Audit, Risk and Improvement Committee Meeting

An Audit, Risk and Improvement Committee Meeting of Byron Shire Council will be held as follows:

 

Venue

Conference Room, Station Street, Mullumbimby

Date

Thursday, 19 May 2022

Time

11.30am

 

 

 

Esmeralda Davis

Background pattern

Description automatically generatedActing Director Corporate and Community Services

I2022/532

                                                                                                                             Distributed 12/05/22

 

 

 

 

 

 


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

BUSINESS OF MEETING

1.    Apologies

2.    Declarations of Interest – Pecuniary and Non-Pecuniary

3.    Adoption of Minutes from Previous Meetings

3.1       Minutes from Extraordinary Audit, Risk and Improvement Committee of 21 October 2021.................................................................................................................................. 6

4.    Staff Reports

Note: The items indicated with an asterix (*) below (4.3 to 4.6 and 5.1 to 5.5) have been carried over from the Audit, Risk and Improvement Committee Meeting of 11 November 2022 due to lack of a quorum at that meeting.

General Manager

4.1       Election of Chairperson, Committee Overview and the Internal Audit Plan 2021-2024........................................................................................................................................... 8

4.2       Fraud and Corruption Control update....................................................................... 13

Corporate and Community Services

*4.3     Audit, Risk and Improvement Committee Performance Assessment for 2021.. 16

*4.4     Update on delegations in place 2020-2021............................................................. 20

*4.5     Status of Council Policies 2020-2021....................................................................... 31

*4.6     2021/22 Operational Plan Report - Q1 - September 2021.................................... 35

4.7       Draft Audit, Risk and Improvement Committee Constitution and 2022 Agenda Schedule........................................................................................................................ 39

4.8       Operational Plan 2021/22 Quarter 3 Report - Q3 - 1 January to 31 March 2022 42

4.9       Delivery Program - Workshop Session.................................................................... 46     

5.    Confidential Reports

Corporate and Community Services

*5.1     Confidential - Quarter 1 - 2021-22 Internal Audit Report.............................. 50

*5.2     Confidential - Quarter 1 - 2021-22 Risk Report.............................................. 52

*5.3     Confidential - Cyber Security and IT System Outages Quartertly Update. 53

*5.4     Confidential - 2021 Year End Audit Management Letter............................... 54

*5.5     Confidential - External Audit Actions Quarter 1 2021-2022 Update............ 55

5.6       Confidential - Internal Audit Report - 2021-2022 Quarters 2 and 3............. 56

5.7       Confidential - External Audits Update.............................................................. 58

5.8       Confidential - 2021-2022 External Audit Engagement Plan......................... 59

5.9       Confidential - Cyber Security and IT System Outages Quarterly Update.. 60

5.10    Confidential - Financial Recognition of Rural Fire Service Equipment Assets........................................................................................................................................ 61

5.11    Confidential - Social Engineering Incident - Reporting of Independent Investigation.................................................................................................................. 62


BYRON SHIRE COUNCIL

Adoption of Minutes from Previous Meetings                                                   3.1

Adoption of Minutes from Previous Meetings

 

Report No. 3.1       Minutes from Extraordinary Audit, Risk and Improvement Committee of 21 October 2021 

Directorate:                         Corporate and Community Services

Report Author:                   Alexandra Keen, Contract Management and Procurement Coordinator

File No:                                 I2021/1693

 

  

 

RECOMMENDATION:

That the minutes of the Audit, Risk and Improvement Committee (Extraordinary) Meeting held on 21 October 2021 be confirmed.

 


 

Report

The attachment to this report provides the minutes of the Audit, Risk and Improvement Committee (Extraordinary) Meeting of 21 October 2021. 

 

Report to Council

The minutes will be reported to Council on 25 November 2021.


BYRON SHIRE COUNCIL

Staff Reports - General Manager                                                                              4.1

Staff Reports - General Manager

 

Report No. 4.1       Election of Chairperson, Committee Overview and the Internal Audit Plan 2021-2024

Directorate:                         General Manager

Report Author:                   Mila Jones, Governance and Internal Audit Coordinator

File No:                                 I2022/342

Summary:

This report provides the mechanism for the election of the Audit, Risk and Improvement Committee (Committee) Chairperson, and outlines the Committee member obligations and secretariat.

This report presents an abridged version of the Three-Year Strategic Internal Audit Program (2021-2024) that was endorsed by Council on 23 September 2021 (Resolution 21-396); sections 3 and 4 are not included due to a required amendment to the program in 2022-2023. It also presents the amended Internal Audit Plan for 2022-2023, for endorsement by the Committee and recommendation to Council.

   

 

 

RECOMMENDATION:

That the Audit, Risk and Improvement Committee:

1.      Appoints _______ as the Committee’s Chairperson.

2.      Notes sections 1 and 2 of the Three Year Strategic Internal Audit Program (2021-2024) (Attachment 1 E2022/33306).

3.      Endorses the amended Internal Audit Plan for Quarter 4 2021-2022 and 2022-2023 for approval by Council (Attachment 2 E2022/33747). The Audit Plan for 2022-2023 <is / is not> to include the optional Credit/Corporate Card audit.

Attachments:

 

1        Confidential - Three Year Strategic Internal Audit Program (sections 1 and 2), E2022/33306  

2        Confidential - Internal Audit Plan 2022 to 2024, E2022/33747  

 


 

Report

Terms of reference

The terms of reference of the Committee are contained in the Audit, Risk and Improvement Committee (the Committee) Constitution which is the subject of a separate report to this meeting.

The Constitution is the governing document for the Committee, establishing the authority and responsibilities conferred on the Committee by Council and its role within Council. The Constitution confirms the function of the Committee as an advisory committee of the Council, stating that it does not have executive power or authority to implement actions, however the Committee will at times make recommendations to Council.

The role of the Committee is, independently of management, to report to Council and provide appropriate advice and recommendations on matters concerning the good corporate governance of Council including performance improvement and risk management.

Secretariat

Corporate and Community Services Directorate will provide Secretariat support to the Committee through undertaking tasks such as ensuring the agenda for each meeting and supporting papers are circulated at least one week prior to the meeting. Minutes will be prepared and taken by Council Secretariat at these meetings, detailing agreed actions. Minutes will be circulated within a reasonable timeframe following the meeting.

The key points of contact for all independent Committee members and the internal audit service provider will be the Governance and Internal Audit Coordinator and the Manager Corporate Services.

Meetings

As per item 6 of the Constitution, the Committee will meet at least quarterly, with one of those meetings to include the review of Council’s financial statements and external audit opinion.  Per item 7, quorum for each meeting is three Committee members.

As per item 2 of the Constitution, the Committee has a legislated duty to keep under review the following aspects of Council’s operations:

a)      Compliance

b)      Risk management

c)      Fraud control

d)      Financial management

e)      Governance

f)       Implementation of the strategic plan, delivery program and strategies

g)      Service reviews

h)      Collection of performance measurement data by Council

i)        Any other matters prescribed by the regulations made under the Act.

The Committee is also to provide information to Council for the purpose of improving Council’s performance of its functions.

The Chairperson may call a meeting if requested to do so by the General Manager, Committee member, the Internal or the External Auditor.

Agenda items for consideration at a Committee meeting can be referred to the Chairperson of the Committee by Council, the General Manager, Committee members, and the Internal or External Auditor.

Obligations of members of the Committee

Members are reminded that at all times in participating as a member of the Committee, they must discharge their duties and responsibilities by exercising honesty, objectivity and probity and not engage knowingly in acts or activities that have the potential to bring discredit to the Council or the Committee.

Item 5.5 of the Constitution states that members must also refrain from entering into any activity that may prejudice their ability to carry out their duties and responsibilities objectively and must at all times act in a proper and prudent manner in the use of information acquired in the course of their duties. Members must not use Council information for any personal gain for themselves or their immediate families or any manner that would be contrary to law or detrimental to the welfare of the Council.

Committee members must not publicly comment on matters relative to activities of the Committee other than as authorised by Council.

