Governance
Committee Meeting
13 November 2024
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ITEM 01
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Audited Financial Statements FY 2023-24
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Strategic
Objective
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Visionary, Leading,
Responsible
Ensure
Council is accountable and financially sustainable through the strategic
management of assets and resources
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File Ref
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355040.2024
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Report By
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Vishwa Nadan
- Chief Financial Officer
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Approved
By
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Farooq
Portelli - Director Corporate Support
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Council
has complied with all legislative requirements with respect to preparation,
audit and lodgement of its financial statements for year ended 30 June 2024.
The
Audit Office NSW has issued an unqualified audit opinion. Their report on
conduct of the audit is also included as part of the financial reports.
The
Audit Office NSW will issue the final management letter which will highlight
control issues that were identified during the audit. This report will be
shared with the Governance Committee when available.
The
Financial Statements were placed on public exhibition to 31st
October 2024. At the time of writing this report, Council did not receive any
submissions. An update on submissions will be provided at the meeting. Copies
of submissions will be referred to the Audit Office NSW and financial
statements will be amended if necessary.
The
report includes appendices which provides key budget variations contributing to
the deficit ‘Net Cost of Services’ result of $10.9m from original
deficit budget of $3.7m for the year ended 30 June 2024.
That the
Governance Committee receives
and notes the report.
Legislative
Requirements
The
Local Government Act 1993 No 30 (NSW) stipulates certain requirements on
the preparation, audit, and lodgement of Council’s financial statements.
In
summary:
1. Section 413 requires that Council must prepare
financial reports for each financial year and must refer these for audit as
soon as practicable after the end of that year.
2. Section 416 requires that Council financial reports
for a year must be prepared and audited within the period of 4 months after the
end of that year (i.e.. 31 October).
3. Section 418 requires Council to give public notice to
include Council meeting date on which the financial statements will be
presented and places where copies of audited reports will be kept available for
public inspection.
4. Section 420 permits any person to make submission to
Council with respect to its audited financial reports.
5. Section 422 mandates the Audit Office NSW to audit
Councils financial statements
Council has complied with all legislative requirements
with respect to preparation, audit and lodgment of its financial statements for
year ended 30 June 2024.
The Audit Office NSW has issued an unqualified audit
opinion. Their report on conduct of the audit is also included as part of the
financial reports.
The Audit Office NSW will issue a final management
letter which will highlight control issues that were identified during the
audit. This report will be shared with the Governance Committee when available.
The Financial Statements were placed on public
exhibition to 31st October 2024. At the time of writing this report,
Council did not receive any submissions. An update on submissions (if any) will
be provided at the meeting. Copies of submissions will be referred to the Audit
Office NSW and financial statements will be amended if necessary.
In accordance with its Charter, Councils Audit, Risk & Improvement Committee (ARIC) which
includes three independent members, is also required to review the financial
statements both before and after audit. Specifically, they sought assurances
tabulated overleaf:
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Council has complied
with accounting standards and external accountability requirements?
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Council’s
accounting policies and disclosures are appropriate?
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There are no high-risk
unresolved external audit matters that will impact on the accuracy of the financial
statements?
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All of the relevant
financial information systems relied on for preparation of Council’s
financial statement (including key internal controls) are adequate,
appropriate and operating effectively?
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Council is satisfied
that all reasonable steps have been taken to ensure that financial statements
are complete, accurate and reflect all material transactions, including any
subsequent events?
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Council is satisfied
that all expenditure from externally restricted funds has been expended for
their specific purposes?
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All material balances
in the financial statements that involves significant and/or complex
accounting estimates or judgements have been identified and supported?
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Appendix 1 provides key
budget variations from deficit ‘Net Cost of Services’ of $3.7m to
deficit $6.9m projected at end of Q3.
Appendix 2 provides key
budget variations from projected ‘Net Cost of Services’ of $6.9m to
actual deficit $10.9m result for the year ended 30 June 2024.
1. Audited
Financial Statements 2023-24 (Under separate cover)
Governance
Committee Meeting
13 November 2024
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ITEM 02
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Review of Council's Financial progress,
forecasts and assumptions
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Strategic
Objective
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Visionary,
Leading, Responsible
Ensure
Council is accountable and financially sustainable through the strategic
management of assets and resources
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File Ref
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355587.2024
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Report By
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Earl
Paradeza - Senior Management Accountant
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Approved
By
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Farooq
Portelli - Director Corporate Support
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In
June 2024 the Council adopted its 2024-25 operating budget with estimated
revenue of $417.4 million and expenditure of $281.2 million. In terms of
the net operating result before grants and contributions provided for capital
purposes, Council budgeted for an operating surplus of $2.6 million.
