Adopted Report Governance Administration & Finance ... · Cr AJD Bell Cr GJ Betts ... 4 That...

Vision Inspired by lifestyle. Driven by Opportunity

669

Adopted Report of the

Governance Administration & Finance Committee Meeting

held

Thursday, 14 November 2013

at

09:00 am

Gold Coast City Council Chambers 135 Bundall Road Surfers Paradise

669th Council Meeting 19 November 2013 2 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report

Index

Adopted Report

Governance Administration & Finance Committee Meeting

Thursday, 14 November 2013

Item Direct. File Page Subject

1 CEO LG426/1112(P3) 5 Connecting Southern Gold Coast Ltd – Bi-Annual Performance Review

2 OS LG314/690/13/006(P3) 32 Contract No.LG314/690/13/006 - Maintenance Of Fire Protection Systems And Equipment

3 OS LG314/411/14/078(P1) 41 Contract No LG314/411/14/078 - Leachate Management Services At Stapylton Landfill: Expression Of Interest

4 OS LG314/411/14/071(P1) 47 Contract No LG314/411/14/071 Collection And Disposal Of Household Hazardous Waste From Two Council Waste And Recycling Centres

5 CEO LG449/756/02(P3) 54 Draft City Of Gold Coast Annual Report 2012-13

6 CEO LG115/1190/04/14/CF(P2) 64 Audit Committee Meeting – 24 October 2013

KEY:

CEO - Chief Executive Officer CMS - Community Services GCW - Gold Coast Water EDMP - Economic Development & Major Projects OS - Organisational Services ES - Engineering Services PET - Planning Environment & Transport

669th Council Meeting 19 November 2013 3 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ADOPTION BY COUNCIL 19 NOVEMBER 2013 ADOPTION OF GOVERNANCE, ADMINISTRATION & FINANCE COMMITTEE REPORT RESOLUTION G13.1119.022 Moved Cr Owen-Jones Seconded Cr Tozer That the Report of the Governance, Administration & Finance Committee’s Recommendations of Thursday, 14 November 2013, numbered GA13.1114.001 to GA13.1114.006, be adopted with the exception of:- Recommendation Numbers GA13.1114.002 and

GA13.1114.006 which were specifically resolved.

CARRIED ATTENDANCE Cr W Owen-Jones (Chairperson) Cr GM Tozer Cr CM Caldwell Cr TC Gilmore Cr AJD Bell Cr GJ Betts Visitor

Cr CL Robbins Mr AJ McCabe Chief Operating Officer Mr G Potter Director Organisational Services Mr J Blair Manager Corporate Finance (part) Ms S Wilton Manager Corporate Planning & Performance (part) Mr S Bowden Coordinator Controlled Entities & Community Grants (part) APOLOGIES The apology of Cr Crichlow be noted. PRESENTATIONS 9:00am Item 1 Connecting Southern Gold Coast Ltd – Bi-Annual Performance Review

Mr Michael Tree, Chairperson & Mr P Doggett, Chief Executive Officer

669th Council Meeting 19 November 2013 4 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report The information below is extracted from the Procurement Policy and Guidelines. Refer to the Policy and Guidelines for complete details.

QUOTATIONS TO LOCAL BUSINESSES FOR CONTRACTS WORTH LESS THAN $200,000 (EXCLUDING GST)

If the best value pricing submission is not from a Gold Coast business or business with a branch office on the Gold Coast and there is a Gold Coast business or business with a branch office on the Gold Coast directly employing a minimum of five FTEs with a pricing submission within 15 percent of the best value pricing submission, then the Gold Coast business or business with a branch office on the Gold Coast directly employing a minimum of five FTEs submission will be deemed to be more advantageous and this supplier chosen.

TENDERS FOR CONTRACTS WORTH MORE THAN $200,000 (EXCLUDING GST)

Local Content Scoring for Tenders

Weighting % Score Description

15 100% 15 Developing or established Gold Coast business

15 40% 6 Branch office on the Gold Coast directly employing a minimum of 5 FTEs

15 33% 5 Branch office on the Gold Coast, established for a minimum of 12 months, directly employing less than 5 FTEs

15 27% 4 Adjacent local government (Logan, Scenic Rim, Redland or Tweed Shire) business

15 13% 2 Queensland business 15 7% 1 Interstate business 15 0% 0 Overseas business

Gold Coast Business Excellence Awards Scoring for Tenders Weighting % Score Description

2 100% 2 A winner of the Gold Coast Business Awards within the past 4 calendar years

2 50% 1 A finalist of the Gold Coast Business Awards within the past 4 calendar years

2 0% 0 All other businesses

TENDERS LEADING TO CONTRACTS WITH AN ANNUAL VALUE BETWEEN $200,000 AND $600,000 (EXCLUDING GST)

Council will provide a 15 percent pricing advantage to Gold Coast businesses or businesses with a branch office on the Gold Coast directly employing a minimum of five FTEs.

669th Council Meeting 19 November 2013 5 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 1 OFFICE OF THE CHIEF EXECUTIVE OFFICER CONNECTING SOUTHERN GOLD COAST LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/1112(P3) Refer 22 page attachment: Attachment 1 - Bi-annual Performance Report 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT The purpose of this report is to present the Bi-annual Performance Report for Connecting Southern Gold Coast Limited (CSGC) for the six month period ended 30 June 2013. The Chairperson (Mr Michael Tree) and new CEO (Mr Peter Doggett) will be in attendance to present the Company’s report. 4 PREVIOUS RESOLUTIONS Ex minute GA13.0423.003: 1 That Council notes the Connecting Southern Gold Coast Ltd bi-annual performance

report for the half year ended 31 December 2012.

2 That Council confirms the requirement for Connecting Southern Gold Coast Ltd to present a performance review to Governance, Administration and Finance Committee bi-annually and also provide a presentation as part of the annual budget process.

3 That consideration be given to quarterly funding for the Connecting Southern Gold Coast Ltd as part of the current Service Level Agreement review.

4 That Council notes that a Destination Management Plan is currently being prepared by Council, in consultation with Gold Coast Tourism, and that an extension of the Service Agreement to June 2016 be considered following adoption of the Destination Management Plan.

Ex minute ED13.1017.003 (part): 3 That Council extends the term of its current Service Agreements with Surfers Paradise

Alliance Ltd (SPAL), Broadbeach Alliance Ltd (BAL) and Connecting Southern Gold Coast Ltd (CSGC) by one year to 30 June 2015 with authority being delegated to the Chief Executive Officer to negotiate and execute the Agreements on behalf of Council, to allow for recommendations from the Destination Management Plan to be realised.

5 DISCUSSION 5.1 Background Council contracts with Connecting Southern Gold Coast Limited (CSGC) to manage the provision of marketing and promotional activities in the Surfers Paradise precinct. Council established CSGC in 2008. CSGC is classified as a “public sector controlled entity” under the Auditor-General Act 2009.

669th Council Meeting 19 November 2013 6 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 1 (Continued) CONNECTING SOUTHERN GOLD COAST LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/1112(P3) The current service agreement concludes on 30 June 2015. The agreement provides for CSGC to submit performance reports to Council (Governance Administration & Finance Committee) on a biannual basis in March and October. CSGC’s performance was last reviewed by the Committee at its meeting on 23 April 2013. 5.2 Review of Performance CSGC’s Performance Report submission was received on 11 October 2013 (see Attachment 1). This report provides key corporate governance and financial performance information within the reporting template developed by officers for use by all controlled entities (see Attachment 1). The report contains the following sections: Corporate Governance Activity Summaries and KPI’s Financial Management Corporate Governance CSGC is working towards implementing those new elements of the governance framework to bring it into line with the other controlled entities (e.g. establishment of an appropriate risk management framework). It is noted that the Board has reviewed and amended CSGC’s Vision and Mission statements. It is also noted that the Board is endeavouring to source suitably skilled local businesspersons to recommend as replacement directors for the two vacant directorships. It is considered that CSGC is satisfactorily meeting its obligations under the Service Agreement. Activity Summaries and KPI’s CSGC has provided a summary of key projects and activities undertaken during the review period as well as a summary of key projects and activities planned for the next period (see pages 4-9 of the Attachment). Economic Development & Major Projects Directorate (Executive Coordinator Economic Development) has provided guidance to CSGC with the development of KPI’s that align with Council’s Economic Development Strategy. The Executive Coordinator Economic Development has reviewed the information provided by CSGC and advised as follows:

CSGC has effectively delivered against the included KPI’s, particularly in the festivals and events arenas, with positive outcomes for the local community.

Financial Management The Corporate Financial Accountant has assessed the information provided by CSGC and advised as follows:

I have reviewed the report provided by CSGC for the year ended 30 June 2013 and there are no major financial issues to note.

669th Council Meeting 19 November 2013 7 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 1 (Continued) CONNECTING SOUTHERN GOLD COAST LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/1112(P3) 6 ALIGNMENT TO BOLD FUTURE VISION, CORPORATE PLAN, OPERATIONAL

PLAN Corporate Plan 2009-2014 The activities undertaken by CSGC contribute to the following Key Focus Areas: 5 A city with a thriving economy

5.4. The lifestyle and opportunities are seen as advantages 5.5. Regional collaboration and pro-active representation enhance the city

Operational Plan There are no specific strategies relating to CSGC contained in 2013-14 Operational Plan. 7 FUNDING AND RESOURCING REQUIREMENTS Not applicable. 8 RISK MANAGEMENT The funding of CSGC does not relate directly to any of the Corporate Risks. However it does relate to Directorate Risk No. CO000410 below, which is currently rated as Low 48 under Council’s Risk Management methodology.

Adverse impact on Council through inappropriate/illegal actions of any of Council's controlled entities for which the OCEO is responsible (ie, Gold Coast Arts Centre Pty Ltd, Surfers Paradise Alliance Ltd, Broadbeach Alliance Ltd and Connecting Southern Gold Coast Ltd)

The bi-annual performance review process is one of the mitigations for this risk. 9 STATUTORY MATTERS Corporations Act 2001 CSGC is registered with the Australian Securities & Investments Commission as a company limited by guarantee. Its operations are governed by the Corporations Act 2001. Auditor-General Act 2009 Under the Auditor-General Act 2009, CSGC is classified as a “public sector controlled entity”. Section 5 of the Act states:

5 What is a controlled entity (1) An entity is a controlled entity if it is subject to the control of 1 or more of the following (the controlling entity)—

(a) a department; (b) a local government; (c) a statutory body; (d) a GOC; (e) another entity subject to the control of 1 or more of the entities mentioned in paragraphs (a) to (d).

669th Council Meeting 19 November 2013 8 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 1 (Continued) CONNECTING SOUTHERN GOLD COAST LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/1112(P3)

(2) In this section— control means the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable the other entity to operate with it in pursuing the objectives of the controlling entity.

With respect to Council’s “control” of CSGC, Council: is the sole member of the Company and therefore has control over its constitution as well

as the appointment of the directors and chairperson has control over the Company’s specific role and responsibilities via the service

agreement provides annual funding in accordance with the service agreement regularly reviews the Company’s performance against the service agreement including

the strategic direction of the Company. The Act requires that Queensland Audit Office be appointed as the Company’s Auditor. Compensation & Rehabilitation Act 2003 CSGC is also classified as a “Related Body Corporate” of Council under this Act and the Corporations Act 2001 and, as such, Council must provide workers’ compensation coverage to CSGC. 10 COUNCIL POLICIES Not applicable 11 DELEGATIONS Council has delegated authority to the Chief Executive Officer to determine all matters within the responsibility of Council as the sole member of the Company – with the exception of the determination of annual funding and review of the entity’s performance. 12 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted

Directorate or Organisation

Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Joanne Cullen, Corporate Finance Accountant

Office of the CEO (Corporate Finance)

Yes

Di Dixon, Executive Coordinator Economic Development

Economic Development & Major Projects

Yes

13 STAKEHOLDER IMPACTS The CSGC Board and Council, being the sole Member of the Company, are the key stakeholders in terms of CSGC’s performance in the achievement of the objects detailed in CSGC’s Constitution, the obligations detailed in its service agreement with Council and the agreed KPI’s.

669th Council Meeting 19 November 2013 9 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 1 (Continued) CONNECTING SOUTHERN GOLD COAST LTD – BI-ANNUAL PERFORMANCE REVIEW LG426/1112(P3) The CSGC Board is broadly representative of the stakeholders in the southern Gold Coast region. CSGC works cooperatively and in close consultation with Gold Coast Tourism on an ongoing basis in accordance with the Memorandum of Understanding established between the two entities. 14 TIMING Council’s Service Agreement with CSGC requires Council to review CSGC’s performance on a bi-annual basis. The next performance review is due in March 2014 (for the six month period ended 31 December 2013). 15 CONCLUSION It is considered that CSGC is satisfactorily performing its role and responsibilities under the Service Agreement and meeting the objects for which it was established. CSGC is transitioning satisfactorily to a governance framework consistent with the other precinct marketing entities. 16 RECOMMENDATION It is recommended that Council resolves as follows: That Council notes the Connecting Southern Gold Coast Ltd bi-annual performance report for the half year ended 30 June 2013.

Author: Authorised by:

Stephen Bowden Dale Dickson Coordinator Controlled Entities & Community Grants Chief Executive Officer 31 October 2013 Document # 41675605 COMMITTEE RECOMMENDATION GA13.1114.001 moved Cr Tozer seconded Cr Betts That Council notes the Connecting Southern Gold Coast Ltd bi-annual performance report for the half year ended 30 June 2013.

CARRIED

CONNECTING SOUTHERN GOLD COAST

CONTROLLED ENTITY BI-ANNUAL PERFORMANCE REPORT

FOR THE TWELVE MONTH PERIOD ENDED : 30 JUNE 2013

CONTENTS

SECTION PAGE

CORPORATE GOVERNANCE 1 1

ACTIVITY SUMMARIES & KPI'S 2 Feb-14

FINANCIAL MANAGEMENT 3 15-21

669th Council Meeting 19 November 2013 Governance Administration & Finance Committee 14 November 2013

10 Adopted Report

1 1 CORP GOV

SECTION 1 - CORPORATE GOVERNANCE

1.1 VISION

1.2 MISSION

1.3 MEMBERSHIP OF BOARDName of Director Organisation Date Appointed ResignedMichael Tree The Pines Shopping Centre 16/04/2012 Continuing

Murray d'Almeida Bartercard Australia 4/02/2009 25 September 2013

Kristin Zeise PEL Group 4/02/2009 31 July 2013

Neal Ryan Southern Cross University 23/10/2008 Continuing

John Rankin Realway Southern Beaches 16/04/2012 Continuing

Robyn Keenan One Step Further 16/04/2012 Continuing

1.4 BOARD COMPETENCYNumber of Board meetings held during the reporting period

The Board has a process in place at meetings to manage conflicts of interest

The Board has a process in place to monitor compliance with the Director Code of Conduct

The Board last reviewed the CEO's performance on

The Board is due to conduct the next review of the CEO's performance on

The Company has a current strategic plan

This plan has been endorsed by Council (Current Version - 2009)

Where the Company does not have such a plan, the Board is arranging for one to be developed by

The Company has an annual business plan (Current Version - 2009)

If not, the Board is arranging for such plan to be developed and endorsed by

The Board has established an Audit/Risk Committee

This Committee last met on

This Committee is due to next meet on

The Board has ensured that documented internal controls are in place

The Board is due to review these policies on

The Board last reviewed this register on

The next review of this register is scheduled for

The Board has ensured an employee performance management system is in place

The Board has implemented an appropriate board performance review process

The next review is due to take place on

1.5 STAFF DETAILSNumber of FTE positions employed by the entity as at end of reporting period (Jul'12-Jun'13)

Amount of annual budget amount allocated to these positions

Percentage of annual budget allocated to these positions

A region where environmentally-sustainable, economic development has connected the abundant natural environment to residents, businesses and tourists, so as to enrich their quality of life.

Our mission is to enhance the business and investment environment and infrastructure of the Southern Gold Coast by encouraging local business platforms, driving future growth and initiatives, and creating opportunities for economic prosperity in an environmentally-sustainable and responsible manner.

4

10/12/2012

10/12/2013

30/09/2013

Yes

Yes

Yes

No

Dec-13

See Attached

12/02/2014

30/09/2013

NA

Dec-13

Mar-13

Yes

Yes

NA

9/04/2013

Yes

Yes

The Board has provided Council with a copy of any observation or similar reports issued to the Company by the Qld Audit Office (or its nominated contractor) - for onforwarding to Council's Audit Committee for consideration

2.57

$329,961

39.23%

The Board has ensured that a policy manual has been compiled that contains policies relating to risk management, workplace health & safety, people management and procurement (as a minimum)

Yes

The Board has ensured that a risk register has been compiled (comprising both business and workplace health & safety risks)Disaster Recovery Plan includes policy on Risk Register and Risk Assessments

Yes

Yes

The Board acknowledges that it needs to periodically review the effectiveness of the Company's corporate governance framework. The next review is due to be conducted on


11 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

SE

CT

ION

2 -

AC

TIV

ITY

SU

MM

AR

IES

AN

D K

PI's

INTR

ODUC

TION

Durin

g th

e re

view

per

iod

CSGC

has

suc

cess

fully

lifte

d th

e ba

r with

a n

umbe

r of f

resh

act

iviti

es a

nd in

itiat

ives

und

erta

ken.

