Audit and Risk Management Committee

Meeting Agenda

28 August

2019

 

 

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Attachments

 

Item     Attachment details

1             Report - Audit and Risk Management Committee No. 2019(03) of 19 June 2019

Attachment 1.         Audit and Risk Management Committee Report No. 2019(03) of 19 June 2019.......................................................................................................... 2

Attachment 1.01    Extract Council Ordinary Meeting of 25 June 2019................................ 9

2             Update on QAO Recommendations (Planning and Regulatory Services Department)

Attachment 1.         Infrastructure Charges Procedure..................................................... 10

Attachment 2.         Variation of Development Application Fees Procedure...................... 20

3             Corporate Services Updates to Management Responses for QAO Interim Report

Attachment 1.         Updates to Management Responses for QAO Interim Report............ 25

5             ICT Controls Update

Attachment 1.         ICT Controls Update.......................................................................... 29

8             Internal Audit Branch Activities Report for the period 10 June 2019 to 16 August 2019

Attachment 1.         Internal Audit Register...................................................................... 37   

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Audit and Risk Management Committee

Meeting Agenda

28 August

2019

Item 1 / Attachment 1.

Audit and Risk Management Committee NO. 2019(02)

 

19 June 2019

 

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MEMBERS’ ATTENDANCE:          Graeme Stratford (Chairperson and External Member); Greg Chemello (Interim Administrator), Robert Jones (Interim Management Committee) and Dr Annette Quayle (External Member)

MEMBER’S APOLOGIES:             Stan Gallo (Interim Management Committee)

OTHER ATTENDANCE:                David Farmer (Chief Executive Officer), Andrew Knight (General Manager Corporate Services), Freddy Beck (Chief Audit Executive), Jeff Keech (Finance Manager), Lisa Fraser (Queensland Audit Office), Sumi Kusumo (Queensland Audit Office),  Cathy Murray (Commercial Finance Manager), Tony Welsh (Interim ICT Manager), Brett Davey (Acting General Manager Planning and Regulatory Services), Miranda Reis (Program Manager Business Improvement), Angela Harms (Corporate Governance Manager)

OTHER APOLOGIES:                    Patrick Flemming (Queensland Audit Office)

 

 

PRESENTATION – ICT STRATEGY

The Interim ICT Manager (Tony Welsh) provided a presentation to the committee in relation to the current state of assessment in current ICT systems, arrangements and practices in Ipswich City Council.

 

PRESENTATION – IMPROVED PROCUREMENT CONTROLS AND PROCUREMENT PROJECT PROGRESS

The General Manager Corporate Services (Andrew Knight) provided a verbal update in relation to procurement activities at Ipswich City Council.

 

PRESENTATION – BUSINESS TRANSFORMATION PROJECTS

The Program Manager (Business Improvement) provided an overview of the progress of the Business Transformation Projects.

 

 

1.           Report - Audit and Risk Management Committee No. 2019(01) of 13 February 2019

This is a report concerning the previous report of the Audit and Risk Management Committee No. 2019(01) of 13 February 2019 for confirmation together with an extract of the Governance Committee and the Council Ordinary Meeting where the report was adopted.

Recommendation

That the report be received and the contents noted.

 

2.           2018-2019 Asset Revaluation

This is a report concerning the 2018-2019 Asset Revaluation and its effect on Ipswich City Council’s annual financial statements.

Council’s current revaluation procedure FCS-5 provides that Council will revalue all its non-current assets on a five year rolling basis provided that these assets do not experience significant and volatile change in fair value.

The current revaluation schedule is as follows:

Year

Formal Valuation

Desktop Valuation

Final Report Due Date

2015

(a)  Land

(b),(c),(d),(e)

25-May-15

2016

(b)  Roads, bridges and footpaths

(a),(c),(d),(e)

30-Apr-16

2017

(c)  Building and Other structures

(a),(b),(d),(e)

30-Apr-17

2018

(d)   Flooding and drainage

(a),(b),(c),(e)

30-Apr-18

2019

(e)  Artworks

(a),(b),(c),(d)

30-Apr-19

Shaded area only included for completeness.

Recommendation

That the Audit and Risk Management Committee endorse the following recommendations:

A.           That the report by the Principal Financial Accountant dated 30 April 2019, including attachments 1, 2, 3 and 4 be received and noted.

B.           That the artworks asset class being a formal valuation and the roads, bridges and footpaths asset class indexation be revalued as outlined in the report by the Principal Financial Accountant dated 30 April 2019 and in accordance with Attachments 1 and 3.

C.           That all other asset classes of land, buildings and other structures, and flooding and drainage not be revalued as the cumulative valuation percentage increases/decreases are below 5%, as outlined in the report by the Principal Financial Accountant dated 30 April 2019.

 

3.           Impact of New Accounting Standards

This is a report concerning a request from the Queensland Audit Office (QAO) requiring Ipswich City Council (ICC) and its controlled entities to provide a position paper regarding the impact of recently issued or amended accounting standards.  Council is required to provide the position paper by the 31 May 2019.

Recommendation

That the report of the Principal Financial Accountant regarding the impact of the recently released or amended Accounting Standards on Ipswich City Council dated 23 May 2019 be received and the contents noted.

Rob Jones from the Interim Management Committee queried whether council had a model policy in relation to development of manually prepared accounts. It was requested that the Finance Manager investigate a model policy to determine how significant manual models are controlled and provide an update to a future meeting.

 

4.           Accounting for Reintegration of Ipswich City Properties Pty Ltd

This is a report concerning a requirement of the Queensland Audit Office (QAO) for Ipswich City Council (ICC) to provide a position paper regarding the impact of the reintegration of Ipswich City Properties Pty Ltd (ICP).  Council is required to provide the position paper by the 31 May 2019.

