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Administration and Finance Committee Meeting

 

  BUSINESS PAPER

 

 

 

Tuesday 6 December 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative Centre 30 Frances Street Randwick 2031

Telephone: 1300 722 542

Fax: 02 9319 1510

 council@randwick.nsw.gov.au

www.randwick.nsw.gov.au


 

 

 

 

 

 

 

 

 

 

 

 


Administration and Finance Committee                                                                6 December 2016

 

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Administration and Finance Committee Meeting

 

Notice is hereby given that a Administration and Finance Committee Meeting of the Council of the City of Randwick will be held in the Council Chamber, First Floor, 90 Avoca Street Randwick on Tuesday, 6 December 2016 at 6:00 p.m.

 

Committee Members:          The Mayor N D’Souza, Andrews, Belleli, Bowen (Deputy Chairperson), Garcia, Matson, Moore, Nash, Neilson (Chairperson), Roberts, Seng, Shurey, Smith, Stavrinos and Stevenson

 

Quorum:                           Eight (8) members

 

NOTE:    At the Extraordinary Meeting held on 28 September 2004, the Council resolved that the Administration and Finance Committee be constituted as a committee with full delegation to determine matters on the agenda.

Apologies/Granting of Leave of Absences 

Confirmation of the Minutes  

Administration and Finance Committee Meeting - 8 November 2016

Declarations of Pecuniary and Non-Pecuniary Interests

Address of Committee by Members of the Public

Privacy warning;

In respect to Privacy & Personal Information Protection Act, members of the public are advised that the proceedings of this meeting will be recorded for the purposes of clause 69 of Council’s Code of Meeting Practice.

Urgent Business

Administration Reports

A10/16      Contingency Fund - Status as at 30 November 2016.................................. 1

A11/16      Council Approval for Ongoing Engagement of Squiz Pty Ltd for Website Support Services....................................................................................................... 5

Finance Reports

F15/16      Related Party Discloures Policy............................................................... 7

F16/16      Investment Policy.............................................................................. 15

F17/16      Monthly Financial Report as at 31 October 2016....................................... 31    

 

 

 

 

Notice of Rescission Motions

Nil  

 

 

 

…………………………………………………….

Ray Brownlee

General Manager


Administration and Finance Committee                                                                6 December 2016

 

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Administration Report No. A10/16

 

Subject:             Contingency Fund - Status as at 30 November 2016

Folder No:                   F2004/07396

Author:                   Julie Hartshorn, Senior Administrative Coordinator      

 

Introduction

 

The purpose of this report is to detail the progressive amount of donations, allocations, waiving of fees and other similar contributions for the 2016-17 financial year.

 

Issues

 

For the 2016-17 financial year there have been 25 allocations totalling $83,724.83,   as listed in the table below.

 

Meeting

Details

Approved allocation

2016-17

Annual contribution (ongoing)

Planning Committee – 13 Mar 2012

Annual contribution – Australia Day Botany Bay Regatta

$750.00

Ord Council

17 Sept 2013

Annual Contribution (5 years from 2015-16 to 2019-20) Waiving of Fees – Rainbow Club Australia Inc – Murray Rose’s Malabar Magic Ocean Swim

 

$14,500.00

Ord Council  23 Sept 2014

Annual contribution (5 years from 2015-16 to 2019-20) - Randwick Boys High School - 'Mayor's Award'

$1,000.00

Ord Council – 26 April 2016

Annual contribution (5 years from 2015-16 - Sydney Children’s Foundation Gold Telethon)

$5,000.00

Ord Council – 26 April 2016

Annual contribution (5 years from 2016-17 - Sydney Children’s Foundation Lights for Kids Christmas campaign)

$2,000.00

2016-17 Contingency Fund allocations

Ord Council – 22 Mar 2016

Financial assistance - Prince of Wales Hospital Foundation

$5,000.00

Ord Council – 22 Mar 2016

Sponsorship – Randwick Girls and Boys High Schools – 2016 Show

$4,000.00

Ord Council – 28 Jun 2016

Financial assistance and waiving of fees - NSW Police Force International Student Beach Soccer Day at Coogee Beach

