AGENDA
NOTICE is hereby given that a meeting of the BOARD OF NAMOI JOINT ORGANISATION OF COUNCILS TRADING AS NAMOI UNLIMITED will be held on THURSDAY 17 OCTOBER 2019 commencing at 1.00pm at the Council Chambers, Walcha Council 51n South Street Walcha NSW 2354.
1. WELCOME, ACKNOWLEDGEMENT AND/OR PRAYER ...... 4 2. APOLOGIES AND APPLICATIONS FOR LEAVE OF ABSENCE ...... 5 3. PUBLIC FORUM AND/OR PRESENTATIONS ...... 6 4. CONFIRMATION OF MINUTES...... 7 4.1 Minutes of the Board Meeting – 10 September 2019 - ATTACHMENT A...... 7 4.2 Minutes of the Extraordinary Meeting – 2 October 2019 - ATTACHMENT B ...... 15 5. DISCLOSURES OF INTERESTS ...... 19 6. CHAIRPERSON MINUTES ...... 20 7. NOTICES OF MOTIONS ...... 20 8. NOTICE OF MOTION OF RESCISSION ...... 20 9. STRATEGIC REGIONAL PRIORITIES REPORTS ...... 21 9.1 Water for the Future - Smart Watermark Membership ...... 21 9.2 IWCM Gap Analysis ...... 22 10. INTER-GOVERNMENTAL RELATIONS ...... 23 10.1 New England North West Regional Leadership Executive – ATTACHMENT C ...... 23 11. ADVOCACY AND LEADERSHIP ...... 26 11.1 Correspondence from the NSW Premier – ATTACHMENT D ...... 26 11.2 Correspondence from The Hon Barnaby Joyce MP – ATTACHMENT E ...... 28 11.3 Correspondence from The Hon Shelley Hancock MP – ATTACHMENT F ...... 30 12. EXECUTIVE OFFICER REPORTS ...... 32 12.1 Action List – ATTACHMENT G ...... 32 12.2 End of Year Statements – ATTACHMENT H ...... 34 12.3 Calendar of Planned Activities – ATTACHMENT I ...... 57 13. ADDITIONAL REPORTS PERTAINING TO THE PRINCIPAL FUNCTIONS ...... 59
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14. REPORTS FROM DELEGATES ...... 60 14.1 Ministers Advisory Group for Joint Organisations ...... 60 14.3 LGNSW Conference with Joint Organisations – ATTACHMENT J ...... 62 14.2 Briefings from the Board – ATTACHMENT K ...... 66 15. QUESTIONS WITH NOTICE ...... 68 16. CLOSED REPORTS ...... 68 17. CONCLUSION OF THE MEETING ...... 68
Rebel Thomson EXECUTIVE OFFICER 14 October 2019
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BUSINESS PAPER
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1. WELCOME, ACKNOWLEDGEMENT AND/OR PRAYER
Councillor Jamie Chaffey the Chairperson and Mayor of Gunnedah Shire Council will welcome Members to the meeting. Councillor Eric Noakes Mayor of Walcha Council will welcome members to the meeting.
MEMBERS PRESENT APOLOGY
Cr Jamie Chaffey Gunnedah Shire Council
Cr John Coulton Gwydir Shire Council
Cr Andrew Hope Liverpool Plains Shire Council
Cr Col Murray Tamworth Regional Council
Cr Eric Noakes Walcha Council
NSW Government Department of Steve Orr and Craig Jenkins Premier and Cabinet
NON-VOTING REPRESENTATIVES
Eric Groth Gunnedah Shire Council
Max Eastcott Gwydir Shire Council
Ron Van Katwyk Liverpool Plains Shire Council
Chris Webber Tamworth Regional Council
Jack O’Hara Walcha Council
Rebel Thomson Namoi Unlimited
BY INVITATION
Jodie Healy NSW Office of Local Government
Elle Rixon Media Contractor
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2. APOLOGIES AND APPLICATIONS FOR LEAVE OF ABSENCE
Author Executive Officer
Policy Code of Meeting Practice Namoi Joint Organisation of Councils
Legal -
Financial -
Strategic Link -
Attachments -
RECOMMENDATION TO THAT, applications for a leave of absence and apologies for the 17 October 2019 THE BOARD: meeting are accepted.
AMENDED/ENDORSED
MOVED:
SECONDED:
REJECTED/CARRIED
PURPOSE: -
BACKGROUND: -
COMMENTARY: Applications for a leave of absence for this meeting from Members have been received from: . Councillor Andrew Hope
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3. PUBLIC FORUM AND/OR PRESENTATIONS
Nil requested at time of distribution of this Notice of Meeting.
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4. CONFIRMATION OF MINUTES 4.1 Minutes of the Board Meeting – 10 September 2019 - ATTACHMENT A
Author Executive Officer
Policy Namoi Unlimited Code of Meeting Practice
Legal -
Financial -
Strategic Link -
Attachments ATTACHMENT A – Minutes of the Board Meeting – 10 September 2019
RECOMMENDATION TO THAT, the minutes of the Board meetings held 10 September 2019 are endorsed. THE BOARD:
AMENDED/ENDORSED
MOVED:
SECONDED:
REJECTED/CARRIED
PURPOSE: -
BACKGROUND: -
COMMENTARY: -
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ATTACHMENT A – Minutes of the Board Meeting – 10 September 2019 MINUTES Minutes of the meeting of the BOARD OF NAMOI JOINT ORGANISATION OF COUNCILS TRADING AS NAMOI UNLIMITED held on TUESDAY 10 SEPTEMBER 2019 at Tamworth Regional Council in the Function Room, Level 1 Ray Walsh House, 437 Peel Street Tamworth. 1. WELCOME, ACKNOWLEDGEMENT AND/OR PRAYER Councillor Col Murray the Acting Chairperson and Mayor of Tamworth Regional Council will welcome Members to the meeting.
MEMBERS PRESENT APOLOGY
Cr Rob Hooke Gunnedah Shire Council
Cr Catherine Egan Gwydir Shire Council
Cr Andrew Hope Liverpool Plains Shire Council
Cr Col Murray (Acting Chairperson) Tamworth Regional Council Cr Eric Noakes Walcha Council NSW Department of Premier and Alison McGaffin Cabinet NON-VOTING REPRESENTATIVES
Eric Groth Gunnedah Shire Council
Max Eastcott Gwydir Shire Council
Donna Ausling Liverpool Plains Shire Council Chris Webber Tamworth Regional Council Jack O’Hara Walcha Council Rebel Thomson Namoi Unlimited BY INVITATION Cr Phil Betts (Deputy Mayor) Tamworth Regional Council Cr Jim Maxwell Rachel Connell NSW Department of Planning, Industry Michael Scotland and Environment Sarah Horne Jodie Healy NSW Office of Local Government Elle Rixon Media Contractor
2. APOLOGIES AND APPLICATIONS FOR LEAVE OF ABSENCE
MOTION THAT, applications for a leave of absence and apologies for the September meeting are accepted. ENDORSED
Page 8 of 68 MOVED: Liverpool Plains Shire Council SECONDED: Gunnedah Shire Council CARRIED ADDITIONAL Applications for a leave of absence for this meeting from Members have been COMMENTARY: received from: . Councillor Jamie Chaffey, Gunnedah Shire Council . Councillor John Coulton, Gwydir Shire Council Apologies for the meeting have also been received from; . Paul Bennett, Tamworth Regional Council . Ron Van Katwyk, Liverpool Plains Shire Council . Elle Rixon, Media Contractor . Jodie Healy, Engagement Officer OLG
3. PUBLIC FORUM AND/OR PRESENTATIONS Nil.
4. CONFIRMATION OF MINUTES MOTION THAT, the minutes of the Board meeting held Tuesday 6 August 2019 are a true and accurate record of the meeting. ENDORSED MOVED: Liverpool Plains Shire Council SECONDED: Walcha Council CARRIED
5. DISCLOSURES OF INTERESTS Nil.
6. CHAIRPERSON MINUTES Nil.
7. NOTICES OF MOTIONS Nil.
8. NOTICE OF MOTION OF RESCISSION Nil.
9. STRATEGIC REGIONAL PRIORITIES REPORTS 9.1 Water for the Future - Public Consultation Responses MOTION THAT the Board; i) Endorses the guide to responses to submissions to the Water for the Future Strategy from (1) Hills of Gold Committee (2) David Goode and (3) Peel
Page 9 of 68 Valley Water Users, and that correspondence from the Chairperson, is prepared to reflect comments. ii) Endorses the proposed amendments to the Water for the Future Reports. ENDORSED MOVED: Walcha Council SECONDED: Liverpool Plains Shire Council CARRIED ADDITIONAL Members congratulated each other on the journey to the end of the Water for the COMMENTARY: Future project. The opportunity is now the pursuit of the recommendations highlighted in the report and working closely with NSW Department of Planning, Industry and Environment on the future planning and priorities for the region.
