, membership of an association, society or trade union or involvement or interest in an activity and may include an interest of a financial nature).
Remoteness – a person does not have a pecuniary interest in a matter if the interest is so remote or insignificant that it could not reasonably be regarded as likely to influence any decision the person might make in relation to a matter or if the interest is of a kind specified in the Code of Conduct for Councillors.
Who has a Pecuniary Interest? - a person has a pecuniary interest in a matter if the pecuniary interest is the interest of the person, or another person with whom the person is associated (see below).
Relatives, Partners - a person is taken to have a pecuniary interest in a matter if:
§ The person’s spouse or de facto partner or a relative of the person has a pecuniary interest in the matter, or
§ The person, or a nominee, partners or employer of the person, is a member of a company or other body that has a pecuniary interest in the matter.
N.B. “Relative”, in relation to a person means any of the following:
(a) the parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descends or adopted child of the person or of the person’s spouse;
(b) the spouse or de facto partners of the person or of a person referred to in paragraph (a)
No Interest in the Matter - however, a person is not taken to have a pecuniary interest in a matter:
§ If the person is unaware of the relevant pecuniary interest of the spouse, de facto partner, relative or company or other body, or
§ Just because the person is a member of, or is employed by, the Council.
§ Just because the person is a member of, or a delegate of the Council to, a company or other body that has a pecuniary interest in the matter provided that the person has no beneficial interest in any shares of the company or body.
Disclosure and participation in meetings
§ A Councillor or a member of a Council Committee who has a pecuniary interest in any matter with which the Council is concerned and who is present at a meeting of the Council or Committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable.
§ The Councillor or member must not be present at, or in sight of, the meeting of the Council or Committee:
(a) at any time during which the matter is being considered or discussed by the Council or Committee, or
(b) at any time during which the Council or Committee is voting on any question in relation to the matter.
No Knowledge - a person does not breach this Clause if the person did not know and could not reasonably be expected to have known that the matter under consideration at the meeting was a matter in which he or she had a pecuniary interest.
Non-pecuniary Interests - Must be disclosed in meetings.
There are a broad range of options available for managing conflicts & the option chosen will depend on an assessment of the circumstances of the matter, the nature of the interest and the significance of the issue being dealt with. Non-pecuniary conflicts of interests must be dealt with in at least one of the following ways:
§ It may be appropriate that no action be taken where the potential for conflict is minimal. However, Councillors should consider providing an explanation of why they consider a conflict does not exist.
§ Limit involvement if practical (eg. Participate in discussion but not in decision making or vice-versa). Care needs to be taken when exercising this option.
§ Remove the source of the conflict (eg. Relinquishing or divesting the personal interest that creates the conflict)
§ Have no involvement by absenting yourself from and not taking part in any debate or voting on the issue as of the provisions in the Code of Conduct (particularly if you have a significant non-pecuniary interest)
RECORDING OF VOTING ON PLANNING MATTERS
Clause 375A of the Local Government Act 1993 – Recording of voting on planning matters
(1) In this section, planning decision means a decision made in the exercise of a function of a council under the Environmental Planning and Assessment Act 1979:
(a) including a decision relating to a development application, an environmental planning instrument, a development control plan or a development contribution plan under that Act, but
(b) not including the making of an order under that Act.
(2) The general manager is required to keep a register containing, for each planning decision made at a meeting of the council or a council committee, the names of the councillors who supported the decision and the names of any councillors who opposed (or are taken to have opposed) the decision.
(3) For the purpose of maintaining the register, a division is required to be called whenever a motion for a planning decision is put at a meeting of the council or a council committee.
(4) Each decision recorded in the register is to be described in the register or identified in a manner that enables the description to be obtained from another publicly available document, and is to include the information required by the regulations.
(5) This section extends to a meeting that is closed to the public.