Appointment of Chairperson

The Committee should discuss and agree on the appointment of a Chairperson for all meetings. As per item 5.4 of the Constitution the Chairperson of the Committee shall be an independent member elected by Council.  The proposed Chairperson is to be agreed by a majority vote by the members of the Committee; the result being reported to the next available Council meeting as part of the adoption of the Committee minutes.

The Committee should note that if the Chairperson is absent from a meeting, the first business of the meeting will be to elect a Chairperson for that meeting from the independent members present.

This should be the first item of business for this meeting.

Internal Audit Plan 2022-2023

As noted in a report to the Committee on 19 August 2021, Grant Thornton has been engaged as Council’s internal auditor for the period 2021-2024. The Internal Audit Program was prepared by Grant Thornton and endorsed by the Committee on 19 August 2021 and later endorsed by Council on 23 September 2021. The Program was prepared following meetings between Grant Thornton and members of the Executive Team, key managers, and the Chair of the Committee.

As noted in the report to the Committee in August, the Internal Audit Plan may be subject to change as potential issues emerge and/or audit priorities shift.  Since then, as a result of the impact to resources due to the recent flood events, an amended Plan for Quarter 4 of 2021-2022 and for 2022-2023 was endorsed by the Executive Team on 30 March 2022 for possible endorsement by the Committee. Due to these changes, Attachment 1 to this report contains an abridged version of the original Three Year Internal Audit Program 2021-2024 with the separate amended Plan included at Attachment 2 to this report.

Should the Committee endorse the proposed amended Plan, it is intended that the following audits be undertaken by Grant Thornton in Quarter 4 of 2021-2022 and in 2022-2023 (as detailed in Attachment 2):

 

2021-2022

2022-2023

Q1

 

Open Spaces

Q2

Plant and Fleet

Q3

Swimming Pools/Food Safety

Q4

Data Analytics - Payroll

Property Services

Option of 5th review

for determination by the Committee F

Credit/Corporate Cards

CCS    IS    SEE   GM

Key Issues

The timing of the proposed internal audits has been informed by operational and strategic priorities, as well as personnel capacity, to ensure that internal audits optimise value for Council.

Strategic Considerations

Community Strategic Plan and Operational Plan

CSP Objective

CSP Strategy

DP Action

Code

OP Activity

Community Objective 5:  We have community led decision making which is open and inclusive

5.6

Manage Council’s resources sustainably

5.6.7

Develop and embed a proactive risk management culture 

5.6.7.5

Coordinate the Audit Risk and Improvement program

Recent Resolutions

·        21-396 Ordinary Meeting 23 September 2022

Legal/Statutory/Policy Considerations

The performance of the Internal Audit Services is required to be undertaken in accordance with the terms and conditions of Internal Audit Services Contract 2021-001. These terms and conditions require consideration of the NSW Department of Premier and Cabinet, Office of Local Government, Internal Audit Guidelines and compliance with the associated professional accounting and audit standards.

Financial Considerations

There has been budget allocated to resource four internal audits per year in accordance with the tender criteria set by Council, and the contractual arrangements accepted by Grant Thornton.  If the option of a 5th review is endorsed by the Committee, this will need to be scoped to ensure that it can be funded. 

There may be some residual funds in the 2021/22 Internal Audit budget to carry over into 2022/23 to cover some or all of the costs of the 5th review.

Consultation and Engagement

In preparing the Internal Audit Program Grant Thornton consulted with:

·        Council’s Executive Team

·        Manager Finance

·        Manager Corporate Services

·        Manager People and Culture

·        Manager Business Systems and Technology

·        Audit, Risk and Improvement Coordinator

·        Chair, Audit, Risk and Improvement Committee.

 


BYRON SHIRE COUNCIL

Staff Reports - General Manager                                                                              4.2

Report No. 4.2       Fraud and Corruption Control update

Directorate:                         General Manager

Report Author:                   Ralph James, Legal Counsel

File No:                                 I2022/474

Summary:

This report provides an update on the training which has been (and will continue to be) made available to certain staff to aid in Council’s fraud and corruption control.

  

 

 

RECOMMENDATION:

That the Audit, Risk and Improvement Committee note the Fraud and Corruption Control update.

 

 


 

Report

Council has a Fraud and Corruption Control Policy 2019 which sets the framework for the governance approach to managing fraud and corruption. The focus to date has been on training and the implementation of practical measures derived from the training, to address the objective for reducing or removing the potential for fraudulent or corrupt conduct by staff, clients, contractors and suppliers.

Council has looked to courses provided by the Independent Commission Against Corruption (ICAC). Courses have been undertaken by staff at middle management level and those specifically involved in procurement and contract management.

The middle management practical workshop focussed on helping managers prevent corrupt conduct in their organisation by developing an understanding of what corruption is, why people engage in it and the weaknesses in operational arrangements that can be conducive to corruption.

Procurement and contract management are areas regularly investigated by the ICAC. The way that an organisation carries out its procurement and contract management activities has a significant impact on the likelihood of corruption occurring, so the ICAC offers several workshops focusing on corruption prevention in these areas.

These workshops are designed to assist staff with procurement duties, contract management roles or responsibility for overseeing these functions to understand the probity requirements and corruption opportunities associated with procurement. They assist participants to identify where the weaknesses in their procurement systems lie and where opportunities for corruption may be and will help them to understand what they can do to prevent corruption in the procurement context.

In addition, further training on Corruption in Procurement will be delivered by ICAC to key staff on 16 May and 1 June 2022, and tailored procurement training is currently being arranged for the Infrastructure Services teams regarding processes around tendering.

Council conducts ongoing training in its Code of Conduct for staff and councillors. The requirement for Conflict of Interest Declarations for staff, councillors and committee members is also another tool used by Council to manage fraud and corruption.

On 7 March 2022, the Office of Local Government released a new circular to councils regarding the Public-Private Partnerships Guidelines.  Information on the Guidelines and their implementation has been provided to relevant staff.

 

 

 

Strategic Considerations

Community Strategic Plan and Operational Plan

CSP Objective

CSP Strategy

DP Action

Code

OP Activity

Community Objective 5:  We have community led decision making which is open and inclusive

5.6: Manage Council’s resources sustainably

5.6.13: Manage the delivery of high quality cost effective legal services

5.6.13.3

Manage code of conduct matters

Community Objective 5:  We have community led decision making which is open and inclusive

5.5: Manage Council’s finances sustainably

5.5.3: Ensure Council's procurement framework is robust, efficient and effective (SP)

5.5.3.2

Develop and implement internal awareness and training program to upskill staff in procurement

Community Objective 5:  We have community led decision making which is open and inclusive

5.5: Manage Council’s finances sustainably

5.5.3: Ensure Council's procurement framework is robust, efficient and effective (SP)

5.5.3.1

Develop and implement forward procurement plan to ensure compliance with Local Government Act

Legal/Statutory/Policy Considerations

Local Government Act 1993 and Local Government (General) Regulation 2021

Code of Conduct

Procurement Guide

PPP Guidelines

Fraud and Corruption Control Policy 2019

Financial Considerations

There is budget to deliver training, and ICAC training is provided free of charge.

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                    4.3

Staff Reports - Corporate and Community Services

 

 

Report No. 4.3       Audit, Risk and Improvement Committee Performance Assessment for 2021

Directorate:                         Corporate and Community Services

Report Author:                   Alexandra Keen, Contract Management and Procurement Coordinator

File No:                                 I2021/1589

Summary:

To provide a performance self-assessment of the Audit, Risk and Improvement Committee (ARIC) for 2021 in accordance with clause 10 of its constitution.

  

 

 

RECOMMENDATION:

That pursuant to Clause 10 of the Constitution of the Audit, Risk and Improvement Committee that the Audit, Risk and Improvement Committee notes the annual report of the Chair to Council.

 

 

 


 

Report

At the ARIC meeting of 19 August 2021, the Chair of ARIC asked members to reflect on the performance of ARIC over the past year, in order to fulfil the requirements of clause 10 of the ARIC constitution.