Based on Q1 Budget Review, Council
resolutions, program initiatives, market trends and actual budget performance
to 30 September 2024, Council is now projecting an operating deficit of $11.6
million.
This
report provides key variations and highlights key risks and opportunities that
may impact on the projected result.
That the
Governance Committee receives
and notes the report.
Budget Performance
In
June 2024 the Council adopted its 2024-25 operating budget with estimated
revenue of $417.4 million and expenditure of $281.2 million. In terms of
the net operating result before grants and contributions provided for capital
purposes, Council budgeted for an operating surplus of $2.6 million.
Based on Q1 Budget Review, Council
resolutions, program initiatives, market trends and actual budget performance
to 30 September 2024, Council’s revised projection is an operating
deficit of $11.6 million. Key variations noted are provided below:
Detailed analysis of both revenue and
expenditure is provided as Attachment 1.
Operating Revenue
Budget performance of key sources of operating revenue
were as follows:
Operating Expenditure
Budget performance of key areas of operating expenses
were as follows:
Risks & Opportunities
The following risks and opportunities have
been identified with the potential to change the projected budget result for FY
2024/25.
i) FAG Operating Grant [Risk Probability:
Low/Moderate] – The NSW Grants Commission fully paid 2023/24
financial assistance grant in advance. Any change to their position for
FY2024/25 is not known at this stage.
ii) Net Loss from Disposal of Assets [Risk
Probability: Highly Likely] – As part of the road renewal process, a
portion of the road surface is scrapped off and then replaced. The replacement
cost is capitalised, however, there is a written down value attached to the
portion removed. The cost of write-off depends on the condition of the road at
time of renewal and depth of surface removed. Budget includes a provision of
$2.5 million, however, the actual cost to June 2025 is not known.
Cash Reserves
At 30 September 2024, Council had $385 million in cash and
investments classified as follows:
1. 2024-25
Q1 Budget Review - Detailed Analysis
Governance
Committee Meeting
13 November 2024
Strategic Priorities Committee Report
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ITEM 03
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Policy Review - Code of Meeting
Practice
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Strategic
Objective
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Visionary,
Leading, Responsible
Demonstrate
a high standard of transparency and accountability through a comprehensive
governance framework
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File Ref
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349597.2024
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Report By
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M'Leigh
Brunetta - Civic & Executive Services Lead
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Approved
By
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Tina Bono -
Director Community & Lifestyle
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At
the 16 October 2024 Council Meeting, Council resolved to complete a review of
the Code of Meeting Practice Policy and report back to Council as a priority.
Council
has conducted an internal review on the Code of Meeting Practice that will be
presented for consideration, with the intent to report back as a priority to
the next Council Meeting on 20 November 2024.
To
achieve this deadline, simultaneously Council will facilitate an external
review of the proposed Policy to ensure compliance is achieved.
The
Model Code of Meeting Practice for Local
Councils in NSW states that Councils must
adopt a code of meeting practice within 12 months of the local government
elections, and before adopting a new code must first exhibit a draft of the
code for at least 28 days and provide members of the community at least 42 days
to provide feedback.
In
addition, it is proposed that the Governance Meeting on the 13 May 2025 be
brought forward one (1) week to align to the 21 May Council Meeting date. This
will ensure adequate briefing and administrative time and align all Council
Meeting dates resolved for 2025.
That the
Governance Committee:
1. Support the proposed changes to the Code of Meeting Practice;
2. Notes that an external review is being conducted simultaneously, and
any further advice or recommendations will be shared with Councillors for
consideration, prior to the 20 November 2024 Council Meeting;
3. Notes that before
Council can adopt a new Code of Meeting Practice the draft must be exhibited
for at least 28 days and provide at least 42 days for community feedback;
4. Bring the Governance Meeting on the 20 May 2025
forward one (1) week to align to the 21 May Council Meeting date.
On the 16 October 2024 Council Meeting,
Council resolved the following.
That Council:
1.
