Agenda Audit Committee Meeting 16 November 2016

Notice of an Audit Committee Meeting The next Audit Committee Meeting of the will be held on Wednesday 16 November 2016, at the Leeman Recreation Centre, from 4.30pm.

Peter Crispin Chief Executive Officer

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 1 DISCLAIMER

No responsibility whatsoever is implied or accepted by Shire of Coorow for any act, omission or statement or intimation occurring during Council/Committee meetings or during formal/informal conversations with Staff. Shire of Coorow disclaims any liability for any loss whatsoever and howsoever caused arising out of reliance by any person or legal entity on any such act, omission or statement or intimation occurring during Council/Committee meetings or discussions. Any person or legal entity who acts or fails to act in reliance upon any statement does so at that person's or legal entity's own risk.

In particular and without derogating in any way from the broad disclaimer above, in any discussion regarding any planning application or application for a licence, any statement or limitation of approval made by a member or officer of Shire of Coorow during the course of any meeting is not intended to be and is not taken as notice of approval from Shire of Coorow. The Shire of Coorow warns that anyone who has an application lodged with Shire of Coorow must obtain and only should rely on WRITTEN CONFIRMATION of the outcome of the application, and any conditions attaching to the decision made by the Shire of Coorow in respect of the application.

Signed on behalf of Council

Peter Crispin Chief Executive Officer

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 2 SHIRE OF COOROW QUESTIONS FROM THE PUBLIC

Any member of the public wishing to participate in Public Question Time during Council or Committee meetings is welcome to do so, however, Council requires your name, address and written questions to be provided to the meeting secretary.

NAME: ______

SIGNATURE: ______

ADDRESS:______

TELEPHONE: ______MEETING/DATE:______

NAME OF ORGANISATION REPRESENTING (if applicable):

QUESTION:

Please see notes on Public Question Time overleaf…

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 3 SHIRE OF COOROW

QUESTIONS FROM THE PUBLIC

The Shire of Coorow welcomes community participation during public question time. The following is a summary of procedure and a guide to completion of the required form.

a. The person asking the question is to give their name and address prior to asking the question. b. Questions are to be directed through the chair, with the Presiding Member having the discretion of accepting or rejecting a question and the right to nominate a Councillor or Officer to answer. c. In order to provide an opportunity for the greatest portion of the gallery to take advantage of question time, questions are to be as succinct as possible. Any preamble to questions should therefore be minimal and no debating of the issue between the Gallery, Councillors or Officers is permissible. d. Where the Presiding Member rules that a member of the public is making a statement during public question time, then no answer is required to be given or recorded in response. e. Questions which are considered inappropriate; offensive or otherwise not in good faith; duplicates or variations of earlier questions; relating to the personal affairs or actions of Council members or employees; will be refused by the Presiding Member as ‘out of order’ and will not be recorded in the minutes. f. Where a member of the public submitting a question is not physically present at the meeting, those questions will be treated as an item of correspondence and will be answered in the normal course of business (and not be recorded in the minutes). g. Questions from members of the public that do not comply with the Rules of Question Time or do not abide by a ruling from the Presiding Member, or where the member of the public behaves in a manner in which they are disrespectful of the Presiding Member or Council, or refuse to abide by any reasonable direction from the Presiding Member, will be ruled ‘out of order’ and the question will not be recorded in the minutes. h. Answers to questions provided in good faith, however, unless reasonable prior written notice of the question is given, answers should not be relied upon as being totally comprehensive. i. Where a question (compliant to these rules) is raised and is unable to be answered at the meeting, the question shall be ‘taken on notice’ with an answer being given at the next appropriate Council Meeting. j. Public Question Time is set for a maximum period of 15 minutes, and will terminate earlier should no questions be forthcoming. k. To enable all members of the public a fair and equitable opportunity to participate in Public Question Time, each person shall be provided a maximum two minutes time limit in the first instance, in which to ask a maximum of two questions (whether these are submitted ‘in writing’ or ‘from the floor’). A question may include a request for the tabling of documents where these are relevant to an issue before Council. l. Questions to be asked at the meeting will be registered, and the priority for asking questions shall be firstly ‘questions on which written notice has been given prior to the meeting’ (that is, prior to 12 noon on the day immediately preceding the meeting) and secondly, ‘questions from the floor’. m. Should there be time remaining on the initial period for Public Question Time (i.e. 15 minutes) after all members of the public have posed their initial allotment of two questions, the Presiding Member will then allow members of the public to sequentially (in accordance with the register) ask a further two questions (with a two minute time limit) until the initial period for Public Question Time has expired. n. Any extension to the initial period for Public Question Time is to be limited to a period that will allow sufficient time for any remaining members of the public to ask their initial allotment of two questions.

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 4 AGENDA

1. DECLARATION OF OPENING/ANNOUNCEMENT OF VISITORS: ...... 6 2. RECORD OF ATTENDANCE/APOLOGIES:...... 6 3. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE: ...... 6 4. PUBLIC QUESTION TIME: ...... 6 5. APPLICATIONS FOR LEAVE OF ABSENCE: ...... 6 6. PETITIONS/DEPUTATIONS/PRESENTATIONS: ...... 6 7. CONFIRMATION OF MINUTES: ...... 7 7.1 MINUTES OF THE AUDIT COMMITTEE MEETING HELD ON WEDNESDAY 10 FEBRUARY 2016 AT THE LEEMAN RECREATION CENTRE ...... 7 8. ANNOUNCEMENTS BY THE PERSON PRESIDING WITHOUT DISCUSSION: ...... 7 9. MATTERS FOR WHICH MEETING MAY BE CLOSED: ...... 7 10. REPORTS: ...... 8 10.1 DEPUTY CHIEF EXECUTIVE OFFICER’S REPORT: ...... 8 10.1.1 2015/2016 ANNUAL REPORT ...... 8 10.1.2 2015/2016 MANAGEMENT REPORT ...... 10 10.1.3 EXTENSION OF AUDIT CONTRACT – MOORE STEPHENS ...... 17 10.2 CHIEF EXECUTIVE OFFICER REPORT: ...... 46 10.2.1 REGULATION 17 – LOCAL GOVERNMENT (AUDIT) REGULATIONS 1996 ...... 46 11. QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN: ...... 48 12. URGENT BUSINESS APPROVED BY THE PERSON PRESIDING OR BY DECISION: ...... 48 13. MATTER BEHIND CLOSED DOORS: ...... 48 14. DATE OF NEXT MEETING: ...... 48 14.1 NEXT MEETING OF AUDIT COMMITTEE ...... 48 15 CLOSURE: ...... 48

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 5

1. DECLARATION OF OPENING/ANNOUNCEMENT OF VISITORS:

Councillor Clement, Presiding Member welcomed those present and opened the meeting at pm.

