Role of the Audit Committee

The following article has been re-produced as a means of sharing knowledge and is not specific to Glen Eira Council but is provided for general consideration only.


Audit Committee Oversight

The role of the Audit Committee is as follows:


Internal Audit

• to engage in open and transparent relationship with the Internal Audit provider;
• to review and approve an internal Audit charter annually;
• as a result of communications with the Internal Audit provider, to have a clear understanding of both the strengths and weaknesses of Council's internal controls and risk management systems;
• to ensure that the Internal Audit activity is sufficiently resourced with competent, objective internal Audit professionals to carry out the internal audit plan, which plan has been reviewed and approved by the Audit Committee;
• to ensure that the internal Audit activity is empowered to be independent with appropriate reporting relationships to Executive management and the Audit Committee;
• to address with the Internal Audit provider all issues related to internal Audit independence and activity;
• the Internal Audit activity has in place a Quality Assurance and Improvement program;
• to regularly communicate with the Internal Audit provider about performance and improvement of the services rendered by the Internal Audit provider;
• to ensure that Internal Audit reports are actionable and audit recommendations and/or other improvements are satisfactorily implemented by management;
• to meet periodically with the Internal Audit provider without the presence of management.

External Audit

To provide adequate oversight of external Audit, an Audit Committee should ensure the following:

• The audit firm has a well considered process for establishing independence and this is communicated fully, appropriately and promptly to the Audit Committee;
• Members of the audit team are dedicated industry specialists able to identify important issues in the business and provide value-added service;
• Lead partners and key personnel are visible at the organisation and deliver practicable advice to senior management and the Audit Committee;
• The advice provided by the auditor on regulatory/industry developments and implications is timely, technically robust and commercially sound;
• The audit approach is customised to incorporate the risks of the organisation and the view and concerns of management and the Audit Committee;
• The audit timetable is efficient and well planned;
• The audit approach adds value by explaining the impact of audit findings and results of the auditor's risk assessments;
• Key service performance standards are satisfied, for example response times, deliverables, staff continuity, communications protocols;
• Clear and regular communication is provided by the auditor to the Audit Committee and staff of the organisation as appropriate;
• The fee for the audit represents fair compensation for a comprehensive and high quality audit.

Solar Heating for GESAC?

Many in our community have queried whether the new Sports and Aquatic Centre will have incorporated environmentally responsible design. In that regard the architects have designed the building to ensure that it is environmentally friendly.

Solar assisted hot water for showers has been included however pool heating has not.

Council investigated the possibility of solar assisted pool heating but ultimately it was considered inefficient and not cost effective. The incorporation of solar water heating would involve a high capital cost, detrimental increases in energy use to operate the system and fewer benefits. The Director of Assets and Facilities, Mr P Waite has pointed out that "the above conclusion is consistent with the approach taken on the newly constructed Cranbourne RACE which also does not provide pool heating via solar energy"

Council considered 3 types of solar heating:

• 
  
  Tube Mat System - This is inefficent but low cost. These systems must use electricity to operate and are ideally used for domestic pools and municipal outdoor pools where only a small increase in temperature is required and the additional electricity cost is justified.


• 
  
  Flat Plate Systems - These are mainly used for domestic applications in non-corrosive environments. Thet are certainly more efficient that Tube Mat Systems but due to the bature of pool water are inappropriate for use ina public pool.


• 
  
  Evacuated Tube Systems - These are most efficient but particularly expensive. This type of system would cost approximately $360,000 to provide some heating to the outdoor 50m pool. Mr Waite has said that it is debatable whether there would be an actual "payback period" as typically these systems need replacing before there is return oninvestment.

In considering the issue of sustainability the focus has been on obtaining the best value for the limited budget.

Rather than going for feel good options Council has concentrated on outcomes that will deliver environmentally appropriate outcomes. These involve:

1. 
   