Confirms the Council meeting time to commence at 6:00pm rather than 2:00pm for
each monthly meeting for 2025.
2.
Confirms the Council meeting dates for the 2025 calendar year as follows:
• 5 February 2025;
• 26 February 2025;
• 26 March 2025;
• 23 April 2025;
• ** 21 May 2025;
• 25 June 2025;
• 23 July 2025;
• 27 August 2025;
• 24 September 2025;
• 22 October 2025;
• 19 November 2025;
and
• 10 December 2025.
2.
Confirms the Governance Committee meeting time as 10am and the Briefing
Sessions to be held directly following the Governance Committee meetings, and
meeting dates for the 2025 calendar year as follows:
• 28 January 2025;
• 18 February 2025;
• 18 March 2025;
• 15 April 2025;
• ** 13 May 2025;
3. Note
that the Code of Meeting Practice adopted 26 October 2022 requires
clarification with regards to clauses 3.1 and 18.1.
4. Direct
the Acting CEO that the Code of Meeting Practice is externally reviewed, and a
report comes back to Council as a priority;
5. Fund
the external review from General Funds;
6.
Advertises the Council meeting dates and commencing times of Council meetings
for the 2025 calendar year; and
7.
Promotes and makes the community aware of the changes in the new year via
social media channels.
On being put to the meeting the
Foreshadowed Motion (moved by Clr Karnib) became the motion and was declared
CARRIED.
** Note: At
the 16 October 2024 Council Meeting, Council amended the proposed report
recommendation for the May 2025 to be brought forward to take place on the 21
May 2025. However, Council did not move the May 2025 Governance Meeting forward
to align to this date. It is proposed that the 20 May 2025 Governance Meeting
be moved forward one (1) to ensure adequate briefing notice and calendar
alignment.
Model Code of Meeting Practice
The Model Code of Meeting Practice for
Local Councils in NSW (the Model Meeting Code) is made under section 360 of the
Local Government Act 1993 (the Act) and the Local Government (General)
Regulation 2005 (the Regulation).
This code applies to all meetings of
councils and committees of councils of which all the members are councillors
(committees of council). Council committees whose members include persons other
than councillors may adopt their own rules for meetings unless the council
determines otherwise.
A council’s adopted meeting code
must not contain provisions that are inconsistent with the mandatory
provisions.
Councils must adopt a code of meeting
practice that incorporates the mandatory provisions of the Model Meeting Code
no later than 12 months of the local government elections.
Under section 361 of the Local Government
Act 1993, before adopting a new code of meeting practice, councils must first
exhibit a draft of the code of meeting practice for at least 28 days and
provide members of the community at least 42 days in which to comment on the
draft code.
Council
resolved an external review be funded from General Funds. The review will
ensure alignment to the Model Code of Meeting Practice for Local Councils in
NSW.
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Economic
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There are no economic and financial considerations.
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Environment
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There are no environmental and sustainability
considerations.
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Social
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Raise awareness in the community about the available services and
facilities.
Promote community harmony and address discrimination.
Support access and services for people with a disability.
Deliver high quality services for children and their families.
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Civic
Leadership
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Undertake communication practices with the community and stakeholders
across a range of media.
Foster neighbourhood pride and a sense of responsibility.
Facilitate the development of community leaders.
Encourage the community to engage in Council initiatives and actions.
Provide information about Council’s services, roles and
decision-making processes.
Deliver services that are customer focused.
Operate a well-developed governance system that demonstrates
accountability, transparency and ethical conduct.
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Legislative
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Local Government Act 1993.
Local Government Regulation 2005.
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Risk
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The risk is deemed to be Low.
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Nil
Governance
Committee Meeting
13 November 2024
Strategic Priorities Committee Report
|
ITEM 04
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Grants Donations and Sponsorship
Program
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Strategic
Objective
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Healthy,
Inclusive, Engaging
Promote a
harmonious community that celebrates its diversity
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File Ref
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349887.2024
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Report By
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Javeria Hoda
- Community Development Worker Funding & Support
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Approved
By
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Tina Bono -
Director Community & Lifestyle
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Council is committed to building strong and resilient
communities in the Liverpool Local Government Area (LGA) and maximising social
wellbeing. Council’s
Grants Donations and Community Sponsorship program helps achieve these goals by
providing financial support to local community groups and not for profit
organisations to develop leadership
skills, increase participation in community activities and address identified
social issues with financial
contributions to deliver projects that benefit residents, build, or enhance the
reputation of Liverpool City Council and support delivery of local priorities
as outlined in Council’s Community Strategic Plan.
