Supplementary Agenda of Audit and Risk Committee

NOTICE OF MEETING

Dear Council Member,

The next Audit and Risk Committee of Council will be held on Wednesday, 10 February 2021 in the Council Chambers, Corner Weld and Haas Streets, Broome, commencing at 2:00 PM.

Regards,

S MASTROLEMBO

Chief Executive Officer

09/02/2021

DISCLAIMER

The purpose of Council Meetings is to discuss, and where possible, make resolutions about items appearing on the agenda. Whilst Council has the power to resolve such items and may in fact, appear to have done so at the meeting, no person should rely on or act on the basis of such decision or on any advice or information provided by a Member or Officer, or on the content of any discussion occurring, during the course of the meeting.

Persons should be aware that the provisions in section 5.25 of the Local Government Act 1995 establish procedures for revocation or rescission of a Council decision. No person should rely on the decisions made by Council until formal advice of the Council decision is received by that person. The Shire of Broome expressly disclaims liability for any loss or damage suffered by any person as a result of relying on or acting on the basis of any resolution of Council, or any advice or information provided by a Member or Officer, or the content of any discussion occurring, during the course of the Council meeting.

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Agenda – Audit and Risk Committee Meeting 10 February 2021 Page 1 of 2

5. Report of Officers

5.2 COMPLIANCE AUDIT RETURN 2020

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: LCR02

AUTHOR: Manager Governance, Strategy and Risk

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Corporate Services

DISCLOSURE OF INTEREST: Nil

SUMMARY:

The purpose of this report is to present to the Audit and Risk Committee (ARC) the 2020 Compliance Audit Return (CAR) for review, and to request that the ARC recommend that Council adopt the 2020 CAR for submission to the Department of Local Government, Sport and Cultural Industries (DLGSC) by 31 March 2021.

BACKGROUND

Local governments are required to complete a compliance audit for the previous calendar year by the 31 March. The DLGSC provides the questions each year with the compliance audit being an in-house self audit that is undertaken by the appropriate responsible officer.

In accordance with Regulation 14 of the Local Government (Audit) Regulations 1996 the ARC is to review the CAR and is to report to Council the results of that review. The CAR is to be:

1. presented to an Ordinary Meeting of Council

2. adopted by Council; and

3. recorded in the minutes of the meeting at which it is adopted.

Following the adoption by Council of the CAR, a certified copy of the return, along with the relevant section of the minutes and any additional information detailing the contents of the return are to be submitted to the DLGSC by 31 March 2021.

The return requires the Shire President and the Chief Executive Officer to certify that the statutory obligations of the Shire of Broome have been complied with.

COMMENT

The DLGSC continues to focus on high risk areas of compliance and statutory reporting as prescribed in Regulation 13 of the Local Government (Audit) Regulations 1996.

The CAR for the period 1 January to 31 December 2020 comprises a total of 102 questions, down from 104 questions the previous year. Whilst the number of questions is similar the DLGSC has updated the wording of many questions and combined questions of a similar nature. New questions have appeared for the first time to reflect the legislative changes that are occurring, and this trend is expected to continue.

The key focus areas covered in the CAR are as follows:

Focus Area	2019 Qu’s	2020 Qu’s	Comments
Commercial Enterprises by Local Governments	5	5	· No changes.
Delegation of Power/Duty	13	13	· No change.
Disclosure of Interest	19	21	· Several questions amalgamated. · New questions relating to public access to information, participation rights and adoption of a code of conduct added.
Disposal of Property	2	2	· No change.
Elections	2	3	· New question relating to public access to the electoral gift register.
Finance	14	11	· Amalgamation of questions relating to Audit Reg 7 into one question.
Integrated Planning and Reporting	7	3	· Questions relating to Asset Management Plan(s), Long Term Financial Plan and Workforce Plan removed.
Local Government Employees	5	6	· New question relating to council rejecting a CEO’s recommendation to employ or dismiss a senior employee.
Official Conduct	6	4	· Several questions amalgamated. · New question in regard to public access to complaints register for minor breaches.
Optional Questions	4	10	· New questions regarding the gift provision changes, · New questions relating to the attendance of elected members and the CEO at events policy · New questions regarding the continuing professional development of elected members policy. · New question regarding report on training completed by elected members in the 2019/2020 financial year.
Tenders for Providing Goods and Services	27	24	· Several questions amalgamated. · Two new questions in relation to the Shire’s purchasing policy.
Total	104	102

During 2020, responsible officers monitored compliance in each of the focus areas through a new cloud-based compliance application – RelianSys. This has increased the awareness of compliance obligations and allowed the capture of compliance evidence in one central repository throughout the year. The new compliance system reduces the risk of noncompliance and streamlines compilation of the annual return.

A compliance rating of 100% has been reported for 2020.

This continues the Shire’s strong history of compliance with the requirements of the Local Government Act (1995), with minimal non compliances reported over the last 5 years and none of a significant risk nature.

It is important to emphasis that the CAR is limited in scope.

Local Governments are also required to comply with upwards of 200 other pieces of legislation. The implementation of RelianSys during 2020 provides the ability to continually improve the monitoring and assurance of other significant pieces of legislation on a prioritised basis. The RelianSys system can also be developed to assist in addressing the compliance focus of the Office of the Auditor General (OAG) that is apparent since the OAG took over the responsibility for Local Government financial and performance audits.

CONSULTATION

Department of Local Government, Sport and Cultural Industries

STATUTORY ENVIRONMENT

Local Government (Audit) Regulations 1996

14. Compliance audits by local governments

(1) A local government is to carry out a compliance audit for the period 1 January to 31 December in each year.

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

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

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

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

(b) adopted by the council; and

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

15. Compliance audit return, certified copy of etc. to be given to Departmental CEO

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

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

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

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

POLICY IMPLICATIONS

Nil.

FINANCIAL IMPLICATIONS

Nil.

RISK

There is a reputational risk with the DLGSC should the CAR not be completed on time or if significant non compliances are reported.

The likelihood of this occurring is rare.

STRATEGIC IMPLICATIONS

Our Performance Aspiration – We will deliver excellent governance, service and value, for everyone.

Deliver best practice governance and risk management.

VOTING REQUIREMENTS

Simple Majority

REPORT RECOMMENDATION:

That the Audit and Risk Committee recommends that Council:

1. Adopt the attached 2020 Compliance Audit Return as the official return for the Shire of Broome; and

2. Requests the Chief Executive Officer to submit the certified return and a copy of the minutes relative to this report to the Department of Local Government, Sport and Cultural Industries prior to 31 March 2021.

Attachments

1.	2020 Compliance Annual Return