02 5 February 2013 Corporate Governance Committee Agenda.PDF

NOTICE

of

CORPORATE GOVERNANCE COMMITTEE MEETING

Pursuant to the provisions of Section 84(1) of the Local Government Act 1999

TO BE HELD IN

COMMITTEE ROOM PLAYFORD CIVIC CENTRE

10 PLAYFORD BOULEVARD, ELIZABETH

ON

TUESDAY, 5 FEBRUARY 2013 AT 4.30 PM

TIM JACKSON CHIEF EXECUTIVE OFFICER Issue Date: Thursday, 31 January 2013

PRESIDING MEMBER – MR MARTIN WHITE

Mr Allen Bolaffi Mayor Glenn Docherty Cr Duncan MacMillan JP

Mr Mark McAllister

Corporate Governance Committee Agenda 2 05 February 2013

VISION AND GOALS OF CITY OF PLAYFORD

Community Wellbeing

Vision: A vibrant, prosperous and just community that is diverse, active, creative, strong, safe and healthy.

Goal: To improve and support the wellbeing, health and safety of the Playford community.

Economic Prosperity

Vision: Economic Prosperity refers to the condition of being prosperous with low unemployment and a general sense of economic wellbeing for the entire community.

Goal: To improve the economic prosperity of the region.

Environmental Care

Vision: Environmental Care refers to activities and approaches undertaken throughout Council to deliver services to our community in a sustainable, ecologically sound and responsible manner.

Goal: To secure a sustainable future for Playford’s community and environment through leadership, innovation, collaboration and engagement.

Organisational Excellence

Vision: Organisational Excellence is the combined corporate effort that balances the requirements of stakeholders and the community and increases the delivery of long-term organisational sustainability through performance excellence.

Goal: A progressive, responsive and innovative organisation that supports the implementation of the Playford community vision.

RELEVANT OBJECTIVES

Community Wellbeing

Objective 1.1 A community with access to quality services for all Objective 1.2 A community that values and participates in learning Objective 1.3 A healthy, active and connected community Objective 1.4 A safe and proud community

Economic Prosperity

Objective 2.1 Quality roads, footpaths and public spaces Objective 2.2 Local jobs for local people Objective 2.3 A better place to do business Objective 2.4 Recognised as a great place Objective 2.5 Planning for Urban Renewal and Growth

Environmental Care

Objective 3.1 Protecting and improving our natural environment Objective 3.2 A City with attractive buildings and landscapes Objective 3.3 Waste that is managed in a responsible manner Objective 3.4 Water that is managed in a sustainable manner

Organisational Excellence

Objective 4.1 Decision making in the best interests of the City Objective 4.2 Effective leadership and teamwork throughout the organisation Objective 4.3 A community that is informed and involved Objective 4.4 Balancing community need with available resources Objective 4.5 Working towards sustainability


CITY OF PLAYFORD

CORPORATE GOVERNANCE COMMITTEE

CHARTER

Endorsed by Council on 25th September 2012

1. ROLE OF THE COMMITTEE – TO BE DETERMINED BY THE COMMITTEE

1.1. The Committee is established as an S41 Committee in accordance with the Local

Government Act 1999 (the Act). For the purposes of S126 of the Act, the Corporate

Governance Committee fulfils the role of the City of Playford “Audit Committee”.

1.2. The purpose of the Committee is to review the development and adequacy of principles,

policies and practices of Financial Planning & Reporting, Corporate Governance, Risk

Management and Internal Control and make recommendations to Council as appropriate.

2. AUTHORITY

2.1. The Corporate Governance Committee has no authority to act independently of Council.

The Committee is authorised by Council to undertake work to efficiently and effectively

meet the objectives described by its role and terms of reference.

3. DELEGATIONS

3.1. The Committee has the following delegations from Council:

Confirm minutes of previous meetings as true and accurate record of proceedings.

Appoint a presiding member under paragraph 6.5 of the charter.

Approve the Committee’s annual report

3.2. The Committee will have no standing financial delegations. If required for a specific

purpose, these will be sought from Council at the time or where appropriate, through the

Chief Executive Officer’s delegation.


4. MEETINGS and COMMUNICATION

4.1. The Committee will meet at least four times per year at appropriate times in the financial

reporting cycle and as business needs arise or as decided by Council from time to time.

4.2. Minutes of Meetings (in accordance with legislative requirements) will be kept and

provided to all Committee Members and Elected Members within three working days of

the Meeting.

4.3. A communiqué will be provided to all Elected Members after each meeting by the

Committee to keep Elected Members informed and up to date on the views of the

Committee on various issues and/or the discussion points considered as part of

Committee recommendations. The communiqué will be authorised by the Committee and

delivered through the presiding member and may take the form of a written memo or

presentation to the Council depending on the issue(s) covered.

4.4. In addition to the communiqué, from time to time the Committee will communicate with

Elected Members on issues of importance to the Council. This communication will be

authorised by the Committee and may be delivered by a Committee member in the form

of a presentation to Elected Members or a written memo.

4.5. The Committee will develop, maintain and implement a work plan which will serve the

purpose of a forward agenda detailing the proposed agenda items and meeting dates.

4.6. The quorum necessary for the transaction of business shall be three Members including

one independent member.

5. TERMS OF REFERENCE

5.1. FINANCIAL REPORTING and SUSTAINABILITY

5.1.1. Review the annual financial report and application of accounting policies with

management and the external auditor and provide opinion to the Council and Elected

Members on whether it presents fairly the state of affairs of Council.

5.1.2. Utilising the Committee’s expertise, review and make recommendations to the Council

and Elected Members regarding the financial ratios, financial targets and levels of debt

in the Long Term Financial Plan.

5.1.3. Provide commentary and advice on the financial sustainability of Council, and any risks

in relation to, as part of the annual adoption of the Council’s Long Term Financial Plan,

Annual Business Plan and any other strategic plans and Council Plan.

5.1.4. Provide recommendations to the Council to improve operational performance and

ensure more effective and efficient use of resources.


5.1.5. Review and make recommendations to the Council regarding any other significant

financial, accounting and reporting issues as deemed necessary by the Committee,

Council or Management

5.2. EXTERNAL AUDIT

5.2.1. When required, consider and make recommendations to the Council on the appointment

of the external auditor.

5.2.2. Make recommendation to Council on the terms of engagement and fees of the external

auditor at the start of each audit contract.

5.2.3. Make recommendation to Council on the scope of work, reports and activities of the

external auditor, including interaction with any internal audit capability.

5.2.4. Review and provide feedback to External Audit on their performance.

5.2.5. Annually review the findings of the audit with the external auditor

5.2.6. Review management’s response to reviews, recommendations and audit letters

provided by the external auditors.