Fo

llow

ing

the

com

men

cem

ent o

f new

CEO

Pet

er D

ogge

tt m

id D

ecem

ber 2

012,

the

orga

nisa

tion

unde

rtook

a fr

esh

stra

tegi

c di

rect

ion

with

gre

ater

eng

agem

ent i

n th

e re

gion

with

indi

vidu

al

stak

ehol

ders

& s

take

hold

ers

grou

ps; i

mpr

oved

med

ia a

war

enes

s &

soug

ht to

reta

in &

gro

w C

SGC'

s al

read

y ex

tens

ive

Fest

ival

s an

d Ev

ents

por

tfolio

.

We

have

revi

site

d bo

th o

ur V

isio

n an

d M

issi

on.

The

Visi

on"T

he S

ou

thern

Go

ld C

oa

st -

wh

ere

lif

est

yle a

ttra

cts

an

d s

ust

ain

s b

usi

ness

, to

uri

sm, cre

ati

ve a

rts

an

d e

ven

ts".

Our r

efoc

usse

d M

issi

on is

"To a

ct

as

a f

acilit

ato

r a

nd

in

cu

bato

r of

loca

l b

usi

ness

pla

tform

s, d

rivi

ng

fu

ture

gro

wth

an

d in

itia

tive

s, a

nd

cre

ati

ng

op

port

un

itie

s fo

r eco

no

mic

deve

lop

men

t in

an

en

viro

nm

en

tally

sust

ain

ab

le a

nd

resp

on

sib

le m

an

ner.

"

New

goa

ls in

clud

ed:

Up fo

r Chr

istm

as &

Tou

r de

Valle

y)

- To

uris

m a

nd E

vent

s Qu

eens

land

- Qu

eens

land

Tou

rism

Indu

stry

Cou

ncil

- Go

ld C

oast

Tou

rism

- De

stin

atio

n Tw

eed

We

are

plea

sed

to re

port

all t

hese

'are

as o

f inf

luen

ce' h

ave

com

men

ced

in th

e re

gion

and

goa

ls a

re b

eing

met

. CS

GC is

'con

nect

ing'

effe

ctiv

ely!

Pa

ge 2


12 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

2.1

S

UM

MA

RY

OF

KE

Y P

RO

JE

CT

S &

AC

TIV

ITIE

S U

ND

ER

TA

KE

N

lack

of a

ny e

ntrie

s in

pre

viou

s ye

ars.

have

act

ed in

thei

s sp

ace

for 8

yea

rs.

Mal

aysi

a an

d In

done

sia

to th

e Go

ld C

oast

. Stil

l a w

ork

in p

rogr

ess.

This

has

pro

ved

succ

essf

ul in

lifti

ng th

e ov

eral

l im

age

& ex

posu

re o

f our

sub

regi

on.

boar

d. T

he la

tter s

ix m

onth

s of

the

year

has

see

n a

perio

d of

refo

cus

and

enth

usia

stic

re-e

ngag

emen

t by

both

the

Boar

d an

d M

anag

emen

t.Ne

w in

tern

al s

yste

ms

impl

emen

ted;

a re

visi

t to

the

busi

ness

mod

el, r

evie

w o

f stra

tegi

c di

rect

ion

and

incr

ease

d en

gage

men

t on

all l

evel

s of

the

orga

nisa

tion.

Page

3


13 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

over

four

day

s. T

he e

vent

attr

acts

tour

who

lesa

lers

and

reta

ilers

from

all

corn

ers

of th

e gl

obe.

Sou

ther

n Go

ld C

oast

ope

rato

rs w

ere

host

ed b

y CE

O Pe

ter D

ogge

tt. T

hese

incl

uded

:

We

belie

ve C

SGC

can

clai

m th

e m

antle

as

bein

g th

e hu

b of

fest

ival

s an

d ev

ents

on

the

Gold

Coa

st. I

n th

e pe

riod

unde

r rev

iew

we

have

bee

n ar

e ar

e pa

rticu

larly

act

ive

with

mai

ntai

ning

but

bu

ildin

g ou

r por

tfolio

:

CSGC

bel

ieve

s ou

r fes

tival

s an

d ev

ents

com

plim

ent t

he n

atur

al a

ttrac

tions

of t

he lo

cal e

nviro

nmen

t, an

d ou

r new

focu

s is

not

onl

y to

mai

ntai

n ev

ents

but

to d

evel

op g

reat

er d

iver

sity

in o

ur

This

initi

ativ

e ca

n cl

early

be

take

n up

as

a w

hole

of c

ity a

ppro

ach

mov

ing

forw

ard.


14 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

2.2

S

UM

MA

RY

OF

KE

Y P

RO

JE

CT

S &

AC

TIV

ITIE

S P

LA

NN

ED

FO

R

NE

XT

RE

VIE

W P

ER

IOD

The

futu

re in

tent

of t

he B

oard

and

Man

agem

ent i

s ve

ry c

lear

mov

ing

forw

ard.

a)

Dev

elop

the

Sout

hern

Gol

d Co

ast d

estin

atio

n th

roug

h fre

sh in

itiat

ives

and

gre

ater

pub

licity

aw

aren

ess

i.e. b

uild

the

bran

d e.

g. C

olla

tera

l rol

l-out

incl

udin

g si

gnag

e; p

ublic

ity; p

ublic

spe

akin

g en

gage

men

ts e

tc.

− O

pera

on

the

Beac

h −

Sw

ell S

culp

ture

Fes

tival

c) In

crea

se th

e to

uris

m fo

otpr

int i

n th

e re

gion

by

enco

urag

ing

prod

uct t

o di

vers

ify in

thei

r mar

ketin

g w

ith e

ither

new

mar

kets

and

new

seg

men

ts

e) B

ring

the

dive

rsifi

ed e

lem

ents

of t

he lo

cal t

ouris

m in

dust

ry to

geth

er o

n a

regu

lar b

asis

via

edu

catio

nal w

orks

hops

and

net

wor

king

opp

ortu

nitie

s

Coas

t dur

ing

the

lead

up

to th

e 20

18 G

old

Coas

t Com

mon

wea

lth G

ames

.

Acti

va

tion

:

Forw

ard

plan

ning

is w

ell a

dvan

ced

in th

e ab

ove

budg

et. W

e're

com

mitt

ed to

add

ing

stre

et b

anne

rs to

repl

ace

exis

ting,

fade

d ba

nner

s. P

ublic

ity ro

llout

con

tinue

s to

pro

mot

e de

stin

atio

n or

key

eve

nts,

fest

ival

s, a

nd lo

cal i

ssue

s.


15 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

Fest

iva

ls a

nd

Eve

nts

& Sw

ell S

culp

ture

Fes

tival

org

anis

ers

to e

nsur

e a

spre

ad o

f airl

ine

partn

ers

is s

ecur

ed, &

not

ove

rlapp

ing.

pres

ente

r at g

reat

sav

ings

to th

em, s

houl

d th

e co

ncep

t be

acce

pted

by

them

.

To

uri

sm

Ma

rketi

ng

.

wor

king

with

Tou

rism

& E

vent

s Qu

eens

land

and

Gol

d Co

ast T

ouris

m w

orks

hops

and

edu

catio

nal t

rade

& m

edia

fam

ils.

This

sho

uld

prov

ide

a su

itabl

e op

portu

nitie

s fo

r the

ope

rato

rs to

bet

ter u

nder

stan

d ex

istin

g an

d em

ergi

ng m

arke

ts, m

arke

t seg

men

ts &

the

dist

ribut

ion

syst

em.

Com

mu

nit

y En

gag

em

en

t.

Page

6


16 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

Ind

ust

ry U

nif

icati

on

Such

a S

GC b

rand

ed c

lub

wou

ld p

rovi

de e

ffect

ive

bran

ding

and

loca

l ind

ustry

net

wor

king

opp

ortu

nitie

s, a

lthou

gh in

ters

tate

and

inte

rnat

iona

l Ska

l gue

sts

wou

ld b

e lik

ely

to v

isit

for m

onth

ly

brea

kfas

ts a

nd re

late

d ac

tiviti

es.

The

aim

is to

laun

ch th

e Cl

ub in

the

new

yea

r with

30

mem

bers

from

the

loca

l reg

ion.

Thi

s in

itiat

ive

fits

our m

odel

of f

acili

tatio

n &

incu

batio

n.

Ed

uca

tion

al a

cti

vity

Burs

ary

with

SCU

in th

e m

onth

s ah

ead.

Tra

nsp

ort

Access

Broa

dbea

ch.

We

belie

ve e

ffect

ive

trans

port

linka

ges

to a

nd fr

om th

e So

uthe

rn G

old

Coas

t are

inte

gral

to it

s gr

owth

pot

entia

l and

dev

elop

men

t - c

erta

inly

with

tour

ists

& s

tude

nts.


17 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

Cu

sto

mer

Serv

ice P

rog

ram

reco

gnis

ing

exce

llenc

e in

cus

tom

er s

ervi

ce. T

his

prog

ram

will

enc

oura

ge to

uris

ts a

nd lo

cals

like

to n

omin

ate

thos

e in

our

bro

ader

hos

pita

lity

indu

stry

for r

ecog

nitio

n of

exc

eptio

nal c

usto

mer

Con

clu

sion

Page

8


18 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

2.3

S

TR

AT

EG

IC &

OP

ER

AT

ION

AL

KP

I's

ED

S S

tra

teg

ic O

utc

om

eC

SG

C A

cti

viti

es

Mea

sure

ab

le K

PIs

Ou

tcom

es f

or

full y

ea

r to

30/6

/13

Mai

ntai

n, d

evel

op &

upd

ate:

− W

ebsi

te∙ T

raff

ic

∙ Con

ten

t

∙ Web

site

upd

ated

for e

vent

s an

d fe

stiv

als

and

regu

lar b

log

upda

tes

− o

ffice

and

tech

nolo

gy;

desi

gn a

nd p

rintin

g ca

pabi

lity

with

a n

ew p

rinte

r and

cre

ativ

e so

ftwar

e.

addi

tiona

l hot

des

ks.

− D

ata

base

of p

ress

and

trad

ers

∙ Med

ia d

atab

ase:

con

stan

tly u

pdat

ed

ongo

ing

due

to c

ontra

ctor

ava

ilabi

lity.

− P

rodu

ce b

i-mon

thly

e-

new

s, a

nnou

ncem

ents

and

ev

ent i

nvite

s;

Ha

ve t

he S

GC

lif

esty

le

an

d o

pp

ort

un

itie

s se

en

as

ad

van

tag

es.

Reg

ion

al C

olla

bora

tion

an

d p

ro-a

cti

ve

rep

rese

nta

tio

n e

nh

an

ce

the C

ity

(in

sert

ta

ble

of

ag

ree

d K

PI's

and

ass

ocia

ted

achi

evem

ent)

Com

mu

nic

ati

on

s:

Mar

ket a

nd p

rom

ote

the

SGC

as a

pla

ce to

hol

iday

,

capa

city

and

inve

st;

of e

vent

s m

aint

enan

ce; n

ew fe

atur

e pa

ges;

SEO

etc

.)

busi

ness

es a

nd th

ird p

artie

s

chan

ges

to m

ake

impr

ovem

ents

to p

erfo

rman

ce

busi

ness

car

ds)

med

ia re

leas

es d

ispa

tch;

mar

ketin

g ad

vice

& c

onta

cts

& in

-kin

d su

ppor

t ser

vice

s.

S

trict

ly C

SGC

rela

ted

activ

ities


19 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

− P

rovi

de o

ffice

sup

port

serv

ices

: e.

g. ty

ping

; com

mun

icat

ions

; su

itabl

e co

mm

erci

al c

onta

cts,

re

port

desi

gn; f

acili

tate

mee

tings

et

c.;

Offic

e Su

ppor

t Inc

ludi

ng:

∙ M

ore

suita

ble

offic

e pr

emis

es id

entif

ied,

sec

ured

and

mov

e

∙ On

goin

g su

ppor

t for

Boa

rd o

f Dire

ctor

s in

man

agin

g M

onth

ly

Boar

d m

eetin

gs, p

repa

ratio

n of

Boa

rd P

aper

s, M

inut

es a

nd

corp

orat

e go

vern

ance

pro

cess

es &

sup

port

∙ De

sign

and

pro

duce

adv

ertis

ing

and

sign

age

for e

vent

s an

d fe

stiv

als,

gen

eral

SGC

pro

mot

ions

and

dev

elop

upd

ated

co

llate

ral.

Cust

omer

Ser

vice

Tra

inin

g Pr

ogra

m

∙ Pr

oduc

t dev

elop

men

t adv

ise

with

bus

ines

ses

with

in th

e re

gion

low

cos

t airl

ine

oper

ator

s bo

th d

omes

tic &

inte

rnat

iona

l re:

FIF

O &

Med

ical

Tou

rism

opp

ortu

nitie

s∙

Gene

ric s

uppo

rt pr

ovid

ed to

Ble

ach

Fest

ival

Dire

ctor

.

was

wel

l atte

nded

by

over

60

busi

ness

con

tact

s an

d st

akeh

olde

rs w

ithin

the

regi

on.

from

Gol

d Co

ast T

ouris

m.

∙ Ev

ent i

nvite

des

igne

d an

d di

strib

uted

for C

reat

ive

Indu

strie

s

∙ Ge

nera

l ass

ista

nce

to C

EO P

eter

Dog

gett

who

com

men

ced

in

the

role

on

Dec

10th

201

2.∙

Enga

gem

ent w

ith S

CU &

Inte

rn S

elec

tion

proc

esse

s∙

Coor

dina

tion

of C

SGC

Tour

ism

& B

usin

ess

Deve

lopm

ent

nom

inat

ions

.

Page

10


20 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

ED

S S

tra

teg

ic O

utc

om

eC

SG

C A

cti

viti

es

Mea

sure

ab

le K

PIs

Ou

tcom

es f

or

full y

ea

r to

30/6

/12

− e

xecu

te g

ener

al p

rom

otio

nal

budg

et a

s ap

prov

ed b

y Bo

ard;

∙ O

ngoi

ng w

ithin

bud

get

− m

anag

e to

uris

m p

rom

otio

nal

Boar

d.

SGC

bran

d ex

posu

re is

max

imis

ed.

∙ Cu

rrum

bin

Wild

life

Sanc

tuar

y: a

ssis

ted

CSGC

with

dis

tribu

tion

of D

rives

Bro

chur

e; B

leac

h an

d SG

C Ev

ents

and

Fes

tival

s

fund

ing

appl

icat

ion

and

mul

tiple

mee

tings

took

pla

ce re

gard

ing

Cool

anga

tta G

old

Ha

ve t

he S

GC

lif

esty

le

an

d o

pp

ort

un

itie

s se

en

as

ad

van

tag

es

Eff

ect

reg

ion

al

colla

bora

tion

an

d p

ro-

acti

ve r

ep

resen

tati

on

to

en

ha

nce t

he c

ity

Tou

rism

Pro

moti

on

s a

nd

Mark

eti

ng

visi

tatio

ns a

nd e

mpl

oym

ent.

for p

rom

otio

ns to

impr

ove

repu

tatio

n of

SGC

as

a to

uris

t des

tinat

ion.

orga

nisa

tions

Prog

ram

mes

in a

ll fo

rms

of m

edia

afte

r lia

ison

with

re

leva

nt s

take

hold

ers,

incl

udin

g tra

ders

and

ac

com

mod

atio

n pr

ovid

ers

Prom

otio

nal C

onsu

mab

les:

prom

otio

nal o

utle

ts

Page

11


21 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

ED

S S

tra

teg

ic O

utc

om

eC

SG

C A

cti

viti

es

Mea

sure

ab

le K

PIs

Ou

tcom

es f

or

full y

ea

r to

30/6

/12

Eve

nts

an

d F

est

iva

ls

Ha

ve t

he S

GC

lif

esty

le

an

d o

pp

ort

un

itie

s se

en

as

ad

van

tag

es

− E

nsur

e th

at E

vent

s an

d Fe

stiv

als

occu

r as

per B

oard

-ap

prov

ed e

vent

s an

d fe

stiv

al a

nd

asso

ciat

ed b

udge

t.