BYRON SHIRE COUNCIL
Audit, Risk and Improvement Committee Meeting
2. Declarations of Interest – Pecuniary and Non-Pecuniary
3. Adoption of Minutes from Previous Meetings
3.1 Audit, Risk and Improvement Committee Meeting held on 10 October 2019
3.2 Audit, Risk and Improvement Committee Meeting held on 14 November 2019
4. Staff Reports
Corporate and Community Services
4.1 Audit Office of NSW Report on Local Government 2019................................................ 4
5. Confidential Reports
Corporate and Community Services
5.1 Confidential - Business Continuity and Risk Management - Update...................... 67
5.2 Confidential - Audit Progress Report - January 2020............................................. 68
5.3 Confidential - IT Update.......................................................................................... 69
5.4 Confidential - Business Continuity Debrief - Rain Event February 2020............... 70
5.5 Confidential - 2019 Year End Audit Management Letter........................................ 71
5.6 Confidential - 2019-2020 External Audit Engagement Plan................................... 72
BYRON SHIRE COUNCIL
Staff Reports - Corporate and Community Services 4.1
Staff Reports - Corporate and Community Services
Report No. 4.1 Audit Office of NSW Report on Local Government 2019
Directorate: Corporate and Community Services
Report Author: Emma Fountain, Strategic Risk & Business Continuity Coordinator
File No: I2020/373
Summary:
This report analyses the results of audits of local government for the year ended 30 June 2019.
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RECOMMENDATION: That the Audit Risk & Improvement Committee notes the Audit Office of NSW Report on Local Government 2019
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1 Audit
Office of NSW Report on Local Government 2019, E2020/16106 , page 6⇩ 
REPORT
The report focuses on key observations and findings from the
2018-19 financial audits of councils and joint organisations.
The report highlights a number of areas where there has been improvement. The
report also found that councils could do more to be better prepared for the new
accounting standards, asset management practices could be strengthened, and
information technology controls and cyber security management could be
improved.
The Auditor-General also recommended that the Office of Local Government within
the Department of Planning, Industry and Environment develops a cyber security
policy by 30 June 2021 to ensure a consistent response to cyber security risks
across councils.
STRATEGIC CONSIDERATIONS
Community Strategic Plan and Operational Plan
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CSP Objective |
L2 |
CSP Strategy |
L3 |
DP Action |
L4 |
OP Activity |
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Community Objective 5: We have community led decision making which is open and inclusive |
5.5 |
Manage Council’s finances sustainably |
5.5.2 |
Ensure the financial integrity and sustainability of Council through effective planning and reporting systems (SP) |
5.5.2.2 |
Complete annual statutory financial reports |
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BYRON SHIRE COUNCIL
Confidential Reports - Corporate and Community Services 5.1
Confidential Reports - Corporate and Community Services
Report No. 5.1 Confidential - Business Continuity and Risk Management - Update
Directorate: Corporate and Community Services
Report Author: Emma Fountain, Strategic Risk & Business Continuity Coordinator
File No: I2020/84
Summary:
The purpose of this report is to provide an update on the Business Continuity and Risk Management frameworks.
RECOMMENDATION:
1. That pursuant to Section 10A(2)(f) of the Local Government Act, 1993, Council resolve to move into Confidential Session to discuss the report Business Continuity and Risk Management - Update.
2. That the reasons for closing the meeting to the public to consider this item be that the report contains:
a) details of systems and/or arrangements that have been implemented to protect council, councillors, staff and Council property
3. That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:
Risk management
1 Confidential - Risk Registers, E2020/8231
2 Fraud and Corruption Control Policy with Fraud Control Plan, E2020/4763
3 Risk Management Strategy, E2020/4770
4 Confidential - Risk Reports 31 Dec 2019, E2020/4739
BYRON SHIRE COUNCIL
Confidential Reports - Corporate and Community Services 5.2
Report No. 5.2 Confidential - Audit Progress Report - January 2020
Directorate: Corporate and Community Services
Report Author: Emma Fountain, Strategic Risk & Business Continuity Coordinator
File No: I2020/87
Summary:
This report presents the Internal Audit Activity Report – January 2020 prepared by Council and the Internal Auditor, O’Connor Marsden and Associates (OCM).
The activity report contains the remaining recommendations from each audit review conducted by Council’s previous internal audit provider as well as recommendations from recently completed audit reviews conducted by OCM.
RECOMMENDATION:
1. That pursuant to Section 10A(2)(d)i of the Local Government Act, 1993, Council resolve to move into Confidential Session to discuss the report Audit Progress Report - January 2020.