5.2.7. Establish and review policies as appropriate in regards to independence of the external

auditor.

5.3. RISK MANAGEMENT

5.3.1. Review and comment on the adequacy of the Council’s risk management framework for

identifying, monitoring and managing significant business risks.

5.3.2. Annually review the Council’s insurance program for adequacy having regard to the

business and insurable risks associated with the Council’s business.

5.3.3. Propose and review the exercise of powers under Section 130A “Other Investigations” if

required by Council and/or deemed necessary by the Committee.

5.4. INTERNAL AUDIT, CONTROLS and COMPLIANCE

5.4.1. Oversee and approve the work program for the internal audit function within the

annual budget provided by Council and monitor progress against the work program.

5.4.2. Annually review the Council’s compliance framework for identifying, monitoring and

managing compliance with all laws and regulations such as Prudential Management,

Procurement and Internal Controls.


5.4.3. Ensure the Council’s annual review of internal controls adequately addresses legislative

requirements and promotes an effective internal control environment.

5.4.4. Seek and obtain regular updates from Council Staff and/or external auditors regarding

compliance matters in relation to the Council’s significant statutory requirements.

5.4.5. Report to the Council on any issues of non-compliance associated with 5.4.3 as deemed

necessary by the Committee.

5.4.6. Review the progress of the Internal Audit function and make recommendations as

appropriate.

5.4.7. Through the internal audit function, review and comment on the adequacy of internal

controls, financial reporting and other financial management systems and practices.

5.5. WHISTLE BLOWING and FRAUD

5.5.1. Review and comment on the adequacy of the Council’s arrangements for its employees

to raise concerns, in confidence, about possible wrongdoing in financial reporting or any

other matters.

5.5.2. Ensure these arrangements allow independent investigation of such matters and

appropriate follow-up action.

5.5.3. Provide comment and input into the adequacy of Council’s Whistle Blowing and Fraud

and Corruption policies.

6. MEMBERSHIP AND TERM OF OFFICE

6.1.1. The Committee shall comprise five members consisting of two Elected Members and

three Independent Members.

6.1.2. Elected Members will be appointed for a period until the next general Council election,

after which they may be re-appointed.

6.1.3. The Mayor (Principal Member) may be a member of the Committee with voting rights,

but shall not be the presiding member of the Committee.

6.1.4. Independent Members of the Committee shall be appointed to bring recent and relevant

experience and their capacity to act as a mentor to the Elected Members on the

Committee.


Nomination Process

for Independent

Members

Term of Office

Endorsed by Council

Resolution

Appointed

Independent

Member

Endorsed by

Council

Resolution

on

Term

Concludes

Sought through an expression

of interest process then

endorsed by Council

Resolution.

Mr Martin White 10th Dec 2010 30th Apr 2013

Mr Allen Bolaffi 8th Mar 2011 31st Mar 2014

Mr Mark McAllister 8th Mar 2011 31st Mar 2015

Each subsequent appointment will be 3 years.

6.2. The Presiding Member must be an Independent Member and will be determined by the

Corporate Governance Committee for twelve months, after which they may stand for re-

election.

7. REVIEW

7.1. The Committee shall assess its own performance and Charter annually to ensure that it is

operating at maximum effectiveness. Following this review, it will provide an annual

report to Council on its performance, recommending any changes that are necessary.

7.2. In reviewing its performance, the Committee will have regard to:

the achievement of the Committee’s role and terms of reference.

the Committee’s decision making process.

the timeliness, quality and quantity of information received.

building a strong relationship with Council, Council Staff and other Members of

the Committee.

the involvement and attendance by members.

8. CODE OF PRACTICE

8.1. This Charter is to be read in conjunction with the City of Playford’s Council and

Committee Code of Practice.


Contents

City of Playford Corporate Governance Committee Meeting

AGENDA TUESDAY, 5 FEBRUARY 2013 AT 4.30 PM

1 ATTENDANCE RECORD

1.1 Present

1.2 Apologies

1.3 Not Present

2 CONFIRMATION OF MINUTES

RECOMMENDATION The Minutes of the Corporate Governance Committee Meeting held 4 December January 2013 be confirmed as a true and accurate record of proceedings.

3 DECLARATIONS OF INTEREST

4 DISCUSSION FORUM

4.1 Committee Self Assessment ..................................................................................... 12

4.2 Long Term Financial Plan and Annual Business Plan Development Update ............. 13

4.3 Appointment of an Independent Member .................................................................. 14

4.4 Emerging Issues for the City of Playford ................................................................... 15

4.5 Internal Control Work Program 2012/13 .................................................................... 16

4.6 Corporate Governance Committee Workplan (Attachment) ...................................... 17

5 STAFF REPORTS

Matters to be considered by the Committee Only

Matters for Information

5.1 Efficiency and Effectiveness Second Quarter Update (Attachment) .......................... 24

5.2 External Audit Correspondence (Attachment) ........................................................... 52

6 MOTIONS

7 CONFIDENTIAL MATTERS

Nil


8 NEXT MEETING DATE

Tuesday, 02 April 2013, 4:30 pm Committee Room Playford Civic Centre 10 Playford Boulevard, Elizabeth

9 CLOSURE


DISCUSSION FORUM


4.1 C ommi ttee Self Assessment

4.1 Committee Self Assessment

Presenter: Mr Andrew Wroniak

Purpose: To provide feedback as part of the self-assessment of the Committee.

Outcome: Identification of the strengths and weaknesses in the performance of the committee

Duration: 15 Minutes

Committee Self-Assessment tools are provided as a separate document to the agenda.


4.2 Long Ter m Financial Plan and Annual Busi ness Pl an Devel opment U pdate

4.2 Long Term Financial Plan and Annual Business Plan Development Update


Purpose: To outline the forthcoming process for the 2013/14 LTFP and Annual Business Plan.

Outcome: To receive feedback from the Committee regarding the proposed process.



4.3 Appoi ntment of an Independent Member

4.3 Appointment of an Independent Member


Purpose: To update the Committee on the process and panel selection of the position.

Outcome: The Committee be informed of Council’s decision on the process of the position.



4.4 Emerging Issues for the City of Playfor d

4.4 Emerging Issues for the City of Playford

Presenter: Mr Tim Jackson

Purpose: To inform the Committee of significant issues of relevance to the Committee.

Outcome: To receive information from the Committee.



4.5 Internal C ontrol Wor k Program 2012/13

4.5 Internal Control Work Program 2012/13

Presenter: Ms Rosemary Munslow

Purpose: Update the Committee on the internal control work program.

