Agenda Riverina Joint Organisation Board Meeting Thursday, 8 August 2019 8.30a.m. for a 9.00a.m. start
Agenda 1. Apologies ...... 2 2. Move to Committee of the Whole ...... 2 3. Declarations of Interest ...... 2 4. Confirmation of Minutes of the Previous Meeting ...... 2 5. Business Arising from Previous Board Meetings ...... 2 6. Correspondence ...... 2 7. Executive Officer Report ...... 3 7.1 JO Funding Arrangements ...... 3 7.2 JO Strategic Plan and Statement of Regional Priorities...... 3 7.3 JO Audit ...... 4 7.4 JO Working Party Meetings ...... 4 7.5 JO Core Activities – Advocacy and Lobbying ...... 6 7.6 JO Core Activities – Intergovernmental Co-operation ...... 7 7.7 Governance and Compliance Activities ...... 8 8. JO Chairs’ Meeting ...... 8 9. Financial Report ...... 9 10. Urgent Business without Notice ...... 9 11. Resolution to Move out of Committee of the Whole ...... 9 12. Next Board Meeting ...... 9
1 1. Apologies The Executive Officer to advise the meeting of apologies.
Recommendation: That the Board receive the apologies.
2. Move to Committee of the Whole The JO Board may conduct its business as a Committee of the Whole. The JO Board is required to move a motion to that effect at the commencement of the meeting and to move a resolution at the end of the meeting to come out of Committee of the Whole.
Recommendation That the Board move a motion to conduct its business as a Committee of the Whole.
3. Declarations of Interest Board Members and senior staff of the JO are required to declare any interests in relation to matters on the agenda.
4. Confirmation of Minutes of the Previous Meeting The Board to confirm the minutes of the 6 June 2019 Board meeting.
Recommendation: 1. That the minutes of the 6 June 2019 Board meeting be confirmed as a true and accurate record.
5. Business Arising from Previous Board Meetings The following matters arise from previous meetings: - Letters of Congratulations to Federal Ministers - completed
Recommendation That the Board receive and note the Report
6. Correspondence The inwards and outwards correspondence is listed in Attachment One.
Recommendation That the Board receive and note the Correspondence
2 7. Executive Officer Report
7.1 JO Funding Arrangements At a meeting of the Joint Organisation Chairs held on 1 August, the Minister announced that a one- off grant of $150,000 per Joint Organisation would be made for the current Financial Year. The funding is for project delivery aligned to the Strategic Priorities.
There are no guidelines yet, however the OLG has advised that they would be released in the week commencing 5 August. The Minister’s Announcement (Attachment Two), talks about a single project, however the OLG advised it could be for more than one project. In addition the OLG’s focus appears to be on “capacity building” for JOs, which is not mentioned in the Minister’s release.
It is somewhat disappointing that despite repeated requests, over the last 12 months, from all the JOs for the Government to take a co-design approach when formulating grants and programs that once again, the JOs have not been consulted about the design of this funding.
Recommendation: Following the release of the Funding Guidelines, that the JO Working Party meet to determine the project or projects that the Riverina JO will submit for funding.
7.2 JO Strategic Plan and Statement of Regional Priorities. We are still working on finalising the Strategic Plan; however our Regional Priorities document has been uploaded to the JO website.
SCCF Funding has been released, there is an opportunity for JOs to apply for the funding however because it is allocated on an LGA by LGA basis this will mean that we have to lodge 7 applications. I have discussed this with James Bolton to see if he could find a way around the problem and he says that there isn’t one. He has however, undertaken to try and get applications that are across multiple LGAs considered as a single project.
We have a number of activities in our Regional Priorities that relate to youth, which is a priority for this round of SCCF funding. I would like to propose a project that I am tentatively calling the Leadership, Engagement and Employment Program (LEEP). It would deliver on our “Grow your Own” workforce activities in the Workforce Development Priority and the developing leadership.in Leadership and Collaboration. One of the outcomes would be a regional person to work with the Members on the delivery of all the projects. The projects that would come under the LEEP umbrella are: - Working with Schools – targeting high school students and including the Build a Bridge, Work Inspirations days, work experience and School Based Traineeships. - Promotion of cadetships and traineeship - Professional Placement Program – targeting CSU students who would undertake 4 weeks of work experience in their occupation in a council. - Careers in Local Government activities – expos etc - Take Charge Youth Forum and Take Charge Youth Workshop - Take Chart and Volunteer – there is a strong nexus between volunteering and work.
We would be proposing an enhancement/expansion of the existing programs and the development of new ones. The project would run over 3 years, we would be asking for about $60,000 from each LGA.
3 This is a project that should be developed in consultation with the Operations Working Party, if the Board wants to proceed. Recommendation: That the Riverina JO explore the opportunity to submit for Strengthening Country Communities Funding and the CEO work with the Operations Working Party to develop a project for funding.
7.3 JO Audit The audit process for the JO has commenced, with Crowe Howarth sending through lead-up documentation that requires completion. Courtney Armstrong at Coolamon is assisting with the process. It is somewhat disappointing to find that the auditors have not tailored the audit to reflect the JO’s operations but instead are applying the same audit as it would to a council.
At the most recent JO Chairs’ meeting, all the Joint Organisations complained about the cost of the audits. For example Canberra Region JO’s audit is several thousand dollars more than ours and they have only 300 transactions in the year with most of those being payroll. It appears that none of the JOs were asked to provide an estimate of their level of transactions prior to the quotes being sought by the Auditor General. It is very unclear what was used as the benchmark for determining the level of work required and consequently the costs involved.
As a result of the audit being the same as council audit, we have been asked in the documentation to provide copies of the following policies: - Related Parties Transactions Policy - Disaster Recovery Plan; and - IT Security Policy
Attachment Three is the Timetable for the Audit.
Recommendation: That the Board write to the Auditor General: 1. for advice on the methodology used to determine the level of work required for the audit; and 2. to express disappointment that the audit does not reflect the low level of complexity in relation to the JO’s operations.
7.4 JO Working Party Meetings Both Working Parties met on 10 July. The Terms of Reference were reviewed for each Working Party and the Members agreed that they should be put to the Board for adoption (Attachments Four and Five).
Operations Working Party The Operations Working Party discussed the Audit Office Proposal and Engagement Plan and noted that the requirements were the same as a council’s and that the JO Chair will need to sign off on the draft Financial Statement at the August Board meeting. They also noted that the fee for the work was quite high.
The Working Party also discussed the issue of integration with the REROC Technical Groups. It was suggested that REROC could invite the JO to be part of the Technical Groups and that the JO could have a delegate on each one. REROC has the following Technical Groups:
4 • Planning Technical Group • Water and Wastewater Technical Group • Youth and Community Network • Workforce Development (Convenor: Steve Pinnuck) • Infrastructure/Engineers (Convenor: Tony Donoghue) • Energy Management Group • Waste Forum (Chair: Tony Donoghue)
Governance Working Party The Governance Working Party reviewed the GIPA Act documentation, suggested some changes and recommended that it be tabled for adoption at the August Board meeting (Attachment Six). The Working Party raised some issues around the application of discounts, this was followed up with the Commission and the advice is included in the Compliance and Governance Report (Attachment Seven).
The Members discussed the need for a Register of Government Contracts which needs to be placed on the JO website.
The Working Party reviewed the Communications and Engagement Plan and agreed with the changes that were made to incorporate Riverina Water and Goldenfields’ footprints in the Plan. The regional map was removed from the Plan (Attachment Eight). The Board adopted the Plan at the June Board meeting subject to the changes being made.
The Governance Working Party agreed that the most effective way of addressing the integration of REROC Technical Groups with the JO would be for a JO representative to sit on each of the Groups. The JO representative to bring back any issues that required lobbying or advocacy activities for the Board’s consideration. A letter inviting the JO’s participation has been issued by REROC. The Working Party recommended that JO Board meetings be moved to late in the month to better accommodate reporting from the Technical Groups, which usually meet in the second and third weeks of the month.
Looking at council meeting practice and considering previous discussions in relation to this issue the best day appears to be the fourth Thursday in the month, as this does not clash with any council meeting days. This would mean the JO meetings for the next 12 months would be held as follows: - 24 October - 12 December (second Thursday) - 28 February 2020 - 23 April - 25 June - 27 August
Recommendation That the Board: 1. Adopt the GIPA Information Guide and supporting documentation 2. Note the completion of the Engagement and Communications Plan 3. Appoint representatives to REROC Technical Groups 4. Adopt the new schedule of Board meetings for the next 12 months 5. Amend the JO website to include a Register of Contracts section
5 7.5 JO Core Activities – Advocacy and Lobbying 1. Section 7.12 Contributions for State Significant Developments – Cr Firman, Steve Pinnuck and myself met with Minister Stokes on 17 June to discuss this issue. He seemed very interested in the issue and engaged with finding a solution. We followed up on the meeting with a letter reiterating the discussion and key points (Attachment Nine). We have had no response.
One of the major issues that arose was the quantum of the contribution that resulted from the application of a flat 1% contribution. The Minister appeared keen to explore a scaled approach to the contributions and this is something that we re-visited in our follow-up letter. It is an also approach which is common in the current planning regime and may allay some concerns regarding the implementation of the 7.12 contribution.
We consulted with the REROC Planners’ Group about how they would set a scaled regime in order to provide some guidance in relation to this issue. They did not land on an agreed position; scaling could be applied at a number of levels, for example:
Development Contribution Percentage
Development Value Example 1% 0.75% 0.60% 0.55% Development Up to $100,000,000 $75,000,000 $750,000 $562,500 $450,000 $412,500 $100,0000,001 to $200,000,000 $150,000,000 $1,500,000 $1,125,000 $900,000 $825,000 $200,000,001 to $250,000,000 $225,000,000 $2,250,000 $1,687,500 $1,350,000 $1,237,500 $250,000,001 to $300,000,000 $275,000,000 $2,750,000 $2,062,500 $1,650,000 $1,512,500 Over $300,000,000 $350,000,000 $3,500,000 $2,625,000 $2,100,000 $1,925,000
Recommendation That the Board support the adoption of a scaled approach to the application of s7.12 Contributions to all State Significant Developments and write to the Minister confirming that it would like to work with the Minister, his advisers and Department staff to find an agreed position.
2. Emergency Services Levy – we have written to the Premier about the increased cost of the Levy as well as its timing (Attachment Ten), copies were sent to all the relevant ministers and to our local members. We have also forwarded a copy of the letter to Cr Linda Scott, President of LGNSW.
Recommendation That the Board adopt the Emergency Services Levy response.
3. BCR on Infrastructure– this issue was not raised at the last JO Chairs’ meeting. We have received advice that the BCR will no longer be applied to regional infrastructure projects.
4. Mining Legislation– the Board agreed that a background paper be prepared on this issue for consideration at the August Board meeting, the paper has not yet been completed.
5. Mandatory Webcasting – we have written to the Minister for Local Government requesting that webcasting be made voluntary. Copies of the letter has also been sent to local members (Attachment Eleven).
6
6. Response to IPART’s Draft Report on Election Costs - a response was prepared and circulated for comment to the Member Councils. The response (Attachment Twelve) was lodged with IPART on 24 July.
Recommendation That the Board the formally adopt the position stated in the IPART Response in relation to Local Government Election Costs.
7. IPART Reports on Rate and Compliance and Reporting – there are three more IPART reports that require responses: a. Local Government Rating System – due 13 September b. Reporting and Compliance Burdens – due 25 October c. Compliance and Enforcement – due 15 November
Recommendation: That the CEO work with the Governance Working Party to prepare responses to the IPART reports.
8. Up to 3% Increase in the Rate Peg without a Special Rate Variation – it was resolved that the JO would lobby for this position at the last Board meeting. We have not progressed this.
8. Meeting with the Minister – we are planning to arrange a meeting with the Minister for Local Government to talk about the ESL, Mandatory Webcasting, the Election Costs and the rate peg issue.
9. Meeting with President of LGNSW, Cr Linda Scott – Cr Firman and I met with Cr Scott on the 1 August to discuss a number of issues including funding for JOs. LGNSW has decided to hold a Forum for JOs on October 1 in Sydney (Attachment Thirteen). There is no agenda finalised for the event, however there is an expectation that JOs will be contacted about its content.
10. Doctor Crisis in the Murrumbidgee Health District – at a meeting held in Gundagai this issue was discussed and a paper put forward by Dr Paul Mara with an initiative for addressing the problem. (Attachment Fourteen).
Recommendation: The Board support the initiatives outlined in Dr Mara’s paper to address the problem with the recruitment and retention of General Practitioners in the Murrumbidgee Health District
7.6 JO Core Activities – Intergovernmental Co-operation The following activities have occurred in this Core Activity: - Meetings with Murrumbidgee Primary Health District – I continue to attend the Empowering Communities Steering Committee meetings which are dealing with drought issues in the Riverina-Murray. We now have diaries and calendars that were produced as a consequence of the work of the Steering Committee. We have these for distribution at the meeting; the JO is listed as a sponsor. Councils across the region as well as agricultural businesses are distributing the diaries and calendars.