This
report provides a summary of the Grants Donations and Sponsorship Program and
the Policy and processes in place to evaluate applications that deliver
impactful programs to the broader community in the Liverpool LGA.
That the Governance
Committee notes the Grants Donations
and Community Sponsorship Program, Policy, and the Grant management process.
Background
Council’s grant programs provide a
coordinated and integrated approach to growing Liverpool socially, culturally,
economically, and environmentally. Each year, Council allocates a budget of
$477,000 towards the Grants Donations and Community Sponsorship program.
Council’s Grants program was fully exhausted in 2023-24 financial year
(with the exclusion of the Sustainable Environment Grant).
The following table highlights the budget
breakdown in terms of funds allocated to each Grant program:
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Grant Program
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Budget Allocation per FY
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Sustainable Environment Grant
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$75,000
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Community Grant
(includes several sub-programs)
Kick Starter Grant
Small Grants
International Women’s Day Grant
International Day for
People with Disability Grant
NAIDOC Awards Grant
Harmony Day Grant
Liverpool Young Achiever
Awards
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$152,000
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Community Sponsorship
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$150,000
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Matching Grant
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$100,000
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Total
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$477,000
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The Grants Donations and Community
Sponsorship Policy (the Policy) guides the Grants program, to ensure the use of
public funds through an effective grant management process. The Policy
highlights the eligibility criteria, expected community outcomes and the
overall grant management process. The Policy has been updated several times
over the years to ensure an effective program is in place that caters to the
evolving needs of the community and Council’s strategic direction.
Applications
All applicants must register with
Council’s online grants management system known as Fluxx. Registered
community groups and organisations can submit applications through Fluxx.
Applicants can use the portal to complete draft applications, track the
progress of their application and access acquittal forms following the delivery
of their project. Councils’ assessment panel uses Fluxx to review, assess
and manage applications. Council’s current contract with Fluxx will
expire in January 2025, with a tender process underway to determine a new
online grant management system.
Eligibility
To be eligible for Council funding,
applicants must:
· Be incorporated or auspice by an
incorporated organisation;
· Be a non-profit community service
organisation or group located in the LGA and/or principally providing services
to the residents of Liverpool;
· Be able to supply a copy of their most
recent financial statements and public liability documents; and
· Acquit previous Council grants and have no
outstanding debts to Council.
Emerging community groups in the Liverpool
LGA often face challenges in meeting the eligibility criteria, particularly in
providing Public Liability Certificates and Audited Bank Statements. In cases
like this, the Grants team work closely with the applicant to arrange an
auspice. An auspice agreement occurs where an incorporated organisation agrees
to apply for funding or resources on behalf of an applicant that is not
incorporated. If the application is successful, the auspicing organisation
receives funding on behalf of the applicant and is legally responsible for
ensuring the delivery partner completes the program.
Community groups such as the African Women
Community Support Group (AWCSG) partnered with an auspice organisation STARTTS
to secure funding for the African Women's Dinner Dance; a vibrant community
event celebrating women and culture.
As part of the application process,
Councils Community Development Worker (Funding and Support) often meets with
applicants who require additional support and guidance prior to applying. The
grant development sessions are designed to informally discuss the application
process, proposed project and Council’s requirements in accordance the
Policy. Applicants can raise any issues or challenges that may be deterring
their application.
Assessment and Recommendation
All applications received by Council
through the Fluxx portal are assessed by a designated evaluation panel. This
includes the Community Development Worker (Funding & Support) and 2 other
officers from the Community Recreation and Outcomes team. For all applications,
the evaluation panel will consider the criteria of sustainability, value for
money, evidence of a need for the project, the number of individuals
participating in or benefiting from, and whether the organisation has the
capacity to deliver the project. Evaluating officers also consider achievable
outcomes that align with Council’s Community Strategic Plan (CSP) related
to cultivating inclusive and engaging communities.
Monthly reports to Councillors are
recommendations made by the Community Development Worker (Funding and Support)
on applications that successfully met the assessment criteria. The Grants
Donations and Community Sponsorship Report outlines relevant information for
Councillor consideration including applicant details, program name and outline,
expected outcomes, program delivery period, funding requested, overall cost of
delivering the initiative, and most importantly, Councils recommendation as per
the assessment criteria.