Outcome: Ensure the Committee is aware of the progress to date.



4.6 C orporate Gover nance C ommittee Wor kplan

4.6 Corporate Governance Committee Workplan See Attachment No: 1. Corporate Governance Committee Workplan

Presenter: Mr Martin White

Purpose: To discuss the Committee Workplan.

Outcome: To develop the Workplan.


Corporate Gover nance C ommittee Wor kplan

Corporate Governance Committee Workplan 18 Item 4.6 - Attachment 1

Corporate Governance Work Plan

Month Item No. Item Report or Discussion

Mar-13 No Meeting Scheduled

2-Apr-13 Financial Management (Sections 126 & 128)

Review Assets Policy Report

Review Treasury and Reserve policy Report

Review First Draft Long Term Financial Plan, Annual Business Plan, Asset Management Plan and 4 year Council Plan - Assumptions

Discussion

Risk Management (Section 126)

Review plan for presentation to Elected Members Discussion

Discuss internal controls review and progress of action items Discussion

Review interim external audit management letter Report

Legislative and Regulatory Compliance (Sections 126, 128 & 130A)

Review action items from Local Government Act compliance audit. Report

Appointment of Independent Member Discussion

Review progress of action items for OHS&W Report

Efficiency and Effectiveness (Section 130A)

Project Progress and Benefit Realisation Quarterly Report




May-13 No Meeting Scheduled

4-Jun-13 Financial Management (Sections 126 & 128)

Update on progress of external audit action items Report

Review draft Annual Business Plans, Long Term Financial Plan and Asset Management Plan

Discussion


Emerging Issues for Playford – Quarterly Update Discussion

Whistle blowing and fraud instances and action plan Report

Review insurance limits for 2013-14 Discussion

Discuss internal controls review and progress of action items Discussion


Review progress of compliance with Local Government Act Discussion






Review draft committee annual report Discussion

Jul-13 No Meeting Scheduled

6-Aug-13 Financial Management (Sections 126 & 128)

Review external audit management letter from June visit Report


Discuss the finalised 2013-14 work plan for Internal Controls review Discussion

Emerging Issues for the City of Playford – Quarterly Update Discussion


Annual Review Corporate Governance Committee’s Charter


Approve Committee annual report Discussion


Sept-13 No Meeting Scheduled




1-Oct-13 Financial Management (Sections 126 & 128)

Update on progress of external audit action items Report

Review Annual Financial Statements 2012-13 and meet with auditor Report

Review of draft external audit management representation letter Report


Review plan for presentation to Elected Members Discussion


Review draft Annual Report for compliance with the Local Government Act Report

Review draft Annual Report statements pertaining to risk and internal controls Report


Nov-13 No Meeting Scheduled

3-Dec-13 Financial Management (Sections 126 & 128)

Review Finance Policies (General update) Report




Discuss plan for the 2014-15 Annual Business Plan and Long Term Financial Plan

Discussion


Emerging Issues for the City of Playford – Quarterly Update Discussion

Internal Controls review quarterly update Report




Review current financial ratios meet the needs of Council Discussion


STAFF REPORTS

MATTERS TO BE CONSIDERED BY THE COMMITTEE ONLY

Matters for Information


5.1 Effici ency and Effecti veness Second Quarter U pdate

5.1 EFFICIENCY AND EFFECTIVENESS SECOND QUARTER UPDATE Responsible Executive Member: Shaun Kennedy Contact Person: Tim Vonderwall See Attachment No: 1. Efficiency and Effectiveness Second Quarter Report Why is this matter before the Council or Committee? Matters for Information Purpose To provide the Committee with an update on the progress of the Efficiency and Effectiveness program for the second quarter 2012/13. Recommendati on

STAFF RECOMMENDATION The Information Report be received.

Relevance to Council Plan Objective 4.5 Working towards sustainability Relevance to Public Consultation Policy There is no requirement to consult with the community on this matter however consultation will occur as part of the council plan and the long term financial plan preparation. Background At the Council meeting on August 2011, Council resolved the following; “Based on confirmation that a business case has proven, Council agree to re-introduce Efficiency and Effectiveness targets in the next revised Long Term Financial Plan Council endorse a 5-year Efficiency and Effectiveness program based on achieving a cost reduction of 9% by 2015/16 Council is to receive a report on a quarterly basis and hold informal gathering as required to track the process of the Efficiency and Effectiveness program Council authorises the Chief Executive Officer to release the PwC Summary Overview of Potential Opportunities (attachment 2) to Council staff and the general public” There after those decisions the CEO then embarked on an organisational restructure process designed to position the organisation to pursue the efficiency targets set by the Council. In June 2012 Council received a report outlining the 5 year plan, and more detail relating to the projects, investment, return, benefits realisation and overall approach to 2012/13. The projects for 2012/13 will be delivered in the following categories;

Process Improvement and Re-engineering.

People Development and Service Alignment.


New and Improved Systems.

Reviewing How We Procure.

Reviewing Asset Management.

An information report accompanied with the quarterly report in attachment 1 was presented to Council in September 2012. Council received the report and the Council commented on their satisfaction with the content/approach. In addition to project delivery, quarter 1 demonstrated significant progress in development of the following initiatives and strategies;

Process Improvement Methodology

Change Management Strategy

Benefits Realisation

Project Management Framework Current Situation Since the first quarter report, the Efficiency and Effectiveness Program has focused on benefits realisation as a priority. Benefits Realisation is a key component of Program Management; it provides a mechanism for identifying, analysing, measuring and capturing benefits that are identified throughout a program of transformation or change. Based on the Benefits Realisation Framework and templates that were presented to the Council in the first quarter 2012/13, the Efficiency and Team worked with the key Business Unit staff, Project Managers and Executive to gather detailed information for each project underway in the Efficiency and Effectiveness Program, (see attachment 1 for project information). The data gathered has either been measured, or scheduled for measurement, depending on project implementation timing. The Benefits Realisation data measured in quarter 2 has provided year to date and forecast identified savings figures for this financial year. Figure 1.0 provides YTD savings identified, and forecast savings identified for 2012/13. The benefits identified will undertake accounting processes at the full year budget review 2012/13 for full realisation. A breakdown of savings per project can be found in Attachment 1.