9.2 Engaged People and Skills – Development of Career Pathways for Local Government MOTION THAT the Board, i) Endorses expenditure of up to $10,000 for the Executive Officer to engage a consultant or partner to articulate the pathways for careers in Local Government. ii) Endorses expenditure of up to $5,000 for the Executive Officer to engage a consultant/agency to develop a suite of marketing and promotional resources for member Councils be developed to promote the career pathways. ENDORSED MOVED: Liverpool Plains Shire Council SECONDED: Gwydir Shire Council CARRIED
9.3 Engaged People and Skills – Public Service Commission Graduate Program MOTION THAT, the Board endorses the Executive Officer and JOLT to pursue applications on behalf of member Councils to support participation in a NSW public service graduate program. ENDORSED MOVED: Walcha Council SECONDED: Liverpool Plains Shire Council CARRIED
10. INTER-GOVERNMENTAL RELATIONS 10.1 Water for the Future Reports Steering Committee Terms of Reference MOTION THAT the Board defer the motion to JOLT for additional consideration; I. The terms of reference for the Water for the Future Steering Committee are endorsed. II. Members recommend nominees for the Water for the Future Steering
Page 10 of 68 Committee, aligned to the Functions and Roles. AMENDED MOVED: Liverpool Plains Shire Council SECONDED: Gunnedah Shire Council
10.2 Engaged People Seeking Skills - Drought Skills Response MOTION THAT, the Board; i) Support this drought initiative to provide people in drought affected communities with access to training, skills, ticketing and potentially casual employment. ii) Approves financial commitment to this initiative. ENDORSED MOVED: Gunnedah Shire Council SECONDED: Liverpool Plains Shire Council CARRIED ADDITIONAL The support of the Joint Organisation in this priority for the region is commended. COMMENTARY:
10.3 Intergovernmental Drought Response MOTION THAT the Board; i) Endorses the content in ATTACHMENT E as potential intergovernmental responses to drought. ii) The Chair writes to the Premier for NSW and the Prime Minister of Australia expressing these opportunities and seeking an urgent response to the ongoing conditions specifically programs to employ people in drought affected communities. AMENDED MOVED: Liverpool Plains Shire Council SECONDED: Gwydir Shire Council CARRIED
11. ADVOCACY AND LEADERSHIP 11.1 Member Value Report (2018-2019) MOTION THAT the Board; i) Endorses the Value Report for 2018-2019 to its member Councils, to receive and note performance. ii) Endorses the report as the Performance Report for Namoi Unlimited for the 2018-2019 financial year, submitting the report to the NSW Office of Local Government. iii) Provides a copy of the report and correspondence to Local Members of Parliament and both NSW and Australian Parliament Ministers associated
Page 11 of 68 with the Strategic Regional Priorities. ENDORSED MOVED: Gunnedah Shire Council SECONDED: Liverpool Plains Shire Council CARRIED
11.2 Advocacy and Leadership - Select Committee on jobs for the future in regional areas - Inquiry into Jobs for the Future in Regional Areas MOTION THAT, the submission to the Commonwealth Select Committee on jobs for the future in regional areas - Inquiry into Jobs for the Future in Regional Areas is endorsed. ENDORSED MOVED: Walcha Council SECONDED: Liverpool Plains Shire Council CARRIED
11.3 Future Funding for Joint Organisations MOTION THAT, the Board notes and endorses the directions to build a future funding model for Namoi Unlimited. ENDORSED MOVED: Liverpool Plains Shire Council SECONDED: Walcha Council CARRIED
11.4 New England North West Mining, Resources and Renewables Group - Terms of Reference MOTION THAT, the DRAFT Terms of Reference for the Mining Resources and Renewables Group is referred to JOLT for review. AMENDED MOVED: Liverpool Plains Shire Council SECONDED: Gunnedah Shire Council CARRIED
12. EXECUTIVE OFFICER REPORTS 12.1 Action List MOTION THAT, the actions of the Executive Officer are noted. ENDORSED MOVED: Liverpool Plains Shire Council SECONDED: Gwydir Shire Council CARRIED
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12.2 End of Year Statements MOTION THAT, the draft reports for the 2018-2019 are forwarded to the Auditors for review. ENDORSED MOVED: Walcha Council SECONDED: Liverpool Plains Shire Council CARRIED ADDITIONAL Thanks are portrayed to Tamworth Regional Council on the draft reports and work COMMENTARY: with the Auditor.
12.3 Correspondence Received 12.3.1 Annual Audit Engagement Plan MOTION THAT the Board; i) The information in the Annual Engagement Plan and Terms of Engagement accords with the understanding of the arrangements for the assurance services in respect of the general purpose financial statements of Namoi Joint Organisation, and these documents can be signed. ii) The Chair writes to the Minister for Local Government expressing the Joint Organisation’s concerns with costs of Audit for 2018-2019. AMENDED MOVED: Liverpool Plains Shire Council SECONDED: Gwydir Shire Council CARRIED
12.4 Calendar of Planned Activities MOTION THAT, activity is NOTED. ENDORSED MOVED: Gwydir Shire Council SECONDED: Walcha Council CARRIED
12.5 Public Information Disclosures MOTION THAT the Board; i) Delegates and endorses the function of addressing and managing GIPA and PIDs to the Chair of JOLT. ii) The Executive Officer writes to Tamworth Regional Council (as the current Chair of JOLT) seeking their permission to delegate the policy, procedure and function for GIPA and PIDs to Tamworth Regional Council. iii) On the acceptance of Tamworth Regional Council for the delegation that the Executive Officer advises the NSW Office of Local Government of these
Page 13 of 68 arrangements. ENDORSED MOVED: Liverpool Plains Shire Council SECONDED: Gunnedah Shire Council CARRIED
12.6 Namoi Water Alliance Water Consultancy Agreement MOTION THAT, the Executive Officer is authorised to sign the CONSULTANCY AGREEMENT for the Provision of Water and Sewerage Consulting Services on behalf of Namoi Unlimited. ENDORSED MOVED: Liverpool Plains Shire Council SECONDED: Walcha Council CARRIED
13. ADDITIONAL REPORTS PERTAINING TO THE PRINCIPAL FUNCTIONS Nil.
14. REPORTS FROM DELEGATES 14.1 Briefings from the Board MOTION THAT the Board; i) Make a submission is made on the impact of the drought to The Hon Mark Coulton and a delegation of businesses and the Joint Organisation travel to Canberra to articulate the issues, the impact and the solutions. ii) Cover the costs of a business person from each LGA to be included in the delegation. AMENDED MOVED: Liverpool Plains Shire Council SECONDED: Gunnedah Shire Council CARRIED
15. QUESTIONS WITH NOTICE Nil.
16. CLOSED REPORTS Nil.
17. CONCLUSION OF THE MEETING In concluding the meeting, Acting Chair Councillor Col Murray passed a vote of thanks to Alison McGaffin in appreciation of her dedication and commitment to working closely with the Joint Organisation and its activities, and on behalf of the Board conveyed best wishes for her move to Newcastle and into the Hunter.