For grant programs that are open for
applications all year, recommendations will be made to the next available
Council Meeting. For grant programs with specific funding rounds,
recommendations will be made within three months of the closing date.
Council staff assessing applications are
required to identify and manage any potential conflicts of interest in
accordance with Council’s Code of Conduct and Ethical Governance:
Conflicts of Interest Policy. Council staff must ensure that any affiliation
between them and the applicant is appropriately managed when assessing
applications for funding.
Approval
The elected Council has the authority to
approve grants, donations, and sponsorship. This occurs at monthly Council
meetings, where Councillors choose to endorse funding towards proposed
initiatives. For Grant programs that have a value of $1000 or less, specific
delegation is given to the CEO for approval as per the *insert law*
Councillors must ensure that any
affiliation between them and the applicant is appropriately managed when
reviewing and endorsing applications for funding. This may involve removing
oneself from endorsing the outcome of a particular Grant application. For
instance, if a Councillor has a family member that plays for a soccer club that
has applied for event sponsorship, the Councillor should disclose any
affiliation to Council through a Conflict-of-Interest disclosure.
Funding Agreements
All successful applicants are required to
enter into a funding agreement before funds are
released and before a project can commence. Council’s support must be acknowledged on all promotional material.
Councils’ logo pack is shared with successful applicants as part of the
funding agreement, with a requirement for all promotional material to be
approved by Council prior to publication. Applicants are also advised on the
protocols to follow should they wish to engage a Councillor as part of their
endorsed program. This includes duties such as opening ceremonies, presenting
awards and delivering speeches.
Grant Programs
Council’s grant programs provide a
coordinated and integrated approach to growing Liverpool socially, culturally,
economically, and environmentally. Programs funded through Council’s
grants are required to address local priorities and identify needs in the local
community. Each grant type has its own unique criteria and priorities which
applications must meet to receive funding. These priorities are highlighted in
more detail below.
Council administers seven programs for the
allocation of grants:
· Kick-Starter Grants (funding up to $500 and
open all year round)
This program supports individuals or
unincorporated community groups to establish a social enterprise aimed at
addressing priorities in Council’s Community Strategic Plan or a project
which promotes social inclusion and increased community participation.
Applications can be made for funding of up to $500 per financial year.
· Small Grant (funding up to $1,000 and open
all year round)
This program
supports a range of small-scale community initiatives and projects that:
- Trial community capacity building programs
or facilitate small-scale community awareness events;
- Increase engagement of individuals in
academic, cultural, and environmental fields;
- Improve relative equality, resilience, and
capacity of Liverpool’s diverse communities; and/or;
- Enhance positive social, cultural, or
sustainability outcomes for local communities
related to Council’s strategic
priorities.
In 2024, several community organisations received a small grant to deliver
International Women’s Day initiatives. Global Women in a local community
group that celebrated International Women’s Day by delivering a health
and wellbeing event targeting women and the importance of screening for Breast
Cancer. The organisation partnered with Breast Cancer Australia to administer
free breast checks and engage attendees with a panel discussion lead by Breast
Cancer warriors.
· Liverpool Young Achievers Awards (funding
up to $1,000, school term 3 & 4)
The Liverpool Young Achiever Awards are
prizes to students who have excelled in citizenship, academic studies, artistic
endeavours, or sporting proficiency.
The 2024 Liverpool Young
Achievers program was successfully held on 7 November, with $7,300 in prize
money distributed across 16 schools from the Liverpool LGA.
· Community Grant (up to $10,000 open all
year round)
This program provides financial assistance
to community groups and organisations for projects that foster partnerships and
collaboration, build capacity, promote social inclusion, and increase community
participation. Funding will support projects that address one of the following
categories:
Community Grants are one of the most
popular and sought after funding programs. In 2024 Head Space delivered an
outstanding program targeting mental health, wellbeing and suicide prevention
in target youth groups within Liverpool. Workshops were designed in partnership
with community mentors and delivered at Liverpool Boys Highschool and Lurnea
Highschool. Students and the broader school community responded positively to
the program that highlighted the importance of early intervention in vulnerable
youth group and access to support services.