2. RECORD OF ATTENDANCE/APOLOGIES:

Councillor R J Clement Chairperson Councillor M J Girando President Councillor B A Jack Deputy President Councillor M R Bothe Councillor E M Cullen Councillor V R Oakes Councillor D A Rackemann Councillor G C Sims

Mr P J Crispin Chief Executive Officer Mrs L J Parola Deputy Chief Executive Officer Mr T B Brandy Manager Regulatory Services Mr P Wood Acting Manager of Works & Services

Apologies:

3. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE:

4. PUBLIC QUESTION TIME:

5. APPLICATIONS FOR LEAVE OF ABSENCE:

6. PETITIONS/DEPUTATIONS/PRESENTATIONS:

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 6

7. CONFIRMATION OF MINUTES:

7.1 MINUTES OF THE AUDIT COMMITTEE MEETING HELD ON WEDNESDAY 10 FEBRUARY 2016 AT THE LEEMAN RECREATION CENTRE

AUTHOR Leanne Parola DISCLOSURE OF INTEREST Nil DATE OF REPORT 27 September 2016 ATTACHMENT FILE ADM0081

COMMENT: Nil

OFFICER RECOMMENDATION: That the Minutes of the Audit Committee Meeting, as at separate Attachment , held on Wednesday 10 February 2016, at the Leeman Recreation Centre be confirmed as a true and correct record.

RESOLUTION: 2016/

Moved: Cr Seconded: Cr

That the Minutes of the Audit Committee Meeting, as at separate Attachment, held on Wednesday 10 February 2016, at the Leeman Recreation Centre be confirmed as a true and correct record.

CARRIED / Simple Majority

8. ANNOUNCEMENTS BY THE PERSON PRESIDING WITHOUT DISCUSSION:

At any meeting Council the person presiding may announce or raise any matter of interest or relevance to the business of Council or propose a change to the order of business.

Members may move that a change in order of business proposed by the person presiding not be accepted and if carried the change does not take place.

9. MATTERS FOR WHICH MEETING MAY BE CLOSED:

For the convenience of members of the public Council may identify, by decision, early in the meeting any matter on the agenda to be discussed behind closed doors and that matter is to be deferred for consideration as the last item of the meeting.

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 7

10. REPORTS:

10.1 DEPUTY CHIEF EXECUTIVE OFFICER’S REPORT:

10.1.1 2015/2016 ANNUAL REPORT

AUTHOR Leanne Parola DISCLOSURE OF INTEREST Nil DATE OF REPORT 20 October 2015 ATTACHMENT Under separate cover FILE ADM0150 & ADM0303

SUMMARY: Council is required to receive the Annual Report, incorporating the Audited Annual Financial Report, Auditors Report and Management Report for the Financial Year ending 30 June 2015.

BACKGROUND: Section 7.9 of the Local Government Act 1995 requires an audit to be undertaken and, on its completion, submitted to the Shire President and Chief Executive Officer of the Local Government, and to the Minister for Local Government.

It is a requirement that the Annual Audit be completed by 31 December following the close of the financial year. The audit was commenced on-site by Moore Stephens on 8 and 9 September 2016. The Audit Report and Management letter has been completed and received by the Shire President and Chief Executive Officer. The Auditor’s Report and Management Report are also submitted to the Shire of Coorow Audit Committee for further consideration. (See copy of Audit and Management reports attached for Councillors’ information only).

COMMENT: The Annual Report for 2015/2016 has now been completed and is included as an attachment to this report. The Annual Report will be available to the Public and Electors prior to the Annual Electors Meeting, subject to its acceptance by Council.

One statutory non-compliance matter was raised in the Independent Auditor’s Report to the Electors of the Shire of Coorow as follows:

Differential General Rates With respect to differential rates imposed for 2015/2016, • A brief statement of objects/reasons for imposing the differential rates was not included in the rate notice or information accompanying as required by Financial Management Regulation 56(4)(a)(i); • The reasons the rates differed from those set forth in the public notice were not included in the rate notice or information accompanying as required by Financial Management Regulation 56(4)(b)

Staff will ensure that this information is included in the information accompanying rates notices in the future.

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 8

STATUTORY ENVIRONMENT: Local Government Act 1995 Subdivision 4 — Electors’ meetings Division 5 — Annual reports and planning Division 3 — Conduct of audit Division 4 — General Local Government (Financial Management) Regulations 1996 Local Government (Administration) Regulations 1996 Part 3 — Electors’ meetings

In accordance with statutory requirements, Council must give a minimum of 14 days notice in calling the Annual Electors Meeting following acceptance of the Annual Report. It is recommended that the Electors General Meeting be held Coorow District Hall on Wednesday, 14 December 2016 commencing at 6.00 pm.

STRATEGIC IMPLICATIONS: There are no direct strategic implications in receiving the Shire of Coorow Annual Report.

POLICY IMPLICATIONS: Nil

VOTING REQUIREMENT: Absolute Majority

OFFICER RECOMMENDATION: That Council:- 1. Receives the Shire of Coorow Annual Report for the Financial Year ended 30 June 2016. 2. Holds its Annual Electors Meeting at the Coorow District Hall on Wednesday, 14 December 2016 commencing at 6.00 pm. 3. Submits a copy of the Shire of Coorow Annual Report to the Executive Director of the Department of Local Government and Communities as required by Local Government (Financial Management) Regulations clause 51(2).

RESOLUTION: 2016/

Moved: Cr Seconded: Cr CARRIED / Absolute Majority

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 9

10.1.2 2015/2016 MANAGEMENT REPORT

AUTHOR Leanne Parola DISCLOSURE OF INTEREST Nil DATE OF REPORT 20 November 2016 ATTACHMENT 10.1.2 FILE ADM0150 & ADM0303

SUMMARY: At the conclusion of the 2015/2016 Audit, Moore Stephens have provided the attached Management Report.