The report presented at the meeting on 19 August 2021 (I2021/1297) sought feedback from members on the following:

1.   What is effective

2.   What is not working

3.   Where we would like to see more/less involvement of the ARIC

4.   What should be the standing items (if any)

The ARIC has responsibility for the following matters in accordance with its constitution:

1.   Compliance

2.   Risk Management

3.   Fraud Control

4.   Financial Management

5.   Governance

6.   Implementation of the Strategic Plan, Delivery Program and Strategies

7.   Service Reviews

8.   Collection of Performance Data by Council

9.   Internal Audit

10. External Audit.

Key issues

Effectiveness of the ARIC

The ARIC been effective at demonstrating that it is a committee of improvement and not a place to find blame. From that point, the ARIC has been positive in its feedback.

ARIC’s ability to question internal audit reports has been a positive – it demonstrates that the ARIC is simply not accepting the results of internal audit, but also ensuring that there is accountability.

Having Councillors as members is extremely important as they can often elaborate on specific concerns they have or have heard from constituents. A fully independent ARIC would appear contrary to the governance procedures of most significant organisations which tend to have Boards of executive and non-executive members.

As far as skill mix goes, having someone with local government experience is beneficial as is having people with audit and risk backgrounds. The accounting standards are only going to get more complex. Having members with risk and audit backgrounds that can challenge disclosures, findings and reporting can only improve the external and internal audit process.

Quarterly meetings plus the extraordinary meeting to review the financial statements appears to be working. The meetings should preferably be face-to-face, however, over the last 18 months that has not been possible.

The oversight of the implementation of the Business Continuity Plan (Plan) has been a significant achievement. This Plan has now been tested and implemented over a series of rain and flood events and during Covid 19. It has been “tweaked” where necessary and will continue to be refined as changes occur within Council, however, its existence has shown the benefit that comes from such a plan when events occur.

Based on the above, ARIC concludes that the ARIC has been effective.

Opportunities for improvement of the ARIC

ARIC should consider whether it should have a high-level quarterly review of the financial statements versus the budget – not so much at the micro-level, but at the material balances level to monitor where Council is against budget.

It would be an improvement to have unaudited draft financial statements (GPFS) when drafts are issued to the Auditor-General. The benefit being to have sufficient chance to have some input into what is finally signed off by Council.

ARIC should consider whether it should be briefed in more detail on significant matters during the audit – rather than as part of the exit meeting. For instance, if it is known there will be contention around RFS assets – it is worthwhile considering earlier rather than later Council and ARIC’s position around whether these meet the definition of an asset under the standards.

Suggested areas for priority consideration of the ARIC for 2022

IT security and IT controls would be a priority. Additionally, backup and storage of data and business continuity where IT is interrupted should be considered. IT is becoming the weak point of many organisations. It might be worth investigating whether a program such as “meta compliance” is worth implementing. This program sends regular videos short questionnaires to keep staff alert to cyber issues around security. It also registers participation – whereas email updates will often be overlooked.

Other

ARIC would like to thank Council for the opportunity to serve as Committee Members during the period of the current Council.

 

 

 

 

Strategic Considerations

Community Strategic Plan and Operational Plan

CSP Objective

L2

CSP Strategy

L3

DP Action

L4

OP Activity

Community Objective 5:  We have community led decision making which is open and inclusive

5.6

Manage Council’s resources sustainably

5.6.7

Develop and embed a proactive risk management culture 

5.6.7.5

Coordinate the Audit Risk and Improvement program

Consultation and Engagement

The Chair of ARIC sought consultation and comment from Committee Members at the 19 August 2021 meeting.  Following on from that the Chair has reflected on the comments and his observations during the period of Council.   


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                    4.4

Report No. 4.4       Update on delegations in place 2020-2021

Directorate:                         Corporate and Community Services

Report Author:                   Mila Jones, Governance and Internal Audit Coordinator

File No:                                 I2021/1665

Summary:

This report is presented to the Audit, Risk and Improvement Committee (ARIC) to assist the Committee in fulfilling its obligations under its Constitution and the Local Government Act 1993.

A review of Council’s delegations register is conducted by the Governance Coordinator on an on-going basis and reported to the Executive Team every six months and to the ARIC meeting annually in accordance with the Annual Agenda Schedule.

  

 

 

RECOMMENDATION:

That the Audit, Risk and Improvement Committee notes this report.

Attachments:

 

1        Byron Shire Council Delegations By Category, E2021/129459  

 


 

Report

This report is submitted to assist the Audit, Risk and Improvement Committee in fulfilling its obligations under its Constitution and the Local Government Act 1993.

The Constitution provides at part 4 the Committee’s duties and responsibilities which include:

4.5 Governance

a)      Review whether appropriate processes and systems are in place for the management and exercise of delegations.

The full list of functions and authorities that have been delegated to Council staff and the Mayor is provided at Attachment 1. This register is reviewed and updated six monthly, and may be amended due to legislative changes, policy changes, resolution or otherwise. There is a total of 230 active functions and authorities in Council’s Delegations Register, with the relevant delegations assigned to approximately 300 staff members and the Mayor.

The following reviews of Council’s delegations were undertaken for the period 2020 to 2021.

Review to 31 December 2020

During this review period, the amended legislation listed below was noted to have had no effect on Council’s register of delegations:

1. Biodiversity Conservation Act 2016

2. Biosecurity Act 2015

3. Children and Young Persons (Care and Protection) Act 1998

4. Companion Animals Act 1998

5. Contaminated Land Management Act 1997

6. Crown Land Management Act 2016

7. Environmental Planning and Assessment Act 1979

8. Government Information (Public Access) Act 2009

9. Heritage Act 1977

10. Impounding Act 1993

11. Land Acquisition (Just Terms Compensation) Act 1991

12. Land and Environment Court Act 1979

13. Liquor Act 2007

14. Local Government Act 1993

15. Ombudsman Act 1974

16. Protection of the Environment Operations Act 1997

17. Protection of the Environment Operations (Waste) Regulation 2014

18. Public Health Act 2010

19. Public Interest Disclosures Act 1994

20. Public Works and Procurement Act 1912

21. Roads Act 1993

22. Road Rules 2014

23. Road Transport Act 2013

24. Rural Fires Act 1997

25. State Emergency and Rescue Management Act 1989

26. Strata Schemes Development Act 2015

27. Strata Schemes Management Act 2015

28. Swimming Pools Act 1992

29. Water Management Act 2000

30. Work Health and Safety Act 2011

31. Workers Compensation Act 1987

Repealed legislation

In addition to the above Acts which were amended in the last six months, the following legislation was repealed and replaced. This legislation became effective from 1 July 2020:

Building Professionals Act 2005:  This was repealed and replaced by the Building and Development Certifiers Act 2018 and the Building and Development Certifiers Regulation 2020.

This change resulted in a new delegation (DEG128) being included in Council’s Delegation Register as noted in Table 1 below.

Delegations for consideration

During this period, the following delegations were considered and amended or added following endorsement by the Executive Team based on the recommendations provided:

Table 1

Delegation

Suggested update / information

Recommendation

Currently applied:

DEG005
To approve payment to contractors and creditors.

Include the red text:

DEG005
To approve payment to contractors and creditors including the release of any retention money, bank guarantee or bond held by Council as security.

The current delegation is held by Council’s Property Maintenance Coordinator and is applicable to the position’s contract purchasing. The position has in the past retained money, held a bank guarantee or a bond for security. In this case the addition would appear to be relevant, although rarely used.

Considering the Coordinator position has previously been required to perform the duty specified in red text, and that the text provides clarity, it is recommended that the Executive Team endorses the red text being added to this delegation.

 

Currently applied:

DEG113
In accordance with Council's Tree Preservation Order to approve or refuse applications from residents to prune, top, lop or remove trees either on the applicant's property or Council's property subject to the payment of any required fee.

Amend the delegation to read:

DEG113
To approve or refuse an application for a Vegetation Removal Permit under the State environmental Planning Policy (Vegetation in Non-Rural Areas) 2017, or an application under any other applicable Environmental Planning Instrument, to prune, top, lop or remove trees or vegetation either on the applicant’s property or Council’s property, subject to the payment of any required fee.

The current delegation is held by Council’s Team Leader Planning Services.  Upon consulting with the Team Leader, he believes that the change is warranted.