· Community Sponsorship (funding up to
$10,000 open all year round)
Council provides financial contributions
of up to $10,000 through Community Sponsorship to organisations that can
support growth of the Liverpool community and enhance Council’s
reputation. Applications to Council under this funding program can address
Economic, Environmental, or socio-cultural benefit to the Liverpool LGA.
In 2024, highlights from the Community
Sponsorship program included large scale community events that celebrated
Liverpool’s rich cultural diversity. Events such as the Diwali Festival,
Fiji Australia Day, and Ramadan Bazaar encouraged the broader community to
participate in a vibrant cultural exchange. Through these events, Council has
been able to achieve outcomes outlined in the Community Strategic Plan (CSP)
around cultivating inclusive and engaging communities.
· Matching Grant (up to $15,000 open all year
round)
This program provides financial support to
projects that build or strengthen communities within Liverpool. These projects
focus on supporting the development and implementation of community capacity
building activities, maintaining and conserving community assets, and providing
opportunities for a broader cross section of the community to be involved in
community and recreational activities. The Matching Grants program recognises
community contribution towards a project and can offer up to $15,000 support to
match this contribution. Contributions from the community can be made in cash
or value-in-kind. Council assesses in-kind contribution in the form
volunteer/professional time, venue contribution, as well as any non-cash
recourses
such as equipment, expertise and access to
stakeholders.
Programs can target key community areas
including:
In 2024, through the Matching Grants
program Play Matters Australia delivered an evidence-based music therapy
program Sing&Grow for young families in Austral. Through an
effective partnership with the Community Hub at Austral Public School, the Sing&Grow
program strengthened community capacity by facilitating the transition to
school for children entering kindergarten, as well as increase parent/carer
knowledge of child development.
· Sustainable Environment Grant (up to $5,000
open twice a year)
The Sustainable Environment Grants program
provides financial assistance to support schools and community groups to play
an active role in reducing their impact on the environment. Council invites
projects focused on environmental improvement,
sustainability education, and the
promotion of sustainable living as a way of life that
provides benefit to the natural
environment and local community.
In 2024, the sustainable environment grant
enabled several schools to deliver projects that promote conservation and
sustainable living. The Bush Tucker Garden at Newbridge Public School
incorporated experiences that connect the school community with First Nations
Peoples. Using QR codes placed near indigenous plants, visitors of the garden
can learn about the health benefits of these plants and sustainable ways to
incorporate these plants into your life.
2024 Program Trends
Over the past 12 months, community groups
and not-for-profit organisations have identified the following needs, and as a
result, delivered programs to address these gaps that evident in the Liverpool
LGA:
· Youth wellness and wellbeing (physical and
mental);
· Capacity building and skill development
opportunities for young people and those living with a disability;
· Activities that reduce social isolation in
seniors; and
· Support services and information exchange
sessions for migrant and refugee women/CALD women.
In 2025, Council will further encourage
projects and initiatives that prioritise these community needs by promoting
funding opportunities that target key areas through a suite of grant programs
including Youth Week, International Day for People with Disability and Harmony
Week Grants.
Celebrating Community Success
All recipients of Council grants in 2023
– 2024 were invited to celebrate their achievement at the Celebrating
Community Success event, held on 15 August 2024. The presentation, hosted
at the Liverpool Council Chambers, showcased the success of over 80 community
groups and organisations that have contributed to the Liverpool LGA through key
activities and initiatives funded by Council.
Conclusion
Council’s Grants Donations and
Community Sponsorship program will continue its commitment to build strong and resilient communities through financial support to local
community groups and not for profit organisations. As Liverpool grows, Council
aims to strengthen its contributions towards projects that benefit residents, increase participation in community activities, and
address social issues.
FINANCIAL IMPLICATIONS
Costs
associated with this recommendation have been included in Council’s
budget for the current year and long-term financial plan.
|
Economic
|
There are no economic and financial considerations.
|
|
Environment
|
There are no environmental and sustainability
considerations.
|
Social
|
Promote community harmony and address discrimination.
|
Civic
Leadership
|
Encourage the community to engage in Council initiatives and actions.
Operate a well-developed governance system that demonstrates
accountability, transparency, and ethical conduct.
|
|
Legislative
|
There are no legislative considerations relating to
this report.
|
|
Risk
|
There is no risk associated with this
report.
|
Nil