Page 14 of 68 4.2 Minutes of the Extraordinary Meeting – 2 October 2019 - ATTACHMENT B
Author Executive Officer
Policy Namoi Unlimited Code of Meeting Practice
Legal -
Financial -
Strategic Link -
Attachments ATTACHMENT B – Minutes of the Extraordinary Meeting - 2 October 2019
RECOMMENDATION TO THAT, the minutes of the Board meetings held 2 October 2019 are endorsed. THE BOARD:
AMENDED/ENDORSED
MOVED:
SECONDED:
REJECTED/CARRIED
PURPOSE: -
BACKGROUND: -
COMMENTARY: -
Page 15 of 68 ATTACHMENT B – Minutes of the Extraordinary - 2 October 2019 MINUTES Minutes of the extraordinary meeting of the BOARD OF NAMOI JOINT ORGANISATION OF COUNCILS TRADING AS NAMOI UNLIMITED held on Wednesday 2 October 2019, 2.30pm held via teleconference.
1. WELCOME, ACKNOWLEDGEMENT AND/OR PRAYER
Councillor Jamie Chaffey, Chairperson of Namoi Unlimited will welcome Members to the meeting. MEMBERS PRESENT APOLOGY
Cr Jamie Chaffey Gunnedah Shire Council
Cr Catherine Egan Gwydir Shire Council
Cr Andrew Hope Liverpool Plains Shire Council
Cr Col Murray Tamworth Regional Council Cr Eric Noakes Walcha Council NSW Department of Premier and Craig Jenkins Cabinet NON-VOTING REPRESENTATIVES
Jeremy Bartlett Gunnedah Shire Council
Max Eastcott Gwydir Shire Council
Ron Van Katwyk Liverpool Plains Shire Council Peter Resch Tamworth Regional Council Jack O’Hara Walcha Council Rebel Thomson Namoi Unlimited BY INVITATION Jodie Healy NSW Office of Local Government Elle Rixon Media Contractor
2. APOLOGIES AND APPLICATIONS FOR LEAVE OF ABSENCE
MOTION: THAT, applications for a leave of absence and apologies for the Extraordinary meeting are accepted. AMENDED MOVED: Liverpool Plains Shire Council SECONDED: Tamworth Regional Council CARRIED ADDITIONAL Applications for a leave of absence for this meeting were amended. Applications COMMENTARY: from Members for leave have been received from: . Councillor John Coulton, Gwydir Shire Council
Page 16 of 68 . Councillor Catherine Egan, Gwydir Shire Council . Councillor Eric Noakes, Walcha Council Apologies for the meeting have also been received from; . Paul Bennett, Tamworth Regional Council . Peter Resch, Tamworth Regional Council . Eric Groth, Gunnedah Shire Council . Ron Van Katwyk, Liverpool Plains Shire Council
3. PUBLIC FORUM AND/OR PRESENTATIONS
Nil.
4. DISCLOSURES OF INTERESTS
Nil
6. CHAIRPERSON MINUTES
Nil.
7. NOTICES OF MOTIONS
Nil.
8. NOTICE OF MOTION OF RESCISSION
Nil.
9. STRATEGIC REGIONAL PRIORITIES REPORTS
9.1 Water for the Future – Drought Advocacy and Leadership – ATTACHMENT A
MOTION: THAT the Board endorses the proposal and briefing paper for the Canberra and Drought advocacy. AMENDED MOVED: Tamworth Regional Council SECONDED: Liverpool Plains Shire Council CARRIED ADDITIONAL Members agreed that meeting with Senior Advisors were important to delivering the COMMENTARY: messages to Government.
9.2 Water for the Future/Enabled and Connected Infrastructure – Increasing Resilience to Climate Change – ATTACHMENT B
MOTION: THAT the Board, iii) Endorses the appointment of GeoLINK Consulting for the project. iv) The Executive Officer moves to appoint and contract GeoLINK Consulting
Page 17 of 68 for the works. ENDORSED MOVED: Liverpool Plains Shire Council SECONDED: Tamworth Regional Council
9.3 Strategic Regional Priorities – Capacity and Capability Funding (NSW Office of Local Government) – ATTACHMENT C
MOTION: THAT, the Board endorses the four identified projects for funding under the NSW Office of Local Government – Capacity and Capability Funding program. ENDORSED MOVED: Tamworth Regional Council SECONDED: Liverpool Plains Shire Council CARRIED ADDITIONAL Costs associated with the Vendor Panel opportunity are confirmed and part of the COMMENTARY: submission, funding for Water for the Future is reduced to accommodate any increases. Water for the future proposal include the conduct of a desktop research project on the use and value of water on agricultural commodities, i.e. to determine works or organisations identifying agriculture produced with the most economical use of water.
10. QUESTIONS WITH NOTICE
Nil.
11. CLOSED REPORTS
Nil.
12. CONCLUSION OF THE MEETING
The meeting concluded at 2.36pm.
Page 18 of 68 5. DISCLOSURES OF INTERESTS
In accordance with Council’s Code of Meeting Practice and specifically Section 451 of the Local Government Act, 1993 declarations of interest are required by Councillors and designated staff attending the meeting.
MEMBER ITEM REPORT Type of Interest Declared (P, REASON SNP, LSNP, RC)
STAFF ITEM REPORT Type of Interest Declared (P, REASON SNP, LSNP, RC)
P – Pecuniary, SNP – Significant Non Pecuniary, LSNP – Less than Significant Non Pecuniary, RC – Remain in Chamber during consideration/discussion of item.
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6. CHAIRPERSON MINUTES
Nil provided at time of distribution of this Notice of Meeting.
7. NOTICES OF MOTIONS
Nil provided at time of distribution of this Notice of Meeting.
8. NOTICE OF MOTION OF RESCISSION
Nil provided at time of distribution of this Notice of Meeting.
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9. STRATEGIC REGIONAL PRIORITIES REPORTS 9.1 Water for the Future - Smart Watermark Membership
Author Executive Officer/JOLT
Policy -
Legal - Year 1 - $10,612 + GST Financial Year 2 - $10,824 + GST Year 3 - $11,041 + GST Strategic Link Water for the Future – Namoi Water Alliance
Attachments -
RECOMMENDATION TO THAT, the agreement with Smart Watermark is signed and is a commitment for the THE BOARD: next three years by member Councils.
AMENDED/ENDORSED MOVED: SECONDED: REJECTED/CARRIED
PURPOSE: To provide a report to the Board on the signing of an agreement with Smart Watermark c/o Water Services Association of Australia Limited for a three year period from October 2019 to September 2022.
BACKGROUND: Smart Approved WaterMark provides services to member Councils to; . Certify products for the Smart Approved WaterMark label to ensure the most water efficient are easy accessible for consumers . Provide tools to utilities, councils and businesses to share water saving advice with their customers in with subscription to Smart Water Advice . Offer businesses Smart Water Audits to keep their water bills and use to the minimum and more The Namoi Water Alliance had an agreement with Smart Watermark c/o Water Services Association of Australia Limited which will expire at the end of October 2019.
COMMENTARY: The membership fees of members to the Namoi Water Alliance total $27,040 ($5,408.00 per member for the 2019-2020 financial year).
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9.2 IWCM Gap Analysis
Author Executive Officer/JOLT
Policy -
Legal -
Financial $16,500 funding from the Namoi Water Alliance Membership Funds
Strategic Link Water for the Future – Namoi Water Alliance
Attachments -
RECOMMENDATION TO THAT, the agreement to undertake the Gap Analysis for the Namoi Water Alliance THE BOARD: and members with Hunter H2O is signed and executed on behalf of member Councils.