   Reducing the use of potable water by harvesting storm water, treating grey water for toilet flushing and irrigation and retaining and treating pool backwash water for irrigation;


2. 
   
   Conserving energy and reducing our carbon footprint through use of a heat transfer system between air conditioning exhaust and air supply ducts, solar assisted hot water for showers and basins, daylight sensors and special glazing for effective control of light, motorised baffles to western glazing, energy efficient ducted heating and cooling systems with natural bypass systems to minimise energy consumption when outside air temerature permits and an integrated Building Management System that effectively and continually monitors and controls plant and equipment.

The Community should be assured that Council was very much concerned to ensure that GESAC be built environmentally sustainable. Issues of sustainability are an ongoing issue and certainly as there are new developments they will be considered. As against this Council must also be financially responsible so where there are systems that are inefficient and expensive Council will continue to be prudent.

New Local Laws

Since 2005 the Local Laws Committee originally consisting of Crs Tang, Ashmor, Robilliard and me and since the 2008 election of Crs Tang, Pilling and me have conducted an exhaustive and sometimes an exhausting review of all of Glen Eira's local laws. The job is now almost complete and the revised laws are being placed on public exhibition for review and consultation.

There are some in our community who have queried the need for so many rules and regulations suggesting that they are invasive and that we are over regulated. That view however is not only unrealistic but ultimately narcissistic. In any society we have rules that regulate our behaviour. That is even more so at the local government level as the day to day invariably affect us, fro having overhanging branches, car parking issues, unsightly properties and more. Isn't it always the way that those who criticise are often the first to seek redress from the very same source that they impugn.

Many out dated laws were either removed or altered. Others have been added to recognise current problems eg, Contractors and Sub-contractors parking at or near building sites.

Nature strips were also considered and the law will now allow property owners to plant under certain conditions.

Is the law perfect? - I think not but a very detailed examination was carried out and it is now up to the community to add suggestions.

Princes Park & Dog Poop

For some months now there have been complaints by sporting clubs that children playing sport on the oval have fallen into dog poop. At this time the central oval is an off leash dog area. Many dog owners put their dogs onto the oval and then walk way not supervising their dog. Other owners simply do not collect their animal droppings leaving them on the grass.

The Council has sought to deal with the issue by having increased ranger patrols but to date the problem remains.

Council considered a number of actions but ultimately there was consensus that at the bare minimum signs would need to be erected instructing dog owners that they must clean up after their dog and have the dog under effective control. Further, Council decided that in lieu of immediate fines for infringements a warning would be given and fines only imposed for a second or subsequent offence.

Cr Penhalluriack met with some of the stakeholders and it is hoped that they will be able to find a consensus position that will deal with the problem without impinging on dog owners ability to use the oval.

At the Council meeting held on the 21st July there was a suggestion that the issue be deferred to allow stakeholders to meet. That proposition was not supported as the Council's actions are a bare minimum and do not restrict further and better action being adopted.

I said at the Council meeting that people are more important than dogs. That is not in any way to belittle the benefit of pets but ultimately if it comes down to a child's health or the rights of dogs to run unrestricted then I have to say people win. I also said that unless the stakeholders can agree and unless the problem is solved more stringent measures will need to be adopted. I sincerely hope that this will not be necessary and certainly all Councillors are of one in seeking to support stakeholders in finding a solution.

The reality is that most dog owners are responsible and the problem is caused by only a few. Perhaps those that regularly use the park can remind others of their responsibilities.

Caulfield Park

Work at Caulfield Park is continuing and all is expected to be completed by late August/early September. Once completed the park will be so much better than before. While there are some that have self styled themselves friends or protecters of the park, the truth is that it is a park for all. It is used by passive users, sports clubs, the elderly, children, etc. As such the Council is seeking to ensure that the very best facilties are provided. The new Pavilion will shortly be opened and will be able to cater for a wide variety of interests.