∙ Sw

ell

∙ Coola

ng

att

a G

old

∙ To

mew

in M

ou

nta

in C

ha

llen

ge

∙ Ch

rist

mas

Caro

ls:

with

in b

udge

t - s

trong

com

plim

ents

∙ Ble

ach

* Fest

iva

l

∙ Qu

iksil

ver

Pro

∙ Au

ssie

Tit

les

∙ Co

oly

Ro

ck

s O

n

To

tal

Eco

no

mic

Im

ap

ct

of

majo

r eve

nts

& f

est

iva

ls in

FY

12

/13

= $

64

.19

M

− 1

x c

olla

bora

tive

and

to th

e re

gion

2013

)

− Id

entif

y ou

tcom

es, r

esou

rcin

g is

sues

and

gap

sR

eso

urc

e c

hallen

ges

& u

nd

erf

un

ded

in

Ad

min

su

pp

ort

fund

ing

∙ Ble

ach

20

14

: gra

nt a

pplic

atio

ns a

nd s

pons

orsh

ip p

ropo

sals

for

∙ Ble

ach

20

13

corp

orat

e sp

onso

rs; n

atio

nal m

edia

par

tner

s∙ O

pera

On

Th

e B

ea

ch

: F

undi

ng a

pplic

atio

ns s

ecur

ed

spon

sors

hip

prop

osal

s ha

ve c

omm

ence

d. P

lann

ing

for e

vent

in fu

ll sw

ing.

Initi

ate,

sup

port

and

fund

eve

nts

and

fest

ival

s in

SGC

incr

ease

tour

ist v

isita

tions

; em

ploy

men

t and

enh

ance

th

e cu

lture

of l

ife in

the

SGC

Cont

inua

lly id

entif

y an

d se

ek o

ut p

oten

tial n

ew e

vent

s an

d fe

stiv

als

for S

GC.

fest

ival

s in

acc

orda

nce

with

Boa

rd d

ecis

ions

and

po

licie

s

Impl

emen

t Fes

tival

s fit

ting

our d

estin

atio

n:

Cool

anga

tta

2013

Page

12


22 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

ED

S S

tra

teg

ic O

utc

om

eC

SG

C A

cti

viti

es

Mea

sure

ab

le K

PIs

Ou

tcom

es f

or

full y

ea

r to

30/6

/12

Bu

sin

ess

an

d I

nve

stm

en

t D

evelo

pm

en

t A

cti

vit

ies

− M

inim

um 3

x S

GC B

usin

ess

− 2

x S

trate

gy M

eetin

gs w

ith

CoGC

-EDM

P.−

Impl

emen

t SCU

MOU

SCU-

pro

mot

ion

of a

rtist

s an

d ev

ents

;

Bank

hel

d Oc

tobe

r 201

2

mus

ic e

nter

tain

men

t with

in v

ario

us p

rogr

ams

Tour

ism

and

pro

mot

ion

of G

old

Coas

t to

Mal

aysi

a &

Indo

nesi

a ho

spita

ls∙ M

et w

ith D

r Dar

ryl G

rego

r Eye

Vis

ion

Clin

ic

1.

Th

e e

co

no

my i

s b

uil

t

on

a d

ivers

ifie

d

kn

ow

led

ge a

nd

str

on

g

exp

ort

base.

2. Th

e s

up

ply

of

sk

ille

d

lab

ou

r m

eets

lo

ca

l

bu

sin

ess

req

uir

em

en

ts

Infr

ast

ructu

re s

up

po

rts

glo

ba

lly c

om

peti

tive

bu

sin

ess

deve

lop

men

t

an

d g

row

th

Reg

ion

al C

olla

bora

tion

an

d p

ro-a

cti

ve

rep

rese

nta

tio

n e

nh

an

ce

the C

ity

awar

enes

s of

regi

on

in b

usin

ess

capa

city

and

inve

stm

ent a

nd

empl

oym

ent p

rosp

ects

.

Supp

ort f

or a

nd m

embe

rshi

p of

SGC

CC

Page

13


23 Adopted Report

2 A

CT

IVIT

IES

& K

PI'S

− C

reat

ive

Indu

strie

s Se

ctor

Bank

hel

d Oc

tobe

r 201

2

mus

ic e

nter

tain

men

t with

in v

ario

us p

rogr

ams

− S

urfin

g In

dust

ry S

ecto

r: −

Gol

d Co

ast S

urf C

ity In

c.∙ G

CS

C I

nc.

mee

tings

) and

ass

iste

d w

ith o

btai

ning

a p

art s

pons

orsh

ip o

f a

web

site

dev

elop

men

t for

GCS

C In

c

∙ Jo

int

Secre

tari

at

supp

ort S

outh

ern

Gold

Coa

st

Cham

ber o

f Com

mer

ce S

GCCC

)x

2;

− D

emon

stra

ted

bene

ficia

l ca

paci

ty a

nd g

row

th o

f at l

east

2

busi

ness

espe

ople

)

oppo

rtuni

ty re

com

men

datio

ns

base

d ar

ound

PIC

-Coo

lang

atta

∙ So

uth

of

Cit

y P

roje

ct

cons

ulta

tion

on D

raft

Visi

on

rela

tion

to th

eir c

halle

nges

and

opp

ortu

nitie

s an

d

and

othe

r pot

entia

l ‘pa

rtner

s’, t

o in

crea

se b

usin

ess

capa

city

, gro

wth

and

exp

ort o

ppor

tuni

ties.

Tran

spor

t) an

d Op

portu

nitie

s


24 Adopted Report

3.1 FIN MNGEMENT

�

3.1 OVERVIEW FOR THE YEAR ENDED 30 JUNE 2013

1. Analysis of Results

The Company is working to the set of KPIs agreed with GCCC EDMP Division and continues to achieve KPI's and objectives.

2. Major Activities

The major activities of the Company continue to be the promotion of Business Investment and Economic Development activities inthe Southern Gold Coast; Funding / Sponsoring Events and Festivals aimed at increasing Tourism Patronage of the Southern GoldCoast; and General Promotion and Greater Awareness of the Southern Gold Coast for Tourism purposes.

These activities are in line with KPIs approved by GCCC.

3. Overall Analysis of Actual Results versus Budget and any Significant Variances

Overall the Company's actual results are within budgets for profits and cash flows, with the following exceptions:

The Company's funding commitment to the Bleach Festival (the festival was undertaken by the Company in February 2012) was adjusted accordingly with an additional in-kind support allocated. There were also additional / unbudgeted third party sponsorships and grants obtained by the Company and Events Director (Mrs. Louise Bezzina) to fund the Festival, all of which were spent by the Company on the Festival. Due to the growth of the Festival this will be reviewed again at the end of the second half of the year to accomodate additional Income & Expenditure over the proceeding year (FY2014).

During the end of the second quarter of the year (middle December 2012), a new CEO (Mr. Peter Doggett) was appointed. Thishas resulted in an actual spend of only 20% of Income on Salaries & Wages (Actual vs Budget - 70.6%) for the full year. Theadjustment was amended in the budget and was changed under the administration expense during the second half of the year withre-allocations to Economic Development, General Administration and new projects undertaken by GSCG during this period.

In the second quarter of the year (October 2012), the move to new premises was executed with additional expenses not budgetedfor under General Administration. The forecast was amended accrodingly to board approval and funds were re-allocated toaccomodate these changes.

4. Changes to budgets / forecasts

The Company's forecast was revised to include the following material items:

Administration

"Relocation / Office Move 2012": $5k was allocated (re-allocated from the Administration - Salaries & Wages budget) to accommodate the relocation to bigger presmises.

"Salaries & Wages": Due to the late placement of the new CEO (Mr. Peter Doggett) a portion of the budget was re-allocated from the Administration - Salaries & Wages budget to new / additional projects undertaken by the CEO through the second half of the year.

Economic Development - Projects and Activities

"Surf Cities Joint Secretariat" Project: $7k was advanced to the Company from GCCC and was allocated along with a $7,000Company contribution (re-allocated from the Administration - Salaries & Wages budget) and expended through the first half of theyear with the contract coming to an end February 2013.

"South of City" Project: $4k was not fully disbursed by year end, the remaining expenditure was accrued at 30 June 2012. Nofurther Funds were not disbursed this year as the Event was Concluded - Balance of Funds will be returned to GCCC on receipt ofInvoice.


25 Adopted Report

3.1.4 FIN MNGEMENT cont

3.1 OVERVIEW FOR THE YEAR ENDED 30 JUNE 2013

4. Changes to budgets / forecasts (continued)

Events and Festivals

"Tomewin Mountain Challenge" Project: $2k was advanced to the Company from GCCC and was disbursed accordingly inthe first half of the year.

Bleach* Surfing the Fringe Festival: An additional +/-$85k in sponsorships and grants, and over $100k of in-kindcontributions from media and other contributors, were received during the first half of the year with a majority of the overallbudget expenditure been allocated on the Festival at the end of the first half of the year. A further +/-$269k in sponsorshipsand grants were received in the second half of the year with additional expenses paid accordingly. These amounts werenot previously budgeted and was included under the Events & Festival Income & Expenses Forecasts during the secondhalf of the year to include the changes / growth of the festival.

Marketing

"Explorer Pass-Project Management": $3k was allocated and spent through the first half of the year.

Other Income

"Term Deposit": $200k was placed in an investment account for a 2 month period which resulted in additional "Interest Income" being earned.

5. Changes to operations or activities

The activities of the Company have expanded to incorporate the new projects noted in (4) above.

There have been no changes to the base operations of the Company.

6. Other items of interest

The Company's General Manager left in March 2012. The position remained vacant until the 10th December 2012 with theappointment of a new CEO (Mr. Peter Doggett).

There are no other expected significant changes to or within the operations of the Company.

SECTION 3 - FINANCIAL MANAGEMENT (continued)


26 Adopted Report

Pag

e 17

3.2

ST

M C

OM

P IN

C

3.2

S

TA

TE

ME

NT

OF

CO

MP

RE

HE

NS

IVE

IN

CO

ME

FO

R T

HE

6 M

ON

TH

S E

ND

ED

30

JUN

E 2

013

Yr

2Y

r 3

Act

ual

Bu

dg

etA

ctu

alB

ud

get

Act

ual

Bu

dg

etA

ctu

alB

ud

get

Act

ual

Bu

dg

etV

arB

ud

get

Bu

dg

et

RE

VE

NU

E

Gov

ernm

ent F

undi

ng :

GC

CC

Spe

cial

Lev

y16

5,49

716

5,50

016

5,49

716

5,50

016

5,49

716

5,50

016

5,49

716

5,50

066

1,98

666

2,00

0(1

4)68

1,86

070

5,72

5

GC

CC

Pro

ject

Fun

ding

9,00

0-

--

--

14,0

00-

23,0

00-

23,0

000

0

Ble

ach

Fes

tival

Gra

nts,

Spo

nsor

ship

s &

Rev

enue

40,0

0060

,000

60,0

0019

,000

179,

000

273,

638

00

Gov

ernm

ent F

undi

ng :

GC

CC

78,5

0077

,250

185,

686

22,3

1436

3,75

0

Non

-Gov

ernm

ent F

undi

ng :

10,8

1117

,500

24,4

187,

227

59,9

56

Eve

nt R

even

ue :

--

28,9

31-

28,9

31

Inte

rest

Inco

me

946

-2,

603

-2,

255

-1,

069

-6,

873

-6,

873

5000

3500

Oth

er R

even

ue

--

--

858

-1,

977

-2,

835

-2,

835

TO

TA

L R

EV

EN

UE

$264

,753

$205

,500

$262

,850

$225

,500

$407

,645

$225

,500

$212

,084

$184

,500

$1,1

47,3

32$8

41,0

00$3

06,3

32$6

86,8

60$7

09,2

25-

-

EX

PE

NS

ES

Com

mun

icat

ions

953

2,57

552

52,

475

545

2,47

51,

788

2,47

53,

810

10,0

00(6

,190

)10

,000

10,3

50

Tou

rism

, Pro

mot

ions

& M

arke

ting

14,7

4812

,650

7,72

65,

850

545

6,65

03,

236

4,85

026

,256

30,0

00(3

,744

)30

,000

31,0

50

Eco

nom

ic D

evel

opm

ent

6,15

07,

000

7,60

07,

000

8,47

312

,000

1,20

0-

23,4

2326

,000

(2,5

77)

30,0

0031

,050

Eve

nts

& F

estiv

als

56,6

4085

,500

127,

396

120,

500

342,

131

114,

000

111,

831

42,5

0063

7,99

836

2,50

027

5,49

818

3,50

018

9,92

3

Gen

eral

Adm

inis

trat

ion

23,4

7929

,885

37,7

616,

485

37,7

9626

,815

45,2

9630

,315

144,

331

93,5

0050

,831

420,

460

435,

176

Hum

an R

eour

ces

- E

mpl

oyee

s35

,195

77,1

1452

,243

98,6

1668

,463

77,1

1577

,175

77,1

1523

3,07

632

9,96

1(9

6,88

5)0

0

Dep

reci

atio

n an

d A

mor

tisat

ion

Exp

ense

989

-1,

164

-1,

735

1,50

01,

638

1,50

05,

527

3,00

02,

527

7,50

07,

763

TO

TA

L E

XP

EN

SE

S$1

38,1

54$2

14,7

24$2

34,4

15$2

40,9

26$4

59,6

87$2

40,5

55$2

42,1

63$1

58,7

55$1

,074

,420

$854

,961

$219

,459

$681

,460

$705

,311

--

NE

T P

RO

FIT

/(L

OS

S)

BE

FO

RE

INC

OM

E T

AX

$126

,599

-$9,

224

$28,

435

-$15

,426

-$52

,042

-$15

,055

-$30

,080

$25,

745

$72,

912

-$13

,961

$86,

872

$5,4

00$3

,914

INC

OM

E T

AX

EX

PE

NS

ES

NE

T P

RO

FIT

/(L

OS

S)

AF

TE

R IN

CO

ME

TA

X$1

26,5

99-$

9,22

4$2

8,43

5-$

15,4

26-$

52,0

42-$

15,0

55-$

30,0

80$2

5,74

5$7

2,91

2-$

13,9

61$8

6,87

2$5

,400

$3,9

14

FO

RE

CA

ST

QT

R 1

QT

R2

QT

R3

QT

R4

YT

D

Jul-S

ept

Oct

-Dec

Jan-

Mar

Apr

-Jun

Jul-D

ec

CU

RR

EN

T Y

EA

R (

Yea

r 1)


27 Adopted Report

3.3 STM FIN POS

3.3 STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2013

Current reporting period

Same period last year

YTD YTD30/6/13 30/6/12

$ $CURRENT ASSETSCash and Cash Equivalents $169,482 $141,502Receivables $15,555 $1,460Inventories $0Prepayments $0Other Current Assets $0

$185,037 $142,962

NON-CURRENT ASSETSProperty, Plant and Equipment $6,303 $5,576

$6,303 $5,576

TOTAL ASSETS $191,341 $148,538

CURRENT LIABILITIESPayables $7,947 $13,052Unearned Revenue $0 $5,000Employee Benefits $11,827 $8,171Loans (Accruals, Provisions) $22,727 $46,387Other Current Liabilities

$42,501 $72,610

NON-CURRENT LIABILITIESEmployee Benefits $0Loans $0

$0 $0

TOTAL LIABILITIES $42,501 $72,610

NET ASSETS $148,839 $75,928

EQUITYContributed EquityReservesRetained Earning - Opening $75,928 $146,165Retained Earnings - Current Year $72,911 -$70,237TOTAL EQUITY $148,839 $75,928


28 Adopted Report

Pag

e 19

3.4

CA

SH

FLO

W

3.4

C

AS

H F

LO

W S

TA

TE

ME

NT

AN

D F

OR

EC

AS

T

FO

R T

HE

YE

AR

EN

DE

D 3

0 JU

NE

201

3

Yea

r 2

Yea

r 3

Act

ual

Fo

reca

stA

ctu

alF

ore

cast

Act

ual

Fo

reca

stA

ctu

alF

ore

cast

Act

ual

Fo

reca

stV

arF

ore

cast

Fo

reca

st

OP

EN

ING

CA

SH

$141

,502

$141

,502

$349

,908

$282

,216

$640

,880

$63,

378

$336

,789

$242

,400

$141

,502

$141

,502

$0$7

0,96

9

AD

D O

PE

RA

TIN

G R

EC

EIP

TS

GC

CC

Spe

cial

Lev

y36

4,09

236

4,09

236

4,09

2-

-36

4,09

2-

-72

8,18

572

8,18

40

750,

031

GC

CC

Pro

ject

Fun

ding

9,90

09,

000

--

--

--

9,90

09,

000

900

-B

leac

h F

estiv

al G

rant

s, S

pons

orsh

ips

& R

even

ue15

,621

40,0

0016

9,86

460

,000

222,

043

60,0

0074

,651

19,0

0048

2,17

917

9,00

030

3,17

9In

tere

st R

ecei

ved

1,20

680

02,

603

1,50

02,

255

1,20

01,

069

1,50

07,

133

5,00

02,

133

5,00

0O

ther

Ope

ratin

g R

ecei

pts

--

--

--

1,08

0-

1,08

0-

1,08

0-

AD

D C

AP

ITA

L R

EC

EIP

TS

Pro

ceed

s on

dis

posa

ls-

--

--

--

--

--

Oth

er c

apita

l rec

eipt

s-

--

--

--

--

--

TO

TA

L R

EC

EIP

TS

$390

,819

$413

,892

$536

,560

$61,

500

$224

,298

$425

,292

$76,

800

$20,

500

$1,2

28,4

76$9

21,1

85$3

07,2

92$7

55,0

31$0

--

--

-

LE

SS

OP

ER

AT

ING

PA

YM

EN

TS

Com

mun

icat

ions

693

2,35

049

52,

550

495

2,55

074

02,

550

2,42

310

,000

(7,5

77)