COMMENT: The comments made by the Auditors in the Management Report for the year ended 30 June 2016 again centred on the Shire’s financial and asset ratios, particularly with regard to the following:

• Asset Sustainability Ratio • Operating Surplus Ratio • Own Source Revenue Coverage Ratios • Asset Renewal Funding Ratio

The improvement of asset ratios is a complex issue and the auditor has recommended management review condition and assessments of remaining useful life of assets in the short to medium term.

Given the constraints on resources, staff recommend that this be undertaken as part of the three year revaluation cycle. The Shire’s building assets are due for revaluation this financial year, with roads the following year.

Ideally, Asset Management Plans should be reviewed as part of this process which can then feed into the Long Term Financial Plan and other integrated plans.. The Shire currently has two Asset Management Plans as follows: • Community Facilities • Traffic Infrastructure

Both Asset Management plans were adopted in May 2013, however are very ‘light on’ regarding details of the condition of assets and plans for renewal/upgrade. Significant work is required to review and improve both plans.

The Auditor’s recommendation to improve the Operating Surplus and Own Source Revenue Coverage ratios is for Council and Management to consider ways to improve the operating position either via increasing revenue or by decreasing expenditure (or both).

Councillors would be aware that staff are in the process of identifying areas of operational expenditure where savings could be made. For example, an independent

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 10 audit of Shire facilities will soon be carried out to make recommendations to reduce power consumption, and solar panels are soon to be installed on the Coorow Administration Centre to reduce consumption on that building.

Water harvesting projects have been carried out in Leeman and Coorow to reduce the amount of scheme water required for watering the ovals and Coorow Caravan Park. An engineer has recently been engaged to make a recommendation on extending the Leeman scheme to allow the Foreshore to also be reticulated using stormwater.

STATUTORY REQUIREMENTS: There are no statutory requirements in this regard.

FINANCIAL IMPLICATIONS: There are no immediate financial implications in this regard, but future plans for service levels and projects need to be mindful of the long term financial consequences.

VOTING REQUIREMENT: Simple Majority

OFFICER RECOMMENDATION: That the Auditor’s Management Report for the Financial Year ended 30 June 2016 be noted.

RESOLUTION: 2016/

Moved: Cr Seconded: Cr

CARRIED / Simple Majority

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 11

10.1.3 EXTENSION OF AUDIT CONTRACT – MOORE STEPHENS

AUTHOR Leanne Parola DISCLOSURE OF INTEREST Nil DATE OF REPORT 20 November 2016 ATTACHMENT 10.1.3 FILE ADM0081

SUMMARY: The Audit Committee are asked to consider extending the Audit Contract with Moore Stephens for a period of one year, with a possible one year extension.

COMMENT: The Shire has utilised the services of Moore Stephens as its auditor for a period of five years, with the audit ending after the 2015/2016 financial year.

The State Government has communicated its intention to amend the Local Government Act 1995 to allow for the Auditor General and the Office of the Auditor General to take responsibility for local government financial audits from 1 July 2017.

As a result, they have asked local governments who are currently out of contract to extend their audit contracts for a year, with an option to extend it for another year if need be to secure an auditor.

A quotation has therefore been sought from Moore Stephens to extend the Shire’s contract with them for one year, with an option for a further year.

STATUTORY REQUIREMENTS: Local Government Act 1995 7.3 – Appointment of Auditor 7.6 – Term of Appointment

While the Local Government Act 1995 only allows an appointment for up to five years, the Department of Local Government has advised staff that they will allow the Shire to extend its contract with Moore Stephens for another year with the option of a further year during this transition period.

FINANCIAL IMPLICATIONS: There 2016/17 Budget includes an amount of $36,000 for audit services, including the interim audit and final audit. The quotation from Moore Stephens was $20,460 (including GST) for 2016/17 and $21,010 (including GST) for 2017/2018.

VOTING REQUIREMENT: Simple Majority

OFFICER RECOMMENDATION: That the proposal from Moore Stephens to provide Audit Services for the 2016/17 and 2017/2018 financials year be accepted.

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 12 Provision to Provide External Audit Services

Shire of Coorow October 2016

www.moorestephens.com.auwww.moorestephens.com.au Serious about Success®

Contents

Why Appoint Moore Stephens ...... 3 Executive Summary ...... 4 Relevant Experience ...... 8 Methodology ...... 11 Key Personnel ...... 15 Fee Estimates ...... 23 Hours ...... 25 Accreditation, Insurance and Quality ...... 26 Other Matters ...... 27

Shire of Coorow Moore Stephens I 2 Proposal for External Audit Services

Why Appoint Moore Stephens

With local government experience spanning over three decades at all levels of our firm, we have an excellent track record of delivering high quality services to local government throughout .

This proposal will outline the following reasons why you should appoint Moore Stephens:

Our team have an in-depth understanding of the local government industry and in particular all the relevant requirements with respect to the Statutory Financial An experienced team Audit, Financial Management Review and Audit Regulation 17 Risk Management Review.

We are familiar with We can demonstrate a proven capacity to work with your Shire to achieve your Shire outcomes and meet deadlines.

We have an excellent track record of delivering high quality services to local government throughout Western Australia. An integrated service Our service is not just compliance focused. We seek to work with you to help add value across all facets of your Shire.

We have provided similar services to your Shire and other local governments of Relevant experience a similar size and can use that experience to your benefit.

All our engagements have a high level of partner and senior staff involvement. Accessible partners and This increased accessibility means we are able to develop a detailed staff understanding of your Shire to deliver a practical, value for money service.

Tradition and integrity combined with thoughtful innovation means Moore The right reputation Stephens will reflect and support the reputation and credibility of your business.

We are sensible in calculating our proposed fee, to ensure both of our The right price organisations receive value from the relationship.

We trust our proposal will contain all the information you require at this stage. You would continue to be an important client for Moore Stephens, and we look forward to discussing your requirements further.

Shire of Coorow Moore Stephens I 3 Proposal for External Audit Services

Executive Summary

When you select Moore Stephens as your auditor, you will have access to a team with the most collective years of local government experience in Western Australia.