Figure 1.0

Efficiency and Effectiveness Benefits Realisation Report

Full Year Forecast Savings

Program Category Target Savings $

Forecast Savings $

Process improvement and re-engineering 220,000 220,000 People Development and Service Alignment 200,000 336,000

New and improved systems 140,000 52,000

Reviewing how we Procure 200,000 200,000

Reviewing asset management 71,000 71,000

Total 831,000 879,000

YTD Identified Savings $

463,000


Although Benefits Realisation has been the primary focus in the last quarter, positive improvement was also made in other areas of the program. Improvement was seen with regards to project governance, and project reporting. All project planning documentation was finalised and received and increased consistency of project reporting has been delivered. From a program scheduling perspective, all projects that were due to start this financial year have been initiated and are on schedule. As reported in the first quarter 2012/13, a process to appoint an independent auditor of the Efficiency and Effectiveness Program has begun. At this stage, the organisation has approached the market, received the offers from the industry and is evaluating the submissions to appoint a supplier. Further detail on these and other fundamental success factors for the Efficiency and Effectiveness program can also be found in Attachment 1. Future Action As provided in Attachment 1, staff will continue to report to the organisation and the Council on program progress regularly. Although the investment vs. return target figures are equal in the 2012/13 year, from July 2013 onwards, any net efficiency and effectiveness gains will be presented to Council in a report as part of the annual budget process. Through this reporting and budget process, options for utilising the efficiency savings or effectiveness gains will be addressed. The Efficiency and Effectiveness team are in preparation to engage an independent audit of the program management, governance and benefits realisation. Timing of the audit is planned for the 3rd quarter 2012/13. Planning for the 2013/14 projects and program benefits realisation will start in the 3rd quarter 2012/13. Subsequently the updated 5 year Program Plan Outline and 2013/14 Year Plan Outline will be presented to the Council once the planning is complete.

Efficiency and Effectiveness Second Quarter Report 27 Item 5.1 - Attachment 1

Effici ency and Effec ti veness Second Quar ter R eport

Efficiency & Effectiveness Program

2012/13 Second Quarter Report

December 2012


Table of Contents 1 Background ........................................................................................................................................... 3

2 Executive Summary .............................................................................................................................. 4

3 Benefits Realisation .............................................................................................................................. 4

4 2012/13 Identified Projects .................................................................................................................. 7

4.1 Working Better Together Project ................................................................................................. 8

4.2 Service Standards ......................................................................................................................... 9

4.3 Management Restructure .......................................................................................................... 10

4.4 Planning and Building Review..................................................................................................... 11

4.5 Go MAD ...................................................................................................................................... 12

4.6 Project Management Review ..................................................................................................... 13

4.7 Finance Review ........................................................................................................................... 14

4.8 Procurement ............................................................................................................................... 15

4.9 Technology Services Review ....................................................................................................... 16

4.10 iBOSS ........................................................................................................................................... 17

4.11 Paperless Office .......................................................................................................................... 19

4.12 InfoCouncil .................................................................................................................................. 20

4.13 Asset Stores/Fleet ....................................................................................................................... 21

5 Program Governance .......................................................................................................................... 22

6 Process Improvement Methodology .................................................................................................. 23

7 Change Management Strategy ........................................................................................................... 23

8 Project Management Framework....................................................................................................... 24

9 Independent Audit .............................................................................................................................. 24

10 2012/13 Program Financial Update................................................................................................ 25


1 Background At the Council meeting on August 2011, Council resolved the following; “Based on confirmation that a business case has proven, Council agree to re-introduce Efficiency and Effectiveness targets in the next revised Long Term Financial Plan Council endorse a 5-year Efficiency and Effectiveness program based on achieving a cost reduction of 9% by 2015/16 Council is to receive a report on a quarterly basis and hold informal gathering as required to track the process of the Efficiency and Effectiveness program Council authorises the Chief Executive Officer to release the PwC Summary Overview of Potential Opportunities (attachment 2) to Council staff and the general public” There after those decisions the CEO then embarked on an organisational restructure process designed to position the organisation to pursue the efficiency targets set by the Council. In June 2012 Council received a report outlining the 5 year plan, and more detail relating to the projects, investment, return, benefits realisation and overall approach to 2012/13. The projects for 2012/13 will be delivered in the following categories;





Reviewing Asset Management. An information report accompanied with the quarterly report in attachment 1 was presented to Council in September 2012. Council received the report and both the Corporate Governance Committee and Council commented on their satisfaction with the content/approach. In addition to project delivery, quarter 1 demonstrated significant progress in development of the following initiatives and strategies;

Process Improvement Methodology

Change Management Strategy


Project Management Framework


2 Executive Summary Since the first quarter report, the Efficiency and Effectiveness Program has focused on benefits

realisation as a priority. Based on the Benefits Realisation Framework and templates that were presented

to the Council in the first quarter 2012/13, the Efficiency and Team worked with the key Business Unit

staff, Project Managers and Executive to gather detailed information for each project underway in the

Efficiency and Effectiveness Program, (see attachment 1 for project information). The data gathered has

either been measured, or scheduled for measurement, depending on project implementation timing.

Benefits Realisation is a key component of Program Management; it provides a mechanism for

identifying, analysing, measuring and capturing benefits that are identified throughout a program of

transformation or change. Based on the measured data for this quarter, $463,000 has been identified

YTD as savings with a forecast identified saving of $879,000 for the 2012/13 financial year. These

savings will undertake accounting processes at the full year budget review 2012/13. For further

information please see section 3.

Although Benefits Realisation has been the primary focus in the last quarter, positive improvement was

also made in other areas of the program. Improvement was seen with regards to project governance, and

project reporting. From a program scheduling perspective, all projects that were due to start this financial

year have been initiated. Overall the projects for 2012/13 are on schedule and overall the program is

progressing well. All projects planning documentation was finalised and received and increased

consistency of project reporting has been delivered. See section 4 for further information.

As reported in the first quarter 2012/13, a process to appoint an independent auditor of the Efficiency and

Effectiveness Program has begun. At this stage, the organisation has approached the market, received

the offers from the industry and is evaluating the submissions to appoint a supplier. See section 9 for

further information.