10,0

00T

ouris

m,

Pro

mot

ions

& M

arke

ting

14,9

1912

,650

1,80

35,

850

-6,

650

2,64

04,

850

19,3

6230

,000

(10,

638)

30,0

00E

cono

mic

Dev

elop

men

t29

,325

13,2

408,

217

13,2

407,

363

17,6

404,

470

-49

,375

44,1

205,

255

45,0

00E

vent

s &

Fes

tival

s71

,368

85,5

0011

3,01

312

0,50

030

0,99

011

4,00

011

8,84

042

,500

604,

210

362,

500

241,

710

183,

500

Gen

eral

Adm

inis

trat

ion

19,2

9419

,135

39,8

9817

,235

129,

438

17,5

6550

,588

21,0

6523

9,21

875

,000

164,

218

420,

000

Hum

an R

esou

rces

- E

mpl

oyee

s40

,225

80,8

6441

,787

87,8

6450

,637

87,8

6558

,901

87,8

6519

1,55

134

4,45

9(1

52,9

08)

-A

TO

(P

AY

G/G

ST

)6,

590

975

40,3

7433

,099

39,4

66-

7,92

833

,099

94,3

5867

,173

27,1

8470

,000

Oth

er O

pera

ting

Pay

men

ts-

58,4

64-

--

--

--

58,4

64(5

8,46

4)-

LE

SS

CA

PIT

AL

PA

YM

EN

TS

Pla

nt a

nd E

quip

men

t P

urch

ases

--

--

--

--

--

--

-O

ther

Cap

ital P

aym

ents

--

--

--

--

--

--

-Lo

an r

epay

men

ts -

prin

cipa

l-

--

--

--

--

--

--

TO

TA

L P

AY

ME

NT

S$1

82,4

14$2

73,1

78$2

45,5

87$2

80,3

38$5

28,3

89$2

46,2

70$2

44,1

07$1

91,9

30$1

,200

,496

$991

,717

$208

,780

$758

,500

$0-

--

CL

OS

ING

CA

SH

(m

ust

eq

ual

cas

h p

er b

alan

ce s

hee

t)$3

49,9

08$2

82,2

16$6

40,8

80$6

3,37

8$3

36,7

89$2

42,4

00$1

69,4

82$7

0,97

0$1

69,4

82$7

0,97

0$9

8,51

2$6

7,50

0$0

-$

0

QT

R4

YT

D

Jul-S

ept

Oct

-Dec

Jan-

Mar

Apr

-Jun

t.b.

c.

CU

RR

EN

T Y

EA

R (

Yea

r 1)

FO

RE

CA

ST

QT

R 1

QT

R2

QT

R3


29 Adopted Report

Pa

ge

20

3.5

VA

RIA

NC

ES

3.5

M

AJO

R V

AR

IAN

CE

S A

NA

LY

SIS

FO

R T

HE

YE

AR

EN

DE

D 3

0 JU

NE

201

3

Cat

eg

ory

YT

D A

ctu

al

$

YT

D

Bu

dg

et

$

Va

ria

nc

e$

Va

ria

nc

e%

An

aly

sis

(p

rovi

de

co

mm

en

tary

wh

en

var

ian

ce

gre

ate

r th

an

10

% o

r $

10

,00

0)

RE

VE

NU

E

GC

CC

Spe

cial

Lev

y$

66

1,9

86

$6

62

,00

0-$

14

0%

-

GC

CC

Pro

ject

Fun

ding

$2

3,0

00

$0

$2

3,0

00

10

0%

Unb

udge

ted

Fun

ding

Rec

eive

d fo

r :

"Glo

bal S

urf

ing

Citi

es J

oint

Se

cret

aria

t" -

$9,

000

/ D

efe

rre

d I

nco

me

fo

r "F

ea

st 2

01

4"

- $

14

,00

0

Ble

ach

Fes

tival

Gra

nts,

Spo

nsor

ship

s &

Rev

enue

$0

$1

79

,00

0-$

17

9,0

00

-10

0%

Unb

udge

ted

"Ble

ach

Fes

tival

" F

undi

ng R

ecei

ved

due

to

: A

ddi

tiona

l Sp

onso

rshi

ps,

Gra

nts

&

Fes

tival

Rev

enue

Inte

rest

In

com

e$

6,8

73

$0

$6

,87

31

00

%In

tere

st r

ecei

ved

due

to :

GC

CC

Fun

ding

pla

ced

in D

epos

it A

ccou

nt a

t hi

gher

inte

rest

rat

e

Oth

er

Re

ven

ue

$

2,8

35

$0

$2

,83

51

00

%"C

ontr

a" I

nvo

icin

g of

"In

curr

ed"

Exp

ense

(S

hare

d C

ostin

g)

TO

TA

L R

EV

EN

UE

$6

94

,69

4$

84

1,0

00

-$1

46

,30

6-1

7%

EX

PE

NS

ES

Com

mun

icat

ions

$3

,81

0$

10

,00

0-$

6,1

90

-62

%N

o T

rad

er

Da

tab

ase

Up

da

tes

do

ne

fo

r F

Y2

01

3 &

Co

nte

nt

Ma

na

ge

me

nt

did

no

t R

eq

uir

e

e-C

bd's

ass

ista

nce

(Exp

ende

d M

ostly

th

rou

gh

"In

-Ho

use

" R

eso

urc

ing

)

To

uri

sm,

Pro

mo

tion

s &

Ma

rke

ting

$2

6,2

56

$3

0,0

00

-$3

,74

4-1

2%

-

Eco

nom

ic D

eve

lopm

ent

$2

3,4

23

$2

6,0

00

-$2

,57

7-1

0%

-

Eve

nts

& F

est

ival

s$

63

7,9

98

$3

62

,50

0$

27

5,4

98

76

%In

crea

sed

Exp

endi

ture

on

"Ble

ach"

Fes

tival

due

to

: A

ddi

tiona

l Gra

nts

& S

pon

sors

hips

R

ecei

ved

and

Add

ition

al E

xpen

ditu

re

Ge

ne

ral A

dm

inis

tra

tion

$1

44

,33

1$

93

,50

0$

50

,83

15

4%

Rel

ocat

ion

to n

ew P

rem

ises

(A

dditi

onal

Off

ice

Eq

uip

me

nt

& L

ea

se I

mp

rove

me

nts

- C

ost

s A

pp

rove

d b

y th

e B

oa

rd a

nd

Re

-allo

catio

n o

f B

ud

ge

t E

xpe

nse

s (-

fro

m H

R t

o A

dm

in)

Hu

ma

n R

eso

urc

es

- E

mp

loye

es

$2

33

,07

6$

32

9,9

61

-$9

6,8

85

-29

%La

te P

lace

men

t of

New

CE

O -

par

t "R

e-al

loca

tion"

of

Bu

dget

Exp

ense

wa

s do

ne

(fro

m H

R t

o A

dm

in)

Dep

reci

atio

n an

d A

mor

tisat

ion

Exp

ense

$5

,52

7$

3,0

00

$2

,52

71

00

%A

ccui

sitio

n of

Ad

ditio

nal O

ffic

e E

quip

men

t P

urc

hase

d (N

ew P

rem

ises

- A

ircon

ditio

ning

Uni

ts)

TO

TA

L E

XP

EN

SE

S$1

,074

,42

0$

85

4,9

61

$2

19

,45

92

6%

NE

T P

RO

FIT

/(L

OS

S)

AF

TE

R I

NC

OM

E T

AX

-$37

9,72

6-$

13

,96

1-$

36

5,7

65

26

20

%


30 Adopted Report

Pag

e 21

3.6

RA

TIO

S

3.6

R

AT

IO A

NA

LY

SIS

FO

R T

HE

YE

AR

EN

DE

D 3

0 JU

NE

201

3

Rat

ioN

ote

sC

urr

ent

rep

ort

ing

d

ate

rati

oC

om

me

nts

Cur

rent

Rat

io

(Cur

rent

Ass

ets

/ Cur

rent

Lia

bilit

ies)

A m

easu

re o

f sh

ort-

term

liqu

idity

, the

cur

rent

rat

io

mea

sure

s an

org

anis

atio

n's

abili

ty to

rep

ay it

s sh

ort-

term

de

bt (

due

in th

e co

min

g 12

mon

ths)

by

usin

g sh

ort-

term

as

sets

. Ide

al c

urre

nt r

atio

is a

t lea

st 2

:1.

4:1

Rat

io r

efle

cts

Goo

d C

ash

Pos

ition

Deb

t Rat

io(T

otal

Lia

bilit

ies

/ Tot

al A

sset

s)

Mea

sure

s pe

rcen

tage

of

asse

ts p

rovi

ded

by c

redi

tors

an

d ex

tent

of

usin

g ge

arin

g. T

he lo

wer

the

ratio

, the

gr

eate

r th

e as

set p

rote

ctio

n to

cre

dito

rs.

0.22

Ref

lect

s G

ood

Fin

anci

al P

ositi

on

Pro

fit M

argi

n(O

pera

ting

Pro

fit /

Net

Sal

es)

Mea

sure

s ne

t pro

fitab

ility

of

an o

rgan

isat

ion

0.1

Ref

lect

s a

Low

Pro

fit M

argi

n in

ac

cord

ance

with

inte

ntio

n of

a N

ot-f

or-

Pro

fit E

ntity


31 Adopted Report

669th Council Meeting 19 November 2013 32 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 2 ORGANISATIONAL SERVICES CONTRACT NO. LG314/690/13/006 – MAINTENANCE OF FIRE PROTECTION SYSTEMS AND EQUIPMENT LG314/690/13/006 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT This report seeks approval to establish preferred supplier arrangement LG314/690/13/006 for the provision of preventative, corrective and reactive maintenance on fire protection systems at various buildings owned by the City of Gold Coast for a period of three years with a two year extension option. 4 PREVIOUS RESOLUTIONS Not applicable. 5 DISCUSSION Council requires the services of a preferred supplier to deliver preventative, corrective and reactive maintenance on a wide range of fire protection systems and equipment such as hydrant systems, emergency and exit lights, passive fire and smoke containment systems, fire extinguishers, fire pump sets, sprinkler systems, smoke and heat alarms, fire detection systems and gaseous extinguishing systems on Council properties and infrastructure throughout the City. Council has an existing contract in place for maintenance of fire protection systems and equipment with Advance Fire Technology Pty Ltd which is due to expire on 01 December 2013. Council has again determined that the most advantageous and operationally suitable method of delivering the wide range of fire protection systems and equipment is to establish a preferred supplier arrangement funded by a budget extending beyond one financial year. Tenders were invited by advertising in the Gold Coast Bulletin, LG Tender Box and the City of Gold Coast websites on 6 July 2013. The tender period closed on 21 August 2013. Due to a change in the tender specifications, all tenderers who submitted a tender were, in accordance with Section 228(7) of the Local Government Regulations 2012, invited on 11 October 2013 to submit a revised tender in order to take into consideration changes to the specifications in relation to call out rates. The Section 228(7) revised tender submissions were received on 14 October 2013.

669th Council Meeting 19 November 2013 33 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/690/13/006 – MAINTENANCE OF FIRE PROTECTION SYSTEMS AND EQUIPMENT LG314/690/13/006 The following tenders were received.

Tenderers

1 Advance Fire Technology Pty Ltd

2 Dayshelf Pty Ltd atf P. Taylor Family Trust (t/a Dayshelf Fire Systems)

3 Firevac Services Pty Ltd

4 Grosvenor Engineering Group Pty Ltd

5 Eversafe Extinguisher Australia Pty Ltd (t/a Eversafe Fire & Safety)

6 QFE Technologies Pty Ltd

7 Chubb Fire & Security Pty Ltd

8 Tyco Australia Pty Ltd (t/a Wormald)

9 K & J Foster Pty Ltd (t/a FCF Fire and Electrical)

The tender was considered to be sufficiently extensive to have attracted competitive interest from the market. The tenders were evaluated using a three gate evaluation process incorporating the tender evaluation criteria that formed part of the tender documents. Evaluations were undertaken by three officers of Council, attended by one observer and the result was reviewed independently by an additional officer. The names of the evaluation team and the scoring matrix with assigned weightings are on file for reference. The first gate of the evaluation process considered the evaluation of the following specific mandatory criteria. BSA and other registrations / licenses. Work Health and Safety (WHS) management system. Part B: Price Tender Submission – fully completed schedule of rates. The first gate of the evaluation process found that the tenders received from Tyco Australia Pty Ltd (t/a Wormald), Chubb Fire & Security Pty Ltd and K & J Foster Pty Ltd (t/a FCF Fire and Electrical) should, in accordance with the Conditions of Tendering, be ruled as non-conforming and were not further evaluated, due to these tenderers submitting incomplete tender submissions and/or schedule of rates. QFE Technologies Pty Ltd withdrew their tender submission during the evaluation process. The other tenders were found to be conforming to the requirement of Council’s tender documents.

669th Council Meeting 19 November 2013 34 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/690/13/006 – MAINTENANCE OF FIRE PROTECTION SYSTEMS AND EQUIPMENT LG314/690/13/006 The second gate of the evaluation process considered the evaluation of the following scoring criteria and determined those suppliers deemed capable of meeting Council’s requirements. Methodology and program. Relevant experience / past performance. Availability and suitability of staff and / or equipment and plant. Work Health and Safety (WHS) management system. Quality assurance (QA) system. Insurance. Environmental protection systems. Local Business and Industry. Gold Coast Business Excellence Awards. The resultant aggregated scores were as follows.

Tenderers Evaluation Score

(without Local

Content)

Local Business

and Industry

Gold Coast

Business Awards

Evaluation Score

(with Local Content)

(out of 83) (out of 15) (out of 2) (out of 100%)

1 Advance Fire Technology Pty Ltd

70 15 0 85%

2 Dayshelf Pty. Ltd. 67 15 0 82%

3 Firevac Services Pty Ltd 68 4 0 72%

4 Eversafe Extinguisher Australia Pty. Ltd.

58 2 0 60%

5 Grosvenor Engineering Group Pty Ltd

54 1 0 55%

The first three tenderers scored sufficiently in the evaluation of their capability and were determined as suppliers capable of meeting Council’s requirements. As a result, these tenderers were moved through to the third evaluation gate. The third gate of the evaluation process considered the value for money of those tenderers who are considered capable, based on the total tendered amount. The total amounts received are listed below.

669th Council Meeting 19 November 2013 35 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/690/13/006 – MAINTENANCE OF FIRE PROTECTION SYSTEMS AND EQUIPMENT LG314/690/13/006

Tenderers Local Business

and Industry

Gold Coast

Business Awards

Total Amount (excl. GST) for

three years

1 Firevac Services Pty Ltd 4 0 $1,836,428

2 Advance Fire Technology Pty Ltd 15 0 $2,018,001

3 Dayshelf Pty. Ltd. 15 0 $2,405,475

Council’s estimate was: $1,900,000

Tendered prices were checked for arithmetic accuracy and completeness and no corrections were necessary in accordance with the Conditions of Tendering. The lowest priced tenderer is considered capable of undertaking the works and reflects the tender most advantageous to Council. Firevac Services Pty Ltd has satisfied the evaluation team of their clear understanding of the scope of work, that this is not at variance with the requirements of the tender document and has also satisfied the evaluation team as to their ability to complete this contract in addition to their current contractual commitments. 6 ALIGNMENT TO BOLD FUTURE VISION, CORPORATE PLAN, OPERATIONAL PLAN

The project is aligned with the following Bold Future Key Focus Areas, and relevant Outcomes and Action Statements.

KEY FOCUS AREA 1 - A CITY LEADING BY EXAMPLE

Outcome: In 2014 we will have a city where:

1.1 There are strong foundations for a sustainable city.

Action Statement: What we will do to achieve this will be to:

1.1.1 Encourage consideration of the environmental, social and economic impact that our decisions will have on the city now and in the future.

KEY FOCUS AREA 5 - A CITY WITH A THRIVING ECONOMY

Outcomes: In 2014 we will have a city where:

5.1 The economy is built on a diversified knowledge and strong export-base.

5.2 Our infrastructure supports globally competitive business development and growth.

Action Statement: what we will do to achieve this will be to:

5.1.2 Support local business development and attract new business and investment to the city.

5.2.1 Ensure development of infrastructure that promotes the sustainable economic growth of the city, working with other agencies.