- Meeting with Rebecca Langham from National Indigenous Australians Agency (NIAA) - we discussed workforce development issues in the main and generally what the JOs were.
7
- Meetings with James Bolton – I continue to meet regularly with James to discuss the JO’s activities and opportunities for the JO, the RLE and state agencies to work together. James is working on a new structure for the RLE which will incorporate sub-committees, most of which reflect priority areas in our JO Strategic Plan. We will be looking at ways to develop projects together.
7.7 Governance and Compliance Activities The JO continues to work on the compliance and governance documentation. We have attached a Report that provides an overview on the progress to date and the items that remain outstanding (Attachment Seven).
Recommendation: 1. The Board receive and note the Report 2. The Board receive the CEO’s Report
8. JO Chairs’ Meeting A Joint Chairs’ meeting was held on 1 August at Parliament House. The main issues discussed were as follows: a) The cost of the JO audits – there was concern from all the JOs about the cost of the audit and whether it was in keeping with the level of transactions and the complexity of the organisations.
b) JO Chairs were provided with an overview of the new Machinery of Government changes by Tim Hurst and Steve Orr.
c) The Terms of Reference for the Chairs meetings was finalised with the exception of the issue of whether there should be a single chair, or the position should continue to be rotated. There was not a single view on this issue, with some stating that a continuity of chair would assist in following issues through while others stated that the revolving chair ensured that the impression that there was a single leader for the JOs was not created. The issue was held over for further discussion, following direction to be provided by the individual JO Boards to their Chairs.
d) An overview of the new Youth portfolio was provided by Hon Bronnie Taylor’s Chief of Staff Daniel Newlan.
e) The Hon Gareth Ward, Minister for Families, Communities and Disability Services spoke about the major directions for his portfolio and the ways in which he was working with other departments particularly in the area of homelessness. The JOs encouraged him to also work with local government on the issues that covered his portfolio.
f) Minister for Local Government, Hon Shelley Hancock MP, addressed the Chairs and Eos, advising that there would be a one-off grant of $150,000 for the JOs to undertake a project. We took the opportunity to raise the problem of the SCCF funding having to lodge multiple applications for SCCF and the fact that the Riverina JO had to submit 7 application. She was surprised by this and undertook to look at it. We reiterated previous requests that the
8 Government ensure that any grant funding that was being made available was accessible by JOs and that JOs not be placed in competition with their own Members for funding.
g) Frequency of Meetings – the Chairs discussed the frequency of meetings, there is some concern about how often they are held. It was agreed that they would continue to be aligned with the Country Mayors’ meetings.
Recommendation 1. The Board provides direction to the Chair in relation to its preferred option for chairmanship of the joint JO Chairs’ meetings 2. That the Board receive the Report.
9. Financial Report
The Draft Financial Statement for the audit have been prepared (Attachment Fifteen) and require sign-off prior to going to the Auditor.
The Financial Report is attached (Attachment Sixteen) for the Board’s consideration.
Recommendation: 1. The Chair sign the Draft Financial Statement and that it be provided, together with the working papers to the JO’s auditor. 2. That the Board receive the Financial Report
10. Urgent Business without Notice This item allows Board Members to raise any urgent issues for consideration, discussion and where appropriate action.
11. Resolution to Move out of Committee of the Whole The JO Board may conduct its business as a Committee of the Whole. The JO Board is required to move a motion to that effect at the commencement of the meeting and must move a resolution to come out of the Committee of the Whole.
Recommendation That the Board move a motion to move out of Committee of the Whole.
12. Next Board Meeting The Board of the Riverina JO will next meet on Thursday, 24 October, 2019 at 9.00a.m.
9 Riverina JO Correspondence List 6 June 2019 – 5 August 2019
INCOMING
Date Content Action Received
15 April 2019 Justin Clancy MP, Member for Albury – thanking Noted the Riverina Joint Organisation for extending congratulations on Justin’s election as the Member for Albury.
1 July 2019 Hon Melinda Pavey MP, Minister for Water, Noted Property and Housing - thanking the Riverina Joint Organisation for extending congratulations on Melinda’s election as the Minister for Water, Property and Housing.
1 July 2019 Hon Karen Andrews MP, Minister for Industry, Noted Science and Technology - thanking the Riverina Joint Organisation for extending congratulations on Karen’s re-election as the Minister for Industry, Science and Technology.
12 July 2019 Hon Christian Porter MP, Attorney-General, Noted Minister for Industrial Relations Leader of the House - thanking the Riverina Joint Organisation for extending congratulations on Christian’s appointment as Attorney-General and as the Minister for Industrial Relations Leader of the House.
12 July 2019 Hon Angus Taylor MP, Minister for Energy and Noted Emissions Reduction - thanking the Riverina Joint Organisation for extending congratulations on Angus’ appointment as the Minister for Energy and Emissions Reduction.
15 July 2019 Senator the Hon Richard Colbeck, Minister for Noted Aged Care and Senior Australians and Minister for Youth and Sport - thanking the Riverina Joint Organisation for extending congratulations on Richard’s appointment as the Minister for Aged Care and Senior Australians and Minister for Youth and Sport.
10 22 July 2019 Hon Alex Hawke MP, Minister for International Noted Development and the Pacific - thanking the Riverina Joint Organisation for extending congratulations on Alex’s appointment as the Minister for International Development and the Pacific.
22 July 2019 Ms Steph Cooke MP, Member for Cootamundra – Noted thanking the Riverina Joint Organisation for keeping Steph informed about the correspondence regarding the benefits to our Member Councils through the delivery of the Stronger Country Communities funding and the impact of the Emergency Services Levy.
25 July 2019 Senator the Hon Simon Birmingham, Minister for Noted Trade, Tourism and Investment - thanking the Riverina Joint Organisation for extending congratulations on Simon’s appointment as the Minister for Trade, Tourism and Investment.
29 July 2019 Senator the Hon Bridget McKenzie, Minister for Noted Agriculture - thanking the Riverina Joint Organisation for extending congratulations on Bridget’s appointment as the Minister for Agriculture.
29 July 2019 Hon David Littleproud MP, Minister for Water Noted Resources, Drought, Rural Finance, Natural Disaster and Emergency Management - thanking the Riverina Joint Organisation for extending congratulations on David’s appointment as the Minister for Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management.
1 August 2019 Hon Dominic Perrottet MP, Treasurer - thanking Noted the Riverina Joint Organisation for extending congratulations on Dominic’s re-appointment as Treasurer.
5 August 2019 Julie Briggs, CEO, REROC – Invitation for For Action representatives of the Riverina Joint Organisation to join REROC’s Technical Groups.
11 5 August 2019 Ms Steph Cooke MP, Member for Cootamundra - Noted thanking the Riverina Joint Organisation for keeping Steph informed about the correspondence sent to the Minister for Local Government, Hon Shelley Hancock MP regarding the concerns our Member Councils have regarding the mandatory webcasting of council meetings.
5 August 2019 Hon John Barilaro MP, Deputy Premier – Attached regarding an update about the $4.2 billion Snowy Hydro Legacy Fund.
6 August 2019 Hon Dan Tehan MP, Minister for Education - Noted thanking the Riverina Joint Organisation for extending congratulations on Dan’s appointment as the Minister for Education.
12 OUTGOING
Date Content Comment Sent
11 June 2019 Hon John Barilaro, Deputy Premier – Meeting of Noted the JO Chairs – Copy of correspondence to Hon Shelley Hancock MP, Minister for Local Government.
13 June 2019 Senator the Hon Marise Payne, Minister for Noted Women, Minister for Foreign Affairs – extending congratulations on her appointment as Minister for Women, Minister for Foreign Affairs.
13 June 2019 Hon Ken Wyatt AM MP, Minister for Indigenous Noted Australians - extending congratulations on his appointment as Minister for Indigenous Australians.
13 June 2019 Hon David Littleproud MP, Minister for Water Noted Resources, Drought, Rural Finance, Natural Disaster and Emergency Management - extending congratulations on his appointment as Minister for Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management.
13 June 2019 Hon Mark Coulton MP, Minister for Regional Noted Services, Decentralisation and Local Government - extending congratulations on his appointment as Minister for Regional Services, Decentralisation and Local Government.
13 June 2019 Hon Josh Frydenberg MP, Treasurer - extending Noted congratulations on his appointment as Treasurer.
13 June 2019 Hon Alan Tudge MP, Minister for Population, Noted Cities and Urban Infrastructure - extending congratulations on his appointment as Minister for Population, Cities and Urban Infrastructure.
13 June 2019 Hon Michael Sukkar MP, Minister for Housing Noted and Assistant Treasurer - extending congratulations on your appointment as Minister for Housing and Assistant Treasurer.
13 June 2019 Senator the Hon Mathias Cormann, Minister for Noted Finance - extending congratulations on his appointment as Minister for Finance.
13 13 June 2019 Senator the Hon Bridget McKenzie, Minister for Noted Agriculture - extending congratulations on her appointment as Minister for Agriculture.
13 June 2019 Senator the Hon Simon Birmingham, Minister for Noted Trade, Tourism and Investment - extending congratulations on his appointment as Minister for Trade, Tourism and Investment.
13 June 2019 Hon Alex Hawke MP, Minister for International Noted Development and the Pacific - extending congratulations on his appointment as Minister for International Development and the Pacific.
13 June 2019 Hon Christian Porter MP, Attorney – General, Noted Minister for Industrial Relations - extending congratulations on his appointment as Attorney – General, Minister for Industrial Relations.
13 June 2019 Hon Greg Hunt MP, Minister for Health - extending Noted congratulations on his appointment as Minister for Health.
13 June 2019 Senator the Hon Richard Colbeck, Minister for Noted Aged Care and Senior Australians and Minister for Youth and Sport - extending congratulations on his appointment as Minister for Aged Care and Senior Australians and Minister for Youth and Sport.
13 June 2019 Hon Peter Dutton MP, Minister for Home Affairs - Noted extending congratulations on his appointment as Minister for Home Affairs.
13 June 2019 Hon David Coleman MP, Minister for Immigration, Noted Citizenship, Migrant Services and Multicultural Affairs - extending congratulations on his appointment as Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs.
14 13 June 2019 Hon Paul Fletcher MP, Minister for Noted Communications, Cyber Safety and the Arts - extending congratulations on his appointment as Minister for Communications, Cyber Safety and the Arts.
13 June 2019 Hon Dan Tehan MP, Minister for Education - Noted extending congratulations on his appointment as Minister for Education.
13 June 2019 Senator the Hon Michaelia Cash, Minister for Noted Employment, Skills, Small and Family Business - extending congratulations on her appointment as Minister for Employment, Skills, Small and Family Business.
13 June 2019 Hon Karen Andrews MP, Minister for Industry, Noted Science and Technology - extending congratulations on her appointment as Minister for Industry, Science and Technology.
13 June 2019 Senator the Hon Mathew Canavan, Minister for Noted Resources and Northern Australia - extending congratulations on his appointment as Minister for Resources and Northern Australia.
13 June 2019 Hon Angus Taylor MP, Minister for Energy and Noted Emissions Reduction - extending congratulations on his appointment as Minister for Energy and Emissions Reduction.
13 June 2019 Senator the Hon Linda Reynolds CSC, Minister Noted for Defence – extending congratulations on her appointment as Minister for Defence.
13 June 2019 Hon Darren Chester MP, Minister for Veterans Noted and Defence Personnel - extending congratulations on his appointment as Minister for Veterans and Defence Personnel.
13 June 2019 Hon Melissa Price MP, Minister for Defence Noted Industry - extending congratulations on her appointment as Minister for Defence Industry.
15 13 June 2019 Senator the Hon Anne Ruston, Minister for Noted Families and Social Services - extending congratulations on her appointment as Minister for Families and Social Services.
13 June 2019 Hon Stuart Robert MP, Minister for the National Noted Disability Insurance Scheme and Minister for Government Services - extending congratulations on her appointment as Minister for the National Disability Insurance Scheme and Minister for Government Services.
25 June 2019 Hon Gladys Berejiklian, Premier – regarding the Noted Emergency Services Levy’s (ESL) impact on Local Government Finances.
CC: Hon Mick Veitch MLC Hon Peter Primrose MLC, Shadow Minister for Local Government Hon Wes Fang MLC Hon John Barilaro MP, Deputy Premier Ms Steph Cooke MP, Member for Cootamundra Mr Justin Clancy MP, Member for Albury Dr Joe McGirr MP, Member for Wagga Wagga
27 June 2019 Hon John Barilaro MP, Deputy Premier – thanking Attached and acknowledging the Government’s initiative in introducing the much needed Stronger Country Communities Funding.
