MINUTES OF THE ORDINARY MEETING OF COUNCIL HELD IN THE
COUNCIL CHAMBERS ON Thursday 17th May 2012
1. OPENING
1.1 DECLARATION OF OPENING
The Shire President welcomed all in attendance and declared the meeting open at 15.05pm.
1.2 RECORDING OF THOSE PRESENT
Cr K J Chappel President
Cr D J Coaker Deputy President
Cr D S Carslake
Cr D S Agar
Cr K P Stokes
Mr G R Treasure Chief Executive Officer
Mr D G Williams Deputy Chief Executive Officer
1.3 RECORDING OF APOLOGIES
Cr G R North
Cr M J Thornton
1.4 LEAVE OF ABSENCE
Nil
1.5 ANNOUNCEMENTS BY PRESIDENT WITHOUT DISCUSSION
Nil
1.6 VISITORS TO THE MEETING
Nil
2. PUBLIC QUESTION TIME
Nil
3. DECLARATIONS OF INTEREST
Nil
4. PREVIOUS MINUTES
4.1 CONFIRMATION OF MINUTES OF ORDINARY MEETING
Confirmation of Minutes of the Ordinary Meeting held on 19th April 2012.
Moved: Cr K P Stokes
Seconded: Cr D S Agar
CARRIED
5/0
INTRODUCTION
A status report on progress of items requested by Council from previous meetings will be provided each month for Councillor’s information.
OFFICER’S RECOMMENDATIONS
It is recommended that:
The Status Report submitted to 17th May 2012 Meeting be received.
COUNCIL RESOLUTION
Moved: Cr D S Agar
Seconded: Cr K P Stokes
That the Status Report submitted to 17th May 2012 Meeting be received.
CARRIED
5/0
Item No: 6.1
Subject: Accounts Due for Payment
Proponent: Finance Officer
Signature of Officer:
Signature of CEO:
File No: ADM 0135
Voting Requirements: Simple Majority
Meeting Date: 17th May 2012
INTRODUCTION
A list of accounts is attached for all payments made for the month of April 2012.
COMMENT
Nil
FINANCIAL IMPLICATIONS
As per list of accounts hereunder
POLICY IMPLICATIONS
Nil
STRATEGIC IMPLICATIONS
Nil
OFFICER’S RECOMMENDATION
It is recommended that the list of accounts paid by the Chief Executive Officer under designated authority, represented by:
- Municipal EFT Payment Numbers EFT3634 to EFT3729 inclusive, amounting to $697,880.46;
- Municipal Direct Debit Payments Numbers DD2409.1, DD2411.1, DD2413.1, DD2415.1, DD2417.1, DD2419.1, DD2423.1, DD2452.1 & DD2454.1 amounting to $9510.90;
- Municipal Cheque Payments numbered 10515 to 10531 totalling $94,784.01
- Municipal Payroll for April 2012
11/04/2012 - $50,563.21
25/04/2012 - $52,400.20
Be endorsed.
COUNCIL RESOLUTION
Moved: Cr K P Stokes
Seconded: Cr D S Carslake
That the list of accounts paid by the Chief Executive Officer under designated authority, represented by:
- Municipal EFT Payment Numbers EFT3634 to EFT3729 inclusive, amounting to $697,880.46;
- Municipal Direct Debit Payments Numbers DD2409.1, DD2411.1, DD2413.1, DD2415.1, DD2417.1, DD2419.1, DD2423.1, DD2452.1 & DD2454.1 amounting to $9510.90;
- Municipal Cheque Payments numbered 10515 to 10531 totalling $94,784.01
- Municipal Payroll for April 2012
11/04/2012 - $50,563.21
25/04/2012 - $52,400.20
Be endorsed.
CARRIED
5/0
Item No 6.2
Subject: Reconciliations April, 2012
Proponent: Manager Accounting & Finance
Signature of CEO
File No: ADM 0189
Voting Requirements: Simple Majority
Meeting Date: 17th May 2012
INTRODUCTION
Local Government (Financial Management) Regulation 34 (1)(a) states that a Local Government must prepare financial statements monthly.