669th Council Meeting 19 November 2013 36 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/690/13/006 – MAINTENANCE OF FIRE PROTECTION SYSTEMS AND EQUIPMENT LG314/690/13/006 7 FUNDING AND RESOURCING REQUIREMENTS Budget/funding considerations

If the tender of Firevac Services Pty Ltd was to be accepted for this contract, the total allocation required for this preferred supplier arrangement is summarised as follows. Item Estimate for three years

(excl. GST)

Base contract cost for routine preventative maintenance work of fire assets across all Council buildings

$ 637,920

Contract cost for additional work (Materials and Labour for breakdowns and fault finding service repairs)

$ 1,198,508

Total Costs for three years: $ 1,836,428

The funding for the proposed contracted services is to be funded out of Cost Centres 1006008 and 1006009 and these funds are journaled out monthly to dedicated building maintenance Cost Centres out of which fire assets are being serviced across the Community Services, EDMP, Engineering Services, Gold Coast Water and Organisational Services Directorates. The funds are allocated on an actual cost basis to each building. The estimated contract cost per financial year is summarised below. Estimated Cost for Financial Years

Duration Estimate (excl. GST)

2013-14 (7 months) $ 357,084

2014-15 (12 months) $ 612,142

2015-16 (12 months) $ 612,142

2016-17 (5 months) $ 255,060

Total Cost: $1,836,428

The funds for financial year 2013-14 are allocated by the Asset Custodians as per the table below.

Cost Centre WBS Description Budget (excl. GST)

1006008

N/A GCCC Fire - Base contract (Routine preventative maintenance work of fire assets across all buildings)

$128,243

1006009 N/A GCCC Fire – Additional work (Materials and Labour for breakdowns and fault finding service repairs)

$ 241,202

Total funding available for financial year 2013-14 $ 369,445

669th Council Meeting 19 November 2013 37 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/690/13/006 – MAINTENANCE OF FIRE PROTECTION SYSTEMS AND EQUIPMENT LG314/690/13/006 Sufficient funds remain in the Cost Centre 1006008 and 1006009 for the 2013-14 financial year to provide the contracted services for this financial year. Similar budgets will be submitted by the relevant Asset Custodians from the above mentioned Directorates for approval, for each of the three subsequent financial years. No total financial commitment will be entered into with the successful tenderer at this stage. This contract is a Schedule of Rates contract for three years. Payments will be made to the Contractor based on the rates tendered, multiplied by the actual quantum of work undertaken. For the purposes of obtaining competitive tender offers and evaluating these equitably, estimates were given of the volumes of work likely to be ordered over the period of the contract. In accordance with the budget review guidelines the following circumstances require referral to the Corporate Governance & Finance Committee

Not applicable.

People and Culture

No extra staff will be required for this contract.

8 RISK MANAGEMENT The project risks have been identified and relevant mitigation measures applied. The risk assessment is on file for reference. 9 STATUTORY MATTERS The tender process has been carried out in accordance with the Local Government Regulation 2012 which requires adherence to sound contracting principles. These principles are defined in Section 104(3) of the Local Government Act 2009 and are as follows. Value for money. Open and effective competition. The development of competitive local business and industry. Environmental protection. Ethical behaviour and fair dealing. These principles form part of the tender process and are reinforced within the tender evaluation criteria as appropriate. Section 233 of the Local Government Regulation 2012 provides for the creation of a preferred supplier arrangement for the supply of particular goods or services. 10 COUNCIL POLICIES The tender process has been carried out in accordance with the requirements of Council’s Procurement Policy and Standards. 11 DELEGATIONS

Not applicable.

669th Council Meeting 19 November 2013 38 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/690/13/006 – MAINTENANCE OF FIRE PROTECTION SYSTEMS AND EQUIPMENT LG314/690/13/006 12 COORDINATION AND CONSULTATION

Title and/or name of the Stakeholder consulted


Is the Stakeholder satisfied with content of this Report and Recommendations (Yes/No) (comment as appropriate)

Manager Property Services Organisational Services Yes Executive Coordinator Facilities Management

Organisational Services Yes

Coordinator Building Management & Operations

Organisational Services Yes

Senior Specialist Design Project Officer Electrical/Mechanical – Hilary Gauder

Engineering Services Yes

Right to Information (RTI) and Information Privacy (IP) Legislation 2009 The RTI/IP considerations are as follows. Naming External Stakeholders (Personal Information).

Not applicable.

Naming Internal Stakeholders (Routine Personal Work Information). Not applicable.

13 STAKEHOLDER IMPACTS External / community stakeholder impacts No adverse impacts are expected to be experienced by external / community stakeholders during the undertaking of this work. Internal (organisational) stakeholder impacts Not applicable. 14 TIMING The anticipated contract start date is 2 December 2013. 15 CONCLUSION The recommended tenderer is experienced in the type of work to be undertaken. The evaluation of the tenders received indicates that the offer submitted by Firevac Services Pty Ltd is the one most advantageous to Council and should be recommended for acceptance for a period of three years with a two year extension option.

669th Council Meeting 19 November 2013 39 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/690/13/006 – MAINTENANCE OF FIRE PROTECTION SYSTEMS AND EQUIPMENT LG314/690/13/006 16 RECOMMENDATION It is recommended that Council resolves as follows. 1 That Council accepts the tender submitted by Firevac Services Pty Ltd for the

tendered rates (excluding GST) without rise and fall to establish a preferred supplier arrangement for LG314/690/13/006, Maintenance of Fire Protection Systems and Equipment for three years with a two year extension option.

2 That it be noted that the contract will require funding over four financial years and that similar budgets to that approved for the 2013-14 financial year will be submitted for approval by the Asset Custodians in each of the three subsequent financial years 2014-15, 2015-16 and 2016-17. The total expenditure over the contract period is anticipated to be $1,836,428. Funding will be allocated from Cost Centres 1006008 and 1006009 within Responsibility Centre OS6970 and Budget Centre OS6970O002.


Andrea Taikato-Simpson Glen Potter Senior Procurement Contracts Officer Director Organisational Services 28 October 2013 ispot # 41530708 COMMITTEE RECOMMENDATION GA13.1114.002 moved Cr Tozer seconded Cr Bell 1 That Council accepts the tender submitted by Firevac Services Pty Ltd for the



CARRIED

669th Council Meeting 19 November 2013 40 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/690/13/006 – MAINTENANCE OF FIRE PROTECTION SYSTEMS AND EQUIPMENT LG314/690/13/006 Cr Taylor declared a material personal interest (as per section 172 of the Local Government Act 2009) on this matter due to him being associated with Dayshelf Pty Ltd, and left the meeting room taking no part in the debate or decision of the meeting. Cr Taylor left the room. RESOLUTION G13.1119.020 Moved Cr Owen-Jones Seconded Cr Gates

That Committee Recommendation GA13.1114.002 be adopted as printed which reads as follows:- 1 That Council accepts the tender submitted by Firevac Services Pty Ltd for the



CARRIED Cr Taylor returned to the room

669th Council Meeting 19 November 2013 41 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 3 ORGANISATIONAL SERVICES CONTRACT NO. LG314/411/14/078 – LEACHATE MANAGEMENT SERVICES AT STAPYLTON LANDFILL: EXPRESSION OF INTEREST LG314/411/14/078(P1) 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT This report seeks approval to invite expressions of interest before inviting tenders for the provision of leachate management services at the Stapylton Landfill site. (LG314/411/14/078) 4 PREVIOUS RESOLUTIONS

Not applicable. 5 DISCUSSION Council’s Waste and Resources Management Branch of Community Services requires the efficient, cost effective management of the removal of leachate at the Stapylton Landfill site to prevent harm to human health and environment. The leachate management services are proposed to address the following objectives. Provide leachate management services that are environmentally sustainable and

technically and economically viable. Ensure that the Stapylton Landfill site meets Work Health & Safety requirements in

relation to leachate exposure at the worksite. Reduce risks of causing environmental harm through uncontrolled release of

leachate. Increase capability in managing variable leachate generation volumes as a result

seasonal rain events. Identify any potential synergies in the water management cycle for the Stapylton

Landfill site. Decrease the overall cost of leachate disposal. Obtain best value for money through the implementation of the most appropriate

technology and commercial arrangement. Reduce reliance on a single service provider for leachate tankering and disposal. Council has determined, in terms of section 228(3) of the Local Government Regulation 2012 that the most advantageous and operationally suitable method of delivering this leachate management service, and in the public interest, is to engage an external contractor by first inviting expressions of interest before inviting tenders for reasons including the following. Council, through industry research, has identified a significant variety of potentially

suitable options including a number of on-site leachate treatment technologies and off-site treatment and/or disposal solutions. Much of this technology has been developed internationally and the application to local conditions may pose added complexity that needs to be investigated.

669th Council Meeting 19 November 2013 42 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 3 (Continued) CONTRACT NO. LG314/411/14/078 – LEACHATE MANAGEMENT SERVICES AT STAPYLTON LANDFILL: EXPRESSION OF INTEREST LG314/411/14/078(P1) A preferred commercial delivery model may likely be dependent upon the selected

technology. An expression of interest process permits industry to identify delivery models that would provide the best technical and financial outcomes.

The optimum contract duration to elicit the most advantageous service is unknown. Given the variety of potential technologies and commercial arrangements an

expression of interest process is the recommended route for Council to demonstrate due diligence in engaging market capability, in order to seek a best value for money solution.

6 ALIGNMENT TO BOLD FUTURE VISION, CORPORATE PLAN, OPERATIONAL PLAN The project is aligned with the following Bold Future Key Focus Areas, and relevant Outcomes and Action Statements. KEY FOCUS AREA 1 - A CITY LEADING BY EXAMPLE Outcome: In 2014 we will have a city where: 1.1 there are strong foundations for a sustainable city. Action Statement: What we will do to achieve this will be to: 1.1.1 encourage consideration of the environmental, social and economic impact that our

decisions will have on the city now and in the future. KEY FOCUS AREA 2 - A CITY LOVED FOR ITS GREEN, GOLD AND BLUE Outcome: In 2014 we will have a city where: 2.6 We manage resources and waste responsibly for the benefit of future generations

Action Statements: What we will do to achieve this will be to: 2.6.1 Promote resource conservation and implement sustainable waste management

practices across Gold Coast City.

2.6.2 Reduce greenhouse gas emissions through continuous improvements to the management of waste.

2.6.3 Migrate waste management practices towards waste reuse, diversion of waste from landfills and alternative waste technologies.

2.6.4 Develop reuse opportunities for different types of waste to maximise the usage of each resource and support the conservation of the environment. The Gold Coast Waste Management (GCWM) Unit’s expenditure program is intended to align with and support the emerging City Plan. GCWM’s primary objective is to provide an excellent solid waste management service that is cost effective and efficient, and prevents harm to human health and the environment. This objective is delivered through four programs: Solid Waste Collections, Solid Waste Disposal, Solid Waste Minimisation and the 2020 Vision on Waste.

669th Council Meeting 19 November 2013 43 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 3 (Continued) CONTRACT NO. LG314/411/14/078 – LEACHATE MANAGEMENT SERVICES AT STAPYLTON LANDFILL: EXPRESSION OF INTEREST LG314/411/14/078(P1) In delivering these programs, GCWM:

ensures that all existing and new solid waste collection, treatment and disposal services are conducted, and sites and facilities designed and operated so that adverse public health and environment impacts; e.g. greenhouse gas emissions, are minimal

undertake facilities research, development, assessment and delivery of waste reuse, diversion of waste from landfills and alternative waste technologies as appropriate

The following relevant performance measures are identified in the 2013-14 Gold Coast Waste Management Performance Plan.

Strategic Outcomes Performance Measures

1

Waste avoidance, reuse, recycling and recovery opportunities are maximised prior to landfill disposal

Total waste recycled/recovered (%) Total domestic waste recycled/recovered (%) Total commercial and industrial waste

recycled/recovered (%) Total construction and demolition waste

recycled/recovered (%)

2 Future waste management capacity is secured Disposal capacity (years)

3

Solid waste management has minimal impact on our environment and public health

Avoided emissions from landfill gas capture (tonnes CO2 equivalent)

Avoided emissions from waste diversion (tonnes CO2 equivalent)

Complaints (number per 1000 households) Customer satisfaction level (%) Penalties from non-compliances (number)

4

The community and Council are engaged in positive waste behaviours and sustainable waste management activities

Domestic waste disposal rate (kg per household per year)

Non-recyclables (contaminants) recovered at Materials Recovery Facility (%)

Council generated waste recycled/recovered (%) Illegally dumped waste collected (tonnes)

7 FUNDING AND RESOURCING REQUIREMENTS Budget/funding considerations At this stage most of the work for which these services are intended cannot be defined with any certainty ahead of the actual need. The current funding arrangements for the Stapylton landfill leachate management is as follows:

Budget Centre Cost Centre Budget (excl. GST)

CS4700O005 Landfill Operations

1004658 Stapylton Landfill Operations

$ 6,540,839

CS4700C003 Refuse Tips Capital

Project Number 30486 Stapylton WWTP Leachate System

$ 916,977

669th Council Meeting 19 November 2013 44 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 3 (Continued) CONTRACT NO. LG314/411/14/078 – LEACHATE MANAGEMENT SERVICES AT STAPYLTON LANDFILL: EXPRESSION OF INTEREST LG314/411/14/078(P1) Subject to the outcomes of the expression of interest and subsequent tender, a further capital allocation is to be sought for Financial Year 2014-15. People and Culture No extra staff will be required for this project. 8 RISK MANAGEMENT The following corporate risks are to be considered, and the relevant mitigation measures applied. CO00048: Failure of environmental protection measures at waste facility sites

resulting in environmental harm and or negative impacts on public health. CO000435: Failure to achieve a sustainable financial position leading to negative

impacts on Council’s ability to deliver on its key focus area commitments. 9 STATUTORY MATTERS The expression of interest and subsequent tender process is to be carried out in accordance with the Local Government Regulation 2012 which requires adherence to sound contracting principles. These principles are defined in Section 104(3) of the Local Government Act 2009 and are as follows. Value for money. Open and effective competition. The development of competitive local business and industry. Environmental protection. Ethical behaviour and fair dealing. These principles form part of the tender process and are reinforced within the tender evaluation criteria as appropriate. Section 228(3), (5) and (6) of the Local Government Regulation 2012 provides, that if in the public interest, to invite expressions of interest before inviting written tenders, and record the reasons for making the resolution. 10 COUNCIL POLICIES The expression of interest and subsequent tender process is to be carried out in accordance with the requirements of Council’s Procurement Policy and Standards. 11 DELEGATIONS Not applicable. 12 COORDINATION AND CONSULTATION In the table below, identify how internal and external stakeholders have been involved / participated in the proposal to date and the outcome of that participation.

669th Council Meeting 19 November 2013 45 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 3 (Continued) CONTRACT NO. LG314/411/14/078 – LEACHATE MANAGEMENT SERVICES AT STAPYLTON LANDFILL: EXPRESSION OF INTEREST LG314/411/14/078(P1)

Title and/or name of the Stakeholder consulted



Manager Waste and Resources Management

Community Services Yes

Senior Coordinator Waste Operations and Infrastructure


Coordinator Waste Management Infrastructure


Right to Information (RTI) and Information Privacy (IP) Legislation 2009 The RTI/IP considerations are as follows. Naming External Stakeholders (Personal Information).

Not applicable.


13 STAKEHOLDER IMPACTS External / community stakeholder impacts Not applicable. Internal (organisational) stakeholder impacts Not applicable. 14 TIMING The anticipated time frames are: Expression of Interest to be advertised in January 2014. Tenders to be invited in April 2014. Contract awarded in June 2014. 15 CONCLUSION It is recommended that it is in the public interest and the most advantageous outcome for Council to invite expressions of interests for the delivery of leachate management services for the Stapylton landfill site before inviting written tenders.

669th Council Meeting 19 November 2013 46 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 3 (Continued) CONTRACT NO. LG314/411/14/078 – LEACHATE MANAGEMENT SERVICES AT STAPYLTON LANDFILL: EXPRESSION OF INTEREST LG314/411/14/078(P1) 16 RECOMMENDATION It is recommended that Council resolves as follows. That it is in the public interest to invite expressions of interest for the provision of leachate management services for the Stapylton Landfill site (LG314/411/14/078) prior to inviting written tenders. Author: Authorised by:

Jackie Thompson Glen Potter Executive Coordinator Source to Contract Director Organisational Services 30 October 2013 ispot # 41791919

COMMITTEE RECOMMENDATION GA13.1114.003 moved Cr Tozer seconded Cr Bell That it is in the public interest to invite expressions of interest for the provision of leachate management services for the Stapylton Landfill site (LG314/411/14/078) prior to inviting written tenders.