CC: Ms Steph Cooke MP, Member for Cootamundra Mr Justin Clancy MP, Member for Albury Dr Joe McGirr MP, Member for Wagga Wagga
28 June 2019 Hon Rob Stokes MP, Minister for Planning and Noted Public Spaces – regarding the meeting on 17 June to discuss the application of State Significant Development Consents Issued not requiring payment of s7.12 Contributions.
16 2 July 2019 Minister Shelley Hancock MP, Minister for Local Noted Government – regarding the introduction of Mandatory Webcasting of Councils Meetings and the Member Councils request to review.
CC: Hon John Barilaro, Deputy Premier Ms Steph Cooke MP, Parliamentary Secretary to the Deputy Premier, Member for Cootamundra Mr Justin Clancy MP, Member for Albury Dr Joe McGirr MP, Member for Wagga Wagga Hon Wes Fang MLC Hon Peter Primrose, Shadow minister
17 18 19 20 21 22 23 24 25 26 APPENDIX TWO
Julie Briggs
From: NSW Gov No Reply Sent: Thursday, 1 August 2019 5:06 PM To: [email protected] Subject: Strengthening Joint Organisations
Dear Ms Briggs
I am pleased to confirm that the NSW Government is committed to ensuring that JOs are a genuine partner in delivering the State Government’s regional development and service delivery priorities. This commitment is reflected in the $4.3 million the government has already committed in establishment funding to support JOs across the state.
I note that when inviting councils to nominate to join a JO, it was made clear that the $4.3 million pool was a one off allocation, and JOs were expected to secure their ongoing sustainability. However since JOs were formed last year, the Government has been exploring opportunities to partner with JOs in program delivery, encouraging JOs to become a central point of administration for funding, participating in elements of program delivery, and in determining regional priorities. The Government acknowledges that some JOs feel constrained in their capacity to play an expanded role, and others will need a funding boost to fully realise their capability.
I am therefore delighted to advise that the NSW Government is making available a further $1.95 million in additional funding aimed at supporting JOs to develop their capability. This will include $150,000 in funding for each JO for a project, developed by the JO, to address one or more of the JO’s regional priorities.
The project will be the subject of a funding agreement between the JO and the Office of Local Government (OLG), and delivery of the project will be used to develop capabilities to access ongoing financial support from program administration funds for the elements of programs they administer.
Officers from the OLG will shortly be making contact with you to provide further information on how your JO can access the funding. This will include determining the capabilities your JO will be required to develop and projects to be delivered through the one-off $150,000 grant.
I look forward to continuing to work with you to ensure that the state’s network of joint organisations reach their true potential.
Yours sincerely
1 27 Shelley Hancock MP Minister for Local Government
2 28 APPENDIX THREE
ENGAGEMENT TIMETABLE General purpose financial statements The engagement timetable, designed to achieve statutory financial reporting requirements, has been discussed and agreed with Julie Briggs, Executive Officer.
The Engagement Information Request accompanies this AEP with dates agreed with management to deliver the information required for the audit. Whilst we make every effort to identify all information requirements in the Engagement Information Request, we may need to request further information during the audit.
Event Date(s)
• Audit team starts audit planning June 2019 • Audit team emails Engagement Information Request to Julie Briggs, Executive 15 July 2019 Officer. • The Joint Organisation gives financial statements and supporting working papers 12 August 2019 listed in the Engagement Information Request to the audit team for the general purpose financial statements
• Audit team starts audit of financial statements 19 August 2019 • The Joint Organisation approves financial statements for referral to the Audit 3 October 2019 Office and the Chairperson, a Councillor, the Executive Officer and the Responsible Accounting Officer sign the statement • Audit clearance meeting 11 October 2019 • The Joint Organisation signs and gives Management Representation Letter to 25 October 2019 audit team (sample on the Audit Office website: http://www.audit.nsw.gov.au/Publications/Client-Service-Resource)
• The Joint Organisation approves financial statements for lodgement to OLG and 25 October 2019 for public exhibition. • Audit Office issues Engagement Closing Report 25 October 2019 • Audit Office issues Auditor’s Independence Declaration 25 October 2019 • Audit Office issues to the Joint Organisation and to the Chief Executive of OLG, in 25 October 2019 accordance with section 417 of the LG Act the: - Independent Auditor’s Report on the general purpose financial statements - Report on the Conduct of the Audit • Audit Office reports any identified significant issues to the Minister in accordance As identified with section 426 of the LG Act • The Joint Organisation gives the audit team final version of draft Annual Report to 1 November 2019 review for consistency with the financial statements
• Audit Office issues final Management Letter By 30 November 2019 • The Joint Organisation presents audited financial statements and the Independent 5 December 2019 Auditor’s Reports at the Joint Organisation meeting.
29 APPENDIX FOUR
Riverina Joint Organisation Governance Working Party Terms of Reference
The Governance Working Party is a representative body of the Riverina Joint Organisation (RivJO) established as per a resolution passed by the Board at the 6 December 2018 Board meeting.
Role The Working Party’s primary role is to ensure the efficient and effective operation of the JO, through considering governance matters that encompass matters such as development and review of JO policy documentation, the preparation of responses and submissions to inquiries and hearings for consideration by the Board and providing feedback to the Government on the operation of JOs within the legislative environment.
The Working Party is empowered to make recommendations to the Board of the JO or to the Operations Working Party; it cannot make decisions on behalf of the JO Board.
Members of the Working Group do not represent their individual councils but act in their capacity as members of the RivJO Board.
Duties and Responsibilities The responsibilities of the Working Party include, but are not limited to, the following:
• Provide input, prepare and review JO Policy documentation for the Board’s adoption;
• Review legislation, regulations and policies that impact on the operation of the JO or its Member Councils
• Make recommendations to the Board in relation to new legislation and regulations that impacts on the operation of the JO or its Member Councils;
• Have carriage of the conduct of reviews of the JO’s activities;
• Review and ensure that JO legislative obligations for reporting are complied with; and
• Other activities as delegated by the JO Board.
Working Party Composition and Appointment The Working Party will compose of one representative, who is on the RivJO Board, from each Member Council and Associate Member plus the Chairperson and the CEO.
The Working Party will be appointed annually at the October Board meeting.
Casual Vacancies Where a casual vacancy occurs on the Working Party the vacancy can be filled at an ordinary meeting of the RIVJO Board, with the Member Council nominating a person to fill the position.
30 Third Party Participation in Working Party Meetings The Working Party may at its discretion invite third parties to meetings in order to obtain specific expertise or input.
Meetings The Working Party will determine the frequency of meetings but will meet a minimum of 4 times per year.
The Working Party may meet in person or by teleconference or video conference.
31 APPENDIX FIVE
Riverina Joint Organisation Operations Working Party Terms of Reference
The Operations Working Party is a representative body of the Riverina Joint Organisation (RivJO) established as per a resolution passed by the Board at the 6 December 2018 Board meeting.
Role The Working Party’s primary role is to ensure the efficient and effective operation of the JO, through considering operational matters that encompass issues such as staffing, resourcing, revenue and budgets as well as interactions with internal and external stakeholders.
The Working Party is empowered to make recommendations to the Board of the JO or to the Governance Working Party; it cannot make decisions on behalf of the JO Board.
Members of the Working Party do not represent their individual councils but act in their capacity as members of the RivJO Board.
Duties and Responsibilities The responsibilities of the Working Party include, but are not limited to, the following:
• Preparing the Revenue Policy and Budgets for the JO Board’s consideration;
• Making recommendations to the Board with regard to staffing and resourcing of the JO;
• Reviewing and making recommendations to the Board in relation to legislation and policy initiatives at the State and Federal level that may impact on the operations of the JO or its member councils;
• Making recommendations to the Board in relation to the contractual dealings of the JO;
• Determining the manner and frequency with which the JO will interact with its internal and external stakeholders;
• Provide oversight to the operation of the JO’s Secretariat; and
• Dealing with any other matters which the Board may delegate to it.
Working Party Composition and Appointment The Working Party will compose of one representative, who is a member of the RivJO Board, from each Member Council and Associate Member plus the Chairperson and the CEO.
The Working Party will be appointed annually at the October Board meeting.
32
Casual Vacancies Where a casual vacancy occurs on the Working Party the vacancy can be filled at an ordinary meeting of the RIVJO Board, with the Member Council nominating a person to fill the position.
Third Party Participation in Working Party Meetings The Working Party may at its discretion invite third parties to meetings in order to obtain specific expertise or input.
Meetings The Working Party will determine the frequency of meetings but will meet a minimum of 4 times per year.
The Party may meet in peson or by teleconference or video conference.
33 APPENDIX SIX
Information Guide
1. Introduction
The purpose of this document is to outline the Riverina Joint Organisation’s approach to disclosing or releasing information about our structure, functions and policies that are of public interest.
Section 20 of the Government Information (Public Access) Act 2009 (NSW) requires agencies such as Joint Organisations to develop and adopt a publication guide as part of their mandatory open access information. The Act states that the Publication Guide shall;
• describe the structure and functions of the agency; • describe the ways in which the functions affect members of the public; • specify arrangements that exist to enable members of the public to participate in the formulation of the agency’s policies and functions; • identify various kinds of government information held by the agency and what information will be made publicly available.
2. Structure and Functions of the Joint Organisation
The Riverina Joint Organisation was proclaimed in 2018. The Member Councils of the Riverina Joint Organisation are:
• Bland Shire Council • Coolamon Shire Council • Cootamundra-Gundagai Regional Council • Greater Hume Shire Council • Junee Shire Council • Lockhart Shire Council • Temora Shire Council
Each Member Council is entitled to one vote.
There are also three Associate Members of the Riverina JO;
• Goldenfields Water County Council • Riverina Water County Council • Director, Riverina Murray, DPC Regional, NSW Department of Premier and Cabinet • General Managers of the Member Councils
34 Associate members have no voting rights.
The principal functions of the Riverina JO are to:
• Establish regional strategic priorities and develop strategies and plans to deliver those priorities; • Promote regional leadership and be an advocate for our regional strategic priorities; and • Identify and take up opportunities for intergovernmental co-operation on matters relating to the Joint Organisation area.
Governing Board
The Governing Board of the Riverina JO is comprised of voting and non-voting members and an independent Chairperson who is elected from the voting members. The council from which the Chairperson is drawn nominates a replacement delegate to the Board who would usually be the Deputy Mayor.
Voting members are the Mayors (or their alternates when a Mayor is unable to attend the meeting) of the full Member Councils. Each Member is entitled to one vote.
Our Associate Members and General Managers of our Member councils do not have voting rights.
The role of the Board is to direct and control the affairs of the JO. The Board is to consult with the Chief Executive Officer in directing and controlling the affairs of the JO.
Chairperson
The Chairperson is a Mayor who is elected to the office of Chairperson by the voting representatives on the Board who are Mayors. The elected Chairperson cannot represent their Member council and does not have a vote.
The Chairperson is the JO’s spokesperson on strategic matters and will represent the JO at regional forums where possible. The Chairperson is also responsible for the conduct of meetings.
Chief Executive Officer
The Riverina JO employs a Chief Executive Officer who is responsible for the day-to-day management of the JO in accordance with strategic regional priorities, and other plans, programs, strategies and policies of the JO and to implement without delay the lawful decisions of the JO Board.
Advisory Committees and Working Groups
The Riverina JO may establish Advisory Committees and Working Groups as it considers necessary. The Riverina JO has two working groups.
3. The Vision and Values of the Riverina Joint Organisation
35 The JO has adopted a set of visions and values that form the foundation for all activities conducted by the JO.
Our Vision is;
Strong regions, progressive local government, vibrant communities
Our Values are;
Integrity, honesty, respect, accountability, regionally-focused, collaborative
4. Principal Activities of the Riverina Joint Organisation
The JO is governed by a number of Acts and Regulations to which it must be compliant. These include the preparation and reporting on;
• Annual Performance Statement • Financial Reports • Public Interest Disclosures • Statement of Strategic Regional Priorities
5. Impact of Riverina Joint Organisation Functions on the Public
The Riverina JO is a representative body. The functions it undertakes have limited impact on members of the public. Below is a broad outline of how the functions of the Riverina JO may affect the public.
Service This function affects the public in the following instances; • Tendering for contracts • Provision of education and information services
Regulatory and Enforcement The Local Government Act 1993 (NSW) makes provision for the delegation of regulatory and enforcement actions to the JO by Member Councils. The Riverina JO Member Councils have not delegated any regulatory or enforcement functions to the JO.
Ancillary This function may affect some members of the public as the JO has the right of entry onto land and inspect. However, this would only occur in relation to delegation of regulatory or enforcement functions of which the JO has none.
Revenue The Riverina JO’s revenue is derived through the membership fees of the Member Councils, and grants and fees generated through additional services provided by the Member Councils. This function affects the public as membership fees are drawn from Member Council rates revenue.