It is recommended that the Executive Team endorses the change to this delegation.

Currently applied:

DEG114
To issue Parking Infringement Notices on behalf of the Council for offences listed in the Fixed Penalty handbook under the Self Enforcing Infringement Notice Scheme and in conjunction and as agreed with the Police Service.

Remove the text shown as red strikethrough:

DEG114
To issue Parking Infringement Notices on behalf of the Council for offences listed in the Fixed Penalty handbook under the Self Enforcing Infringement Notice Scheme and in conjunction and as agreed with the Police Service.

The current delegation is held by all enforcement staff.  Upon consulting with the Manager Public and Environmental Services, the Manager advises that the change is warranted as Council’s infringement notices are not issued in conjunction and as agreed with the Police Service.

It is recommended that the Executive Team endorses the change to this delegation.

Not currently applied:

DEG128
To act as registered certifier in accordance with the Building and Development Certifiers Act 2018

This delegation has not previously been taken up by us.  It was brought to the attention of the Governance Coordinator while updating the repealed Act to the new Building and Development Certifiers Act 2018.

It may be worth considering the inclusion of this delegation in our Register since:

-  By assigning this delegation to registered certifiers, Council is explicitly authorising those registered to perform certifier duties for Council.

-  Some regional councils have staff that act as a registered certifier for other local government areas where certifiers are hard to come by. In these areas the councils have tended to want a delegation confirming the further role the employee can undertake, eg certify work not specifically related to their council.

-  A council may only require some of its employed certifiers to perform this duty, and not others, therefore having to designate this with a delegation.

Considering the information provided, if solely for the first point, it is recommended that the Executive Team endorse the inclusion of DEG128 and apply it to Council’s registered certifiers.

Currently applied:

DEG180
Sign Building Information Certificates and Related Correspondence - Environmental Planning and Assessment Act 1979

Remove as it is duplicated by DEG182 which is more explanatory than DEG180.

DEG182
To approve, refuse and sign all building information certificates and certificates of classifications and certificates of occupancies required under the Local Government Act 1993 the Environmental Planning and Assessment Act 1979 and Environmental Planning and Assessment Regulation 2000 and/or the Building Code of Australia.

DEG180 is currently assigned to our Building Services Coordinator and Building Certifiers.

It is recommended that DEG180 be replaced by DEG182.

New Delegation:

DEG263
To administer the provisions and functions of the Children’s Guardian Act 2019 and associated Regulation.

This new delegation has been provided on account of the introduction of the Children’s Guardian Act 2019.

As this is a new delegation it has not yet been assigned to any children’s services staff.

The paramount consideration of this Act is stated as “The safety, welfare and wellbeing of children, including protecting children from child abuse, is the paramount consideration in decision-making under this Act and the regulations and in the operation of this Act and the regulations generally.”

At least until our children’s services function is moved to the co-operative model, it is recommended that the Executive Team delegates this function to the Children Services Manager.

Review to 30 June 2021

During this review period, the amended legislation listed below was noted to have had minimal effect on Council’s register of delegations. Most of the amendments to this legislation arose as a result of the renaming of the Roads and Maritime Service to Transport for NSW. Those pieces of legislation marked below with an * denote changes that were made as a result of the COVID-19 pandemic, and did not have a direct impact on delegations:

1. Aviation Transport Security Act 2004 (Cth);

2. Biodiversity Conservation Act 2016;*

3. Biosecurity Act 2015;

4. Community Land Management Act 1989;

5. Crown Land Management Act 2016; *

6. Environmental Planning and Assessment Act 1979; *

7. Fire and Rescue NSW Act 1989;

8. Government Information (Public Access) Act 2009;

9. Graffiti Control Act 2008;

10. Heavy Vehicle National Law (NSW) 2013;

11. Impounding Act 1993;

12. Liquor Act 2007;

13. Local Government Act 1993;

14. Protection of the Environment Operations Act 1997; *

15. Protection of the Environment Operations (Clean Air) Regulation 2010;

16. Public Health Act 2010;

17. Public Works and Procurement Act 1912;

18. Radiocommunications Act 1992 (Cth);

19. Real Property Act 1900;

20. Recreation Vehicles Act 1983;

21. Roads Act 1993;

22. Road Rules 2014;

23. Road Transport Act 2013;

24. Rural Fires Act 1997;

25. Strata Schemes Management Act 2015;

26. Waste Avoidance and Resource Recovery Act 2001; *

27. Water Management Act 2000; *

28. Workers Compensation Act 1987;

29. Workplace Injury Management and Workers Compensation Act 1998.

Delegations for consideration

During this period, the following delegations were considered and amended or added following endorsement by the Executive Team based on the recommendations provided:

Table 2

Delegation

Suggested update / information

Recommendation

New delegation:

DEG264
To administer the provisions and functions of the Surveying and Spatial Information Act 2002

The Surveying and Spatial Information Act 2002 makes provision with respect to the functions of the Surveyor-General, the registration of surveyors, the control of surveys and the constitution and functions of the Board of Surveyors and Spatial Information; and for other purposes.

The Act includes local government as a public authority.  The objects of the Act are shown here.

One of this Act’s provisions is for entry to land for survey purposes.

Note: Holders of this delegation are required to carry a certificate of authority.

Following communication with various managers, the Acting Manager Works has recommended:

That the Executive Team endorses the inclusion of delegation DEG264 and applies it to the positions of Engineering Surveyor, Technical Officer Survey and Design, Infrastructure Planning Coordinator (and by default the Manager Works and Director Infrastructure Services).

Currently applied:

DEG060
Negotiate and Enter into Leases, Licences, and other Legal Transactions

Include the red text:

DEG060
Negotiate and Enter into Leases, Licences, Memorandum of Understanding and other Legal Transactions

Authority to negotiate and enter into any form of Lease, Licence, Memorandum of Understanding or other transaction for use of land or assets, subject to compliance with the Local Government Act 1993, and subject to the General Manager and/or CEO making reasonable enquiries into the appropriate payments to be made to Council and consulting with Council’s solicitor to determine the appropriate format of the legal agreement.

The current delegation is held by Council’s Legal Counsel and the Leasing Coordinator.

It is recommended that the Executive Team endorses the red text being added to this delegation.

Currently applied:

DEG083
Issue Notices of Intention to Issue Orders and Orders under the Local Government Act 1993

Remove text shown as red strikethrough:

Issue Notices of Intention to Issue Orders under section 124 and section 132 the Local Government Act 1993 for failing to manage excessive vegetation

Section 124 is broader than vegetation.

This delegation is held by various Sustainable Environment officers and Public and Environmental Services officers

It is recommended that the Executive Team endorses the red text being removed from this delegation as indicated.

Key issues

The delegations assigned to the Mayor and staff are based on the position they hold in Council and the tasks they are required to perform in that position. Staff are at risk of undertaking their roles illegally or not in accordance with Council’s resolutions or policies, when acting outside their delegations or by having incorrect delegations assigned to them.

To increase understanding and acceptance of delegations, the Mayor and staff are required to acknowledge each function and authority either electronically within the Delegations Register or in writing.  This is done upon commencement of their role or when delegations change.

Strategic Considerations

Community Strategic Plan and Operational Plan

 

CSP Objective

L2

CSP Strategy

L3

DP Action

L4

OP Activity

 

Community Objective 5:  We have community led decision making which is open and inclusive

5.2

Create a culture of trust with the community by being open, genuine and transparent

5.2.3

Provide access to publicly available corporate registers

5.2.3.1

Maintain, publish and report on relevant registers including delegations, Councillors and designated staff disclosures of interests, Councillor and staff gifts and benefits, and staff secondary employment

Strategic Risk Register

Delegations are listed as a control measure in Council’s Strategic Risk Register with regard to corporate compliance risk:

Risk Title

Risk Description

Causes

Existing Controls

Corporate Compliance

Council does not implement adequate processes and controls to ensure corporate compliance across the organisation and prevent fraud and corruption leading to significant illegal, fraudulent or corrupt activity and/or breach of legislative or regulatory, requirements resulting in penalties/sanctions, legal disputes or litigation and financial loss

Inadequate process and controls,
Lack of staff awareness and training,
Inadequate auditing/monitoring of assets,
Unauthorised/inappropriate release of confidential information,
Poor compliance culture,
Fraudulent intent

Legislative Compliance Framework,
Code of Conduct,
Fraud and Corruption Control Policy,
Internal Reporting Policy,
Delegations,
Disability Inclusion Action planning,
IT Standards,
Internal/external audit,
Security systems (eg CCTV) and monitoring systems,
Staff induction program and refresher training,
In house legal team,
Crime and cyber protection insurance

Recent Resolutions

Not applicable

Legal/Statutory/Policy Considerations

As identified in the tables within this report.