OFFICER’S COMMENT
The Shire of Morawa’s financial position is as follows:-
BANK BALANCES
The Bank Balances as at 4th May, 2012:-
- / Municipal Account / $674,099.90- / Trust Account / $ 24,399.61
- / Business Telenet Saver (Reserve) / $6,007,866.25
· Transfer of Sale of Fines funds ($637,697.07) transferred into Community Development Reserve on the 8th August, 2011
· Transfer of $1,471,260.00 into Plant Reserve from Community Development Reserve on the 18th August, 2011 as per 2011/12 Budget.
· Transfer of $43,561.73 into Plant Reserve from Municipal Fund on the 11 October, 2011 being for 1st quarter of Depreciation Plant Costs as per 2011/12 Budget.
· Transfer from Plant Reserve Fund to Municipal Fund $638,489 –Water Tanker/Road Sweeper
· Transfer of Sale of Fines funds ($1,819,956.30) transferred into Community Development Reserve on the 16th January, 2012
· Transfer of $43,750.18 into Plant Reserve from Municipal Fund on the 23rd January, 2012 being for 2nd quarter of Depreciation Plant Costs as per 2011/2012 Budget.
· Transfer of Sale of Fines ($430502.19) into Community Development Reserve on 24th January, 2012.
· Transfer from Unspent Grants Reserve to Municipal Fund $311,014.59 – Exploring Wildflower Country Project and $25,939.64 for Long Term Financial Plan.
· Transfer from Plant Reserve to Municipal Fund $44,244.96 – DCEO/MAF Vehicles as per Budget on the 27th February, 2012.
· Transfer from Unspent Grants Reserve to Municipal Fund $10,239.41 –Balance of Exploring Wildflower Country Project on the 27th February, 2012.
· Transfer from Morawa Community Trust Reserve to Municipal Fund $6091.00 – Cricket Club and Morawa Learning Centre air conditioners on the 27th February, 2012.
· Transfer from Building Reserve to Municipal Fund $200,000.00 – part fund transfer for Administration Centre Upgrade on the 27th February, 2012 as per Budget.
· Transfer from Economic Development Reserve to Municipal Fund $207,852.34 – balance of funds for Caravan Park Chalets as per budget on the 12th April, 2012.
· Transfer from Municipal Fund to Plant Reserve the 3rd Quarter Plant Depreciation Costs of $33,890.78 on the 12th April, 2012.
· Transfer from Building Reserve to Municipal Fund $140,000 – balance of funds for Administration Centre Upgrade on the 24th April, 2012.
· Transfer from Unspent Grants Reserve to Municipal Fund $500,000 the Super Towns funds on the 26th April, 2012.
· Transfer from Plant Reserve to Municipal Fund $376,381 balance of Plant funds as per budget for purchase of Grader on 4th May, 2012.