36 Administrative This function may not affect the public directly, however the impact of this function on the efficient and effective delivery of projects undertaken by the JO may affect the public.
Community Planning and Development This function includes matters such as the facilitation of community and business activity within the JO Member Councils’ communities and advocating for their needs with other levels of government.
6. Public Participation in the Riverina Joint Organisation
There are avenues for members of the public to participate in the policy development and functions of the JO.
The JO Board meets on the first Thursday of every second month at 9.00am in the RJ Hall Room of the Commercial Club in Wagga Wagga, and these meetings are open to the public.
All agendas and meeting minutes of the Board meetings are available on the Riverina JO website at https://riverinajo.nsw.gov.au/meetings
Public exhibitions are another way for members of the public to participate. The Riverina JO invites feedback from the public in regard to proposed policies, plans and projects via the Contact Us form on the JO website https://riverinajo.nsw.gov.au/contact-us or in writing to the Chief Executive Officer.
Information provided to the JO in correspondence from members of the public may be made publicly available in accordance with the GIPA Act.
7. Open Access Information held by the Riverina JO and How to Access it
The Riverina JO holds information in various formats in respect to the functions undertaken by it.
The Government Information (Public Access) Act 2009 (NSW) (‘GIPA Act’) requires that Joint Organisations provide the public with a general right of access to information held by the JO as long as it does not infringe privacy, or other laws, or there aren’t public interest considerations against disclosure.
Mandatory Proactive Release (Open Access)
The following JO information is prescribed as mandatory Open Access information in accordance with the GIPA Act;
37 • The JO’s Agency Information Guide (available on the JO’s website) • Information about the JO contained in any document tabled in Parliament by or on behalf of the JO, other than any document tabled by order of either House of Parliament • The JO’s policy documents (available on the JO’s website) • The JO’s disclosure log of Formal Access Applications • The JO’s register of government contracts • The JO’s record of the open access information (if any) that it does not make publicly available on the basis of an overriding public interest against disclosure • Such other government information as may be prescribed by the GIPA regulations as open access information
Information about the Riverina JO
Schedule 1 of the GIPA Act also stipulates that the following additional documents are to be provided as open access information by the JO:
• Code of Conduct • Procedures for the administration of the Code of Conduct • Code of Meeting Practice • Annual, Audit and Financial Reports (N/A) • Agendas, Minutes and Business papers for all Board Meetings • Board Expenses and Facilities Policy • JO Charter • Revenue Policy • Statement of Strategic Priorities
The following information requires an informal request for access to information:
• Disclosures of Interest return forms of designated persons
Proactive Release
The Riverina JO will proactively release information that is not mandatory under the GIPA Act in order to provide the public with as much information as possible, unless there is overriding public interest against it.
Informal Access Applications
Under the GIPA Act, a Joint Organisation may provide information through a process of informal release.
The JO may impose conditions on the release of such information, for example redacting information that may be considered as having overriding public interest against it.
38 There are no fees involved in an informal request for information, however reasonable photocopying fees may apply.
Informal requests should be made in writing to [email protected] or P O Box 646, Wagga Wagga NSW 2650
Formal Access Applications
A Formal Access application is referred to as a GIPA Application and is required where the information sought is not available by means of any of the channels mentioned above.
Prior to making a formal application, the applicant should check to see if the information that they are seeking is not available on the JO website or could be made available through an informal request.
Formal Access Applications must comply with the following requirements: • be made in writing and sent by post or lodged at the Riverina JO office; • clearly indicate that it is a Formal Access application made under the GIPA Act; • be accompanied by a $30 fee (direct deposit or cheque only); • state the name of the applicant and a postal or email address as the address for the correspondence in connection with the application; • include such information as is reasonably necessary to enable the government information applied for to be identified.
There is a Formal Access to Information form available on the Riverina JO website, and all access to information requests are to be addressed to the Chief Executive Officer at P O Box 646, Wagga Wagga NSW 2650, or emailed to [email protected] or lodged at 81-83 Johnston St, Wagga Wagga.
8. Applicable Charges for Formal Access Applications
Where the Riverina JO receives a formal access request for information and documents under the GIPA Act, the following charges will apply;
• $30 to lodge a formal application requesting the documentation, which is payable at the time of lodgement (payable by direct debit or cheque only) • No additional charge where the request is determined by the Riverina JO to be a minor request that the JO determines will take 60 minutes or less to fulfil • $30 per hour where the request is determined to be a major request that the JO determines will take more than 60 minutes of staff time to fulfil. In the instance of this, it will be discussed with the applicant prior to processing.
Discount in Processing Charges
Some applicants may be entitled to a 50% reduction in processing charges if they can provide supporting evidence on the grounds of the following:
39 Financial Hardship
The applicant must be a holder of a Pensioner Concession card issued by the Commonwealth, a full-time student, or a non-profit organisation (including a person applying for or on behalf of a non-profit organisation).
Special Benefit to the Public
The applicant must provide specific details on why the information being accessed is of special benefit to the public.
9. Further Information about Formal Access Applications
A Formal Access application will be deemed invalid if it does not meet the following criteria; • has been made in writing; • specify that it has been made under the GIPA Act; • state an Australian Postal address; • be accompanied by the $30 fee (payable by direct debit or cheque only); • provide sufficient detail to enable the JO to identify the information requested.
Copyright
Some information requested may be subject to copyright laws. Any access to copyright documents will be granted by way of inspection only, unless written consent of the copyright owner has been given.
Public Interest Test
The Riverina JO must consider the public interest in making a decision for or against disclosure. The public interest test is an assessment of the public interest considerations in favour of, and against disclosure. There is an overriding public interest against disclosure if (and only if) the public interest considerations against disclosure (if any), on balance, outweigh the public interest considerations in favour of disclosure.
Review of Decisions
In the case of a Formal Access application being refused, the JO will provide the applicant with reasons for the refusal in writing.
If the applicant is dissatisfied with the JO’s determination of their application, they may seek to have their decision reviewed either by;
• Internal review – this is a review by a JO officer more senior than the original decision maker. Applicants have 20 working days from receiving notice of a decision to ask for a review, and a $40 fee is payable by the applicant.
40 • External Review by the Information Commissioner – the applicant has 8 weeks from receiving notice of a decision to ask for a review. • External Review by NSW Civil Administration Tribunal – the applicant has 8 weeks from receiving notice of a decision from the JO to ask for a review, or 4 weeks after the completion of a review by the Information Commissioner.
Third Party Consultation
In accordance with section 54 of the GIPA Act, the JO must consult where the information requested concerns;
• Personal information; • Business interests; • Research that has been carried out; or • The affairs of another state or the Commonwealth government
Consultation must take place if the information is such that the person may have reasonable concerns about disclosure and those concerns are relevant to the public interest test.
Disclosure Log
The GIPA Act requires that JO’s maintain a Disclosure Log that lists information about Formal Access applications made if the information released is considered to be of interest to the wider public.
Public Officer
The Local Government Act requires that the JO appoints a Public Officer, who is also the Chief Executive Officer. The Public Officers’ duties may include;
• Dealing with requests from the public concerning the affairs of the JO • Accepting the service of documents on behalf of the JO • Receiving submissions made to the JO • Assisting the public to gain access to public documents
NSW Information and Privacy Commission
The NSW Information and Privacy Commission is responsible for overseeing the application of the PPIP Act, HRIP Act and GIPA Act.
Further information about the right to information can be sourced from the Information and Privacy Commission NSW.
Freecall: 1800 472 679
Email: [email protected]
Website: www.ipc.nsw.gov.au
41 Review and Adoption
This guide may be reviewed at any time or as required in the event of legislative changes. The JO is required to review and adopt a new Agency Information Guide at intervals not more than 12 months.
The 2019 version of this guide was adopted on the August 8 Board Meeting
This guide has also been provided to the Information Commissioner in accordance with section 22 (1) of the Act.
Note: At the time of adopting this guide, anything noted (N/A) was not yet applicable to the Riverina JO.
42
Government Information (Public Access) Act 2009 (NSW)
Formal Access Application
Please complete this form to apply for formal access to government information in NSW under the Government Information (Public Access) Act 2009 (GIPA Act).
Your Details
Title: Mr / Mrs / Ms / Miss Surname: Given names: Date of birth: Postal address: Postcode: Email: Telephone number:
The questions below are optional and the information will only be used for the purposes of providing better service.
Country of birth: Main language spoken: Aboriginal or Torres Strait Yes / No Islander: Do you have special needs for assistance with this application?
Proof of Identity
When seeking access to government information, an applicant must provide proof of identity in the form of a certified copy of any one of the following documents:
☐Australian Driver’s License (with photograph, signature and current address) ☐Current Australian Passport ☐Other – proof of signature and current address details (e.g. a Government issued identity or proof of age card or other relevant identification containing a photograph, date of birth, signature and current address)
43 Personal Information
Are you seeking personal Yes / No Information? Have you applied at any time, to another agency Yes / No for similar information?
Government Information
Please describe the information you would like to access in enough detail to allow us to identify it.
Note: If you do not give enough details about the information you require, the Riverina Joint Organisation may refuse to process your application
Form of Access
How do you wish to access the information?
☐Inspect the document(s) ☐A copy of the document(s) ☐Access in another way (please specify)
Application Fee
An application fee of $30 is payable to the Riverina Joint Organisation for Formal Access to Information requests. Payment can be made visa the following options:
☐Direct Deposit (Please deposit payment directly to the Riverina JO’s bank account)
BSB: 032-769
Account No: 764372
Account Name: Riverina Joint Organisation
44 Reference: Your first initial and surname
☐Cheque (Please make this payable to the Riverina Joint Organisation)
Consultation
The Riverina JO may be required to consult with third parties before deciding on the application. In the event of this occurring, the JO may take longer than expected to process the application. For the purposes of consultation, please indicate if the Riverina JO may disclose the following information about you to third parties:
Your name and/or company name Yes / No Your reason for making this application Yes / No
Disclosure Log
If the information sought is released to you and we consider it may be of interest to other members of the public, details about your application (apart from personal information) may be recorded in the Riverina JO’s ‘disclosure log’. This is published on our website.
Do you object to information released being included in the Disclosure log? Yes / No If you do object, please tell us why?
If you object to this, we must first decide if you are entitled to object and if so, whether the objection outweighs the general public interest in including this information in the disclosure log.
Processing Charges
For access to information that is determined to be a major request, processing charges of $30 per hour will apply, which we will discuss with you prior to processing.
Discount in Processing Charges
Some applicants may be entitled to a 50% reduction in processing charges if they can provide supporting evidence on the grounds:
Of financial hardship and provide evidence of the following:
☐A holder of a Pensioner Concession card issued by the Commonwealth ☐A full-time student
45 ☐A non-profit organisation, including a person applying for or on behalf of a non-profit organisation and/or ☐That the information is of ‘special benefit to the public’ – please provide specific details
Signature
Full Name:
Applicant’s Signature:
Date:
Lodgement
Please lodge this form to either:
Riverina Joint Organisation P O Box 646 Wagga Wagga NSW 2650
or
or
81-83 Johnston Street
Wagga Wagga NSW 2650
General information about the GIPA Act is available by calling the Information and Privacy Commission NSW on 1800 472 679 or at its website: www.ipc.nsw.gov.au
46 APPENDIX SEVEN
COMPLIANCE AND GOVERNANCE REPORT
August 2019
1. Policies and Procedures Documents that have been Completed and Adopted a) Code of Conduct b) Code of Meeting Practice c) Charter d) Procedures for the Administration of the Code of Conduct e) Board Expenses and Facilities f) Revenue policy
2. Policies and Procedures Documents that are Completed and Awaiting Adoption a) GIPA
The Information and Privacy Commission has approved our Agency Information Guide which the JO drafted in response to the letter received from the IPC commissioner.
As part of the IAG requirements, we have also compiled a suite of documents to complement it including a Formal Access to Information application form. We also propose to add a page to the JO website with information about the GIPA Act and how JO information can be accessed.
At the Governance Working Party meeting the definition of ‘Financial Hardship’ for the purposes of the GIPA Act was questioned. We have looked into this further and can confirm that the categories listed on the draft form fall under this definition. We have now amended this on the ‘Formal Access to Information’ application form to align better with the wording in the Act. https://www.ipc.nsw.gov.au/information-access-guideline-2-discounting-charges
Part 2: Overview of discounts
4. An applicant may apply for a 50 per cent reduction in processing charges on the grounds: of financial hardship (section 65). Under clause 9 of the GIPA Regulation, financial hardship includes if the applicant can provide evidence that he or she is: • the holder of a Pensioner Concession card issued by the Commonwealth that is in force; • a full-time student; • a non-profit organisation, including a person applying for or on behalf of a non-profit organisation. and/or that the information applied for is of 'special benefit to the public generally' (section 66).