Financial Considerations

There are no financial considerations.

Consultation and Engagement

Consultation is held with relevant managers and the Executive Team prior to making any amendments to Council’s Delegations Register.

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                    4.5

Report No. 4.5       Status of Council Policies 2020-2021

Directorate:                         Corporate and Community Services

Report Author:                   Mila Jones, Governance and Internal Audit Coordinator

File No:                                 I2021/1666

Summary:

This report is submitted to the Audit, Risk and Improvement Committee to assist the Committee in fulfilling its obligations under its Constitution and the Local Government Act 1993.

An important component of public sector governance is establishing key policies and ensuring they are available, regularly updated and monitored for compliance.

An annual review of Council’s policies is conducted by the Governance Coordinator and coordinated with relevant document development officers.  This report is submitted to the ARIC annually in accordance with the Annual Agenda Schedule.

  

 

 

RECOMMENDATION:

That the Audit, Risk and Improvement Committee notes the status of Council’s policies as provided in this report.

Attachments:

 

1        Status of Policies as at 30 June 2021, E2021/128503  

 


 

Report

This report is submitted to assist the Audit, Risk and Improvement Committee in fulfilling its obligations under its Constitution and the Local Government Act 1993.

The Constitution provides at part 4 the Committee’s duties and responsibilities which include:

4.1 Compliance

a)      Review whether management has in place relevant policies and procedures, and these are periodically reviewed and updated.

In response to a previous internal audit recommendation (2017 Internal Audit of Corporate Compliance and Policy Management), Council has improved its commitment to and resourcing of, the coordination, review and maintenance of Council’s policies, to support ongoing improvement. 

Policy status as at 30 June 2021

As at 30 June 2021 Council had 105 adopted Council policies which are published on Council’s website.

The status of the 105 policies was:

Status as at 30/06/21

Number

Percentage

Current

77

80%

Submitted to Council

5

5%

Review Initiated

11

11%

Overdue for Review

4

4%

It was also determined in 2020/21, that a further 8 policies (not included in the table above) were redundant and these were endorsed for repeal by Council. 

These figures show a considerable increase in the currency of Council’s policies compared to previous years. At 30 October 2020 for example, 50% of policies were current and 29.8% overdue.  On 30 June 2019 only 27.4% of policies were current.  These figures indicate a continuing positive trend. 

 

Next steps – Review 2021-2022

The policy review for 2021 -2022 has commenced. Staff continue to review Council policies, with the Governance team providing the processes and framework to support currency across the organisation.

A rolling four year policy review timetable has been developed to assist the review process.  It has been included in this report at Attachment 1. This timetable is subject to change where updates to legislation may require certain policies to be reviewed sooner than anticipated.

Strategic Considerations

Community Strategic Plan and Operational Plan

 

CSP Objective

L2

CSP Strategy

L3

DP Action

L4

OP Activity

Community Objective 5:  We have community led decision making which is open and inclusive

5.2

Create a culture of trust with the community by being open, genuine and transparent

5.2.3

Provide access to publicly available corporate registers

5.2.3.2

Review, update and publish Council policies online and report on the status of Council’s policy register

 

Community Objective 5:  We have community led decision making which is open and inclusive

5.2

Create a culture of trust with the community by being open, genuine and transparent

5.2.1

Provide timely, accessible and accurate information to the community

5.2.1.6

Review and update Council business templates for consistency and accessibility

 

Legal/Statutory/Policy Considerations

Councils have a number of statutory policies that it must adopt, the others are optional. These optional policies are useful to:

·     reflect a council’s key issues and responsibilities

·     guide staff and ensure consistency

·     clearly inform the public of a council’s commitments

Not keeping abreast of the most recent developments in legislative requirements, and the community’s and Council’s position on certain matters, undermines confidence in Council’s decision making process. This in turn, may have an adverse impact on Council’s reputation.

Additionally, the risk of maintaining outdated policy positions is that persons may form the incorrect view that certain activities are still acceptable or legal.

Financial Considerations

There are no financial implications.

Consultation and Engagement

Manager Corporate Services

Governance Coordinator

Managers

Document Development Officers

Executive Team

Council

Public via exhibition periods

Note: All Council Policies are available on Council’s website at Policies - Byron Shire Council (nsw.gov.au)

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                    4.6

Report No. 4.6       2021/22 Operational Plan Report - Q1 - September 2021

Directorate:                         Corporate and Community Services

Report Author:                   Heather Sills, Corporate Planning and Improvement Coordinator

File No:                                 I2021/1764

Summary:

Summary:

Council’s Operational Plan outlines its projects and activities to achieve the commitments in its four-year Delivery Program. In accordance with the Local Government Act 1993 progress reports must be provided at least every six months.

The proposed amendments to the Local Government Act suggest increased involvement of ARIC in the oversight of Council’s Integrated Planning and Reporting practices. In preparation for this requirement and as good practice, ARIC requested a regular quarterly report be provided for information, summarising Council’s progress towards achieving the annual activities contained in the 2021/22 Operational Plan.

This report is the first quarterly progress report for the period 1 July to 30 September 2021.

  

 

 

RECOMMENDATION:

1.      That ARIC notes the 2021/22 Operational Plan Quarter 1 Report (#E2021/132378) and the proposed amendments (#E2021/120213) being reported to Council at the 25 November Ordinary Meeting.

Attachments:

 

1        Operational Plan 2021/22 - Quarterly Report - Q1 - 1 July to 30 September 2021, E2021/132378  

2        Quarter 1 Report - Proposed Amendments to Operational Plan 2021/22, E2021/120213  

 


 

Report

The Delivery Program and Operational Plan are two key corporate documents that establish Council’s goals and priorities for the term of the Council and the current financial year. The Delivery Program is supported by the annual Operational Plan, which identifies the individual projects and activities that will be undertaken for the year to achieve the commitments made in the Delivery Program.

The General Manager is required to provide six monthly progress reports to the Council on the progress toward the delivery program, in accordance with the Local Government Act 1993 s404 which states:

“The general manager must ensure that regular progress reports are provided to the council reporting as to its progress with respect to the principal activities detailed in its delivery program. Progress reports must be provided at least every 6 months

While the requirement is six monthly reporting, the Council is provided with a Quarterly Report on the activities in the Operational Plan, to promote effective and efficient reporting and decision making.

Strategic Objectives

The report (#E2021/4352) is structured by the five ‘Our Byron, Our Future’ Community Strategic Plan 2028 objectives:

·        Community Objective 1:     We have infrastructure, transport and services which meet our expectations

·        Community Objective 2:     We cultivate and celebrate our diverse cultures, lifestyle and sense of community

·        Community Objective 3:     We protect and enhance our natural environment

·        Community Objective 4:     We manage growth and change responsibly

·        Community Objective 5:     We have community led decision making which is open and inclusive

Report Details

The report details Council’s progress towards achieving the activities in the 2020/21 Operational Plan. It includes a status update on progress and notes any highlights or exceptions where actions may be delayed or reprioritised. 

Each section notes the progress against the activities including:

·        Activity

·        Responsible directorate

·        Measure

·        Timeframe

·        Comments

·        Status

o   On track – indicates that an activity is currently on track, taking into account the timeframe, measures, and budget

o   Delayed – indicates that an activity is progressing, but not currently on track with the timeframe, measures, or budget

o   Needs attention – indicates that the scope of the activity may need to be reviewed in line with constraints such as timeframe/budget

o   Not commenced – the activity is not due to have commenced or has not commenced

o   Completed – the activity has been completed in accordance with the prescribed measures

Summary of Activities

The chart below provides a summary of the status of the Operational Plan activities as at 30 September 2021.