AMENDED/ENDORSED MOVED: SECONDED: REJECTED/CARRIED
PURPOSE: To provide the Board with a report on the development of a regional approach to an IWCM for the Namoi region.
BACKGROUND: Integrated water cycle management is a 30-year Strategy that addresses the complex linkages between elements of the urban water cycle (water supply, sewage and stormwater) and community expectations. Preparation of an Integrated Water Cycle Management (IWCM) Strategy is a key requirement of the NSW Government’s best practice management (BPM) framework. An IWCM Strategy is Council’s long-term planning strategy for the provision of appropriate, affordable, cost-effective and sustainable urban water services (water and wastewater). The IWCM Strategy and Strategic Business Plan need to be prepared every 8 years on a rotation of every 4 years. Namoi Unlimited has been discussing the opportunity to develop a regional approach to an IWCM with DOI Water. Correspondence has been received that supports this approach. Namoi Water Alliance has agreed to undertake and fund a Gap Analysis to identify the status and scope of works each Council will need to conduct to produce an IWCM. Two companies were invited to provide a quote for the gap analysis.
COMMENTARY: The members of the Namoi Water Alliance and JOLT have endorsed the Hunter H2O proposal.
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10. INTER-GOVERNMENTAL RELATIONS 10.1 New England North West Regional Leadership Executive – ATTACHMENT C
Author Executive Officer
Policy -
Legal -
Financial -
Strategic Link Intergovernmental Relations
Attachments ATTACHMENT C
RECOMMENDATION TO THAT, the communique from the New England North West Regional Leadership THE BOARD: Executive is noted.
AMENDED/ENDORSED MOVED: SECONDED: REJECTED/CARRIED
PURPOSE: To provide the Board with an update on projects included in the Statement of Intent for the New England North West Regional Leadership Executive.
BACKGROUND: The New England North West Regional Leadership Executive is the key intergovernmental relationship for Joint Organisations of Councils and the NSW Government. Namoi Unlimited is an active participant in a number projects including: Skills Development project, casual employment opportunities and skills recognition for drought The Drought Taskforce The Mining, Resources and Renewables Taskgroup The Regional Leaders Network
COMMENTARY: -
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ATTACHMENT C - New England North West Regional Leadership Executive
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11. ADVOCACY AND LEADERSHIP
11.1 Correspondence from the NSW Premier – ATTACHMENT D
Author Executive Officer/JOLT
Policy -
Legal -
Financial -
Strategic Link Advocacy and Leadership
Attachments ATTACHMENT D – Correspondence from the NSW Premier
RECOMMENDATION TO That correspondence from the NSW Premier is noted. THE BOARD:
AMENDED/ENDORSED MOVED: SECONDED: REJECTED/CARRIED
PURPOSE: To provide the Board members with correspondence received.
BACKGROUND: Namoi Unlimited wrote to the NSW Premier on the 16 September 2019 and provided a briefing paper on the impact of drought and possible solutions to alleviate the impact.
COMMENTARY: -
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ATTACHMENT D – Correspondence from the NSW Premier
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11.2 Correspondence from The Hon Barnaby Joyce MP – ATTACHMENT E
Author Executive Officer/JOLT
Policy -
Legal -
Financial -
Strategic Link Advocacy and Leadership
Attachments ATTACHMENT E – Correspondence from the Hon Barnaby Joyce
RECOMMENDATION TO THAT, the correspondence from The Hon Barnaby Joyce MP is noted. THE BOARD:
AMENDED/ENDORSED MOVED: SECONDED: REJECTED/CARRIED
PURPOSE: To provide the Board members with correspondence received.
BACKGROUND: Namoi Unlimited wrote to the NSW Premier on the 16 September 2019 and provided a briefing paper on the impact of drought and possible solutions to alleviate the impact.
COMMENTARY: -
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ATTACHMENT E – Correspondence from the Hon Barnaby Joyce
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11.3 Correspondence from The Hon Shelley Hancock MP – ATTACHMENT F
Author Executive Officer/JOLT
Policy -
Legal -
Financial -
Strategic Link Advocacy and Leadership
Attachments ATTACHMENT F – Correspondence from The Hon Shelley Hancock MP
RECOMMENDATION TO THAT, the correspondence from the Minister is noted. THE BOARD:
AMENDED/ENDORSED MOVED: SECONDED: REJECTED/CARRIED
PURPOSE: To provide the Board members with correspondence received.
BACKGROUND: Namoi Unlimited wrote to all NSW Ministers on the 8 August 2019 providing a briefing about the Special Activation Spatial Business Case and the opportunities for the Namoi region and its member Councils.
COMMENTARY: -
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ATTACHMENT F – Correspondence from The Hon Shelley Hancock MP
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12. EXECUTIVE OFFICER REPORTS 12.1 Action List – ATTACHMENT G
Author Executive Officer
Policy Administration and Governance
Legal -
Financial -
Strategic Link -
Attachments ATTACHMENT G
RECOMMENDATION TO THAT, the actions of the Executive Officer are noted. THE BOARD:
AMENDED/ENDORSED
MOVED:
SECONDED:
REJECTED/CARRIED
PURPOSE: -
BACKGROUND: -
COMMENTARY: -
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ATTACHMENT G - Action List Completed Underway Not yet commenced
Date Strategic Regional Resolution Action Status Priority Alison McGaffin to undertake to identify and bring to the region 29/04/2019 Intergovernmental for a workshop with member Councils, expertise from within New dates will be provided by Regional NSW. JOLT Relationships Government responsible for the application of BCR on funding applications. 02/10/2018 Work to commence on the areas discussed for the register of Members are to report on progress. BOARD advocacy positions in workshopping. An additional position of advocacy for Right to Farm Legislation is
developed by the Executive Officer. 05/05/2019 An additional position of advocacy seeking recognition of the BOARD NSW Joint Organisation of Councils network by the
Commonwealth Government is developed by the Executive Advocacy and Leadership Officer. THAT, the JO develop an advocacy/leadership position with regard Papers to be prepared after the 2019 LGNSW Conference. to renewable energy projects that cover: . Amenity, reliable energy sources for economic 15/07/2019 development; JOLT . Support the opportunity in the NENW; . A consistent approach on development contributions or expectations on roads and maintenance; and . Support community consultations. JOLT recommended a workshop is held with the Roads and A joint meeting between the members of JOLT 19/08/2019 Transport Working Group to discuss the proposed additions to the and the Roads and Transport Working Group will Namoi Roads Network Strategy, the potential impact on the JOLT Strategic Regional Priorities be held 21 October 2019. – Enabled and Connected corridor approach and the economic analysis. Infrastructure 23/09/2019 Information from the Central NSW NBN Coordinator to be provided to assess the action against delivering on a connectivity JOLT plan for the Councils in the Strategic Regional Plan.
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12.2 End of Year Statements – ATTACHMENT H
Author Executive Officer/JOLT
Policy -
Legal Local Government Act
Financial 2018-2019 Financial Year
Strategic Link -
Attachments ATTACHMENT H
RECOMMENDATION TO THAT the Board: THE BOARD: i) Adopts the 2018-2019 Financial Report for the period ending 30 June 2019, and that the Financial Report presents fairly the Joint Organisation operating result and financial position for the year. ii) Accepts that the reports have been prepared in accordance with the Local Government Act 1993, (as amended) and Regulations made thereafter; the Australian Accounting Standards and professional pronouncements; and the Joint Organisation Code of Accounting Practice and Financial Reporting. iii) Section 413(2)(c) requires the Financial Report be signed by the Chairperson, Executive Officer, and the Deputy Chairperson and they recognise that the signatories are not aware of anything that would make the Financial Report false or misleading in any way. AMENDED/ENDORSED MOVED: SECONDED: REJECTED/CARRIED
PURPOSE: To provide a report on the draft End of Year Statement to be provided to the Auditors Forsyths on behalf of the NSW Audit Office.
BACKGROUND: As part of the process to endorse the work of the audit, the draft Statement for the 2018-2019 financial year (including May 2018) is presented to the auditors by Tamworth Regional Council.
