finance and administration committee 18 august 2010€¦ · finance and administration committee 18...

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Agenda – Finance & Administration Committee 18 August 2010 - #2683205

FINANCE AND ADMINISTRATION COMMITTEE

18 AUGUST 2010

1

CORPORATE SERVICES MONTHLY REPORT FOR JULY 2010 Sarah Philpott: sg : 1/3/87-06: #2655660v1

RECOMMENDATION: That the report of the Corporate Services Department for the month of July 2010 be received and noted.

COMMENT: This is the report of the Corporate Services Department for Operational Plan Activities for the month of July 2010 and budget performance has been reported.

CONSIDERATIONS: Statutory: This report highlights progress against the 2010/2011 Operational Plan and Budget.

CONCLUSION:

At this time, work is progressing satisfactorily against the Operational Plan and Budget.

ATTACHMENTS: Monthly report for July 2010. Sarah Philpott General Manager Corporate Services

2


ACTIVITY: CORPORATE SERVICES

Mission: To provide corporate services that support internal and external customers

to meet the needs of the community. Officer Responsible: General Manager Corporate Services Staffing Level (FTE): 176.5

3


Note YTD YTD Variance VarianceActual Budget

$ $ $ %Operating Revenue

Net Rates 8,401,254 8,413,010 ( 11,756) (0)%Fees and Charges 32,101 31,585 516 2 %Interest 1 635,036 549,416 85,620 16 %Other Revenue 2 ( 2,753) 22,848 ( 25,601) (112)%Internal Revenue 144,877 143,331 1,546 1 %Competitive Neutrality Revenue 1,701,909 1,697,260 4,649 0 %Total Operating Revenue 10,912,424 10,857,450 54,974 1 %

Operating ExpenditureEmployee Costs 3 1,382,235 1,451,495 69,260 5 %Overtime 4 8,341 3,000 ( 5,341) (178)%Agency/Temp Staff Costs 5 1,765 - ( 1,765) (100)%Materials 6 23,326 53,125 29,799 56 %External Services 7 157,251 210,338 53,087 25 %Legal Services 8 34,035 183,241 149,206 81 %Consultancy Services 9 33,035 21,083 ( 11,952) (57)%Travel Expenses 10 4,778 15,254 10,476 69 %Other Services 11 167,639 362,801 195,162 54 %Internal Charges 12 93,590 103,131 9,541 9 %Competitive Neutrality Charges 838,169 838,169 - 0 %Depreciation and Amortisation Expenses 13 218,905 271,854 52,949 19 %Borrowing Costs 4,596 4,565 ( 31) (1)%Bank Charges 14 25,172 62,866 37,694 60 %Other Expenses 15 8,936 21,233 12,297 58 %Contributions and Donations 16 389,982 45,667 ( 344,315) (754)%Total Operating Expenses 3,391,755 3,647,822 256,067 7 %Net Operating Result before Tax & Dividend 7,520,669 7,209,628 311,041 4 %

Tax & DividendIncome Tax Expense/ (Benefit) 17 ( 432,228) ( 654,748) ( 222,520) (34)%Dividend Expense/ (Income) 17 ( 1,514,854) ( 1,024,455) 490,399 48 %

NET OPERATING RESULT 9,467,751 8,888,831 578,920 7 %

Explanations1

2

3

4

56

7

89

1011

1213141516

17

Other revenue is less than budget due to an end of year adjustment and an associated postponement in raising an invoiceduring July. Actuals are expected to re-align with budget next month.

Corporate Services - Variance ReportFor the period ended 30 July 2010

Interest received is higher than anticipated for interest on investments due to a higher than forecast cash balancepredominantly associated with the timing of capital works.

Employee costs are less than budget predominantly due to the workers compensation premium not being recognised as atthe end of July as the invoice is yet to be received.

Materials are under budget due to less than anticipated expenditure year to date on office stationary and other equipment andsupplies ($21k), office furniture & equipment ($2k), computer software & supplies ($2k) and other materials ($4k), which isexpected to come in line with the budget as the year progresses.

Other services are less than budget due to lower expenditure on licences ($71k), telecommunication usage ($52k), electricity($24k), advertising ($20k) and postage costs ($17k).

Variance is due to lower than forecast expenditure on training services ($53k) and IT hardware support services. This hasbeen offset by other services due to costs associated with the digitalisation of microfilm records ($-22k).

Agency/Temp staff expenses are higher than budget due to an unanticipated requirement for agency staff.

Legal services are under budget due to lower than anticipated costs year to date.