Fees Our fee quotes assume the Shire of Coorow will be ready for all of our procedures and will have all requested records and information available and up to date at the time of our visits. On this basis, our fee quote provided (excluding GST and disbursements) can be considered as a fixed price quote as follows:

Total (ex GST)

$ Year ended 30 June 2017 18,600 Year ended 30 June 2018 19,100

Further details in respect of our quoted fees may be found in the “Fee Estimate” section. Methodology and approach When you select Moore Stephens as your service provider you will have access to a team with the most collective years of local government experience in Western Australia. This is very important in keeping your level of risk to a minimum (refer Costs vs Benefits for further details). We also have a detailed compliance component which we believe is far superior to any of our competitors (refer Detailed Compliance Component section for further details). In addition, you will have access to our proprietary ratio analysis statistics which are provided to all audit clients as a means of comparing their statutory ratios to those of their peers. This was greatly enhanced in 2015 and included detailed comparison/analysis of all reported local government statutory ratios for the 2013 and 2014 years (that is, since the implementation of the new ratios). It is included as part of our core service. Moore Stephens has WALGA preferred supplier status and is able to offer a complete audit team with considerable depth of experience, expertise and knowledge of the local government industry in Western Australia. This means we are able to provide an efficient and effective audit process. All staff who would be involved in the audit will be sourced from our dedicated local government service team and all have had experience over a significant number of years and engagements.

Shire of Coorow Moore Stephens I 4 Proposal for External Audit Services

Executive Summary (continued)

Cost vs benefit (Is it worth the risk?) • Not all audits are the same – “you get what you pay for”. • Whilst the temptation may exist to save a few dollars, expenditure on audit services is not a major expense. • Opting for the cheapest service may increase the risks exponentially. • These questions should be asked:

o “Does a cheaper fee compromise a comprehensive approach?” o “Are all service providers performing the same task and looking to assist Council reduce the risks?”

o “Do all firms have the broad understanding and knowledge of the industry with the industry’s best outcomes at heart?” • Our understanding, knowledge and commitment to the industry is supported by the findings of the Public Accounts Committee (PAC) report entitled “Improving Local Government Accountability” as tabled in Parliament (November 2015). Three examples of better practice by audit firms were highlighted in the report and all are able to be credited to us. It is clear from the findings and recommendations of the PAC there were inconsistencies in the quality of reporting amongst audit firms and we take great comfort in the fact our reporting approach was highlighted as better practice. Detailed compliance component Local Government (Audit) Regulation 3(b) requires the auditor to include in the audit report any matters indicating non-compliance with Part 6 of the Act, the Local Government (Financial Management) Regulations 1996 or applicable financial controls in any other written law. • Our audit procedures are designed to ensure a comprehensive assessment of this mandatory compliance aspect. • This requirement should not be overlooked and all auditors should understand their statutory obligation in this regard. • This requirement should be considered when comparing audit proposals. • Please note, we are able to provide details of our checklists if you require. Due to specific Intellectual Property rights we have withheld them at this juncture. Understanding your Shire Knowledge of local government is a key tenet to a robust audit approach. Whilst our previous experience of your Shire and the industry in general assists us in this regard, we will continued to seek to improve our understanding of your Shire and operating environment.

Shire of Coorow Moore Stephens I 5 Proposal for External Audit Services

Executive Summary (continued)

On time, on budget, no surprises Our engagement team focuses on client’s demands and needs – on time, on budget, without any surprises on completion. Key issues are dealt with on an ongoing and timely basis and we go out of our way to ensure your timetable and needs are met. Our approach is to complete the audit and tax reporting as soon as possible rather than it being a long drawn out process. We consistently meet deadlines and client expectations, and fully appreciate how important deadlines are to you. Valuable relationships To provide you with a valuable service we need to fully understand you and your objectives. We view our relationship with you as a two-way process: while it is vital that we are available when you need us, it is of equal importance that we contact you when issues arise that you need to know about. It is through this regular communication that the relationship between our two businesses will continue to develop - as will the value you will obtain from our services.

“The audit process involves continual and ongoing liaison between all members of the Moore Stephens team and regular updates on progress to you.”

Shire of Coorow Moore Stephens I 6 Proposal for External Audit Services

Shire of Coorow Moore Stephens I 7 Proposal for External Audit Services

Relevant Experience

The firm is the largest auditor of local government in the State and for the year ended 30 June 2016 we are the incumbent auditors of the following forty six (46) local governments: City of Kalgoorlie-Boulder Shire of Augusta-Margaret River Shire of Mt Marshall Shire of Shire of Cocos (Keeling) Islands Shire of Coorow Shire of Serpentine-Jarrahdale Shire of Derby-West Kimberley Shire of East Shire of Wongan-Ballidu Shire of Wyndham-East Kimberley Other local government experience Over the past twenty years, we have also conducted an annual workshop, which in 2016 was attended by over one hundred (100) local governments from all over Western Australia. These workshops have addressed the Annual Financial Report, Budget, accounting standards, the mandating of fair value, infrastructure assets, cashflow statements, ratio analysis, sustainability and various other topical accounting issues. We have developed a model financial report and model budget which address all relevant disclosure requirements and attempt to establish a consistent guideline for local governments to follow. These reports are updated annually as disclosure requirements are amended. Each year, the model is purchased by in excess of one hundred and twenty (120) authorities statewide. In 1999, we developed a strategy to assist local government with the implementation of GST and the firm has a dedicated tax task force to assist Councils in the complex areas of GST and FBT. We are also the long serving contract provider for WALGA’s tax service Since November 1999, we have provided a remote accounting service to many regional remote local governments. This service includes the provision of a full general ledger, monthly and quarterly accounts, principal activity plan, budget, annuals and general accounting assistance. The service has also developed its own suite of software and this is currently used by a number of other municipalities. This software contains a unique rating package we have developed on our own initiative and are presently in development of a new online general ledger to complement our current offering. Shire of Coorow Moore Stephens I 8 Proposal for External Audit Services

Relevant Experience (continued)

Other local government experience (continued) In addition to audit and accounting services, we have also provided extensive assistance to local government in the following areas during the past ten years.