COMMENTARY: -
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ATTACHMENT H –Financial Statements prepared for Audit
Namoi Joint Organisation
GENERAL PURPOSE FINANCIAL STATEMENTS for the period 11 May 2018 to 30 June 2019
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Namoi Joint Organisation
General purpose financial statements for the period from 11 May 2018 to 30 June 2019
Contents
Page
Statement by Members of the Board and Management ...... 37 Income Statement and Other Comprehensive Income ...... 38 Statement of Financial Position ...... 39 Statement of Changes in Equity ...... 40 Statement of Cash Flows...... 41 Notes to the Financial Statements ...... 42
Namoi Joint Organisation (NJO) is constituted under the Local Government Act 1993 (NSW) and has its principal place of business at:
Namoi Joint Organisation 437 Peel Street TAMWORTH NSW 2340
Through the use of the internet, we have ensured that our reporting is timely, complete and available at minimum cost. All press releases, financial statements and other information are publicly available on our website: www.namoiunlimited.nsw.gov.au
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Namoi Joint Organisation
Statement by Members of the Board and Management made pursuant to Section 413 (2c) of the Local Government Act 1993 (NSW) (as amended)
The attached general purpose financial statements have been prepared in accordance with: the Local Government Act 1993 (NSW) (as amended) and the regulations made thereunder the Australian Accounting Standards – Reduced Disclosure Requirements and other pronouncements of the Australian Accounting Standards Board the Joint Organisations Supplement to the Local Government Code of Accounting Practice and Financial Reporting.
To the best of our knowledge and belief, these statements: present fairly JO NSW’s operating result and financial position for the period accord with JO NSW’s accounting and other records.
We are not aware of any matter that would render this report false or misleading in any way.
Signed in accordance with a resolution of the Board of Namoi Joint Organisation made on 17 October 2019.
…………………………………………………………………………………… …………………………………………………………………………………… Cr Jamie Chaffey Cr Col Murray Chairperson Voting Representative Board Member 17 October 2019 17 October 2019
…………………………………………………………………………………… Rebel Thomson Executive Officer 17 October 2019
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Namoi Joint Organisation
Income Statement and Other Comprehensive Income for the period 11 May 2018 to 30 June 2019
Actual Period 11 May 2018 to 30 June 2019 Notes $ Income from continuing operations Member council contributions 2a 150,000 User charges and fees 2b 22,788 Interest and investment revenue 2c 733 Grants provided for operating purposes 2d 467,890 Total income from continuing operations 641,411
Expense from continuing operations Employee benefits and on-costs 3a 229,025 Administrative expenses 3b 287,641 Total expense from continuing operations 516,666
Net operating result for the period 124,745
Gain on transfer of assets from former entity 2e 305,064
Net result for the period 429,809
Total comprehensive income 429,809
The above Income Statement and Other Comprehensive Income should be read in conjunction with the accompanying notes.
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Namoi Joint Organisation
Statement of Financial Position as at 30 June 2019 Notes 2019 $ ASSETS Current Assets Cash and cash equivalents 4 660,113 Total current assets 660,113
Total non-current assets - Total assets 660,113
LIABILITIES Current Liabilities Payables 5 121,959 Income received in advance 102,434 Total current liabilities 224,393
Non-current liabilities Provisions 6 5,911 Total non-current liabilities 5,911 Total liabilities 230,304
Net assets 429,809
EQUITY Accumulated surplus 429,809 Total equity 429,809
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
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Namoi Joint Organisation
Statement of Changes in Equity For the period from 11 May 2018 to 30 June 2019
2019 $ Accumulated Total surplus equity Opening balance - - Net operating result for the period 124,745 124,745 Other comprehensive income Gain on transfer of assets from former entity 305,064 305,064 Total comprehensive income 429,809 429,809
Closing balance 429,809 429,809
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
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Namoi Joint Organisation
Statement of Cash Flows for the period from 11 May 2018 to 30 June 2019
Period 11 May 2018 to 30 June 2019 Notes $ Cash flows from operating activities: Receipts Contributions from member councils 277,677 User charges and fees 25,067 Investment revenue and interest 733 Grants 470,679 Other 10,945 Payments Employees and suppliers (631,075) Net cash provided from (or used) in operating activities 154,026
Net increase(/decrease) in cash and cash equivalents 154,026
Cash transferred from former entities (Namoi Councils) 2(e) 506,087
Cash and cash equivalents at beginning of reporting period -
Cash and cash equivalents at end of reporting period 4 660,113
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
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Namoi Joint Organisation
Notes to the Financial Statements for the period from 11 May 2018 to 30 June 2019
Contents of the Notes to the financial statements
Page
Note 1 Basis of preparation 8 Note 2 Income from continuing operations 12 Note 3 Expenses from continuing operations 15 Note 4 Cash and cash equivalents 16 Note 5 Payables and borrowings 17 Note 6 Provisions 18 Note 7 Commitments 19 Note 8 Contingencies 20 Note 9 Financial risk management 21 Note 10 Related party disclosures 21 Note 11 Events are the reporting period 21
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Note 1 Basis of preparation
Namoi Joint Organisation was established on 11 May 2018 and the financial statements include the results of the JO from establishment until 30 June 2019 and the financial position at 30 June 2019.
Future reporting periods will be from 1 July to 30 June of the relevant year.
These financial statements were authorised for issue by the Board of the Joint Organisation on 17 October 2019. The Board has the power to amend and reissue these financial statements.
The principal accounting policies adopted in the preparation of these financial statements are set out below.
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements, the Local Government Act 1993 (NSW) and Regulations, and the Joint Organisation Code of Accounting Practice and Financial Reporting. The Namoi Joint Organisation is a not-for-profit entity. The financial statements are presented in Australian dollars and are rounded to the nearest dollar.
(a) New and amended standards adopted by Namoi Joint Organisation The following new standards are effective for the first time in 30 June 2019. There is not expected to be a material impact on reported financial position, performance or cash flows of the entity although some additional disclosures and presentation changes have arisen:
AASB 9 Financial Instruments and associated amending standards AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments AASB 2014-1 Amendments to Australian Accounting Standards AASB 2014–7 Amendments to Australian Accounting Standards arising from AASB 9 AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 AASB 2016-6 Amendments to Australian Accounting Standards - Applying AASB 9 Financial Instruments with AASB 4 Insurance Contracts AASB 2017 – 3 Amendments to Australian Accounting Standards – Clarifications to AASB 4 AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share-based Payment Transactions
(b) Historical cost convention These financial statements have been prepared under the historical cost convention.
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(c) Significant accounting estimates and judgements The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the JO’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the JO and that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions Namoi Joint Organisation makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: (i) employee benefit provisions – refer Note 9.
(d) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the Statement of Financial Position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities that are recoverable from, or payable to, the taxation authority are presented as operating cash flows.
(e) New accounting standards and interpretations issued not yet effective Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2019 reporting periods (and which have not been early adopted by the JO).
The JO’s assessment of these new standards and interpretations (where they have been deemed as having a material impact on the JO’s future financial performance, financial position and cash flows) are set out below:
AASB 16 Leases
AASB 16 will result (for YE 19/20 and beyond) in almost all operating leases being recognised on the Statement of Financial Position by the JO (alongside existing finance leases) with the distinction between operating and finance leases removed.
Under the new standard, a financial liability (i.e. a lease liability) and an asset (i.e. a right to use the leased item) will be recognised for nearly all arrangements where the JO commits itself to paying a rental fee for the use of a specific asset.
The only exceptions are short-term and low-value leases which are exempt from accounting (but not disclosure) requirements of AASB16 – Leases.
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As at the date of authorisation of these financial statements the JO had no leasing arrangement. Therefore the JO does not expect any significant impact on the financial statements. However, some additional disclosures may be required from next year.