$4,533.00

Ord Council – 26 July 2016

Waiving of Fees - Sydney Sixers Cricket Team

$2,123.00

Ord Council – 26 July 2016

Financial assistance - Coogee SLSC - Fundraising Dinner

$4,000.00

Ord Council – 26 July 2016

Waiving of Street Banners Hire Fees - Taste of Coogee 2016

$2,847.24

Ord Council – 26 July 2016

NSW Police Force Request to Waive Hire Fees for Prince Henry Centre

$2,222.00

Ord Council – 23 Aug 2016

Establishment of Kamay ParkRun

$5,000.00

Ord Council – 25 Oct 2016

Waiving of fees - Surf Life Saving Branch Carnival - Maroubra Beach

$1,064.00

Ord Council – 25 Oct 2016

Waiving of fees - Registered Charity - Community Event/Fundraiser “The Bloody Long Walk”

$629.00

Ord Council – 25 Oct 2016

Waiving of Fees -  Carols by Candlelight Grant Reserve Coogee

$1,772.00

Ord Council – 25 Oct 2016

Waiving of fees - Coast Centre for Seniors Inc – Hire of Prince Henry Centre

$1,100.00

Ord Council – 25 Oct 2016

16th Annual Des Renford Chair of Hearts Research Family Gala and Charity Day - Use of Des Renford Leisure Centre

$8,500.00

Ord Council – 25 Oct 2016

Waiving of fees - Indonesian Community Council of NSW - Hire of Randwick Town Hall

$1,452.00

Ord Council – 25 Oct 2016

Waiving of fees - Randwick Shield Carnival – Maroubra Beach

$706.00

Ord Council – 25 Oct 2016

Waiving of fees - Carols by Candlelight - St Luke’s Anglican Church, Clovelly

$4,097.00

Delegation  -

8 Nov 2016

Waiving of fees - St George Coptic Church community fete

$1,225.00

Ord Council – 22 Nov 2016

Waiving of fees – Greek Orthodox Archdiocese annual Epiphany Festival

 

$10,097.59

Ord Council – 22 Nov 2016

Waiving of fees – South Coogee Childrens’ Services – Recycling bins

$107.00

Ord Council – 22 Nov 2016

Des Renford Leisure Centre – “The Rodgers Brothers Learn to Swim Pool”

$600.00

Total – 2016-17 Contingency Fund allocations

$84,324.83

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 2:           A vibrant and diverse community.

Our community will be proud to be part of our City and celebrate its range of cultures and people.

Direction 2b:         Enrich our range of community services that meet our community’s needs.

Key Actions:         Support the provision of services and facilities to meet the needs of our Target Groups and celebrate the range of cultures and people within Randwick City.

 

Financial impact statement

 

Council has allocated $75,000.00 in the 2016-17 Budget for contingencies. Any expenditure that exceeds the budget allocation will be funded through savings at the December quarterly budget review.

 

Recommendation

 

That the status of the contingency funds allocations for 2016-17, be noted.

 

 

 

Attachment/s:

 

Nil

 

 


Administration and Finance Committee                                                                6 December 2016

 

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Administration Report No. A11/16

 

Subject:             Council Approval for Ongoing Engagement of Squiz Pty Ltd for Website Support Services

Folder No:                   F2016/00339

Author:                   David Kelly, Manager Administrative Services      

 

Introduction

 

A unique situation has developed whereby, due to extenuating circumstances, Council approval is required for the ongoing engagement of Council’s current supplier Squiz Pty Ltd to continue to provide its range of website support services to Council.

 

Issues

 

Originally, Squiz Pty Ltd were being utilised by Council under IT Prequalification scheme number SCM0020 for ICT Services. Advice was then received across local government, from Local Government Procurement, that Councils were not permitted to utilise such schemes under the Local Government Act.

 

As Squiz Pty Ltd were already engaged to perform their web support services, on 6th May, 2016 a General Manager’s exemption was obtained to continue to engage Squiz Pty Ltd to support Council’s current website. A quality public website is a key deliverable to ensure service continuity with residents, ratepayers and businesses whilst also serving as a significant information hub and services contact point for our customers. Pre-purchasing Squiz Services’ Support Packs represents a significant 15% saving for Council over standard industry rates.