CARRIED

669th Council Meeting 19 November 2013 47 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 4 ORGANISATIONAL SERVICES CONTRACT NO. LG314/411/14/071 – COLLECTION AND DISPOSAL OF HOUSEHOLD HAZARDOUS WASTE FROM TWO COUNCIL WASTE AND RECYCLING CENTRES LG314/411/14/071 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT This report seeks approval to establish preferred supplier arrangement LG314/411/14/071 for the collection and disposal of household hazardous waste from the Merrimac and Helensvale Waste and Recycling Centre’s for a period of two years with a one year extension option. 4 PREVIOUS RESOLUTIONS Not applicable. 5 DISCUSSION Council’s Waste and Resource Management Branch (Community Services) has an ongoing need for the collection and disposal of household hazardous waste from the Merrimac and Helensvale Waste and Recycling Centres in order to ensure that all household hazardous waste from the recycling program is disposed of in an environmentally friendly manner and complies with the relevant local, federal and state legislation (Environmental Protection (Waste Management) Regulation 2000 and the Hazardous Waste (Regulation of Exports and Imports) Act 1989). Hazardous waste includes, for example, acids, aerosols, alkali, general household cleaners, chemicals, hydrocarbons and fuels, paints, varnishes and pesticides. Council has an existing contract in place for the collection and disposal of household hazardous waste with Toxfree (Queensland) Pty Ltd. This contract is due to expire on 6 December 2013. Council has again determined that the most advantageous and operationally suitable method of delivering this service is to establish a preferred supplier arrangement funded by a budget extending beyond one financial year. Tenders were invited by advertising in the Gold Coast Bulletin and Courier Mail, LG Tender Box and the City of Gold Coast websites on 7 September 2013. The tender period closed on 1 October 2013. The following tenders were received.

Tenderer

1 Toxfree (Queensland) Pty Ltd

2 Transpacific Industries Pty Ltd

As the work involved is highly specialised, a limited response was anticipated.

669th Council Meeting 19 November 2013 48 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/411/14/071 – COLLECTION AND DISPOSAL OF HOUSEHOLD HAZARDOUS WASTE FROM TWO COUNCIL WASTE AND RECYCLING CENTRES LG314/411/14/071 The tenders were evaluated using a three gate evaluation process incorporating the tender evaluation criteria that formed part of the tender documents. Evaluations were undertaken by three officers of Council and the result was reviewed independently by an additional officer. The names of the evaluation team and the scoring matrix with assigned weightings are on file for reference. The first gate of the evaluation process considered the evaluation of the following specific mandatory criteria. Environmental Protection Act 1994 (EPA) licences:

(a) Environmentally Relevant Activity (ERA) 55 – Regulated waste recycling, or equivalent (if saleable product is produced) for each treating facility.

(b) Environmentally Relevant Activity (ERA) 57 – Transporting regulated waste. (c) Environmentally Relevant Activity (ERA) 58 – Regulated waste treatment, or

equivalent for each treating facility.

Certified Work Health and Safety (WHS) policy/procedure. Certified quality assurance (QA) systems. Qualified chemist for chemical identification (bachelor degree or higher). The first gate of the evaluation process found both tenders to be conforming to the mandatory requirements of Council’s tender documents. The second gate of the evaluation process considered the evaluation of the following scoring criteria and determined those suppliers deemed capable of meeting Council’s requirements. Collection methodology. Beneficial reuse. Processing/proposed subcontractors. Vehicles, plant and equipment. Past performance / relevant experience. Staff qualifications. Local Business and Industry. Gold Coast Business Excellence Awards. The resultant aggregated scores were as follows.

Evaluation Score

(without Local

Content)

Local Business

and Industry

Gold Coast

Business Excellence

Awards

Evaluation Score

(with Local Content)

Tenderers

(out of 83) (out of 15) (out of 2) (out of 100%)

1 Toxfree (Queensland) Pty Ltd 59 2 0 61%

2 Transpacific Industries Pty Ltd 54 6 0 60%

Both tenderers scored sufficiently in the evaluation of their capability and were determined as suppliers capable of meeting Council’s requirements. As a result, these tenderers were moved through to the third evaluation gate.

669th Council Meeting 19 November 2013 49 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/411/14/071 – COLLECTION AND DISPOSAL OF HOUSEHOLD HAZARDOUS WASTE FROM TWO COUNCIL WASTE AND RECYCLING CENTRES LG314/411/14/071 The third gate of the evaluation process considered the value for money of those tenderers who are considered capable, based on the total tendered amount. For the purposes of obtaining competitive tender offers and evaluating these equitably, estimates were given of the volumes of work likely to be ordered over the period of the contract. The total amounts received are listed below.

Tenderers

Local Business

and Industry

Gold Coast

BusinessExcellence

Awards

Total Amount (excl. GST) for 2 years

1 Toxfree (Queensland) Pty Ltd 2 0 $ 399,193

2 Transpacific Industries Pty Ltd 6 0 $ 606,832

Council’s estimate was: $ 540,000

Applying the 15 percent pricing advantage for tenders with a value less than $600,000 per annum, to Gold Coast businesses or businesses with a branch office on the Gold Coast employing a minimum of 5 FTEs, does not change the outcome. Toxfree (Queensland) Pty Ltd is considered capable of undertaking the works and has satisfied the evaluation team of their clear understanding of the scope of work, that this is not at variance with the requirements of the tender document and have also satisfied the evaluation team as to their ability to complete this contract in addition to their current contractual commitments.

6 ALIGNMENT TO BOLD FUTURE VISION, CORPORATE PLAN, OPERATIONAL PLAN The project is aligned with the following Bold Future Key Focus Areas, and relevant Outcomes and Action Statements. KEY FOCUS AREA 1 - A CITY LEADING BY EXAMPLE


1.1 There are strong foundations for a sustainable city.

1.2 The community is actively involved in the city.

Action Statements: What we will do to achieve this will be to:

1.1.1 Encourage consideration of the environmental, social and economic impact that our decisions will have on the city now and in the future.

1.1.2 Support Gold Coast businesses and residents to adopt sustainable living practices.

1.1.5 Encourage the uptake of Local, State and Federal programs which support sustainable practices.

1.2.2 Encourage community participation through local groups, not-for-profit organisations and volunteering activities.

669th Council Meeting 19 November 2013 50 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/411/14/071 – COLLECTION AND DISPOSAL OF HOUSEHOLD HAZARDOUS WASTE FROM TWO COUNCIL WASTE AND RECYCLING CENTRES LG314/411/14/071 KEY FOCUS AREA 2 - A CITY LOVED FOR ITS GREEN, GOLD AND BLUE


2.6 We manage resources and waste responsibly for the benefit of future generations.

Action Statements: What we will do to achieve this will be to:

2.6.1 Promote resource conservation and implement sustainable waste management practices across Gold Coast City.

2.6.2 Reduce greenhouse gas emissions through continuous improvements to the management of waste.

2.6.3 Migrate waste management practices towards waste reuse, diversion of waste from landfills and alternative waste technologies.

2.6.4 Develop reuse opportunities for different types of waste to maximise the usage of each resource and support the conservation of the environment.

7 FUNDING AND RESOURCING REQUIREMENTS Budget/funding considerations The estimated contract cost per financial year is summarised below. Estimated Cost for Financial Years

Duration Estimate (excl. GST)

2013-14 6.75 months $112,273

2014-15 12 months $199,596

2015-16 5.25 months $ 87,324

Total Cost: $ 399,193

Sufficient funds remain in Budget Centre CS4700O004 for the 2013-14 financial year to provide these services for this financial year. Similar budgets will be submitted by the Asset Custodian to Council for approval for each of the subsequent two financial years. This contract is a Schedule of Rates contract for two years. No total financial commitment will be entered into with the successful tenderer at this stage. Payments will be made to the Contractor based on the rates tendered, multiplied by the actual quantum of work undertaken. In accordance with the budget review guidelines the following circumstances require referral to the Corporate Governance & Finance Committee

Not applicable.

People and Culture

No extra staff will be required for this project.

8 RISK MANAGEMENT

The project risks have been identified and relevant mitigation measures applied. The risk assessment is on file for reference.

669th Council Meeting 19 November 2013 51 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/411/14/071 – COLLECTION AND DISPOSAL OF HOUSEHOLD HAZARDOUS WASTE FROM TWO COUNCIL WASTE AND RECYCLING CENTRES LG314/411/14/071 9 STATUTORY MATTERS The tender process has been carried out in accordance with the Local Government Regulation 2012 which requires adherence to sound contracting principles. These principles are defined in Section 104(3) of the Local Government Act 2009 and are as follows.

Value for money. Open and effective competition. The development of competitive local business and industry. Environmental protection. Ethical behaviour and fair dealing.

These principles form part of the tender process and are reinforced within the tender evaluation criteria as appropriate. Section 233 of the Local Government Regulation 2012 provides for the creation of a preferred supplier arrangement for the supply of particular goods or services. 10 COUNCIL POLICIES The tender process has been carried out in accordance with the requirements of Council’s Procurement Policy and Standards. 11 DELEGATIONS

Not applicable. 12 COORDINATION AND CONSULTATION

Title of the Stakeholder consulted Directorate or Organisation


Manager Waste and Resources Community Services Yes

Senior Coordinator, Waste Operations & Infrastructure


Senior Contracts Officer, Waste Operations


Senior Environmental Officer, Waste Operations


Right to Information (RTI) and Information Privacy (IP) Legislation 2009

The RTI/IP considerations are as follows.

Naming External Stakeholders (Personal Information).

Not applicable.


669th Council Meeting 19 November 2013 52 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/411/14/071 – COLLECTION AND DISPOSAL OF HOUSEHOLD HAZARDOUS WASTE FROM TWO COUNCIL WASTE AND RECYCLING CENTRES LG314/411/14/071 13 STAKEHOLDER IMPACTS External / community stakeholder impacts No adverse impacts are expected to be experienced by external / community stakeholders during the undertaking of this work. Benefits include provision of the collection and disposal service for household hazardous waste for the City of Gold Coast community which assists in the reduction of unlawful disposal of household hazardous waste which could be harmful for the environment and wildlife. Internal (organisational) stakeholder impacts Not applicable. 14 TIMING The anticipated contract start date is 7 December 2013. 15 CONCLUSION The recommended tenderer is experienced in the type of work to be undertaken. The evaluation of the tenders received indicates that the offer submitted by Toxfree (Queensland) Pty Ltd is the one most advantageous to Council and should be recommended for acceptance for a period of two years with a one year extension option. 16 RECOMMENDATION It is recommended that Council resolves as follows. 1 That Council accepts the tender submitted by Toxfree (Queensland) Pty Ltd for the

tendered rates (excluding GST) without rise and fall to establish preferred supplier arrangement LG314/411/14/020 for the Collection and Disposal of Household Hazardous Waste from the Merrimac and Helensvale Waste and Recycling Centre’s for two years with a one year extension option.

2 That it be noted that the contract will require funding over three financial years and that similar budgets to that approved for the 2013-14 financial year will be submitted for approval by the Asset Custodian in each of the two subsequent financial years. The total expenditure over the contract period is anticipated to be $399,193. Funding will be allocated from individual projects within Budget Centre CS4700O004.


Debbie Gist Glen Potter Procurement Contracts Officer Director Organisational Services 24 October 2013 ispot # 41854883

669th Council Meeting 19 November 2013 53 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/411/14/071 – COLLECTION AND DISPOSAL OF HOUSEHOLD HAZARDOUS WASTE FROM TWO COUNCIL WASTE AND RECYCLING CENTRES LG314/411/14/071 COMMITTEE RECOMMENDATION GA13.1114.004 moved Cr Tozer seconded Cr Bell 1 That Council accepts the tender submitted by Toxfree (Queensland) Pty Ltd for

the tendered rates (excluding GST) without rise and fall to establish preferred supplier arrangement LG314/411/14/020 for the Collection and Disposal of Household Hazardous Waste from the Merrimac and Helensvale Waste and Recycling Centre’s for two years with a one year extension option.

2 That it be noted that the contract will require funding over three financial years and that similar budgets to that approved for the 2013-14 financial year will be submitted for approval by the Asset Custodian in each of the two subsequent financial years. The total expenditure over the contract period is anticipated to be $399,193. Funding will be allocated from individual projects within Budget Centre CS4700O004.

CARRIED

669th Council Meeting 19 November 2013 54 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 5 OFFICE OF THE CHIEF EXECUTIVE OFFICER DRAFT CITY OF GOLD COAST ANNUAL REPORT 2012-13 LG449/756/02(P3) Attachment 1 – Draft City of Gold Coast Annual Report 2012-13 (separate attachment) 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT To present the draft City of Gold Coast Annual Report 2012-13 for endorsement. 4 PREVIOUS RESOLUTIONS Not applicable. 5 DISCUSSION The Annual Report 2012-13 (the Report) provides a comprehensive summary of the city’s significant achievements during 2012-13, providing transparency and accountability to the community for the City of Gold Coast’s actions and expenditure. The theme of the Report focuses on Key Focus Area 3, “A city connecting people and places” and highlights connections, including the Transport Strategy, Sister Cities, Global Connections Program, and Coomera Community Hub. It also introduces the new City Vision and City Brand, with the design and photography of the Report reflecting the new City Brand. The Report complies with the provisions of the Local Government Act 2009 (the Act) , Local Government Regulation 2012 (the Regulation) and other relevant legislation. The Report includes:

the general purpose financial statement for 2012-13 the current year financial sustainability statement the long-term financial sustainability statement the community financial statement the Independent Auditor’s Report

A final proof-read , as well as the completion of the Report’s indexing, page references and acknowledgements, will be completed before it is published. Any further amendments to the draft Report will generally be limited to grammatical or typographic errors or minor amendments to the layout and photos. These final amendments be referred to the Chief Executive Officer for approval to ensure compliance with legislative timeframes. It is expected that this will be the final year of reporting against the Corporate Plan 2009-14, with a new Corporate Plan expected to be endorsed by Council in the coming months.

669th Council Meeting 19 November 2013 55 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 5 (Continued) DRAFT CITY OF GOLD COAST ANNUAL REPORT 2012-13 LG449/756/02(P3) 6 ALIGNMENT TO BOLD FUTURE VISION, CORPORATE PLAN, OPERATIONAL

PLAN The Report describes Council’s progress in achieving the Key Focus Area targets for the Corporate Plan 2009-14. The scorecard in sections 1.4 and 1.5 of the Report provide an overview of Council’s performance in terms of implementing the Corporate Plan and Operational Plan during 2012-13. 7 FUNDING AND RESOURCING REQUIREMENTS A budget of $67,697 is available for the design and production of the Report. 9 STATUTORY MATTERS Legislation relating to local government annual reporting include the Local Government Act 2009, Public Sector Ethics Act 1994, Public Interest Disclosure Act 2012, Auditor-General Act 2009 and Water Supply (Safety and Reliability) Act 2008. Sections 182-190 of the Local Government Regulation 2012 provide for the preparation and contents of a local government annual report. The use of photographs and other personal information contained in the Report complies with the provisions of the Information Privacy Act 2009. 10 COUNCIL POLICIES Not applicable 11 DELEGATIONS Not applicable 12 COORDINATION & CONSULTATION The draft Report was compiled in consultation with the Executive Leadership Team and the relevant managers and staff from each directorate. Name and/or Title of the Stakeholder Consulted



Mayor and Councillors Not applicable Information relating to the Mayor or Councillors was provided by the Mayor’s office, Councillor PAs and the Manager Council Support

CEO and Directors All directorates Yes

669th Council Meeting 19 November 2013 56 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 5 (Continued) DRAFT CITY OF GOLD COAST ANNUAL REPORT 2012-13 LG449/756/02(P3) 13 STAKEHOLDER IMPACTS The Report is a significant document for communicating the City’s 2012-13 achievements to the community. To facilitate that communication and ensure the Report is easily available to the public:

150 hard copies will be printed (as per the previous year). Copies will be available in libraries and Council customer service areas. Copies will also be made available to Councillors and Directors on request

a PDF version and Flipbook version will be available on the Council website. business and community contacts, state and federal Members of Parliament and

Council staff will be informed of the Report via email and reference to the website link.

14 TIMING In accordance with section 182 of the Regulation, Council is required to:

adopt the Report within 1 month after receiving the Auditor-General’s report on the financial statement; and

publish the Report on its website within 2 weeks of adopting the Report.

15 CONCLUSION The Annual Report 2012-13 provides a comprehensive summary of the city’s significant achievements during the year, providing transparency and accountability to the community for the City of Gold Coast’s actions and expenditure, whilst also meeting legislative requirements. It is expected that this will be the final year of reporting against the Corporate Plan 2009-14, with a new Corporate Plan expected to be endorsed by Council in the coming months. 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 The draft City of Gold Coast Annual Report 2012-13 be adopted.

2 The Chief Executive Officer be authorised to approve any further amendments to the City of Gold Coast Annual Report 2012-13 prior to publication.


Sarah Wilton Joe McCabe Manager, Corporate Planning & Performance Chief Operating Officer 4 November 2013 4 November 2013

TRACKS\41864734\1

669th Council Meeting 19 November 2013 57 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 5 (Continued) DRAFT CITY OF GOLD COAST ANNUAL REPORT 2012-13 LG449/756/02(P3) Changed Recommendation COMMITTEE RECOMMENDATION GA13.1114.005 moved Cr Gilmore seconded Cr Caldwell 1 The draft City of Gold Coast Annual Report 2012-13 be adopted, incorporating

the following as attached to this report:

a Replacement pages for pages 161 & 162:

i Current Year Financial Sustainability Statement (1 Page)

ii Long Term Financial Sustainability Statement (3 pages)

b Additional pages to be inserted:

i Independent Auditor’s report (2 pages)

2 The Chief Executive Officer be authorised to approve any further amendments to the City of Gold Coast Annual Report 2012-13 prior to publication.