AASB 15 Revenue from Contracts with Customers and associated amending standards
AASB 15 introduces a five-step process for revenue recognition, with the core principle of the new standard being for entities to recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the entity expects to be entitled in exchange for those goods or services.
Accounting policy changes will arise in the timing of revenue recognition, treatment of contract costs and contracts which contain a financing element.
The changes in revenue recognition requirements in AASB 15 may cause changes to the timing and amount of revenue recorded in the financial statements as well as additional disclosures.
Review of the JO revenue streams has been undertaken and the potential impact of AASB 15 is estimated at being a $212,000 change to the recognition and treatment of revenue that would be deferred as income in advance liability.
AASB 1058 Income of NFP Entities
AASB 1058 supersedes all the income recognition requirements relating to JO’s, previously in AASB 1004 Contributions.
Under AASB 1058 the future timing of income recognition will depend on whether the transaction gives rise to a liability or other performance obligation (a promise to transfer a good or service) related to an asset (such as cash or another asset) received by an entity.
AASB 1058 also applies when a JO receives volunteer services or enters into other transactions in which the consideration to acquire an asset is significantly less than the fair value of the asset, where the JO’s objective is principally to enable the asset to further the JO’s objectives.
Upon initial recognition of the asset, this standard requires the JO to consider whether any other financial statement elements (called ‘related amounts’) should be recognised in accordance with the applicable accounting standard, such as:
a. contribution by owners b. revenue, or a contact liability arising from a contract with a customer c. a lease liability d. a financial instrument, or e. a provision If the transaction is a transfer of financial asset to enable the JO to acquire or construct a recognisable non-financial asset to be controlled by the JO (i.e. an in-substance acquisition of a non-financial asset), the JO recognises a liability for the excess of the fair value of the transfer
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over any related amounts recognised. The JO will then recognise income as it satisfies its obligations under the transfer similarly to income recognition in relation to performance obligations under AASB 15.
If the transaction does not enable the JO to acquire or construct a recognisable non-financial asset to be controlled by the JO, then any excess of the initial carrying amount of the recognised asset over the related amounts is recognised as income.
Review of the JO revenue streams has been undertaken and the impact of AASB 1058 and there are expected to be no change to the recognition and treatment of revenue.
AASB 2018-8 Amendments to Australian Accounting Standards – Right-of Use Assets of Non- for-Profit Entities
This Standard provides a temporary option for not-for-profit entities to not apply the fair value initial measurement requirements for right-of-use assets arising under leases with significantly below market terms and conditions, principally to enable the entity to further its objectives (for example, concessionary or peppercorn leases). The Standard requires an entity that elects to apply the option (i.e. measures a class or classes of such right-of-use assets at cost rather than fair value) to include additional disclosures in the financial statements to ensure users understand the effects on the financial position, financial performance and cash flows of the entity arising from these leases.
As per a NSW Office of Local Government recommendation, the JO has elected to measure right-of-use assets (under a concessionary or peppercorn lease) at cost. The standard requires additional disclosures be provided in relation to below market-value leases measured at cost.
As at the date of authorisation of these financial statements the JO has no Right-of Use Assets. Therefore the JO does not expect any significant impact on the financial statements. However, some additional disclosures may be required from next year.
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Note 2 Income from continuing operations
Period 11 May 2018 to 30 June 2019 $ (a) Member Council contributions Gunnedah Shire Council 30,000 Gwydir Shire Council 30,000 Liverpool Plains Shire Council 30,000 Tamworth Regional Council 30,000 Walcha Shire Council 30,000 Total member council contributions 150,000
(b) User charges and fees China Study Tour Fees 22,788 Total user charges and fees 22,788
(c) Interest and investment revenue Interest on financial assets measured at amortised cost 733 Total interest and investment revenue (losses) 733
(d) Grants Operating Period 11 May 2018 to 30 June 2019
Joint Organisation Establishment 300,000 China - Namoi Engagement Project 20,000 Contaminated Lands Program 140,000 New England North West Export Workshop 7,890
467,890
Comprising - Commonwealth funding 20,000 - State funding 447,890 467,890
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(e) Gain on transfer of assets from former entity Namoi Councils
On 11 May 2018, the assets and liabilities of Namoi Councils were transferred to Namoi Joint Organisation at their previous carrying amount as shown below: Assets and liabilities acquired: $ ASSETS Current assets Cash and cash equivalents 506,087 Receivables 10,945 Total current assets 517,032
Total non-current asset - Total assets 517,032
LIABILITIES Current liabilities Payables 196,758 Total current liabilities 196,758
Non-current liabilities Provisions 15,210 Total non-current liabilities 15,210 Total liabilities 211,968
Net assets transferred / gain on transfer 305,064
Accounting policy for income
Namoi Joint Organisation recognises revenue when: the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Namoi Joint Organisation, and specific criteria have been met for each of the JO’s income streams as described below. Namoi Joint Organisation bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.
Contributions by member councils are accounted for when the amount to be paid for the period has been determined and communicated to councils. The contribution may be in the form of a cash payment or non-monetary contribution (which is recorded at its fair value).
The methodology for determining the contribution is:
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equal contributions by all member councils in order to perform the principal functions of delivering on strategic regional priorities, regional leadership and intergovernmental cooperation
User charges and fees are recognised as revenue when the service has been provided.
Interest and investment income is recognised using the effective interest rate at the date that interest is earned.
Grant revenue – Control over grants is normally obtained upon their receipt (or acquittal) and is valued at the fair value of the granted asset at the date of transfer. A liability is recognised in respect of grant income that is reciprocal in nature to the extent that the requisite service has not been provided at reporting date.
Gain on transfer of assets relates to the value of net assets received free of charge from Namoi Councils on establishment of the JO.
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Note 3 Expenses from continuing operations
Period 11 May 2018 to 30 June 2019
(a) Employee benefits and on-costs $
Salaries and wages 156,788 Travel expenses 15,653 Employee leave entitlements (ELE) 26,203 Superannuation 18,267 Workers compensation insurance 12,114 Total employee benefits and on-costs 229,025
(b) Administrative expenses $
Contractor and consultancy costs - Media and Communications 24,946 - Namoi Water Alliance 28,470 - Namoi Water Strategy 105,350 Remuneration of auditors 6,000 Training 10,934 Travel - Chair 2,044 - Ningbo delegation 3,166 - Trade & Investment – China Study Tour 56,200 - Advocacy 9,841 Meetings 2,621 Subscriptions 20,000 Other 18,069 Total administrative expenses 287,641
Auditors' remuneration Auditors of the Namoi Joint Organisation - NSW Auditor General: - Audit of financial statements 6,000 Total fees paid or payable to the Auditor- General 6,000
Accounting policy for expenses
Employee benefit expenses are recorded when the service has been provided by the employee.
Borrowing costs are expensed as incurred.
Depreciation is calculated using the straight-line method to allocate the cost of the asset, net of residual
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values, over the asset’s estimated useful lives.
Impairment – Property, plant and equipment assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
Impairment of financial assets measured at amortised cost is recognised on an expected credit loss (ECL) basis.
Operating lease expense – Leases in which a significant portion of the risks and rewards of ownership are not transferred to Namoi Joint Organisation as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the Statement of Profit or Loss and Other Comprehensive Income on a straight-line basis over the period of the lease.
Other expenses are recorded on an accruals basis as the JO receives the goods or services.
Note 4 Cash and cash equivalents
2019 $
Cash at bank and on hand 660,113 660,113
Restricted cash and cash equivalents External restrictions 245,598 Unrestricted 414,515 660,113
Accounting policy for cash and cash equivalents For Statement of Cash Flow presentation purposes, cash and cash equivalents include: cash on hand; deposits held at call with financial institutions; other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value; and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position.
External restrictions relate to unexpended funds from the former Office of Local Government (OLG), joint organisation establishment grant funds, which is refundable if not expended by 30 June 2020. There is also unexpended grants for the Contaminated Lands Program and Namoi Water Alliance.