 

Since the project commencement, there have been several significant variations to the requirements for the work required to complete the graphic design and the design implementation on the templates for the website and the development work to cater for the new mapping and listing services from ESRI and database integrations.

 

Additional development work is required to cater for brand new navigation, website design alterations and work to cater for specific Library subsite requirements such as right hand panels, floating navigation and additional social media icons. Work will also be required on the design and implementation of property pickers and expanded mapping integrations.

 

This extra work will require an increase in expenditure which will see the contract expenditure with Squiz Pty Ltd exceed the current tendering threshold. Thus a General Manager’s exemption cannot be given to continue with this engagement.

 

Previous legal advice has confirmed that Clause 55(3) of the Local Government Act 1993 specifies an exclusion to the requirements for tendering based on “a contract where, because of extenuating circumstances, remoteness of locality or the unavailability of competitive or reliable tenderers, a council decides by resolution (which states the reasons for the decision) that a satisfactory result would not be achieved by inviting tenders.”

 

As Squiz is a sole provider of services in the Squiz Matrix product, it is not possible to tender and obtain competitive responses as there are no other suppliers available to provide this specialised service. Given annual spend will exceed the tendering threshold, an exemption to tender for website support services to Council is required to be approved by Council.

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 1:    Leadership in Sustainability.

Direction 1d:  Continuous improvement based on accountability, transparency, and good governance.

 

Financial impact statement

 

Allowance for this expenditure has been made in Council’s 2016/17 budget for ongoing website development.

 

Conclusion

 

As Squiz Pty Ltd is the sole provider of the Squiz Matrix product, Clause 55(3) of the Local Government Act 1993 specifies an exclusion to the requirements for tendering based on “the unavailability of competitive or reliable tenderers.” Accordingly, a Council can decide by resolution (which states the reasons for the decision) that a satisfactory result would not be achieved by inviting tenders.”

 

It should also be noted here that the impending IPART report into Compliance Burdens on Local Government will most likely contain a recommendation that Councils will be eligible to select suppliers from IT Prequalification Schemes, which Councils are currently not permitted to utilise. Squiz Pty Ltd is currently listed under the IT Prequalification scheme number SCM0020 for ICT Services. This development will ensure this situation will not occur again for IT related suppliers as Council will engage Squiz under this prequalification scheme.

 

Recommendation

 

That:

 

a)     in accordance with Clause 55(3) of the Local Government Act 1993, Council be exempt from tendering for the provision of its range of website support services, due to the unavailability of competitive tenderers; and

 

b)     the General Manager, or his delegate, be authorised to negotiate directly with this company to ensure Council obtains reasonable rates for website support services.

 

 

Attachment/s:

 

Nil

 

  


Administration and Finance Committee                                                                6 December 2016

 

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Finance Report No. F15/16

 

Subject:             Related Party Discloures Policy

Folder No:                   F2016/00406

Author:                   Mitchel Woods, Manager Corporate and Financial Planning      

 

Introduction

 

For financial reporting periods commencing on or after 1 July 2016, all NSW councils will be required to comply with the Australian Accounting Standard AASB 124 – Related Party Transactions. Previously, this accounting standard did not apply to not-for-profit public sector entities.

 

Issues

 

The objective of this Accounting Standard is to ensure that an entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances, including commitments, with such parties.

 

Related party relationships are a normal feature of commerce and business. For example, entities frequently carry on parts of their activities through subsidiaries, joint ventures and associates. In those circumstances, the entity has the ability to affect the financial and operating policies of the investee through the presence of control, joint control or significant influence.

 

Knowledge of an entity’s transactions, outstanding balances, including commitments, and relationships with related parties may affect assessments of its operations by users of their financial statements, including assessment of the risks and opportunities facing the entity.

 

The attached Related Party Disclosures Policy has been drafted to specifically identify those who are affected by the application of this Accounting Standard, and their responsibilities associated with making the relevant disclosures.    

 

The disclosures made in regards to Related Party Transactions are different, and are in addition to, the Declaration of Pecuniary Interests Returns made each year.

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome:  1. Leadership in sustainability.