Recommendation

That the report by the Principal Financial Accountant regarding the impact of the reintegration of Ipswich City Properties Pty Ltd with Ipswich City Council dated 30 May 2019 be received and the contents noted.

 

5.           Update on QAO Recommendations (Planning and Regulatory Services Department)

This is a report concerning the Planning and Regulatory Services Department’s progress in complying with the Queensland Audit Office (QAO) recommendations outlined in ‘QAO 2018 Closing Report’ (adopted by Council on 4 December 2018). Specifically, Appendix A - Internal Control Issues (items 1 to 3) relating to developer infrastructure contributions and fee variations.

Recommendation

That the report be received and the contents noted.

 

6.           Waste Task Force Update

This is a report concerning the Department of Environment and Science (‘DES’) representatives meeting with Council on 8 April 2019 to provide an update on operations, findings, and outputs of the Odour Abatement Taskforce (‘OAT’).

Recommendation

That the report be received and the contents noted.

 

7.           Progress of the 2018-2019 Annual Internal Audit Plan

This is a report concerning the status of the 2018-2019 Annual Internal Audit Plan as outlined  within the report.

Recommendation

That the report be received and the contents noted.

Rob Jones from the Interim Management Committee queried whether internal audit would be involved in any of the business transformation projects in relation to risk processes surrounding change. The answer from the Chief Audit Executive was that a number of these project topics were included in the audit plan and that Internal Audit took part in a number of these projects.

 

The confidential papers associated with Item 8 are confidential as they relate to internal audits either being undertaken or that have been completed.

8.           Internal Audit Branch Activities Report for the period 4 February 2019 to 10 June 2019

This is a report concerning the activities of Internal Audit undertaken since 4 February 2019 and the current status of these activities.

Recommendation

That the report be received, the contents noted and the recommendations in Attachments 2 and 3, be considered finalised and archived.

 

The confidential papers associated with Item 9 are confidential as they relate to internal audits being considered.

9.           Annual Iinternal Audit Plan for 2019-2020 that includes the Strategic Iinternal Audit Plan for 2020-2022

This is a report concerning the proposed Annual Audit Plan for 2019-2020 that includes the Strategic Internal Audit Plan for 2020-2022.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the draft Internal Audit Annual Plan for 2019-2020 that includes the draft Strategic Internal Audit Plan for 2020-2022 (Attachment 1) as prepared by the Chief Audit Executive be reviewed and considered by the Audit and Risk Management Committee.

B.           That, following receipt of the views of the Audit Committee, the Plans subject to amendments as considered necessary, be formally approved by the Chief Executive Officer as required under the Internal Audit Charter.

 

The confidential papers associated with Item 10 are confidential as they relate to the result of internal audit matters and proposed recommendations.

10.         Summary of Recent Internal Audit Reports Issued

This is a report concerning recently completed internal audits and the subsequent reports released since the previous report dated 4 February 2018.

Recommendation

That the report be received and the contents noted.

 

The confidential papers associated with Item 11 are confidential as they relate to internal audit matters and proposed recommendations.

11.         Overdue Recommendations as at 10 June 2019.

This is a report concerning the status of each Department's progress in actioning the internal and external audit recommendations due or overdue for implementation.

Recommendation

That the report be received and considered.

 

The confidential papers associated with Item 12 are confidential as they relate to the status of claims currently under investigation by Ipswich City Council.

12.         Risk and Planning Section's Performance in the Management of Corporate Risk and Insurance

This is a report concerning the performance of the Risk and Planning Section (the Section) in relation to the management of corporate risk and insurance for the period 1 January 2019 to 31 March 2019 (the Quarter).

Recommendation

That the report be received and the contents noted.

 

The confidential papers associated with Item 13 are confidential as they relate to the status of complaints currently under investigation by Ipswich City Council.

13.         Integrity and Governance Section's Performance in relation to Legislative Compliance

This is a report concerning the performance of the Integrity and Governance Section (the Section) in relation to managing Council’s legislative compliance in the management of complaints, insurance, risk, Right to Information and Information Privacy functions for the period 1 January 2019 to 31 March 2019 (the Quarter).

Recommendation

That the report be received and the contents noted.

 

The confidential papers associated with Item 14 are confidential as they relate to information on the QAO interim report which is in draft form at this time.

14.         QAO Briefing Paper and draft Interim Management Report

This is a report concerning a briefing paper and draft interim management report submitted by Queensland Audit Office.

Recommendation

That the reports be received and the contents noted.

Rob Jones from the Interim Management Committee stated that it would be useful to include the root cause of any problems identified to ensure that the issue is not repeated in the future.

 

 

 

15.         NEXT MEETING

The next meeting is scheduled for Wednesday, 28 August 2019.

 

 

PROCEDURAL MOTIONS AND FORMAL MATTERS

The meeting commenced at 1.07 pm.

The meeting closed at 4.02 pm.

 

 

 


Audit and Risk Management Committee

Meeting Agenda

28 August

2019

Item 1 / Attachment 1.01

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Audit and Risk Management Committee

Meeting Agenda

28 August

2019

Item 2 / Attachment 1.

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Audit and Risk Management Committee

Meeting Agenda

28 August

2019

Item 2 / Attachment 2.

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Audit and Risk Management Committee

Meeting Agenda

28 August

2019

Item 3 / Attachment 1.

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Audit and Risk Management Committee

Meeting Agenda

28 August

2019

Item 5 / Attachment 1.

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Audit and Risk Management Committee

Meeting Agenda

28 August

2019

Item 8 / Attachment 1.

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