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Note 5 Payables and borrowings
2019 Current $
Trade payables 110,296 Accrued expenses 6,000 Other payables - ATO GST 5,663 Total payables 121,959
Financing arrangements 2019 $
Total Facilities The amount of total financing facilities to the JO at the reporting date is: - Corporate credit cards 4,000 4,000
Drawn facilities The amount of financing facilities drawn down at the reporting date is: - Corporate credit cards 0 0
Undrawn facilities The amount of undrawn financing facilities available to the JO at the reporting date is: - Corporate credit cards 4,000 4,000
Accounting policy for payables
The financial liabilities of Namoi Joint Organisation comprise trade and other payables. Trade payables represent liabilities for goods and services provided to Namoi Joint Organisation prior to the end of financial period that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
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Note 6 Provisions
2019 Non- Current Current $ $
Employee benefit provisions Annual leave - - Long-Service leave - 5,911
Total provisions 0 5,911
Accounting policy for provisions
Provisions are recognised when: Namoi Joint Organisation has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
Employee benefits Short-term obligations Liabilities for wages and salaries (including non-monetary benefits and annual leave expected to be wholly settled within 12 months after the end of the period in which the employees render the related service) are recognised in respect of employees' services up to the end of the reporting period, and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave and accumulating sick leave is recognised in the provision for employee benefits. All other short- term employee benefit obligations are presented as payables.
Other long-term employee benefit obligations The liability for long-service leave and annual leave that is not expected to be wholly settled within 12 months after the end of the period in which the employees render the related service is recognised in the provision for employee benefits, and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
On-costs The employee benefit provisions include the aggregate on-cost liabilities that will arise when payment of current employee benefits is made in future periods. These amounts include superannuation, payroll tax and workers compensation expenses that will be payable upon the future payment of certain leave liabilities which employees are entitled to at the
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reporting period. The obligations are presented as current liabilities in the Statement of Financial Position if Namoi Joint Organisation does not have an unconditional right to defer settlement for at least 12 months after the reporting date, regardless of when the actual settlement is expected to occur.
Note 7 Commitments
At the reporting date, Namoi Joint Organisation did not have any capital commitments or non- cancellable operating lease commitments.
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Note 8 Contingencies
The following assets and liabilities do not qualify for recognition in the Statement of Financial Position, but their knowledge and disclosure is considered relevant to the users of the JO’s financial report.
Liabilities not recognised:
1) Guarantees (i) Statewide Limited JO is a member of Statewide Mutual, a mutual pool scheme providing liability insurance to local government.
Membership includes the potential to share in either the net assets or liabilities of the fund depending on its past performance. JO’s share of the net assets or liabilities reflects JO’s contributions to the pool and the result of insurance claims within each of the fund years.
The future realisation and finalisation of claims incurred by not reported to 30/6 this period may result in future liabilities or benefits as a result of past events that JO will be required to fund or share in respectively.
(ii) StateCover Limited JO is a member of StateCover Mutual Limited and holds a partly paid share in the entity.
StateCover is a company providing workers compensation insurance cover to the NSW local government industry and specifically JO.
JO has a contingent liability to contribute further equity in the event of the erosion of the company’s capital base as a result of the company’s past performance and/or claims experience or as a result of any increased prudential requirements from APRA.
These future equity contributions would be required to maintain the company’s minimum level of net assets in accordance with its licence requirements.
(iii) Other guarantees JO has provided no other guarantees other than those listed above.
2) Other liabilities JO has provided no other liabilities other than those listed above.
Assets not recognised: JO has no unrecognised assets.
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Note 9 Financial risk management
The Namoi Joint Organisation’s activities expose it to a variety of financial risks, including credit risk, liquidity risk and interest rate risk.
Financial risk management is carried out by the Tamworth Regional Council finance team under the delegated function as approved by the Namoi Joint Organisation Board.
The fair value of receivables and financial liabilities approximates the carrying amount. Note 10 Related party disclosures
Key management personnel Key management personnel (KMP) of the JO are those persons having the authority and responsibility for planning, directing and controlling the activities of the JO, directly or indirectly.
The aggregate amount of KMP compensation included in the Income Statement and Other Comprehensive Income is
Compensation: Short-term benefits 163,228 Post-employment benefits 18,267 Termination benefits 14,531 Total 196,026
Other transactions with KMP and their related parties Expense Provisions for recognised doubtful during the debts period Outstanding Amount of the (impairment relating to balances, Nature of the transactions Terms and of bad or including transaction during the conditions receivables) doubtful commitments at period ($) related to the debts period end ($) amount of (impairment outstanding expense) due balances ($) from related parties ($) 2019 Signage1 528 - 30 days - -
1 The JO engaged the services of a signage business, a company that is controlled by a member of the KMP of JO. Note 11 Events occurring after reporting date
Namoi Joint Organisation is unaware of any material or significant ‘non-adjusting events’ that should be disclosed.
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12.3 Calendar of Planned Activities – ATTACHMENT I
Author Executive Officer
Policy -
Legal -
Financial -
Strategic Link Strategic Regional Priorities and the Business Plan
Attachments ATTACHMENT I – Calendar of Planned Activities
RECOMMENDATION TO THAT, activity is NOTED. THE BOARD:
AMENDED/ENDORSED
MOVED:
SECONDED:
REJECTED/CARRIED
PURPOSE: To provide members with an outline of upcoming activities for the Executive Officer and the Joint Organisation.
BACKGROUND: -
COMMENTARY: -
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ATTACHMENT I – Joint Organisation Planned Activity
Wed 16 Oct Namoi Unlimited presentation to the LGNSW on Innovation in Local Sydney Government – China Engagement Project
Tue 17 Board Meeting Walcha
Fri 18 New England North West Regional Leadership Executive Tamworth
Mon 21 JOLT Tamworth . Economic Development update with the NSW Regional team and Invest Regional NSW team . Roads and Transport Working Group joint meeting on the Namoi Roads Network Strategy
Thu 24 Namoi Unlimited Advocacy Event Canberra . Meetings confirmed Minister Coulton, Deputy Prime Minister and The Hon Barnaby Joyce . Meetings to be confirmed Minister McKenzie, Minister Littleproud
Thu 31 NSW Joint Organisations Meetings Sydney . Ministers Advisory Committee . Executive Officers Meeting . Chairs Meeting
Thu 7 Nov Board Meeting Gunnedah
Mon 11 Drought Assistance and Training Workshop Nundle
Tue 12 Drought Assistance and Training Workshop Walcha
Wed 13 Drought Assistance and Training Workshop Gunnedah
Thu 14 Drought Assistance and Training Workshop Bingara
Fri 15 Drought Assistance and Training Workshop Werris Creek
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13. ADDITIONAL REPORTS PERTAINING TO THE PRINCIPAL FUNCTIONS Nil provided at time of distribution of this Notice of Meeting.
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14. REPORTS FROM DELEGATES 14.1 Ministers Advisory Group for Joint Organisations
Author The Chairperson
Policy -
Legal -
Financial -
Strategic Link Leadership and Advocacy
Attachments -
RECOMMENDATION TO THAT, the Board notes the report and progress of the Advisory Committee. THE BOARD:
AMENDED/ENDORSED
MOVED:
SECONDED:
REJECTED/CARRIED
PURPOSE: To provide the Members with an update from the meeting of the Ministerial Advisory Committee.
BACKGROUND: Joint Organisations are responsible for their ongoing sustainability, and while some have been able to develop income streams to secure their future, others need more time to do so. With this in mind, the Minister for Local Government established a Joint Organisation Advisory Committee to provide advice to the Minister for Local Government on options and models to secure the ongoing sustainability of the JO network. Namoi Unlimited as well as Illawarra Shoalhaven, Mid-North Coast and Canberra Region Joint Organisations have been asked to be part of this advisory group. The first meeting of the group was held on Monday 30 September 2019.