Overtime is higher than budget due to unanticipated costs of staff working at the Cairns Show Council stall. Additionally, overtime costs resulting from end of financial year workloads have mainly been budgeted in August and therefore budget and actual costs are expected to more closely align next month.

Variance is due to the performance of the commercialised business units to budget.

Internal Charges are under budget due to lower job charging than anticipated.

Consultancy services actuals are higher than budget as the budgeted expenditure needs to be redistributed at the next budget review to more closely reflect the actual timing of the expenditure to be incurred.

Expenditure on bank fees and charges is less than budget predominantly due to lower than anticipated merchant fees.Variance in other expenses is due to less then anticipated audit expenses year to date.Contributions and donations are greater than budget due to the rates based financial assistance occurring earlier thananticipated. Actuals should more closely align with budget next month.

Travel expenses are under budget due to lower than anticipated utilisation across the Corporate Services department.

Depreciation expense is less than originally anticipated.

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Performance Indicators (Ratings: = Satisfactory, ? = Marginal, X = Unsatisfactory, - = no data)

Performance Rating:

Variance Report

1b. Departmental Capital Budget % Spent

0%

20%

40%

60%

80%

100%

Jul

AugSep Oct

Nov DecJa

nFeb Mar Apr

May Jun

% actual spent% actual plus committalsTarget

Prospective Actions

Performance Rating:

Variance Report Nil

1c. Timeliness of Departmental operating initiative completions

-1

0

1

2

3

4

5

6

Dec

-10

Jul-1

1

Dec

-11

ongo

ing

Initiatives planned for completion - cumulative

Actual Initiatives completed - cumulative

90% completed by year end

Prospective Actions Nil

5



Performance Rating:

Variance Report Nil

1d(a). Lost time injury frequency rate (LTIFR)

(Corporate Services Department)

-5

0

5

10

15

20

Jul Aug

Sep OctNov Dec Jan Fe

bMar Apr

MayJun

e

LTIFR Target


Performance Rating:

Variance Report

1d(b). Lost Time Injury Duration Rate (LTIDR)

(Corporate Services Department)

-10

0

10

20

30

Jul Aug Sep Oct Nov Dec Jan Fe

bMar Apr May Jun

LTIDR Target


2. Leadership – determined at first review 3. Connecting Project – determined at first review 4. Employee opinion survey – determined at first review

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Performance Rating:

Variance Report

5. Financial Sustainability

Result Measure (description): Compliance with DIP ratios. Result Target: 100% compliance. Source of Data: Financial reports. Reporting Frequency: Quarterly Performance:

Prospective Actions

Performance Rating:

Variance Report

6. Cultural Change

Result Measure (description): Employee survey: engagement score, closing the gaps between importance and satisfaction scores and satisfaction score. Result Target: Positive movement. Source of Data: Annual survey – LCC feedback. Reporting Frequency: Annual. Performance:

Prospective Actions

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BRANCH: CORPORATE PERFORMANCE

Mission: To work with departmental managers to ensure effective services are

provide to the organisation, ratepayers and residents. Officer Responsible: Manager Corporate Performance Staffing Level (FTE): 64.5

MANAGEMENT SUPPORT


Performance Rating:

Variance Report

Governance Project Plan

Result Measure (description): A detailed project covering all aspects of Governance.

Result Target: Project defined and in place by August 2010. Project complete June 2011

Source of Data: Council delegation resolutions.

Reporting Frequency: Quarterly.

Performance:

Prospective Actions

Performance Rating:

Variance Report

CRC empowerment and compliant resolution

Result Measure (description): Greater legal empowerment from regulating bodies.

Result Target: Improvement of agreed service standards with regulatory bodies.

Source of Data: Branch levels of service.


Performance:

Result Measure (description): Compliant resolution.

Result Target: Positive reports from regulating bodies.

Source of Data: Audit committee minutes.


Performance:

Prospective Actions

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Performance Rating:

Variance Report

Project Management and Business Analysis

Result Measure (description): Objectives as per individual project brief.

Result Target: Meet all objectives of project brief.