CARRIED

669th Council Meeting 19 November 2013 Governance Administration & Finance Committee Meeting 14 November 2013

58 Adopted Report

00583

Typewritten Text

00583

Typewritten Text

00583

Typewritten Text

00583

Typewritten Text

00583

Typewritten Text

00583

Typewritten Text

00583

Typewritten Text

Item 5 Attachment 1

00583

Typewritten Text

00583

Typewritten Text

00583

Typewritten Text


59 Adopted Report


60 Adopted Report


61 Adopted Report


62 Adopted Report


63 Adopted Report

669th Council Meeting 19 November 2013 64 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 6 OFFICE OF THE CHIEF EXECUTIVE OFFICER AUDIT COMMITTEE MEETING - 24 OCTOBER 2013 LG115/1190/04/14/CF(P2) #41879716 Refer 10 page attachment (#41912295) 1 BASIS FOR CONFIDENTIALITY 1.1 I recommend that this report be considered in Closed Session pursuant to section

275 (1) of the Local Government Regulation 2012 for the reason that the matter involves

(h) other business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage.

1.2 I recommend that the report/attachment be deemed a confidential document and be treated as such in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2 EXECUTIVE SUMMARY

Not Applicable.

3 PURPOSE OF REPORT To present to Council the Audit Committee’s recommendations arising from the Final 2012-13 Financial Statements meeting held on 24 October 2013. 4 PREVIOUS RESOLUTIONS GA12.1211.015 In part

That Council adopt the recommendations of the Audit Advisory Committee determined at its meeting held on 26 November 2012 –2011-12 Final Financial Statements and 2012-13 Quarterly Meeting detailed as follows:

5 DISCUSSION The Audit Committee met on 24 October 2013 to review the final 2012-13 Financial Statements of Council of the City of Gold Coast (Council) and Gold Coast Arts Centre (GCAC). In addition to the committee members, the meeting was attended by the Chief Executive Officer, Chief Operating Officer, Manager Corporate Finance, Manager Internal Audit, representatives of the Queensland Audit Office, and various Council officers (in part). The Manager Corporate Finance provided the following reports to the committee relating to Council’s final financial statements:

Final Directors Management Representations for 2012-13

Final 2012-13 Financial Statements – Council of the City of Gold Coast

2012-13 Current Year and Long-Term Financial Sustainability Statements These reports were discussed in detail with officers from Corporate Finance and representatives from QAO, including significant discussion around the newly required Financial Sustainability Statements.

669th Council Meeting 19 November 2013 65 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 6 (Continued) AUDIT COMMITTEE MEETING - 24 OCTOBER 2013 LG115/1190/04/14/CF(P2) #41879716 In particular, Members of the committee supported management’s view that additional explanatory notes were required to be added to the Financial Sustainability Statement to provide further disclosure regarding Council’s financial position. The committee was confident that agreement could be reached between the QAO and Council management in relation to the final wording of such disclosures. This was satisfactorily achieved subsequent to the meeting. Representatives from the QAO provided an update on finalisation of the 2012-13 audit and tabled their Closing Report with the committee (attached). The QAO representatives advised Council could expect an “unmodified” audit opinion and that no high risk issues had been identified to date. This was noted by the Audit Committee as an excellent result for Council. The committee also acknowledged the professional efforts of Council’s Corporate Finance staff and the constructive working relationship between Council and QAO officers throughout the course of the 2012-13 audit. Reports were also considered by the committee relating to:

Final 2012-13 Financial Statements – Gold Coast Arts Centre Controlled Entity

Update on Management Progress on 2012-13 QAO Interim Report findings

Draft Annual Report and Compliance Checklist At the conclusion of the meeting, the Audit Committee held an “in-camera” meeting with the representatives from the QAO to discuss the timeliness, efficiency and effectiveness of the year end close and audit process, including lessons learned for next year. Subsequent to the meeting, the QAO advised that Council’s financial statements and those of the controlled entities, were certified by the Auditor-General by the 31 October reporting deadline, and that “unmodified” audit opinions had been issued in all cases. The Audit Committee chair was authorised by the other committee members to add a “post-meeting” minute to the record of the meeting to reflect this.

6 ALIGNMENT TO BOLD FUTURE VISION, CORPORATE PLAN, OPERATIONAL

PLAN Corporate Plan Corporate governance, organisational capability and customer contact: A - Delivering effective corporate governance: A.2.4 Organisational Foundations. 7 FUNDING AND RESOURCING REQUIREMENTS The activities of the Audit Committee are funded from CE8120 - Internal Audit. 8 RISK MANAGEMENT Council’s Risk Management Information System includes identified risks and mitigations.

669th Council Meeting 19 November 2013 66 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 6 (Continued) AUDIT COMMITTEE MEETING - 24 OCTOBER 2013 LG115/1190/04/14/CF(P2) #41879716 9 STATUTORY MATTERS Local Government Act 2009 Local Government Regulation 2012 10 COUNCIL POLICIES Internal Audit Policy Audit Committee Policy 11 DELEGATIONS Not Applicable. 12 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted



Audit Committee Chair External Independent Yes 13 STAKEHOLDER IMPACTS Not Applicable. 14 TIMING This report is provided to the next Council meeting following the Audit Committee meeting, as required by Local Government Regulation 2012. 15 CONCLUSION

This written report of the matters reviewed and specific recommendations made by the Audit Committee at its meeting of 24 October 2013 is provided to Council in accordance with section 211(1)(c) of the Local Government Regulation 2012.

As evidenced by the specific recommendations contained in this report, committee members have reviewed and considered a range of reports and engaged in robust discussions with Council’s reporting officers and external auditors, in order to satisfy themselves that a sound process was undertaken during the preparation and audit of Council’s 2012-13 financial statements.

The committee extends its appreciation to all Council officers involved in the preparation and audit of the 2012-13 financial statements and congratulates management on the positive outcomes obtained from this year’s audit process.

669th Council Meeting 19 November 2013 67 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 6 (Continued) AUDIT COMMITTEE MEETING - 24 OCTOBER 2013 LG115/1190/04/14/CF(P2) #41879716 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the report/attachment be deemed a confidential document and be treated as such

in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2 That Council adopt the recommendations of the Audit Committee determined at its meeting held on 24 October 2013 – Final Financial Statements Meeting as follows:

AC13.1024.001 – Conflicts of Interest Declarations

a That the Audit Committee notes no new declarations from external members.

AC13.1024.002 – Minutes of Previous AC Meeting

b That the Audit Committee notes that recommendations of its prior meeting held on 2 September 2013 were resolved at the Governance Administration and Finance Committee Meeting of 12 September 2013 and adopted at Council Meeting #666 on 17 September, without change.

AC13.1024.003 – Audit Committee Action Request Register

c That the Audit Committee notes the update on action requests from prior committee meetings.

AC13.1024.004 – 2012-13 Final Directors Management Representations

d That the Audit Committee notes the year end management representations.

AC13.1024.005 – 2012-13 Financial Statements – Council of the City of Gold Coast

e That the Audit Committee recommends the 2012-13 financial statements of Council of the City of Gold Coast for certification by the Mayor and Chief Executive Officer, subject to finalisation of the external audit and any audit changes to the financial statements.

f That the Audit Committee acknowledges the professional effort of the finance staff of Council in preparing the financial statements.

g That the Audit Committee notes that the QAO has advised that an unmodified auditor’s report is currently proposed.

h Subsequent to the meeting, Council’s Financial Statements were certified by the Auditor-General on 31 October 2013 in accordance with legislative timeframes. The audit certification included the expected unmodified audit opinion.

AC13.1024.006 – 2012-13 Current Year and Long-term Financial Sustainability Statements

i That the Audit Committee recommends the Current Year Financial Sustainability Statement for the year ended 30 June 2013 for certification by the Mayor and Chief Executive Officer, subject to finalisation of the external audit and any audit changes to the financial statements.

j That the Audit Committee, based on assurances from Manager Corporate Finance, that the various calculations are derived from Council’s long term financial forecast, recommends the Long-term Financial Sustainability Statement prepared as at 30 June 2013 for certification by the Mayor and Chief Executive Officer.

669th Council Meeting 19 November 2013 68 Governance Administration & Finance Committee Meeting 14 November 2013 Adopted Report ITEM 6 (Continued) AUDIT COMMITTEE MEETING - 24 OCTOBER 2013 LG115/1190/04/14/CF(P2) #41879716

AC13 1024.007 – QAO External Audit Update

k That the Audit Committee notes the QAO’s “Closing Report for the Council of City of Gold Coast 30 June 2013” tabled at the meeting, and verbal update provided by QAO officers.

l The Audit Committee acknowledges the professional and constructive working relationship between the QAO and Council which has contributed to the positive audit outcome for 2012–13.

AC13.1024.008 – 2012-13 Gold Coast Arts Centre Financial Statements

m That the Audit Committee notes the 2012-13 financial statements of Gold Coast Arts Centre as presented.

AC13.1024.009 – QAO 2012-13 First Interim Report Findings - Management Action Plan Progress and Update

n That the Audit Committee notes the update on the QAO 2012-13 First Interim Management Report findings and recommendations, and the progress update by the relevant council manager/s as at 15th October 2013.

AC13.1024.010 – QAO 2012-13 Second Interim Management Report Findings - Management Action Plan

o The Audit Committee notes the update on Council’s progress in addressing the findings and recommendations of the QAO Second Interim Management Report of 2012-13.

p The Audit Committee notes the Chief Procurement Officer has been scheduled to provide a report / presentation to the Committee on a range of matters relating to procurement in Council, including further progress on matters raised by the Queensland Audit Office.

q The Audit Committee requests a further report at its next meeting on the finalisation of the standardised expenditure limit model.

AC13.1024.011 – 2012-13 Draft Annual Report And Compliance Checklist

r That the Audit Committee notes the draft Annual Report 2012-13

s That the Audit Committee notes the completed Annual Report Compliance Checklist (Attachment 12.2 - responding to AAC resolution AAC12 0806.014)


Grant Mather Dale Dickson Manager Internal Audit Chief Executive Officer 4 November 2013 5 November 2013 TRACKS REF:41879716


ITEM 6 (Continued) AUDIT COMMITTEE MEETING - 24 OCTOBER 2013 LG115/1190/04/14/CF(P2) #41879716

RECOMMENDATION CHANGED AT COUNCIL 19 NOVEMBER 2013 COMMITTEE RECOMMENDATION GA13.1114.006 moved Cr Tozer seconded Cr Bell 1 That the report/attachment be deemed a confidential document and be treated as

such in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.


AC13.1024.001 – Conflicts of Interest Declarations

a That the Audit Committee notes no new declarations from external members.

AC13.1024.002 – Minutes of Previous AC Meeting

b That the Audit Committee notes that recommendations of its prior meeting held on 2 September 2013 were resolved at the Governance Administration and Finance Committee Meeting of 12 September 2013 and adopted at Council Meeting #666 on 17 September, without change.

AC13.1024.003 – Audit Committee Action Request Register

c That the Audit Committee notes the update on action requests from prior committee meetings.


d That the Audit Committee notes the year end management representations.


e That the Audit Committee recommends the 2012-13 financial statements of Council of the City of Gold Coast for certification by the Mayor and Chief Executive Officer, subject to finalisation of the external audit and any audit changes to the financial statements.

f That the Audit Committee acknowledges the professional effort of the finance staff of Council in preparing the financial statements.

g That the Audit Committee notes that the QAO has advised that an unmodified auditor’s report is currently proposed.

h Subsequent to the meeting, Council’s Financial Statements were certified by the Auditor-General on 31 October 2013 in accordance with legislative timeframes. The audit certification included the expected unmodified audit opinion.


i That the Audit Committee recommends the Current Year Financial Sustainability Statement for the year ended 30 June 2013 for certification by the Mayor and Chief Executive Officer, subject to finalisation of the external audit and any audit changes to the financial statements.



j That the Audit Committee, based on assurances from Manager Corporate Finance, that the various calculations are derived from Council’s long term financial forecast, recommends the Long-term Financial Sustainability Statement prepared as at 30 June 2013 for certification by the Mayor and Chief Executive Officer.

AC13.1024.007 – QAO External Audit Update

k That the Audit Committee notes the QAO’s “Closing Report for the Council of City of Gold Coast 30 June 2013” tabled at the meeting, and verbal update provided by QAO officers.

l The Audit Committee acknowledges the professional and constructive working relationship between the QAO and Council which has contributed to the positive audit outcome for 2012–13.


m That the Audit Committee notes the 2012-13 financial statements of Gold Coast Arts Centre as presented.


n That the Audit Committee notes the update on the QAO 2012-13 First Interim Management Report findings and recommendations, and the progress update by the relevant council manager/s as at 15th October 2013.

AC13.1024.010 – QAO 2012-13 Second Interim Management Report Findings - Management Action Plan

o The Audit Committee notes the update on Council’s progress in addressing the findings and recommendations of the QAO Second Interim Management Report of 2012-13.

p The Audit Committee notes the Chief Procurement Officer has been scheduled to provide a report / presentation to the Committee on a range of matters relating to procurement in Council, including further progress on matters raised by the Queensland Audit Office.

q The Audit Committee requests a further report at its next meeting on the finalisation of the standardised expenditure limit model.


r That the Audit Committee notes the draft Annual Report 2012-13

s That the Audit Committee notes the completed Annual Report Compliance Checklist (Attachment 12.2 - responding to AAC resolution AAC12 0806.014)

CARRIED



COUNCIL RESOLUTION 19 NOVEMBER 2013 RESOLUTION G13.1119.021 Moved Cr Robbins Seconded Cr Owen-Jones

That Committee Recommendation GA13.1114.006 be adopted, with a change to Part 1, such that it reads in its entirety as follows: 1 That the report/attachment be deemed non-confidential except for those parts

deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.


AC13. 1024.001 – Conflicts of Interest Declarations

t That the Audit Committee notes no new declarations from external members.

AC13. 1024.002 – Minutes of Previous AC Meeting

u That the Audit Committee notes that recommendations of its prior meeting held on 2 September 2013 were resolved at the Governance Administration and Finance Committee Meeting of 12 September 2013 and adopted at Council Meeting #666 on 17 September, without change.

AC13. 1024.003 – Audit Committee Action Request Register

v That the Audit Committee notes the update on action requests from prior committee meetings.


w That the Audit Committee notes the year end management representations.


x That the Audit Committee recommends the 2012-13 financial statements of Council of the City of Gold Coast for certification by the Mayor and Chief Executive Officer, subject to finalisation of the external audit and any audit changes to the financial statements.

y That the Audit Committee acknowledges the professional effort of the finance staff of Council in preparing the financial statements.

z That the Audit Committee notes that the QAO has advised that an unmodified auditor’s report is currently proposed.

aa Subsequent to the meeting, Council’s Financial Statements were certified by the Auditor-General on 31 October 2013 in accordance with legislative timeframes. The audit certification included the expected unmodified audit opinion.




bb That the Audit Committee recommends the Current Year Financial Sustainability Statement for the year ended 30 June 2013 for certification by the Mayor and Chief Executive Officer, subject to finalisation of the external audit and any audit changes to the financial statements.

cc That the Audit Committee, based on assurances from Manager Corporate Finance, that the various calculations are derived from Council’s long term financial forecast, recommends the Long-term Financial Sustainability Statement prepared as at 30 June 2013 for certification by the Mayor and Chief Executive Officer.

AC13. 1024.007 – QAO External Audit Update

dd That the Audit Committee notes the QAO’s “Closing Report for the Council of City of Gold Coast 30 June 2013” tabled at the meeting, and verbal update provided by QAO officers.

ee The Audit Committee acknowledges the professional and constructive working relationship between the QAO and Council which has contributed to the positive audit outcome for 2012–13.


ff That the Audit Committee notes the 2012-13 financial statements of Gold Coast Arts Centre as presented.


gg That the Audit Committee notes the update on the QAO 2012-13 First Interim Management Report findings and recommendations, and the progress update by the relevant council manager/s as at 15th October 2013.

AC13. 1024.010 – QAO 2012-13 Second Interim Management Report Findings - Management Action Plan

hh The Audit Committee notes the update on Council’s progress in addressing the findings and recommendations of the QAO Second Interim Management Report of 2012-13.

ii The Audit Committee notes the Chief Procurement Officer has been scheduled to provide a report / presentation to the Committee on a range of matters relating to procurement in Council, including further progress on matters raised by the Queensland Audit Office.

jj The Audit Committee requests a further report at its next meeting on the finalisation of the standardised expenditure limit model.


kk That the Audit Committee notes the draft Annual Report 2012-13

ll That the Audit Committee notes the completed Annual Report Compliance Checklist (Attachment 12.2 - responding to AAC resolution AAC12 0806.014)

CARRIED

There being no further business the meeting closed at 10:19am.