2. That the reasons for closing the meeting to the public to consider this item be that the report contains:
a) commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it
3. That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:
nature and content of audit report is for operational purposes
1 Confidential - Internal Audit Activity Report - January 2020, E2020/7324
BYRON SHIRE COUNCIL
Confidential Reports - Corporate and Community Services 5.3
Report No. 5.3 Confidential - IT Update
Directorate: Corporate and Community Services
Report Author: Phil Pountney, Manager Business Systems and Technology
File No: I2020/119
Summary:
This report provides an update on audit actions that fall under the Business Systems and Technology portfolio.
RECOMMENDATION:
1. That pursuant to Section 10A(2)(f) of the Local Government Act, 1993, Council resolve to move into Confidential Session to discuss the report IT Update.
2. That the reasons for closing the meeting to the public to consider this item be that the report contains:
a) details of systems and/or arrangements that have been implemented to protect council, councillors, staff and Council property
3. That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:
Exposes information security risk and vulnerabilities that could assist threats in the environment to expose Council data and system without authorisation.
1 ARIC Qtly P1 Incident Report - 31 Jan 2020, E2020/7013
2 ARIC Qtly Information Security Report - 31 Jan 2020, E2020/6957
BYRON SHIRE COUNCIL
Confidential Reports - Corporate and Community Services 5.4
Report No. 5.4 Confidential - Business Continuity Debrief - Rain Event February 2020
Directorate: Corporate and Community Services
Report Author: Emma Fountain, Strategic Risk & Business Continuity Coordinator
File No: I2020/232
Summary:
This report provides an overview of the business interruption rain event in February 2020 and its impact, from a business continuity perspective.
RECOMMENDATION:
1. That pursuant to Section 10A(2)(f) of the Local Government Act, 1993, Council resolve to move into Confidential Session to discuss the report Business Continuity Debrief - Rain Event February 2020.
2. That the reasons for closing the meeting to the public to consider this item be that the report contains:
a) details of systems and/or arrangements that have been implemented to protect council, councillors, staff and Council property
3. That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:
the information provided is relevant to Council operations and business continuity.
1 Confidential - Report to Audit Risk and Improvement Committee 17 March 2020 - Business Continuity Debrief - Rain Event February 2020, E2020/15619
BYRON SHIRE COUNCIL
Confidential Reports - Corporate and Community Services 5.5
Report No. 5.5 Confidential - 2019 Year End Audit Management Letter
Directorate: Corporate and Community Services
Report Author: James Brickley, Manager Finance
File No: I2020/1
Summary:
Council has received the 2019 Year End Audit Management Letter from the External Auditor, the Audit Office of NSW, relating to the 2018/2019 financial year audit. The Year End Audit Management Letter details nineteen items for management to consider and provides recommendations to improve internal controls and financial reporting processes.
Each of the audit matters raised in the 2019 Year End Audit Management Letter has been identified in this report for consideration by Council and the Audit, Risk and Improvement Advisory Committee.
RECOMMENDATION:
1. That pursuant to Section 10A(2)(f) of the Local Government Act, 1993, Council resolve to move into Confidential Session to discuss the report 2019 Year End Audit Management Letter.
2. That the reasons for closing the meeting to the public to consider this item be that the report contains:
a) details of systems and/or arrangements that have been implemented to protect council, councillors, staff and Council property
3. That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:
The report contains details of systems and/or arrangements that have been implemented to protect Council, Councillors, Staff and Council property.
1 Confidential - 2019 Year End Audt Management Letter from Audit Office of NSW, E2020/103
BYRON SHIRE COUNCIL
Confidential Reports - Corporate and Community Services 5.6
Report No. 5.6 Confidential - 2019-2020 External Audit Engagement Plan
Directorate: Corporate and Community Services
Report Author: James Brickley, Manager Finance
File No: I2020/368
Summary:
This report presents the 2019-2020 External Audit Engagement Plan for Council to the Audit, Risk and Improvement Committee.
RECOMMENDATION:
1. That pursuant to Section 10A(2)(f) of the Local Government Act, 1993, Council resolve to move into Confidential Session to discuss the report 2019-2020 External Audit Engagement Plan.
2. That the reasons for closing the meeting to the public to consider this item be that the report contains:
a) details of systems and/or arrangements that have been implemented to protect council, councillors, staff and Council property
3. That on balance it is considered that receipt and discussion of the matter in open Council would be contrary to the public interest, as:
The report contains details of systems and/or arrangements that have been implemented to protect Council, Councillors, Staff and Council property.
1 Confidential - 2020 External Audit Engagment Plan, E2020/16020