Proposed Amendments

This is the first quarterly report of the 2021/22 Operational Plan. A number of required amendments have been identified and nine new activities proposed. These are provided in attachment 2 (E2021/120213) for Council’s endorsement.

Strategic Considerations

Community Strategic Plan and Operational Plan

CSP Objective

CSP Strategy

DP Action

Code

OP Activity

Community Objective 5:  We have community led decision making which is open and inclusive

5.2: Create a culture of trust with the community by being open, genuine and transparent

5.2.1: Provide timely, accessible and accurate information to the community

5.2.1.1

Review Operational Plan annually

 

Legal/Statutory/Policy Considerations

The General Manager is required under Section 404 (5) of the Local Government Act 1993 to provide regular progress reports as to the Council’s progress with respect to the principal activities detailed in the Delivery Program/Operational Plan.  Progress reports must be provided at least every six months.

Financial Considerations

Council’s financial performance for the reporting period is addressed in the Quarterly Budget Review, which is subject to a separate report included in this business paper.

Consultation and Engagement

The development of the Delivery Program was informed by extensive engagement around the Community Strategic Plan and specifically a Community Solutions Panel on infrastructure priorities.

The progress reports on the Operational Plan and Delivery Program are published on Council’s website as a way of ensuring transparency around how Council is progressing activities and actions.

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                    4.7

Report No. 4.7       Draft Audit, Risk and Improvement Committee Constitution and 2022 Agenda Schedule

Directorate:                         Corporate and Community Services

Report Author:                   Mila Jones, Governance and Internal Audit Coordinator

File No:                                 I2022/340

Summary:

The purpose of this report is to present a draft Constitution and 2022 Agenda Schedule for consideration and endorsement by the Audit, Risk and Improvement Committee.

  

 

 

RECOMMENDATION:

That the Audit, Risk and Improvement Committee:

1.      Considers the current draft Audit, Risk and Improvement Committee Constitution (Attachment 1 E2021/148820) adopted by Council on 3 February 2022 and provides feedback to the Chair by 2 June 2022.

2.      Submits the Audit, Risk and Improvement Committee Constitution, with any amendments based on feedback from the Committee to Council for adoption. Should there be no amendments, the adopted Constitution remains as the current version.

3.      Considers and endorses the Agenda Schedule for 2022 (Attachment 2 E2022/32044).

Attachments:

 

1        Audit, Risk and Improvement Committee Constitution 2022, E2021/148820  

2        DRAFT Audit, Risk and Improvement Committee Agenda Schedule 2022, E2022/32044  

 


 

Report

The Audit, Risk and Improvement Committee (Committee) is a committee of Council under section 355 of the Local Government Act 1993 (Act). The Committee is an advisory Committee of Council and does not have financial delegation. The Audit, Risk and Improvement Committee Constitution (Constitution) establishes the authority and responsibilities conferred on the Committee by Council and the role of the Committee within Council.

The current Constitution was adopted by Council on 3 February 2022 (resolution 22-026). This most recent version of the Constitution brings the document into alignment with the Office of Local Government Guidelines which are expected to be implemented from 1 July 2022. It sets the Committee’s legislated duty to keep under review certain aspects of Council’s operations and provides the roles and responsibilities of the Committee as set out in the Act.

The draft Agenda Schedule for 2022 contains items to be considered at each meeting to assist the Committee in fulfilling its obligations under the Constitution and the Act. It should be noted that the meetings in the draft 2022 Agenda Schedule exclude the usual meeting in the first quarter of the year (approx. March). This is due to the lateness of the 2022 election and the process of renewing Council’s committees for this term of Council.

Next steps

It is envisaged that the Committee will review the Constitution, and if changes are necessary, a draft document is reported to Council for adoption. An Agenda Schedule will be prepared annually.

Strategic Considerations

Community Strategic Plan and Operational Plan

CSP Objective

L2

CSP Strategy

L3

DP Action

L4

OP Activity

Community Objective 5:  We have community led decision making which is open and inclusive

5.6

Manage Council’s resources sustainably

5.6.7

Develop and embed a proactive risk management culture 

5.6.7.4

Coordinate the Audit Risk and Improvement program

Recent Resolutions

·        22-026 3 February 2022

Legal/Statutory/Policy Considerations

section 428A of the Local Government Act 1993

Financial Considerations

Nil for this report

Consultation and Engagement

Consultation on the current Constitution was via a Council report on 3 February 2022. Consultation with the Committee on the Constitution and the 2022 Agenda Schedule is via this report.

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                    4.8

Report No. 4.8       Operational Plan 2021/22 Quarter 3 Report - Q3 - 1 January to 31 March 2022

Directorate:                         Corporate and Community Services

Report Author:                   Heather Sills, Corporate Planning and Improvement Coordinator

File No:                                 I2022/467

Summary:

Council’s Operational Plan outlines its projects and activities to achieve the commitments in its four-year Delivery Program. In accordance with the Local Government Act 1993 progress reports must be provided at least every six months.

  

 

 

RECOMMENDATION:

That the Audit, Risk, and Improvement Committee notes the 2021/22 Operational Plan Quarter 3 Report for the period ending 31 March 2022 (Attachment 1 #E2022/39295).

Attachments:

 

1        Operational Plan Quarterly Report - Q3 - 1 January to 31 March 2022, E2022/39295  

 


 

Report

The Delivery Program and Operational Plan are two key corporate documents that establish Council’s goals and priorities for the term and the current financial year. The Delivery Program is supported by the annual Operational Plan, which identifies the individual projects and activities that will be undertaken for the year to achieve the commitments made in the Delivery Program.

The General Manager is required to provide six monthly progress reports to the Council on the Delivery Program. While the requirement is six monthly reporting, Council is provided with a Quarterly Report on the activities in the Operational Plan, to promote effective and efficient reporting and decision making.

Strategic Objectives

The report (#E2021/97874) is structured by the five ‘Our Byron, Our Future’ Community Strategic Plan 2028 objectives:

 

·        Community Objective 1:     We have infrastructure, transport and services which meet our expectations

·        Community Objective 2:     We cultivate and celebrate our diverse cultures, lifestyle and sense of community

·        Community Objective 3:     We protect and enhance our natural environment

·        Community Objective 4:     We manage growth and change responsibly

·        Community Objective 5:     We have community led decision making which is open and inclusive

 

Result by CSP Theme

Chart, bar chart

Description automatically generated

Report Details

The report details Council’s achievement of the activities in the 2021/22 Operational Plan. It includes a status update on progress and notes any highlights or exceptions where actions were delayed or reprioritised. 

Each section notes the progress against the activities including:

·        Activity

·        Responsible directorate

·        Measure

·        Timeframe

·        Comments

·        Status

o   On track – indicates that an activity is currently on track, taking into account the timeframe, measures, and budget

o   Delayed – indicates that an activity is progressing, but not currently on track with the timeframe, measures, or budget

o   Needs attention – indicates that the scope of the activity may need to be reviewed in line with constraints such as timeframe/budget

o   Awaiting Funding - awaiting grant or other external funding

o   Not commenced – the activity is not due to have commenced or has not commenced

o   Completed – the activity has been completed in accordance with the prescribed measures

Strategic Considerations

Community Strategic Plan and Operational Plan

CSP Objective

CSP Strategy

DP Action

Community Objective 5:  We have community led decision making which is open and inclusive

5.2: Create a culture of trust with the community by being open, genuine and transparent

5.2.1: Provide timely, accessible and accurate information to the community

Legal/Statutory/Policy Considerations

The General Manager is required under Section 404 (5) of the Local Government Act 1993 to provide regular progress reports as to the Council’s progress with respect to the principal activities detailed in the Delivery Program/Operational Plan.

“The general manager must ensure that regular progress reports are provided to the council reporting as to its progress with respect to the principal activities detailed in its delivery program. Progress reports must be provided at least every 6 months

 

 

Financial Considerations

Council’s financial performance for the reporting period is addressed in the Quarterly Budget Review, which is the subject of a separate report to the Finance Committee and Council.