Source of Data: ISC minutes


Performance: Prospective Actions

CORPORATE PERFORMANCE

Operating Initiative Status Relevant linkage(s`)

Due Date Complete (enter %)

On Target

Yes (enter

)

No * (enter

X) 1. Develop and implement a

Service Quality Strategy for both internal and external customers

Corporate Objective 6.2, 6.4, 6.5, 6.7

Dec 2011 25%

2. Develop and adopt a Community Plan for the region

Corporate Objective 6.1, 6.2, 6.5, 6.6

Dec 2011 15%

Performance Rating:

Variance Report Nil

Strategic planning & reporting

50

60

70

80

90

100

Qtr 1

Qtr 2 Qtr 3 Qtr 4

Compliance Target 100%


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Performance Indicators (Ratings: = Satisfactory, ? = Marginal, X = Unsatisfactory, - = no data) ADMINISTRATION SERVICES

Operating Initiative Status Relevant

linkage(s`) Due Date Complete

(enter %) On Target

Yes (enter

)

No * (enter

X) 1. Staff understanding and

compliance with RTI and Privacy legislation

Corporate Objective 6.3

Dec 2010 85%

2. Agreeing levels of service for internal and external customers and implementing these across all customer service centres

Corporate Objective 6.4, 6.5

Dec 2011 30%

3. Supporting the strategic acquisition and sale of strategic parcels of land and assets


Ongoing 10%

Performance Rating:

Variance Report Nil

Property, administration & insurance services

0

5

10

15

20

July

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Februa

ryMarc

hApri

lMay

June

Matters finalised by Delegated Authority Matters f inalised by Council Resolution


10


Performance Indicators (Ratings: = Satisfactory, ? = Marginal, X = Unsatisfactory, - = no data) Performance Rating:

Variance Report Nil

Records Management

0

5

10

15

July

Augu

st

Septe

mber

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Febru

aryMarc

hAp

ril MayJu

ne

# RTI Applications # RTI Applications Compliant


Performance Rating:

Variance Report Nil

Customer Service

0

2000

4000

6000

8000

10000

12000

14000

Jul-1

0

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-1

1

Feb-11

Mar-11

Apr-11

May-11

Jun-1

1

E-Services Credit Card by Phone Bpay Aust Post Customer Service


Top 10 Customer Request Management (CRM’s) Received – Council & After Hours Local Law & Animal Management 999 188 Waste Services 686 2 Water Services 313 79 Maintenance Central 226 17 Maintenance North 107 9 Maintenance South - Gordonvale 67 2 Public Health 52 14 Works Investigations 62 2 Maintenance Far North 37 3 Wastewater Services 27 11 Top 5 Customer Call Topics Animal Management 2057 Rates 1874 Water 1005 Depot Works 673 Waste 671

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BRANCH: FINANCE

ACTIVITY: FINANCIAL SERVICES Mission To provide excellent financial services and professional advice to enable our

customers to achieve their plans. Officer Responsible: Manager Financial Services Staffing Level (FTE) 59

Performance Indicators (Ratings: = Satisfactory,? = Marginal, X = Unsatisfactory, - = no data)

Performance Rating:

Variance Report

1. Reporting deadlines

Result Measure (description): Number of occasions that reporting deadlines are missed. Result Target: 0 missed Source of Data: Check sheet Reporting Frequency: Monthly Performance: 0 deadlines missed

Prospective Actions

Performance Rating:

Variance Report

2. Payroll completion and accuracy< 3% Pay adjustment

0

0.51

1.5

2

2.53

3.5

Jul

Aug Sep OctNov Dec Ja

nFeb Mar Apr

May Jun

% o

f Pay

Adj

ustm

ents

Actual 2009/2010 Actual 2010/2011 Target

Prospective Actions

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Performance Rating: ?

Variance Report Variance attributed to a large number of non-compliances and the show public holiday.

3A. Timely processing of purchase requisitions

40

50

60

70

80

90

100

Jul


nFeb Mar Apr

May Jun

% O

rder

s co

nver

ted

with

in 2

day

s

Actual 2009/10 Actual 2010/11 Target 90%

Prospective Actions Purchasing unit to continue to monitor and action identified issues with responsible officers.

Performance Rating:

?

Variance Report No improvement for the month.

3B. Confirmation Orders

0

10

20

30

40

50

60

70

Jul


nFeb Mar Apr

May Jun

% C

onfir

mat

ion

Ord

ers

Actual 2009/10 Actual 2010/11 Target 15%

Prospective Actions Maintain awareness and ongoing training and provide feedback to request generators regarding correct policy and procedures to be followed.