One of the questions on the PID report asked whether the JO had established an internal reporting policy. As we were unaware that we were required to have one, we checked ’no’. However in the
47 reporting email that we sent to them, we noted that we were in the process of drafting such a policy for adoption by our Board.
They responded back to us with a link to their model internal reporting policy and said that they would be happy to provide feedback once we had drafted one for the JO.
3. Policies and Procedures Documents that remain Outstanding a) Privacy Management Plan b) Related Parties Disclosure Policy c) Internal Reporting Policy d) Disaster Recovery Plan e) IT Security Plan f) Records Management Policy g) Enterprise Risk Management Policy h) WHS Policy i) Fraud Control Policy j) Gathering Information Policy
4. Compliance and Reporting Documents that have been Submitted within the Due Dates:
We are up to date with our compliance and reporting requirements having submitted the following within the dates due: • Proposed loan borrowing return • GST certificate • Public Interest Disclosures Report • The Public Liability and Private Indemnity insurances have been renewed for the 2019/20 financial year. These have once again been provided at no cost to the Riverina JO. Our Workers Compensation Insurance is due for renewal on 31 August, and we also need to submit our six month progress and expenditure report on Establishment Funds to the OLG on the same date.
48 APPENDIX EIGHT
Communication and Engagement Plan
Riverina Joint Organisation
2019-2020
www.riverinajo.nsw.gov.au 49 RIVERINA JOINT ORGANISATION COMMUNICATION AND ENGAGEMENT PLAN
1. INTRODUCTION
Background
The Riverina Joint Organisation (Riverina JO) brings together seven General Purpose Councils and two Water County Councils located in the eastern Riverina of NSW.
The Riverina JO’s Member Councils are: • Bland Shire Council • Coolamon Shire Council • Cootamundra-Gundagai Regional Council • Greater Hume Shire Council • Junee Shire Council • Lockhart Shire Council • Temora Shire Council • Goldenfields Water County Council • Riverina Water County Council
Principal Functions
The principal functions of the Riverina JO are to:
• Establish regional strategic priorities, and develop strategies and plans to deliver those priorities; • Promote regional leadership and be an advocate for our regional strategic priorities; and • Identify and take up opportunities for intergovernmental co-operation on matters relating to the Joint Organisation area.
The Riverina JO actively collaborates with the Riverina Eastern Regional Organisation of Councils (REROC) on operational and service delivery activities for the Member Councils.
Purpose
One of the initial steps required for the Riverina JO to undertake is to create a Communication and Engagement Plan which outlines how we will work towards promoting the projects and activities that we undertake.
It is important that we connect with our Member Councils and through them their communities to provide opportunities for input and feedback into our decision making processes.
50 Key Objectives
In order to best engage with our Riverina JO Member Councils and their communities, our Key Stakeholders and Influencers we will focus on the following key objectives:
• To provide a thoughtfully considered approach to engagement in our projects and activities that is appropriate for diverse communities of all ages and abilities; • Promote awareness of the JO website, social media and other digital platforms; • Actively report on projects and activities undertaken, and decisions made by the JO through various media channels; • Ensure best practice of our limited engagement resources; and • Continually review and research new methods of engagement.
Our Region and Community
The Region serviced by our Member Councils encompasses an area of approximately 33,273 square kilometres.
There are approximately 110, 326 residents living within the Riverina JO area according to the 2016 census.
Our community has a mix of different living arrangements, however the majority of people either live as a couple only, a couple with children or alone and most of the population are an older demographic.
The major industries within our region are: • Agriculture, forestry and fishing • Healthcare and social assistance • Education and training • Retail trade • Manufacturing
Risks and Opportunities (SWOT Analysis)
Strengths
The primary function of the Riverina JO is to make decisions in the best interests of our Member Councils and the communities they represent. We are dedicated to making decisions and implementing projects that benefit our Members and their communities. By having various digital media platforms we are able to engage and communicate our messages effectively to all our stakeholders.
Weaknesses
Our priority is to develop and implement projects that accrue benefits for our Member Councils and their communities. From time to time the JO may have a
51 limited budget to communicate and engage every instance of project updates. In these instances the JO will need to evaluate how to effectively manage expectations.
Opportunities
Due to the Riverina JO being a newly formed organisation, we have many opportunities to create a sound strategy to effectively engage and communicate with our Members, Key Stakeholders and Influencers.
Threats
The responsibility of the JO in making decisions in the best interests of our Member Councils and their communities will sometimes require that decisions are made that not all agree with. However, we will ensure that our decisions are communicated through a consistent and transparent process that provides clarity to Members, Key Stakeholders and Influencers.
Project Resources and Budget
The Riverina JO will make a budget allocation to invest in communication activities.
2. KEY STAKEHOLDERS AND INFLUENCERS
In addition to our Member Councils the Riverina JO has a number of Key Stakeholders and Influencers, they include: • The State and Federal members of Parliament that represent our Region; • State and Federal Government Ministers; • State Government agencies, in particular the Department of Premier and Cabinet and the Department of Planning, Industry and Environment; • Riverina Eastern Regional Organisation of Councils; • The Riverina Leadership Executive; • Federal Government Agencies, particularly in relation to Infrastructure, Transport, Regional Development, Water, Agriculture and Health; • Other Regional Organisations operating in the Riverina JO’s footprint including Riverina RDA, Murray RDA, Destination Riverina Murray, Eastern Riverina Arts and Murray Arts; • Australian Local Government Association (ALGA) and Local Government NSW (LGNSW); • Other NSW Joint Organisations and their member councils; and • The media.
It is important to communicate with our Key Stakeholders and Influencers in order to ensure that they are well-informed and provided with opportunities to engage with the Riverina JO.
52 3. COMMUNICATION AND ENGAGEMENT APPROACH
The Riverina JO has a strong commitment to ensuring that our projects and activities are communicated consistently, with transparency, openness and a sense of accountability.
It is also important for the JO to understand the different points of view within its membership and its stakeholders and to build trustful and respectful relationships.
4. COMMUNICATION AND ENGAGEMENT PROGRAM
Methods of Communication and Engagement
There are many channels that the Riverina JO can use to engage and communicate with our Members and stakeholders.
It is very important that varying channels are used as communication should accommodate different demographics, abilities and ethnicities.
The Riverina JO shares a lot of information relating to its projects and activities on our website, however there are other ways that we could use to reach our audience. The following methods of communication will also be considered depending on suitability;
• Direct Mail • Email correspondence • Media publications • Presentations at meetings, forums and conferences • Media releases and interviews • Advertising • Face-to face • Meetings • Telephone • On-hold messages • Events • Online forums • Surveys • Focus groups • Workshops • Information booths • Engagement portal • Social media • Email marketing • SMS • Digital advertising
53 When we will Communicate and Engage
The Riverina JO will communicate and engage as follows:
• Use online communication and engagement techniques to create awareness and interest around the JO’s projects and activities; • Conduct research programs with our Members, Key Stakeholders and Influencers to gain insight that will inform and improve the JO’s decision- making; • Share any research or engagement insights with the JO Board via presentations at Board meetings or through internal publications; • Raise awareness of the JO’s social and digital media channels through targeted communication campaigns; • Cross-promote the JO’s media channels at JO events and on JO publications; • Communicate the outcomes of any engagement activities to the participants, and publish these summaries on the JO’s website, social media channels and at JO Board meetings; • Encourage the JO community to adopt social and digital channels as an efficient and cost-effective means of communication and engagement; • Actively participate in conferences, training and forums; • Actively collaborate and share knowledge with other local, state and federal agencies where appropriate; and • Identify and work with innovative and best practice industry providers.
5. MONITORING AND COMMUNICATING PROGRESS
Monitoring and reviewing the progress in communications and engagement is important to identifying the achievement of goals as well as areas where improvements can be made.
The Chief Executive Officer of the Riverina JO, who is responsible for the delivery of the Communication and Engagement Plan, will monitor its progress against the Key Objectives stated in the Plan and report outcomes to the Board.
This Communication and Engagement plan will be reviewed every 4 years
54 APPENDIX NINE
28 June 2019
Hon Rob Stokes MP Minister for Planning and Public Spaces NSW Parliament House Macquarie St SYDNEY, NSW, 2000
Dear Minister
State Significant Developments: Development Consents Issued not requiring payment of s7.12 Contributions
I am writing to thank you for meeting with us on 17th June to discuss the application of s7.12 contributions to State Significant Developments (“SSD”) and particularly to solar farms.
We reiterate our Members’ stance that we believe it is inequitable that these developments are singled out by virtue of their SSD status and consequently released from their obligation to pay the s7.12 contribution by the Planning Commission.
As discussed during the meeting our Members recognise that in the case of solar farms it takes some time for the developer to obtain a return on the investment, consequently arrangements with councils for the payment of the contribution to be made over multiple years could be considered as a way of resolving the issue.
We understand that it was perhaps not originally envisaged that large developments like solar farms would be impacted by s7.12 contributions. This may have resulted in the Planning Commission’s reluctance to require the payment of the contribution in their consents. As discussed, if the size of the contribution is the stumbling block to its application perhaps this could be resolved by utilising scaling to determine the quantum of the contribution. We would welcome the opportunity to further explore this approach with you and your Department officers.
Section 7.12 contributions are vitally important to rural and regional councils as they provide a revenue stream that assists in the maintenance and renewal of community infrastructure. While solar farms provide job outcomes during the relatively short
55 construction phase, once operational they require very few workers. In addition, in our Region they are occupying prime agricultural land; therefore our communities are losing the work opportunities that the functioning farms which previously occupied the land generated. It is not just on-farm work that is lost, but also the work generated for transport operators, grain merchants, agricultural supply and machinery businesses as well as general retail and hospitality businesses.
Therefore the current situation results in a “lose-lose” situation for our Members and their communities. They do not receive the s7.12 contribution for the development and the development lowers the quantum of long-term direct economic activity that occurs in the LGA.
We appreciate the time you and your staff took to speak with us about the issue. We are hopeful that a viable solution can be found quickly for this problem, particularly as solar farm developments are continuing apace. As stated above we would welcome the opportunity to work with you and your Department to co- design and implement an acceptable solution.
With my very best wishes.
Yours sincerely
Cr Rick Firman OAM Chairman
56 APPENDIX TEN
25 June 2019
Hon Gladys Berejiklian Premier Parliament House Macquarie St SYDNEY NSW 2000
Dear Premier,
Emergency Services Levy (ESL) – Impact on Local Government Finances
I write on behalf of the Members of the Riverina Joint Organisation to express our extreme disappointment about the level and manner in which the ESL has been imposed on local government for the 2019/20 Financial Year.
Without any suitable forewarning, which would have allowed councils to undertake appropriate financial planning, the ESL that has been levied for the next Financial Year is between 23%-28% higher than the ESL that was paid by councils for this current Financial Year.
The increased Levy will soak up between 42%-63% of the total revenues raised by our Member Councils through the 2019/20 rate peg. Regionally, of the $990,243 in additional income raised through the rate peg, $485,498.00 will be paid out in ESL, leaving our Member Councils with budgets which no longer balance. The table below shows the impact the increased ELS will have on Member Council finances:
$ Value Increase Percentage Rate-pegged Levy as a Total Total in Levy Increase on Revenue increase Percentage of Member Councils Contribution Contribution Contribution in 2018/19 for 2019/20 in Increased Rate 2018/19 2019/20 2019/20 Contribution $ terms Revenue Bland $ 375,955.00 $ 468,474.00 $ 92,519.00 25% $ 185,000.00 50.01% Coolamon $ 188,124.00 $ 233,210.00 $ 45,086.00 24% $ 66,000.00 68.31% Cootamundra- Gundagai $ 410,357.00 $ 505,419.00 $ 95,062.00 23% $ 197,423.00 48.15% Greater Hume $ 412,379.00 $ 510,069.00 $ 97,690.00 24% $ 229,660.00 42.54% Junee $ 194,471.00 $ 240,227.00 $ 45,756.00 24% $ 106,558.00 42.94% Lockhart $ 178,187.00 $ 220,933.00 $ 42,746.00 24% $ 67,000.00 63.80% Temora $ 236,494.00 $ 303,133.00 $ 66,639.00 28% $ 138,602.00 48.08% TOTAL FOR REGION $ 1,995,967.00 $ 2,481,465.00 $ 485,498.00 $ 990,243.00 49.03%
The Government passed legislation in December 2018 aimed at addressing workers’ compensation issues for Emergency Services staff and volunteers. Councils received a Notice from the Office of Local Government (OLG) dated 6 May 2019 advising that there would be additional costs but not stating the quantum of those costs. An OLG Circular dated 8 May 2019 stated the following:
57 2
• The NSW Government has made changes to workers’ compensation to provide better protection for volunteer and career firefighters affected by work-related cancers.
• The reforms reflect existing arrangements in other States and will ensure those who provide vital community services receive adequate medical care and support.