COMMENTARY: The Advisory Committee includes members of the Office of Local Government and the Ministers Office as well as the Chair and Executive Officer of the four nominated Joint Organisations. The terms of reference for the group outline that the group has two clear tasks for the Minister: . Develop models that will ensure ongoing financial sustainability of Joint Organisations; and . Provide advice of a more general nature to the Minister for Local Government on the operation of the JO model. As this was the initial meeting a number of fundamental actions are to be undertaken by the Executive Officers for the next meeting to be held in October, these are; . For the group to identify 2 or 3 key strategic priorities or projects that are key to each Joint Organisation.
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. Create the wording for a draft Joint Organisation financial model, to obtain a greater understanding of the scope of sustainability and a financial model. . Consider the scope of a suite of template documents for each Joint Organisation to be able to utilise. . Create a list of the business activities and their advantages from each JO. . Update the financial model spreadsheet to include the FY19/20 Budgets.
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14.3 LGNSW Conference with Joint Organisations – ATTACHMENT J
Author The Chairperson
Policy -
Legal -
Financial -
Strategic Link Leadership and Advocacy
Attachments ATTACHMENT J
RECOMMENDATION TO THAT, the Board notes the report. THE BOARD:
AMENDED/ENDORSED
MOVED:
SECONDED:
REJECTED/CARRIED
PURPOSE: To provide the Members with an update from the meeting between LGNSW and Joint Organisations.
BACKGROUND: LGNSW convened a meeting of Joint Organisations, some Councils and themselves in Sydney on the 1-2 October. Day 1 was a discussion about what Joint Organisations and LGNSW could work on together. Day 2 provided a focus for the organisations on drought. The Executive Officer and the Deputy Chair attended both meeting days.
COMMENTARY: Cr Murray participated in a panel discussion about collaboration between Joint Organisations and LGNSW. A copy of the notes for this session is provided in ATTACHMENT J. The following recommendations concur/support with directions in the Namoi Unlimited Strategic Regional Plan or Business Plan, and should continue to be followed by Namoi Unlimited and Councils. . Standardised methodology for water restrictions and conservation measures across NSW, i.e. levels of restrictions are classified to mean the same, the application will reflect local circumstance. . Regional approach to the IWCM task ahead of Councils, including the collation and reporting of issues and opportunities with water and sewer infrastructure. . Review the information provided by Rhelm in water strength and how this can support communities and development. . The information and ideas discussed at the drought session have been condensed into a board motion on drought policy that will be considered at our Annual Conference 14-16 October. . Engaged people and skills, addressing skill shortages, tools and promotion of careers across the Local Government sector by LGNSW. . The advocacy platform needs to incorporate identified ‘red tape’ impediments
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to business and regional development.
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ATTACHMENT J – LGNSW Sustaining Regions Conference Date: Tuesday 1 October 2019 Panel Member: Cr Col Murray, Mayor Tamworth Regional Council and Deputy Chair of Namoi Unlimited Time: 10.15am to 11.15am Details: Each panellist will have 10 minute presentation on their views of collaboration between JOs and LGNSW WHICH ISSUES AND PRIORITIES DO WE HAVE IN COMMON? Joint Organisations represent the interests of a group of Councils. Joint Organisations are regional and they should represent the unique issues, opportunities for rural, regional and remote Councils. Commonalities . We both should be striving to strengthen and protect local government across NSW. . We should be both demonstrating how effective local government structures are good for the people of NSW. . We should be actively representing a consensus view of local government to the NSW and Australian governments . Local Government is the most trusted segment1 of our democracy; we should be using that to our advantage. Issues . The Joint Organisation model does not assist LGNSW in providing equitable leadership to all member councils. . Our Joint Organisation is not a member of LGNSW, because our members are already members. . The Joint Organisation model is established to recognise the uniqueness and differences of regions, regional NSW and priorities for member Councils. . Importantly - members of Joint Organisations voluntarily voted to be part of a Joint Organisation. . Joint Organisations were not only established for the collective interests of member Councils but also for the residents of NSW, it should be non-competitive and a-political. OPPORTUNITIES INCLUDING COLLABORATIVE OPPORTUNITIES WITH LGNSW 1. The key functions of Joint Organisations of; o Identifying strategic regional priorities o Developing plans for regions to achieve these priorities; and the o Inter-governmental role Specifically the strategic regional priorities and plans for regions should be of interest to LGNSW. 2. We should be working together, not competing with each other to enhance the provision of a range of services to Councils. This is critical for Councils and Joint Organisations working to increase the capacity of local government to deliver quality services and meet the needs of local communities across NSW. 3. We should be campaigning and working together to enhance the profile of local government in our communities, building and attracting the Councillors and staff needed for the future.
1 https://www.governmentnews.com.au/trust-in-local-government-high-councils-told/
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HOW MIGHT WE EMBARK ON SOME JOINT PROJECTS? This shouldn’t be hard… we should know what we need… . We need the motivation We are all time poor, we need a motivation that is going to benefit both of us, that comes from identifying what we need from each other and from our stakeholders. . We need to establish and focus on only productive dialogue We need to recognise the role we both have and the differences we have, we have to have a genuine desire to achieve the same thing. You can’t collaborate without communication. . Collaboration needs Diversity If you think about it in the context of a sporting team, we pick the best that we have in the roles that we need – its not based on politics, gender or personality types. . Sharing When you’re in a team, you’re playing for the same goals, it’s inclusive and everyone supports each other. . Problem-Solving We need to recognise that what we are trying to do is hard, Local Government is not particularly wired to work together, and we are wired to work for our residents in our geography. Collaboration requires much broader thinking. . Resources If we want this to work as a sector, it needs to be resourced. We are all working at capacity and if we expect everyone to do more, we need to resource it with research, people or leadership, whatever we need. And, we need to be in it for the long haul.
AND, HOW CAN WE MAINTAIN IT? This is simple, do what you say you’re going to do… and just get the job done.
WHAT DO I THINK WE COULD ACHIEVE THROUGH COLLABORATION? . We need to start and work together closely, LGNSW is our organisation - it’s our peak body, Joint Organisations is should be one of the opportunities we are working on as an industry. . Perhaps we should look at this questions in reverse What wont we achieve if we don’t collaborate? What is the future for smaller communities and their Local Government jobs and representation - if we don’t work together. So we could achieve: . A stronger industry . A workforce that is proud to be part of effective Government . An industry that fosters young people, diversity, gender equality, leadership . A sector that is recognised as an effective and trusted part of our democracy That should be enough, that’s significant… Thank you
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14.2 Briefings from the Board – ATTACHMENT K
Author The Chairperson
Policy -
Legal -
Financial -
Strategic Link -
Attachments ATTACHMENT K – Template for a Briefing Paper and Headings
RECOMMENDATION TO THE BOARD:
AMENDED/ENDORSED
MOVED:
SECONDED:
REJECTED/CARRIED
PURPOSE: To provide the Members and the Project Sponsors with the opportunity to table briefing documents for Ministers or Departments in relation to activity toward the Strategic Regional Priorities.
BACKGROUND: As part of the Communications and Engagement Plan of activity and projects conducted by Namoi Unlimited, Members and Sponsors can propose briefing papers are developed and distributed from the Chair. The intent of this action is to continue to provide project updates to the community and stakeholders.
COMMENTARY: -
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ATTACHMENT K – Briefing Paper Headings SUBJECT: Contentious Issues Brief from Namoi Unlimited
RECOMMENDATION That the Deputy Premier Proposed actions
KEY ISSUES Urgency
CONSULTATION
FINANCIAL IMPLICATIONS
LEGAL IMPLICATIONS
BACKGROUND
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15. QUESTIONS WITH NOTICE
Nil provided at time of distribution of this Notice of Meeting.
16. CLOSED REPORTS
Nil provided at time of distribution of this Notice of Meeting. 17. CONCLUSION OF THE MEETING
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