• Financial Management Reviews • Ratio Interpretation Assistance • Financial Report preparation • GST & FBT Advice • Audit Regulation 17 Reviews • Long Term Financial Plans • Statutory Compliance Audits • Strategic Plans • Infrastructure Assets advice • Corporate Business Plans • Fair Value implementation • Workforce Plans • Budget Conversion and Assistance • Asset Management Plans

As an added service, we also produce and distribute newsletters and accounting updates which address topical issues. We are a subscriber member of Local Government Managers Australia (LGMA) and an active participant in Institute events. In 2014, we became a Foundation Partner of LGMA having previously been a Principal Partner since the beginning of 2008 and a major sponsor of the annual conference since 2000 as well as other regional conferences and sporting events. Other audit experience In add addition to our local government audits we have a number of audit engagements in the following categories: • Listed Entities • Other Public Entities • Large Private Companies • Foreign Amount Companies • Indigenous Organisations • Significant Not-For-Profit Organisations Our base of audit clients and our experience in commercial enterprises gives us exposure to contemporary approaches in:

o Management; o Data collection; o Receivables and collection systems; o Infrastructure asset recording and management; and o Labour force management. We offer the benefit of this exposure in our audit of systems and policies and deliver these benefits as part of our core service.

Shire of Coorow Moore Stephens I 9 Proposal for External Audit Services

Relevant Experience (continued)

Value added services specific to the local government industry Audit liaison and guidance Liaison on audit and accounting issues is not only provided free of charge to audit clients during the year, it is encouraged. We believe by obtaining an answer when it is required, the Council will be more able to provide for an efficient audit process. We also regularly provide the industry (all local governments) with newsletters containing comment and direction on topical issues. Model financial report, model budget and annual workshop A main ingredient of our local government support is our model financial report and model budget which is updated annually. This has, over the past nineteen years, established a consistent guideline for local governments to follow in respect of statutory reporting obligations. An indication of its worth to the industry is in the number of authorities (clients and non-clients) that have adopted the reporting formats it provides and the number who attend the course each year. This model also forms the basis of our annual workshop series. This addresses topical accounting issues, reporting amendments and provides a forum for local government accounting practitioners to obtain guidance on various accounting related matters. In response to industry requests to better align with budget timetables, 2015 saw us split the budget module from our May workshop and now present this in February. We also conduct an annual ‘Nuts and Bolts’ workshop (November/December) which deals with fundamental local government accounting concepts and is aimed at entry level finance officers. Specific local government knowledge Over the course of the past several years, due to our industry knowledge and practical involvement, we were best placed to advise our clients with respect to the many financial changes. These included the changes emanating from Financial Management Regulations 16 (Reserves vested in Council requiring recognition), 17A (mandating of Fair Value) and 50 (Ratios). We believe this was very evident during the years ended 30 June 2013, 2014 and 2015 particularly with respect to Fair Value. The trend has continued post implementation, as clients deal with the ongoing effects these changes have had. This includes managing depreciation on considerably higher asset values, interpreting ratios and the new requirements associated with Audit Regulation 17. GST, FBT and salary packaging advice As the contracted provider of the WALGA tax service, our local government services division in conjunction with our tax consulting division is also able to provide detailed advice and assistance in the complex areas of GST, FBT and salary packaging. Such advice would be provided at applicable rates.

Shire of Coorow Moore Stephens I 10 Proposal for External Audit Services

Methodology

Scope/Approach Our audit will be carried out in accordance with Australian Auditing Standards, Auditing Guidance Statements, the Local Government Act 1995 (“the Act”) and accompanying Regulations. Procedures are designed to ensure your specifications and the Minimum Standard Audit Specification as per the Department of Local Government and Regional Development’s Operational Guideline Number 9 are met. These include the critical audit areas as follows: • Revenue • Capital Commitments • Budget compliance with • Expenditure • Governance and Control respect to timing, format and • Current Assets • Financial Statements the previous year’s final • Investments • Statement of Cash Flows audited position • Non-Current Assets • Statutory Obligations • Financial ratios required by • Liabilities • Accounting Policies and Notes the Financial Management • Reserve Funds to the Financial Statements Regulations • Contingent Assets/Liabilities • GST /FBT Compliance As part of these procedures we will undertake testing to: Assist us in forming an opinion as to whether: a) the accounting records are reliable and adequate as a basis for the preparation of the financial statements; b) the accounts are properly kept; c) the annual financial report; i. is prepared in accordance with the financial records; and ii. represents fairly the results of the operations of the local government and the financial position of the local government at 30 June in accordance with: − Australian Accounting Standards; − the Local Government Act 1995 (as amended); − the Local Government (Financial Management) Regulations 1996 (as amended); and − other mandatory professional reporting requirements. d) there are any material matters indicating a significant adverse trend in the financial position or the financial management practices of the Shire; e) there are any matters indicating non-compliance with Part 6 of the Local Government Act 1995 (as amended), the Local Government (Financial Management) Regulations 1996 (as amended) or applicable financial controls of any other written laws; f) details of whether information and explanations were obtained by the auditor; g) a report on the conduct of the audit; and h) the opinion of the auditor as to whether or not the specific financial ratios reported are supported by verifiable information and reasonable assumptions.

Shire of Coorow Moore Stephens I 11 Proposal for External Audit Services

Methodology (continued)

Scope/Approach (continued) Our audit procedures are designed to ensure a comprehensive assessment of this mandatory compliance aspect in relation to points 1(d) and (e) above (as required by Local Government (Audit) Regulation 3(b)). From experience we are aware our processes are much more comprehensive than our competitors and demonstrate a far greater understanding of the local government operating environment. This requirement should not be overlooked and all auditors should understand their statutory obligation in this regard. We take our responsibility as local government auditors very seriously, consider ourselves the leader in the field and believe we have demonstrated this consistently over the past three decades. Please note, we are able to provide details of our checklists if you require. Due to specific Intellectual Property rights we have withheld them at this juncture. 1. All bank and cash balances will be subject to third party confirmation and tests will be undertaken to ensure investments are made in accordance with legislation. 2. Examine the local government’s receipting function and perform detailed testing as considered necessary; 3. Examine money owing to the local government including testing recoverability, follow up procedures and compliance with relevant legislation; 4. Review payment vouchers (including credit card transactions) and ensure appropriate procedures exist in respect to authorisation and payment of accounts as well as detailed testing as considered necessary; 5. Perform a review of controls surrounding payroll and staff leave records and perform detailed testing as deemed necessary; 6. Review of rating records including rate imposition, valuations, compliance with legislation and detailed testing as required; 7. Review all borrowing transactions to ensure they have been conducted in accordance with the Act; 8. Review reserve transactions to ensure compliance with the legislation; 9. Review asset register and perform testing on ownership, additions and depreciation calculations to determine accuracy and if in accordance with the local government’s policies; 10. Review all transactions involving land and other property to ensure legislative requirements are complied with and the local government has right of occupancy; 11. Review agreements where the local government has leased land to third parties and help ensure compliance with relevant legislation in respect of them; 12. Review of the budget and related processes to ensure compliance with the Act and accompanying regulations; 13. Review of all minutes of Council meetings (and Committees if applicable) to help determine items of audit interest and compliance with the Act and accompanying regulations; and 14. Examine tenders to ensure compliance with the Act and accompanying regulations.