Direction:  1c.1. Continuous improvement in service delivery based on accountability, transparency and good governance.

 

Financial impact statement

 

There is no direct financial impact for this matter.

 

 

 

 

Conclusion

 

As of 1 July 2016 all Key Management Personnel of Randwick City Council, primarily Councillors, General Manager and Directors, will be required to disclose any related party transactions entered into with Council.

 

Recommendation

 

That the Related Party Disclosures Policy, as per Attachment 1, be adopted. 

 

 

Attachment/s:

 

1.

Randwick City Council Related Party Disclosures Policy

 

 

 

 


Randwick City Council Related Party Disclosures Policy

Attachment 1

 

 


Administration and Finance Committee                                                                6 December 2016

 

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Finance Report No. F16/16

 

Subject:                  Investment Policy

Folder No:                   F2015/06527

Author:                   Gail  Johnston, Financial Operations Accountant      

 

Introduction

 

Council has an Investment Policy that outlines its investment objectives. The Investment Policy provides the framework that safeguards the investment portfolio.

 

Issues

 

The Office for Local Government publish a Code of Accounting Practice and Financial Reporting that requires Council to review the Investment Policy annually or in the event of legislative change or as a result of significantly changed economic conditions.

 

The Investment Policy has been reviewed and is now presented with no changes to the existing policy.

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome:  1.     Leadership in Sustainability.

Direction:  1c.    Long term financial viability is achieved.

 

Financial impact statement

 

The Investment Policy provides the framework for the prudent investment of Council funds. The policy has the key objectives of; preservation of capital, maximise investment returns, and minimising any associated risks.

 

Conclusion

 

The current Investment Policy be adopted without any changes.

 

Recommendation

 

That the Investment Policy, as per attachment 1, be adopted.

 

 

Attachment/s:

 

1.

Investment Policy - December 2016

 

 

 

 


Investment Policy - December 2016

Attachment 1

 

 


Administration and Finance Committee                                                                6 December 2016

 

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Finance Report No. F17/16

 

Subject:             Monthly Financial Report as at 31 October 2016

Folder No:                   F2016/00404

Author:                   Oliver Guo, Management Accountant      

 

Introduction

 

Section 202 of Local Government (General) Regulation 2005 requires that the responsible accounting officer of a council must:

a)     establish and maintain a system of budgetary control that will enable the council’s actual income and expenditure to be monitored each month and to be compared with the estimate of the council’s income and expenditure, and

b)     if any instance arises where the actual income or expenditure of the council is materially different from its estimated income or expenditure, report the instance to the next meeting of the council.

 

Issues

 

This report provides the financial results of the Council as at 31 October 2016. Attachment 1 summarises the Council’s financial performance and its source and application of funds. It also summarises the operating result for each of the Council’s principal activities. Attachment 2 details the financial position of the Council as at 31 October 2016. Attachment 3 details the cash flow of the Council as at 31 October 2016.

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 1:     Leadership in Sustainability.

Direction 1b:    Council is a leader in the delivery of social, financial and operational      activities.

 

Financial impact statement

 

There is no direct financial impact for this matter.

 

Conclusion

 

The Council’s Manager Corporate and Financial Planning, as the Responsible Accounting Officer, advises that the projected financial position is satisfactory. The Current Ratio as at 31 October 2016 is 2.42 compared to 2.25 as at 30 June 2016. The Current Ratio is a financial indicator specific to local government and represents its ability to meet its debts and obligations as they fall due.

 

Recommendation

 

That the Administration and Finance Committee acknowledges that the Responsible Accounting Officer has advised that the projected financial position of Council is satisfactory.

 

 

Attachment/s:

 

1.

Monthly Finanical Statements - Income Statements October 2016

 

2.

Monthly Financial Statements - Balance Sheet October 2016

 

3.

Monthly Financial Statements - Cash Flow Statement October 2016

 

 

 

 


Monthly Finanical Statements - Income Statements October 2016

Attachment 1

 

 


Monthly Financial Statements - Balance Sheet October 2016

Attachment 2

 

 


Monthly Financial Statements - Cash Flow Statement October 2016

Attachment 3