3 Benefits Realisation Benefits Realisation is a key component of Program Management, it provides a mechanism for identifying, analysing, measuring and capturing benefits that are identified throughout a program of transformation or change. The City of Playford Benefits Realisation strategy, framework and system was finalised in August 2012. Throughout its development the strategy, framework documents and systems was presented to the Corporate Governance Committee. The Committee provided input into strategy and systems, and was comfortable with the steps in place to measure benefits throughout the program. To ensure the anticipated benefits are realised for the community, ratepayers, Elected Members and staff, Playford will have a consistent approach to benefits tracking and realisation across all efficiency and effectiveness initiatives. This consistent approach will comprise:

► Planning for Benefits Realisation as a priority before a project is underway (usually as

part of or immediately as a result of any individual project Business Cases Playford develops)

► Using the same process and tools for Benefits Realisation ► Linking Benefits Realisation to the project Communications Plan at the outset of the planning

stage so anticipated benefits form the cornerstone of the key messages for each project ► Ensuring all benefits pursued are supportive of, and can be traced back to, Playford’s

strategic objectives (strategic intent) ► All Benefits Realisation Plans to be agreed and signed off by the Program Sponsor or their

nominee – hence including the sample document history at the front of this document. This should feature in all Benefits Realisation Plans and Benefits Profiles (if these are produced separate to a Benefits Realisation Plan)

► No changes to intended benefits once agreed, without the authorisation of the Program Sponsor and/or CEO to ensure that interdependencies between benefits can be managed without adverse effect

All projects funded by the Efficiency and Effectiveness Program are subject to the approach above and for those projects that have started, detailed work profiling each projects benefit is currently being undertaken. Since the first quarter report, the Efficiency and Effectiveness Program has focused on benefits realisation as a priority. Benefits Realisation is a key component of Program Management; it provides a mechanism for identifying, analysing, measuring and capturing benefits that are identified throughout a program of transformation or change.


Based on the Benefits Realisation Framework and templates that was presented to the Corporate Governance Committee in the first quarter 2012/13, the Efficiency and Team worked with the key Business Unit staff, Project Managers and Executive to gather detailed information for each project underway in the Efficiency and Effectiveness Program. The data gathered has either been measured, or scheduled for measurement, depending on project implementation timing. Figure 1.0 provides YTD savings identified, and forecast savings identified for 2012/13. The benefits identified will undertake accounting processes at the full year budget review 2012/13 for full realisation. A breakdown of savings per project can be found in section 3 of this report.

Figure 1.0

Efficiency and Effectiveness Benefits Realisation Report

Full Year Forecast Savings

Program Category Target Savings $

Forecast Savings $

Process improvement and re-engineering 220,000 220,000 People Development and Service Alignment 200,000 336,000

New and improved systems 140,000 52,000

Reviewing how we Procure 200,000 200,000

Reviewing asset management 71,000 71,000

Total 831,000 879,000

YTD Identified Savings $

463,000 Figure 3.0 provides a breakdown of the YTD versus full year budget and target figures for the second quarter data. The data is summarised by projects for their identified category. See figure 2 for the status legend. Figure 2.0

G Progressing as planned

A Needs

monitoring

R Requires

Action


Figure 3.0


4 2012/13 Identified Projects The projects identified for 2012/13 generally focus on establishing the baseline for further Efficiency and Effectiveness improvements in years 3-5 and beyond. It is foreseen that further projects in the remaining years of the project will not only be identified through the Executive group, but primarily through Business Unit and staff initiatives via the GoMad Process Improvement project. In 2012/13, projects will be delivered in the following categories.





Reviewing Asset Management. An update of the 2012/13 identified projects are provided below; (see figure 2 for legend) Note: Project Benefits Realisation Savings data is only provided for 2012/13. Benefits measurement may occur in subsequent years, therefore the savings will not be forecast this financial year. See program manager comments at the end of each project update for further information.


4.1 Working Better Together Project Project Manager – Andy Slager Project Start Date: July 2012 Project Completion Date: July 2014 Project Summary Utilising a proven planning, work allocation and reporting tool, City Services will increase service delivery by implementing the City Presentation Improvement Program. The project will review processes, service delivery and resource allocation in the City Services Business Unit, with a primary focus on operations functional areas and teams. Through better alignment of resources to services, and subsequently reengineering the processes relating to the identified areas, the following enhancements will be made.

Better utilisation of assets, staff and other resources.

Reduction in reactive work through better work practices and a business unit operating in a planned and proactive manner.

Realigning teams to services and planed work allocation.

Focus on improving staff morale and performance through change management initiatives. Project Update Work has commenced on the ground to reduce the number of unactioned CRS Backlog requests with scoping work continuing. Two workshops were held with regards to the Seasonal / Cyclic Project and two workshops were held with regards to the Precinct Maintenance Project. Next Steps Workshops on the Rapid Response Project commence this week


A Needs

monitoring

R Requires

Action

Working Better Together

Project Reporting

YTD Act YTD Budget FY Budget Budget Status

%Completed Schedule

Status Overall Status

28,500 28,500 57,000 G 25% G G

Benefits Reporting

Project Summary Complete

Benefit Profile

Complete

2012/13 Benefits Target

2012/13 2012/13 Savings Forecast

Measurement Status


Status Benefits Actual

YES YES 200,000 0 200,000 G G

Program Manager Comments: N/A


4.2 Service Standards Project Manager – Nigel Fox Project Start Date: July 2012 Project Completion Date: July 2014 Project Summary

This project will involve documenting Service Standards for the whole organisation over a period of 12 – 24 months. As defined in the City of Playford organisational vision, “every Service will have a standard”. Defining Services is essential so that Playford employees, management, Elected Members and ratepayers have a clear understanding the level of service to expect and/or deliver. Therefore any proposed increase/reduction in a given service can be attributed to costs and resource implications. Project Update Subject Matter Expert meetings have been undertaken to progress the service standard models based upon the format presented to Council. Next Steps The high level working model for service costs have been defined and will work in tandem with the generation of service standard models to yield costs centred around current models.


A Needs

monitoring

R Requires

Action

Service Standards

Project Reporting


%Completed Schedule


61,500 41,000 82,000 G 12% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES YES 0 0 0 G G

Program Manager Comments: Although no savings identified for this project. The data captured provides vital baseline data for future EandE initiatives.


4.3 Management Restructure

Project Manager – Cheryl Thorpe Project Start Date: December 2011 Project Completion Date: June 2012 Project Summary Review and implement a new organisation structure that better aligns to the Council’s business activities. Project Update The Management restructure was completed as per the project schedule in June 2012. The project involved communication to all staff and Elected Members on the new structure emphasising the importance of the positions becoming people managers. The Manger Remuneration has been completed with contracts issued and salaries finalised Next Steps Performance criteria supporting Management Performance Plans is to be determined within the next three weeks


A Needs

monitoring

R Requires

Action

Management Restructure

Project Reporting

YTD Act YTD

Budget FY Budget

Budget Status

%Completed Schedule


0 0 0 G 100% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES NO 0 0 0 G G



4.4 Planning and Building Review Project Manager – Nigel Fox Project Start Date: July 2012 Project Completion Date: June 2013 Project Summary The planning approval process is a high volume repetitive process. The project is to apply Lean enterprise principles to the office environment. This requires training of staff in new techniques with workshops to identify and implement improvements in the processes designed to increase through put, reduce errors and eliminate rework. Thus providing improve customer service and reducing unit costs. Project Update The overall process applied within the planning and building department has been broadly defined with regards to the opportunity for benefits realisation. Next Steps The next steps focus on the method and benefit of implementing the discernible changes to facilitate six primary business components.