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Performance Rating:

Variance Report

4. Creditors Payments - Invoices paid outside of Credit Terms

0102030405060708090

Jul


nFeb Mar Apr

May Jun

% In

voic

es

Actual 2009/10 Actual 2010/11 Target <25%

Prospective Actions

Performance Rating:

Variance Report

5. Outstanding Debts

(a. % $Sundry Debtors Greater than 90 Days)

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Jul


nFeb Mar Apr

May Jun

Actual 2009/10 Actual 2010/11Target <10% <5% outstanding end of rates period

Prospective Actions

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Performance Rating:

Variance Report

6. Regulatory Return Deadlines

Result Measure (description): Number of occasions that regulatory return deadlines are missed. Result Target: 0 missed Source of Data: Check sheet Reporting Frequency: Monthly Performance: 0 missed

Prospective Actions

Performance Rating:

Variance Report No statistics available on accuracy until after rates due date

7. Accuracy of Rates Levied

1st 09/10 2nd 09/10 1st 10/11 2nd 10/11 Total number 77,910 78,691 79,261 No. incorrect 24 4

Actual % incorrect

0.0% 0.0%

Target % incorrect

<0.5% <0.5% <0.5% <0.5%

Performance

Prospective Actions

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ACTIVITY: CORPORATE FINANCING & OVERHEADS


Performance Rating:

Variance Report

1. Return on cash investment

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Jul

Aug SepOct

Nov DecJa

nFeb Mar

AprMay Ju

n

10/11 Actual 10/11 RBA Cash Rate

Prospective Actions .

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ACTIVITY: HUMAN RESOURCES

Mission To provide Human Resource services, consultancy and support, by working

in partnership with the organisation, to engage, value and inspire our people.

Officer Responsible: Manager Human Resources Staffing Level (FTE) 20

Operating Initiative Status Relevant

linkage(s`) Due Date Complete

(enter %) On Target

Yes (enter

)

No * (enter

X) 1. Strategies to give

employees a voice; develop leadership integrity and support zero tolerance of workplace harassment.


Jul 2011 60%


Performance Rating:

Variance Report 242 Staff attended training in July with 16 absentees.

1. Training delivery - attendance

0

100

200

300

400

500

Jul


nFeb Mar Apr

MayJu

ne

Attendees Absentees

Prospective Actions L & D Strategy underway. Delivery of 15 qualifications under the Productivity Placement Program commences September.

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Performance Rating:

Variance Report 28 vacancies were actioned within 3 months. 3 vacancies were not filled within 3 months. Majority being difficult to fill, specialist positions.

2. Vacancy management and workforce planning - Vacancies filled

01020304050607080

Jul


nFeb Mar Apr May Ju

n

Vacancies actioned w ithin 3 months Vacancies not actioned w ithin 3 months

Prospective Actions HR to continue with close support in assisting departments to finalise recruitment within specified timeframes.

Performance Rating:

Variance Report The annualised turnover for full time employees in July was 12.2%. Turnover was 16.37% overall (including casuals and part-time positions). Target level is 10%.

3. Staff turnover (including casuals) Vacancy management and workforce planning

0%

10%

20%

30%

Jul


nFeb Mar Apr May Ju

n

% Turnover Full Time staff % Turnover Overall inc Casuals Target < 10%

Prospective Actions Joint consultative committees have been established to provide a mechanism for workforce communication and issues resolution

18


Performance Indicators (Ratings: = Satisfactory, ? = Marginal, X = Unsatisfactory, - = no data) Performance Rating:

Variance Report There have been 19 Industrial disputes/ grievances open in July.

4. Workplace dispute and grievance levels

-202468

10

Jul


nFeb Mar Apr May Ju

n

Water & Waste Corporate Services Infrastructure Services

Comm & Cultral Services Planning & Development

Prospective Actions HR to continue in providing service, to assist departments in minimising disputes / grievances.

ACTIVITY: WORKPLACE HEALTH & SAFETY


Performance Rating:

Variance Report The Rectifications Completed is Councils proactive KPI for Workplace Health and Safety CRC is currently at 73.02% completion. CRC’s target for rectifications completed is 85% this allows for complex actions to be carried over.

1a. Workplace Health & Safety Reporting Rectifications

completed(Council)

0

20

40

60

80

100

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-1

1Mar-

11Apr-

11

May-11

Jun-11

LTIDR Target

Prospective Actions Complete identified actions. If actions are completed then need to identify that action in Councils reporting system CHRIS 21

19



Performance Rating:

Variance Report CRC’s target for Days Lost for 09/10 is 1346. This is a 15% reduction on last FY of 1583 days lost due to injury. CRC has a total of 113.63 days lost for the year so far. This is 1.47 days above Councils BM of 112.16.

