FinPro Seminar 23 February 2018
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1 FinPro Seminar 23 February 2018 Presentation by Gerry Smith Director Sector Innovation, Performance and Resilience Local Government Victoria
2 Local Government Victoria Update Local Government Bill Exposure Draft Launch of Model Budget and Model Accounts Update on FAST/Collaborative Council Sustainability Fund Local Government Performance Reporting Framework update Update on Recycling Industry issues 2
3 Local Government Act Review Consultation Overview Stage 1 Discussion Paper (2015) 348 submissions 12 commissioned papers 10 community forums across Victoria Stage 2 Directions Paper (2016) 333 submissions 6 technical working groups 18 community forums and focus groupsacross Victoria Stage 3 Implementation challenges (2017) Ongoing briefings of peak organisations and ratepayer groups 7 technical working groups Stage 4 Exposure Draft (December March 2018) Briefings of governance officers and senior council staff sessions across Victoria Briefings of elected councillors and mayors in partnership with VLGA Stage 5 Bill in Parliament (2018) 3
4 Local Government Act Review Consultation and feedback extended to 16 March 2018 Engagement Update: Six office briefing sessions in December 2017 (143 senior staff) Six councillor sessions in January and February 2018 (VLGA and elected representatives) Additional drop in sessions in metro area 1 & 7 March 2018 Responses from consultation sessions have been consolidated into a FAQ ( 4
5 Local Government Act Review Stage 1-1 July 2018 Staged Implementation Overarching principles Supporting principles Roles and powers of councils Constitution of councils Stage 2-1 January 2019 Community engagement and accountability Entitlements CEO and council staff Audit and Risk committee Stage 3-1 July 2019 Governance proceedings and rules Local laws Financial management and council operations Councillor integrity and conflict of interest Councillor conduct framework Ministerial oversight Stage general elections/ new council term Role of councillors and mayors Election of mayors and deputy mayors Council planning and reporting Rates and charges Council elections 5
6 Launch of Model Budget and Model Accounts Model Financial Report Published annually by LGV 4 working group meetings Model Budget First year published by LGV 3 working group meetings Available from today: strengthening-councils/ sector-guidance-planning-and-reporting/ 6
7 Summary of Changes Model Financial Report Streamlined to simplify disclosures. Unnecessary disclosures removed. Certification moved to the front, reflecting importance Provision for disclosure of non-current other financial assets i.e. term deposits > 12 months Additional guidance in Better Practice Guides Model Budget Streamlined from 16 to 5 sections Improved guidance and example disclosures Inclusion of notes to allow sequential explanation Improvements to content of Financial Statements 7
8 Finance and Accounting Support Team (FAST) Model Budget working group membership Local government practitioners James Scott, CA Bradley Thomas, CA John Brockway, CPA Moreland City Council (working group chairman) Mount Alexander Shire Council Surf Coast Shire Council Accounting profession Martin Thompson, CPA Michael Gummery, CA Crowe Horwath HLB Mann Judd Local government finance professionals (FINPro) Ange Marshall, CPA Yarra City Council Department of Environment, Land, Water and Planning Daniel O Shea, CPA Local Government Victoria 8
9 Finance and Accounting Support Team (FAST) Model Accounts working group membership Accounting profession Martin Thompson, CPA Ram Subramanian, CA Crowe Horwath CPA Australia Local government finance professionals (FINPro) Ange Marshall, CPA Marc Giglio, CPA Brett Exelby, CPA Yarra City Council Banyule City Council Bass Coast Shire Council Department of Environment, Land, Water and Planning Daniel O Shea, CPA Local Government Victoria Attendance in observer capacity Tim Loughnan, CA Remy Szpak, CPA Victorian Auditor-General s Office (VAGO) Victorian Auditor-General s Office (VAGO) 9
10 Finance and Accounting Support Team (FAST) Established in 2016 to provide targeted and specialist support primarily to rural and regional councils. The government committed $3.2 million over four years to this initiative. Support Councils to develop capacity in strategic & business planning, financial management and shared services. The FAST program has three streams: Stream 1 Expert financial and business services support; Stream 2 A grants program for councils; Stream 3 Research and Development activities eg NDIS/CHSP Applications for round three are currently being considered, and the fourth round is open for applications until 30 April
11 Finance and Accounting Support Team (FAST) 30 rural and regional councils have participated in a total of 9 projects For more information: 11
12 Collaborative Council-Sustainability Fund Partnership Program Victorian Government has made available $2.1m over 2 years from the Sustainability Fund. Funding gives Councils a chance to collectively increase procurement or shared services delivery using socially, economically and environmentally sustainable technologies. Groups of councils can apply for matched grants of up to $75,000 Applications are currently open until 14 March. 12
13 LG Performance Reporting Framework Indicators was the third year of LGPRF reporting Technical Working Groups are working through sector feedback to propose changes for a LGPRF 2.0 Plenary session in April on LGPRF 2.0 Focus areas: Modifications /additions / deletions of current indicators Seek to have LGPRF provide a single source of truth for government Further standardization of indicator definitions and calculations to align with other reporting requirements Reduce duplication of reporting where possible Improvements to Know Your Council website to reflect LGPRF
14 Update on Recycling Industry Issues Chinese Government import policy change from 1 January 2018 Global reset of recyclables market, impacting prices across entire industry and supply chain Major recycling processes and collectors demanding price reset: additional costs ~ $130 - $150 per tonne State Government considering responses. Environment Minister announced $13m for industry and LGA support from Sustainability Fund. Short term assistance to Councils from 1 March 30 June 2018 Direct funding support to councils (amount TBC) administered by LGV Based on forecast recycling tonnages Letter sent to CEOs. Details on grants process to follow 14
15 Thank you / Questions 15
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