Shire of Coorow Moore Stephens I 12 Proposal for External Audit Services

Methodology (continued)

Scope/Approach (continued) As part of our audit procedures, we will also review the Asset Management Plans and Long Term Financial Plans to ensure they have been completed in accordance with statutory requirements, and review the net current assets brought forward from the previous year reported in the annual budget. It should be appreciated the areas detailed above are not exhaustive. Our audit procedures will examine other areas as deemed appropriate in order we can form an opinion on the financial statements of the Shire and make comments in regard to the accounting systems and procedures in place. Our final visit is scheduled to: • be mutually convenient; • be within 30 days of being advised the accounts and annual financial report are available for audit; and • enable you to meet your deadline (subject to your audit readiness). An exit interview will be performed at the conclusion of our audit field work. We will also liaise with staff to ensure meetings with the CEO, Council and/or the Audit Committee occur as required. In accordance with the Act and Regulations, this may be by electronic means. Our audit fee is based on the current above-mentioned scope requirements. In the event of a significant change in the required scope the audit fee may be re-negotiated. We also require the Shire to maintain adequate accounting records and prepare the annual financial report in accordance with applicable accounting standards. We will send an audit requirements letter summarising our information requirements for the audit prior to our final visit. Providing all necessary information is made available to us as required, we undertake to issue our audit report and management report by the required deadline (as determined each year) and further undertake to provide such reports to the Council and Minister as required.

Shire of Coorow Moore Stephens I 13 Proposal for External Audit Services

Shire of Coorow Moore Stephens I 14 Proposal for External Audit Services

Key Personnel

The Right People Our philosophy when working with you will be to ensure that your needs are our priority, and it is this principle which will form the basis of our relationship. Moore Stephens is a people-focused business and client relationships are partner-led. Each member of the core team will have sufficient knowledge of your business and industry sector to provide you with the support you require. Including Partners (which currently number 14 providing professional services), we have a team of 43 experienced full time audit and 38 experienced full time tax professionals so are adequately resourced to meet and cater for your needs. Wen-Shien Chai (Chai) would continue to act as the engagement Parnter. Profiles of key individuals within the firm may be found on the following pages. All team members assigned to your engagement will have appropriate experience. Staff continuity strategy Wherever possible, we shall endeavour to utilise the same team members on subsequent audits. We have been able to demonstrate this ability by virtue of our historically low staff turnover rate. Additional work For any additional work, we would agree terms of reference with you and provide an estimate of our fees in advance.

Shire of Coorow Moore Stephens I 15 Proposal for External Audit Services

Key Personnel (continued)

Wen-Shien Chai

Audit Engagement Partner

Chai’s wide local government audit Relevant Experience: experience adds further skills and • Commenced his career as an Auditor in 1996 experience to our audit team. • Migrated to Australia from Malaysia at the end of 2002 after 8 Role: years in various audit roles • Audit and Assurance Partner • Admitted as an Australian Chartered Accountant in 2008 Qualifications: • Has worked across a wide range of clients and industry groups • Bachelor of Accounting and Finance • Joined Moore Stephens in May 2007, managing a varied client base and has engagement partner responsibility for a significant • Chartered Accountant (Member) number of Local Governments (including the Shire of Coorow) • Registered Company Auditor

Shire of Coorow Moore Stephens I 16 Proposal for External Audit Services

Key Personnel (continued)

David Tomasi

Audit Support Partner

David brings the necessary local Relevant Experience: government experience, expertise and • Commenced his career as an Auditor in 1986 knowledge to help ensure an efficient, effective and value for money service. • Broad range of experience across all industry sectors including five years with a “big 4” accounting firm and twelve months in Role: the UK • Partner in charge of the Audit and • Extensive local government experience since 1990, including Local Government Divisions development of the firm’s local government methodology and • Quality Control Leader approach and being engagement partner on a significant number of our local governments spanning three decades • Engagement Partner (including Local Government Audit and • Facilitated Strategic Plans at two local government authorities Consulting engagements) • Involved in numerous special investigations and consulting engagements Qualifications: • Presented all of the firm’s workshops (since inception in 1995) • Bachelor of Commerce (UWA) • Previously a member of the DLGRD’s Financial Reporting • Chartered Accountant (Fellow) Working Party, which, amongst other things, was charged with • Registered Company Auditor the review of the Financial Management Regulations to ensure consistency with recent changes to Australian Accounting • Registered Tax Agent Standards (AIFRSs) and providing guidance on other financial • Registered Co-operative Company reporting matters Auditor

Industry Papers Presented: • Registered Self-Managed David has presented many Papers covering industry specific matters, Superannuation Fund Auditor including: Asset Management, Cash Flow Statements, Local Government Audit and Accounting, IFRS, Fair Value, Reporting, ROMAN II and Cloud Computing.

Shire of Coorow Moore Stephens I 17 Proposal for External Audit Services

Key Personnel (continued)

Greg Godwin

Audit Support Partner

Relevant Experience: Greg’s specific local government knowledge and experience helps provide • Broad range of experience across all industry sectors added quality to the audit process. • Commenced his own practice, Godwin & Co Chartered Role: Accountants, in 1997 building it to a successful ten person practice before migrating to Australia in 2005 • Audit and Assurance Partner • Has over 11 years of extensive exposure to the local Qualifications: government industry in Western Australia • Bachelor of Commerce and • Currently the engagement Partner for approximately half of the Accounting firm’s local government audit clients and has a number of corporate clients that add to his experience and skills • Chartered Accountant (Member) • Industry Papers Presented: Registered Company Auditor • Registered Self-Managed Greg has presented a number of Papers covering industry specific Superannuation Fund Auditor matters.