BANK RECONCILIATION BALANCES
The Bank Reconciliation Balances for 30th April, 2012 with a comparison for 30th April, 2011 is as follows:-
2012 / 2011Municipal Account # / $268,869.09 / $234,224.17
Trust Account / $24,399.62 / $40,460.34
Reserve Account / $6,359,503.98 / $3,556,767.39
RESERVE ACCOUNT
The Reserve Funds of $7,145,352.68 as at 30th April. 2012 are invested with Bank of Western Australia in the Business Telenet Saver Account at 4.50% p.a. Breakdown for April, 2012 with a comparison for April, 2011 is as follows:-
2012 / 2011Sports Reserve / $0.00 / $0.00
Land & Building Reserve / $4,717.35 / $329,129.83
Plant Reserve / $966,823.16 / $24,584.33
Leave Reserve / $83,701.83 / $79,564.76
Economic Development Reserve / $220,782.81 / $164,745.50
Sewerage Reserve / $415,411.88 / $0.00
Unspent Grants & Contributions Reserve / $128,668.50 / $90,024.12
Community Development Reserve / $3,141,948.05 / $1,508,290.59
Water Waste Management Reserve / $65,517.76 / $62,279.43
Future Funds Reserve / $1,246,955.50 / $1,185,322.42
Morawa Community Trust Reserve / $84,977.14 / $112,826.41
Total $6,359,503.98 $3,556,767.39
Note: Outstanding transfers from Reserves to Municipal Fund from the Unspent Grants Reserve are - Ramit Project - $ 50,000.00
Dry Seasons Grant - $ 20,000.00
STATUTORY ENVIRONMENT
Local Government Act 1995 and Local Government (Financial Management) Regulations
POLICY IMPLICATIONS
Nil
FINANCIAL IMPLICATIONS
As presented
STRATEGIC IMPLICATIONS
Nil
OFFICER’S RECOMMENDATION
It is recommended that the bank reconciliation report for 30th April 2012 be received.
COUNCIL RESOLUTION
Moved: Cr K P Stokes
Seconded: Cr D S Carslake
That the bank reconciliation report for 30th April 2012 be received.
CARRIED
5/0
Item No 6.3
Subject: Monthly Financial Statements
Proponent: Manager Accounting & Finance
Signature of Officer:
Signature of CEO
Voting Requirements: Simple Majority
Meeting Date: 17th May 2012
INTRODUCTION
Local Government (Financial Management) Regulation 34(1)(a) states that a Local Government must prepare financial statements monthly.
COMMENT
The April Financial Activity Report which includes the Variance Report and Schedules 2 to 14 as supporting documentation is presented as a separate document for Council to peruse and receive as being received.
STATUTORY ENVIRONMENT
Local Government Act 1995 Section 6.4 and Local Government (Financial Management) Regulations 1996 Section 34
FINANCIAL IMPLICATIONS
As presented
STRATEGIC IMPLICATIONS
No strategic implications
OFFICER’S RECOMMENDATION
Ø The Statements of Financial Activity Reports for the period ending
30th April, 2012.
Ø Variance Report for the period ending 30th April, 2012.
Ø Schedules 2 to 14 for the period ending 30th April, 2012. Be Received.
COUNCIL RESOLUTION
Moved: Cr K P Stokes
Seconded: Cr D S Carslake
Ø The Statements of Financial Activity Reports for the period ending
30th April, 2012.
Ø Variance Report for the period ending 30th April, 2012.
Ø Schedules 2 to 14 for the period ending 30th April, 2012. Be Received.
CARRIED
5/0
INTRODUCTION
The Interim Audit Report for 2012 carried out by Councils auditors UHY Haines Norton is presented for Council’s information. A copy of the report has been provided separately to all Councillors.
ATTACHMENT
UHY Haines Norton Interim Audit Report
BACKGROUND INFORMATION
Council has an obligation under Section 7.3 of the Local Government Act 1995 to have an appointed auditor carry out an interim audit of Council business activities in accordance with the Local Government Act 1995.
A local government is to meet with the auditor of the local government at least once in every year. Council met previously with the auditors in February 2012 and will not be required to meet with the auditors until after the end of year financials have been completed.
A local government is to examine the report of the auditor prepared under section7.9(1), and any report prepared under section7.9(3) forwarded to it, and is to:-
(a) Determine if any matters raised by the report, or reports, require action to be taken by the local government; and
(b) Ensure that appropriate action is taken in respect of those matters.
OFFICER’S COMMENTS
The interim audit was carried on the 16th & 17th April 2012 followed by a meeting with senior staff to raise matters which required appropriate action in the areas of:-
Ø Financial Interests Register – (1) Sections of forms left blank (2) acknowledgment letter not issued for one return (3) Primary return not lodged within 3 months of the Councillors start date and (4) Ex-Councillors not removed from the register.