• This will result in an increase in the cost of providing emergency services across the State, which will be shared, as per the usual funding arrangements between insurance providers, the State Government and local councils.
• The local government share will be 11.7% of the cost of the emergency services levy.
The OLG Circular advised that the increase would be included in the annual ESL commencing 1 July 2019. It further stated that councils could choose to pay the ESL “in quarterly instalments which will lessen the impact of the increase...the first quarterly instalment is not due until 30 September 2019 which provides time for councils to review their budgets.” With respect, our Members are appalled by this advice from the OLG.
Local government is required to adhere to a strict regime for delivering council budgets, ensuring that there is sufficient time in the process to allow ratepayers to comment on their council’s revenue policy and budget objectives. The announcement and imposition of the much higher than expected ESL ignores this budget process and places councils in an extremely difficult position. Councils will now be forced to alter their approved budgets along with the service delivery undertakings they have given to their communities in order to meet the increased costs of three State agencies. The OLG’s advice that councils “review their budgets” is at complete odds to their legislative obligations in relation to the adoption of revenue statements and budgets.
The Notice of Assessment issued by the Revenue NSW included correspondence stating that 25% of $160 million in increased ESL charges was attributable to the funding of “new vehicles and equipment for Fire and Rescue NSW and the NSW Rural Fire Service as well as on-going operational costs for these agencies and the State Emergency Services.” Our Members suggest that in a year when the ESL increase for councils was sitting at 25% the inclusion of $40million to cover new vehicles and operational costs was not appropriate.
In addition, the Office of Revenue’s advice states that “around 75 per cent” of the increase is due to the “introduction of new provisions for firefighters”. The information states that the provisions cover “workers compensation benefits, including loss of income payments, medical treatment expenses and death benefits for those with terminal conditions”. However, our Members question the $140 million costing for this expenditure and would appreciate advice on whether this is a one-off payment to cover existing obligations or whether the new arrangements will result in a $140 million cost every year, which is primarily met by insurance consumers and local government.
Councils support the involvement of IPART to independently determine the rate peg increase each year. However, IPART’s determination in relation to the rate peg is based on its projected increases to the costs of goods and services that councils purchase. If their projected increases are incorrect then the rate peg does not accurately reflect the local government’s operating costs.
58 3
The lateness of the advice on the increase meant that IPART was not able to include it in its calculations for the 2019/20 rate peg. Consequently, IPART’s information on the 2019/20 rate peg shows that it only allowed for a 2% increase in the ESL. If a 2% increase had actually applied it would have resulted in substantially lower contributions as the table below shows:
Total Total IPART's Contribution Member Councils Contribution Estimated 2019/20 if 2% 2018/19 Increase of 2% had applied
Bland $ 375,955.00 $ 7,519.10 $ 383,474.10 Coolamon $ 188,124.00 $ 3,762.48 $ 191,886.48 Cootamundra- Gundagai $ 410,357.00 $ 8,207.14 $ 418,564.14 Greater Hume $ 412,379.00 $ 8,247.58 $ 420,626.58 Junee $ 194,471.00 $ 3,889.42 $ 198,360.42 Lockhart $ 178,187.00 $ 3,563.74 $ 181,750.74 Temora $ 236,494.00 $ 4,729.88 $ 241,223.88 TOTAL FOR REGION $ 1,995,967.00 $ 2,035,886.34
Our Members request that in the light of: • the late notice about the increase; • the size of the increase; • IPART failing to include the quantum of the increase in its calculation of the 2019/20 rate peg; • its impact on council budgets; • the fact that the information was not included in council budgets that were placed on public exhibition, so ratepayers have no knowledge of the expenditure; and • OLG’s advice that councils review their budgets to accommodate the increase,
that the imposition of 2019-20 ESL payment be deferred for 12 months. Further we request that the ESL payment for 2019/20 be set at a level that reflects IPART’s assumptions for the calculation of the rate peg.
In addition to the request for a deferral we also request that from 2020/21 the ESL be shown on rates’ notices as a separate line item. Displaying the payment as a separate line item would ensure there is transparency in the representation of rates expenditure, showing that the contribution is being made for emergency services.
Our Member Councils have consistently lobbied for greater accountability for emergency services’ budgets, particularly in relation to RFS operations. The inclusion of an additional $40 million for the 2019/20 Financial Year for vehicles and operating costs demonstrates the need for an independent review mechanism to ensure the proposed increases align with genuine operational increases. Councils go through an independent process to determine the appropriate level of rate peg and we firmly believe that the emergency services would benefit from similar oversight of their expenditures.
59 4
We would welcome the opportunity to discuss the above issues with you and thank you for your time in considering our correspondence
Yours sincerely
Cr Rick Firman OAM Chairman
cc Hon John Barilaro, Deputy Premier Hon Shelley Hancock MP, Minister for Local Government Hon David Elliott MP, Minister for Emergency Services Ms Steph Cooke MP, Parliamentary Secretary to the Deputy Premier, Member for Cootamundra Dr Joe McGirr MP, Member for Wagga Wagga Mr Justin Clancy MP, Member for Albury Hon Wes Fang MLC Hon Peter Primrose, Shadow Minister for Local Government Hon Mick Veitch MLC
60 APPENDIX ELEVEN
12 July 2019
Minister Shelley Hancock MP Minister for Local Government Parliament House Macquarie St SYDNEY NSW 2000
Dear Minister
Introduction of Mandatory Webcasting of Council Meetings
I write on behalf of the Riverina Joint Organisation Member Councils to respectfully request that the Government review its decision to introduce the mandatory webcasting of council meetings. We understand that this was introduced to improve access to council meetings however we believe that it will have the reverse outcome for many of the communities our Member Councils represent.
Many of our Member Councils have policies that support rotating their council meetings around their population centres or holding specific meetings in specific communities during the year. These policies aim to better connect councils and councillors with their communities and ensure that councillors are seen to be “out and about” in their LGA and not just in the council chamber.
Holding council meetings in different locations within an LGA demonstrates that councillors are willing to come to the people they represent and listen to the concerns of specific communities. Meetings are often held in community halls and similar facilities that do not have access to an internet bandwidth that is sufficient to meet the demands of webcasting. The mandatory requirement to webcast limits the capacity of councils to reach out to their communities because they would need to have technology that was relocatable in addition to a location that supported its use. We believe that the new arrangements will leave councils with no choice but to abandon holding council meetings in their outlying communities.
When councils hold meetings in different communities in their LGA, it is standard practice for members of those communities to address the council on issues that are of specific concern to them. Our Members appreciate that the argument for webcasting is that it allows all residents the opportunity to see and hear council meetings however it does not provide residents with the opportunity to address the council.
61 Local Government is government at the grassroots; the capacity for residents to address their councillors about specific issues of community concern is an important part of that grassroots’ approach. It provides residents with a practical and direct way to present their issues to their councillors.
We believe that if councillors can only meet in the council chambers where the webcasting equipment is located then this will be to the detriment of residents who currently enjoy direct access to council meetings as a result of council policies that require meetings be held in different locations within an LGA.
Our Member Councils are also very concerned about the cost of installing the required equipment and their ability to connect to internet bandwidth that will be capable of streaming without extensive buffering occurring. In many rural communities bandwidth is substandard; consequently a significant number of residents are unlikely to be able to effectively stream the webcast. There is further concern about the availability of local technology providers with the necessary expertise to maintain the equipment, particularly where maintenance is required at short notice.
In addition, council meetings and council committee meetings are not always held in the same rooms, it would mean that every meeting would have to be held in the one location which would be inefficient, or alternatively equipment would have to be installed in multiple locations which would be expensive.
Our Members believe that the substantial costs involved in delivering webcasting are unlikely to generate sufficient direct benefits to their residents to justify the expenditure. Our Members acknowledge that there is the lower cost option of recording meetings and then uploading them at a later date to the council website. However, we question whether this is will provide any significant additional benefits for ratepayers given that the public already have access to Council business papers and minutes.
My own council, Temora Shire, concerned about the cost/benefit of the proposal conducted a survey of ratepayers on the issue, 95 ratepayers responded. We found that over 55% of respondents said they would never watch the webcast while just over 53% said they thought it was “not at all important” for the Council to webcast. While I appreciate it is only a small sample size, the result clearly shows the limited benefits that are likely to flow from the substantial investment Council is required to make in order to deliver webcasting. We attach a summary of that survey for your information.
Our Members are firmly of the belief that the provision of webcasting of council meetings and committee meetings should be a non-mandatory requirement, allowing councils to make a decision as to whether or not their communities will be better off overall as a result of the introduction of the technology. If the Government is convinced that mandatory webcasting is required then our Members submit that the Government should be willing to meet the full cost of its establishment.
62 We would welcome the opportunity to speak to you about this issue and thank you for taking the time to consider our position on the matter.
Yours sincerely
Cr Rick Firman OAM Chairman
cc Hon John Barilaro, Deputy Premier Ms Steph Cooke MP, Parliamentary Secretary to the Deputy Premier, Member for Cootamundra Dr Joe McGirr MP, Member for Wagga Wagga Mr Justin Clancy MP, Member for Albury Hon Wes Fang MLC Hon Peter Primrose, Shadow Minister for Local Government Hon Mick Veitch MLC
63 APPENDIX TWELVE
RESPONSE TO DRAFT REPORT REVIEW OF LOCAL GOVERNMENT ELECTION COSTS
The Riverina Joint Organisation welcomes the opportunity to provide feedback to IPART on its Draft Report on the Review of Local Government Election Costs. Our Member Councils are Bland, Coolamon, Cootamundra-Gundagai, Greater Hume, Junee, Lockhart and Temora, the JO also has two Associate Members, Goldenfields Water and Riverina Water County Councils.
It is our understanding that the Review was initiated by the Premier because of concerns raised by Local Government in relation to the NSWEC’s escalating costs of delivering local government elections. We note that the Premier provided IPART with an over-arching purpose to be addressed in this Review, stating: “the purpose of IPART’s review is to ensure a robust methodology for determining costs is applied, in order to minimise the financial burden on councils and ratepayers and ensure local government elections are conducted efficiently and cost effectively...”
The methodology which was supposed to minimise the financial burden to councils has in fact resulted, in our Region, in an average increase of 69% on the cost of 2016/17 elections. At a time when IPART is applying a robust methodology to determine the annual increase in local government rates, which has resulted in an cumulative increase of 5.6% since 2016/171, the fact that IPART has recommended a 69% increase for NSWEC services is astounding. Below is the financial impact that the proposed pricing will have on our Member Councils: Difference Difference IPART vs 2016-17 IPART vs NSWEC Proposed MEMBER 2016-17 NSWEC IPART $ % $ % COUNCIL Proposed Recommended
Bland $ 44,000.00 $ 62,000.00 $ 72,000.00 28,000.00 64% 10,000.00 16% Coolamon $ 9,000.00* $ 8,000.00 $ 29,000.00 N/A* N/A* Cootamundra- $ 73,000.00 $ 98,000.00 $ 119,000.00 46,000.00 63% 21,000.00 21% Gundagai Greater Hume $ 58,000.00 $ 77,000.00 $ 97,000.00 39,000.00 67% 20,000.00 26% Junee $ 33,000.00 $ 44,000.00 $ 55,000.00 22,000.00 67% 11,000.00 25% Lockhart $ 18,000.00 $ 24,000.00 $ 34,000.00 16,000.00 89% 10,000.00 42% Temora $ 39,000.00 $ 52,000.00 $ 65,000.00 26,000.00 67% 13,000.00 25% *No election held in 2016-17, so comparison not applied
1 NSW Rate Peg: 2016/17-1.5%, 17/18-1.5%, 18/17-2.3%
64 We struggle to understand IPART’s assertion that this is cost-reflective and efficient pricing. In addition we are very concerned that IPART has chosen to deliver the increased costs in terms of averages, rather than discuss the direct impact on councils. This Report would be enhanced if IPART took the costs it has calculated in Schedule B and then undertook a case study of the impact on a cross-section of councils. Using averaging masks outcomes, creating a false impression of the direct impact of the proposed increases on councils.
We take particular issue with the inclusion of factors in the pricing such as working capital, the opportunity cost of capital (return on assets), depreciation and notional tax. The argument appears to be that these are intended to recreate a private enterprise environment. By using these factors IPART is artificially inflating the cost of NSWEC’s services to the detriment of the local government. The justification for doing this is to create a “level playing field”, which is an economic construct, designed to justify price increases for statutory authorities. If the creation of the market relies on this type of cost manipulation then perhaps there is not a genuine and sustainable market for the services.
IPART’s underlying assumption that “local government election services are likely to be contestable” is flawed. We believe this is a flawed assumption because it fails to address the realities of thin markets which are common to country NSW, where the LGAs cover large geographic areas and dispersed populations. It is disappointing that IPART has used this single market approach when clearly there are multiple markets at play: 1. Newcastle, Sydney and Wollongong; 2. Large Regional Cities, like Bathurst, Coffs Harbour, Wagga Wagga and Albury; 3. Regional towns; and 4. Remote Rural Communities.