Shire of Coorow Moore Stephens I 18 Proposal for External Audit Services

Key Personnel (continued)

Paul Breman Local Government Services

Director

Relevant Experience: Paul’s experience and “hands-on” knowledge is widely recognised in the • Involved in the Local Government industry for nearly 30 years Industry. • Previously held positions at a variety of local governments in Role: WA ranging from large metropolitan Councils such as the to small rural local governments such as the Shire of • Local Government Director West Arthur • Responsible for our Remote • Joined Moore Stephens in 2007 from his most recent position Accounting Services, IT Solutions as Executive Manager of Corporate Services, and all consulting engagements • A Certified Practising Accountant with an in-depth knowledge Qualifications: of local government accounting and governance practices • Bachelor of Business • An active member of the Department’s Financial Management Working Party • Certified Practicing Accountant (CPA Australia) • An LGMA Finance Managers Group committee member • Diploma in Local Government (C) • Recipient of numerous financial management awards including the WA Public Sector CPA of the Year 2001 • Brings to the firm a rare strength of local government experience which demonstrates the firm’s long term commitment to the Industry

• Detailed knowledge of the industry adds depth and understanding to all of our local government audit engagements

Shire of Coorow Moore Stephens I 19 Proposal for External Audit Services

Key Personnel (continued)

Russell Barnes Local Government Services

Director

Relevant Experience: Russell has a wide ranging local government experience built on a • Immigrated to in July 2007 and joined our advisory significant number of years as a services division. Appointed a Director of Moore Stephens in consultant. July 2015. Role: • Combines over 9 years of providing advisory services to local government in Western Australia and over 14 years in senior • Local Government Director management roles in industry. • Engagement Director on all • Strong analytical skills and specialises in integrated planning and consulting engagements reporting. Qualifications: • Developed much of the firm’s methodology with respect to business planning, financial reporting, long term financial • Bachelor of Commerce planning, risk management, asset management and Audit • Graduate Diploma in Computer Regulation 17 Risk Management Reviews. Studies • Responsible for all of the firms Audit Regulation 17 Risk Management Reviews.

Shire of Coorow Moore Stephens I 20 Proposal for External Audit Services

Key Personnel (continued)

Organisational Chart and Capacity As detailed in this document, Moore Stephens and the firm’s key personnel have developed a wealth of experience in local government. The approach and methodology developed by the firm over this time also assists delivery of an efficient and effective audit service. The size of the firm (in numbers and experience) also allows flexibility and will ensure we are able to complete the engagement in your required timeframe.

Shire of Coorow Moore Stephens I 21 Proposal for External Audit Services

Shire of Coorow Moore Stephens I 22 Proposal for External Audit Services

Fee Estimates

In detailing our fee structure, we wish to draw your attention to our Executive Summary section and the specific parts of this proposal we have highlighted in bold red text. We pride ourselves on providing what we consider is the highest level of review amongst local government audit service providers to ensure we meet our statutory obligations as auditor of your Shire as well as the value add you need to assist the most efficient and effective allocation of Shire resources. We take our responsibility in this regard very seriously and consider ourselves the leader in the field. Our fee quotes for the provision of audit services are as follows:

Fee Quote Travel Expenses GST Total (GST inc) Year Year Ended $ $ $ $ 1 30 June 2017 18,000 600 1,860 20,460 2 30 June 2018 18,500 600 1,910 21,010

The fees and time quoted are inclusive of travel related expenses as shown above. Reasonable accommodation and incidental expenses (based on our internal “Travel Expenses Policy”) will be charged in addition to the fees quoted above and will be invoiced at cost to the Shire. The above fees are also based on the nature of each engagement being “clean” and on the assumption all information requirements are met (prior to our year end visit an information requirements letter is sent). They also assume no major accounting or system weaknesses are encountered which would require any abnormal additional investigation and testing. Should engagement conditions vary or the level of operations of the Shire vary significantly from those upon which we have based our quotation, we reserve the right to renegotiate the fee for any given year (subject to mutual agreement). Please note, the above fees quoted do not include any fee associated with the engagement partner meeting with the audit committee as this is dependent on the particular forum adopted each year. This fee will be subject to separate negotiation once the manner of the meeting is determined each year. As a minimum, a fee of $500 will apply for preparation and attendance on a telephone conference. If the meeting was timed to coincide with a scheduled audit visit, no additional charge would be made. If satisfactory to Council, we would propose the fee be billed in two equal instalments, after our interim visit and following completion (sign off) of each year’s audit. Any additional work in the form of accounting assistance or other services outside the scope of the audit function will be subject to a separate fee to be agreed upon with you prior to the work being undertaken. Price Variation Mechanism Our price increases are not based on any indexation. They are firm fixed prices in relation to each year as detailed above.

Shire of Coorow Moore Stephens I 23 Proposal for External Audit Services

Fee Estimates (continued)

Certifications/ Acquittals (Including Roads to Recovery and Pensioner Deferred Rates) Other certifications/acquittals are considered to be outside the scope of our normal audit function as both the number and the scope of work varies significantly from acquittal and from year to year. If all details are prepared for us and we are able to complete with a minimum of fuss, our charges typically fall in the $500 to $1,500 (GST exclusive) range per certification/acquittal (at current indicative rates) and we are very willing to quote a fixed amount prior to commencing each certification. As a general guide, for a general quote, the fee for the majority of the acquittals we certify are in the $800-$1,000 (GST exclusive) range. It should be noted, our firm has a dedicated acquittals section which has oversight by David Tomasi and is managed by Andries Bekker. The sole focus of the section is the audit certification of funding acquittals. David and Andries have developed a strong working relationship with key funding bodies. In particular, we have direct contact with Alan Chisholm at the (Federal) Department of Infrastructure and Regional Development (Roads to Recovery) and officers within the (State) Department of Regional Development (CLGF/Royalties for Regions) This dedicated section and line of communication now makes for a much more efficient acquittals process with faster turnaround times. The completion of acquittal certifications does not depend on staff being available from other engagements. Indicative Costs for Additional Services The hourly rate for additional services depend upon the level of advice required. It is difficult to commit a firm per hour price until the exact extent of the level of advice and work required is known. As at 1 July 2016, indicative rates for this type of work are as follows:

Per Hour (GST Exc) $ Partner 450 – 600 Associate Director 350 – 400 Manager 250 – 300 Senior 180 – 200 Intermediate 140 – 180 Graduate 120

We further undertake to provide an estimate of hours and staff level required based on the scope of each task prior to commencement in each instance.