Consultation and Engagement

The development of the Delivery Program was informed by extensive engagement around the Community Strategic Plan and specifically a Community Solutions Panel on infrastructure priorities.

The progress reports on the Operational Plan and Delivery Program are published on Council’s website as a way of ensuring transparency around how Council is progressing activities and actions.  


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                    4.9

Report No. 4.9       Delivery Program - Workshop Session

Directorate:                         Corporate and Community Services

Report Author:                   Heather Sills, Corporate Planning and Improvement Coordinator

File No:                                 I2022/517

Summary:

The draft Delivery Program 2022-26 and Operational Plan 2022/23 is currently on public exhibition. Council is seeking feedback from community and stakeholders.

Advisory committees are asked to contribute to this process, specifically addressing the Community Objectives and Strategies related to their areas of interest and expertise.

  

 

 

RECOMMENDATION:

That the Audit, Risk, and Improvement Committee provide input into the development of the draft Delivery Program 2022-26 (Attachment 1 E2022/19411) and draft Operational Plan (Attachment 2 E2022/41016).

Attachments:

 

1        Draft Delivery Program 2022-26, E2022/19411  

2        Draft Operational Plan 2022/23, E2022/41016  

 


 

Report

The draft Community Strategic Plan (CSP) has been developed to guide long term future planning to meet the needs and aspirations of the community.  This review was an opportunity for Council to consider the objectives and strategies which sit at the highest level of Council’s planning hierarchy to set the framework for the Delivery Program.

Outcomes

The review of the Community Strategic Plan is an evolution of the 2028 Community Strategic Plan. The review has led to a revised ‘vision’ and redefined the five community objectives.

Vision - Our Byron Shire is a ‘meeting place’: Where all people can come together to connect, share, grow, inspire, and create positive change.

The community objectives, while retaining the five original themes, have been refreshed to ensure continuing relevance, based on feedback from the community.

The inclusion of values-based terminology at the heading level seeks to better reflect community values and aspirations: Effective, Inclusive, Nurtured, Ethical, and Connected.

The associated strategies have also been redefined and realigned with the community objectives to more clearly articulate the intended priorities and aspirations of the community. A summary is below:

Community Objective 1: Effective Leadership – We have effective decision making and community leadership that is open and informed.

Strategies:

1.1    Enhance trust and accountability through open and transparent leadership

1.2    Engage and involve community in decision making

1.3    Ethical and efficient management of resources

1.4    Enhance organisation capability through innovative practices and regional partnerships

1.5    Empower community leadership through collaboration, capacity building, and cultivating community driven initiatives

Community Objective 2: Inclusive Community – We have an inclusive and active community where diversity is embraced, and everyone is valued.

Strategies:

2.1    Foster opportunities to express, celebrate and participate in arts and cultural activity

2.2    Enhance safety and contribute to the physical, mental, and spiritual health and wellbeing of our people

2.3    Respect Aboriginal culture, value cultural knowledge, and acknowledge history

2.4    Enrich lifelong learning and education and support services to help young people thrive

2.5    Create social impact and initiatives that address disadvantage

Community Objective 3: Nurtured Environment – We nurture and enhance our natural environment.

Strategies:

3.1    Partner to nurture and enhance our biodiversity, ecosystems, and ecology

3.2    Deliver initiatives and education programs to encourage protection of our environment

3.3    Protect the health of our coastlines, estuaries, waterways, and catchments

3.4    Support and empower our community to adapt to, and mitigate our impact on climate change

3.5    Minimise waste and encourage recycling and resource recovery practices

 

Community Objective 4: Ethical Growth – We manage growth and change responsibly

 

Strategies:

4.1    Manage responsible development through effective place and space planning

4.2    Enable housing diversity and support people experiencing housing insecurity

4.3    Promote and support our local economy

4.4    Foster sustainable visitation and the impacts of tourism on the Shire

4.5    Support a resilient community that can adapt and respond to change

 

Community Objective 5: Connected Infrastructure – We have connected infrastructure, transport, and facilities that are safe, accessible, and reliable.

 

Strategies:

5.1    Provide a safe, reliable, and accessible transport network

5.2    Connect the Shire through integrated transport services

5.3    Invest in renewable energy and emerging technologies

5.4    Provide accessible community facilities and open spaces

5.5    Provide continuous and sustainable water and sewerage management

Delivery Program and Operational Plan

Cascading out of the ten-year strategies of the CSP come the four year actions in the Delivery Program. The Delivery Program outlines Council’s commitment to the community on how it will work towards the CSP strategies during its term. The annual activities in the Operational Plan detail how Council works towards the Delivery Program year by year.

The Audit, Risk, and Improvement Committee is asked to consider and inform the development of the Delivery Program actions.

A brief workshop session will be held as part of the meeting to provide opportunities for input and discussion.

Strategic Considerations

Community Strategic Plan and Operational Plan

CSP Objective

CSP Strategy

DP Action

Code

OP Activity

Community Objective 5:  We have community led decision making which is open and inclusive

5.2: Create a culture of trust with the community by being open, genuine and transparent

5.2.1: Provide timely, accessible and accurate information to the community

5.2.1.2

Undertake a community engagement program to review and develop Council's Integrated Planning and Reporting framework documents

Legal/Statutory/Policy Considerations

The requirements for the Community Strategic Plan are governed by Section 402 of the Local Government Act 1993.

Further requirements are outlined in sections 403-406 and in the Integrated Planning and Reporting Guidelines and Handbook.

Financial Considerations

Not applicable.

Consultation and Engagement

This discussion forms part of the community engagement program, as outlined in the Community Engagement Strategy for the Community Strategic Plan.


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                    5.1

Confidential Reports - Corporate and Community Services

 

Report No. 5.1       Confidential - Quarter 1 - 2021-22 Internal Audit Report

Directorate:                         Corporate and Community Services

Report Author:                   Alexandra Keen, Contract Management and Procurement Coordinator

File No:                                 I2021/1677

Summary:

This report presents the Internal Audit Status Report for Quarter 1 2021-22. No new internal audits were completed during Quarter 1 2021-22 due to the internal audit planning process for the next three years.

The new internal auditor, Grant Thornton, will provide its first internal audit report on Pay Parking at the first meeting of the Audit, Risk and Improvement Committee (ARIC) meeting in 2022. Grant Thornton will also provide a review of internal audit action status tracking at the first meeting next year.

Since the August 2021 ARIC meeting four internal audit recommendations have been completed and/or endorsed by the Executive Team for closure.

 

RECOMMENDATION:

1.      That pursuant to Section 10A(2)(d)i and (f) of the Local Government Act, 1993, Council resolve to move into Confidential Session to discuss the report Quarter 1 - 2021-22 Internal Audit Report.

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

b)      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:

nature and content of internal audit report is for operational purposes only.  

Attachments:

 

1        Internal Audit Status Report - Quarter 1 2021-22, e2021/123033  

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                    5.2

Report No. 5.2       Confidential - Quarter 1 - 2021-22 Risk Report

Directorate:                         Corporate and Community Services

Report Author:                   Alexandra Keen, Contract Management and Procurement Coordinator

File No:                                 I2021/1676

Summary:

This report presents an update on Council’s risk registers for the quarter ending 30 September 2021.

 

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 Quarter 1 - 2021-22 Risk Report.

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  

Attachments:

 

1        Strategic and Operational Risk Report Q1 2021-22, E2021/123009  

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                    5.3

Report No. 5.3       Confidential - Cyber Security and IT System Outages Quartertly Update

Directorate:                         Corporate and Community Services

Report Author:                   Colin Baker, Manager Business Systems and Technology

File No:                                 I2021/1761

Summary:

This report provides a summary of cyber security incidents and IT service outages during the period from 1 July 2021 to 30 September 2021.

One IT system outage was recorded during the reporting period; Council’s online mapping web portal was taken offline for a day to address a cyber security vulnerability.

A number of cyber security events occurred, none resulting in data loss or compromise of data integrity.