A Needs

monitoring

R Requires

Action

Planning and Building Review

Project Reporting

YTD Act YTD

Budget FY Budget

Budget Status

%Completed Schedule


41,000 41,000 82,000 G 12% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES YES 0 0 0 G G

Program Manager Comments: Savings target measurement of $100K is scheduled for 2013/14 FY.


4.5 Go MAD Project Manager – Nigel Fox Project Start Date: July 2012 Project Completion Date: July 2013 Project Summary The Efficiency and Effectiveness program is reliant on staff engagement as a fundamental change in the way we do business. However the major reforms identified in the Business Case will not impact all employees and so we have the potential to have a large number of employees disengaged from the program and not part of the cultural shift; Hence the need to promote and encourage efficiency and effectiveness activities at the team level whilst maintaining the ability to coordinate and report on the resources being applied to the program. Hence the need for Go MAD! (Go Make a Difference). The purpose of the Go MAD! Program is to.

Deliver tangible benefits to the organisation

Promote ideas, benefits realisation and organisational E&E

Shift behaviours and mindsets of our employees to embrace E&E.

Ensure decision making is keep at the local level

Imbed the capability throughout the organisation to increase sustainability

Capture and transferring of good practice throughout the organisation To achieve this, a common set of tools and techniques are to be designed and deployed though out the organisation and supported by a leadership culture that utilises the tools in conducting everyday business. Project Update GoMAD Lite workshops and champion training have been undertaken with further training being scheduled. Several ideas have been captured and are currently being investigated. Next Steps The tracking and reporting mechanism is being implemented which will facilitate new ideas being captured, investigated and reported back to business.


A Needs

monitoring

R Requires

Action

Go Mad

Project Reporting


%Completed Schedule


61,500 41,000 82,000 G 12% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES YES 20,000 0 20,000 G G



4.6 Project Management Review Project Manager – Nigel Fox Project Start Date: September 2012 Project Completion Date: December 2012 Project Summary An organisation the size and complexity of the City of Playford delivers a wide variety of Projects with a wide variety of objectives and risks. To ensure that each project is delivered with due diligence, adequate risk management, financial controls and the rigour required, Project Management principles/guidelines should apply. This project will deliver a standardised project management framework with the appropriate tools for staff to deliver on successful projects, yet remain flexible enough that it can be applied across out diverse business. Having a standard project management methodology and framework will also ensure that program and organisational progress tacking, auditing and reporting can be produced at a holistic level. Project Update The tools generated through the Project Management Review are being integrated through financial and schedule tracking within the assets department. Applicability of the templates and tools relevant to each type of project undertaken at CoP have been submitted for review with further refinement anticipated as the tools are implemented. Discussions are currently underway with regards to project governance being integrated through the risk management policies. Next Steps The review of risk management policies is anticipated to result in the initial application of standardised project management techniques and act as a staging point for standardisation.


A Needs

monitoring

R Requires

Action

Project Management Framework

Project Reporting

YTD Act YTD

Budget FY Budget

Budget Status

%Completed Schedule


25,000 25,000 50,000 G 12% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES NO 0 0 0 G A

Program Manager Comments: Although no savings identified for this project. Project management disciplines are required to be established for suture organisational capacity to deliver future EandE initiatives.


4.7 Finance Review Project Manager – Ben Cunningham Project Start Date: September 2012 Project Completion Date: October 2012 Project Summary Though the previous functions, services and structures of Finance and Rates team have served the organisation well in the past, the organisational restructure that was undertaken in December 2010 and the opportunities that it has presented has prompted the commencement of the Finance Review project. The aim of this project is to review the makeup of the Finance and Rates team and its role, functions and services it currently provides and what is required in the future. Although viewed as important corporate service functions within the City of Playford and an integral part of the organisation, there is a real need to provide greater visibility to what the new Finance and Rates team will do and to ensure that it provides a relevant and value adding service to our internal, external customers and stakeholders moving forward. Project Update A new finance team has been selected and started on the week commencing 7

th of December. The group

is currently being trained and a new Financial Controller is reviewing all finance business processes. Next Steps The finance business processes are to be reviewed and implemented in the new iBOSS system.


A Needs

monitoring

R Requires

Action

Finance Review

Project Reporting

YTD Act YTD

Budget FY Budget

Budget Status

%Completed Schedule


6,250 12,500 25,000 G 50% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES NO 100,000 125,000 125,000 G G



4.8 Procurement Project Manager – Michael Knowles Project Start Date: TBC Project Completion Date: TBC Project Summary The objective of the procurement project will be to undertake a diagnostic and spend review to:

Identify potential areas for improvement through a spend diagnostic and a high-level value chain analysis– shortlisted based on high-level quantification of cost versus likely benefit

Complete a procurement maturity assessment

Produce a high-level assessment of the potential risk/ impact to Playford from the implementation of the short-listed opportunities, and

Develop a next steps ‘roadmap’ with indicative timing. In summary, the project will: 1. Perform a spend analysis to identify and assess opportunities 2. Review the supply value chain from requisition to delivery of services and payment to identify and assess opportunities 3. Develop a high level implementation plan including quick wins. 4. Identify areas for implementation in a second phase as required Project Update Consultants have been onsite and a report regarding the current state of play at the CoP has been generated. The report includes recommendations.

Next Steps The next steps of the project are to solidify the scope and generate an implementation plan.


A Needs

monitoring

R Requires

Action

Procurement

Project Reporting


%Completed Schedule


28,500 28,500 57,000 G 10% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES YES 200,000 100,000 200,000 G G



4.9 Technology Services Review Project Manager – Ben Cunningham Project Start Date: June 2012 Project Completion Date: September 2012 Project Summary Though the previous functions, services and structures of Technology Services team have served the organisation well in the past, the organisational restructure that was undertaken in December 2010 and the opportunities that it has presented has prompted the commencement of the Technology Services Review project. The aim of this project is to review the makeup of the Technology Services team and its role, functions and services it currently provides and what is required in the future. Although viewed as important corporate service functions within the City of Playford and an integral part of the organisation, there is a real need to provide greater visibility to what the new Technology Services team will do and to ensure that it provides a relevant and value adding service to our internal, external customers and stakeholders moving forward. Project Update Resources have been consolidated in the ICT team.