While competitors are likely to find the first two markets attractive, it is highly unlikely that regional towns, which are often characterised by multiple population centres and remote rural communities, will be attractive to private providers.
One of our major concerns is that private providers will enter the market for the “low hanging fruit”; the first two markets, where there are high population densities, usually covering small geographic areas which are easier and cheaper to service. If this occurs the result would be that NSWEC’s “indirect contestable services”, which under IPART’s methodology are allocated to client-councils on a per-elector basis, will be left to be paid by those councils least able to afford them.
We do not agree with IPART’s assessment that there is a “workable competitive market”. At this point there appears to be one private company with the capacity to undertake the work, in our opinion this does not constitute a level of choice capable of generating the necessary competitive tension that would result in more efficient service delivery. We believe what will occur is that the other competitor will look at what NSWEC is charging and charge exactly the same - because that is what the market has to pay for the service. The competitive advantage for the private provider will lie in a fixed price quote, whereas NSWEC only offers an estimate, however this is likely to be
65 negated by the requirement that General Managers are responsible for a valid election result where NSWEC is not providing the service.
We note that IPART has elected to apply their impactor-pays funding hierarchy to allocate the costs of NSWEC’s service delivery. It appears that the impetus for adopting this approach is to create a pricing approach that supports competition. Consequently the focus appears to be on increasing the price of the service in order to make the service more attractive to NSWEC competitors. We believe that this approach is inconsistent with the Terms of Reference which required IPART to establish a robust methodology that minimised the financial burden to councils.
The Report appears to focus on the need to get more players into the market with the underlying assumption that this will improve efficiencies and reduce costs. As stated above we believe that competitors will cherry pick the best markets leaving the balance to NSWEC. The application of the impactor-pays principle will result in the indirect costs of the elections being applied across the remaining client-councils. This will increase the price to them as they are forced to bear the burden of NSWEC’s indirect operational costs. The impact on councils is likely to be mostly borne by regional towns and remote rural councils as the probability is that they will remain clients of NSWEC because they will not be an attractive commercial proposition for a private provider.
It is unclear why it is “consistent with the impactor-pays principle” that councils, in aggregate, should pay a larger share of the efficient costs of providing the elections. We would argue that what should be recognised is that local government is a creature of the State. The recent forced amalgamations show that councils only exist with the grace and favour of the State. Indeed it is the State Government that decides how often councils are required to hold elections and the State can, if it chooses, suspend the need for an election by sacking councillors and appointing an administrator.
Consequently we believe that IPART’s methodology should reflect the subservient nature of local government to the State and the State’s responsibility in setting the timing and frequency of local government elections. The State’s responsibilities should be reflected in the pricing and therefore the majority of the costs associated with the delivery of the elections should rest with the State, not directly with local government. A highly functioning democracy underpins the well-being of the State; the State should embrace the role that it has in ensuring the integrity of that democratic process.
We would argue that the provision of elections is a Community Service Obligation that the State should be meeting. We suggest an alternative to the impactor-pays methodology adopted by IPART would be one where a per elector cost for the delivery of the election is determined based on a prescribed number of polling booths and other supporting services. The State would meet the full cost of the service and where a council wanted to provide services above and beyond those that were prescribed then the council would negotiate with NSWEC for those services and pay for them on a per elector basis. The per elector cost would be the same regardless of the location of the council, ensuring that remote rural councils were not disadvantaged by their location and number of
66 voters. In a country where one vote, one value is enshrined, the cost of the vote should be the same regardless of where you vote.
We question the need to open the market to private providers; we do not believe that “contestability” will deliver any significant savings to our Member Councils. Indeed based on the IPART’s current proposals our Members are clearly much worse off. We believe that a decision to support NSWEC’s monopoly service provision, accompanied by a review mechanism similar to the Local Government Cost Index would provide a more cost effective approach. This approach would also negate the need for IPART to include costs like depreciation, the opportunity cost of capital invested in assets, working capital and notional tax in its pricing calculations for NSWEC because they would no longer be relevant.
We note that IPART has identified a number of barriers to entry by private providers. We believe the biggest barrier is the requirement that the General Manager takes responsibility for delivering a valid election result where NSWEC is not used. This level of risk is unacceptable for most General Managers and their councils. IPART has suggested that the way to deal with this issue is to make the General Manager responsible for a valid election result regardless of who conducted the election. This is not an acceptable solution, in adopting this IPART is not only recommending that the NSWEC’s service provision be more expensive it is also suggesting that more risk would be attached to it.
It is disappointing that after a year of review, IPART’s answer to the issue of the cost of local government elections appears to be to charge councils more, so that private providers enter the market that are prepared to charge councils less. In addition the suggestion that NSWEC’s services not only cost more but carry more risk, because NSWEC would no longer be responsible for a valid election result is not acceptable.
We seriously doubt that there will ever be sufficient competition in the market to create competing pricing propositions. We ask that IPART consider revisiting its assumptions on the basis that there will never be a viable, competitive market for local government elections. We ask that IPART produce a robust methodology and approach based on a scenario where NSWEC is effectively a monopoly service provider and which adequately reflects the State’s role in ensuring democratic processes that deliver valid electoral outcomes.
We would welcome the opportunity to discuss the matters we have raised with you further.
Yours sincerely
Cr Rick Firman OAM Chairman 24 June 2019
67 APPENDIX THIRTEEN
Julie Briggs
From: Linda Scott - LGNSW President Sent: Wednesday, 31 July 2019 3:54 PM To: [email protected] Subject: LGNSW's commitment to Joint Organisations
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Attention: JO Chairs and Executive Officers
LGNSW's Commitment to Joint Organisations
Dear Julie,
As you know, LGNSW has a long-standing commitment to work closely with and support Joint Organisations (JOs). Alongside all our partners, we always welcome the opportunity to report on the work we do, and to engage to further tailor our interactions with JOs to achieve mutually beneficial outcomes.
LGNSW has been supportive of JOs and the JO model since its inception. We actively participated in the development of the model, seeking to ensure that it was a model supported by councils, that joining was voluntary and that JOs would be owned and led by councils. We fought against an overly prescriptive model, insisting that the JO membership should determine the functions of the JO beyond the core responsibilities for regional planning and prioritisation, regional advocacy and regional coordination with state agencies.
LGNSW continues to advocate on behalf of JOs, especially for ongoing funding. While LGNSW welcomed the initial seed funding of $3.3 million, we have consistently argued that the funding was inadequate and that there needs to be ongoing funding to ensure the financial viability and effectiveness of JOs.
We recently met with Minister Hancock where we expressed our ongoing support for JOs and sought a commitment to long-term funding for JOs to ensure they can deliver the objectives sought by government. It was a positive meeting with the Minister being receptive to the needs of councils and JOs. LGNSW meets with Minister Hancock and a range of other relevant Ministers on a regular basis, and we will continue to advocate for a commitment on JO funding.
Our 2019-20 State Budget submission to the NSW Government included the provision of ongoing funding to support the operation of JOs as a priority. While it was disappointing that there were no specific initiatives announced in the budget, discussions are ongoing.
1 68 After discussions with JOs, LGNSW is holding a forum on 1-2 October 2019 in Sydney that aims to bring together JOs, ROCs and regional/rural councils. The objective of this forum is to identify common goals among attendees/LGNSW to build a stronger platform for future collaboration.
JOs have told us that Sydney is the preferred location and, as requested, the program will include case studies of individual JOs, including current objectives and governance opportunities, as well as an update on LGNSW activities, services and key projects.
On day two, we will hold an event for all LGNSW members that will focus on the current and future challenges of drought.
LGNSW is calling on nominations from JOs to be included in a working group. Direct input from JOs is essential in planning this forum, so that the needs are accurately captured and catered for.
Please contact Vanessa Bolzan (Manager Member Value) by Friday 9 August if you would like be included in the working group, or if you have any other questions/suggestions in relation to the forum.
I strongly encourage you to attend this forum.
Yours sincerely,
Cr Linda Scott President
Copyright © 2019 , All rights reserved.
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2 69 APPENDIX FOURTEEN
70 71 72 APPENDIX FIFTEEN
Riverina Joint Organisaton SPECIAL PURPOSE FINANCIAL STATEMENTS for the period from 19 October 2018 to 30 June 2019
73 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Contents Page
Statement by Members of the Board and Management D-2
Income Statement and Other Comprehensive Income D-3
Statement of Financial Position D-4
Statement of Chanages in Equity D-5
Statement of Cash Flows D-6
Notes to the Financial Statements D-7
Independent Auditor’s Reports:
– On the Financial Statements
Riverina Joint Organisation is constituted under the Local Government Act 1993 (NSW) and has its principal place of business at:
Riverina Joint Orgnisation 81-83 Johnson Street WAGGA WAGGA NSW 2650
Through the use of the internet, we have ensured that our reporting in timely, complete and available at minimum cost. All media releases, financial statements and other information are publicly available on our website: www.riverinajo.nsw.gov.au
All figures presented in these financial statements are presented in Australian currency.
74 D-1 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
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 statemnet 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 financial statements:
- present fairly Riverina Joint Organisation’s operating result and financial position for the period, and
- accord with Riverina Joint Organisation's accounting and other records.
We are not aware of any matter that would render these statements false or misleading in any way.
Signed in accordance with a resolution of the Board of Riverina Joint Organisation made on ?????
Rick Firman Voting Rep name Chairman Voting Representative Board Member date date
Julie Briggs Executive Officer date
75 D-2 Riverina Joint Organisaton
Income Statement and Other Comprehensive Income for the period from 19 October 2018 to 30 June 2019
Actual Period 19 October 2018 to
Notes 30 June 2019 Income from continuing operations Member council contributions 2a 0 User charges and fees 2b 0 Interest and investment revenue 2c 150 Grants provided for operating purposes 2d 300,000 Grants provided for capital purrposes 2d 0 Other income 2f (0) Total income from continuing operations 300,150
Expenses from continuing operations Employee benefits and on-costs 45,788 Borrowing costs 0 Depreciation 7 0 Administrative expenses 3 49,194 Total expenses from continuing operations 94,982
Net operating result for the period 205,168
Gain on transfer of assets from fromer entities 2e 0
Net result for the period 205,168
Other comprehensive income
Total other comprehensive income 0
Total comprehensive income 205,168
76 D-3 Riverina Joint Organisaton
Statement of Financial Position for the period from 19 October 2018 to 30 June 2019
Actual
Notes 2019 Assets Current assets Cash and cash equivalents 4 219,223 Investments 5 0 Receivables 6 4,751 Prepayments Total current assets 223,974
Non-current assets Investments 5 0 Property, plant and equipment 7 0 Other Total non-current assets 0
Total assets 223,974
LIABILITIES Current liabilities Payables 8 13,125 Income received in advance Borrowings 8 0 Provisions 9 3,236 Total current liabilities 16,361
Non-current liabilities Payables 8 135 Provisions 9 2,310 Total non-current liabilities 2,445
Total liabilities 18,806
Net assets 205,168
EQUITY Accumulated Surplus 8 205,168 Other reserves 8 0 Total equity 205,168
77 D-4 Riverina Joint Organisaton
Statement of Changes in Equity for the period from 19 October 2018 to 30 June 2019 2019 $ Accumulated surplus Other reserves Total Equity Opening balance 0 0 0
Net operating result for the period 205,168 0 205,168 Other comprehensive income 0 0 0 Total comprehensive income 205,168 0 205,168
Closing Balance 205,168 0 205,168
78 D-5 Riverina Joint Organisaton
Statement of Cash Flows for the period from 19 October 2018 to 30 June 2019
Actual Period 19 October 2018
Notes to 30 June 2019 Cash flows from operating activities Receipts Contributions from member councils 0 User charges and fees 0 Investment revenue and interest 150 Grants 300,000 Other (0) Payments: Employees and suppliers (36,877) Borrowing costs 0 Other (44,050) Net cash provided from (or used in) operating activities 219,223
Cash flows from investing activities Receipts Sale of property, plant and equipment 0 Payments: Purchase of investments 0 Purchase of property, plant and equipment Other 0 Net cash provided from (or used in) investing activities 0
Cash flows from financing activities Receipts Proceeds from borrowings 0 Payments: Repayments of borrowings 0 Net cash provided from (or used in) financing activities 0
Net increase/(decrease) in cash and cash equivalents 219,223
Cash transferred from former entities 0
Cash and cash equivalents at beginning of reporting period
Cash and cash equivalents at end of reporting period 2a 219,223
79 D-6 Riverina Joint Organisaton
Notes to the Financial Statements for the period from 19 October 2018 to 30 June 2019
Contents of the notes accompanying the financial statements Page
Note 1 Basis of preparation D-8 Note 2 Income D-10 Note 3 Expenses D-12 Note 4 Cash and cash equivalent assets D-14 Note 5 Investments D-15 Note 6 Receivables D-16 Note 7 Property, plant and equipment D-17 Note 8 Payables and borrowings D-18 Note 9 Provisions D-19 Note 10 Reserves D-20 Note 11 Commitments D-21 Note 12 Contingencies D-22 Note 13 Financial risk management D-23 Note 14 Related party disclosures D-24 Note 15 Events after reporting period D-25
80 D-7 Riverina Joint Organisation was established on 19 October 2018 and the financial statements include the results of the organisation 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 dd/mm/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. Riverina 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 Riverina 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.