It is truly unfortunate that in improving the park some well established trees were required to be removed however Council will be planting over 100 new trees, far more than those gone.

Certainly at the beginning the grounds may look new but within a few years, once the trees become established Caulfield park will be even better than ever. I only need to look at other parks to know this is true. Invariably Council receives opposition to change - in many cases vociferous opposition but ultimately all but the churlish recognise that the finished product is an improvement.

GESAC

There has been much controversy about the proposed GlenEira Sports & Aquatic Centre ("GESAC"). Some in the community have lately called for Council to re-consider and scrap the project for a less expensive option. Here are the unadulterated facts - not speculation or innuendo:

• There are currently 2 pools in the City of Glen Eira. Both were built in the 1960s. Both are of similar standard and quality.
• The 2 pools have major deficiencies. Both have major cracks in the concrete shell which cannot be adequately repaired but must be replaced.
• The filtration system at both pools is hopelessly inadequate and cannot any longer cope resulting in frequent shutdowns on hot days.
• The pools are not environmentally friendly both leaking chlorinated water into the water table.
• Disabled residents find it difficult to use the pools because of the high "lip".

When first elected in 2005 I and my fellow Councillors explored the possibility of repair but after careful and considered examination it was clear that a "repair" was not practicable and what was required was a totally new facility.

I initially favoured locating GESAC at the Carnegie pool site however after consultation and initial plans being drawn it became obvious that Carnegie was both too small but further traffic would adversely affect residents. This was in contrast to the East Boundary Road site that ticked all the boxes.

The Council engaged in a lengthy and public consultation process with their having been to date 8 public meetings. It is of interest to note that those that are currently opposing GESAC did not either attend or make submissions. Further much of what is being said by them has no basis in truth but then why should facts get in the way. Innuendo is far more frightening!

I am Chairman of the Pools Steering Committee and as such have involved myself in each stage of the process. Australia's leading Pool consultant, Mike King has been engaged to advise Council. Architects have drawn detailed plans all of which were also submitted for public scrutiny at a public meeting.

Cost is certainly a factor and wild estimates of $70million + have been bandied about. The truth is that the budgeted amount is $45million of which the Federal Govt has committed $10million.

Criticism has been made as to location suggesting that the pool ought to be located at the Racecourse - only 1 problem - The Racecourse is not Council property. The truth is that before deciding on location Councillors considered every other possible location within the municipality. The choice of the East Boundary Road site was not made as a whim but rather as a considered decision.

Others say that in these economic times we should hold back and defer. I disagree. It is important that we have a vision for this municipality. That vision must not be shortsighted. We are not just planning for today but hopefully for a facility that will last at least 40 - 50 years. Now is the time to be bold and provide residents with a facility that will not just be a pool but will provide hydrotherapy, a creche, basketball and netball courts and similar. It is easy to be short sighted and resist change however despite the hot air the vast majority of residents who bothered to attend our public meetings enthusiastically endorsed Council's proposals.

What is patently clear is that the 2 existing pools cannot continue . They are well beyond their last legs. We can certainly spend ratepayer money to effect major repairs but all this would do is extend the life of the pools for a few more years before further works were required. It would be throwing good money away for a very short term fix. We do not need to replicate a 40 year old model but rather we must move into the 21st Century with a state of the art facility.

One of the hallmarks of the Council has been sound financial management. Despite the global financial crisis the Council has been performing well and is still a low rating Council compared to neighbouring municipalities. We would not have embarked on GESAC had we not had confidence that we had the financial ability to do so AND that in doing so we would not cripple the Council in its other endeavours or mortgage the future. Critics may scare monger but the truth is that this Council and the Council of 2005-2008 have a record of sound management, decisive decision making and a committment to repairing and maintaining infrastructure, matters long previously neglected.

The current pools are losing money each year whereas the financial model for GESAC is predicated on the complex either being profitable or at the worst breaking even. This is certainly achievable given GESAC will be more than a swimming pool.