Closing Report

Council of the City of Gold Coast

30 June 2013

Issued: 23 October 2013

(#41912295)


73 Adopted Report

Contents

1. Purpose of the report...........................................................................................1

2. Scope of the audit ...............................................................................................1

3. Audit conclusion ..................................................................................................1

4. Key risks impacting the financial report ...............................................................2

5. Other audit activities............................................................................................5

6. Audit fee ..............................................................................................................6

7. Other matters ......................................................................................................6

Appendix A: Outstanding issues..................................................................................7

Appendix B: Management letter points ........................................................................8


74 Adopted Report

Closing Report - Council of the City of Gold Coast 1

1. Purpose of the report This report has been prepared to provide the Audit Committee with an update on the status of our audit of the financial statements for the Council of the City of Gold Coast (also known as Gold Coast City Council)

as at 23 October 2013. It summarises the action taken and issues identified since our interim report provided to you on 19 August 2013.

In particular, this report outlines issues impacting on the finalisation of the audit and remaining audit work

to be completed prior to the certification of the financial statements.

2. Scope of the audit In accordance with the Auditor-General Act 2009 (the Act), the Auditor-General is required to undertake

an audit of the Council of the City of Gold Coast each financial year. This includes auditing the annual financial statements and issuing an independent auditor’s report on the annual financial statements. The Auditor-General’s mandate, however, is not limited to expressing this opinion and accordingly the audit

may also include an assessment of the probity and propriety of the use of public resources and compliance with other legislative and policy requirements.

The audit has been conducted in accordance with the Auditor-General of Queensland Auditing Standards

which incorporate the Australian Auditing Standards and require compliance with relevant ethical and professional requirements. The audit approach focused on key financial reporting risks. This involved gaining an understanding of significant financial reporting processes and the performance of a

combination of internal control testing and substantive audit procedures to address our assessment of the residual risk of material error.

We confirm that up to the date of this report we have maintained our independence obligations in relation

to our conduct of this audit.

3. Audit conclusion

3.1 Financial Report

We conclude that:

• audit progress to date is appropriate to allow completion of the audit within our agreed completion

date of 31 October 2013 • conclusion of the audit process is subject to satisfactory resolution of the outstanding areas outlined

in Appendix A

• an unmodified auditor’s report is currently proposed.

A final management report will be issued on completion of the audit by 14 November 2013.

3.2 Current-Year Financial Sustainability Statement

We have for the first time reviewed the current-year financial sustainability statement included in the Audit Advisory Committee submission papers of 24 October 2013 and have concerns on the inclusion of some

subjective wording referenced as Note 2. Subject to acceptance of proposed changes that are yet to be communicated to management, we propose to issue an unmodified auditor’s report by 31 October 2013.


75 Adopted Report

Closing Report- Council of the City of Gold Coast 2

4. Key risks impacting the financial report In forming an opinion on the financial report, we have considered probity and propriety of the use of public resources and compliance with other legislative and policy requirements, as well as the significant

accounting and financial reporting issues. The following matters have been identified as significant and may be considered for reporting to Parliament as provided for in the Act.

As noted in our interim management letter of 2 May 2013, our capacity to rely on expenditure controls

was significantly reduced due to the extent of systemic weaknesses observed within the IT SAP application security and application change controls. A major change to our planned strategy was implemented to obtain assurance over expenditure account balances and their underlying transactions for

the 2012-13 financial statements. The results of the additional substantive verification of expenditure transactions were included in our second interim management letter of 19 August 2013 with management providing a commitment to resolving issues including a high risk issue over significant weaknesses in

segregation of duties in procurement by 31 March 2014.

All key risks identified in our Client Strategy issued on 28 March 2013 are discussed below.

4.1 Material / unusual transactions, accounting policies and disclosure issues

It is the responsibility of management to make the Audit Advisory Committee aware of the material accounting policies adopted or changes to those policies; and of methods used to account for material unusual transactions. The following material / unusual transactions, accounting policies and disclosure

issues were considered by audit.

Description of policy / transaction / disclosure issue (referenced to the financial report)

Impact on financial report / Audit response

Audit conclusion

South East Queensland Water Reform – Gain on water reform – refer note 1(k), and note 38

The gain on sale arising from the transfer in of Allconnex Water totalled $1,268m and represents 51.5% of total income.

Audit testing included:

discussion with management on methodology for compliance with Australian Accounting Standards.

sighting documentation to support transfer in amounts

Satisfactory

Valuation of infrastructure assets – refer note 1(n) and note 21

With a combined value in excess of $11,225m, PPE (excluding WIP) is the most material asset balance representing 92.7% of total assets. Of this infrastructure assets (excluding WIP) subject to fair value represent $9,580m.


reviewing documentation supporting material movements.

assessing the reasonableness of key assumptions made and appropriateness of their application.

reviewing disclosures for compliance with Australian Accounting Standards as well as specific representations for significant valuation movements and the appropriateness of key assumptions.

requesting management representations over condition ratings and appropriateness of indices used for determining fair value as at 30 June 2013.

Satisfactory

Additional management representations supplemented other audit evidence gathered during the audit.


76 Adopted Report


Description of policy / transaction / disclosure issue (referenced to the financial report)

Impact on financial report / Audit response

Audit conclusion

Interest bearing loans – refer note 1(w) and note 26

With a combined value in excess of $770m, is the most material liability balance representing 82.6% of total liabilities.


sighting supporting documentation from QTC

assessing the impact on current year financial sustainability ratios, indebtedness and own-sourced revenue.

Satisfactory

Capital Works in Progress - refer note 1(p) and note 38

With a combined value in excess of $302m, represents 2.5% of total assets.


assessing the status of completion including whether assets were “in use” and should have been capitalised.

compliance with Australian Accounting Standards

Generally satisfactory

However movements have not been disclosed. Management have agreed that such disclosures will be incorporated as part of the PPE (note 21) for 2013-14.

Post balance date events – refer note 40

Additional commitments that impact future year operations. Audit to monitor / assess operational impact as part of 2013-14

Satisfactory

Additional audit comfort over completeness of disclosure requested via management representation.

4.2 Management judgements and estimates

The Audit Committee should be made aware of the process used to formulate material accounting

estimates and the judgements made by management underlying these estimates.

The following items are subject to material accounting estimates. We have reviewed the underlying assumptions by management for reasonableness.

Component Basis of estimate and underlying

assumption Audit conclusion

Property, plant and equipment The valuation of infrastructure assets required Council to assess assumptions used an appropriateness of unit rates used.

Satisfactory

Contingencies An assessment of in-house and external legal representations covering Council exposure over current and anticipated third party claims.

Satisfactory

This could be an area for enhanced disclosure in 2013-14

4.3 Written representations

As part of our evidence gathering, we obtain formal management written representations in relation to a

number of matters. A management representation letter has been requested from management and will be required to be signed on the same date as the certification of the financial report.

In addition to our audit testing, we relied on the following representations made by management in

forming our audit opinion.

Representation Made by CEO and CFO Component affected

South East Queensland Water Reform

Transfer in of Allconnex Water on 1 July 2012 and resulting gain on water reform of $1,268 million.

Note 38 – Gain on water reform and Note 21.4 – Water and sewerage

Infrastructure assets Key assumptions and reasons for the significant movement in the fair value of flood mitigation and drainage assets representing a $790 million increase from the prior year.

Note 21 - Property, plant and equipment


77 Adopted Report


Representation Made by CEO and CFO Component affected

Correction of prior year errors Retrospective adjustments have not been applied under the provisions of Australian Accounting Standards AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors due to the impractical nature or uncertainty of when the error occurred.

Note 37 - Correction of prior year errors

Post balance date events Council’s commitment to the State of Queensland for the planning and delivery of the 2018 Commonwealth Games.

Note 40 – Post balance date events.

Environmental issues No environmental issue has arisen that requires disclosure as a commitment or post balance date event.

Note 30 – Commitments for expenditure and Note 40 – Post balance date events

Current-year financial sustainability statement

The capital expenditure amount used in the calculation of the "Asset sustainability ratio” has been prepared pursuant to Section 178 of the Local Government Regulation 2012 and represents the capital expenditure on the replacement of existing assets (renewals).

Current-year financial sustainability statement – separate audit opinion issued

4.4 Adjustments and unadjusted differences identified by audit

In the course of our audit we may identify financial amounts and disclosure matters that we believe should be recorded differently in the financial statements. Where these are material, we request that

management adjust the financial report.

In assessing these differences we have used the following materiality levels in accordance with the guidelines prescribed in Australian Accounting Standard AASB 1031 Materiality and Australian Auditing

Standard ASA 320 Materiality and Audit Adjustments.

Financial statement line item

Balance as at 30 June 2013 ($,000)

Materiality % Planning

Materiality

($,000)

Scoresheet Threshold

($,000)

Total expenditure 1 163 743 1% 11 637 1 164

Net Assets 12 104 305 5% 605 215 60 525

We consider all matters identified during the audit in terms of paragraph 9 of AASB 1031 in relation to the omission, misstatement or non-disclosure of information.

The following material financial differences or disclosure matters were identified by audit and have been adjusted in the financial report.

4.4.1 Adjusted material financial audit differences and disclosure matters

Component(s) affected Amount of adjustment/disclosure

mattersUnderlying cause of difference

Property, plant and equipment Enhance note disclosure to more closely align with AASB 116 para 77 ( c) and what is being disclosed by other very large councils. Such disclosures included :

Range of unit rates by asset

Reasons and assumptions covering the significant valuation movements – flood mitigation and drainage and water and sewerage

Initial disclosures were not in line with the extent of disclosures adopted by other similar sized Councils and Australian Accounting Standards.

Where differences identified are not material, individually or in aggregate, we report these to management. The following table summarises all unadjusted financial differences.


78 Adopted Report


4.4.2 Unadjusted immaterial financial audit differences

Component(s) affected Amount of adjustment ($’000) Underlying cause of difference

Note 21 - Property, plant and equipment – water and sewerage

$54 313 Note: While below scoresheet threshold Council processed other immaterial asset valuation adjustments – pathways and site improvements.

Potential maximum movement between 1 July 2012 and 30 June 2013 using OSER construction index of 1.4% - Impact considered immaterial on total Property, Plant and Equipment of $11.2 billion (excluding Capital works in progress) and Asset Revaluation Surplus of $4.2 billion.

Note 24 – Employee benefits Note disclosure - unconditional leave components totalling $30,122 disclosed as a non-current liability

Council does not have an unconditional right to defer leave payments (e.g. on termination) - refer AASB 101.69 Presentation of Financial Statements.

It is proposed that discussion over the disclosure will be undertaken as part of the 2013-14 audit.

5. Other audit activities

5.1 Controlled entities

Auditor’s independence declarations for the four controlled entities (Gold Coast Arts Centre Pty Ltd,

Surfers Paradise Alliance Limited, Broadbeach Alliance Limited and Connecting Southern Gold Coast Limited) were provided on 23 October 2013. Audit progress to date is appropriate to allow completion of the controlled entity audits by 30 October 2013. While no issues have arisen that would result in the

issue of a modified audit opinion, there exists a number of business improvement opportunities that have been discussed with entity management, but are yet to be formally communicated.

We have relied on the unmodified auditor’s report issued by Ernst & Young LLP (Guernsey Channel

Islands) on the 2012-13 audit of Gold Coast City Council Insurance Company Limited. As part of our 2013-14 audit of the Council and its controlled entities we intend to have a more in-depth review of the self-insurance company and where possible utilise work undertaken by internal audit.

5.2 Area of emphasis reviews

The following area of emphasis reviews have been completed in 2012-13:

Audit emphasis Audit coverage Results

Valuation of infrastructure assets Assess the appropriateness of information sought by council/obtained from valuers (either internal or external) to determine the fair values of non-current assets disclosed in the financial report as well as the level of council assessment of the valuation provided. In particular:

extent of investigations (i.e. asset inspections; sample sizes; verification of supplied data, etc.)

nature and source of information relied upon

key assumptions (residual values, useful lives, condition assessments)

compliance with valuation standards.

The results of the review are currently being assessed

Community grants Assess Council’s compliance with the community grant requirements of Local Government Regulation 2012 and identify better practice policies and procedures. Ensure compliance with the Regulation for any discretionary grants made.

Satisfactory – no reportable areas noted


79 Adopted Report


Identified areas of concern or improvement will be considered for inclusion in the annual Report to Parliament on Local Government. Upon finalisation of the draft Report to Parliament, the Mayor will be provided the opportunity to comment formally on the areas impacting Council of the City of Gold Coast.

5.3 SAP implementation

It is proposed the forthcoming annual Report to Parliament on Local Government will include comment on

significantly large projects / projects of community interest being undertaken councils. The SAP implementation has been identified as such a project for Council of the City of Gold Coast. In formulating comment, we will consider the SAP business case and overall costs of the project.

Upon finalisation of the draft Report to Parliament, the Mayor will be provided the opportunity to comment formally on the areas impacting Council of the City of Gold Coast.

6. Audit fee Our fee for GCCC (excluding controlled entities) as disclosed in the Client Strategy is $359,650 (exclusive of GST). As communicated at the Audit Advisory Committee meeting on 8 July 2013, while additional work has been undertaken due to change in audit strategy arising from SAP issues (reported in interim

management letters), this additional work will be borne by QAO. Consequently, at this stage, it is considered the audit will be completed within the original estimated audit fee.

7. Other matters

7.1 Planning for 2013-14

It is proposed that planning for the 2013-14 audit of Council of the Gold Coast will commence shortly after

finalisation of the 2012-13 audit with a view to issuing a draft client strategy for management consideration by late December 2013.

7.2 Reports to Parliament

For your information, a brief summary of a Report to Parliament released since the our last briefing paper distributed for the Audit Advisory Committee meeting of 2 September 2013 is provided below, along with an indication of the report’s relevance to your Council.

Report No. 2 – Supply of specialist subject teachers in secondary school – Tabled 15 October 2013. Level of relevance to Council: Low

Students achieve better results when teachers have strong pedagogical and content knowledge of the subject area. Sometimes teachers teach subjects out of their field of expertise due to shortages in some subject areas in specific geographic locations. The Department of Education, Training and Employment has identified current areas of demand for teachers in the following specialist subjects in specific geographic locations: Chemistry; Home Economics; Industrial Technology and Design; Junior Secondary Language Studies, especially Japanese; Mathematics B and C; Physics; Senior English; and Special Education.


80 Adopted Report


Appendix A: Outstanding issues The following items relating to the completion of our audit procedures are outstanding at the date of this report and need to be resolved prior to the issue of our audit opinion:

Item Action required Responsibility

Subsequent events update Should Council vote for thecommencement of Broadwater precinct – include comment that the extent of Council commitment is currently unknown.

Management

Financial report certification and current year financial sustainability statement

To be signed on adoption of the financial statements by management

Management and audit

Management representation letter To be signed as near as practical to, but not after, certification of the financial statements.

Management

Commonwealth certificates (2) Nation Building Program (National Land Transport) Act 2009 – Part 8

Healthy Communities Initiative – (Commonwealth – Department of Health and Ageing)


After the issue of the audit report we are required to undertake the following procedures. Any issues identified from this review will be reported to the Chief Executive Officer for remedial action.

Item Action required Responsibility

Annual report Review contents of annual report and confirm that correct audit report is included


Website Review website for correct audit report Management and audit


81 Adopted Report


Appendix B: Management letter points As at the date of preparing the Closing Report and pending discussion with management, the

following matters will be included in the final management letter.

Observation and issues

Risk

Rating Implication

Recommendations Management Comments

Business improvement opportunity – Areas for improvement in financial statement year end process

These include:

More streamlined process to address audit requests and queries

More timely completion of valuation process

Greater oversight / control by finance over key financial statementcomponents e.g valuations

Moderate Increased time to undertake the audit impacting of audit fee

Centralised contact for gathering and vetting audit request

Valuation process to be completed earlier with responsibility for resulting adjustments to be assigned to Finance section preparing the financial report

Canvassed with Council management - yet to be formally communicated to management

Business improvement opportunity - Enhanced governance over controlled entities

Moderate Untimely information to Council regarding issues impacting controlled entities and potential Council exposures.

Establsh agreed protocols between Council and its controlled entities for the timely communication of audit results imacting conrolled entities to be considered by the Council’s Audit Advisory Committee.

Clear Council policies regarding monitoring of performance and application of Council policies.

Canvassed with Council management - yet to be formally raised for managementcomment


82 Adopted Report


These Pages

Numbered 1 to 83

Constitute The Report Of The Meeting

Of The Governance Administration & Finance Committee

Held Thursday, 14 November 2013

Adopted Report Governance Administration & Finance ... · Cr AJD Bell Cr GJ Betts ... 4 That...

Documents

Transcript of Adopted Report Governance Administration & Finance ... · Cr AJD Bell Cr GJ Betts ... 4 That...