81 (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 Riverina Joint Organisation’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 Riverina Joint Organisation and that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions Riverina 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.
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.
82 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 2. Income from Continuing Operations
Actual Period 19 October 2018 to 30 June 2019 (a) Member Council contributions Bland Shire Council 0 Coolamon Shire Council 0 Cootamundra-Gundagai Shire Council 0 Greater Hume Shire Council 0 Junee Shire Council 0 Lockhart Shire Council 0 Temora Shire Council 0
Total member Council contributions 0
(b) User charges and fees Nil
Total user charges and fees 0
(c) Interest & Investment Revenue Interest on financial assets measured at amortised cost 150 Other 0
Total interest and investment revenue (losses) 150
(d) Grants Operating Capital
Actual Period 19 October Actual Period 19 October 2018 to 30 June 2019 2018 to 30 June 2019 Office of Local Government (OLG) joint organisation establishment fund 300,000 0
Total grants 300,000 0
Comprising - Commonwealth funding - State funding 300,000 - Other funding 300,000 0
83 D-10 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 2. Income from Continuing Operations continued
Actual Period 19 October 2018 to 30 June 2019 (e) Gain on transfer of assets from former entitiy Nil 0
Net assets trnsferred/gain on transfer 0
(f) Other income Procurement rebates 0 Administration fees 0 Gain on disposal of property, plant and equipment 0 Other (0)
Total other income (0)
Accounting policy for income
Riverina Joint Organisation recognises revenue when the amount of revenue can be reliably measured, it is probably that future economic benefits will flow to Riverina Joint Organisation and specific criteria have been met for each of the JO's income streams as described below. Riverina 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 is to be made in the form of a cash payment.
The methodology for determining the contribution is: - 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 verified at the fair vale 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 a previous entity on establishment of the JO.
Other revenue is recorded when the payment is due, the value of the payment is notified, or the payment is received, whichever occurs first.
84 D-11 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 3. Expenses from Continuing Operations
Actual Period 19 October 2018 to 30 June 2019 Administrative expenses Contractor and consultancy costs 4,944 Remuneration of auditors 7,500 Travel 0 Representations 5,774 Operating leases 0 - Buildings 10,000 - Computers 0 - Motor vehicles 0 - Other 0 Meetings 7,009 Projects and planning 3,284 Printing/Stationery/Postage 451 IT 2,988 Accounting costs 591 Equipment consumables 453 Phone/Internet 500 Advertising 3,261 Establishment costs 2,027 Training 0 Travel 412 Loss on disposal of property, plant and equipment 0 Other 0
Total administrative expenses 49,194
85 D-12 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 3. Expenses from Continuing Operations continued
Actual Period 19 October 2018 to 30 June 2019 Auditor remunertion Auditors of Riverina Joint Organisation - NSW Auditor General
(i) Audit and other assurance services Audit of financial statements 7,500 Other assurance services Total fees paid or payable to the Auditor-General 7,500
(ii) Other assurance services provided to Riverina Joint Organisation
Other assurance services Total fees paid or payable to other assurance providers 7,500
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 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 cossts 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 signigicant portion of the risks and rewards of ownership are not transferred to Riverina 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 Income Statement and Other Comprehensive
86 D-13 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 4. Cash and cash equivalents 2019 Cash at bank and on hand 219,223 Deposits at call 0
219,223
Restricted cash and cash equivalents External restrictions Internal restrictions Unrestricted 219,223 219,223
Accounting policy for cash and cash equivalents
For Statement of Cash Flows presentation purposes, cash and cash equivalents inclue: 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.
87 D-14 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 5. Investments Actual 2019 Current Non-current
Debt securities at amortised cost 0 0 Term deposits 0 0
0 0
Accounting policy for investments
Term deposits are initially recognised at fair value and then subsequently classified and measured at amortised cost. Interest income, impairment and gains or losses on derecognition are recognised in profit or loss.
88 D-15 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 6 - Receivables 2019 Receivables from member councils 0 Grant receivables 0 Other - GST Receivable 4,751 Total 4,751
Less: provision for impairment: Other
Net receivables 4,751
Accounting policy for receivables
Receivables are recognised intially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Receivables are generally due for settlement within 30 days.
Impairment of financial assets measured at amortised cost is recognised on an expected credit loss (ECL) basis.
Riverina Joint Organisation applies the simplified approach for receivables in providing for expected credit losses prescribed by AASB 9, which permits the use of the lifetime expected loss provision. To measure the expected credit losses, non-rates and annual charges debtors have been grouped based on shared credit risk characteristics and the days past due.
89 D-16 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 7 - Property, Plant & Equipment At proclamation date Movements during the period At 30 June 2019 Gross carrying Acc Dep'n and Net carrying Dep'n and Gross carrying Acc Dep'n and Net carrying amount impairment amount Additions Disposals impairment amount impairment amount Office Equipment 0 0 0 0 0 0 0 0 0 Furniture and fittings 0 0 0 0 0 0 0 0 0 Vehicles 0 0 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 0 0 Totals 0 0 0 0 0 0 0 0 0
Accounting policy for property, plant and equipment
Plant and equipment are measured on the cost basis less depreciation and impairement losses.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benerfits associated with the time will flow to Riverina Joint Organisation and the c ost of the item can be measured reliably. All other repairs and maintenance are charged to the Income Statement and Other Comprehensive Income during the financial period in which they are incurred.
When property, plant and equipment are acquired by Riverina Joint Organisation for nil or nominal consideration, the assets are initially recognised at their fair value at acquistion date.
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual value, over their estimated useful lives as follows:
-
90 D-17 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 8 - Payables and borrowings 2019 Current Non-current Payables Trade payables 10,083 135 Accrued expenses 0 Other payables 3,042
Total payables 13,125 135
Borrowings Bank overdraft
Total borrowings 0 0
Financing arrangements Nil
Accounting policy for payables and borrowings
Riverina Joint Organisation measures all financial liabilities initially at fair value less transaction costs; subsequent financial liabilities are measured at amortised cost using the effective interest rate method.
The financial liaibilities of Riverina Joint Organisation comprise trade and other payables and bank overdraft.
Trade payables represent liabilities for goods and services provided to Riverina Joint Organisation prior to the end of the financial period that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
91 D-18 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 9. Provisions 2019 Current Non-current Employee benefit provisions Annual leave 3,236 Long Service Leave 2,310 Other provisions Other
Total provisions 3,236 2,310
Accounting policy for provisions
Provisions are recognised when: Riverina Joint Organisation as 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 assessment of the time value of money and the risks specific to the liability. The increase in the provision 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-temr employee benefit obligations The liabilitiy 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 whcih the employees render the related service is recognised in the provision of employee benefits, and measured as the present value of expected future payments to be made in respect of services provbided 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.
Oncosts The employee benefit provision include the aggregate on-cost liabilities that will arise whn 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 reporting period.
The obligations are presented as current liabilities in the Statement of Financial Position if Riverina Joint Organisation does not have an unconditional right to defer settlement for at least 12 months after the reporting period date, regardless of when the actual settlement is expected to occur.
92 D-19 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 10 Reserves Riverina JO did not have any reserves during the reporting period.
93 D-20 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 11 Commitments Riverina JO did not during or at the end of the reporting period have any capital or operating lease commitments
94 D-21 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 12 Contingencies Riverina JO was not party to any contingent assets or liabilities during or at the end of the reporting period.
95 D-22 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 13 Financial risk management Risk management Riverina JO's activities expose it to a variety of financial risks, including credit risk, liquidity risk and interest rate risk
Financial risk is carried out by the finance team.
The fair value of receivables and financial liabilities approximates the carrying amount.
96 D-23 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 14 Related party disclosures
Key management personnel Key management personnel (KMP) of Riverina JO are those persons having the authority and responsibility for planning, directing and controlling the activities of Riverin JO, directly or indirectly.
The aggregate amount of KMP compensation in the Income Statement and Other Comprehensive Income is $37,903.
Other transactions with KMP and their related parties
Provisions for doubtful Expense recognised during debtis (impairment of the period relating to bad Amount of the transaction Outstanding balances, receivables) related to the or doubtful debts during the reporting period including commitments at amount of oustanding (impairment expense) due Nature of the transaction ($) period end ($) Terms and conditions balances ($) from related parties ($) 2019 Nil
Other related parties
Provisions for doubtful Expense recognised during debtis (impairment of the period relating to bad Amount of the transaction Outstanding balances, receivables) related to the or doubtful debts Type of related party & during the reporting period including commitments at amount of oustanding (impairment expense) due nature of the transaction ($) period end ($) Terms and conditions balances ($) from related parties ($) 2019 Nil
97 D-24 Riverina Joint Organisaton
General Purpose Financial Statements for the period from 19 October 2018 to 30 June 2019
Note 15 Events occuring after reporting date Riverina JO did not experience any events after balance date that require disclosure in the financial statements.
98 D-25 APPENDIX SIXTEEN
Created: 6/08/2019 2:10 PM Riverina Joint Organisation 81 Johnston Street Profit & Loss [Budget Analysis] WAGGA WAGGA NSW 2650 July 2019 To June 2020 ABN: 66 746 462 096 Email: [email protected]
Budgeted Selected Period
Income Member Contributions $40,000.00 $0.00 Interest $2,500.00 $0.00 Total Income $42,500.00 $0.00 Total Cost Of Sales $0.00 $0.00 Gross Profit $42,500.00 $0.00 Expenses General Expenses Secretarial Services $25,000.00 $1,051.21 PI/PL Insurance $5,000.00 $0.00 Travel $4,000.00 $0.00 Representations $7,000.00 $0.00 Meetings $6,000.00 $0.00 Projects & Planning $25,000.00 $0.00 Printing/Stationery/Postage $2,000.00 $288.55 Rent $9,800.00 $0.00 IT Maintenance/Website $5,000.00 $0.00 Car $8,500.00 $0.00 Equipment consumables $3,000.00 $0.00 Phone/Internet $5,000.00 $0.00 Audit/Accounts $20,000.00 $118.18 Establishment/Evaluation Costs $15,000.00 $0.00 Total General Expenses $140,300.00 $1,457.94 Payroll Expenses Wages & Salaries Expenses $83,200.00 $6,400.00 Workers Compensation Insurance $400.00 $0.00 Superannuation Guarantee $7,904.00 $608.00 Leave Expenses $2,080.00 $0.00 Total Payroll Expenses $93,584.00 $7,008.00 Total Expenses $233,884.00 $8,465.94 Operating Profit -$191,384.00 -$8,465.94
Net Profit/(Loss) -$191,384.00 -$8,465.94
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99 Created: 6/08/2019 2:11 PM Riverina Joint Organisation 81 Johnston Street Balance Sheet [Budget Analysis] WAGGA WAGGA NSW 2650 July 2019 ABN: 66 746 462 096 Email: [email protected]
Budgeted Selected Period
Assets Current Assets Bank Accounts Westpac 032769 764372 $193,150.00 $211,068.84 Total Bank Accounts $193,150.00 $211,068.84 Total Current Assets $193,150.00 $211,068.84 Total Assets $193,150.00 $211,068.84 Liabilities Current Liabilities GST Liabilities GST Paid $0.00 -$4,896.69 Total GST Liabilities $0.00 -$4,896.69 Payroll Liabilities PAYG Withholding Payable $0.00 $4,602.00 Employee Leave Provisions $0.00 $3,235.99 Total Payroll Liabilities $0.00 $7,837.99 Other Current Liabilities Trade Creditors $0.00 $8,792.67 Accrued Workers Compensation $0.00 $188.41 Total Other Current Liabilities $0.00 $8,981.08 Total Current Liabilities $0.00 $11,922.38 Non-Current Liabilities Payroll Liabilities Employee Leave Provisions $0.00 $2,310.00 Other Non-Current Liabilities Accrued Workers Compensation $0.00 $134.50 Total Non-Current Liabilities $0.00 $2,444.50 Total Liabilities $0.00 $14,366.88 Net Assets $193,150.00 $196,701.96 Equity Retained Earnings $194,017.00 $205,167.90 Current Year Surplus/Deficit -$867.00 -$8,465.94 Total Equity $193,150.00 $196,701.96
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