Shire of Coorow Moore Stephens I 24 Proposal for External Audit Services

Hours

Estimated hours with respect to the provision of services are as follows:

Interim visit Hours Partner 3 Manager / Supervisor / Senior / Intermediate / Graduate (predominately on site) 35 Planning/Secretarial 2 40 Final visit Partner 5 Manager / Supervisor / Senior / Intermediate / Graduate (predominately on site) 47 Planning/Secretarial 2 54 Total hours 94

It should be appreciated our audit team has a wealth of Local Government experience. This is due largely to the wealth of local government experience provided by our service team and the fact the Engagement Partner is actively involved in the industry and fieldwork. In addition to the hours above, our Partner and Manager spend additional time to ensure the audit is appropriately supervised. Our experience and approach when coupled with our service level, provides a very efficient and effective audit process.

Shire of Coorow Moore Stephens I 25 Proposal for External Audit Services

Accreditation, Insurance and Quality

Partners Should we be successful in obtaining the statutory audit contract, the following are the qualified partners of the firm to be nominated as auditors:

Registered Company Name Auditor Number Wen-Shien Chai 229761 David Tomasi 15724 Greg Godwin 310219 Accreditation All client service partners hold public practicing certificates and are members of Chartered Accountants in Australia and New Zealand. Insurance coverage

Type Insurer – Broker Policy No Value ($) Expiry Date Public Liability CGU Insurance Ltd 15T7035943 $20M 30/06/2017 Professional Indemnity CGU Insurance Ltd C6MIS1344679 $15M 30/06/2017 Workers Compensation CGU Insurance Ltd O/15-6547 $50M 30/06/2017 Quality Assurance The firm takes a three-tiered approach to quality assurance: • Project Specification; • Staff Selection; and • Quality Reviews. All review projects are designed and documented before commencement to ensure the objectives of our client are specifically addressed and our methodology is understood. The document is approved prior to commencement of fieldwork. Field operatives and supervising personnel are selected on the basis of their experience in the project subject matter and their ability to add value to the final project outcome. As a network firm that undertakes audit and other assurance engagements, we are required to establish and maintain a system of quality control that includes policies and procedures in accordance with the requirements of ASQC1. Moore Stephens WA is subject to annual peer reviews by Moore Stephens Australia as well as regulatory practice inspections by the Australian Securities & Investment Commission and Chartered Accountants in Australia and New Zealand. Our most recent ASIC inspection was conducted in June 2014 whilst our MSA peer review is completed annually.

Shire of Coorow Moore Stephens I 26 Proposal for External Audit Services

Other Matters

Disclaimer Moore Stephens WA carries on business separately and independently from other Moore Stephens member firms around Australia and worldwide. Services provided under this engagement are provided by More Stephens WA and not by any other independent Moore Stephens member firm. No other independent Moore Stephens member has any liability for services provided by other members. Terms and Conditions Unless otherwise agreed in writing, Moore Stephens’ standard terms concerning billings and fees will apply. Confidentiality The information contained in this proposal is confidential and cannot be conveyed to any party other than the party to which it is directed. Conflicts of Interest The firm is not aware of any existing or potential relationship, transaction or holding that would compromise its objectivity in the conduct of the services envisaged in this contract. Should the possibility of a perceived or actual conflict arise the matter would be raised with the Chief Executive Officer immediately and activities suspended until the issue was resolved to your satisfaction.

Shire of Coorow Moore Stephens I 27 Proposal for External Audit Services

Level 15, 2 The Esplanade, Perth WA 6000 T +61 (0)8 9225 5355 F +61 (0)8 9225 6181 [email protected] www.moorestephens.com Serious about Success®

10.2 CHIEF EXECUTIVE OFFICER REPORT:

10.2.1 REGULATION 17 – LOCAL GOVERNMENT (AUDIT) REGULATIONS 1996

AUTHOR Peter Crispin DISCLOSURE OF INTEREST Nil DATE OF REPORT 2 November 2016 ATTACHMENT 10.2.1.1 (Confidential Quotations) FILE ADM0081 – Financial Management, Audit, External

SUMMARY: To consider the most appropriate way to comply with Regulation 17 or the Local Government (Audit) Regulations 1996.

COMMENT: Regulation 17 was introduced to the Local Government (Audit) Regulations 1996 in February 2013 with Local Governments needing to comply by December 2014. As the Chief Executive Officer is required to conduct this review every 2 calendar years, it is due again this year.

This review could be conducted internally (as it appears the initial review was) but it has been suggested that an external review (looking at the systems and procedures from a different prospective) would be more advantageous to the Shire rather than just complying with the regulation.

For comparison a number of quotes have been requested. Two have been received (see confidential attachments) and one further one is expected prior to the meeting.

STATUTORY REQUIREMENTS: Local Government (Audit) Regulations 1996.Regulation 17 states: CEO to review certain systems and procedures (1) The CEO is to review the appropriateness and effectiveness of a local government’s systems and procedures in relation to — (a) risk management; and (b) internal control; and (c) legislative compliance. (2) The review may relate to any or all of the matters referred to in subregulation (1)(a), (b) and (c), but each of those matters is to be the subject of a review at least once every 2 calendar years. (3) The CEO is to report to the audit committee the results of that review.

FINANCIAL IMPLICATIONS: The 2016/2017 Annual Budget includes an amount of $20,000 for Integrated Planning and other Consultancy.

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 13

VOTING REQUIREMENT: Simple Majority

OFFICER RECOMMENDATION: That the Chief Executive Officer be authorised to engage a consultant to conduct a review into the appropriateness and effectiveness of the Shire’s systems and procedures in relation to risk management, internal control and legislative compliance as required by Regulation 17 of the Local Government (Audit) Regulations 1996.

RESOLUTION: 2016/

Moved: Cr Seconded: Cr

CARRIED / Simple Majority

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 14

11. QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN:

12. URGENT BUSINESS APPROVED BY THE PERSON PRESIDING OR BY DECISION:

13. MATTER BEHIND CLOSED DOORS:

14. DATE OF NEXT MEETING:

14.1 NEXT MEETING OF AUDIT COMMITTEE

The Audit Committee will meet when next required (no set date).

15 CLOSURE: There being no further business the Chairperson, Cr R Clement closed the meeting at pm

Agenda for Audit Committee Meeting to be held Wednesday 16 November 2016 Page 15