1b. Days Lost Due to Injury (DL) (Council)

0

200

400

600

800

1000

1200

1400

Jun-10

Jul-10

Aug-10

Sep-1

0Oct-1

0

Nov-10

Dec-10

Jan-11

Feb-1

1Mar-

11Ap

r-11

May-11

Jun-11

Days Lost Target

Prospective Actions Prevent workplace injuries by hazard identification, workplace audits, and training of staff.

Performance Rating:

Variance Report 3 reported LTI’s occurred this month. Council has a total of 3 LTI’s (Injuries that cause the employees to have more than 4 days away from the workplace). This is below the KPI of 3.25.

1c. Number of Lost Time Injuries (LTI’s) (Council)

0

10

20

30

40

50

Jun-10

Jul-10

Aug-10

Sep-1

0Oct-1

0

Nov-10

Dec-10

Jan-11

Feb-1

1Mar-

11Ap

r-11

May-11

Jun-11

LTI's Target

Prospective Actions Continue to monitor and audit the workplace for hazards and dangerous practices. Complete rectifications from reported hazards and investigations

20


Performance Rating:

Variance Report Continuing to draft the new OHSMS

2. WH&S Compliance External

Result Measure (description): Compliance with Safeplan system. Compliance with WH&S QLD Legislation, Regulations, COP and standards. Result Target: To achieve 80% or better internal/external audit. 100% compliance to all WH&S Qld notices issued. To achieve % rectifications benchmark set by ET and completed by the due date, set by ET. Source of Data: Audit results / Improvement, Prohibited, Directive notices. Reporting Frequency: Quarterly/Annually Performance: A Rectification Action Plan has been implemented for the External Audit and progress can by followed in #2462734. Element One - out for comment Element Two – 80% complete

Prospective Actions Review feedback from workforce on element one.

Performance Rating:

Variance Report Days lost are above Councils KPI. This is mainly due to long term injuries.

3. Rehabilitation System Compliance Manager

Result Measure (description): Meeting all legislative standards. Days lost for the month/year Direct/indirect costs due to injury Result Target: 100% compliance with legislative standards. Reduction in day lost to injury. Reduction in direct costs due to injury. Source of Data:. BO report – Workers compensation cost Reporting Frequency: Quarterly and annually. Performance: Council must continue to work hard towards a culture change of suitable duties as apposed to a culture of see a doctor to gain days off work for minor – medium injuries. Omega Health have accepted Councils Memorandum of Understanding to be it’s preferred medical practitioner Suitable duties to be as a KPI for branch managers

Prospective Actions Continue to foster acceptance of RRTW practices/suitable duties within the workforce.

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ACTIVITY: INFORMATION SERVICES

Mission: To enable Council to have the capacity and capability to manage the

collection and flow of data, information and knowledge; and to ensure that management of information systems, infrastructure and information management services support Council’s role in providing customer and community services, decision-making and business operations.

Officer Responsible: Manager Information Services Staffing Level (FTE) 29

On Target Operating Initiative Status Relevant

Linkage(s) Due Date

Complete (enter %) Yes

(enter )

No * (enter X)

1. Progress the IS Service Management ITIL process to a level of 3.0 on the CMMi scale

Corporate Plan 6.2

Ongoing 11%

2. Investigate, evaluate and prioritise emerging technologies and strategic direction to reduce asset management/replacement costs and increase IT infrastructure efficiencies including a revision of the 5 year IS Strategic Plan.

Corporate Plan 6.3, 6.5, 6.6, 6.7

Dec 2011 6%

* Variance Report for Initiatives not on target: * Prospective Actions for Initiatives not on target:


Performance Rating:

Variance Report

1. Responsiveness - Service Requests - Percentage completed within timeframes

75%

85%

95%

Jul

Aug Sep OctNov Dec

Jan

Feb Mar AprMay Ju

n

SR's finalised Target 85%

Prospective Actions

22



Performance Rating:

Variance Report

2. Responsiveness - Incidents - Percentage completed within timeframes

75%

85%

95%

Jul

AugSep

tOct

Nov DecJa

nFeb Mar Apr

May Jun

% Critical Calls Finalised % High Calls Finalised% Medium Calls Finalised % Low Calls FinalisedTarget 85%

Prospective Actions .

Performance Rating:

Variance Report

3. System Availability (core data / voice networks & corporate applications)

97

97.5

98

98.5

99

99.5

100

Jul


nFeb Mar Apr

May Jun

Per

cent

age

Availability Target 98.5%

Prospective Actions

Performance Rating:

Variance Report

4. Satisfaction - Survey of Outcome

70%

80%

90%

100%

Satisif

actio

n

Timeli

ness

Quality

Survey Result Target

Prospective Actions

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