 

 

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 Cyber Security and IT System Outages Quartertly 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 security risk and vulnerabilities that could assist unauthorised threats to Council's information and systems  

 

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                    5.4

Report No. 5.4       Confidential - 2021 Year End Audit Management Letter

Directorate:                         Corporate and Community Services

Report Author:                   James Brickley, Manager Finance

File No:                                 I2021/1774

Summary:

Council has received the 2021 Year End Audit Management Letter from the External Auditor, the Audit Office of NSW, relating to the 2020/2021 financial year audit. The Year End Audit Management Letter details three items for management to consider and provides recommendations to improve internal controls and financial reporting processes.

Each of the audit matters raised in the 2021 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 2021 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:

Nature and content of audit reports is for operational purposes and report details information about Council systems, controls and processes.  

Attachments:

 

1        Confidential - 2021 Year End Audit Management Letter recevied from the Audit Office of NSW including Management comments, E2021/134818  

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                    5.5

Report No. 5.5       Confidential - External Audit Actions Quarter 1 2021-2022 Update

Directorate:                         Corporate and Community Services

Report Author:                   James Brickley, Manager Finance

File No:                                 I2021/1775

Summary:

This report provides and update on the audit matters raised in the 2020 External Audit Year End Management Letter, the 2020 External Audit Interim Management Letter and the 2019 External Audit Year End Management Letter for the quarter ending 30 September 2021.

Council was not issued with a 2021 External Audit Interim Management Letter and the 2021 Year End Audit Management Letter recently received is subject to another report to this Meeting of 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 External Audit Actions Quarter 1 2021-2022 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:

Nature and content of audit reports is for operational purposes and report details information about Council systems, controls and processes.  

Attachments:

 

1        Confidential - External Audit Activity Report Quarter 1 2021-2022 reported to ARIC 11 November 2021, E2021/134994  

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                    5.6

Report No. 5.6       Confidential - Internal Audit Report - 2021-2022 Quarters 2 and 3

Directorate:                         Corporate and Community Services

Report Author:                   Mila Jones, Governance and Internal Audit Coordinator

Alexandra Keen, Acting Manager Corporate Services

File No:                                 I2022/147

Summary:

This report presents the Internal Audit Recommendations Summary Reports for Quarters 2 and 3 2021-2022 prepared by the Internal Auditor, Grant Thornton (GT). The reports are at Confidential Attachments 1 (E2022/15709) and 2 (E2022/37933). It also presents the full internal audit status reports prepared by Council for Quarters 2 and 3 which are at Attachments 3 (E2022/8328) and 4 (E2022/33146).

These status reports contain the remaining recommendations from each audit review conducted by Council’s previous internal audit provider.

This report also presents the following internal audits completed by GT:

·        Internal Audit of Pay Parking (January 2022). The report is at Confidential Attachment 5 (E2022/10589).

This audit received a review rating of Acceptable and it identified two medium and two minor rated issues. Agreed recommendations and actions are included in Confidential Attachment 3 (E2022/10589). There were two actions from this audit that were “not updated” in the Q3 Internal Audit Report. The following action comments are now provided:

PPR 2.4.1   Management to remind staff members performing the reconciliation of the materiality thresholds and the associated escalation process:

 

Advice has been provided to staff about reporting any significant variances, in addition to normal reporting to the stakeholder group where all variances will be provided. This action was not due for completion during quarter 3.

 

PPR 2.4.2     Variance amounts identified as part of the cash and EFT reconciliation should be reported to the monthly stakeholder meeting, as noted in Finding 2.2.

There were no stakeholder meetings held during quarter 3, however a standing item has been included in the agenda template to ensure a report is presented to each stakeholder meeting on any variances identified.”

These actions will be updated for Q4.

·        Internal Audit of Cyber Security (April 2022). The report is at Confidential Attachment 6 (E2022/39688).

This audit received a review rating of Needs Improvement and it identified five high, two moderate, three low rated issues, along with two performance improvement recommendations.

 

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 Internal Audit Report - 2021-2022 Quarters 2 and 3.

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 internal audit report is for operational purposes  

Attachments:

 

1        Confidential - Grant Thornton Summary of Internal Audit Recommendations - Quarter 2 2021-2022, E2022/15709  

2        Confidential - Grant Thornton Summary of Internal Audit Recommendations - Quarter 3 3021-2022, E2022/37933  

3        Confidential - Internal Audit Action Status for Quarter 2 2021-2022, E2022/8328  

4        Confidential - Internal Audit Action Status for Quarter 3 2021-2022, E2022/33146  

5        Confidential - Internal Audit Report into Pay Parking, E2022/10589  

6        Confidential - Internal Audit Report - Cyber Security, E2022/39688  

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                    5.7

Report No. 5.7       Confidential - External Audits Update

Directorate:                         Corporate and Community Services

Report Author:                   Alexandra Keen, Acting Manager Corporate Services

File No:                                 I2022/370

Summary:

To provide an update to the Audit, Risk and Improvement Committee (ARIC) on external audit activities relating to certain aspects of Council’s functions.

 

RECOMMENDATION:

1.      That pursuant to Section 10A(2)(e) of the Local Government Act, 1993, Council resolve to move into Confidential Session to discuss the report External Audits Update.

2.      That the reasons for closing the meeting to the public to consider this item be that the report contains:

a)      information that would, if disclosed, prejudice the maintenance of law

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 audits are in progress and subject to broader NSW legislative confidentiality obligations  

Attachments:

 

1        Audit Office of NSW - Audit Scope, E2022/34876  

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                    5.8

Report No. 5.8       Confidential - 2021-2022 External Audit Engagement Plan

Directorate:                         Corporate and Community Services

Report Author:                   James Brickley, Manager Finance

File No:                                 I2022/377

Summary:

This report presents the 2021-2022 External Audit Engagement Plan for Council to the Audit, Risk and Improvement Committee for noting.

 

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 2021-2022 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.   

Attachments:

 

1        Confidential - 2021-2022 External Audit Engagement Plan, E2022/35065  

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                    5.9

Report No. 5.9       Confidential - Cyber Security and IT System Outages Quarterly Update

Directorate:                         Corporate and Community Services

Report Author:                   Colin Baker, Manager Business Systems and Technology

File No:                                 I2022/394

Summary:

This report provides a summary of cyber security events and IT service outages during the period from 1 October 2021 to 31 March 2022.

There were seventy-eight cyber security alerts and events during the reporting period. None resulted in service loss or compromise to data integrity.

The recent floods resulted in multiple IT system outages. These were due to a loss of power and communications services, primarily impacting internal IT systems. The longest outage experienced was a period of five days.

 

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 Cyber Security and IT System Outages Quarterly 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 security risk and vulnerabilities that could assist unauthorised threats to Council's information and systems.  

 

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                 5.10

Report No. 5.10     Confidential - Financial Recognition of Rural Fire Service Equipment Assets

Directorate:                         Corporate and Community Services

Report Author:                   James Brickley, Manager Finance

File No:                                 I2022/416

Summary:

For some time, over a number of years, there has been debate over which level of government (State or Local) is responsible for recognising Rural Fire Service equipment as an asset in their financial records.  This report is provided to the Audit, Risk and Improvement Committee to consider an approach as to how Byron Shire Council should treat the recognition of Rural Fire Service equipment in its financial records and financial statements.

 

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 Recognition of Rural Fire Service Assets.

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:

Determination of approach for recording assets related to the Rural Fire Service  

 

 

 


BYRON SHIRE COUNCIL

Confidential Reports - Corporate and Community Services                 5.11

Report No. 5.11     Confidential - Social Engineering Incident - Reporting of Independent Investigation

Directorate:                         Corporate and Community Services

Report Author:                   James Brickley, Manager Finance

File No:                                 I2022/506

Summary:

This report is provided to the Audit, Risk and Improvement Committee to advise of an incident in late 2021 that has left Council financially exposed, the independent investigation into this incident, the findings and recommendations subsequently provided to management, and management’s response. This is also an opportunity for the Audit, Risk and Improvement Committee to suggest alternate or other recommendations following consideration of this report.

 

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 Social Engineering Event - Reporting of Independent Investigation.

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:

Independent investigation outcome recommends improvements to intenral processes that should not be publicly available to protect Council's assets.