Next Steps TBA


A Needs

monitoring

R Requires

Action

Technology Services Review

Project Reporting


%Completed Schedule


0 12,500 25,000 G 99% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES YES 100,000 211,000 211,000 G G



4.10 iBOSS Project Manager – Nigel Fox Project Start Date: January 2011 Project Completion Date: January 2012 Project Summary The City of Playford is implementing an Integrated Business Software Solution(s) which has the functionality to effectively manage:

Financial Ledger

o General Financial Ledger

o Accounts Payable

o Procurement

o Bank reconciliation

o Budgeting

o Inventory and Stock Management

Contracts and Tendering

Work Order Job Costing

Invoice Management

Asset Accounting

Whole of life Asset Management System The investment in 2012/13 will deliver additional functionality to reduce manual processes, improved reporting and analysis, while integrating work order functions with HR and Payroll systems and processes. Project Update The software resulting from the iBOSS project [OneCouncil] went Live on December third. The date marked an important event for everyone in the organisation as the integrated software solution replaced a number of programs and applications successfully. In addition to the OneCouncil software, refinements to the business practices governing day to day operations within the CoP were implemented simultaneously and continue to be refined as the software is adopted. The sustained effort from all those involved to progress the project and implement the change is a reflection of the ambitious nature of the venture as it spanned almost every aspect of the CoP business model with the following modules being implemented;

Training/Performance Appraisal Recruitment Workorder - City Services Workorder - Fleet/Facilities Payroll Financial Procure to Pay Purchase Contract Management Contract Requisitioning Purchase Card Processing Asset Physical Lifecycle Project Management OH & S Self Service OH & S Grievance/Dispute Grievance/Dispute Self Service

Next Steps The project is being handed over to an operational status is a staged approach with the Project team remaining online to work through the adoption of the software into the business.


The project will be subject to a planned Project Review, looking into the aspects of the project from initial conception through to closeout, focusing on the delivery of intent and future developments.


A Needs

monitoring

R Requires

Action

iBOSS

Project Reporting

YTD Act YTD

Budget FY Budget

Budget Status

%Completed Schedule


99,500 99,500 199,000 G 90% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES YES 90,000 27,000 27,000 G G



4.11 Paperless Office Project Manager – Simon Reiter Project Start Date: December 2011 Project Completion Date: December 2012 Project Summary This project invests in Tablet technology for Elected Members & Managers by establishing a pilot program to test and assist in the development of electronic provisioning of Agendas, Minutes and Correspondence to the pilot members. • Document management for the chamber environment and meetings (agendas/minutes) • Note-taking • Time management and • General communication and correspondence. • WEB site and Email access Project Update A proposal has been put forward to expand the number of managers using “ipad” type devices with laptop functionality where the withdrawal of printing rights will allow for significant savings. Next Steps If the proposal is accepted, the reassignment of existing ipad devices to Councillors until the end of their life cycle will allow for the total replacement of their laptops with the renewal of ipad devices with a product of the same functionality as those proposed for managers. This will allow for the full benefits of Info Council project to be realised.


A Needs

monitoring

R Requires

Action

Paperless Office

Project Reporting

YTD Act YTD

Budget FY Budget

Budget Status

%Completed Schedule


12,500 12,500 25,000 G 90% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES YES 25,000 0 0 G G



4.12 InfoCouncil Project Manager – Christie Russell Project Start Date: June 2012 Project Completion Date: November 2012 Project Summary City of Playford Council is introducing an automated, integrated office productivity tool for the creation, publication and storage of agendas and minutes – InfoCouncil. The InfoCouncil project is expected to be implemented by the end of November 2012. The new system will improve the report writing method and agenda compilation process currently in place as well as improve the process for an accurate record the minutes for Council and Committee meetings by improving the current minute taking process. Project Update The InfoCouncil system is currently undertaking live testing to create reports, agendas, minutes and actions. The first analysis with regards to the efficacy of the software has been conducted with the results made available to the E&E group. Next Steps In moving forward, the project will work in with Management and Governance to develop improvement processes for new system, and ensure that measurements are continued to be recorded.


A Needs

monitoring

R Requires

Action

Info Council

Project Reporting

YTD Act YTD

Budget FY Budget

Budget Status

%Completed Schedule


41,250 27,500 55,000 G 80% G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES YES 25,000 0 25,000 G G



4.13 Asset Stores/Fleet Project Manager – Jonathan Roberts Project Start Date: June 2012 Project Completion Date: September 2012 Project Summary In the 2011/12 FY, a major review was conducted of the stock & Inventory held at the Playford Operations Centre. This review identified many possibilities for improved stock management, which would increase the efficiency and effectiveness of the store, reduce the waste and obsolescence of stock, rationalise the stock held in the store and on site in general and improve purchasing procedures. Most of the recommendations made, were accepted and approved by the steering committee and the purpose of this project is to implement the approved recommendations. Project Update A review of all inventory items in the store has been completed. This has resulted in the write down of 70% of obsolete stock and a reduction of $39,000 of obsolete or damaged stock. Next Steps The inventory will be reviewed in comparison with the previous twelve months’ worth of data regarding stocks and stock movements, which will assist in the generation and implementation of SLA's for teams that use inventory store items.


A Needs

monitoring

R Requires

Action

YTD Act YTD

Budget FY Budget

Budget Status

%Completed Schedule


6250 6250 25,000 G 50 G G

Benefits Reporting


Benefit Profile

Complete



Measurement Status



YES NO 71,000 0 71,000 G G



5 Program Governance The internal governance structure, (figure 4.0) is in place to provide strong accountability and ensure plans and progress is scrutinised by individuals that are not directly accountable for the delivery of the individual projects. This structure has proven to be beneficial and effective to date. This is to be further strengthened by the role of an independent audit of savings, benefits and progress. Plans are being developed for engagement of a program audit role for the 2

nd and 3

rd quarter 2012/13.

Based on their responsibilities to review and make recommendations to Council on finances, comment on risks and financial sustainability, and other significant financial matters relating to the Long Term Financial Plan; The Corporate Governance Committee has provided advice, input and feedback on the benefits realisation framework and overall program mechanics to the program steering committee. The committee continues to express their comfort with the strategic direction and operations within the program.

Figure 4.0 Efficiency and Effectiveness Governance Structure September 2012

Service Standards

Corporate Service Reform

Procurement

iBOSS

Program Manager: Tim Vonderwall

Core Program Team

Optimising Service Delivery

Steering Committee: • Chair: Shaun

Kennedy

• Effrim Volkoff • Andrew Wroniak

• Sam Green

• Mal Hemmerling

• Tim Vonderwall

Council

Playford Executive Group

Steering Committee Chair: Shaun Kennedy

Corporate Governance Committee

Project Leads


Figure 5.0 provides statistics for the usage of the Governance mechanisms in 2012/13 Figure 5.0

Governance Forum Number of Meetings (Second Quarter)

Number of Meetings (Full Year)

Efficiency and Effectiveness Steering Committee

5 11

Efficiency and Effectiveness Corporate Governance Committee Updates

1 3

To deliver the targets outlined in the 5 year plan, and to manage the organisational transformation, a number of core frameworks and disciplines are under development. These initiatives are not necessarily projects, rather essential business tools and methodologies to ensure success of the program, and ongoing capacity of the organisation to continually improve. Therefore organisational input, engagement and training are core objectives to ensure these methodologies are well embedded into the organisation.