Ø Annual Report Acceptance – 16th February, 2011 (Section 5.54 of the Act states that the Report should be accepted by Council by 31 December in any given year.
Ø Annual Report Contents – Plan for the Future.
Ø Purchase Orders – Several Purchase Orders were raised after the receipt of the goods.
Ø Employee Files – Some files contained cancelled leave forms when only correct, relevant and approved leave forms should be filed in employee files.
Ø Disaster Recovery Plans – Lack of documented controls to help ensure the Shire can recover from the loss of data through the destruction or loss of the computer equipment and/or files.
These matters have or are being addressed by Council staff.
STATUTORY ENVIRONMENT
Local Government Act 1995
Local Government (Financial Management) Regulations 1996
POLICY IMPLICATIONS
Nil
FINANCIAL IMPLICATIONS
Nil
STRATEGIC IMPLICATIONS
Nil
OFFICER’S RECOMMENDATION
It is recommended that:-
- The 2012 Interim Audit Report carried out by UHY Haines Norton, as presented, is received by Council.
- Council endorsement is given the actions required by Shire officers to achieve rectification to the audit matters identified.
COUNCIL RESOLUTION
Moved: Cr K P Stokes
Seconded: Cr D S Carslake
That:-
1. The 2012 Interim Audit Report carried out by UHY Haines Norton, as presented, is received by Council.
2. Council endorsement is given the actions required by Shire officers to achieve rectification to the audit matters identified.
CARRIED
5/0
INTRODUCTION
A Strategic Plan Update and Progress Report is provided each month for Councillors information.
OFFICER’S RECOMMENDATION
It is recommended that:
The Strategic Plan Update and Progress Report for the 17th May 2012, Ordinary Meeting be received.
COUNCIL RESOLUTION
Moved: Cr D J Coaker
Seconded: Cr D S Agar
That the Strategic Plan Update and Progress Report for the 17th May 2012, Ordinary Meeting be received.
CARRIED
5/0
INTRODUCTION
The purpose of this report is to give consideration to a submission from the Mid West Chamber of Commerce and Industry to continue funding support of the Mid West Procurement Officer position.
ATTACHMENTS
Letter of Offer from Mid West Chamber of Commerce and Industry
BACKGROUND INFORMATION
The Shire of Morawa, together with other stakeholders, have been foundation sponsoring supporters of the Procurement Officer position domiciled with the Mid West Chamber of Commerce and Industry (MWCCI). This sponsor support has been in place for two years. The Shire of Morawa has been making quarterly instalments totalling $10,000 per annum towards this position. Other contributing partners include:-
v Karara Mining Ltd
v Oakajee Port and Rail
v Sinosteel Midwest Corporation Ltd
v City of Greater Geraldton
v Shire of Dalwallinu
v Shire of Perenjori
v Crossland Resources Ltd
v MWCCI
The original purpose of securing the services of a Procurement Officer was to ensure that local businesses maintain every opportunity to gain access to project information and to strengthen links to maximise opportunities for new work and successful business outcomes. The Procurement Officer would also act as a liaison point for the receipt of enquiries from Morawa small businesses and the supply of updates and intelligence from the mining operators.
The MWCCI is seeking support from the Shire of Morawa to enter into a further three year arrangement to contribute $15,000 per annum for continued employment of a Procurement Officer.
OFFICER’S COMMENT
The Procurement Officer position has some delivered some successes. The most important of the achievements includes strengthening relationships and ties with the emerging resources sector. This has ensured that Mid West small businesses have been given primary focus for most of the new mining developments that have occurred during the past two years.
The Procurement Officer position has, particularly in the initial stages, assisted to develop mechanisms to offer Professional Development and networking opportunities for local small businesses. This has included a number of Business After Hours functions held in Morawa between key iron ore mining representatives and the small business sector. It has been directly through the successful hosting of one of these types of events that momentum was recently created to establish a Morawa Subcommittee of the MWCCI.