6 Process Improvement Methodology The City of Playford Process Improvement Methodology (PIM) has been developed to support the GoMad project and is a step by step approach to undertaking improvements of processes and practices within the City of Playford Council. Improvements may be small incremental changes or larger ‘eureka’ ideas that need to be implemented. The process methodology creates a methodology loosely based on other forms of process improvement, tailored for the City of Playford Council. Some extra steps have been added and some removed to allow justification and monitoring of any process changes. Only tools that are simple to use and deliver value based outputs are part of the published methodology, other tools may be used by specialists from time to time and the methodology will not rule out the use of these tools. The fundamentals of the PIM are being implemented and refined during the GoMAD training sessions where users are exposed to the methodology with the initial purpose of identifying opportunities for improvement within an individual area.

7 Change Management Strategy A Change Management Strategy has been tailored to support change efforts at the City of Playford. This strategy will ensure that the initiatives undertaken by the E&E Team will be culturally embedded into the business by addressing the cultural side of change and project implementation. The aim of this strategy is to foster an organisational culture that embraces change and enables staff to be the main driver for continuous improvement and organisational excellence. By channelling change-related reactions such as uncertainty, cynicism and conflict, the change management strategy is designed to stimulate employee engagement and to reduce resistance towards change. Tailored measures will track and capture the shift in organisational culture and behaviour. It is anticipated that the efforts in the area of change management will not only lead to the emotional wellbeing of the workforce in periods of change, but will also be conducive to initiating process improvements. It is anticipated that that tangible and valuable cost savings emerging from change management efforts can be realised over the medium to long term. In particular, the Change Management Strategy outlines the overarching relevance and implications relating to communication, leadership and measurement, all of which are critical to the successful implementation of the change management strategy. These principles and recommendations are then broken down to address the required change management initiatives for each project in which the E&E Team is currently involved. It is anticipated that once completed, the Change Management Strategy can


be used as a standing resource for all leaders and staff to support any future change initiative. The initial focus of the Change Management Strategy centres on embedding standardised communications plans.

8 Project Management Framework The underlying principles of project management have been used to illustrate a skeletal framework from which example templates have been generated. These templates have been used to facilitate several discussions centred on current project management requirements with primary regards to CoA, COAG, LGA and Corporate Governance Committee stipulations. The tools generated through the Project Management Review are being integrated through financial and schedule tracking within the assets department. Applicability of the templates and tools relevant to each type of project undertaken at CoP have been submitted for review with further refinement anticipated as the tools are implemented. Discussions are currently underway with regards to project governance being integrated through the risk management policies. The review of risk management policies is anticipated to result in the initial application of standardised project management techniques and act as a staging point for standardisation

9 Independent Audit As reported in the first quarter 2012/13, a process to appoint an independent auditor of the Efficiency and Effectiveness Program has begun. At this stage, the organisation has approached the market, received the offers from the industry and is evaluating the submissions to appoint a supplier. The audit will provide reports in an executive summary format based on periodic data illustrating the following key areas;

Program Governance

Change Management/Transition

Program Management


Program Reporting

Program Planning, both annual and strategic.

Program Controls

Suggested areas of improvement

The report shall be used to provide additional assurance and performance improvement areas for the program team, organisation as whole and key stakeholders. The report and recommendations audience will be the following;

City of Playford Elected Members and Public

Corporate Governance Committee, (Audit Committee)

City of Playford Executive

The Efficiency and Effectiveness team are in preparation to engage an independent audit of the program management, governance and benefits realisation. Timing of the audit is planned for the 3

rd quarter

2012/13.

10 2012/13 Program Financial Update Projects in the 2012/13 financial year will be delivered by business units with support from a core specialist Efficiency and Effectiveness team. Additional specialist resources will be contracted in where required. However the overall approach is aimed at the organisation to build capacity for continuous improvement.


A breakdown of project costs per category can be found in Appendix figure 3.0. The table in Figure 3.0 focuses on year one investment figures. Years 2013/14 onwards projects are yet to be finalised, although it is expected most of the investment and savings will stem from GoMad project implementation; therefore the majority of future target investment/saving figures have been attributed to that project at this point in time. As per the reporting schedule above, project and program progress against identified targets will be provided on a quarterly basis. Although the investment vs. return target figures are equal in the 2012/13 year, from July 2013 onwards, any net efficiency and effectiveness gains will be presented to Council in a report as part of the annual budget process. Through this reporting process, options for utilising the efficiency savings or effectiveness gains will be addressed.


5.2 External Audit C orrespondence

+

5.2 EXTERNAL AUDIT CORRESPONDENCE Responsible Executive Member: Andrew Wroniak Contact Person: Jeff Jones See Attachment No: 1. External Audit Correspondence Why is this matter before the Council or Committee? Matters for Information Purpose To inform the committee of matters raised by Councils external auditors Dean Newbery & Partners as a result of the completion of the Balance Date Audit for the Financial Year Ended 30 June 2012. Recommendati on

STAFF RECOMMENDATION That the correspondence from Council’s external auditors Dean Newbery & Partners be noted.

Relevance to Council Plan Objective 4.1 Decision making in the best interests of the City Relevance to Public Consultation Policy There is no requirement to consult with the community in respect to this issue. Background As part of the external audit services provided by Dean Newbery & Partners, after each audit visit a letter is provided to Council. The attached letter dated 10 December 2012 details the outcome of the audit for each of the functions audited. Current Situation Council maintains a register of action items as a result of the external audit titled “Audit Response – Current and Outstanding Action Table”. An update of these action items was provided for the Corporate Governance Committee meeting on 4 December 2012. Future Action Council will provide a written response to Dean Newbery & Partners letter addressing the issues raised. A copy of Council’s response and the updated “Current and Outstanding Action Table” including actions taken by Council staff will be provided at a future Corporate Governance Committee.

External Audit Correspondence 53 Item 5.2 - Attachment 1

External Audit C orrespondence

02 5 February 2013 Corporate Governance Committee Agenda.PDF

Documents

Transcript of 02 5 February 2013 Corporate Governance Committee Agenda.PDF